Ch 7 - Performance Appraisal
Types of Motivation (5)
1) Career ambition 2) Employee conflict 3) Frustration 4) Fairness/satisfaction 5) Goals/expectations
How do you conduct effective performance reviews before the review? (3)
1) Consider both time and place in scheduling 2) Self-assessment 3) Prepare thoroughly
How to conduct an effective performance review during the review? (6)
1) Encourage participation and listen carefully 2) Use a "problem-solving" approach 3) Away from distractions 4) Set joint goals for improvement 5) Discuss strengths and weaknesses 6) Summarize the evaluation and goals, set the follow-up meeting
Types of Environment (8)
1) Equipment/materials 2) Job design 3) Economic conditions 4) Unions 5) Rules and policies 6) Management support 7) Laws and regulations
Common rater-related errors (6)
1) Error of central tendency 2) Leniency or strictness errors 3) Similar-to-me errors 4) Recency errors 5) Contrast error 6) Halo/horns error
Steps for ProMES (7)
1) Form the design team 2) Identify the objectives 3) Identify Indicators 4) Define Contingencies 5) Design the Feedback System 6) Provide Continuous feedback and respond 7) Monitor the system over time
Advantages of Behavior (3)
1) Good feedback 2) Accepted by employees/objective 3) OK for rewards/promotions
Advantages/Disadvantages of Traits (2)
1) Inexpensive 2) Easy To use
In order to implement a 360 Degree Appraisal System, you need (5)
1) Instrument Issues 2) Administration Issues 3) Feedback Report 4) Feedback Session 5) Follow up Activities
Advantages of Results (4)
1) Less subjective/Most Objective 2) Accepted by employees 3) OK for rewards/promotions 4) Encourage goal setting
Disadvantage of Traits (2)
1) Potential for error 2) Poor feedback
Types of Abilities (6)
1) Technical skills 2) Interpersonal skills 3) Problem-solving 4) Analytical skills 5) Communication skills 6) Physical limitations
Disadvantages of Behavior (2)
1) Time consuming 2) Costly
To establish performance standards, you must have (4)
1) strategic relevance 2) reliability 3) criterion deficiency 4) criterion contamination
Ratings collected from several raters, also known as
360-Degree Appraisal System.
360 Degree Feedback
Circle: Manager (top) Self (Center) Subordinates (Bottom) Peer (Left) Customers (Right)
Performance appraisal is only used to help make personnel decisions. T or F?
F
Objective measures of performance, which are represented by things that can be counted, are better subjective measures such as supervisor judgments. T or F?
False, depending on the circumstances, any measure can be better depending on the situation. Subjective can be very biased sometimes and objective isn't always appropriate.
There is always room for improvement and therefore nobody should get an "excellent" rating. True or False?
False.
Primary reason that companies have turned to forced distribution systems such as General electric "A,B,C"
Leniency
Disadvantage of Result (1)
May be impacted by circumstances beyond employee's control
Factors that influence performance
P= f (A,M,E) , Ability, Motivation, Enviroment
Measuring aggregated performance is
Productivity Measurement and Enhancement System (ProMES)
To set goals, you need to be ___
SMART.
What does "SMART" stand for?
Specific Measurable Attainable Realistic Target dates
Types (Methods) of Performance Appraisal (3)
Trait, Behavior, Results
Performance management should be viewed as
a "continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of organization".
criterion deficiency
aspects of actual performance that are not measured
contrast error
comparing employees against each other unintentionally
Why do we do performance appraisal?
developmental and administrative reasons
criterion contamination
elements that affect the appraisal measures that are not part of the actual performance
Many companies use
external customer data as an important source of information about employees and unit performance and for rewards system ("Mystery Shoppers" "Hired professional customers")
leniency or strictness errors
give everyone good ratings (leniency), give everyone more poor performance (strict), occurs when ratings for employees are generally at the high end of the ratings scale regardless of the actual performance of raters
error of central tendency
giving everyone average when there are poor and superior people, occurs when ratings for employees tend to be toward the center of the scale regardless of the actually performance of the raters (less common than leniency)
Developmental reasons pertains to
identifying strengths and weakness of individual employees.
similar-to-me errors
inflation of ratings, more than fair rating given to an applicant or employee due to his or her personal or professional similarity to the interviewer
In context of the strategic objectives of the organization, the supervisor
is probably the best source of information for making appraisals with this critical focus in mind.
reliability
measures that are consistent across raters and over time
360-Degree Appraisal System is thought to be
more accurate and have fewer biases, are perceived to be more fair, and less often the targets of lawsuit.
Performance appraisal is the
most heavily litigated personnel practice today.
strategic relevance
performance standards linked to organizational goals and competencies
Administrative reasons pertains to
personnel decisions.
management by objectives (MBO)
philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager
There should be a clear distinction between the measurement of the person and his or her
skills, knowledge, competencies, or potentiality, and that persons actual performance.
halo/horns error
stands out in leadership, could be promoted, this will influence the rest of the evaluation (Halo), does bad in leadership, influences poor evaluation for rest (horns) occurs when a rating or impression of one dimension of an employee influences the ratings on other dimensions for the same employee
actor-observer bias is
tendency of observers to underestimate the effects of external factors and for performance to overestimate the effects of external factors on less than perfect performance, people tend to make the exact opposite attributions for their own behavior
Multirater appraisal/360 is successful is because
that many of the rater types used have direct and unique knowledge of at least some aspects of the rate's job performance and can provide a reliable and valid performance information on some job activities.
Actor-Observer bias is one of
the major factors that cause perceptions of unfairness in appraisal decisions.
We define performance as
the record of outcomes produced on specified job functions or activities during a specified period.
recency errors
what happened in last two months has more on your ratings than longer ago on a yearly performance check