HRM 2501 Ch. 10
Appraisal Process Steps
1. Establish performance standards 2. Set measurable goals (manager & employee) 3. Measure actual performance 4. Compare actual performance with standards 5. Discuss the appraisal with the employee 6. If necessary, initiate corrective action
Leniency Error
Performance appraisal distortion caused by evaluating employees against one's own value system
360-Degree Appraisals
Performance evaluations in which supervisors, peers, employees, customers, and the like evaluate the individual
Individual Ranking
Ranking employees' performance from highest to lowest
Paired Comparison
Ranking individuals' performance by counting the times any one individual is the preferred member when compared with all other employees
Relative Standards in Performance Management
Refer to a method in performance management systems whereby an employee's performance is compared with that of other employees.
Absolute Standards in Performance Management
Refer to a method in performance management systems whereby employees are measured against company-set performance requirements.
Criteria for Successful Performance Appraisal Meeting
Require manager preparation, a supportive environment, clear purpose, employee involvement, focus on work behaviors, specific work examples, positive and negative feedback, employee understanding, and an employee development plan
Management by Objectives (MBO)
A performance appraisal method that includes mutual objective setting and evaluation based on the attainment of the specific objectives
Graphic Rating Scale
A performance appraisal method that lists traits and a range of performance for each
Behaviorally Anchored Rating Scales (BAPS)
A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits
Peer Evaluation
A performance assessment in which coworkers provide input into the employee's performance
Checklist Appraisal
A performance evaluation in which a rater checks off applicable employee attributes
Forced-choice Appraisal
A performance evaluation in which the rater must chose between two specific statements about an employee's work behavior
Critical Incident Appraisal
A performance evaluation that focuses on key behaviors that differentiate between doing a job effectively or ineffectively
Documentation
A record of performance appraisal process outcomes
Attribution Theory
A theory of performance evaluation based on the perception of who is in control of an employee's performance
Ways to make Performance Appraisals More Effective
Behavior-based measures, combined absolute and relative ratings, ongoing feedback, multiple raters, selective rating, trained appraisers, peer assessment, and rewards to accurate appraisers
Upward Appraisal
Employees provide frank and constructive feedback to their supervisors
Absolute Standard Evaluation Methods
Essay Appraisal; Critical Incident Approach; Checklist Rating; Graphic Rating Scale; Forced-Choice Inventory; Behaviorally Anchored Rating Scale (BARS)
Relative Standards
Evaluating an employee's performance by comparing the employee with other employees
Simulation Error
Evaluating employees based on the way an evaluator perceives himself or herself
360-Degree Appraisal
Evaluations are made by the employee, supervisors, co-workers, team members, customers, suppliers, and the like. In doing so, a complete picture of an employee's performance can be assessed
3 Purposes of Performance Management Systems
Feedback, development, and documentation. Designed to support employees, appraisers, and organizations
Relative Standards Evaluation Methods
Group-order Ranking; Individual Ranking; Paired Comparisons
Why Performance Appraisals might be Distorted
Leniency error, halo error, similarity error, central tendency, low appraiser motivation, inflationary pressures, and inappropriate substitutes for performance
How is MBO an Appraisal Method
MBO is an appraisal method by establishing a set of objectives for an employee to achieve and reviewing performance based on how well those objectives have been met
How Performance Appraisals Differ in Global Environment
May differ in who performs the evaluation and the format used. Cultural differences may dictate that changes in the U.S. performance management system are needed
Absolute Standards
Measuring an employee's performance against established standards
Central Tendency
The tendency of a rater to give average ratings
Halo Error
The tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits
