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