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