Compensation Ch. 11

The more popular rating (not ranking) formats have two common elements:

Require raters to evaluate on some absolute standard. Each standard is measured on a scale

Emphasis is on regular, constructive, detailed feedback in _________, not as a number or rating

words

Accuracy improves then raters must justify scores....

in writing

With MBO, each level has objectives which support organizational ____________.

goals Performance rating depends on how well objectives were met

A merit increase _________ ties pay not only to performance but also to position in the pay range

grid

Equal employment opportunity (EEO) and affirmative action influenced HR decision making for more than ________ years.

40

____________________ are used to anchor the continuum (main difference in rating scales)

Descriptors

Identify a question asked as part of the personnel research criterion to evaluate performance appraisal formats in an organization.

Does an instrument used lend itself well to validating employment tests?

Generally, the search for the perfect performance appraisal format to eliminate rating errors and improve accuracy has been successful.

FALSE

Top performers usually give the most subjective evaluations of peers during a performance appraisal process.

FALSE they give the most objective evaluations of peers

Customer as Rater:

May be surveyed, or rated by the customer service process

Subordinate (Direct Reports) as Rater:

More reliable if anonymous

Supervisor as Rater:

More than 80% of input but prone to halo and leniency errors

Identify a supervisor in a firm who makes errors in the actual evaluation of ratees as part of the performance appraisal process. Lisa, who keeps a diary and records information about employee performance as it occurs

Nathan, who weighs negative features more heavily than positive features

The ______________-____________ formula tells how interrater reliability changes as we add more raters

Spearman-Brown

When ________________ are anchors, behaviorally anchored rating scales (BARS) are the most common format

behaviors

Paired-comparison ranking:

compares each individual to all others

Raters should maintain a _________ of employee performance

diary

Just because something is quantifiable does not mean it is an ________________ measure of performance, it may be criterion-deficient

objective

Alternation ranking:

the rater starts with the best and worst employee

Tying pay to performance requires three things:

A company needs some definition of performance. A continuum describes levels from low to high on performance. The company decides on merit increases for different levels

Identify a true statement about the 360-degree feedback system used to assess employee performance.

Currently, most firms use the system only for evaluation of their top-level personnel and for employee development

According to the balanced scorecard approach, which of the following factors contribute to the bottom-line success of an organization? (Check all that apply.)

Customer satisfaction Employee commitment

The balanced scorecard approach depends on high scores for...

Customer satisfaction. Employee internal growth and commitment. Operational efficiency in internal processes. Financial measures

According to the balanced scorecard approach, which of the following indicate the bottom-line success of an organization? (Check all that apply.)

High scores on operational efficiency in internal processes High scores on financial measures

Which of the following is a question asked as part of the administrative criterion to evaluate performance appraisal formats in an organization?

How easily can evaluation results be used for managerial decisions concerning wage increases, promotions, terminations, and transfers?

What are the first steps to communicating and building a more effective appraisal process?

Identifying and understanding errors

Tasks that are highly uncertain:

Judgment-based evaluation procedures, such as standard rating scales

For less routine tasks, an ___________ strategy may be appropriate

MBO

Tasks that are less routine:

MBO

Performance Appraisal

Organization gets information on how well an employee is doing his or her job

Which of the following ratings is done by someone who has the most complete knowledge about a ratee's performance as part of the performance appraisal process?

Self-rating

3 ranking formats:

Straight Alternation Paired-Comparison

Performance reviews are used for a wide variety of decisions:

Strategic Developmental Administrative

The courts stress six issues when setting up performance appraisals;

Systems should give specific written instruction on how to complete. There should be clear criteria for evaluating performance. Job descriptions provide rational for personnel decisions. Supervisors should provide feedback to affected employees. Reviews by higher-level supervisors is a plus. Fair appraisals depend on consistent treatment

Employees should be involved in every stage of the process

TRUE

What are the implications of using peers as raters in performance appraisals? (Check all that apply.)

They operate more closely with a ratee than others. They possess an undistorted perspective of typical performance

Peer as Rater:

Undistorted perspective but may have no appraisal experience, creating group tension or yields to leniency

The standard rating scale uses _______________ to anchor the continuum

adjectives

Descriptors can be...

adjectives, behaviors, or outcomes

Different formats require assumptions about task _______________________

accomplishment

When combined with practice and feedback, __________ of rating improves

accuracy

A basic tool, called a ________________ session, improves consistency and accuracy or validity by improving the rater's motivation to rate accurately

calibration

With rating formats, performance is described along a __________________ from good to bad

continuum

Across-the-board increases are connected to

cost of living changes

Allowing non-performance factors to affect performance scores as part of performance appraisals is referred to as

criterion contamination

EEO forced ___________________ and ensured decisions were tied to performance

documentation

Employee development potential:

feedback has a positive impact on job performance.

A good appraisal format scores well on ________ dimensions

five

According to Michael Keeley, the choice of a performance appraisal format is based on the _____.

kind of tasks being performed

Pay increase guidelines have _________ motivational impact

little

Employees who start out high in performance and then get worse are rated _________ than workers who remain consistently low

lower

When _______________ are the standard, management by objectives (MBO) is the most common format

outcomes

A pay increase guideline that ties pay to performance and position in a pay range is that _____.

pay increases at a reducing rate as employees move through a pay range

Behaviorally anchored rating scales (BARS) work when employees are evaluated against specific ___________________ expectations

performance

Validity:

performance- based decisions can be made with confidence

A type of evaluation format for performance appraisals that requires a rater to compare employees against each other to determine the relative ordering of a group on some performance measure is known as a(n)

ranking format

360-degree feedback is ________ in appraisals or pay decisions

rare -too cumbersome

Ranking formats:

rater compares employees, determining the relative ordering of the group on some performance measure

A type of evaluation format used in performance appraisals that requires raters to evaluate employees on some absolute standard rather than relative to other employees is known as a(n)

rating format

A task continuum ranges from...

routine to uncertain

Pay increases in organizations that are tied to a preset progression pattern based on seniority are known as

seniority increases

Straight ranking:

simplest form - straight up ranking everyone in order

Deming contended the work _________________ is the major determinant of performance

situation (culture, enviro, peer impact, mngt style)

For highly uncertain tasks, the _____________ rating scales may work

standard

Firms hope the BARS format makes evaluations less.....

subjective

The biggest employee complaint about the appraisal process is that they are too....

subjective

Half of employees are _____________ by their ratings

surprised

Managers can be grouped into one of three categories, based on the types of employee behaviors they focus on:

task performance counterproductive performance or BOTH

Format choice depends on the types of _________ performed

tasks

Data suggests implementing a balanced scorecard approach can have positive impacts on....

the bottom line and on rating accuracy

New performance appraisals focus on _______ and _________________ performance feedback

timely / frequent

Many managers don't consider yearly performance evaluations....

useful

Reliability is true _________________ divided by the sum of true variance plus an ________ variance

variance / error

With BARS, Raters calculate performance as a...

weighted average

Performance management:

Ensure employee activities are congruent with organizational goals

Appraisal Formats:

Ranking Rating

Self as Rater:

Ratings may be too lenient and unreliable

In an essay format of rating, supervisors answer...

open-ended questions

General increases are seen in

unionized firms

What are they?

Employee development potential Administrative ease Personnel research potential Cost Validity

Identify a true statement about a merit increase grid, which ties pay to both performance and position in a pay range.

Employees low in a pay range get higher merit increases for the same level of performance than employees who have advanced further in the range.

Similar to me Error:

Individuals who are similar to us in race, gender, background, interest, beliefs, and the like receive higher ratings than those who are not

Personnel research criterion:

Is it possible to monitor applicants predicted to perform well through performance evaluation?

Identify a true statement about choosing an appropriate performance appraisal format when a task is less routine.

It is appropriate and feasible to specify multiple strategies to accomplish a goal.

Performance Feedback:

Provide employees information on their performance

Leniency Error:

Rater gives high ratings to all employees regardless of their performance

These new approaches are defined by three attributes:

Ratingless Reviews Ongoing feedback Crowdsourced feedback

Strictness Error:

Rater gives low ratings to all employees regardless of their performance

The basic steps in a calibration session are:

Managers prepare preliminary performance appraisals and ratings Mangers meet and post names and ratings for review. Every employee is reviewed and discussed. Participants adjust ratings to assure accuracy and consistency. Final performance appraisals are prepared

more specific factors focus on:

Planning and organizing. Training and coaching. Developing subordinates. Technical proficiency

Halo error:

Rater gives employee high ratings on all aspects of performance because of an overall positive impression of the employee

Performance appraisal criteria:

Congruence (strategic) Validity Reliability Acceptability

Employee development criterion:

Does the procedure communicate the organization's goals and objectives?

Identify a true statement about Michael Keeley's views on performance appraisal formats.

He suggests that appraisal formats need assumptions about the extent to which ideal behavior for task accomplishment can be specified

Horns error:

Rater gives employee low ratings on all aspects of performance because of an overall negative impression of the employee

central tendency Error:

Rater gives middle or average ratings to all employees despite their performance

Contrast Error:

Ratings are influenced by comparison between individuals instead of an objective standard (e.g., employee receives lower than deserved ratings because he or she is compared to outstanding peers)

The dominant view about the validity of supervisory ratings is that supervisors tend to give accurate appraisals of their subordinates

TRUE

Multiple raters maximize....

reliability