Performance Appraisal:
The Achilles Heel of Personnel?
Performance Appraisal Uses
•
Raises, Merit Pay, Bonuses
• Personnel Decisions (e.g., promotion, transfer, dismissal)
• Identification of Training Needs
• Research Purposes (e.g., assessing the worth of selection tests)
Basic Performance Appraisal Process
Conduct a Job Analysis (e.g., specify tasks and
KSAs)
Develop Performance Standards (e.g., define
what is superior, acceptable, and poor job
performance)
Develop or Choose a Performance Appraisal
System
Performance Appraisal Process
Observation
• Selective Attention
• Timing
• Structure
• Frequency
Storage
• Encoding of Information (e.g., categorization)
• Short vs. Long-term
• Memory
Evaluation
• Retrieve Information
• Combine information
• Decision-making (judgment)
Sources of Information
1)
Supervisors (most common)
• Role Conflict (e.g., judge and trainer/teacher)
• Motivation
• Time availability
• Friendship
2)
Co-Workers (Peers)
• Friendship bias
• Leniency
• High level of accuracy
• Best used as a source of feedback
Sources of Information (cont)
3)
Self
• Lots of knowledge
• Leniency effect
• Good preparation for performance appraisal meeting (conducive for
dialog)
4)
Subordinates
• Biases (e.g., # of subordinates, type of job, expected evaluation from
supervisor)
5)
Client
• Good source of feedback
• Negativity bias
Technology and Client/Customer Feedback
Other examples: Amazon, eBay, Trip Advisor, iTunes
Technology and Client/Customer Feedback (cont.)
Other Examples of Internet-Based Performance Information
Amazon
Other Examples of Internet-Based Performance Information
Expedia
Positive
That's the second time I stay in this hotel. The location is fantastic and the rooms, in general are
very comfortable. The view from the top, at the breakfast place is superb. Rating: 4.0
Negative
The standard rooms are very, very small, I had only one bag and no place to put it. you could
barely turnaround in the bathrooms. I love the decor/ art deco style but a little updating is
definitely do. Rating: 2.0
360 Degree Performance Appraisal
Supervisor
Co-Workers
Self
Subordinates
Customers
Subjective Appraisal Methods
(can be used with any type of job)
Relative Methods
1) Ranking
1st _____
2nd_____
3rd _____
2) Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.
• Both are difficult to use with a large number of subordinates
Subjective Appraisal Methods (cont.)
Absolute Methods
1) Narrative essay
• Unstructured (e.g., content, length)
• Affected by the writing ability of supervisors and
time availability
2) Graphic Rating Scale (most common)
_____ _____ _____ _____ _____
Very
Average
Excellent
Poor
~ Basic Rating Scale Errors ~
1) Leniency (positive bias)
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
2) Severity (negative bias)
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
3) Central Tendency (midpoint)
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
All lead to a
restriction in the
range of
performance
scores
Halo Error
Responsibility
Commitment
Initiative
Sensitivity
Judgment
Communication
High ratings on other
performance
dimensions
Observation of specific
behavior (s) (e.g., volunteers
to work overtime)
3. Problem Solving/Troubleshooting
Definition: Uses a logical, step-by step approach to identify and solve process problems
1
2
Well Below Expectations
Below
Expectations
 Fails to understand how equipment
and processes interrelate
 Does not complete checklists or
other required forms
 Is not able to identify root causes of
process deviations
 Does not consistently meet A2E
expectations
 Depends on others to solve
problems
3
Meets Expectations
4
5
Consistently Exceeds
Expectations
 Uses available resources (e.g.,
drawings, checklists, forms,
people—engineers, data
historian) to determine the root
cause of problems
 Selects and interprets data to
solve problems
 Investigates the nature of
equipment and process
malfunctions on an ongoing
basis
 Participates in A2E efforts
Outstanding
 Develops novel, safe and
effective solutions to current
problems
 Anticipates problems before they
occur and suggests solutions
 Takes ownership in problem
solving and sees it through to
completion
 Effectively leads problem solving
efforts (e.g., A2E, handles
complicated analysis requests on
one’s own)
Behavioral Examples of Rating:_____________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
2. Technical Ability
Definition: Uses mechanical, electrical and process equipment, tools, and principles properly
1
Well Below Expectations
2
3
4
5
Below
Expectations
Meets Expectations
Consistently Exceeds
Expectations
Outstanding
 Cannot describe the parts and
functions of various equipment
(e.g., valves, pumps, motors)
 Skips steps in the procedures
when performing job tasks
 Incorrectly uses tools and other
equipment
 Cannot read and interpret EFDs,
PFDs, blueprints and schematics
 Does not accurately perform basic
mathematical calculations or
conversions
 Interprets graphs, charts and
diagrams accurately
 Examines relevant information
(e.g., tank levels, set points)
before making process
adjustments
 Continuously learns and
improves one’s job knowledge
 Can explain to others how to do
their job
 Demonstrates knowledge of
different work areas (e.g., lab)
and how these interact with each
other
 Can train others on how to do
their job
 Independently resolves any
complex work-related request
 Suggests ways to improve system
functioning (e.g., increase yield,
prevent waste)
Behavioral Examples of Rating:_____________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
~ Subjective Appraisal Methods ~
Behavioral Methods (Use of critical incidents; examples of good and
poor job behavior collected by job experts over time)
Behavior Observation Scales (BOS)
• Rate the frequency in which critical incidents are performed by
employees
• Sum the ratings for a total “performance” score
1) Assists others in job duties.
_____ _____ _____ _____
Never
Usually
_____
Always
2) Cleans equipment after each use.
_____ _____ _____ _____ _____
Never
Usually
Always
Behaviorally Anchored Rating Scale (BARS) Process
1) Generate critical incidents (examples of good and poor job performance)
2) Place critical incidents Into performance dimensions (e.g., Responsibility,
Initiative, Safety)
3) Retranslation Step (do step # 2 again with a separate group of job experts.
Discard incidents where disagreement exists as to which dimension in which
they belong)
4) Calculate the mean and standard deviation of each critical incident (discard those
with a large standard deviation)
5) Place critical incidents on a vertical scale
~ BARS (Pros and Cons) ~
Process involves various employees (increases chances
of usage)
J Job specificity (different BARS need to be developed for
ach position)
Not any better at reducing common rating scale errors
(e.g., leniency, halo)
Time consuming
Performance Appraisal & Self-Fulfilling Prophecies
Supervisor Expectancy
(e.g., labels)
Leadership Behaviors
Subordinate
Self-Expectancy
Subordinate Performance
Subordinate
Motivation
Best Practices for Performance Appraisal Systems
•
Ensure that procedures for personnel decisions do not discriminate on the basis
of the race, sex, national origin, religion, or age of those affected by such
decisions.
•
Use objective and uncontaminated data whenever they are available.
•
Provide a formal system of review or appeal to resolve disagreements
regarding appraisals and encourage self-assessments.
•
Use more than one independent evaluator of performance.
•
Use a formal, standardized system for personnel decisions.
•
Ensure that evaluators have ample opportunity (and incentives) to observe
and rate performance. Record the observations and comments/ratings.
•
Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
•
Provide documented performance counseling prior to performance,-based
termination decisions.
Best Practices for Performance Appraisal Systems (cont)
•
Communicate specific performance standards to employees.
•
Provide raters with written instructions on how to complete performance
evaluations.
•
Evaluate employees on specific work dimensions, rather than on a single overall or
global measure.
•
Require documentation in terms of specific behaviors (e.g., critical incidents) for
extreme ratings.
•
Base the content of the appraisal form on a job analysis.
•
Provide employees with an opportunity to review their appraisals.
•
Set goals for employees.
•
Educate personnel decision-makers regarding laws on discrimination.
Satisfactory
Non minority
Performance
Criterion
Minority
Unsatisfactory
Reject
Accept
Predictor Score
Equal validity, unequal criterion means
- Equal test scores; Minorities performing less well on job (over predicting performance)
- Minorities hired same as non minorities but probability of success is small. Can
reinforce existing stereotypes.