• 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)

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

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)

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

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

Relative Methods
1) Ranking
1 st _____
2 nd_____
3 rd _____
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

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

1) Leniency (positive bias)
X
_____ _____ _____ _____ _____
Very Average Excellent
Poor
2) Severity (negative bias)
X
_____ _____ _____ _____ _____
Very Average Excellent
Poor
All lead to a restriction in the range of performance scores
3)Central Tendency (midpoint)
X
_____ _____ _____ _____ _____
Very Average Excellent
Poor

Responsibility
Commitment
Initiative
Sensitivity
Judgment
Communication
High ratings on other performance dimensions
Observation of specific behavior (s) (e.g., volunteers to work overtime)

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

1) Production Data (e.g., sales volume, units produced)
• When observation occurs (timing), and how data is collected
• Fairness and relevancy issue
• Potential limited variability
• Limitations regarding supervisory personnel
2) Personnel Data
• Absenteeism (excused versus unexcused)
• Tardiness
• Accidents (fault issue)

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

•
Process involves various employees (increases the likelihood of usage)
• Job specificity (different BARS need to be developed for each position)
• Not any better at reducing common rating scale errors (e.g., leniency, halo)
• Time consuming

1) Frequent observation of performance and feedback (both positive and negative)
2) Recordkeeping (ongoing if possible)
3) Encourage self-assessment of employees
4) Focus on behaviors (not traits)
5) Use specific behavioral criteria and standards
6) Set goals for employees (specific and challenging ones)
7) Focus on how to observe job behaviors and provide incentives to do so

1) Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.
2) Use objective and uncontaminated data whenever they are available.
3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals.
4) Use more than one independent evaluator of performance.
5) Use a formal, standardized system for personnel decisions.
6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made.
7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
8) Provide documented performance counseling prior to performance,-based termination decisions.

9) Communicate specific performance standards to employees.
10) Provide raters with written instructions on how to complete performance evaluations.
11) Evaluate employees on specific work dimensions, rather than on a single overall or global measure.
12) Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings.
13) Base the content of the appraisal form on a job analysis .
14) Provide employees with an opportunity to review their appraisals.
15) Educate personnel decision-makers regarding laws on discrimination.

Factors Affecting Employees Acceptance of Performance
Evaluations
• Asking for (and using) performance information/input from employees
• Ensure a 2-way interaction during the performance appraisal meeting importance of using employee selfevaluations
• Provide a way for employees to counter or challenge the appraisal
• Sufficient detail and knowledge of employee performance by supervisors
• Consistent use of performance standards across employees importance of rater training
• Basing performance evaluation on actual job behaviors
• Using performance ratings for personnel decisions (e.g., pay, promotion)