Performance Management Arthur Barbier “The Best and the Rest: Revisiting the Norm of Normality of Individual Performance” ERNEST O’BOYLE JR. Department of Management College of Business and Economics Longwood University HERMAN AGUINIS Department of Management and Entrepreneurship Kelley School of Business Indiana University Key terms Normal Distribution: Type of distribution diagram described as “bell shaped curve” with symmetrical tails. Pareto Distribution: Vertical bar graph in which values are plotted in decreasing order of relative frequency from left to right. Individual Performance Evaluation (IPE): The job related evaluation of activities expected of a worker and how well those activities were executed. Purpose Perception of performance distribution: Normal VS Pareto Causes issues within workplace: Merit & Equality Create balance within organization Normal VS Pareto Results Distribution of individual performance Paretian Distribution - both studies Few individuals perform outstandingly “The rest” perform averagely Take Home Message Pareto Distribution should be widely preferred Mismanagement Detrimental effect on organization Must balance allocation of resources accordingly Semi-annual seminars Train and manage Top-performer & “the rest” Validity of selection procedures Do Candidate Reactions Relate to Job Performance or Affect Criterion-Related Validity? Jane Kreiss Julie M. Mc Carthy Van Iddekinge Filip Lievens Mei-Chuan Kung Evan F. Sinar Michael A. Campion Chad H. Key terms Criterion Validity: Criterion-related validity looks at the relationship between a test score and an outcome Dispositional Reactions: Similar to mood, is a personality trait or overall tendency to respond to situations in stable, predictable ways Situational Reactions: Response to surroundings or circumstances Procedural Justice: Concerns the fairness and the transparency of the processes by which decisions are made Purpose To develop a framework to help understand whether and when reactions can have both direct and indirect effects on job performance Direct and Indirect Effects of Test Reactions on Test Scores and Job Performance for Product Method The sample comprised of 2,959 employees Participants: Customer representatives & Product technicians 3 Selection Tests work sample test, situational judgment, personality Candidate reactions were assessed including anxiety Job performance ratings Results Test Taking Anxiety Different effect on job performance Customer service representatives - No significance Product technicians - Direct effect on job performance Take Home Message Certain types of test reactions can have both direct and indirect effects on job performance It depends... Reactions do not affect the criterion-related validity of selection procedures for the prediction of job performance So...this is not reliable at this time!