Performance Appraisal Exercise
Michael Horvath, Cleveland State University
Brief description: This exercise is designed to get undergraduates to experience a brief performance appraisal process. I broke the class into three ‘conditions.’ Each group was to manufacture paper ‘roses’ using napkins (any novel task will do). Groups differed on two dimensions: 1) the type of rating system employed, and 2) dependences among the team members (i.e., in interdependent groups each member received specialized training on how to make only one part of the paper rose, and had to depend on the others to complete the product).
The ‘supervisor’ of each group had the ability to allocate extra credit points on the basis of individual performance. (There were many opportunities for this kind of credit, so I wasn’t too concerned with student concerns about another student having control over such a small part of their grade, but I felt that the fact that part of their grade was dependent upon this rating process got the students more involved).
After the exercise was completed and managers made their ratings, I opened the class up for discussion about their reactions. I had them tie what we’d done back into the class concepts about performance appraisal, but we also discussed their reactions (i.e., what problems did managers have in each of the conditions? How fair did the employees think each process was?).
Suggested variant on this exercise: Each manager was supposed to have received 4 points.
However, let the students know that they may be able to affect the manager’s outcome at some point (or make that part be a surprise). After the manager has assigned points, give each team member the opportunity (e.g., by secret ballot) to reduce that manager’s point total by 2 points
(i.e., give them the opportunity to engage in an Organizational Retaliatory Behavior). Discuss how the nature of the performance appraisal system might influence students’ willingness to retaliate (i.e., is it less likely if that manager had been constrained by a forced-choice system vs. being allowed to make those decisions?).

GROUP A
PSYCH 364 Performance Appraisal Exercise
INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as possible (Mike will teach you how to make them). Your team will work as part of an assembly line. One of you will work on the petals, one on the stem, and one on the leaf. When you finish each rose (your part), hand the rose to the next person in line. Based on your performance, your manager will be able to give you between 1 and 5 extra credit points. Keep in mind that this is an exercise – don’t get too mad at the manager!
INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on their performance (both quantity as well as quality). You have the option to send roses back if they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be responsible for rewarding your employees with extra credit points.
Your performance ratings should be based on the following distribution (write in the names here):
TOP PERFORMER (5 points) : ______________________________
MEDIUM PERFORMER (3 points) :___________________________
MEDIUM PERFORMER (3 points): ___________________________
LOW PERFORMER (1 point): ________________________________
After you have made your assignments, you should discuss your ratings with your subordinates so that they understand how the decisions were made.
As a manager, you will receive a ‘salary’ of 4 extra credit points.

GROUP B
PSYCH 364 Performance Appraisal Exercise
INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as possible (Mike will teach you how to make them). Your team will work as part of an assembly line. One of you will work on the petals, one on the stem, and one on the leaf. When you finish each rose (your part), hand the rose to the next person in line. Based on your performance, your manager will be able to give you between 1 and 5 extra credit points. Keep in mind that this is an exercise – don’t get too mad at the manager!
INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on their performance (both quantity as well as quality). You have the option to send roses back if they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be responsible for rewarding your employees with extra credit points.
You have 12 extra credit points to divide among your employees. Every employee should receive at least one point. No single employee should receive more than 5 points. In the space below, write down each employee’s name and their points here:
After you have made your assignments, you should discuss your ratings with your subordinates so that they understand how the decisions were made.
As a manager, you will receive a ‘salary’ of 4 extra credit points.

GROUP C
PSYCH 364 Performance Appraisal Exercise
INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as possible (Mike will teach you how to make them). Your team will work independently on each rose – that is, each employee will create entire roses from start to finish. Based on your performance, your manager will be able to give you between 1 and 5 extra credit points. Keep in mind that this is an exercise – don’t get too mad at the manager!
INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on their performance (both quantity as well as quality). You have the option to send roses back if they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be responsible for rewarding your employees with extra credit points.
Your performance ratings should be based on the following distribution (write in the names here):
TOP PERFORMER (5 points) : ______________________________
MEDIUM PERFORMER (3 points) :___________________________
MEDIUM PERFORMER (3 points): ___________________________
LOW PERFORMER (1 point): ________________________________
After you have made your assignments, you should discuss your ratings with your subordinates so that they understand how the decisions were made.
As a manager, you will receive a ‘salary’ of 4 extra credit points.