Gathering Performance Information:
Overview
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Appraisal Forms
Characteristics of Appraisal Forms
Determining Overall Rating
Appraisal Period and Number of Meetings
Who Should Provide Performance Information?
A Model of Rater Motivation
Preventing Rating Distortion through Rater Training
Programs
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Major Components of Appraisal Forms (1)
• Basic Employee Information
• Accountabilities, Objectives, and Standards
• Competencies and Indicators
• Major Achievements and Contributions
• Stakeholder Input
• Employee Comments
• Signatures
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Major Components of Appraisal Forms (2)
(could be included in a separate form)
• Developmental Achievements
• Developmental
– Needs
– Plans
– Goals
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Desirable Features for All Appraisal Forms
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Simplicity
Relevancy
Descriptiveness
Adaptability
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Comprehensiveness
Definitional Clarity
Communication
Time Orientation
Herman Aguinis, University of Colorado at Denver
Determining Overall Rating
• Judgmental strategy
• Mechanical strategy
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Appraisal period
Number of Meetings
• Annual
• Semi-annual
• Quarterly
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
When Review Is Completed
• Anniversary date
– Supervisor doesn’t have to fill out forms at same time
– Can’t tie rewards to fiscal year
• Fiscal year
– Rewards tied to fiscal year
– Goals tied to corporate goals
– May be burden to supervisor, depending on
implementation
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
6 Types of Formal Meetings
(can be combined)
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System Inauguration
Self-Appraisal
Classical Performance Review
Merit/Salary Review
Development Plan
Objective Setting
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Who Should Provide Performance
Information?
Employees should be involved in selecting
• Which sources evaluate
• Which performance dimensions
When employees are actively involved
• Higher acceptance of results
• Perception that system is fair
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Who Should Provide Performance Information?
Direct knowledge of employee performance
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Supervisors
Peers
Subordinates
Self
Customers
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Supervisors
• Advantages
– Best position to evaluate performance vs. strategic
goals
– Make decisions about rewards
• Disadvantages
– Supervisor may not be able to directly observe
performance
– Evaluations may be biased
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Peers
• Advantages
– Assess teamwork
• Disadvantages
– Possible friendship bias
– May be less discriminating
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Subordinates
• Advantages
– Accurate when used for developmental purposes
– Good position to assess some competencies
• Disadvantages
– Inflated when used for administrative purposes
– May fear retaliation (confidentiality is key)
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Self
• Advantages
– Increased acceptance of decisions
– Decreased defensiveness during appraisal interview
– Good position to track activities during review period
• Disadvantages
– May be more lenient and biased
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Customers (external and internal)
• Advantages
– Employees become more focused on meeting
customer expectations
• Disadvantages
– Time
– Money
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Disagreement Across Sources
• Expect disagreement
• Ensure employee receives feedback by
source
• Assign differential weights to scores by
source, depending on importance
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Types of Rating Errors
• Intentional errors
– Rating inflation
– Rating deflation
• Unintentional errors
– Due to complexity of task
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
A Model of Rater Motivation
Expected Positive and
Negative Consequences of
Rating Accuracy
Motivation to Provide
Accurate Ratings
Probability of Experiencing
Positive & Negative
Consequences
Expected Positive and
Negative Consequences of
Rating Distortion
Rating Behavior
Motivation to Distort Ratings
Probability of Experiencing
Positive & Negative
Consequences
Herman Aguinis, University of Colorado at Denver
Motivations for Rating Inflation
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Maximize merit raise/rewards
Encourage employees
Avoid creating written record
Avoid confrontation with employees
Promote undesired employees out of unit
Make manager look good to his/her supervisor
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Motivations for Rating Deflation
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Shock employees
Teach a lesson
Send a message to employee
Build a written record of poor performance
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Prevent Rating Distortion through
Rater Training Programs
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Rater Training Programs should cover:
• Information
• Motivation
• Identifying, observing, recording and
evaluating performance
• How to interact with employees when they
receive performance information
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Information - how the system works
• Reasons for implementing the performance
management system
• Information on the appraisal form and system
mechanics
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Motivation – What’s in it for me?
• Benefits of providing accurate ratings
• Tools for providing accurate ratings
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Identifying, observing, recording, and evaluating
performance
• How to identify and rank job activities
• How to observe, record, measure performance
• How to minimize rating errors
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
How to interact with employees
when they receive performance information
• How to conduct an appraisal interview
• How to train, counsel, and coach
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver