CHAPTER 7CHAPTER 7

PERFORMANCE PERFORMANCE APPRAISALSAPPRAISALS

PURPOSESPURPOSES

ENHANCE ORGANIZATIONAL ENHANCE ORGANIZATIONAL DECISIONS, EG. PAYRAISES, DECISIONS, EG. PAYRAISES, PROMOTIONSPROMOTIONS

ENHANCE THE QUALITY OF ENHANCE THE QUALITY OF INDIVIDUAL DECISIONS, EG. INDIVIDUAL DECISIONS, EG. CAREER CHOICES, FUTURE CAREER CHOICES, FUTURE DEVELOPMENTDEVELOPMENT

PURPOSESPURPOSES

PROVIDE RATIONAL, PROVIDE RATIONAL, LEGAL DEFENSIBLE LEGAL DEFENSIBLE BASIS FOR PERSONNEL BASIS FOR PERSONNEL DECISIONSDECISIONS

AFFECT EMPLOYEES’ AFFECT EMPLOYEES’ VIEWS AND VIEWS AND ATTACHMENT TO THE ATTACHMENT TO THE ORGANIZATIONORGANIZATION

Sources of Sources of Performance Appraisal Performance Appraisal InformationInformation Objective Objective

Production Production DataData

Personnel DataPersonnel Data Judgmental Judgmental

DataData

Performance Performance Appraisals Appraisals & the Law& the Law NegligenceNegligence-breach of duty by -breach of duty by

employeremployer DefamationDefamation-disclosure of info that -disclosure of info that

damages employee’s reputationdamages employee’s reputation MisrepresentationMisrepresentation-disclosure of -disclosure of

favorable info that is untrue favorable info that is untrue

Using the Results of Using the Results of Performance Performance AppraisalsAppraisals Personnel TrainingPersonnel Training Wage & Salary AdministrationWage & Salary Administration PlacementPlacement PromotionsPromotions DischargeDischarge Personnel ResearchPersonnel Research

Rater MotivationRater Motivation

Willingness vs. Willingness vs. Capacity to RateCapacity to Rate

““Appraisal Appraisal Politics”Politics”

Rater TrainingRater Training

Rating Error FocusRating Error Focus Frame-of-Reference TrainingFrame-of-Reference Training

ERRORS IN JUDGMENTERRORS IN JUDGMENT HALO ERRORS HALO ERRORS

EVALUATIONS BASED ON EVALUATIONS BASED ON RATER’S GENERAL FEELINGSRATER’S GENERAL FEELINGS

DOES NOT DISTINGUISH DOES NOT DISTINGUISH AMONG MANY DIMENSIONS OF AMONG MANY DIMENSIONS OF PERFORMANCEPERFORMANCE

LENIENCY ERRORSLENIENCY ERRORS

NEGATIVE –GIVES HARSHER –GIVES HARSHER EVALUATION THAN DESERVED EVALUATION THAN DESERVED

POSITIVE—GIVES HIGHER RATINGS —GIVES HIGHER RATINGS THAN DESERVEDTHAN DESERVED

ERRORSERRORS

CENTRAL TENDENCY- RATER RATER UNWILLING TO GIVE EXTREME UNWILLING TO GIVE EXTREME RATINGS, USE ONLY THE RATINGS, USE ONLY THE MIDDLE PART OF THE SCALEMIDDLE PART OF THE SCALE

Types of AssessmentsTypes of Assessments

Self Assessments-most grade higherSelf Assessments-most grade higher Peer AssessmentsPeer Assessments

– Peer Nomination, Peer Ratings, & Peer Peer Nomination, Peer Ratings, & Peer RankingsRankings

360-Degree Feedback360-Degree Feedback– Multi-Source Feedback Multi-Source Feedback – Three DimensionsThree Dimensions– People, Change, StructurePeople, Change, Structure

RELIABILITYRELIABILITY

DETERMINED BY INTER-DETERMINED BY INTER-RATER AGREEMENTRATER AGREEMENT

MOST USE FOR FEEDBACK MOST USE FOR FEEDBACK ONLYONLY

Feedback of Appraisal Feedback of Appraisal Information to Information to EmployeesEmployees Performance Appraisal InterviewPerformance Appraisal Interview CredibilityCredibility PowerPower