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PERFORMANCE APPRAISALS
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Goals of Performance Appraisal
To encourage high levels of worker motivationand performance by letting workers know:
± The extent to which they are contributing theappropriate level of inputs to their jobs and to theorganization.
± The extent to which they are focusing their inputs in theright direction on the right set of tasks.
To provide accurate information to be used in
managerial decision making. Examples: ± Distributing outcomes like pay and promotions.
± Assigning tasks to individuals.
± Redesigning jobs.
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Insert Figure 8.2 here
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Choosing the Mix of Appraisals Organizations should rely on both
formal and informal performance
appraisals.
The formal appraisal ensures that
performance gets assessed
periodically along the dimensions
important to an organization.
Informal appraisals help ensure
that formal appraisals do not yield
any ³surprises.´
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Choosing What Factors to Evaluate:
Traits When traits are used to assess performance,
personal characteristics that are deemed relevant
to job performance are evaluated. Disadvantages to this approach:
± Traits alone are often poor predictors of performance.
± Trait-based appraisal systems may be considered
discriminatory.
± The use of traits does little to motivate workers because
it focuses on characteristics that cannot be changed in
the short term, if at all.
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Choosing What Factors to Evaluate:
Behaviors
When behaviors are used to assess performance, the focus is on the actual behaviors or actions a worker displays onthe job.
The main disadvantage of this approach is
that sometimes the same level of performance can be achieved throughd iff er ent behaviors.
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Choosing What Factors to Evaluate:
Results When r e sults are used to assess performance,
the focus is not on what workers do on the
job but on the effects of their behaviors or their actual output.
The main disadvantages of this approach:
± Sometimes results are not under a worker¶scontrol.
± Workers may become so results oriented thatthey engage in unethical behaviors or fail toengage in OCBs.
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Choosing the
Method of Appraisal
Objective measuresObjective measures are basedon facts and are used
primarily when results are thefocus of performanceappraisal.
Subjective measures Subjective measures are
based on individuals¶ perceptions and can be usedfor appraisals based on traits, behaviors, and results.
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Types of Subjective Measures
G raphic rating scales assess the performance of a worker along one or more continua with clearly specified intervals.
± Disadvantage: Different raters may disagree about the meaningof the scale points.
Behaviorally anchored rating scales (BARS) attempt to
overcome the disadvantages of graphic scales by providingcareful definitions of what each scale point means.
± Disadvantage: Sometimes workers exhibit behaviorscorresponding to more than one point on the scale.
Behavioral observation scales overcome the problem withBARS by describing specific behaviors and asking raters toindicate the frequency with which a worker performs the
behaviors.
± Disadvantage: Even more time-consuming than BARS tocomplete.
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Who Appraises Performance In most organizational settings, supervisors are
responsible for performance appraisal because
± They are the most familiar with their subordinates¶ behavior.
± They are responsible for motivating subordinates to perform at acceptable levels.
Other possible sources for performance appraisal:
± Self-appraisal
± Peer appraisal ± Subordinate appraisal
± Customer/client appraisal
± 360-degree appraisal
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Biases in Performance Appraisal(Table 8.1)
Primacy
Eff ects
The initial pieces of information
that people have about a person
have an inordinately large effect on
how that person is perceived.
A subordinate who made a good first impression
on his supervisor receives a better performance
appraisal than he deserves.
Contrast
Eff ect
People¶s perceptions of a person are
influenced by their perception of
others in an organization.
A subordinate¶s average level of performance is
appraised more harshly than it should be by her
supervisor because all the subordinate¶s
coworkers are top performers.
StereotypesA type of schema built around some
distinguishing, often highly visible
characteristic such as race, gender,
or age.
A 35-year-old supervisor gives a 60-year-old
engineer a negative performance appraisal that
indicates that the engineer is slow and unwilling
to learn new techniques although this is not
true.
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Biases in Performance Appraisal(Table 8.1)
Halo
Eff ect
People¶s general impressions of a
person influence their perceptions
on specific dimensions.
A subordinate who has made a good overall
impression on a supervisor is appraised as
performing high-quality work and always
meeting deadlines although this is not true.
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Similar-to-me Eff ect
People perceive others who are
similar to themselves more
positively than they perceive those
who are dissimilar.
A supervisor gives a subordinate who is similar
to her a more positive performance appraisal
than the subordinate deserves.
Harshness,
Leniency, and
AverageTendency
When rating their subordinates¶
performance, some supervisors
tend to be overly harsh, some overly
lenient. Others tend to rate everyoneas about average.
An exceptionally high-performing secretary
receives a mediocre performance appraisal
because his supervisor is overly harsh in rating
everyone.
K nowledge
of Predictor
Bias
Perceptions of a person are
influenced by knowing the person¶s
standing on a predictor of
performance.
A programmer who scored highly on cognitive
and numerical ability tests receives a more
positive performance appraisal than she
deserves.
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Similar-to-
me Eff ect
People perceive others who are
similar to themselves more
positively than they perceive those
who are dissimilar.
Supervisors rate subordinates who are similar
to them more positively than they deserve.
Harshness,
Leniency, and
Average
Tendency
Some perceivers tend to be overly
harsh in their perceptions, some
overly lenient. Others view most
targets as being about average.
When rating subordinates¶ performances, some
supervisors give almost everyone a poor rating,
some give almost everyone a good rating, and
others rate almost everyone as being about
average.
K nowledge
of Predictor
Knowing how a target stands on a
predictor of performance influences
perceptions of the target.
A professor perceives a student more positively
than she deserves because the professor knows
the student had a high score on the SAT.
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Biases in Performance Appraisal(Table 8.1)
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Advice to Managers
Use frequent, informal performance appraisals and periodic formalones to help motivate your subordinates and to make decisions abouthow to distribute outcomes, whom to promote, and how to assigntasks. Informal appraisals can be used to motivate and give feedback on a day-to-day basis.
Performance appraisals should focus on the assessment of behaviors or results. Performance appraisals should not focus on the assessment of traits, for traits can be difficult to assess objectively and may not berelated to actual job behaviors or performance.
Be aware that one or more perception problems may influence your appraisal of a person¶s performance. Carefully and honestly examine
your evaluations to be sure that personal biases have not affected your judgments.
Develop and use performance measures that accurately assess behaviors or results. Only accurate performance appraisals result inhigh levels of motivation and performance and in good decisions.
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