chapter 06
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Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Gathering Performance Information:Gathering Performance Information:OverviewOverview
• 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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Major Components of Appraisal FormsMajor Components of Appraisal Forms (1)(1)
• Basic Employee Information
• Accountabilities, Objectives, and Standards
• Competencies and Indicators
• Major Achievements and Contributions
• Stakeholder Input
• Employee Comments
• Signatures
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Major Components of Appraisal Forms (2) Major Components of Appraisal Forms (2) (could (could
be included in a separate form)be included in a separate form)
• Developmental Achievements• Developmental
– Needs – Plans– Goals
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Desirable Features for All Appraisal FormsDesirable Features for All Appraisal Forms
• Simplicity• Relevancy• Descriptiveness• Adaptability
• Comprehensiveness• Definitional Clarity• Communication• Time Orientation
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Determining Overall RatingDetermining Overall Rating
• Judgmental strategy
• Mechanical strategy
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Appraisal periodAppraisal period
Number of Meetings• Annual • Semi-annual • Quarterly
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
When Review Is CompletedWhen 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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
6 Types of Formal6 Types of Formal Meetings Meetings (can be combined)(can be combined)
• System Inauguration• Self-Appraisal• Classical Performance Review• Merit/Salary Review• Development Plan• Objective Setting
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Who Should Provide Performance Who Should Provide Performance Information?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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Who Should Provide Performance Information?Who Should Provide Performance Information?
Direct knowledge of employee performance• Supervisors• Peers• Subordinates• Self• Customers
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
SupervisorsSupervisors
• 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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
PeersPeers
• Advantages– Assess teamwork
• Disadvantages– Possible friendship bias– May be less discriminating
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
SubordinatesSubordinates
• 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)
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
SelfSelf
• 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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Customers (external and internal)Customers (external and internal)
• Advantages– Employees become more focused on meeting
customer expectations• Disadvantages
– Time– Money
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Disagreement Across SourcesDisagreement Across Sources
• Expect disagreement• Ensure employee receives feedback by
source• Assign differential weights to scores by
source, depending on importance
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Types of Rating ErrorsTypes of Rating Errors
• Intentional errors– Rating inflation– Rating deflation
• Unintentional errors– Due to complexity of task
Herman Aguinis, University of Colorado at Denver
Expected Positive and Negative Consequences of
Rating Accuracy
Probability of Experiencing Positive & Negative
Consequences
Expected Positive and Negative Consequences of
Rating Distortion
Probability of Experiencing Positive & Negative
Consequences
Motivation to Provide Accurate Ratings
Motivation to Distort Ratings
Rating Behavior
A Model of A Model of RaterRater Motivation Motivation
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Motivations for Rating InflationMotivations for Rating Inflation
• 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
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Motivations for Rating DeflationMotivations for Rating Deflation
• Shock employees• Teach a lesson• Send a message to employee • Build a written record of poor performance
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Prevent Rating Distortion through Prevent Rating Distortion through
Rater Training ProgramsRater Training Programs
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Rater Training Programs should cover:Rater Training Programs should cover:
• Information• Motivation• Identifying, observing, recording and
evaluating performance• How to interact with employees when they
receive performance information
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Information - how the system worksInformation - how the system works
• Reasons for implementing the performance management system
• Information on the appraisal form and system mechanics
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Motivation – What’s in it for me?Motivation – What’s in it for me?
• Benefits of providing accurate ratings• Tools for providing accurate ratings
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
Identifying, observing, recording, and evaluating Identifying, observing, recording, and evaluating performanceperformance
• How to identify and rank job activities• How to observe, record, measure
performance• How to minimize rating errors
Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006
How to interact with employees How to interact with employees when they receive performance informationwhen they receive performance information
• How to conduct an appraisal interview• How to train, counsel, and coach
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