Chapter 6Chapter 6Chapter 6Chapter 6

Gathering Performance Gathering Performance InformationInformation

OverviewOverview1.1. Appraisal FormsAppraisal Forms

ff2.2. Characteristics of Appraisal FormsCharacteristics of Appraisal Forms33 Determining Overall RatingDetermining Overall Rating3.3. Determining Overall RatingDetermining Overall Rating4.4. Appraisal Period and Number of Appraisal Period and Number of

M ti M ti Meetings Meetings 5.5. Who Who Should Provide Performance Should Provide Performance

Information?Information?A Model of Rater MotivationA Model of Rater Motivation6.6. A Model of Rater MotivationA Model of Rater Motivation

7.7. Preventing Rating Distortion through Preventing Rating Distortion through g g gg g gRater Training ProgramsRater Training Programs 22

Appraisal Forms:Appraisal Forms:9 M j C t9 M j C t9 Major Components9 Major Components

Basic Employee InformationBasic Employee Information1.1. Basic Employee InformationBasic Employee Information

22 SignaturesSignatures2.2. SignaturesSignatures

33 Accountabilities Objectives Accountabilities Objectives 3.3. Accountabilities, Objectives, Accountabilities, Objectives, and Standardsand Standards

4.4. Competencies and IndicatorsCompetencies and Indicators

5.5. Major Achievements and Major Achievements and C bC bContributionsContributions

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Appraisal Forms: Appraisal Forms: 9 Major Components (continued)9 Major Components (continued)9 Major Components (continued)9 Major Components (continued)

(These could be included in a separate form)(These could be included in a separate form)

6.6. Stakeholder InputStakeholder Input

7.7. Employee CommentsEmployee Comments

D l t l A hi tD l t l A hi t8.8. Developmental AchievementsDevelopmental Achievements

99 Developmental Developmental 9.9. Developmental Developmental

•• Needs Needs •• PlansPlans•• GoalsGoals•• GoalsGoals

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Appraisal Forms:Appraisal Forms:88 Desirable FeaturesDesirable Features8 8 Desirable FeaturesDesirable Features

1.1. SimplicitySimplicity1.1. SimplicitySimplicity2.2. RelevancyRelevancy3.3. DescriptivenessDescriptiveness

Ad t bilitAd t bilit4.4. AdaptabilityAdaptability

55 ComprehensivenessComprehensiveness5.5. ComprehensivenessComprehensiveness6.6. Definitional ClarityDefinitional Clarity7.7. CommunicationCommunication

558.8. Time OrientationTime Orientation

Determining Overall RatingDetermining Overall Ratingg gg g

J d l J d l Judgmental strategyJudgmental strategy

Mechanical strategyMechanical strategygygy

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Appraisal periodAppraisal periodpp ppp p

N b f M iN b f M iNumber of MeetingsNumber of Meetings••Annual Annual Annual Annual ••SemiSemi--annual annual Q t lQ t l••QuarterlyQuarterly

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When Review Is CompletedWhen Review Is Completedpp

ddAnniversaryAnniversary datedate•• Supervisor doesn’t have to fill out Supervisor doesn’t have to fill out pp

forms at same timeforms at same time•• Can’t tie rewards to fiscal yearCan’t tie rewards to fiscal yearyyFiscal yearFiscal year•• Rewards tied to fiscal yearRewards tied to fiscal year•• Rewards tied to fiscal yearRewards tied to fiscal year•• Goals tied to corporate goalsGoals tied to corporate goals

May be burden to supervisor May be burden to supervisor •• May be burden to supervisor, May be burden to supervisor, depending on implementationdepending on implementation

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6 Types of Formal6 Types of Formal Meetings Meetings (can be combined)(can be combined)

•• System InaugurationSystem Inauguration•• SelfSelf--AppraisalAppraisal•• Classical Performance ReviewClassical Performance Review•• Classical Performance ReviewClassical Performance Review•• Merit/Salary ReviewMerit/Salary Review•• Development PlanDevelopment Plan•• Objective SettingObjective SettingObject e Sett gObject e Sett g

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Who Should Provide Performance Who Should Provide Performance Information?Information?

Employees should be involved in selectingEmployees should be involved in selectingWhich sources evaluateWhich sources evaluateWhich sources evaluateWhich sources evaluateWhich performance dimensionsWhich performance dimensions

When employees are actively involvedWhen employees are actively involvedp y yp y yHigher acceptance of resultsHigher acceptance of resultsPerception that system is fairPerception that system is fairPerception that system is fairPerception that system is fair

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Who Should Provide Performance Who Should Provide Performance Information? (cont.)Information? (cont.)

Direct knowledge of employee Direct knowledge of employee ffperformanceperformance

SupervisorsSupervisorsSupervisorsSupervisorsPeersPeersSubordinatesSubordinatesSelfSelfSelfSelfCustomersCustomers

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SupervisorsSupervisorspp

AdvantagesAdvantagesAdvantagesAdvantages•• Best position to evaluate performance vs. Best position to evaluate performance vs.

strategic goalsstrategic goalsstrategic goalsstrategic goals•• Make decisions about rewardsMake decisions about rewards•• Able to differentiate among performance Able to differentiate among performance Able to differentiate among performance Able to differentiate among performance

dimensionsdimensions

DisadvantagesDisadvantages•• Supervisor may not be able to directly Supervisor may not be able to directly •• Supervisor may not be able to directly Supervisor may not be able to directly

observe performanceobserve performance•• Evaluations may be biasedEvaluations may be biasedEvaluations may be biasedEvaluations may be biased

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PeersPeers

AdvantagesAdvantages•• Assess Assess teamworkteamwork

DisadvantagesDisadvantages•• Possible friendship biasPossible friendship bias•• May be less discriminatingMay be less discriminatingy gy g•• Context effectsContext effects

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SubordinatesSubordinates

AdvantagesAdvantagesA t h d f A t h d f •• Accurate when used for Accurate when used for developmental purposesdevelopmental purposes

•• Good position to assess some Good position to assess some competenciescompetencies

DisadvantagesDisadvantagesDisadvantagesDisadvantages•• Inflated when used for administrative Inflated when used for administrative

purposespurposes•• May fear retaliation (confidentiality is May fear retaliation (confidentiality is

key)key)1414

SelfSelf

AdvantagesAdvantages•• Increased acceptance of decisionsIncreased acceptance of decisions•• Decreased defensiveness during Decreased defensiveness during •• Decreased defensiveness during Decreased defensiveness during

appraisal interviewappraisal interview•• Good position to track activities during Good position to track activities during •• Good position to track activities during Good position to track activities during

review review periodperiod

DisadvantagesDisadvantagesgg•• May be more lenient and biasedMay be more lenient and biased

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Customers (external and internal)Customers (external and internal)( )( )

AdvantagesAdvantages•• Employees become more focused Employees become more focused

on meeting customer on meeting customer expectationsexpectationsgg pp

DisadvantagesDisadvantagesDisadvantagesDisadvantages•• TimeTime•• MoneyMoney

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Disagreement Across SourcesDisagreement Across SourcesDisagreement Across SourcesDisagreement Across Sources

Expect disagreementExpect disagreementEnsure employee receives feedback Ensure employee receives feedback Ensure employee receives feedback Ensure employee receives feedback by sourceby sourceAssign differential weights to scores Assign differential weights to scores Assign differential weights to scores Assign differential weights to scores by source, depending on by source, depending on importanceimportanceimportanceimportanceEnsure employees take active role Ensure employees take active role in selecting which sources will rate in selecting which sources will rate which dimensionswhich dimensions

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Types of Rating ErrorsTypes of Rating Errors

Intentional errorsIntentional errors•• Rating inflationRating inflation•• Rating inflationRating inflation•• Rating Rating deflationdeflation

Unintentional errorsUnintentional errors•• Due to complexity of taskDue to complexity of task

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A Model of Rater MotivationA Model of Rater MotivationA Model of Rater MotivationA Model of Rater Motivation

Expected Positive and Negative Consequences of

Rating Accuracyg y

Probability of Experiencing Positive and Negative

Motivation to Provide Accurate Ratings

gConsequences

Expected Positive and

Rating Behavior

Negative Consequences of Rating Distortion

Probabilit of E periencing

Motivation to Distort Ratings

Probability of Experiencing Positive and Negative

Consequences

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Motivations for Rating InflationMotivations for Rating Inflation

•• Maximize merit raise/rewardsMaximize merit raise/rewards•• Encourage employeesEncourage employees

Avoid creating written recordAvoid creating written record•• Avoid creating written recordAvoid creating written record•• Avoid confrontation with Avoid confrontation with

employeesemployeesPromote undesired employees out Promote undesired employees out •• Promote undesired employees out Promote undesired employees out of unitof unit

•• Make manager look good to Make manager look good to his/her supervisorhis/her supervisor/ p/ p

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Motivations for Rating DeflationMotivations for Rating Deflationgg

•• Shock employeesShock employeesp yp y•• Teach a lessonTeach a lesson

S d t l S d t l •• Send a message to employee Send a message to employee •• Build a written record of poor Build a written record of poor u d a o d o poou d a o d o poo

performanceperformance

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Preventing Rating Distortion Preventing Rating Distortion th hth hthrough through

Rater Training ProgramsRater Training ProgramsRater Training ProgramsRater Training Programs

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Rater Training Programs should cover:Rater Training Programs should cover:Rater Training Programs should cover:Rater Training Programs should cover:

InformationInformationMotivationMotivationMotivationMotivationIdentifying, observing, recording Identifying, observing, recording

d l ti fd l ti fand evaluating performanceand evaluating performanceHow to interact with employees How to interact with employees How to interact with employees How to interact with employees when they receive performance when they receive performance informationinformationinformationinformation

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Information Information -- how the system workshow the system worksInformation Information how the system workshow the system works

Reasons for implementing the Reasons for implementing the f t f t performance management performance management

systemsystemInformation on the appraisal Information on the appraisal form and system mechanicsform and system mechanicsform and system mechanicsform and system mechanics

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Motivation Motivation –– What’s in it for me?What’s in it for me?Motivation Motivation What s in it for me?What s in it for me?

••Benefits of providing accurate Benefits of providing accurate ratingsratingsratingsratings

••Tools for providing accurate Tools for providing accurate titiratingsratings

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Identifying, observing, recording, and Identifying, observing, recording, and evaluating performanceevaluating performance

How to identify and rank job How to identify and rank job activitiesactivitiesactivitiesactivitiesHow to observe, record, measure How to observe, record, measure

ffperformanceperformanceHow to minimize rating errorsHow to minimize rating errorsgg

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How to interact with employees How to interact with employees How to interact with employees How to interact with employees when they receive performance informationwhen they receive performance information

How to conduct an appraisal How to conduct an appraisal How to conduct an appraisal How to conduct an appraisal interviewinterviewH t t i l d hH t t i l d hHow to train, counsel, and coachHow to train, counsel, and coach

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Quick ReviewQuick Review

Appraisal FormsAppraisal FormsCharacteristics of Appraisal Characteristics of Appraisal Characteristics of Appraisal Characteristics of Appraisal FormsFormsD t i i O ll R tiD t i i O ll R tiDetermining Overall RatingDetermining Overall RatingAppraisal Period and Number of Appraisal Period and Number of ppppMeetingsMeetingsWho Should Provide Performance Who Should Provide Performance Who Should Provide Performance Who Should Provide Performance Information?Information?A Model of Rater MotivationA Model of Rater MotivationA Model of Rater MotivationA Model of Rater MotivationPreventing Rating Distortion Preventing Rating Distortion h h R T i i Ph h R T i i Pthrough Rater Training Programsthrough Rater Training Programs

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