Performance Appraisal I

An HRM perspective

Goals

Developing a Performance Appraisal system.

Present diversity of processes.Putting together a viable process

that achieves strategic goals and/or fit

Expose to Diversity of forms.Then put it together at the end and compare different ways to do develop a PA system

Importance of PA

Related to CompensationRetentionTrainingUnions are an important constraintBuilding organizational competencies and

SHRMLegal issueCareer development (not in book but more

than training).

Purposes of Performance Appraisal

Motivation and productivityStrategic planning and changeLegal issues

Motivation

Pay for performance (Extrinsic)The power of feedback (Desire to do

a better job—intrinsic).Forshadow: Supervisors—do you

give straight and honest feedback or tend to gloss over minor problems or even significant problems.

Strategic issues.

First, any change effort needs performance monitoring.

Second detecting problems (organizational not individual).

Third, linking PA to organizational competencies.

Legal issues

If PA is used for compensation, termination, or promotion and done poorly (low validity and reliability) then open to discrimination.

See text p 460.

Developing a system

Need to consider purposes of PANeed to consider type of fit and

cultureNeed to consider what type of

performance is most critical in an organization. Different approaches.

Deciding what to measure

Traits/valuesBehaviorsObjective criteria.Types of fit.

How does one measure each of these?

Take a job. Meet in teams. Discuss.

Important Issues

What are the best indicators of job performance.

What behaviors are critical for organizational effectiveness, group performance, individual performance.

Tradeoffs in generalTypes of fit.

Cont.

Who is best able to evaluate job performance

Self, supervisor, electronic, peers subordinates, customers.

What is done on your job past jobWhat do you like?What do you not like?

How do you know what to use

Legal issuesStrategic and type of fit.Relevance of measurement

Benchmark

Making PAs more effective (and legally defensible.

Side track

Biases in PA.Largely Halo/horns effectLots of bias towards leniencyLots of bias towards recency.Prejudices (more than sex/race etc).

Normal supervisor PA

Saturated with biases and better not done that just the typical check list done by supervisor.

Not reliableNot valid

Efforts to increase effectiveness

All in the forms and in assessor training.

Problems with Leniency

Forced distributionComparative rankings.Not the best for all situations. But

how you address it.

Problems with accuracy

So not get supervisor directly involved.

One approach

Objective indicators of performance.These are not perfect either.

Mortgage Loans. Total loan in collectable stage. What could be some problems.

Second approach

Customer evaluations of treatment. Each customer given a chance to complete. Based on total of all.

Mostly suited for service industry and direct customer contact.

Generally good when appropriate.When could this be a problem?

Behavior approaches

Take job analysis. Take performance dimensions. Assess based on those performance dimensions.

While valid not necessarily reliable.

Behavior Check list

List desirable behaviors. Dichotomous. Usually done. Problems if scale. Open to bias.

Similar take same behavior. Order them in terms of doing a quality job.

Put into a scale. Hard to do. Takes a Team

BARS

Advantages and disadvantages of each

Type of fit, strategy, purpose of appraisal are all relevant to determine which to use.

Valid and Reliable PA

Outcomes better than processes

multiple raters better than single rater

Supervisory training

Content validity

PA systems based on systematic analysis of strategic competencies. PJ fit, PG, PO fit.

Show PA document during orientation

In teams

Hudson’s we have had a lot of information about the company and the type of work.

Customer driven company, values diversity.

Image of what it takes to do the job.Some teaming but not that much.

Team to work on PJ fit--outcome based

PJ fit behavior based-2P-O fit Trait/values Make

assumptionsP-G fit behavior

Report Back

OverheadDescribe aspects wish to assess and

why.Write an abbreviated PA document

assessing at least 3 aspects of performance.

Summary

Largely looked PA system--what’s important.

Strategic implicationsConsequently HR needs to have

input into the development forms to reinforce the culture of the organization

HR perspective on PA.

Read the article on 360 degree PA

Have a lot of information.Would 360 degree feedback be good in

your organization/last employerWhy or why not.If yes, what would be necessary to put it

into place.Next class Supervisor perspective.

Training.http://edis.ifas.ufl.edu/scripts/htmlgen.exe

?DOCUMENT_HE749 copy it as role model. Bring it to class.