week 11 performance appraisal

7/26/2019 Week 11 Performance Appraisal

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IssuesPerformance Appraisal

Seeks to identify the elements of individual contribution

Indicators must be well designed valid and reliable (ie not

permit discrimination)

Process must be fair or felt to be fair acceptable

Feedback given during a performance evaluation process identify

deficient aspects of the employees performance and the causes(e.g. a skill deficiency, a motivation problem) in a non-

threatening way, and with respect!

Acceptability> the crucial importance of felt fairness A poorly designed and/or administered PA/PM system will

negatively affect employee motivation

The fine line between performance management and bullying(assignment)

The line of sight between performance and criteria by which

performance is judged

Lecture Objectives

Identify the determinants and purposes of performance

management

Identify criteria for effective performance management

systems

Identify and discuss approaches to PM, and their advantages

and disadvantages

Identify information sources, and their pros and cons

Identify sources and types of rating errors

Lecture Structure

1. Performance Management

2. Performance Appraisal

3. Considerations in Delivering a Performance Appraisal


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1.Performance Management

Performance management: the process through whichmanagers ensure that employees activities and outputs

are congruent with the organisations goals

Stone- Unitarist take

Creation of a shared vision.

Establishment of performance objectives (Link to JA)

Identify, define and communicatewhat good performance

looks like to enable people to understand the level of their

expected and actual performance

Use of a formal review process to evaluate functional group

and individual progress towards goal achievement.

The linking of performance evaluation and employee

development and rewards to motivate and reinforce

desired behaviour.


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Importance of accurate measures

Validity

Construct validity measures should be directly relevant

to what the job requires

Content validity comprehensive coverage of all aspects

of job

Criterion-related validity accuracy of performance

measures (ie Level of achievement]

Reliability

Consistent inter-rater reliability

Affects felt fairness andAcceptability

And therefore employee motivation

Dangers of Measurement Fetishism

Measuring Performance Results

tendency to concentrate on that which is easily

measurable, ie tangible

Assumption thatAllaspects of performance can be

measured, or are being measured

Eg Drucker:

you cant manage what you cant measure; AND what

gets measured gets done

BUT: What gets measured is often what is easyto measure.

Ignores the

invisible linking work

Organisational Citizenship Behaviour (OCB)


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It is said that Performance goals/criteria

should be

Specific and Stretching

Measurable

Agreed, Attainable (Achievable)

Realistic, Relevant and Results-oriented

Time-bound and Timely

This

2. Performance Appraisal

PA discriminates between employees on an employment-

related basis. Important that it does not (and is not seen to)

discriminate on another basis esp race, religion, etc

Individual performance appraisal is necessary to deal with

non-performers.

Unfair Dismissal provisions of Fair Work Act (and previous

legislation) require procedural fairness ie regular performancereviews and counselling

https://www.youtube.com/watch?v=ui0cRSENXhE

Utopia S 2 Ep 7; 1.20; 5; 11; 1812; 19.40; 22.50; 24]

Can performance manage employees out.

Distinction between bullying and performance management.

Dangers of PA gone wrong


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Performance Appraisal:Purposes

Individual Appraisal (1) Bases

A. Outcomes-based (goal achievement compared with

objectives (MBO)

B. Inputs-based

1.

Trait-based (employee characteristics or attitudes)

2. Competence-based (capabilities)

3. Behaviourally-based (behaviours rated against weighted

job criteria)


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Individual Appraisal (2)Approaches

1. Results (goal-setting)

Criterion-referenced

2. Ranking (comparisons amongst people)

Employees compared to each other

3. Rating (comparing peoples attributes/traits and

behaviours) to some standard or scale

define behaviour necessary for job effectiveness, and measure theextent to which each employee exhibits it

Ranking and Rating

Comparative ranking

Rank indivs against each other on assessments ofperformanc, traits or competence

Comparison could be holistic(straight ranking), orcriterion by criterion(alternation ranking)

Forced Ranking

Like straight ranking order employees top to bottom Potentially, then yankthe bottom out! (Rank and

Yank)

Forced Distribution

Performance assessments moderatedinto a bellcurve assign indivs to grades


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Trait-Based Appraisal

Identify individual characteristics (factors) that arelikelyto result in high performance. What is the basis for the claim?

(Initiative? Enterprise? Sense of Humour?Cooperativeness? Proactivity?)

Difficult to measure

Each factor is scored on Graphic Rating Scale,usually 4, or5 levels, from unsatisfactory to outstanding

Difficulty:

How possible and fair is it to score ie assign a number totraits?

Traits cant be seen, they are only inferred from behaviour(could be image management)

Problems of rater bias and error enter in

Behaviour Observation Scale, or Behaviourally

Anchored Rating Scale (BARS)

Behaviour Almostnever

Rarely Some

times

Usually Almostalways

Listens, ustandscustomer needs 1 2 3 4 5

Communicatesconfidently

1 2 3 4 5

Communicatespersuasively to

Get results

1 2 3 4 5

Scale 0-24% of time25-44% of

time45-64% of

time65-94% of

time95-100% of

time

Behaviour Based Appraisal


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- Provide specific examples, or anchors, to illustrate

and describe each behavioural criterion for specific

jobs

- Maximises inter rater reliability by providing all

assessors with a consistent set of behavioural

definitions

Examples of Anchors:

-

Listens well- Conveys confidence when communicating

- Expresses ideas clearly and directly

- Misunderstands customer needs

!"#$%&'()$**+,-./#')"0 2$3&.4 5/$*"6

7!-258.

Goal Setting

Setting specific goals

is more likely to lead to higher performance than non

specific ones (like improve your attitude)

Goals that are perceived to be difficult to achieve (but not

impossible!) result in better performance.

Employee participation in goal setting tends to lead to

higher goals being set than when the manager unilaterally

sets the goals.

Frequent performance feedback results in higher

performance.


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Peer Assessment (360 degree)

Subordinates (bottom up)

Self Assessment

External customers or clients

Routine use of customer information (but limited)

Mystery shopper possibly unethical

Multisource Assessment

The greater the number, the more accurate it willbe! ??

Alternative sources decreases unreliability ??

Sources of information for appraisal

Sources of Error in Appraisal

Intentional Errors Persecution, harshness error

Favouritism, leniency error

subordinates performance may reflect on ownperformance!

Unintentional Errors Halo and Horns

Recency

Contrast

Similarity

Central Tendency


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3. Considerations in Delivering a

Performance Appraisal Two potentially conflicting goals

Developmental

The identification of training and development needs

Judgmental

Make a rating and/or ranking

When the latter is the basis for remuneration, the

employee has an interest in inflating it and in

disguising performance gaps

The Supervisor and the PA Interview

> Importance of supervisor training in the conduct of PM

interviews

how to deliver negative feedback in a non-threatening manner

depersonalise it, talk about criteria (presupposes criteria that are

accepted) and behaviours (not traits too personal)

Key feedback should be developmental and PA interview can

be an occasion for individual and org learning

But presumes knowledge of the employees work and a bit of

time

https://www.youtube.com/watch?v=SYRcgXlkL-s [7mins]

dangers

See Kramar, p. 357 for examples


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Insights from Motivation Theory (1) Expectancy

Theory

Extent to which Perf Mgt affects work behaviour depends on

the indivs expectationsof likely consequences

Valence(reward attractiveness: how much do I want

this?)

Instrumentality(perceived performance-reward linkage)

line of sight(andwill they deliver it?)

Expectancy(effort-performance linkage) (can I achieve

the required performance with the skills and resources at

my disposal?)

A performance-contingent reward will be effective only if the

link between effort and reward is clear and the value of the

promised reward is seen to be worth the extra effort.

Insights from Motivation Theory (2) Equity

Theory Employees want to be treated fairly.

Perceived inequityproduces tension within the

individual.

This may entail revising their psychological

contract

Procedural justice

Was theprocessof PM and Perf Related Pay

fair?

3 features

Adequate notice, fair hearing, judgement based onevidence.

Distributive justice

Were the outcomesfair?


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Distributive Justice

Distribution of rewards should be feltto be fair, if it is to be a

positivemotivator Rewards should be commensurate with the effort made

(input/output ratio)

And should be proportionate to a comparator

Comparable worth: People doing the same job shouldreceive the same pay.

And the people compared should be comparable(qualifications?)

ie the comparison should be on the basis of employmentrelevant conditions (not paid differently because of

gender or race) If the psychological contract is to remain intact

Also Interactional Justice respect, no bullying

https://www.youtube.com/watch?v=lSRFyIl-ihc [7 mins]

Table 10.2 Categories of perceived

fairness and implications for performance

management systems


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A good appraisal system:

! clarifies tasks and goals

! focuses on tasks over which employee has control

! identifies training needs

! Is covered by a performance agreement

Which ensures that discontent employees have an appeal

process

! ensures that supervisors give regular and constructive

feedback

!

involves employees in defining performance goals! Ensures appraisers are trained in appraisal methods and

sources of bias

! Avoids interactional injustice (bullying, domination)

Conclusion

Performance appraisal is one of the central

processes for HRM

Importance of felt fairness and perceived equity

as a key motivator

Importance of feedback and skill at PA or it can go

wrong Importance of supervisor training to avoid pitfalls,

especially bullying.

week 11 performance appraisal

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