Performance Appraisal

Lecture #12Lecture #12

Performance Appraisal

Behavior Control SystemBehavior Control System

Performance Appraisal

Source of EvaluationSource of Evaluation

Performance Evaluation InstrumentsPerformance Evaluation Instruments

Problems with Error and BiasProblems with Error and Bias

Sources of Evaluation

Who evaluates performance?Who evaluates performance?

Supervisor Evaluates Subordinate Most CommonMost Common

MethodMethod

Group of Supervisors Evaluate Subordinate Reduces BiasReduces Bias

Group of Peers Evaluate Colleague Difficult to hideDifficult to hide

things from yourthings from your

co-workersco-workers

Group of Subordinates Evaluate Superior

Self Evaluation

Personnel (HR) Appraisal

Personnel (HR) Evaluation

Combination

Performance Evaluation Instruments Different types of instruments provide Different types of instruments provide

protection against errors and biasprotection against errors and bias

Global Ranking

Uni-Dimensional Rating ScaleUni-Dimensional Rating Scale

1 21 2 33 44 55

Global Ranking

Grades in SchoolGrades in School

AA B C D F B C D F

Multi-Dimensional Rating Scale

Quality of Work 1 2 3 4 5Quality of Work 1 2 3 4 5

Quantity of Work 1 2 3 4 5Quantity of Work 1 2 3 4 5

Concern for Safety 1 2 3 4 5Concern for Safety 1 2 3 4 5

Critical Incident

Significant good and bad incidents go into Significant good and bad incidents go into filefile

Determines whether employee is an asset or Determines whether employee is an asset or liability to the organizationliability to the organization

Can be used to formulate a Multi-Can be used to formulate a Multi-Dimensional Rating ScaleDimensional Rating Scale

Essay Evaluations

Supervisors tend to hate doing theseSupervisors tend to hate doing these

Other Instruments

BARSBARS

Behaviorally Anchored Rating ScalesBehaviorally Anchored Rating Scales

MBOMBO

Management By ObjectivesManagement By Objectives

Problems with Error and Bias

Many can be overcome with proper Many can be overcome with proper instrumentinstrument

Halo Effect

A single trait or incident biases someone’s A single trait or incident biases someone’s opinionopinion

Overcome by multi-dimensional scalesOvercome by multi-dimensional scales

Constant Error

Rater tends to stick to one side of the scale Rater tends to stick to one side of the scale or the otheror the other

““Easy A” TeacherEasy A” Teacher

Constant Error

Rater tends to stick to one side of the scale Rater tends to stick to one side of the scale or the otheror the other

Constant Error

Overcome by forced distribution of Overcome by forced distribution of rankingsrankings

Recency Error

We tend to remember the near past better We tend to remember the near past better than the distant pastthan the distant past

Little kids behave around Christmas timeLittle kids behave around Christmas time

Recency Error

Overcome by having rater consider Overcome by having rater consider different time periods separatelydifferent time periods separately

Jan – MarJan – Mar

Apr – JunApr – Jun

Jul – SepJul – Sep

Oct – DecOct – Dec

Error of Central Tendency

Rater tends to ignore endpoints of scaleRater tends to ignore endpoints of scale

Overcome by forced distribution of Overcome by forced distribution of rankingsrankings