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 ProgramsPrentice Hall, Inc. © 2006

Basic Employee Information

Accountabilities, Objectives, and Standards

Competencies and Indicators

Major Achievements and Contributions

Stakeholder Input

Employee Comments

SignaturesPrentice Hall, Inc. © 2006

Developmental AchievementsDevelopmental

Needs Plans Goals

Prentice Hall, Inc. © 2006

SimplicityRelevancyDescriptivenessAdaptability

Comprehensiveness

Definitional Clarity

CommunicationTime Orientation

Prentice Hall, Inc. © 2006

Judgmental strategy

Mechanical strategy

Prentice Hall, Inc. © 2006

Number of Meetings•Annual •Semi-annual •Quarterly

Prentice Hall, Inc. © 2006

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

Prentice Hall, Inc. © 2006

System InaugurationSelf-AppraisalClassical Performance ReviewMerit/Salary ReviewDevelopment PlanObjective Setting

Prentice Hall, Inc. © 2006

Employees should be involved in selecting

Which sources evaluateWhich performance dimensions

When employees are actively involved

Higher acceptance of resultsPerception that system is fair

Prentice Hall, Inc. © 2006

Direct knowledge of employee performance

SupervisorsPeersSubordinatesSelfCustomers

Prentice Hall, Inc. © 2006

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

Prentice Hall, Inc. © 2006

Advantages Assess teamwork

Disadvantages Possible friendship bias May be less discriminating

Prentice Hall, Inc. © 2006

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)

Prentice Hall, Inc. © 2006

Advantages Increased acceptance of decisions Decreased defensiveness during

appraisal interview Good position to track activities during

review periodDisadvantages

May be more lenient and biased

Prentice Hall, Inc. © 2006

Advantages Employees become more focused

on meeting customer expectationsDisadvantages

Time Money

Prentice Hall, Inc. © 2006

Expect disagreementEnsure employee receives

feedback by sourceAssign differential weights to

scores by source, depending on importance

Prentice Hall, Inc. © 2006

Intentional errors Rating inflation Rating deflation

Unintentional errors Due to complexity of task

Prentice Hall, Inc. © 2006

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

Maximize merit raise/rewardsEncourage employeesAvoid creating written recordAvoid confrontation with

employeesPromote undesired employees out

of unitMake manager look good to

his/her supervisor

Prentice Hall, Inc. © 2006

Shock employeesTeach a lessonSend a message to employee Build a written record of poor

performance

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

InformationMotivation Identifying, observing, recording

and evaluating performanceHow to interact with employees

when they receive performance information

Prentice Hall, Inc. © 2006

Reasons for implementing the performance management system

Information on the appraisal form and system mechanics

Prentice Hall, Inc. © 2006

•Benefits of providing accurate ratings

•Tools for providing accurate ratings

Prentice Hall, Inc. © 2006

How to identify and rank job activities

How to observe, record, measure performance

How to minimize rating errors

Prentice Hall, Inc. © 2006

How to conduct an appraisal interview

How to train, counsel, and coach

Prentice Hall, Inc. © 2006