Performance management

Gathering Performance Information:Overview

• 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 Programs

Prentice Hall, Inc. © 2006

Major Components of Appraisal Forms (1)

• Basic Employee Information

• Accountabilities, Objectives, and Standards

• Competencies and Indicators

• Major Achievements and Contributions

• Stakeholder Input

• Employee Comments

• Signatures


Major Components of Appraisal Forms (2) (could be included in a separate form)

• Developmental Achievements• Developmental

– Needs – Plans– Goals


Desirable Features for All Appraisal Forms

1. Simplicity2. Relevancy3. Descriptiveness4. Adaptability

1. Comprehensiveness2. Definitional Clarity3. Communication4. Time Orientation


Determining Overall Rating

• Judgmental strategy

• Mechanical strategy


Appraisal period

Number of Meetings• Annual • Semi-annual • Quarterly


When Review Is Completed

• 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


6 Types of Formal Meetings (can be combined)

• System Inauguration• Self-Appraisal• Classical Performance Review• Merit/Salary Review• Development Plan• Objective Setting


Who Should Provide Performance Information?

Employees should be involved in selecting• Which sources evaluate• Which performance dimensions

When employees are actively involved• Higher acceptance of results• Perception that system is fair


Who Should Provide Performance Information?

Direct knowledge of employee performance

• Supervisors• Peers• Subordinates• Self• Customers


Supervisors

• 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


Peers

• Advantages– Assess teamwork

• Disadvantages– Possible friendship bias– May be less discriminating


Subordinates

• 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)


Self

• Advantages– Increased acceptance of decisions– Decreased defensiveness during appraisal

interview– Good position to track activities during review

period• Disadvantages

– May be more lenient and biased


Customers (external and internal)

• Advantages– Employees become more focused on

meeting customer expectations• Disadvantages

– Time– Money


Disagreement Across Sources

• Expect disagreement• Ensure employee receives feedback by

source• Assign differential weights to scores by

source, depending on importance


Types of Rating Errors

• Intentional errors– Rating inflation– Rating deflation

• Unintentional errors– Due to complexity of task


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

A Model of Rater Motivation

Motivations for Rating Inflation

• Maximize merit raise/rewards• Encourage employees• Avoid creating written record• Avoid confrontation with employees• Promote undesired employees out of unit• Make manager look good to his/her

supervisor


Motivations for Rating Deflation

• Shock employees• Teach a lesson• Send a message to employee • Build a written record of poor

performance



Prevent Rating Distortion through Rater Training Programs

Rater Training Programs should cover:

• Information• Motivation• Identifying, observing, recording and

evaluating performance• How to interact with employees when

they receive performance information


Information - how the system works

• Reasons for implementing the performance management system

• Information on the appraisal form and system mechanics


Motivation – What’s in it for me?

• Benefits of providing accurate ratings• Tools for providing accurate ratings


Identifying, observing, recording, and evaluating performance

• How to identify and rank job activities• How to observe, record, measure

performance• How to minimize rating errors


How to interact with employees when they receive performance information

• How to conduct an appraisal interview• How to train, counsel, and coach


Education

Performance management