Why evaluate the performance of employees?

Compensation (raises, merit pay, bonuses)

Personnel Decisions (e.g., promotion, transfer, dismissal) Training (Identify specific requirements) Research (e.g., assessing the worth/validity of selection tests

Basic Performance Appraisal Process Conduct a Job Analysis (e.g., specify tasks and KSAs)

Develop Performance Standards (e.g., define what is superior, acceptable, and poor job performance)

Develop or Choose a Performance Appraisal Approach

Breaking Down the Performance Appraisal Process

Observation Selective Attention Timing

Structure
Frequency Storage

Encoding of Information (e.g., categorization)

Short vs. Long-term Memory

Evaluation
Retrieve Information Combine information Decision-making (judgment)

Sources of Information
1)

Supervisors (most common)

Role Conflict (e.g., judge and trainer/teacher)

Motivation
Time availability Friendship

2) Co-Workers (Peers)
Peer nominations: (Identifying those with highest and lowest KSAs) Peer ratings: For providing feedback Peer rankings: For discriminating highest to lowest performance on various dimensions

Friendship bias Leniency High level of accuracy Best used as a source of feedback

Effects of poor peer ratings on subsequent task performance:

Lower perceived group performance Lower cohesiveness Lower satisfaction Lower peer ratings

Sources of Information (cont)

3)

Self
Lots of knowledge
Leniency effect Good preparation for performance appraisal meeting (conducive for dialog)

4)

Subordinates
Biases (e.g., # of subordinates, type of job, expected evaluation from

supervisor) Best if ratings are anonymous -- if not, leniency in ratings occur (Antonioni, 1994) Can add information above and beyond other sources (Conway, et. al 2001) 5)

Clients
Good source of feedback

Negativity bias Customer ratings on the web (usage/role, accuracy, verification issues)

Technology and Client/Customer Feedback

Other examples: Amazon, eBay, Trip Advisor, iTunes

Technology and Client/Customer Feedback (cont.)

Other Examples of Internet-Based Performance Information Amazon

Other Examples of Internet-Based Performance Information

Expedia

That's the second time I stay in this hotel. The location is fantastic and the rooms, in general are very comfortable. The view from the top, at the breakfast place is superb. Rating: 4.0

The standard rooms are very, very small, I had only one bag and no place to put it. you could barely turnaround in the bathrooms. I love the decor/ art deco style but a little updating is definitely do. Rating: 2.0

Subjective Appraisal Methods

(can be used with any type of job)

Relative Methods
Ranking 1st _____ 2nd_____

3rd _____
Pair Comparison Employee-1 _____ versus Employee-2 _____ Employee-1 _____ versus Employee-3 _____ etc.
Both are difficult to use with a large number of subordinates

Subjective Appraisal Methods

Absolute Methods
1) Narrative essays Unstructured (e.g., content, length) Affected by the writing ability of supervisors and time availability Cannot validate selection devices (no numbers) 2) Graphic Rating Scale (most common) _____ _____ _____ _____ _____
Very Poor Average Excellent

Common Rating Scale Errors

Leniency (positive bias)

X
_____ Very Poor _____ _____ _____ _____ Average Excellent

Central Tendency (midpoint) X

_____ Very Poor _____ _____ _____ _____ Average Excellent

Both lead to a restriction in the range of performance scores

Halo Error
Observation of specific behavior (s) (e.g., volunteers to work overtime) Responsibility Commitment Initiative Sensitivity

Judgment
High ratings on other performance dimensions Communication

Supervisor Characteristics

Subordinate Characteristics (e.g., age, gender, race, attractiveness)

Labels for Subordinate (positive or negative)

(e.g., gender, race, age)

Attitudes, Stereotypes

Liking of subordinate

Expectations for Subordinate

Observation of Subordinate Job Performance

Selective Attention

Encoding of Information

Recall Information
Evaluate Performance

Self-Fulfilling Prophecy Process

Subjective Appraisal Methods

Behavioral Methods (use of critical incidents; examples of good and poor job behavior collected by job experts over time)

Behavior Observation Scales (BOS)

Rate the frequency in which critical incidents are performed by employees Sum the ratings for a total performance score
1) Assists others in job duties. _____ _____ _____ _____ Never Usually _____ Always

2) Cleans equipment after each use. _____ _____ _____ _____ _____ Never Usually Always

Behaviorally Anchored Rating Scale (BARS) Process

1) Generate critical incidents (examples of good and poor job performance) 2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety) 3) Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong) 4) Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation) 5) Place critical incidents on a vertical scale

BARS (Pros and Cons) Process involves various employees (increases the likelihood
of usage) Job specificity (different BARS need to be developed for each position) Not any better at reducing common rating scale errors (e.g., leniency, halo) Time consuming

3. Problem Solving/Troubleshooting Definition: Uses a logical, step-by step approach to identify and solve process problems

1
Well Below Expectations

2
Below Expectations

3
Meets Expectations

4
Consistently Exceeds Expectations

5
Outstanding

Fails to understand how equipment and processes interrelate Does not complete checklists or other required forms Is not able to identify root causes of process deviations Does not consistently meet A2E expectations Depends on others to solve problems

Uses available resources (e.g., drawings, checklists, forms, peopleengineers, data historian) to determine the root cause of problems Selects and interprets data to solve problems Investigates the nature of equipment and process malfunctions on an ongoing basis Participates in A2E efforts

Develops novel, safe and effective solutions to current problems Anticipates problems before they occur and suggests solutions Takes ownership in problem solving and sees it through to completion Effectively leads problem solving efforts (e.g., A2E, handles complicated analysis requests on ones own)

Behavioral Examples of Rating:_____________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________

4. Teamwork Definition: Strives to build and maintain a good working relationship with ones work group; shares information with team members; accepts ideas and opinions of others

1 Well Below Expectations

2 Below Expectations

3 Meets Expectations

4 Consistently Exceeds Expectations

5 Outstanding

Does not respond to work requests from other team members Fails to share information and/or resources with others Refuses to help co-workers Conflicts with coworkers on 'yours not mine' work situations, or is known to say "that's not my job Frequently complains or makes negative or derogatory remarks about site initiatives, leadership, and/or fellow workers Is slow to respond to work requests from other team members or management

Considers alternative solutions provided by team members Accepts and provides feedback to others Shares information (e.g., trends, status updates) and/or resources with others when asked Readily offers to help other team members on tasks Works with support services and other areas (e.g., maintenance) to resolve shift problems in a timely manner

Anticipates other team members needs (e.g., training, tools, equipment, information) Resolves conflicts between team members Supports company objectives and volunteers for work duties within and outside of ones work area Sacrifices ones own needs for the need of the team Initiates team building activities (e.g., organizing outside group activities, breakfasts)

Behavioral Examples of Rating:_____________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________

Objective Appraisal Data

1) Production Data (e.g., sales volume, units produced)
When observation occurs (timing), and how data is collected Fairness and relevancy issue Potential limited variability Limitations regarding supervisory personnel

2) Personnel Data
Absenteeism (excused versus unexcused)
Tardiness Accidents (fault issue)

360 Degree Performance Appraisal

Supervisor

Co-Workers

Self
Subordinates

Customers

Performance Appraisal Training

1) Frequent observation of performance and feedback (both positive and negative) 2) Recordkeeping (ongoing if possible) 3) Encourage self-assessment of employees 4) Focus on behaviors (not traits) 5) Use specific behavioral criteria and standards 6) Set goals for employees (specific and challenging ones)

7) Focus on how to observe job behaviors and provide incentives to do so

Legally Defensible Appraisal Systems

1) Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.

2) Use objective and uncontaminated data whenever they are available.

3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals. 4) Use more than one independent evaluator of performance. 5) Use a formal, standardized system for personnel decisions. 6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made. 7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude. 8) Provide documented performance counseling prior to performance,-based termination decisions.

Legally Defensible Appraisal Systems (cont)

9) Communicate specific performance standards to employees.

10) Provide raters with written instructions on how to complete performance evaluations.
11) Evaluate employees on specific work dimensions, rather than on a single overall or global measure. 12) Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings. 13) Base the content of the appraisal form on a job analysis. 14) Provide employees with an opportunity to review their appraisals (e.g., several days prior to formal feedback session). 15) Educate personnel decision-makers regarding laws on discrimination.

Factors Affecting Employees Acceptance of Performance Evaluations

Asking for (and using) performance information/input from employees Ensure a 2-way interaction during the performance appraisal meeting
(importance of using employee self-evaluations)

Provide a way for employees to counter or challenge the appraisal

Sufficient detail and knowledge of employee performance by supervisors

Consistent use of performance standards across employees Basing performance evaluation on actual job behaviors

Importance of rater training