Managing Human Resources to Improve the Performance of Public Organizations : The Role of Performance Evaluation J. Edward Kellough Department of Public Administration and Policy University of Georgia

A Fundamental Premise: The productivity of an organization is the result, to a considerable extent, of the productivity of its workers.

Therefore … Public sector organizations cannot perform well if their workers do not perform well. It is imperative that the work of individual public employees be monitored and evaluated.

Identifying Performance Criteria: Work Outcomes or Results Work Behaviors Employee Traits

Performance Standards: Regardless of the criteria, realistic standards for performance must be developed. Standards for performance should reflect reasonable estimates of what is possible in terms of accomplishments. These estimates require a thorough understanding of the work at issue – developed through long experience.

Conducting the Appraisal: Rating Scale or Narrative Behaviorally Anchored Annual Cycle Appraisal Interview with the Employee Allow Sufficient Time Ratings by Others?

Sources of Error: Bias Halo Effect First-Impression Error Similar-to-Me Effect Comparison or Contrast Effects Central Tendency Error

Promoting High Performance: Communicate expectations clearly and consistently to employees Ensure that employees understand the rationale for specific tasks Provide necessary training for employees Give employees the opportunity to perform Provide incentives for high performance

Regarding Incentives... Intrinsic Incentives Derived from the nature of the work and the employee’s satisfaction from doing the work Extrinsic Incentives Derived from the context within which work is accomplished

A Word of Caution About Pay for Performance... The Theoretical Argument: Equity Theory Expectancy Theory The subjectivity of employee performance appraisal will inevitably make pay for performance problematic.

Recommendation 1: Public organizations should have a carefully devised system for evaluating the individual performance of every employee.

Recommendation 2: Attention and thought must be given to specifying appropriate criteria upon which performance is to be assessed.

Recommendation 3: Explicit standards should be developed to identify superior and inferior performance on each criterion.

Recommendation 4: Supervisors must be thoroughly trained in the application of the performance appraisal process so that common errors can be avoided. They must also be given adequate time to evaluate subordinate employees’ performance. Supervisors should meet with each employee they evaluate in order to discuss performance.

Recommendation 5: Efforts to link performance appraisal outcomes to pay should be avoided.

Recommendation 6: Superior performance should be incentivized primarily through job enrichment strategies that enhance intrinsic incentives associated with responsibility, recognition, and opportunity for achievement and advancement. Extrinsic incentives must be provided at a level that prevents employee dissatisfaction.

Recommendation 7: Managers must be certain that they communicate clearly and consistently all job requirements and expectations to employees. Managers must also make certain that employees understand those instructions and accept them. It is also management’s responsibility to ensure that employees have the ability to perform and are given the opportunity to perform.

Recommendation 8: Repeated poor performance should trigger a progressive disciplinary process that can ultimately culminate in separation of the offending employee from the organization.