1. 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

2. 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

3. 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)

4. Sources of Information
1) Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
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

5. 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

6. 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

7. Subjective Appraisal Methods
Absolute Methods
1) Narrative essay
Unstructured (e.g., content, length)
Affected by the writing ability of supervisors and time availability
Graphic Rating Scale (most common)
_____ _____ _____ _____ _____
Very Average Excellent
Poor

8. Common Rating Scale Errors
Leniency (positive bias) X
_____ _____ _____ _____ _____
Very Average Excellent
Poor
Central Tendency (midpoint)
Both lead to a restriction in the range of performance scores

9. High ratings on other performance dimensions
Halo Error
Responsibility
Commitment
Initiative
Sensitivity
Judgment
Communication
Observation of specific behavior (s) (e.g., volunteers to work overtime)
High ratings on other performance dimensions

10. Self-Fulfilling Prophecy Process
Subordinate Characteristics (e.g., age, gender, race, attractiveness)
Labels for Subordinate (positive or negative)
Supervisor Characteristics
(e.g., gender, race, age)
Attitudes, Stereotypes
Expectations for Subordinate
Liking of subordinate
Observation of Subordinate Job Performance
Selective Attention
Encoding of Information
Recall Information
Self-Fulfilling Prophecy Process
Evaluate Performance

11. Performance Appraisal & Self-Fulfilling Prophecy
Supervisor Expectancy
Supervisor Behaviors 1 2
Subordinate
Self-Expectancy 5 6 3
Subordinate Performance
Subordinate
Motivation 4

12. 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
Cleans equipment after each use.

13. 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)

14. Behaviorally Anchored Rating Scale (BARS) Process
Generate critical incidents (examples of good and poor job performance)
2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety)
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)
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

15. Process involves various employees (increases the likelihood of usage)
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

16. Performance Appraisal Training
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)
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

17. Legally Defensible Appraisal Systems
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.
Use objective and uncontaminated data whenever they are available.
3) Provide a formal system of review or appeal to resolve disagreements
regarding appraisals.
Use more than one independent evaluator of performance.
5) Use a formal, standardized system for personnel decisions.
Ensure that evaluators have ample opportunity to observe and rate
performance if ratings must be made.
Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
8) Provide documented performance counseling prior to performance,-based
termination decisions.

18. 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.
15) Educate personnel decision-makers regarding laws on discrimination.

19. 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
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
Using performance ratings for personnel decisions (e.g., pay, promotion)
(importance of using employee self-evaluations)
Importance of rater training