1. Performance Appraisal: The Achilles Heel of Personnel?

2. * Performance Appraisal Uses
Raises, Merit Pay, Bonuses
Personnel Decisions (e.g., promotion, transfer, dismissal)
Identification of Training Needs
Research Purposes (e.g., assessing the worth of selection tests)

3. 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 System

4. 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)

5. * Sources of Information
1) Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
2) Co-Workers (Peers)
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback

6. * 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)
5) Client
Good source of feedback
Negativity bias

7. Technology and Client/Customer Feedback
Other examples: Amazon, eBay, Trip Advisor, iTunes

8. Technology and Client/Customer Feedback (cont.)

9. Other Examples of Internet-Based Performance Information
Amazon

10. Other Examples of Internet-Based Performance Information
Expedia
Positive
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
Negative
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

11. 360 Degree Performance Appraisal
Self
Supervisor
Customers
Subordinates
Co-Workers

12. * Subjective Appraisal Methods (can be used with any type of job)
Relative Methods
Ranking
1st _____
2nd_____
3rd _____
2) Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.
Both are difficult to use with a large number of subordinates

13. * Subjective Appraisal Methods (cont.)
Absolute Methods
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

14. ~ * Basic Rating Scale Errors ~
Leniency (positive bias)
_____ _____ _____ _____ _____
Very Average Excellent
Poor
Severity (negative bias)
Central Tendency (midpoint)
All lead to a restriction in the range of performance scores

15. 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

16. 3. Problem Solving/Troubleshooting
Definition: Uses a logical, step-by step approach to identify and solve process problems
Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding
Expectations Expectations
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, people—engineers, 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 one’s own)
Behavioral Examples of Rating:_____________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

17. 2. Technical Ability
Definition: Uses mechanical, electrical and process equipment, tools, and principles properly
Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding
Expectations Expectations
Cannot describe the parts and functions of various equipment (e.g., valves, pumps, motors)
Skips steps in the procedures when performing job tasks
Incorrectly uses tools and other equipment
Cannot read and interpret EFDs, PFDs, blueprints and schematics
Does not accurately perform basic mathematical calculations or conversions
Interprets graphs, charts and diagrams accurately
Examines relevant information (e.g., tank levels, set points) before making process adjustments
Continuously learns and improves one’s job knowledge
Can explain to others how to do their job
Demonstrates knowledge of different work areas (e.g., lab) and how these interact with each other
Can train others on how to do their job
Independently resolves any complex work-related request
Suggests ways to improve system functioning (e.g., increase yield, prevent waste)
Behavioral Examples of Rating:_____________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

18. ~ * 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.

19. * 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)
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

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

21. Performance Appraisal & Self-Fulfilling Prophecies
Supervisor Expectancy
(e.g., labels)
Leadership Behaviors
Subordinate
Self-Expectancy
Subordinate Performance
Subordinate
Motivation

22. * Best Practices for Performance Appraisal Systems
Ensure that procedures for personnel decisions do not discriminate on the basis of the race, sex, national origin, religion, or age of those affected by such decisions.
Use objective and uncontaminated data whenever they are available.
Provide a formal system of review or appeal to resolve disagreements regarding appraisals and encourage self-assessments.
Use more than one independent evaluator of performance.
Use a formal, standardized system for personnel decisions.
Ensure that evaluators have ample opportunity (and incentives) to observe and rate performance. Record the observations and comments/ratings.
Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
Provide documented performance counseling prior to performance,-based termination decisions.

23. * Best Practices for Performance Appraisal Systems (cont)
Communicate specific performance standards to employees.
Provide raters with written instructions on how to complete performance evaluations.
Evaluate employees on specific work dimensions, rather than on a single overall or global measure.
Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings.
Base the content of the appraisal form on a job analysis.
Provide employees with an opportunity to review their appraisals.
Set goals for employees.
Educate personnel decision-makers regarding laws on discrimination.

24. * Equal validity, unequal criterion means Satisfactory Non minority
Performance
Criterion
Minority
Unsatisfactory
Reject Accept
Predictor Score
Equal validity, unequal criterion means
Equal test scores; Minorities performing less well on job (over predicting performance)
Minorities hired same as non minorities but probability of success is small. Can
reinforce existing stereotypes.