1. 1/16/2019
Performance
Appraisal

2. Facts about Performance Appraisal
Review of various studies suggests “the appraisal of performance appraisal is not good.”
Those doing rating, those being rated, & administrators have expressed dissatisfaction with their appraisal systems
Widespread dissatisfaction among Fortune 500 companies that have resource to acquire best appraisal technology
Survey on small & medium sized firms report even more dissatisfaction
So, is there any hope for PA?

3. Facts about Performance Appraisal
Studies have revealed that something can be done to improve the effectiveness of appraisal system
Prescription for effective performance management:
Precision in the definition & measurement of performance
Link performance dimensions by combining functions with aspects of values (eg quantity, quality, timeliness)
Incorporate a formal process for investigating and correcting for the effects of situational constraints on performance

4. Performance Appraisal (PA)
A process of determining how well employees do their jobs compared to a set of standards to improve their performance effectiveness.

5. Why Appraise Performance?
Play an integral role in the employer’s performance management process.
Help in planning for correcting deficiencies and reinforce things done correctly.
Useful for career planning in identifying employee strengths and weaknesses.
Affect the employer’s developmental and recognition decisions.

6. Appraisal Objectives

7. Roles and Responsibilities in PA

8. Phases of Appraisal Meetings
Goal
Setting
Communicate
Expectations
Plan the Assessment
Monitor, Assist, &Control
Appraise
Feedback
Personnel Decisions
Develop
Post-
Meeting
Phase
Pre-Meeting
Phase
Meeting Phase

9. Descriptions for Step by Step
# 1 Goal Setting
Analyze job duties/responsibilities and required outcome; choose and define appraisal criteria.
# 2 Communicate Expectations
Set performance expectations/targets and communicate to subordinate; allow for participation.
# 3 Plan
Assist subordinate in determining and implementing effective strategies/processes to perform tasks; explore options and limits to discretion in selection of methods; obtain required resources.
# 4 Monitor, Assist, and Control
Continually monitor performance, providing ongoing feedback and assistance in the forms of problem solving, coaching, counseling, developing/removing roadblocks to successful performance; take corrective action as required
# 5 Appraise
Observe, recall, and evaluate performance against expectations/standards; complete appraisal forms; back up evaluation with concrete examples/data.
# 6 Feedback
Review evaluation with subordinate in carefully planned feedback session; be specific and explicit; listen carefully; build a “problem-solving” focus, cover strengths and weaknesses; complete an action plan to improve performance levels, and/or develop performance capability.
# 7 Personnel Decisions
Make personnel decisions (e.g. promotions, incentives, transfers, etc.)
# 8 Develop
Implement developmental action plans made in previous step.

10. Appraise Methods/Scales
Graphical Rating Scale
Alternation Ranking Scale
Paired Comparison Method
Forced Distribution Method
Critical Incident Method
Behavioral Anchored Rating Scale (BARS)

11. Graphic Rating Scale

12. Overall ranking calculated by taking average of all the scores

13. Paired Comparison method

14. Forced Distribution Method

15. Behaviorally Anchored Rating Scales (BARS)
Expected Behavior
5 — Exceptional performance
Accurately completes and submits all status change notices within an hour of request
4 — Excellent performance
Verifies all status change notice information with requesting manager before submitting
3 — Fully competent performance
Completes status change notice forms by the end of the workday
2 — Marginal performance
Argues when asked to complete a status change notice
1 — Unsatisfactory performance
Says status change notice forms have been submitted when they haven’t

16. Designing an Appraisal System
Design decisions
Decide the nature of the system (uniform or differentiated; interactive or one- way)
Decide the purpose (evaluative, development or both)
Define the rater/ appraiser (single or multiple)

17. Designing an Appraisal System
Develop measurement content
Focus of appraisal and relative weights
Person oriented (attributes and traits)
Work oriented (job functions/ results)
Aspects of values
Generally raters make single overall judgement on job function
Criteria by which the value of performance in any work activity can be assessed (quality, quantity, timeliness, cost effectiveness, interpersonal impact)

18. Designing an Appraisal System
Design measurement process
Types of measurement scale (ordinal/ranking; rating/interval)
Types of rating methods/scales
Accounting for situational constraints for performance
Score computation methods (judgemental or mathematical)

19. Designing an Appraisal System
Defining the rater
More commonly used practiced is the rating by the boss/supervisor
Upward rating is increasing in number of organizations
Customers provide valid & reliable performance information
Survey found only 70% of firms allow self appraisal
More organizations are considering multiple raters
More accurate
Fewer biases
More fair
Less targets of lawsuits

20. Designing an Appraisal System
Administrative characteristics
Frequency and timing
Performance recording procedures
Information collection and processing procedures
Confidentiality and access
Methods of feedback

21. Rating Errors & Bias Primacy and Recency Effect Halo and Horn Effect
Central Tendency
Leniency/ Severity
Stereotyping
Contrast Effect
Sunflower Effect: putting oneself on safer side
Non Performance Factor Effect

22. Effects of PA Errors & Bias
1/16/2019
Effects of PA Errors & Bias
Reduced job satisfaction
Reduced employee motivation and organizational commitment
Less effective
Increased turnover

23. Avoiding Rating Errors
It is unavoidable to make appraisal biases when the ratees and raters are human beings (Bakan and Kelleroglu, 2003), and affect is irrevocable during the process.
Awareness of errors/ problems and their likely effects
Use of right appraisal tools
Training of appraisers
Use of diaries
Use of multi raters
Not using evaluation as a primary reward