1. Industrial and Organizational Psychology Performance Appraisal
Copyright Paul E. Spector, All rights reserved, March 15, 2005

2. What Does It Mean To Do a Job?
Criterion: Standard of judging; a rule or test by which anything is tried in forming a correct judgment respective it.
Single Criterion: Global measure to represent performance
Composite criterion: Combination of individual subcriteria
Requires common metric
Brogden & Taylor (1950) Dollar Criterion
Convert each subcriterion to money
Requires quantification of subcriteria
Multidimensional
Each person gets multiple scores that aren’t combined 

3. Characteristics of Criteria
Theoretical criterion: Conceptual definition of performance
Actual criterion: How performance is assessed
Relevance: Actual assesses the theoretical
Contamination: Actual measures something other than the theoretical
Deficiency: Actual fails to capture the theoretical

5. Performance Appraisal
Determination and Documentation of Individual's Performance
Should be tied directly to criteria
USES
Administrative decisions (promotion, firing, transfer)
Employee development and feedback
Criteria for research (e.g., validation of tests)
Documentation for legal action
Training

6. Objective Methods Counts of behaviors or outcomes of behaviors
Advantages
Consistent standards within jobs
Not biased by judgment
Easily quantified
Face validity‑bottom line oriented
Disadvantages
Not always applicable (teacher)
Performance not always under individual's control
Too simplistic
Performance unreliable--Dynamic
Criterion

7. Subjective Methods People’s judgments about performance
Trait based graphic rating scale
Behavior based: Critical incidents
Mixed Standard Scale
Behaviorally Anchored Rating Scale
Behavior Observation Scales
Problems:
Rating errors: Leniency, Severity, Halo
Supervisor subversion of system--leniency as a strategy
Mixed purposes (feedback vs. administrative)
Negative impact of criticism

8. Rater Error Solutions Error resistant rating forms Rater training
Behaviorally Anchored Rating Scale, BARS
Behavior Observation Scale, BOS
Mixed Standard Scale, MSS
Research does not show these forms to be successful in eliminating errors
Rater training
Rater error training: instructs raters in how to avoid errors
Reduces halo and leniency error
Less accuracy in some studies
Frame of reference training: Give raters examples of performance and correct ratings
Initial research promising in reducing errors (Day & Sulsky, 1995)

9. Sound Performance Appraisal Practices
Separate purposes
Raises dealt with separately from feedback
Consistent feedback, everyday
Limit criticism to one item at a time
Praise should be contingent
Supervisors should be coaches
Appraisal should be criterion related, not personal

10. Technology Technology helpful for performance appraisal
 Employee performance management systems
Web-based
Automated—reminds raters when to rate
Reduces paperwork
Provides feedback
 360-degree feedback systems
Ratings provided by different people
Peers
Subordinates
Supervisors
Self
Big clerical task in large organizations to track/process ratings
Web makes 360s easy and feasible
Consulting firms available to conduct 360s

11. Legally Defensible Performance Appraisal
Performance appraisals can be legally challenged
Organizations lost 41% of cases—Werner & Bolino 1997
Practices that minimize legal challenges 
Job analysis to define dimensions of performance
Develop rating form to assess dimensions from prior point
Have written instructions
Train raters in how to assess performance
Use multiple raters
Management review ratings and allow employee appeal
Document performance and maintain detailed records
Provide assistance and counseling