Appraising and Improving

Performance
Anil Verma

Fall 2005 1

Objectives
ƒ Why do we measure performance?
ƒ Effective performance appraisal systems
ƒ How do we measure performance?
ƒ Giving appropriate feedback

What is Job Performance?

ƒ Task performance:
performance: Behaviours that
contribute to the production of goods or
provision of services
ƒ Citizenship performance:
performance: Behaviours
Behaviours
that contribute to the organization’s goals
by positively influencing its social and
psychological environment
ƒ Counterproductive performance:
performance:
Voluntary behaviours that harm the well-
well-
being of the organization
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 Factors That Influence
Performance

Why is Performance Measured?

ƒ Developmental reasons
– How might a performance appraisal contribute
to an individual’s development?
ƒ Administrative reasons
– How might a performance appraisal serve
administrative functions?

Why is Performance Measured?

ƒ Performance appraisal: The evaluation of a
person’s performance
– Provides feedback to employees
– Identifies employees’ developmental needs
– Decides promotions and rewards
– Decides demotions and terminations
– Develops information for selection and
placement decisions

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 Actual and Measured
Performance
Performance
overlooked Evaluator’s
by evaluator situational
factors

True Unreliability Disagreement

Assessment
Employee’s
Deficiency Invalidity temporary
personal
factors

Actual Measured
Performance Poorly defined Performance
task performance
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Reasons Appraisal Programs Fail

ƒ Lack of top-
top-management information and
support
ƒ Unclear performance standards
ƒ Rater bias
ƒ Too many forms to complete
ƒ Use of the appraisal program for conflicting
purposes

Effective Performance Appraisals

ƒ Appraisal system should have clear anchors
and standards of performance
ƒ Comply with the law
ƒ Decide who should appraise
ƒ Train appraisers
– Monitor performance daily
– Keep diary and document interactions
– Understand the behaviours important to job
performance
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 Establishing Performance
Standards
Criterion contamination:
Elements that affect the
appraisal measures that are
not part of the actual
performance Performance measures
Reliability:
Measures that are
consistent across
raters and over time
Strategic relevance:
Performance standards
linked to organizational Zone of valid
goals and competencies assessment

Criterion deficiency:
Aspects of actual performance
that are not measured
Actual
performance

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Legal Guidelines for Appraisals

ƒ Job related
ƒ Written copy
ƒ Observable behaviour
ƒ Train the supervisors
ƒ Corrective options
ƒ Appeals procedure

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Sources of Performance
Appraisal
ƒ Manager and/or Supervisor Appraisal
ƒ Self-
Self-Appraisal
ƒ Subordinate Appraisal
ƒ Peer Appraisal
ƒ Team Appraisal
ƒ Customer Appraisal

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 360-
360-Degree Feedback

ƒ 360-
360-degree feedback: definition
ƒ Integrity safeguards:
– Assure anonymity
– Make respondents accountable
– Prevent “gaming” of the system
– Use statistical procedures
– Identify and quantify biases

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Training Raters
ƒ Establish an appraisal plan
ƒ Eliminate rater error
– Halo error
– Error of central tendency
– Leniency/strictness error
– Recency error
– Contrast error
– Similar- to
- meerror
ƒ Feedback training
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How is Performance Measured?

ƒ Trait methods
ƒ Behavioural methods
ƒ Results methods

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 Trait Methods
ƒ Graphic Rating-
Rating-Scale Method
ƒ Mixed-
Mixed-Standard Scale Method
ƒ Forced-
Forced-Choice Method
ƒ Essay Method

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Behavioural Methods
ƒ Critical Incident
ƒ Behavioural Checklist Method
ƒ Behaviourally Anchored Rating Scale
(BARS)
ƒ Behaviour Observation Scale (BOS)

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Results Methods
ƒ Productivity Measures
ƒ Management By Objectives (MBO)
ƒ Balanced Scorecard

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Summary of Appraisal Methods
ADVANTAGES DISADVANTAGES
Inexpensive Potential for error
TRAITS Meaningful Poor for counselling
Easy to use Poor for allocating rewards
Poor for promotional decisions

Specific dimensions Time consuming

BEHAVIOUR Accepted by employees Costly
Useful for feedback Some rating error
OK for reward/promotion

Less subjectivity bias Time consuming

Accepted by employees Focus on short term
RESULTS
Performance-reward link Criterion contamination
Encourages goal setting Criterion deficiency
Good for promotion
decisions

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Appraisal Interviews
ƒ Tell and sell (persuasion)
ƒ Tell and listen (nondirective)
ƒ Problem solving (problem resolution and
employee development)

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Conducting the
Appraisal Interview
ƒ Ask for a self- assessment
ƒ Invite participation
ƒ Express appreciation and start positively
ƒ Minimize criticism
ƒ Change the behaviour, not the person
ƒ Refer to observable behaviours
ƒ Focus on solving problems
ƒ Be supportive
ƒ Establish goals
ƒ Follow up

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