Gathering Performance Information: Overview

Appraisal Forms Characteristics of Appraisal Forms Determining Overall Rating Appraisal Period and Number of Meetings Who Should Provide Performance Information? A Model of Rater Motivation Preventing Rating Distortion through Rater Training Programs

Appraisal forms
Information is collected using forms
Paper forms Electronic forms ( Advantage- easily shared, facilitate analysis)

Major Components of Appraisal Forms

Basic Employee Information Accountabilities, Objectives, and Standards Competencies and Indicators

Major Achievements and Contributions

Stakeholder Input

Employee Comments
Signatures

Major Components of Appraisal Forms

Basic Employee Information Job title, Deptt , division, Employee no, pay grade, dates of evaluation period, starting date with company and starting date in current job

Major Components of Appraisal Forms

Accountabilities, objectives and standards ( If the performance system adopts a results approach)
Name and description of each accountability, objectives , extent to which objective has been achieved Objectives may be weighted in terms of importancewhich facilitates calculation of performance score. Subsection describing condition under which performance was achieved

Major Components of Appraisal Forms

Competencies and indicators (in case of behavioural approach)

Competencies (definitions) and their behavioural indicators

Major Components of Appraisal Forms

Major achievements or contribution Behaviour or result related

Rater is asked to list out 2-3 major accomplishments

Major Components of Appraisal Forms

Stakeholders inputs

Sections to be filled out by other stake holders Generally separate forms are used

Ex faculty feedback forms

Major Components of Appraisal Forms

Employee comments

Reflects employee participation

Reactions and comments by employee being rated

Major Components of Appraisal Forms

Signatures

Rater, ratee, rater supervisors, HR deptt

Major Components of Appraisal Forms (2)

(could be included in a separate form)
Developmental Achievements Developmental
Needs Plans Goals

Major Components of Appraisal Forms (2)

(could be included in a separate form)
Developmental achievements Extent to which developmental goals set for the review period have been achieved

Skills learnt, certification

Developmental needs plans goals

Future oriented

Desirable Features for All Appraisal Forms

1. Simplicity- Simple to understand and administer, clear and coincise 2. Relevancy 3. Descriptiveness-Sufficiently descriptive that an outside party has a clear understanding of the performance information conveyed 4. Adaptability

Desirable Features for All Appraisal Forms

5. Comprehensiveness Covers all major areas of performance 6. Definitional Clarity- Desirable competencies and results are clearly defined, Enhances consistency of ratings across raters 7. Communication Meaning of each component successfully communicated to all 8. Time Orientation Past and Future

Determining Overall Rating

Once the form is completed there is a need to compute overall performance score Important because
Useful for making administrative decisions Useful for measuring if employee is improving performance

Determining Overall Rating

Two strategies for obtaining score Judgmental strategy Mechanical strategy

Determining Overall Rating

Judgmental strategy First rater considers every aspect of performance and then summarises it Holistic approach-Assigns an overall score Dependent on raters ability to arrive at a fair and accurate score

Determining Overall Rating

Mechanical strategy
First considers scores assigned to each section Adds them up to obtain overall score (weightages assigned to each dimension need to be considered)

Appraisal period
Number of Meetings
Annual Semi-annual Quarterly

When Review Is Completed

Anniversary date
Supervisor doesnt have to fill out forms at same time Cant tie rewards to fiscal year

Fiscal year
Rewards tied to fiscal year Goals tied to corporate goals May be burden to supervisor, depending on implementation

6 Types of Formal Meetings

(can be combined)
System Inauguration Self-Appraisal Classical Performance Review Merit/Salary Review Development Plan Objective Setting

Who Should Provide Performance Information?

Employees should be involved in selecting Which sources evaluate Which performance dimensions
When employees are actively involved Higher acceptance of results Perception that system is fair

Who Should Provide Performance Information? Direct knowledge of employee performance

Supervisors Peers Subordinates Self Customers

Supervisors
Advantages
Best position to evaluate performance vs. strategic goals Make decisions about rewards

Disadvantages
Supervisor may not be able to directly observe performance Evaluations may be biased

Peers
Advantages
Assess teamwork

Disadvantages
Possible friendship bias May be less discriminating

Subordinates
Advantages
Accurate when used for developmental purposes Good position to assess some competencies

Disadvantages
Inflated when used for administrative purposes May fear retaliation (confidentiality is key)

Self
Advantages
Increased acceptance of decisions Decreased defensiveness during appraisal interview Good position to track activities during review period

Disadvantages
May be more lenient and biased

Customers (external and internal)

Advantages
Employees become more focused on meeting customer expectations

Disadvantages
Time Money

Disagreement Across Sources

Expect disagreement Different sources from different organisational levels Ensure employee receives feedback by source Assign differential weights to scores by source, depending on importance

Types of Rating Errors

Intentional errors
Rating inflation Rating deflation

Unintentional errors
Due to complexity of task

A Model of Rater Motivation

Expected Positive and Negative Consequences of Rating Accuracy Motivation to Provide Accurate Ratings Probability of Experiencing Positive & Negative Consequences

Rating Behavior

Expected Positive and Negative Consequences of Rating Distortion

Motivation to Distort Ratings

Probability of Experiencing Positive & Negative Consequences

Motivations for Rating Inflation

Maximize merit raise/rewards Encourage employees Avoid creating written record Avoid confrontation with employees Promote undesired employees out of unit Make manager look good to his/her supervisor

Motivations for Rating Deflation

Shock employees Teach a lesson Send a message to employee Build a written record of poor performance

Prevent Rating Distortion through Rater Training Programs

Rater Training Programs should cover:

Information Motivation Identifying, observing, recording and evaluating performance How to interact with employees when they receive performance information

Information - how the system works

Reasons for implementing the performance management system Information on the appraisal form and system mechanics

Motivation Whats in it for me?

Benefits of providing accurate ratings Tools for providing accurate ratings

Identifying, observing, recording, and evaluating performance

How to identify and rank job activities How to observe, record, measure performance How to minimize rating errors

How to interact with employees when they receive performance information

How to conduct an appraisal interview How to train, counsel, and coach