Chapter 6

Gathering
Performance
Information
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 Overview
Appraisal Forms
Characteristics of Appraisal Forms
Determining Overall Rating
Appraisal Period and Number of
Meetings

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 Overview (Continued)

Who Should Provide Performance

Information?

A Model of Rater Motivation

Preventing Rating Distortion through

Rater Training Programs

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 Appraisal Forms:
Nine Major Components

1. Basic Employee Information

2. Signatures

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 Appraisal Forms:
Nine Major Components (Continued)
3. Accountabilities, Objectives, and
Standards
4. Competencies and Indicators
5. Major Achievements and Contributions
6. Stakeholder Input
7. Employee Comments

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 Appraisal Forms:
Nine Major Components (Continued)

8. Developmental Achievements
9. Developmental
Needs
Plans
Goals

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 Appraisal Forms:
Eight Desirable Features
1. Simplicity
2. Relevancy
3. Descriptiveness
4. Adaptability

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 Appraisal Forms:
Eight Desirable Features (Continued)
5. Comprehensiveness
6. Definitional Clarity
7. Communication
8. Time Orientation

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 Determining Overall Rating
Judgmental strategy
Consider every aspect of performance
Arrive at defensible summary

Mechanical strategy
Consider scores assigned to each section
Add weighted scores to obtain overall
scores

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Open-Ended (Comments) Sections
Challenges
Difficult to systematically categorize and analyze

Quality, length, and content vary

Tools to overcome challenges

Computer-aided text analysis (CATA) software

Establish goals of information provided

Training in systematic and standardized rating

skills
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 Appraisal Period
Number of Meetings
Annual
May not provide sufficient opportunity for
supervisor/employee discussion
Semi-annual
Quarterly

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 When Review Is Completed
Anniversary date
Supervisor doesnt have to fill out forms for all
employees at the 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
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 Six Types of Formal Meetings
(Can Be Combined)
1. System Inauguration
2. Self-Appraisal
3. Classical Performance Review
4. Merit/Salary Review
5. Development Plan
6. Objective Setting
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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

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Who Should Provide Performance
Information?
Direct knowledge of employee
performance
Supervisors
Peers
Subordinates
Self
Customers
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 Supervisors
Advantages
Can evaluate performance vs. strategic goals
Make decisions about rewards
Able to differentiate among performance dimensions
Viewed as exclusive source in some cultural contexts

Disadvantages
Supervisor may not be able to directly observe
performance
Evaluations may be biased
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 Peers
Advantages
Assess teamwork

Disadvantages
Possible friendship bias

May be less discriminating

Context effects

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 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)
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 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
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 Self (Continued)
Suggestions to improve quality of self-
appraisals
Use comparative instead of absolute
measurement systems
Allow employees to practice their self-
appraisals
Ensure confidentiality
Emphasize the future

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Customers (External and Internal)
Advantages
Employees become more focused on
meeting customer expectations.

Disadvantages
Time
Money

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 Disagreement Across Sources
Expect disagreements

Ensure employee receives feedback by

source

Assign differential weights to scores by

source, depending on importance

Ensure employees take active role in

selecting which sources will rate which
dimensions
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 Types of Rating Errors

Intentional errors
Rating inflation

Rating deflation

Unintentional errors
Due to complexity of task

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 A Model of Rater Motivation
Expected Positive and Negative
Consequences of Rating
Accuracy

Motivation to Provide Accurate

Ratings
Probability of Experiencing
Positive and Negative
Consequences
Rating Behavior

Expected Positive and Negative

Consequences of Rating
Distortion
Motivation to Distort Ratings

Probability of Experiencing
Positive and Negative
Consequences

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 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
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 Motivations for Rating Deflation

Shock employees

Teach a lesson

Send a message to employee

Build a written record of poor

performance

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Reducing Intentional Rating Distortion

Recommendations:
Have raters justify their ratings

Have raters justify their ratings in a face-

to-face meeting

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Preventing Rating Distortion
Through
Rater Training Programs

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 Rater Training Programs
Should Cover:
Information

Motivation

Identifying, observing, recording and

evaluating performance

How to interact with employees when

they receive performance information

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InformationHow the System Works

Reasons for implementing the

performance management system

Information on the appraisal form and

system mechanics

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MotivationWhats in It for Me?

Benefits of providing accurate ratings

Tools for providing accurate ratings

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Identifying, Observing, Recording, and
Evaluating Performance

How to identify and rank job activities

How to observe, record, and measure

performance

How to minimize rating errors

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 How to Interact with Employees
When They Receive Performance
Information
How to conduct an appraisal interview
How to train, counsel, and coach

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 Quick Review
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

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Copyright 2013 Pearson Education, Inc.

publishing as Prentice Hall
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