IOP L6

• Performance Management


  The process of evaluating employee behavior and using that information to enhance job performance
• Performance appraisal


  Used to make important personnel decisions (such as retention and advancement) and as such is governed by fair employment laws
• Base rate


  The percentage of current employees in a job who are judged to be performing their jobs satisfactorily
• Steps of performance appraisal systems

  1. Determine the reasons for performance evaluation

  2. Identify environmental and cultural limitations that might affect the success of an appraisal system

  3. Who will evaluate the performance?

  4. Select the Best Appraisal Method to Accomplish Your Goals

  5. Train Raters

  6. Observe and Document Performance

  7. Evaluate Performance

  8. Communicate Appraisal Results to Employees

  9. Terminate Employees

  10. Monitor the Legality and Fairness of the Appraisal system
• Who will evaluate the performance?

  • Supervisor
  • Peers
  • Subordinates
  • Customers
  • Self-Appraisal
• 360-degree feedback


  Obtains feedback from multiple sources such as supervisors, subordinates, and peers
• Multiple-source or 720-degree feedback


  Comes from sources (e.g., clients, subordinates, peers) other than just his or her supervisor
• Focus of the Appraisal Dimensions

  • Trait-Focused
  • Competency-Focused
  • Task-Focused
  • Goal-Focused
  • Contextual Performance
• Employee Comparisons


  • Rank order
  • Paired comparison
  • Forced distribution method
• Objective Measures


  • Quantity of work
  • Quality of work
  • Attendance
  • Safety
• Ratings of Performance


  • Graphic rating scale
  • Behavioral checklists
  • Comparison with other employees
  • Frequency of desired behaviors
  • Extent to which organizational expectations are met
• Frame-of-reference training


  A method of training raters in which the provided with job-related information, a chance to practice ratings, examples of ratings made by experts, and the rationale behind the expert ratings
• Rater motivation


  Organizationally pressures that compel raters to evaluate ratees positively
• Critical Incidents Method


  • Supervisor records employee's good and behaviors that were observed on the job and determine by a list which constitutes effective and ineffective job performance
  • Grouped by aspects of performance such as job knowledge, decision making ability, leadership, and so on
  • They either keep a running tally of these critical incidents as they occur on the job or recall them at a later time
• Behaviorally Anchored Rating Scales (BARS)


  A combination of the critical incidents and rating-scale methods wherein the points or values are descriptions of behavior
• Forced-Choice Rating Scales


  The same as BARS but the scale points are hidden. The supervisor's choices (the typical behaviors performed by the ratee) then are scored by a member of the personnel department to yield the employee's rating on each dimension
• Mixed-Standard Scales


  Developed by having employees rate job behaviors and critical incidents on the extent to which they represent various levels of job performance: excellent' average or poor
• Behavioral-Observation Scale (BOS)


  The rater must rate the employee on the frequency of critical incidents: never, seldom' sometimes, generally or always
• Common Rating Errors


  • Distribution errors
  • Leniency error
  • Central tendency error
  • Strictness error
  • Halo error
  • Proximity error
  • Contrast errors
• Reasons for Low Reliability Across Raters


  • Committing errors
  • Raters have different standards and ideas
  • Two different raters may see very different behaviors by the same employee
• Sampling Problems


  • Recency Effect
  • Infrequent observations
• Cognitive Processing of Observed Behavior

  • Observation of behavior
  • Emotional state (stress)
  • Bias (affect)
• Most of the time, evaluating employees seldom benefit the supervisor
• Legal Reasons for Terminating Employees

  • Probationary period
  • Violation of company rules
  • Inability to Perform
  • Reduction in Force (Layoff)
• The longer an employee has been with an organization, the greater the number of steps that must be taken to correct her behavior. Progressive discipline provides employees with punishments of increasing severity, as needed, in order to change behavior