IOPS

• Performance Appraisal - is the process of assessing performance to make decisions (for example, about pay raises). The focus is on the administrative use of the information.
• Performance Development - refers to the assessment of performance with the goal of providing feedback to facilitate improved performance. The focus is on providing useful information that employees need to enhance their KSAOs to perform well in a current or future position.
• Performance Management - is the process that incorporates appraisal and feedback to make performance-based administrative decisions and help employees improve.
• APPLICATIONS OF PERFORMANCE APPRAISAL:

  • Personnel Training
  • Wage and Salary
  • Placement
  • Promotion
  • Discharge
  • Personnel Research
• Personnel Training - Perhaps the main use of performance appraisal

  information is for employee feedback; this is the basis for the person analysis discussed in the preceding chapter.
• Deficiencies or weaknesses then become the targets for training
• Personnel Training - Feedback highlights employees’ strengths and weaknesses
• Wage and Salary - Perhaps the second most common use of performance appraisals is to determine raises. Pay increases are often made, in part, on the basis of job performance
• Placement - By identifying the employee’s strengths, performance appraisal indicates where the person’s talents might best be used.
• Promotions - Appraisals identify the better-performing employees, and an employee who cannot perform well on his or her current job will not be considered for promotion
• Discharge - Termination of employment must be predicated on just cause. A typical just cause is inadequate job performance, as determined through performance appraisal
• Supervisors - By far the most common source of performance appraisal is the supervisor rating; Though they may not see every minute of an employee’s behavior, they do see the end result.
• 360-Degree Feedback - A process of evaluating employees from multiple rating sources, usually including supervisor, peer, subordinate, and self. Also called multisource feedback
• Peers - Whereas supervisors see the results of an employee’s efforts, they often see the actual behavior. Peer ratings usually come from employees who work directly with an employee
• Subordinates - Subordinate feedback (also called upward feedback) is an important component of 360 degree feedback, as subordinates can provide a very different view about a supervisor’s behavior
• Halo Errors - are evaluations based on the rater’s general feelings about an employee. The rater generally has a favorable attitude toward the employee that permeates all evaluations of this person.
• Leniency Errors - the rater assesses a disproportionately large number of ratees as performing well (positive leniency) or poorly (negative leniency) in contrast to their true level of performance
• Central Tendency Errors - refers to the rater’s unwillingness to assign extreme—high or low—ratings. Everyone is “average,” and only the middle (central) part of the scale is used
• Graphic rating scales - are the most commonly used system in performance appraisal. Individuals are rated on a number of traits or factors. The rater judges “how much” of each factor the individual has
• Rating scales provide for evaluating employees against some defined standard. With employee-comparison methods, individuals are compared with one another; variance is thereby forced into the appraisals
• Rank-Order Method - the rater ranks employees from high to low on a given performance dimension. The person ranked first is regarded as the “best” and the person ranked last as the “worst.
• Paired-Comparison Method - each employee is compared with every other employee in the group being evaluated. The rater’s task is to select which of the two is better on the dimension being rated
• Forced-Distribution Method - is most useful when the other employee-comparison methods are most limited—that is, when the sample is large. This is typically used when the rater must evaluate employees on a single dimension, but it can also be used with multiple dimensions
• Most recent advances in performance appraisal involve behavioral checklists and scales.
• Behaviors are less vague than other factors
• Critical Incidents - are behaviors that result in good or poor job performance
• BEHAVIORALLY ANCHORED RATING SCALES (BARS)
• Behaviorally Anchored Rating Scales - are a combination of the critical incidents and rating scale methods. Performance is rated on a scale, but the scale points are anchored with behavioral incidents
• BEHAVIORAL OBSERVATION SCALE (BOS)
• Behavioral-Observation Scale - Like BARS, it is based on critical incidents. With this the rater must rate the employee on the frequency of critical incidents. The rater observes the employee over a certain period, such as a month.
• Rater Training - Training provides raters with job related information, practice in rating, and examples of ratings made by experts as well as the rationale behind those expert rating.
• Probationary Period - in many jobs, employees are given a probationary period in which to prove that they can perform well. And most probationary period last three to six months.
• Employees can also be terminated for an inability to perform a job. An organization will need to prove that the employee could not perform the job.
• Violation of Company Rules - There are five factors in determining the legality of a decision to terminate an employee
• Reduction in Force (Layoffs) - employees can be terminated if it is in the best economic interests of an organization to do so
• Transfer - Takes place when an employee is moved from one job to another of equivalent rank or of the same pay class within the firm.

  • The reassignment of an employee to a job with similar pay, status, duties and responsibilities or to another work shift, or from one unit to another in the same company
• Permanent - made to fill vacancies requiring the special skills or abilities of the employee being transferred.
• Temporary - made due to the temporary absence of an employee, e.g., in case of sick, leave, vacation leave, or shifts in the work load during peak periods.
• Promotion - Is the movement of the employee from one position to another of a higher level involving more difficult duties and greater responsibilities and carrying higher pay, higher status and/or offer privilege.
• Closed promotion system - the responsibility of the supervisor to identify promotable employees for the job to be filled.