Reward & Appraisals[1]

8/3/2019 Reward & Appraisals[1]

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PERFORMANCE APPRAISALS



Goals of Performance Appraisal

To encourage high levels of worker motivationand performance by letting workers know:

± The extent to which they are contributing theappropriate level of inputs to their jobs and to theorganization.

± The extent to which they are focusing their inputs in theright direction on the right set of tasks.

To provide accurate information to be used in

managerial decision making. Examples: ± Distributing outcomes like pay and promotions.

± Assigning tasks to individuals.

± Redesigning jobs.

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Insert Figure 8.2 here



Choosing the Mix of Appraisals Organizations should rely on both

formal and informal performance

appraisals.

The formal appraisal ensures that

performance gets assessed

periodically along the dimensions

important to an organization.

Informal appraisals help ensure

that formal appraisals do not yield

any ³surprises.´

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Choosing What Factors to Evaluate:

Traits When traits are used to assess performance,

personal characteristics that are deemed relevant

to job performance are evaluated. Disadvantages to this approach:

± Traits alone are often poor predictors of performance.

± Trait-based appraisal systems may be considered

discriminatory.

± The use of traits does little to motivate workers because

it focuses on characteristics that cannot be changed in

the short term, if at all.

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Behaviors

When behaviors are used to assess performance, the focus is on the actual behaviors or actions a worker displays onthe job.

The main disadvantage of this approach is

that sometimes the same level of performance can be achieved throughd iff er ent behaviors.

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Results When r e sults are used to assess performance,

the focus is not on what workers do on the

job but on the effects of their behaviors or their actual output.

The main disadvantages of this approach:

± Sometimes results are not under a worker¶scontrol.

± Workers may become so results oriented thatthey engage in unethical behaviors or fail toengage in OCBs.

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Choosing the

Method of Appraisal

Objective measuresObjective measures are basedon facts and are used

primarily when results are thefocus of performanceappraisal.

Subjective measures Subjective measures are

based on individuals¶ perceptions and can be usedfor appraisals based on traits, behaviors, and results.

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Types of Subjective Measures

G raphic rating scales assess the performance of a worker along one or more continua with clearly specified intervals.

± Disadvantage: Different raters may disagree about the meaningof the scale points.

Behaviorally anchored rating scales (BARS) attempt to

overcome the disadvantages of graphic scales by providingcareful definitions of what each scale point means.

± Disadvantage: Sometimes workers exhibit behaviorscorresponding to more than one point on the scale.

Behavioral observation scales overcome the problem withBARS by describing specific behaviors and asking raters toindicate the frequency with which a worker performs the

behaviors.

± Disadvantage: Even more time-consuming than BARS tocomplete.

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Who Appraises Performance In most organizational settings, supervisors are

responsible for performance appraisal because

± They are the most familiar with their subordinates¶ behavior.

± They are responsible for motivating subordinates to perform at acceptable levels.

Other possible sources for performance appraisal:

± Self-appraisal

± Peer appraisal ± Subordinate appraisal

± Customer/client appraisal

± 360-degree appraisal

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Biases in Performance Appraisal(Table 8.1)

Primacy

Eff ects

The initial pieces of information

that people have about a person

have an inordinately large effect on

how that person is perceived.

A subordinate who made a good first impression

on his supervisor receives a better performance

appraisal than he deserves.

Contrast

Eff ect

People¶s perceptions of a person are

influenced by their perception of

others in an organization.

A subordinate¶s average level of performance is

appraised more harshly than it should be by her

supervisor because all the subordinate¶s

coworkers are top performers.

StereotypesA type of schema built around some

distinguishing, often highly visible

characteristic such as race, gender,

or age.

A 35-year-old supervisor gives a 60-year-old

engineer a negative performance appraisal that

indicates that the engineer is slow and unwilling

to learn new techniques although this is not

true.

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Halo

Eff ect

People¶s general impressions of a

person influence their perceptions

on specific dimensions.

A subordinate who has made a good overall

impression on a supervisor is appraised as

performing high-quality work and always

meeting deadlines although this is not true.

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Similar-to-me Eff ect

People perceive others who are

similar to themselves more

positively than they perceive those

who are dissimilar.

A supervisor gives a subordinate who is similar

to her a more positive performance appraisal

than the subordinate deserves.

Harshness,

Leniency, and

AverageTendency

When rating their subordinates¶

performance, some supervisors

tend to be overly harsh, some overly

lenient. Others tend to rate everyoneas about average.

An exceptionally high-performing secretary

receives a mediocre performance appraisal

because his supervisor is overly harsh in rating

everyone.

K nowledge

of Predictor

Bias

Perceptions of a person are

influenced by knowing the person¶s

standing on a predictor of

performance.

A programmer who scored highly on cognitive

and numerical ability tests receives a more

positive performance appraisal than she

deserves.



Similar-to-

me Eff ect

People perceive others who are

similar to themselves more

positively than they perceive those

who are dissimilar.

Supervisors rate subordinates who are similar

to them more positively than they deserve.

Harshness,

Leniency, and

Average

Tendency

Some perceivers tend to be overly

harsh in their perceptions, some

overly lenient. Others view most

targets as being about average.

When rating subordinates¶ performances, some

supervisors give almost everyone a poor rating,

some give almost everyone a good rating, and

others rate almost everyone as being about

average.

K nowledge

of Predictor

Knowing how a target stands on a

predictor of performance influences

perceptions of the target.

A professor perceives a student more positively

than she deserves because the professor knows

the student had a high score on the SAT.

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Advice to Managers

Use frequent, informal performance appraisals and periodic formalones to help motivate your subordinates and to make decisions abouthow to distribute outcomes, whom to promote, and how to assigntasks. Informal appraisals can be used to motivate and give feedback on a day-to-day basis.

Performance appraisals should focus on the assessment of behaviors or results. Performance appraisals should not focus on the assessment of traits, for traits can be difficult to assess objectively and may not berelated to actual job behaviors or performance.

Be aware that one or more perception problems may influence your appraisal of a person¶s performance. Carefully and honestly examine

your evaluations to be sure that personal biases have not affected your judgments.

Develop and use performance measures that accurately assess behaviors or results. Only accurate performance appraisals result inhigh levels of motivation and performance and in good decisions.

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Reward & Appraisals[1]

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