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Chapter 7 – HR

Functions of Performance Appraisals
performance feedback, training & development, decision making tools, evaluation of training/policies/programs, validation of selection process
a supervisor must uphold/enforce standards
– formal or informal
Sandwich Method
compliment > point out problem > give suggestion > compliment
what are some errors that can occur during a performance appraisal that can damage validity and reliability?
construct validity
content validity
inter-rater reliability
construct validity
measure what they claim to measure
content validity
measure the entire issue, not just one aspect or few parts of it
inter-rater reliability
how 2 or more raters match on their ratings
note each instance in an evaluation. not just one or two instances
what are some bias errors in performance evaluations?
leniency, severity, central tendency, recency, past anchoring, halo
leniency error
more lenient than employees deserve; rates employees too positively
severity error
error in performance where employee rating are too severe
central tendency error
performance appraisal or interview results when managers or interviewers rate all or most employees as average
base review on recent incidences
past anchoring
rate similar to previous ratings
based on a single positive trait
what are the 3 principal types of appraisal rating systems?
trait based
behavior based
results based
trait based
rate by personal characteristics – loyalty, communication skills, teamwork
behavior based
friendliness to guests, helpfulness, teamwork – those that relate directly to what you need to do on the job
results based
rates employees accomplishments – sales & profits goals, patient/customer satisfaction, improved health status, projects successfully completed
who would be involved in a 360 degree evaluation?
those you supervise
360 degree evaluation process
a survey with rating (scale) questions on the employee behaviors & abilities (quantitative)
-may include essay/comment questions (qualitative)
-four to ten raters will evaluate the employee
– each category score will be averaged
-employee can compare his score to the other people who rated him/her
recommendations for implementing a 360 degree appraisal system
-must be anonymous except for raters position
-wide range of raters reduces chances of biasing or knowing how they rated the person
-raters must have “history” with person being rated
-should be scored by an outside expert even though this adds to the cost
-follow up and a development plan are essential for success
-narrative mixed in with numerical ratings is ideal
what are the 3 ranking methods of performance appraisals?
simple/straight ranking
alternative ranking
paired comparisons
simple/straight ranking
rate employees from best to worse based on a couple criteria
alternative ranking
rate employees for each of the different criterion choosing best, worst, second-best, second-worst, and so on.
paired comparisons
compare employee with other employees for each criterion
what are the methods of performance appraisal?
forced distribution, graphic rating scale, behaviorally anchored rating scales, behavioral observation scale, narrative essays, critical incidents, management by objectives (MBOs)
performance improvement plan (PIP)
is designed to facilitate constructive discussion between a staff member and his/her supervisor & to clarify the work performance to be improved
for MBOs to be effective…
1. individual managers must understand the specific objectives of their job
2. individual managers must understand how those objectives fit in with the overall company objectives set by the board of directors
when writing MBOs objectives must be…
specific, measurable, attainable, focused on a result, not an activity, related to time (S-M-A-R-T)
MBOs steps for management by objectives:
1. employee proposes goals that support the organizations objectives
2. employee & supervisor jointly agree on objectives
3. ” ” jointly agree on methods of accomplishing objectives
4. ” ” agree on how objectives fit into other organizational plans
5. employee set times for completion of objectives
6. employee and supervisor meet to review whether accomplished objectives are thoroughly covered
steps for meeting/evaluating MBOs
1. collect & evaluate the data you will need to determine what it will take to complete each component of your MBO plan
2. implement your MBO plans
3. check the progress/continue to collect & evaluate your MBOs, adjusting as needed
4. measure the effectiveness/final results of your plan
5. give final report on your MBOs to superiors
when do you do performance reviews?
annually, semi-annually, quarterly, continuous feedback, after specific projects
conducting an effective performance review
-employees & managers design system
-establish performance appraisal objective in advance
-provide feedback but avoid personal feedback
-listen first; talk later
-be positive first; negative second
-probe first; describe later
-train employees on giving performance reviews
critical incident
technique based on capturing & recording actual events that occur at work & form an accurate picture of a jobs requirements
graphic rating scale
rating system in which appraisers rate employees on specific measurable criteria
halo error
error in appraisal or interview that results when managers or interviewers rate employees based on a single positive attributes
management by objective (MBO)
appraisal system in which managers meet with each employee to set goals; both meet later to assess the extent to which the goals were met
narrative essay
rating system in which an essay is written that describes strengths & weaknesses of each employee

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