Gathering Performance Information:

Overview

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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Major Components of Appraisal Forms (1)

Basic Employee Information
Accountabilities, Objectives, and Standards
Competencies and Indicators
Major Achievements and Contributions
Stakeholder Input
Employee Comments
Signatures
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(could
be included in a separate form)
Developmental Achievements
Developmental
Needs
Plans
Goals

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Desirable Features for All Appraisal Forms

Simplicity
Relevancy
Descriptiveness
Adaptability

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Comprehensiveness
Definitional Clarity
Communication
Time Orientation

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Determining Overall Rating

Judgmental strategy
Mechanical strategy

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Appraisal period
Number of Meetings
Annual
Semi-annual
Quarterly

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When Review Is Completed

Anniversary date
Supervisor doesnt have to fill out forms at 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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6 Types of Formal Meetings

(can be combined)

System Inauguration
Self-Appraisal
Classical Performance Review
Merit/Salary Review
Development Plan
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
Best position to evaluate performance vs. strategic
goals
Make decisions about rewards

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

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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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Customers (external and internal)

Advantages
Employees become more focused on meeting
customer expectations

Disadvantages
Time
Money

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Disagreement Across Sources

Expect disagreement
Ensure employee receives feedback by
source
Assign differential weights to scores by
source, depending on importance

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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 & Negative
Consequences

Expected Positive and

Negative Consequences of
Rating Distortion

Rating Behavior

Motivation to Distort Ratings

Probability of Experiencing
Positive & 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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Prevent 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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Information - how the system works

Reasons for implementing the performance
management system
Information on the appraisal form and system
mechanics

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Motivation Whats 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, 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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