|

 ||








 

`
 | 




‡ To encourage high levels of worker motivation
and performance by letting workers know:
± The extent to which they are contributing the
appropriate level of inputs to their jobs and to the
organization.
± The extent to which they are focusing their inputs in the
right 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.
g

ansert Figure 8.2 here

Ú

   


‡ 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.
‡ anformal appraisals help ensure
that formal appraisals do not yield
any ³surprises.´
6

  

   





‡ When þ
þ 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.
d

  

   




 
‡ When Ä

  are used to assess
performance, the focus is on the actual
behaviors or actions a worker displays on
the job.
‡ The main disadvantage of this approach is
that sometimes the 
 level of
performance can be achieved through
 þ behaviors.
~

  

   






‡ When  þ 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¶s
control.
± Workers may become so results oriented that
they engage in unethical behaviors or fail to
engage in OCBs.
©

 
  


‡ V


are based
on facts and are used
primarily when results are the
focus of performance
appraisal.
‡ 


are
based on individuals¶
perceptions and can be used
for appraisals based on traits,
behaviors, and results.


 

 


‡ `  
 
assess the performance of a worker
along one or more continua with clearly specified intervals.
± Disadvantage: Different raters may disagree about the meaning
of the scale points.
‡     
 
(BARS) attempt to
overcome the disadvantages of graphic scales by providing
careful definitions of what each scale point means.
± Disadvantage: Sometimes workers exhibit behaviors
corresponding to more than one point on the scale.
‡   
 
 
overcome the problem with
BARS by describing specific behaviors and asking raters to
indicate the frequency with which a worker performs the
behaviors.
± Disadvantage: Even more time-consuming than BARS to
complete.


 
| 

‡ an 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



| 



(Table 8.1)
A type of schema built around some
  distinguishing, often highly visible
characteristic such as race, gender,
or age.
|
 The initial pieces of information
that people have about a person

have an inordinately large effect on
how that person is perceived.
 
 People¶s perceptions of a person are
influenced by their perception of

others in an organization.
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.
A subordinate who made a good first impression
on his supervisor receives a better performance
appraisal than he deserves.
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.



| 



(Table 8.1)


 People¶s general impressions of a A subordinate who has made a good overall
person influence their perceptions impression on a supervisor is appraised as
 on specific dimensions. performing high-quality work and always
meeting deadlines although this is not true.


  People perceive others who are A supervisor gives a subordinate who is similar
similar to themselves more to her a more positive performance appraisal
  positively than they perceive those than the subordinate deserves.
who are dissimilar.


 When rating their subordinates¶ An exceptionally high-performing secretary

performance, some supervisors receives a mediocre performance appraisal


tend to be overly harsh, some overly because his supervisor is overly harsh in rating

 lenient. Others tend to rate everyone everyone.
 as about average.

  Perceptions of a person are A programmer who scored highly on cognitive

influenced by knowing the person¶s and numerical ability tests receives a more
|  standing on a predictor of positive performance appraisal than she

 performance. deserves.
g


| 



(Table 8.1)


  People perceive others who are Supervisors rate subordinates who are similar
similar to themselves more to them more positively than they deserve.
 
positively than they perceive those
who are dissimilar.


 Some perceivers tend to be overly When rating subordinates¶ performances, some
harsh in their perceptions, some supervisors give almost everyone a poor rating,


overly lenient. Others view most some give almost everyone a good rating, and

 targets as being about average. others rate almost everyone as being about
 average.

  Knowing how a target stands on a A professor perceives a student more positively
predictor of performance influences than she deserves because the professor knows
| 
perceptions of the target. the student had a high score on the SAT.
Ú

 


‡ Use frequent, informal performance appraisals and periodic formal
ones to help motivate your subordinates and to make decisions about
how to distribute outcomes, whom to promote, and how to assign
tasks. anformal 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 be
related 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 in
high levels of motivation and performance and in good decisions.
6

|


 
  

‡ 
   suggests that to encourage the
learning of desired organizational behaviors, positive
reinforcers or rewards should be distributed to workers
contingent on performance.
‡   suggests that when pay is contingent on
performance, workers are motivated to perform to help
satisfy their needs.
‡ 
  takes into account the fact that pay is
an outcome that has high valence for most workers and
that instrumentality must be high for motivation to be high.
‡ 
  indicates that outcomes should be
distributed in proportion to inputs.
‡ | 


  suggests that the methods to
evaluate performance and distribute pay need to be fair.
d

|
|

‡ |
|
 A plan that bases pay
entirely on an individual¶s performance.
± Tend to be used most heavily at the upper
levels in organizations.
‡ Merit pay issues:
± Should merit pay be based on individual, group,
or organizational performance?
± Should merit pay be in the form of a salary
increase or a bonus?
~

|
 

‡ When individual performance can be accurately
assessed, the maximum motivational impact is
obtained from basing pay on individual
performance.
‡ When workers are highly interdependent and
individual performance levels cannot be accurately
assessed, a group or organization-level pay-for-
performance plan is preferable.
‡ When organizational effectiveness depends on
individuals working together, group or
organization-based pay-for-performance plans may
be more appropriate than individual-based plans.
©

|
 
 
‡ Bonus plans tend to have a greater impact on
motivation than salary plans, for three reasons.
‡ An individual¶s salary level is based largely on factors
not related to current performance.
‡ Current salary increases may be only partially based on
performance, whereas bonuses can be tied directly and
exclusively to performance.
‡ Organizations rarely cut salaries, so salary levels across
workers tend to vary less than performance levels.
Bonuses can vary considerably from time period to time
period and worker to worker, depending on performance
levels.


 |
|

‡ Piece-rate plan
‡ Commission pay plan
± Full commission plan
± Partial commission plan
‡ Gain-sharing plan
± Scanlon plan
± Profit sharing plan
  


‡ To have high levels of motivation, pay should
be based on performance whenever possible.
‡ When individual performance can be appraised
accurately and cooperation across workers is
adequate, pay should be based on individual
levels of performance to maximize motivation.
‡ When individual performance cannot be
appraised or when a higher level of cooperation
across workers is necessary, pay should be
based on group or organizational performance.