OP - Group 3

Group 3
CRITERION
MEASUREMENT &
APPRAISAL
PERFORMANCE
PRESENTATION
THẢO MY
CHAPTER 4 CRITERION MEASUREMENT
TABLE OF CHAPTER 5 PERFORMANCE APPRAISAL

CONTENTS
CASE
CASE
PHƯƠNG LINH
CRITERION MEASUREMENT
What they are?
WHY THEY ARE How they are developed?

IMPORTANT?
How they are evaluated?
What they are used for?
CHAPTER 4 CHAPTER 5 CASE

PHƯƠNG LINH
THE CRITERION PROBLEM
• Human behavior and organizational performance are complex
• Performance criteria vary based on organizational needs and

decisions
• Continued development and refinement of criteria are essential

for improving organizational performance evaluation and
decision-making processes

PHƯƠNG LINH
DEFINING CRITERIA AND THEIR PROPERTIES
• Different standards lead to different opinions
• If these standards are wrong, it can lead to bad decisions
• Criterion play a pivotal role in various aspects such as performance appraisal,
training assessment, and selection validation
• Performance is a big deal at work
ULTIMATE ACTUAL CRITERIA FOR

CRITERION CRITERION THE CRITERIA

PHƯƠNG LINH
Typing speed
Typing quality
CRITERION MEASUREMENT Filing efficiency
Interactions with clients
ULTIMATE CRITERION
• The ultimate measure of how well someone does at their job

The ultimate criterion for
includes everything that leads to success.
an administrative assistant’s job
• It's really complicated and hard to figure out in detail.
A theory to help us understand what makes someone good at their
Creativity
job, rather than a specific way to measure how successful they are Written communication
Oral communication
Procedural adherence
Computer skills

PHƯƠNG LINH
ACTUAL CRITERION
• The actual criterion refers to the specific

measurable variables or indicators used to
assess performance in a given context.
• Unlike the ultimate criterion, which represents

an ideal or aspirational standard, the actual
criterion involves tangible, observable, and
quantifiable aspects of performance that can be
directly assessed and evaluated.
CASE

PHƯƠNG LINH
CRITERIA FOR THE CRITERIA
• The "criteria for the criteria" refers to the standards or guidelines used to determine the suitability,
validity, and effectiveness of the criteria being utilized in a particular context.
• Basically, it involves evaluating the quality and appropriateness of the criteria themselves.
5 MOST FUNDAMENTAL OF THESE CRITERIA FOR THE CRITERIA
RELEVANCE RELIABILITY SENSITIVITY PRACTICALITY FAIRNESS

ĐĂNG KHOA
TWO MAJOR COMPONENTS OF THE
CRITERION PROBLEM
Multiple Versus Dynamic Criteria

Composite Criteria
• Psychological • Complicating the criterion problem

Customers
understanding:
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Understand the relationship between because it makes predicting future
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predictors and performance performance more difficult. mauris, facilisis sed molestie in, vulputate at
• Economic decision-making: Combining
the criteria into a single score for
practical HR decisions
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CHAPTER 4 CHAPTER 5 CASEmauris, facilisis sed molestie in,

DISTINCTIONS AMONG ĐĂNG KHOA
PERFORMANCE CRITERIA
Peers
OBJECTIVE Strength
CRITERIA • Clear and Measurable
• Standardized
Used to evaluate employee
performance and while they are
generally less subjective than other
methods, they are not entirely free Weakness
from judgment and can be limited
• Limited Scope
by external factors.
• External Factors

SUBJECTIVE Peers or rankings by

• Involve ratings
CRITERIA supervisors, coworkers, or
subordinates
Based on judgments and evaluations • More susceptible to biases of the
of others, are a valuable alternative raters than objective criteria
to objective criteria when the latter
are insufficient. • Despite limitations, subjective
criteria are widely used, with efforts
made to minimize bias

• Including behaviors like helping
Peers
CONTEXTUAL colleagues, going the extra mile, and
supporting the organization
PERFORMANCE • Contextual performance can have both
positive (social capital) and negative
Encompassing behaviors beyond (overload, stress) effects.
core job duties, is a valuable • Research suggests including contextual
addition to traditional task-based performance for a more comprehensive
performance criteria
understanding of employee effectiveness

ANH TUẤN
PERFORMANCE
MANAGEMENT AND
APPRAISAL
Systematic review, evaluation,
performance feedback
CHAPTER 5
ANH TUẤN
USES & DISADVANTAGES
Make important Feelings of inequity

personnel decisions
Developmental
USES DISADVAN Legal suits
purposes
Documentation of
Disgruntled
organizational decisions
employees

ANH TUẤN
I/O PSYCHOLOGY IN
PERFORMANCE APPRAISAL
Purpose
01 To develop and implement performance appraisal systems
Responsibility Research questions

Rating scale
02 Objective goal setting 03 Rater errors
Continuous coaching and feedback
Performance appraisal Rater training
Developmental planning Variables
Organizational culture

THẢO VÂN
RATING
FORMAT
When it comes time for an
evaluator to appraise
s o m e o n e ’s p e r f o r m a n c e , p e o p l e
will use some types of rating
form.

THẢO VÂN
Graphic Rating Scales Graphic rating scales are among the oldest formats used in
the evaluation of performance.
Behaviorally Anchored
Provide actual behavioral descriptions as anchors along
Rating Scales
the scale.
Raters are asked to read a large number of behavioral

Checklists statements and to check off each behavior that the
employee exhibits.
RATING
FORMAT
Employee Comparison
Procedures Evaluation of ratees with respect to how they measure up to
or compared with other.
Evaluation of the
Various Alternative How personality and format may impact performance
Methods ratings.

THẢO VÂN
RATING ERRORS
E v a l u a t i n g a n o t h e r i n d i v i d u a l ’s
performance accurately and fairly is
not an easy thing to do.

THẢO VÂN
Cognitive Processes Halo Leniency
• Integrate those performance incidents into

• The mean of their ratings across ratees is
a comprehensible whole. A rater’s tendency to use the global
higher than the mean of all ratees across
• Arrive at an overall evaluation. evaluation of a ratee in making dimension-
all raters.
• Endorse a number or category that specific ratings for that ratee.
• Or the mean of their ratings is higher
represents the employee’s performance
than the midpoint of the scale.
over that period.

THẢO VÂN
RATING ERRORS
Central Tendency Severity Other Errors
Raters who use only the midpoint of the Raters who tend to use only the low end • Recency error.
scale in rating their employees commit the of the scale or to give consistently lower
• First impression error or primacy effect.
ratings to their employees than other
error of central tendency.
raters do. • The similar-to-me error.

THẢO VÂN
An important question asked by I/O researchers and

01 practitioners alike is whether rater training can reduce
such errors and improve the rating process.
RATER
TRAINING

HOÀNG NGÂN
CONTEMPORARY PERFORMANCE
APPRAISAL RESEARCH
• Has shifted towards understanding the social context of the appraisal process.
• Key areas of focus include evaluating systems based on employee reactions,

examining the impact of supervisor-subordinate relationships, and
understanding organizational politics.
• Trust, multiple feedback sources, and employee involvement are recognized

as crucial elements in successful performance appraisals.

HOÀNG NGÂN
CONTEMPORARY PERFORMANCE
APPRAISAL RESEARCH
• Reaction criteria, emphasizing raters' and ratees' responses, are essential for
evaluating appraisal system effectiveness.
• The supervisor-subordinate relationship, particularly highlighted by Leader-

Member Exchange theory, plays a significant role in performance ratings
and employee reactions.
• Overall, recognizing and understanding the dynamics of social contexts

within performance appraisals are vital for enhancing their effectiveness in
organizations.

ORGANIZATIONAL POLITICS: HOÀNG NGÂN
INFLUENCES APPRAISAL PROCESS THROUGH PERSONAL

AGENDAS.
Trust: Crucial for accurate ratings.
Rater Goals and Accountability: Impact evaluations, compromising accuracy.
Multisource Feedback: Offers comprehensive performance insights.
Development: Continuous feedback fosters growth.
Participation: Enhances satisfaction and motivation.
Knowledge of the Appraisal System: Understanding leads to better outcomes.

EXAMPLE CASE
ORGANIZATIONAL POLITICS: HOÀNG NGÂN
ORGANIZATIONAL POLITICS:
• A MANAGER MAY INFLATE RATINGS FOR THEIR FAVORED EMPLOYEES
INFLUENCES APPRAISAL PROCESS THROUGH PERSONAL
TO GAIN PERSONAL FAVOR.
AGENDAS.
• Trust: When employees believe in the fairness of the process, they're more likely to accept feedback.
• Rater Goals and Accountability: A supervisor may give inflated ratings to avoid conflict or meet department targets.
• Multisource Feedback: Gathering input from peers, subordinates, and supervisors provides a holistic view of
performance.
• Development: Regular feedback sessions help employees identify areas for improvement and enhance their skills.
• Participation: Employees who have a say in their evaluations tend to feel more invested in the process.
• Knowledge of the Appraisal System: An employee who understands how ratings are determined may be more open to
feedback and constructive criticism.

THẢO MY
MB BANK
Military bank
Since 4/11/1994
Joint stock commercial bank

THẢO MY
MB BANK
9,986 employees
26,200 billion VND
The charter capital exceeded

52.141 trillion VND

THẢO MY
Fields of operation
Bank
Securities
Fund management
Asset management
Insurance
Consumer finance

THẢO MY

THẢO MY
pioneering
innovative
solidary core values

discipline
dedicated
THẢO MY

THẢO MY
CUSTOMER TARGET
Individuals
Small and Medium-sized Enterprises (SMEs)
Large Corporations.
Government and Institutional Clients
International Clients

THẢO MY
COMPETITORS
Vietcombank
VietinBank
BIDV
Techcombank
ACB
VPBank
Sacombank
TPBank
Agribank
Eximbank
THẢO MY
STRENGTHS
Effective Brand Awareness
Differentiation
Online and Mobile Banking

THẢO MY

THẢO MY
THẢO MY
THẢO MY
HIGH BAD
DEBT
High Non-
Performing Loans
(NPLs)

THẢO MY
OPPORTURNITY
GOVERMENT TRANSPARENT INCREASED DEMAND

POLICY LENDING LAWS FOR LOANS
Decision No. 1813/QD-
TTg

THẢO MY
INFLATION
THREATS COMPETITVE MARKET
TECHNOLOGY RISK

HỒNG NHUNG
Objective Criteria
Subjective Criteria
Contextual Performance

HỒNG NHUNG
OBJECTIVE
CRITERIA Financial Targets
Customer Satisfaction Operational Metrics
• Loan disbursement • Net Promoter Score • Transaction numbers

targets (NPS) • Processing time
• Deposit targets • Customer satisfaction • Error rate
• Revenue targets surveys
HỒNG NHUNG
OBJECTIVE
CRITERIA Compliance and Risk Sales and Marketing Efficiency Metrics
Management Objectives
• Audit results • New accounts opened • Cost-efficiency ratios
• Compliance • Products sold • Staff productivity
violations

HỒNG NHUNG
SUBJECTIVE CRITERIA
ADAPTABILITY
PROBLEM-SOLVING COMMUNICATION
AND
SKILLS SKILLS
FLEXIBILITY

HỒNG NHUNG
CONTEXTUAL PERFORMANCE
Why it is Helping and Assessment Center

Volunteering for Human Resource
Following
important? cooperating with Method
extra duties Accounting
organizational
others rulesMethod
and
procedures

TRÀ MY
PERFORMANCE APPRAISAL
Behaviorally Anchored Rating
Scales
Objectives and Key

Results
Forced Distribution Method

BEHAVIORALLY ANCHORED RATING SCALES
For customer service staff
Attentive to customer needs Provides exceptional experiences
and provides basic to customers by surpassing
information and solutions expectations and offering
to their problems. innovative and convenient
solutions.
Poor Good
Performance Performance
Not attentive to customer needs Understands customer

and provides basic information needs well and provides
and solutions to their problems. professional and
accessible solutions.

OBJECTIVES AND KEY RESULTS
For customer service staff
Increase customer satisfaction rating to 90% in the quarter

Key result
Improve the quality of

customer service and
Reduce customer waiting time at the counter to less than 5 minutes on
support customer average
Key result
Objectives
Increase customer complaint resolution rate to 95% within 24 hours
Key result

FORCED DISTRIBUTION METHOD
Each quarter
Top tier 10
Second tier 20
Mid tier 35
Low tier 30
Bottom tier 5
FORCED DISTRIBUTION METHOD
Note
Each employee is evaluated based on their
performance in areas such as customer service
quality, achievement of business goals, teamwork
and other criteria.

Group 3
THANK YOU
FOR YOUR ATTENTION

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Group 3

CHAPTER 4 CRITERION MEASUREMENT

TABLE OF CHAPTER 5 PERFORMANCE APPRAISAL

What they are?

WHY THEY ARE How they are developed?

What they are used for?

CHAPTER 4 CHAPTER 5 CASE

• Performance criteria vary based on organizational needs and

• Continued development and refinement of criteria are essential

CHAPTER 4 CHAPTER 5 CASE

ULTIMATE ACTUAL CRITERIA FOR

CHAPTER 4 CHAPTER 5 CASE

• The ultimate measure of how well someone does at their job

CHAPTER 4 CHAPTER 5 CASE

• The actual criterion refers to the specific

• Unlike the ultimate criterion, which represents

CHAPTER 4 CHAPTER 5 CASE

5 MOST FUNDAMENTAL OF THESE CRITERIA FOR THE CRITERIA

RELEVANCE RELIABILITY SENSITIVITY PRACTICALITY FAIRNESS

CHAPTER 4 CHAPTER 5 CASE

Multiple Versus Dynamic Criteria

• Psychological • Complicating the criterion problem

Lorem ipsum dolor sit amet, conse

CHAPTER 4 CHAPTER 5 CASEmauris, facilisis sed molestie in,

CHAPTER 4 CHAPTER 5 CASE

SUBJECTIVE Peers or rankings by

CHAPTER 4 CHAPTER 5 CASE

CHAPTER 4 CHAPTER 5 CASE

Make important Feelings of inequity

CHAPTER 4 CHAPTER 5 CASE

Responsibility Research questions

CHAPTER 4 CHAPTER 5 CASE

CHAPTER 4 CHAPTER 5 CASE

Raters are asked to read a large number of behavioral

CHAPTER 4 CHAPTER 5 CASE

performance accurately and fairly is

not an easy thing to do.

CHAPTER 4 CHAPTER 5 CASE

Cognitive Processes Halo Leniency

• Integrate those performance incidents into

CHAPTER 4 CHAPTER 5 CASE

Central Tendency Severity Other Errors

CHAPTER 4 CHAPTER 5 CASE

An important question asked by I/O researchers and

CHAPTER 4 CHAPTER 5 CASE

• Key areas of focus include evaluating systems based on employee reactions,

• Trust, multiple feedback sources, and employee involvement are recognized

CHAPTER 4 CHAPTER 5 CASE

• The supervisor-subordinate relationship, particularly highlighted by Leader-

• Overall, recognizing and understanding the dynamics of social contexts

CHAPTER 4 CHAPTER 5 CASE

INFLUENCES APPRAISAL PROCESS THROUGH PERSONAL

Trust: Crucial for accurate ratings.

Rater Goals and Accountability: Impact evaluations, compromising accuracy.

Multisource Feedback: Offers comprehensive performance insights.

Development: Continuous feedback fosters growth.

Participation: Enhances satisfaction and motivation.

Knowledge of the Appraisal System: Understanding leads to better outcomes.

CHAPTER 4 CHAPTER 5 CASE

CHAPTER 4 CHAPTER 5 CASE

Joint stock commercial bank

CHAPTER 4 CHAPTER 5 CASE

26,200 billion VND