Performance Appraisal and Management Lecture Notes

VOCABULARY flashcards covering the definitions, psychological biases, and measurement methods associated with performance appraisal and management systems.

Performance Appraisal (PA)

A formal process in which an employee's actual performance is evaluated against performance standards within an organization, typically occurring semi-annually or annually.

Performance Management

The process of creating a work environment in which people can perform to the best of their abilities.

Performance Evaluations

The result of a biannual process in which a manager evaluates an employee's performance based on goals aligned with organizational objectives.

Encoding

A step in the psychology of rating that involves processing behavioral information to prepare it for memory storage.

Attentional Errors

Errors that affect the initial observation of behavior during the performance appraisal cycle.

Halo/Horn Bias

A psychological error where an overall judgment of an individual (positive or negative) influences the rating of specific performance dimensions.

First/Last Impression Bias

Errors in judgment based on the initial or most recent behaviors observed rather than the entire performance period.

Leniency/Strictness Bias

A distribution error where a rater is consistently too easy or too harsh in their evaluations of all subordinates.

Central Tendency Bias

A distribution error where a rater avoids extreme scores and rates all employees near the middle or average of the scale.

Similar-to-me (Clone) Error

A bias that occurs when a manager gives more favorable ratings to employees who share similar characteristics or backgrounds with the manager.

Spillover Error

An error where past performance ratings continue to influence the evaluation of an employee in the current cycle.

Behavioral Approach

A method of measuring job performance that focuses on specific actions as direct indicators of performance, though it can be difficult to assess.

Outcomes/Result Approach

A method that examines the final results of behavior; it is an easy-to-assess but more distant indicator of performance.

Trait Methods

Performance evaluation methods based on employee characteristics that continue to be used despite being prone to biases.

Ranking Method

A performance measurement technique where employees are compared against one another and placed in an order of performance.

Forced Distribution

A measurement method that requires raters to assign a specific percentage of employees to predetermined categories (e.g., top, middle, or bottom tier).

Graphic Rating Scale

A behavioral approach method used to provide action-oriented information during the evaluation process.

Management by Objectives (MBO)

An evaluation method focused on measurable contributions and the attainment of specific results.