Performance Appraisal/Evaluation
...are useful tools for evaluating the work of employees but also for developing & motivating employees
Performance Appraisal Objectives
•To determine who should be promoted, demoted, transferred, or terminated
•To determine who needs formal training and development opportunities
•To use as opportunities for individuals as a reward whose appraisals were positive
•To motivate and to improve performance
Formal Appraisals
....usually occur at specified time periods once or twice a year
Informal Appraisals
...can occur whenever the supervisor feels communication is needed
Frequency of Performance Appraisals
Traditionally most organizations recommend that performance appraisals be done every 6 months to at least one year for employees
Types of Performance Appraisal Methods/Techniques
Checklists
Graphic Rating Scale
Forced Choice Scale
Critical Incident Method
BARS-Behaviourally Anchored Rating Scales
Paired Comparisons
Management By Objectives…
Common Problems with Unsuccessful Performance Appraisals/Evaluation Systems
Poorly defined appraisal systems
Poorly communicated appraisal systems
Inappropriate appraisal systems
Unmonitored appraisal systems
Perceptual Errors in Evaluation
Halo Effect
Stereotyping
Attributions
Recency Effects
Leniency/Strictness Errors
Central Tendency Errors
Halo Effect
...-rater allows one trait to override a realistic appraisal of other traits of an employee
An employee may be evaluated as a good performer-not because of actual performance- but because of the halo effect
Stereotyping
...-rater places an employee into a class or category based on one or a few traits
This perceptual error can negatively impact the overall appraisal process
Attributions
...-rater assigns causation for someone’s behaviour
This perceptual error can affect the validity of a performance evaluation based on the attributions the rater makes about an employee’s Behaviour
Recency Effects
...-rater evaluates performance using information that occurred most recently
In essence, a supervisor evaluates an employee’s most recent behaviour
Leniency/Strictness Errors
...-rater tends to use one of the extremes of a rating scale
This includes either very favourable ratings though unwarranted by an employee’s performance
Strictness Errors- the opposite occurs, when a rater inaccurately evaluates most employees unfavorably
Central Tendency Errors
...-rater avoids the extremes of performance scale & evaluates most employees somewhere down the middle of a scale
The result is that most employees are evaluated somewhere down the middle of a scale