GOVT 0413 Performance Evaluation

HRM Performance Evaluation (Chapter 9) Rewarding Human Resources

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