Performance Appraisal Chapter 14: Building Better Performance Appraisal Systems

What are some challenges of performance appraisal?

• The task is difficult

• The process and outcomes are influenced by contextual factors

• The multiple purposes for its use can conflict

• Participants in performance appraisal are motivated to distort the process so employees receive high ratings

What are some suggestions for improving performance appraisal?

• Make appraisal easier and less risky

• Focus on the essential purpose of appraisals

• Enhance the credibility and legitimacy of the system

• Don’t waste time on less essential features

How can we make appraisal easier and less risky?

• Provide tools that have been shown to work (behavior diaries and memory aids)

• Provide training that has been shown to work (frame of reference training)

How can we protect raters from negative consequences?

• Make performance appraisal systems more transparent

• Make performance appraisal systems more fair

• Make PA systems forward-looking

• Reduce visibility and impact of direct supervisor’s judgments

How can we make the PA system more transparent?

• System should operate in a consistent and predictable fashion

• Remove or reduce arbitrary and unpredictable parts

• Communicate to all users how the system works

What three factors influence fairness perceptions?

• Procedural justice

• Distributive justice

• Interactional justice

How can we make PA systems fair?

• Procedures used to evaluate performance should be consistent, reasonable, and transparent

• consequences of receiving negative or positive appraisals should be reasonable and consistent

• Individuals who participate in PA should be treated with dignity and respect

• People should be able to participate in the appraisal process and have a voice

How can we make PA systems forward-looking?

• concentrate on present and future rather than past

• Benefits of frequent real-time performance feedback: helps employees make changes that will improve subsequent performance

• Work with employees to identify what has been successful

• Develop ways to apply these methods to future work situations

Why is training hard to evaluate?

• structure of org

• Nature of labor market

• Legal system

Courts focus on what two themes when evaluating PA systems?

• Evidence that the system is designed to to provide reliable and job-related assessments

• Evidence that there are mechanisms in place to provide employees a chance to have input and to challenge evaluations they dem unfair

What is Six and Sorge’s (2008) method for better performance appraisal?

• Promote a relationship-oriented culture

• Signal your intentions

• Socialize new members

• Monitor and develop competency

What should orgs do to keep performance appraisal ethical?

• Orgs should avoid placing supervisors and employees in situations that pressure them to provide dishonest ratings and feedback

• Orgs should take proactive steps to reduce temptation to make oneself look good with inflated ratings