IO Chapter 5
Chapter 5: Performance Management
Performance Management: A system of individual performance improvement that typically includes (1) objective goal setting, 2 continuous coaching and feedback, 3 performance appraisal, and 4 development planning.
Chapter 5: Motivational System of Individual Improvement
Motivational system of individual improvement: (DeNisi & Pritchard, 2006).
Chapter 5: Key Points in Performance Management System
Key points: Four components are linked to companies’ goals and objectives, and the system is implemented on a continuous cycle.
Chapter 5: Coaching Definition
Coaching: One-on-one collaborative relationship in which an individual provides performance-related guidance to an employee.
Chapter 5: Performance Appraisal Definition
Performance appraisal: Systematic review and evaluation of job performance.
Chapter 5: Uses of Performance Appraisal
Purposes:
Personnel decisions: Firing, hiring, raises.
Developmental purposes: Identify strengths and weaknesses.
Documentation: Prevent lawsuits.
Chapter 5: Well-Designed Appraisal
A good appraisal:
Well received by ratees.
Based on documented behavior.
Important performance criteria.
Inclusive of perspectives.
Forward-looking.
Chapter 5: Research Questions in Performance Appraisal
What is the best format or rating scale for performance appraisals?
To what extent do rater errors and biases affect the appraisal process?
How should raters be trained so they can avoid errors and biases?
What major contextual variables affect the appraisal process?
How important is the organizational context or culture in the appraisal process?
What factors affect how ratees and raters react to performance appraisal?
Chapter 5: Sources of Performance Ratings
Traditionally: Supervisors conducted performance appraisals using a top-down approach.
Multisource Feedback (360): A method of performance appraisal in which multiple raters at various levels of the organization evaluate a target employee and the employee is provided with feedback from these sources.
Chapter 5: Assumptions in Multisource Feedback
Basic assumptions:
Participants are happier because they are involved.
Multiple raters from different levels overcome bias.
Multiple raters bring more additional ratings.
Chapter 5: Upward Appraisal Ratings Definition
Upward appraisal ratings: Ratings provided by individuals whose status, in an organizational hierarchy sense, is below the ratee’s.
Chapter 5: Studies in Multisource Feedback
Semeijn et al. (2014): Showed different ratings and how perspectives differ in predicting managerial effectiveness.
Nurudeen et al. (2015): High percentages of surgeons report feedback accuracy and behavior change.
Goldring et al. (2015): Principals had cognitive dissonance when teacher ratings were low.
Chapter 5: Recommendations for Implementing Multisource Feedback
Be honest about how ratings will be used.
Help employees deal with ratings.
Avoid presenting too much information (DeNisi & Kluger, 2000).
Chapter 5: Changes in Telework
Telework: Working arrangements in which employees enjoy flexibility in work hours or location (Golden et al., 2009).
Chapter 5: Telework and Performance
Golden & Gajendran (2014): Telecommuting has a positive effect on performance.
Gajendran et al. (2015): Telecommuting is positively related to task and contextual performance.
Giovanis (2018): Found that increased telework results in more productivity.
Chapter 5: Graphic Rating Scales Definition
Graphic Rating Scales: The oldest format used, consisting of a number of traits or behaviors.
Chapter 5: Behaviorally Anchored Rating Scales (BARS)
BARS: Best known for the painstaking process of development (Smith & Kendall, 1963).
Bernardin & Beatty (1984): Created a five-step process for developing BARS.
Chapter 5: Critical Incident Definition
Critical Incident: Example of job performance used in behaviorally anchored rating scales or job-analytic approaches.
Chapter 5: Checklists Definition
Checklists: Popular format where raters are asked to check off each behavior that an employee exhibits.
Chapter 5: Weighted Checklist Definition
Weighted Checklist: A series of items that have been weighted as to importance or effectiveness.
Chapter 5: Forced-Choice Checklist Definition
Forced-Choice Checklist: Raters are asked to choose two items from a group of four that best describe the employee.
Chapter 5: Computerized Adaptive Rating Scale (CARS)
CARS: Created by Borman to make raters feel better. Provides discriminability with two forced choices.
Chapter 5: Employee Comparison Definition
Employee Comparison: Involves the evaluation of ratees with respect to how they compare to other employees.
Chapter 5: Rank-Ordering Definition
Rank-Ordering: Employees ranked from best to worst.
Chapter 5: Paired Comparisons Definition
Paired Comparisons: Each employee is compared with every other employee.
Chapter 5: Forced-Distribution Definition
Forced-Distribution: Raters are instructed to “force” a designated proportion of employees into 5-7 categories.
Chapter 5: Contemporary Trends in Rating Formats
Narrative Comments: Performance appraisal often includes narrative comments along with ratings.
Chapter 5: Feedforward Interviews (FFI) Definition
FFI: Facilitate positive change by focusing on employees' strengths, rather than weaknesses (Kluger & Nir, 2010).
Chapter 5: Rating Errors
Cognitive Processes: Errors can occur during the rating process through observation, encoding, storing, retrieval, and integration of information.
Chapter 5: Halo Effect Definition
Halo: Results from a rater's tendency to use their global evaluation of a ratee in making dimension-specific ratings or a rater’s unwillingness to discriminate between independent dimensions of a ratee’s performance.
Chapter 5: True Halo Definition
True Halo: Results from accurate intercorrelations among performance dimensions rather than from rating error.
Chapter 5: Distributional Errors Definition
Distributional Errors: Rating errors that result from a mismatch between actual and expected rating distributions.
Chapter 5: Leniency Definition
Leniency: The rating error that results when 1) the means of one's ratings across ratees are higher than the mean of all ratees across all raters, or 2) the means of one’s ratings are higher than the midpoint of the scale.
Chapter 5: Central Tendency Definition
Central Tendency: The tendency to use only the midpoint of the scale in rating one’s employees.
Chapter 5: Severity Definition
Severity: The tendency to use only the low end of the scale, giving consistently lower ratings to one’s employees than other raters.
Chapter 5: Recency Error Definition
Recency Error: Raters heavily weight their most recent interactions with or observations of the ratee, disregarding past performance.
Chapter 5: First Impression Error Definition
First Impression Error: Raters pay an inordinate amount of attention to initial experiences with a ratee.
Chapter 5: Similar-to-Me Error Definition
Similar-to-Me Error: Raters tend to give more favorable ratings to ratees who are like themselves.
Chapter 5: Rater Error Training (RET) Definition
Rater Error Training: A type of training developed to reduce rater errors by focusing on describing errors like halo and showing raters how to avoid making such errors.
Chapter 5: Frame-of-Reference Training (FOR) Definition
Frame-of-Reference Training: Designed to enhance raters' observational and categorization skills to improve rater accuracy by providing a common understanding of performance levels (Bernardin, 1981).
Chapter 5: Behavioral Observation Training (BOT) Definition
Behavioral Observation Training: Teaches raters how to observe certain behaviors and avoid behavioral observation errors.
Chapter 5: Rater Goals and Accountability
Mero & Motowidlo (1995): Demonstrated that raters held accountable to goals provide ratings consistent with those goals.
Chapter 5: Social-Psychological Context
Levy (2018): Context-related topics include accuracy, supervisor-subordinate relationships, organizational politics, trust, and multiple feedback.
Chapter 5: Leader-Member Exchange (LMX) Theory Definition
Leader-Member Exchange Theory: Emphasizes that supervisors have different types of relationships with different subordinates.
Chapter 5: Organizational Politics Definition
Organizational Politics: Deliberate attempts by individuals to enhance or protect their self-interest when conflicting courses of action are possible (Longenecker).
Chapter 5: Trust and Justice in Appraisals
Trust and Justice: The extent to which raters believe that fair and accurate appraisals are made in their organization.
Chapter 5: Participation in Appraisals Definition
Participation: Strong positive relationship between participation in the appraisal process and reactions like satisfaction, motivation, and fairness (Cawley, 1998).
Chapter 5: Providing Performance Feedback
Feedback Outcomes: Can lead to behavior changes, better performance, increased self-awareness, and increased confidence (Levy, London, Smither, Linderbaum).
Chapter 5: Continuous Employee Development Definition
Continuous Employee Development: A cyclical process where employees are motivated to plan and engage in behaviors that benefit their employability on an ongoing basis.
Chapter 5: Legal Issues in Performance Appraisals
Legal Issues: It is illegal to discriminate in performance appraisals based on non-performance-related factors (Austin et al., 1995).
Chapter 5: Due Process Metaphor in Appraisals
Due Process Metaphor: Includes adequate notice, fair hearing, and judgments based on evidence.
Chapter 5: Physiolytics Definition
Physiolytics: Three kinds of analysis: quantifications of movements, working with information efficiently, and analyzing personal "big data."