Managing and Evaluating Performance

1
Managing and Evaluating Performance
2
Typical Steps in Performance Evaluation
Development

• Establish purpose of system
• Identify relevant criteria
• Determine methods for measuring criteria
• Train raters on use of the system
• Evaluate employees
• Provide feedback

3
Purpose of Performance Evaluations

• Determine compensation rates
• Making decisions re promotion, termination
• Employee Development
• Determine training needs
• Provide feedback
• Validating selection systems

4
What will the evaluations focus on?

• Traits
• Attentiveness
• Friendliness
• Diligence
• Behaviors
• Officer actively monitored the speed of traffic
• Sales rep asked customers about additional items
• Teller counted back money twice to each customer
• Results
• Officer wrote 32 traffic citations
• Sales rep sold 13,000 in shirts
• Teller was short 3.00 at the end of the month

5
Task Contextual Performance

• Task job-specific behaviors including core job
  responsibilities
• Contextual non-job-specific behaviors
• Volunteering to do more than job
• Persisting with extra enthusiasm
• Helping cooperating with others
• Following organizational rules procedures
• Supporting defending organizational objectives

6
360º Feedback

• Downward - supervisor
• Upward subordinate
• Laterally peers
• Customers/Clients
• Self
• Best used for developmental purposes
• Tie to organizational goals

7
Types of Scales

• Graphic rating scales
• Behaviorally anchored rating scales (BARS)
• Behavioral checklists
• Forced-Choice rating scales
• Behavioral Observation Scale

8
Factors that Affect PE Reliability

• Rating Errors leniency, severity, central
  tendency, halo, contrast
• Use of different standards by raters
• Sampling problems
• Recency
• Infrequent observation
• Training can address some of these
• Rater Error Training
• Rater Accuracy Training e.g. frame of reference

9
Additional Factors Affecting Ratings

• Performance of Raters higher performers rate
  more accurately
• Job Knowledge of Raters - more knowledgeable
  more valid
• Consequences of ratings for employee rater

10
Factors Affecting How Feedback is Received
(Ilgen Favero, 1985)

• Source
• Credibility
• Power
• Message
• sign ( or -)
• consistency

• Recipient
• achievement orientation
• Self-esteem
• Locus of control

11
Legally Sound PE Systems(Malos, 1998)

• Appraisal Criteria should
• be objective rather than subjective
• be job-related or based on job analysis
• be based on behaviors rather than traits
• be within the control of the ratee
• relate to specific functions, not global
  assessments
• be communicated to the employee

12
Legally Sound PE Systems(Malos, 1998)

• Appraisal Procedures should
• should be standardized and uniform for all
  employees within a job group
• should be formally communicated to employees
• should provide notice of performance deficiencies
  and of opportunities to correct them
• should provide access for employees to review
  appraisal results

13
Legally Sound PE Systems(Malos, 1998)

• (cont.) Appraisal Procedures should
• should provide formal appeal mechanisms that
  allow for employee input
• should use multiple, diverse, and unbiased raters
  
• should provide written instructions and training
  for raters
• should require thorough and consistent
  documentation across raters that includes
  specific examples of performance based on
  personal knowledge
• should establish a system to detect potentially
  discriminatory effects or abuses of the system
  overall