Performance Appraisal I

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Performance Appraisal I

• An HRM perspective

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Goals

• Developing a Performance Appraisal system.
• Present diversity of processes.
• Putting together a viable process that achieves
  strategic goals and/or fit

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Expose to Diversity of forms.Then put it
together at the end and compare different ways to
do develop a PA system
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Importance of PA

• Related to Compensation
• Retention
• Training
• Unions are an important constraint
• Building organizational competencies and SHRM
• Legal issue
• Career development (not in book but more than
  training).

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Purposes of Performance Appraisal

• Motivation and productivity
• Strategic planning and change
• Legal issues

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Motivation

• Pay for performance (Extrinsic)
• The power of feedback (Desire to do a better
  jobintrinsic).
• Forshadow Supervisorsdo you give straight and
  honest feedback or tend to gloss over minor
  problems or even significant problems.

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Strategic issues.

• First, any change effort needs performance
  monitoring.
• Second detecting problems (organizational not
  individual).
• Third, linking PA to organizational competencies.
  

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Legal issues

• If PA is used for compensation, termination, or
  promotion and done poorly (low validity and
  reliability) then open to discrimination.
• See text p 460.

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Developing a system

• Need to consider purposes of PA
• Need to consider type of fit and culture
• Need to consider what type of performance is most
  critical in an organization. Different
  approaches.

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Deciding what to measure

• Traits/values
• Behaviors
• Objective criteria.
• Types of fit.

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How does one measure each of these?

• Take a job. Meet in teams. Discuss.

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Important Issues

• What are the best indicators of job performance.
• What behaviors are critical for organizational
  effectiveness, group performance, individual
  performance.
• Tradeoffs in general
• Types of fit.

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Cont.

• Who is best able to evaluate job performance
• Self, supervisor, electronic, peers
  subordinates, customers.

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• What is done on your job past job
• What do you like?
• What do you not like?

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How do you know what to use

• Legal issues
• Strategic and type of fit.
• Relevance of measurement

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Benchmark
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Making PAs more effective (and legally defensible.
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Side track

• Biases in PA.
• Largely Halo/horns effect
• Lots of bias towards leniency
• Lots of bias towards recency.
• Prejudices (more than sex/race etc).

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Normal supervisor PA

• Saturated with biases and better not done that
  just the typical check list done by supervisor.
• Not reliable
• Not valid

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Efforts to increase effectiveness

• All in the forms and in assessor training.

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Problems with Leniency

• Forced distribution
• Comparative rankings.
• Not the best for all situations. But how you
  address it.

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Problems with accuracy

• So not get supervisor directly involved.

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One approach

• Objective indicators of performance.
• These are not perfect either. Mortgage Loans.
  Total loan in collectable stage. What could be
  some problems.

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Second approach

• Customer evaluations of treatment. Each customer
  given a chance to complete. Based on total of
  all.
• Mostly suited for service industry and direct
  customer contact.
• Generally good when appropriate.
• When could this be a problem?

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Behavior approaches

• Take job analysis. Take performance dimensions.
  Assess based on those performance dimensions.
• While valid not necessarily reliable.

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Behavior Check list

• List desirable behaviors. Dichotomous. Usually
  done. Problems if scale. Open to bias.
• Similar take same behavior. Order them in terms
  of doing a quality job.
• Put into a scale. Hard to do. Takes a Team
• BARS

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Advantages and disadvantages of each

• Type of fit, strategy, purpose of appraisal are
  all relevant to determine which to use.

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Valid and Reliable PA

• Outcomes better than processes
• multiple raters better than single rater
• Supervisory training

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Content validity

• PA systems based on systematic analysis of
  strategic competencies. PJ fit, PG, PO fit.

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Show PA document during orientation
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In teams

• Hudsons we have had a lot of information about
  the company and the type of work.
• Customer driven company, values diversity.
• Image of what it takes to do the job.
• Some teaming but not that much.

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• Team to work on PJ fit--outcome based
• PJ fit behavior based-2
• P-O fit Trait/values Make assumptions
• P-G fit behavior

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Report Back

• Overhead
• Describe aspects wish to assess and why.
• Write an abbreviated PA document assessing at
  least 3 aspects of performance.

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Summary

• Largely looked PA system--whats important.
• Strategic implications
• Consequently HR needs to have input into the
  development forms to reinforce the culture of the
  organization
• HR perspective on PA.

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Read the article on 360 degree PA

• Have a lot of information.
• Would 360 degree feedback be good in your
  organization/last employer
• Why or why not.
• If yes, what would be necessary to put it into
  place.
• Next class Supervisor perspective. Training.
• http//edis.ifas.ufl.edu/scripts/htmlgen.exe?DOCUM
  ENT_HE749 copy it as role model. Bring it to
  class.