Performance Appraisal

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Performance Appraisal Key Definitions
Criteria The basis for judgement or
evaluations. Performance Criteria Criteria for
evaluating job performance. Job Performance
The degree to which one meets expectations of
supervisors or others in authority. Performan
ce Standard A specific level of performance that
is expected. Minimum Standard A level of
performance that just meets expectations. Perform
ance Judgement A persons private estimation of
how well another individual
performs. Performance Rating A public or
observable account of a persons estimation
of how well another performs. Performance
Rater A person who provides a public estimation
of well anothers meeting expectations. Perfo
rmance Feedback Information on past
performance. Productivity The ratio of outputs
over inputs. Efficiency.
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Functions for Which Appraisal is Used

• Merit increases
• Performance results/feedback/job counseling
• Promotion
• Termination or layoff
• Performance potential
• Succession planning
• Career planning
• Transfer
• Manpower planning
• Bonuses
• Development and evaluation of training programs
• Internal communication
• Criteria for selection procedure validation
• Expense control

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Comparison of Performance Appraisal Systems
Characteristic Traditional Review Continuous Improvement Review (CIR)
Orientation The boss is the primary customer-the person who evaluates the employee The real customer-the person who receives work form the employee-does the evaluation
Primary goal Please the boss Please the customer
Aim of Rewards Motivating individuals to perform better. Rating depends on how well the employee does the job, meets individual objectives and the boss expectations. Improving the process to make the system work better-employee rating depends on how well employee cooperates with customers and meets joint objectives
Lessons Learned Manipulate the evaluation Manipulate the elements that affect quality and productivity
Benchmarking Internal Employees compete against each other to achieve ratings. External Employees compete against outside standards to establish superior processes
Team Orientation Anti-Teamwork Making my number-not in employees self-interest to cooperate, share information or work across boundaries Pro-Teamwork employees self-interest served by cooperating, setting mutual goals and crossing boundaries
Assumption Individual performance is the root cause of productivity increases or decreases The system and its processes are the root causes of productivity increases or decreases
Feedback Focus On point-in-time objectives of an individuals job. Feedback is secondhand informs boss whether employee is working effectively On explicit process objectives that link jobs. Feedback is direct informs employee and customer whether solutions are working effectively
Role Puts the boss in the evaluator role-takes employee out of the role of problem solver with customer Puts the employee in the role of partner and problem solver with customer puts boss in role of facilitator
Target for Change The employee and his or her deficiencies. The process and its deficiencies
Objectives Eliminate variability within categories of job performance-no real incentive to cross boundaries and deal directly with customers Eliminate variability within processes and sub-processes-strong incentive to cross boundaries and deal directly with customers
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Performance Appraisal Systems in the Context of
Organizations

• Performance appraisal should be viewed as a
  systematic process that is integrated with other
  organizational processes
  
• A performance appraisal system should be
  integrated with
• Organization, department, and personal goals
• Reward systems
• Management systems
• On-going operations
• Training systems
• Organizational value systems

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Performance Appraisal Systems in the Context of
Organizations (cont.)

• Good Communication
• Rapport between supervisors and subordinates
• Train supervisors to communicate
• Effective channels of communication

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A Systems View of Performance Feedback
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Different Sources of Performance Appraisal
Information

Source of Appraisal Advantages Disadvantages
Immediate Supervisor Makes decisions on rewards Has perspectives on all subordinates Personal bias possible Supervisor may be removed from subordinates
Self Unique perspective A useful basis for comparison Useful for self-insight Likely to be too lenient
Peers Greater exposure to appraises More accurate assessment Competitive atmosphere confounds usage
Subordinates Can give diagnostic-type feedback Can subvert the leaders authority
Superiors of other units Can be less subjective Too removed form the individual
Customers or clients Gives input from immediate client group Only sees limited facet or appraise
Consultants Complete, thorough appraisal Too expensive for use with all employees
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Increasing the Legal Soundness of a Performance
Appraisal System

• Formal and standardized
• Written Policy
• Done in the same manner for all employees
• Based on job analysis and leads to clear
  standards and fixed measures of performance
• Appraisers are trained
• Promotion or termination is documented with
  substantial evidence
• The performance measurement instrument focuses on
  critical job behaviors

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Legal Issues In Performance Appraisal

1. 1978 Guidelines any and all personnel decisions
   affecting an employees status in any
   organization are defined as test.
2. A test must be valid if there is adverse impact.