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PERFORMANCE APPRAISAL: LEGAL ISSUES

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Subjective measures use with caution especially trait based measures ... Ordering of employees based on size and character of each group. ... – PowerPoint PPT presentation

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Title: PERFORMANCE APPRAISAL: LEGAL ISSUES


1
PERFORMANCE APPRAISAL LEGAL ISSUES
  • PA must be job related. Validation requirements
    apply to PA procedures.
  • Objective performance standards preferred
  • Subjective measures use with caution especially
    trait based measures
  • PA system can be discriminatory if 1)
    rating content not job related
    2) content rated not based on Job Analysis 3)
    raters do not observe ratees performing their
    work
    4) ratings based on subjective factors
    5) ratings not collected and scored in
    standardized fashion

2
COMMON PERFORMANCE APPRAISAL RATING ERRORS
  • Leniency Error give more positive ratings to
    employees than they deserve
  • Severity errors evaluate employees more
    unfavorably than they deserve
  • Central Tendency error rating all employees near
    the mid-point of the performance scale
  • Halo Error rating a single individual based on
    the interviewers general feeling toward the
    individual so that employee receives nearly
    identical ratings (usually high) on all
    performance areas

3
WHY DO RATING ERRORS OCCUR
  • I. Unintentional Errors
  • Cognitive information processing
  • Performance Appraisal (PA) is a complex memory
    process where performance information is
    acquired, stored, retrieved at later date, and
    then weighed into performance judgement
  • 2) Shortcut used to condense information can
    cause errors. Example Schemas

4
WHY DO RATING ERRORS OCCUR
  • I. Unintentional Errors continued
    - Shortcut used to condense
    information can cause errors. An Example
    Schemas
  • - Schemas are mental categories used to
    organize information and classify people
  • a. prototypes are sets of characteristics
    that are used to classify someone into that
    schema
    b. ratee doesnt have
    to exhibit all characteristics of prototype to
    be classified into a particular schema
  • c. leniency and severity errors affected by
    nature of schema prototypes
  • II. Intentional Errors by supervisors

5
IMPROVING PERFORMANCE RATINGS USING SUBJECTIVE
MEASURES
  • Rater Error Training
    1) teach raters what are
    common rater errors and train to avoid them

    2) helps reduce common
    rating errors but not necessarily rating accuracy
  • Frame of Reference Training
    1) reduce errors by developing a
    common frame of reference for raters to use
    2) examples
    of good and poor performance are identified
    raters trained to observe these and use them to
    judged employee performance

6
IMPROVING PERFORMANCE RATINGS USING SUBJECTIVE
MEASURES
  • Information Processing Approaches
    1) Observation training help raters
    improve way they observe behavior and identify
    important performance activities
    2) Decision-making
    training instructs raters in good decision
    making methods
  • Feedback to Evaluators rating the raters can
    reduce systematic bias. Can be stressed by
    including in the raters own PA how well that
    person does subordinate PA
  • Combine practice (whatever method selected) and
    feedback

7
SUBJECTIVE METHODSI. COMPARATIVE PROCEDURES
  • Rankings employees compared directly against one
    another
    1)
    Straight ranking of employees in order from best
    to worst
    2) Paired comparison ranking examine all
    possible employee pairs, choosing the better
    person in each pair. Person chosen first most is
    ranked first, and so on. 3) Forced
    distribution must place certain percentage of
    employees in each of several performance
    categories, which based on overall assessment of
    employees performance.
  • Advantages of comparative methods
    1) easy to use and explain
    2) helpful in making promotion and merit
    raise decisions
    3) control for leniency, severity
    and central tendency errors

8
DISADVANTEGES OF COMPARATIVE PROCEDURES
  • Employees evaluated on overall performance rather
    than job specific performance dimensions
    (deficiency)
  • Highly subjective and difficult to support with
    evidence
  • Open to legal challenge because they do not focus
    on specific job-related behaviors
  • cannot tell what is absolute difference in
    performance among employees. Ordering of
    employees based on size and character of each
    group.
  • One evaluator must know performance of everyone
    who is evaluated
  • not useful for feedback
  • may have groups of employees who do not conform
    to a normal distribution

9
SUBJECTIVE METHODII. ABSOLUTE STANDARDS
PROCEDURES
  • A. Graphic Rating Scales most widely used

    1) employee
    evaluated on each of several dimensions with a
    clearly defined scale 2) more
    important dimensions can be weighted before total
    calculated
  • Advantages
    1) easily to develop
    and use 2)
    can have more than one performance dimension

    3) employees scores can be compared
    4) method accepted by raters
    5) can be as reliable
    and valid as more complicated procedures
  • Disadvantages
    1) prone to halo,
    leniency, severity and central tendency errors

    2) dimensions scale for ratings may be
    vague
  • B. Mixed Standard Scales define low medium, and
    high performance levels for each dimension
    then determine what statement is most descriptive
    of employees performance

10
SUBJECTIVE METHOD II. ABSOLUTE STANDARDS
PROCEDURES
  • C. Forced Choice system
    1) for each
    pair of items must choose the one item that is
    more characteristic of the employee
    2) only one of the two items is related to job
    performance and rater does not know which item
    will make employee look good
    3) pairs are designed so that
    both appear equally good or bad

    4) hard to develop
    4) not good for
    feedback purposes
    5) can reduce leniency

11
SUBJECTIVE METHOD II. ABSOLUTE STANDARDS
PROCEDURES
  • D. Weighted Checklists rater marks from list of
    job related characteristics those typical of
    employee

    1) developed with job experts indicating levels
    of good/poor performance each behavior or
    characteristic represents
    2) item weights summed but
    rater does not know value of the weights of the
    individual items
  • 3) leniency may be a problem

12
SUBJECTIVE METHOD II. ABSOLUTE STANDARDS
PROCEDURES
  • E. Critical Incidents Technique
  • evaluator keeps log on employee where record
    behaviors and performance incidents that are
    particularly effective or ineffective
  • log used to evaluate employee
  • time consuming and can be difficult to quantify
  • have more than one performance dimension
  • can be used with more structured subjective
    methods (BARS)

13
SUBJECTIVE METHODS II. ABSOLUTE STANDARDS
PROCEDURE
  • F. Behaviorally Anchored Rating Scales (BARS)

    1) graphic
    scales on which anchor points are defined by
    using examples of behavior that represent
    different levels of performance
  • 2) raters mark the scale point the best
    represents the employees level of performance
  • 3) involves multi-step, costly and time
    consuming developmental process
  • - critical incidents that show effective
    /average/ineffective behavior (one group)
  • - identify important performance dimensions
    (second group)
  • -assign CIs to dimension (third group)
  • - rate level of performance of each CI
    (fourth group).

14
SUBJECTIVE METHODS II. ABSOLUTE STANDARDS
PROCEDURE
  • Behaviorally Anchored Rating Scales (BARS)
  • --Advantages of BARS
  • 1) process to develop increases chances that
    it will be valid performance measure and that
    employees will accept it
  • 2) less open to legal change because they are
    job related
  • 3) each job category requires it own BARS
  • 4) may not be practical because of small
    number of employees and cost

15
SUBJECTIVE METHODS II. ABSOLUTE STANDARDS
PROCEDURE
  • F. Behavioral Observation Scales (BOS)
  • - developed to address situation where
    employee who engages in effective job behavior at
    other times performs poorly on the same job
    behavior
  • - job experts identify groups of behavioral
    incidents and classify them into performance
    dimensions
  • - Advantages
    1) based on
    job analysis
    2) good content validity that is
    legally accepted
    3) good for providing
    feedback 4) BOS
    may provide more performance information than
    BARS because BOS uses frequency scales of behavior

16
MANAGEMENT BY OBJECTIVES
  • MBO Process
  • 1. Employee and supervisor agree on
    performance goals for a set time period
  • 2. During period progress monitored but
    employee free to determine how to meet goals
  • 3. At end of period, meet to evaluate if goals
    met and to set future goals
  • Advantages
  • 1. defines behavioral goals instead of
    subjective ones
  • 2. innovation encouraged since employee
    determines how to meet goals
  • 3. useful as way of coordination goals of
    organization with managers and subordinates-promot
    es goal consistency
  • 4. BOS may provide more performance

17
MANAGEMENT BY OBJECTIVES
  • Why has MBO failed
  • 1. Time, effort commitment needed
  • 2. Goals need to be flexible, adaptable,
    achievable
  • 3. Employees with easy goal appear better than
    those with harder goals

18
PERFORMANCE APPRAISAL INTERVIEW
  • Types of Feedback Interviews
  • A. Tell and Sell employee told how good or
    bad performance was and tries to get employee to
    accept that judgement.
  • 1) No employee input fails to recognize
    that employee may have something to contribute to
    evaluation
  • 2) directed, one-sided, and can lead to
    subordinate being resentful, defensive and
    frustrated
  • 3) employee may not accept results of
    interview and as a result may not be committed to
    achieving any goals set
  • 4) Tell and Sell effective for new employees
    or for those who have little interest in
    participating

19
PERFORMANCE APPRAISAL INTERVIEW
  • Types of Feedback Interviews
  • B. Tell and Listen employee told what is right
    and wrong and then given chance to respond
  • C. Problem Solving employees evaluate their
    own performance and set their own goals
  • 1)supervisor is helper and colleague rather
    than judge
    2)
    encourages open dialogue
  • 3) more difficult method for supervisor, but
    more likely to lead to employee acceptance and
    commitment

20
PROBLEMS WITH PERFORMANCE APPRAISAL INTERVIEW
  • Disagreement and Defensiveness
  • 1) disagreement about performance ratings
    subordinates usually rate their performance
    higher
  • 2) disagreement about causes of performance
  • a. Supervisors assume employee

    responsible
  • b. Subordinate often assign blame to bad
    luck, lack of resource, or insufficient help from
    others
  • 3) traditional manager-subordinate PA feedback
    is authoritarian and often leads to defensiveness

21
PROBLEMS WITH PERFORMANCE APPRAISAL INTERVIEW
  • Multiple purposes PA interviews often used for
    several purposes review past performance convey
    administrative decisions, plan for future worked
    goals, and to discuss the employee's career and
    development goals
    1) conventional view
    shouldn't discuss past performance and merit
    raises in same interviews as future goals and
    development 2)
    Recent research disagrees discussion of salary
    does not seem to harm developmental aspects of
    feedback interviews
    3) however, a cautious
    approach may be necessary especially if employee
    becomes resentful. If so, best to end interview
    and set another one later

22
IMPROVING THE PERFORMANCE APPRAISAL INTERVIEW
  • Feedback Specificity
    1) feedback from
    behaviorally based appraisal instrument is
    helpful and if the performance rating is backed
    up with specific examples of good and poor
    performance
    2) specific feedback
    helps employee determine what it is that should
    be done to improve performance

23
IMPROVING THE PERFORMANCE APPRAISAL INTERVIEW
  • Subordinate Acceptance to be credible feedback
    must come from a source accepted by employee
  • 1) credibility enhanced when evaluator is
    seen as knowledgeable about job, has observed
    employees performance, and has taken time to
    prepare the appraisal interview
  • 2) destructive criticism and threats to
    subordinate are ineffective and may harm future
    performance
  • 3) satisfaction and acceptance of appraisal
    interviews is based on employees contribution to
    and participation in the discussion

24
IMPROVING THE PERFORMANCE APPRAISAL INTERVIEW
  • Setting Clear Goals
  • 1) supervisors assist in setting specific
    goals that focus subordinate's attention on
    performance
  • 2) later supervisor follow up on goal
    progress and give feedback when necessary
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