CHAPTER 5 Evaluating Employee Performance

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CHAPTER 5Evaluating Employee Performance

• Introduction to Industrial/Organizational
  Psychology by Ronald Riggio

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Job Performance and Performance Appraisals

• A thorough job analysis is the starting point for
  measuring and evaluating actual job performance.
• Performance appraisals involve the assessment of
  worker performance on the basis of predetermined
  organizational standards.

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The Measurement of Job Performance

• One way to categorize performance is in terms of
  objective and subjective criteria.
• Objective performance criteria are more
  quantifiable measurements of performance, such as
  the number of units produced or dollar sales.
• Subjective performance criteria typically involve
  judgments or ratings of performance.

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The Measurement of Job Performance

• Concerns for a performance criterion include
• Whether it is relevant to job success (criterion
  relevance).
• Whether the criterion contains elements that
  detract from the pure assessment of performance
  (criterion contamination).
• The degree to which a criterion falls short of
  perfect assessment of job performance (criterion
  deficiency).
• Whether the criterion is usable (criterion
  usefulness).

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The Measurement of Job Performance

• Self-appraisals are ratings or evaluations made
  by the workers themselves.
• Peer appraisals involve coworkers rating each
  others performance.
• 360-degree feedback involves getting multiple
  performance evaluations, from supervisors, peers,
  subordinates, and customers.

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The Measurement of Job Performance

• Comparative methods of appraisal, such as the
  paired comparison and forced-distribution
  techniques, directly compare one worker's
  performance with that of other workers.
• Individual methods of appraisal do not make
  direct comparisons with other workers.
• Individual methods include checklists and
  forced-choice scales.

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The Measurement of Job Performance

• The most common method of individual performance
  appraisal involves the use of graphic rating
  scales, where an appraiser uses a standardized
  rating instrument to make a numerical and/or
  verbal rating of various dimensions of job
  performance.
• The behaviorally anchored rating scale (BARS)
  uses examples of good and poor behavioral
  incidents as substitutes for the scale anchors
  found in traditional rating instruments.

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Problems and Pitfalls in Performance Appraisals

• A major problem in rating job performance is
  caused by systematic biases and errors.
• Types of response tendency errors include
• Leniency errors.
• Severity errors.
• Central tendency errors.
• Halo effects occur when appraisers make overall
  positive (or negative) performance appraisals
  because of one known outstanding characteristic
  or action.

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Problems and Pitfalls in Performance Appraisals

• There are also errors caused by giving greater
  weight to more recent performance, known as
  recency effects.
• The actor-observer bias refers to the tendency
  for an appraiser to place greater emphasis on
  dispositional factors and lesser emphasis on
  situational factors that may have affected
  performance.

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The Performance Appraisal Process

• A good performance appraisal consists of two
  parts
• Performance assessment.
• Performance feedback.

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Legal Concerns in Performance Appraisals

• Performance appraisals must be valid procedures,
  resulting from job analyses, that do not unfairly
  discriminate against any group of workers.
• Because of the proliferation of work teams,
  organizations are developing team
  appraisalsevaluations based on an interdependent
  group of workers as a unit.