Chapter 2 Appraisal Method

Chapter 2 Appraisal Method

1. Performance Appraisal

   • Model
     • Identification
       • area to be examined (relevance part)
     • Measurement
       • Standard and measure
       • Reliability and validity
     • Management
       • provide feedback
       • coaching the way for high lv performance
   • Purpose
     • Administrative
       • used as the basis of determining employees' working conditions, promotions, termination, and reward; help justify HR decision; a clear-cut criterion (as a checkpt)
     • Developmental
       • used as the basis of improving employee's performance; provide feedback for improvement
   • Benefit
     • Employor/Manager
       • Assess individual differences; documentation of performance; rational basis for merit system; set appraisal dimension for strategic goal; create expectation to employees; management process; validation of selection tools
     • Employee
       • Performance feedback and assessment; fairness, effects based on relatively standardized measures; goal-setting; increase motivation

2. Recognize definition of performance

   • Performance Management System
     • an interlocking set of policies and practices as their focus for enhanced achievement of organizational objectives through a concentration on individual performance
     • Key elements: appraisal and rewards
   • Performance dimensions
     • Types
       • Task performance
       • Contextual performance
         • Behaviors that contribute to organization's effectiveness (difficult to measure); provide a gd environment in which task performance can occur (eg actively care others)
     • can defined through job analysis
   • Appraisal Process
     • evaluation of current and past performance relative to performance standards
       • involve:
         • Setting standards
         • Access actual vs standard
         • Provide feedback

3. Appraisal Formats

   • Categories
     • Ranking
       • Comparison among employees
         • Straight ranking
         • Alternation ranking
         • Paired-comparison ranking
     • Rating
       • evaluate with some absolute standard
     • Essay
       • rater answer open-ended questions in essay describing employee performance
   • Major Components
     • Basic Employee information
     • Signatures
     • Accountabilities, objectives and standards
     • Competencies and indicators
     • Major Achievements and Contributions
     • Stakeholder input (eg customers)
     • Employee comments
     • Developmental Achievements
     • Developmental needs, plans, goals
   • Desirable features
     • Simplicity
     • Relevancy
     • Descriptiveness
     • Adaptability
     • Comprehensiveness
     • Definitional Clarity
     • Communication
     • Time Orientation

4. Who should provide performance information

   • Employee
     • Selecting which sources evaluate; which performance dimensions
     • Why?
       • higher acceptance of results; perception of fairness
   • Supervisors
     • Adv
       • Best position to evaluate; make decisions about rewards; able to differentiate among dimensions
     • Disadv
       • may not be able to directly observe; may be biased
   • Peers
     • Adv
       • assess teamwork
     • Disabv
       • friendship bias; may be less discriminating; context effects 關係
   • Subordinates
     • Adv
       • Accurate (developmental purpose); good position for some competencies
     • Disadv
       • Inflate 誇大(admin purpose); may fear reliation 報復 (need confidentiality)
   • Self
     • Adv
       • increase acceptance of decisions; decrease defensiveness 防禦 (appraisal interview); good position to tract activities (review period)
     • Disadv
       • May be more lenient 寬容 and biased
   • Customers
     • Adv
       • employee become more focused on meeeting customer expections
     • Disadv
       • Time and money
   • 360 appraisal
     • evolved from upward feedback; great deal of paperwork
   • Disagreement across sources
     • expect disagreement; ensure employee receives feedback by source; assign differential weights to scores (by importance); ensure employee take active role in selecting which sources will rate which dimensions

5. Rating process and potential mistakes

   • Rating process
     • 1) observe behavior; 2) encodes behavior; 3) stores information in memory; 4) review dimensions and retrieve observation to determine relevance to dimensions; 5) inf. is reconsidered and integrated with other available inf. to have final ratings
   • types of Errors
     • Errors in rating process
     • errors in observation
     • errors in storage and recall
     • errors in actual evaluation

6. Training for raters

   • rater-error training
     • to reduce psychometric 心理error by familiarizing raters with their existence
   • performance dimension training
     • exposes 公開 supervisors to dimension used
   • performance-standard training
     • provide a standard or frame of reference for making appraisal
   • End of process
     • appraisal interview
       • provide feedback; discussion of performance (coach) followed by discussion of salary (judge); highlight the association between performance and salary (increase motivation)
     • Type/ objectives
       • performance is satisfactory and promotable->make development plans
       • satisfactory but not promotable->maintain performance
       • Unsatisfactory->Take corrective action

7. Trend of PM

   • Interest in appraisal
     • focus on installing motivational qualities in PM system; linking pay to the person's achievements > his role
   • Org. view PM as integral to employment relationship
     • increase application of 360-degree feedback; reward strategies based on financial, customer, internal and innovation/learning
   • Org would allow employees to identify their training needs, run regular team briefings, and encourage development of transferable skills
     • introduce greater flexibility; flexible benefits

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