BBA 440 Chapter 8 notes

Process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.

Process of creating a work environment in which people can perform to the best of their abilities.

• 1. Developmental
• 2. Administrative

• 1. Provide performance feedback
• 2. Identify individual strengths/weaknesses
• 3. Recognize individual performance
• 4. Assist in goal identification
• 5. Evaluate goal achievement
• 6. Identify individual training needs
• 7. Determine organizational training needs
• 8. Reinforce authority structure
• 9. Allow employees to discuss concerns
• 10. Improve communication
• 11. Provide a forum for leaders to help

• 1. Document personnel decisions
• 2. Determine promotion candidates
• 3. Determine transfers and assignments
• 4. Identify poor performance
• 5. Decide retention or termination
• 6. Decide on layoffs
• 7. Validate selection criteria
• 8. Meet legal requirements
• 9. Evaluate training programs/progress
• 10. Personnel planning
• 11. Make reward/compensation decisions

• 1. Lack of top-management information and support
• 2. Unclear performance standards
• 3. Rater bias
• 4. Too many forms to complete
• 5. Use of appraisal program for conflicting (political) purposes.

• 1. Strategic Relevance
• 2. Criterion Deficiency
• 3. Criterion Containment
• 4. Reliability

Individual standards directly relate to strategic goals

Standards capture all of an individual�s contribution

Performance capability is not reduced by external factors

Process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another

Supreme Court ruled that performance appraisals were subject to the same validity criteria as selection procedures.

Supreme Court found that employees had been ranked against a vague standard, open to each supervisor's own interpretation.

• 1. Must be job related
• 2. Employees must be given a written copy of their job standards in advance
• 3. Managers must be able to observe behavior they are rating.
• 4. Supervisors must be trained to use the appraisal form correctly.
• 5. Should be discussed openly with employees and counseling or corrective guidance offered.
• 6. Appeals procedure should be established

• 1. Manager/Supervisor
• 2. Self
• 3. Subordinate
• 4. Peer
• 5. Team
• 6. Customer

Performance appraisal done by an employee's manager and often reviewed by a manager on level higher

Performance appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.

Performance appraisal of a superior by an employee which is more appropriate for development than for administrative purposes.

Performance appraisal done by one's fellow employees generally on forms that are compiled into a single profile for use in the performance interview conducted by the employee's manager

• 1. Peer rating are simply a popularity contest
• 2. Managers are reluctant to give up control over the appraisal process
• 3. Those receiving low ratings might retaliate against their peers.
• 4. Peers rely on stereotypes in ratings

Performance appraisal based on TQM management concepts, that recognizes team accomplishment rather than individual performance

Performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers

• 1. Assure anonymity
• 2. Make respondents accountable
• 3. Prevent gaming of the system
• 4. Use statistical procedures
• 5. Identify and quantify biases

• 1. Establishing an appraisal plan
• 2. Eliminating Rater Error
• 3. Feedback training

Performance rating error in which all employees are rated about average

Performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings

Performance rating error in which the appraisal is based largely on the employee's most recent behavior rather than on behavior throughout than on behavior throughout the appraisal period

Performance rating error in which an employee's evaluation is biased wither upward or downward because of comparison with another employee just previously evaluated

Performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection

• 1. Graphic rating scales
• 2. Mixed standard scales
• 3. Forced-choice method
• 4. Essay method

Trait approach to performance appraisal whereby each employee is rated according to a scale of characteristics

A trait approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard

Trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance

• 1. Critical incident
• 2. Behavioral checklist
• 3. Behaviorally anchored Rating Scale (BARS)
• 4. Behavior Observation Scale (BOS)

Unusual event that denotes superior or inferior employee performance in some part of the job

Behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance

• 1. Error of central tendency
• 2. Leniency or strictness errors
• 3. Similar to me errors
• 4. Recency errors
• 5. Contrast and halo errors

Behavioral approach to performance appraisal that measures the frequency of observed behavior

• 1. Maintaining objectivity
• 2. Distinguishing good performers from poor performers
• 3. Providing feedback
• 4. Identify training needs

• 1. Productivity measures
• 2. Management by objectives
• 3. Balanced scorecard

Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager

• 1. Financial
• 2. Customer
• 3. Processes
• 4. Learning

• 1. Translate the strategy into a scorecard of clear objectives
• 2. Attach measures to each objectives
• 3. Cascade scorecards to the front line
• 4. Provide performance feedback based on measures
• 5. Empower employees to make performance improvements
• 6. Reassess strategy

• 1. Trait
• 2. Behavioral
• 3. Results

• 1. Inexpensive to develop
• 2. Use meaningful dimensions
• 3. Easy to use

• 1. Use specific dimensions
• 2. Acceptable to employees & superiors
• 3. Useful for providing feedback
• 4. Fair for reward and promotion decisions

• 1. Less subjectivity bias
• 2. Acceptable to employees & superiors
• 3. Link individual performance to organizational performance
• 4. Encourage mutual goal setting
• 5. Good for reward and promo decisions

• 1. High potential for rating errors
• 2. Not useful for employ counseling
• 3. Not useful for allocating rewards
• 4. Not useful for promotion decisions

• 1. Time-consuming to develop/use
• 2. Costly to develop
• 3. Potential for rating error

• 1. Time consuming to develop/use
• 2. May encourage a short-term perspective
• 3. May use contaminated criteria
• 4. May use deficient criteria

• 1. Tell and sell interview
• 2. Tell and listen interview
• 3. Problem solving interview

• 1. Ask for a self-assessment
• 2. Invite participation
• 3. Express appreciation
• 4. Minimize criticism
• 5. Change the behavior not the person
• 6. Focus on solving problems
• 7. Be supportive
• 8. Establish goals
• 9. Follow up day to day

• 1. Consider whether it is really necessary
• 2. Consider the needs of the employee
• 3. Be specific, don't exaggerate
• 4. Watch your timing
• 5. Make improvement your goal

• 1. Motivation
• 2. Environment
• 3. Ability