Psychology
Maria Castro 
PerformanceAppraisals.ppt
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Evaluating Employee Performance
Effective and Legal Performance Appraisal Systems
- Are job-related and based on a job analysis
- Are properly administered
- Formal
- Standardized
- Not too complicated
- Provide specific feedback
- Focus on behaviors rather than traits
- Ratings are documented
- Use appropriate raters
- Raters are trained
- All relevant raters are used
- Raters used must be relevant and qualified
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Steps in Developing the System
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- Create a task-force that includes all levels in the organization
- Determine why you are evaluating performance (your goal)
- Most systems have no goal
- 90% of systems do not work (SHRM survey)
- Will improving individual performance improve organizational performance?
- Identify environmental and cultural variables that could affect the system
What is the Purpose of the Appraisal?
- Feedback and training (65%)
- Personnel decisions
- Raises (86%)
- Promotions (45%)
- termination decisions (30%)
- Research
- Legal or certification reasons
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Who Will Appraise Performance?
- Upper management
- Direct supervisor
- Peers
- Subordinates
- Support staff
- Customers/the public
- Vendors
- Self
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Job 1 Job 2
Upper management _____ _____
Direct supervisor _____ _____
Peers _____ _____
Subordinates _____ _____
Support staff _____ _____
Customer/the public _____ _____
Vendors _____ _____
Self _____ _____
360º Feedback
- Use
- 28% of organizations (Mercer Consulting, 2005)
- SHRM Survey
- 18% for nonexempt positions
- 29% for exempt positions
- 32% for executive level positions
- Suggestions
- 4-10 raters
- 15 minutes to complete
- Provide feedback within 6 weeks of evaluation
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What Will be the Focus?
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- Goal Focus (Results)
- Prevent crimes from occurring
- Finish shift without personal injury
- Have arrests and citations stand up in court
- Task focus
- Crime prevention
- Arrest procedures
- Court testimony
- Use of vehicle
- Trait Focus
- Honesty
- Courtesy
- Responsibility
- Dependability
- Cooperation
- Competency Focus
- Report writing skills
- Driving skills
- Public speaking skills
- Knowledge of the law
How Will Performance be Appraised?
- Employee Comparisons
- Rank order
- Paired comparison
- Forced distribution
- Results
- Quantity
- Accidents
- Absenteeism
- Tardiness
- Subjective Ratings
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Example of a Ranking Method
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| Rating Dimension | ||||
| Employee | Knowledge | Dependability | Quality | Total |
| Barrino | 1 | 1 | 1 | 1.00 |
| Underwood | 2 | 3 | 2 | 2.33 |
| Hicks | 3 | 2 | 3 | 2.67 |
| Sparks | 4 | 5 | 4 | 4.33 |
| Cook | 5 | 4 | 5 | 4.67 |
Example of a Forced Distribution
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| Aniston | ||||
| Parker | ||||
| Barrymore | Roberts | Diaz | ||
| Hudson | Streep | Jolie | Witherspoon | Bullock |
| 10% | 20% | 40% | 20% | 10% |
| Terrible | Below Average | Average | Above Average | Excellent |
Ratings of Performance
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- Graphic Rating Scales
- Behavior-Based Methods
- Behavioral checklists
- Behaviorally anchored rating scales (BARS)
- Behavioral observation scales (BOS)
- Behavioral expectation scales (BES)
- Mixed-standard scales
- Forced choice scales
Types of Rating Scales
- Performance based (Extent to which expectations have been met)
- exceeds expectations
- meets expectations
- Normative based (Comparison to other employees)
- above average
- average
- Frequency based
- always
- sometimes
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Example of Scale Types
Comparison to Other Employees
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Dimension: Refers to Customers by Name
___ Much better than other tellers
___ Better than other tellers
___ The same as other tellers
___ Worse than other tellers
___ Much worse than other tellers
Example of Scale Types
Frequency
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Dimension: Refers to Customers by Name
___ Always
___ Almost always
___ Often
___ Seldom
___ Never
Example of Scale Types
Extent to Which Expectations were Met
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Dimension: Refers to Customers by Name
___ Greatly exceeds expectations
___ Exceeds expectations
___ Meets expectations
___ Falls below expectations
___ Falls well below expectations
Why Document Performance?
- Forces supervisor to look for behaviors
- Aids in recall during evaluation
- Provides examples to use when reviewing performance
- Provides concrete data to support personnel decisions
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What We Tend To Remember
- First impressions
- Recent behaviors
- Unusual behaviors
- Extreme behaviors
- Behavior consistent with opinion
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What We Tend to Forget
- Details
- The source of the information
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Critical Incidents
- Are examples of poor or excellent performance
- Provide behavioral examples
- Are usually collected through logs
- Employee performance record can be used
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Common Rating Errors
- Halo or Horns
- Range Restriction
- leniency
- strictness
- central tendency
- Location Errors
- proximity
- contrast
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Quotes From Actual Performance Evaluations
- Since my last report, this employee has reached rock-bottom and shows signs of starting to dig
- His men would follow him anywhere, but only out of morbid curiosity
- I would not allow this employee to breed
- This associate is really not so much of a has-been but more of a definitely won’t be
- He would be out of his depth in a parking lot puddle
- This young lady has delusions of adequacy
- This employee should go far – and the sooner the better
- This employee is depriving a village somewhere of an idiot
- He sets low personal standards and then consistently fails to achieve them
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Effective Performance Appraisal Review Interviews
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- Employee input prior to the meeting
- High level of employee participation
- Helpful supervisor attitude
- Focus on behaviors rather than traits
- Identification of solutions to problems
- Mutual setting of specific goals
- Consistent application of standards
- Rater is familiar with the employee’s work
Prior to the Interview
- Employee Preparation
- Give blank copy of forms to employee
- Have the employee rate him/herself
- Scheduling
- Schedule at least an hour for the performance review
- Schedule the review in a private, neutral location
- Supervisor Preparation
- Review ratings and reasons for the ratings
- Determine goals for the review
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Violation of the Organization’s Rules
- A rule must exist
- Employee must have known about the rule
- Violation of the rule must be proven
- Rule must be equally enforced
- Progressive discipline must occur
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Progressive Discipline
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- Punishment must fit the offense
- A reasonable attempt must be made to change behavior
- Counseling/training
- Oral warning
- Written warning
- Probation
- Suspension with pay
- Suspension without pay
- Transfer
- Reduction in pay
- Demotion
- Termination
Inability to Perform
- Standard of performance
- concrete
- reasonable
- job-related
- Documented failure to meet the standard
- critical incident logs
- work samples
- performance ratings
- Progressive discipline
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Employment-at-Will Doctrine
- Concept
- Limitations
- federal or state law
- public policy or interest
- implied contracts
- covenants of good faith and fair dealing
- At-Will Statements
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The Termination Meeting
Prior to the Meeting
- Ensure that the legal process has been followed
- Decide how much help you want to offer the employee
- Choose a neutral, private place
- Plan enough time for the meeting
- Schedule the meeting for the beginning of the week
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The Termination Meeting
During the Meeting
- Get to the point
- Rationally state the reasons for the decision
- Express gratitude for the employee’s efforts (if sincere)
- Offer whatever assistance you wish to provide
- Severance pay
- Recommendation
- Perform administrative duties
- Ask employee to gather personal belongings and leave
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The Termination Meeting
After the Meeting
- Maintain your self-esteem
- Protect yourself from guilt by reviewing the facts
- Help other employees cope
- be honest with them
- This will avoid “water cooler whispers”
- Avoid negative public statements about the fired employee’s character
- Notify all organizational units affected by employee’s departure
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