Understanding Rating Distortion

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SEU_MGT520_Module09_PPT_Ch06.pptx.pptx

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Chapter 6 Performance Analytics

6-1

Overview

Components of Appraisal Forms

Features of Appraisal Forms

Determining Overall Rating

Appraisal Period and Number of Meetings

6-2

Overview (Continued)

Who Should Provide Performance Information?

Understanding Intentional Rating Distortion: A Model of Rater Motivation

6-3

Appraisal Forms: Eight Desirable Features

6-4

Determining Overall Rating

Judgmental strategy

Consider every aspect of performance

Arrive at defensible summary

Mechanical strategy

Consider scores assigned to each section

Add weighted scores to obtain overall scores

6-5

Open-Ended (Comments) Sections

Challenges

Difficult to systematically categorize and analyze

Quality, length, and content vary

Tools to overcome challenges

Computer-aided text analysis (CATA) software

Establish goals of information provided

Training in systematic and standardized rating skills

6-6

Appraisal Period

Number of Meetings

Annual

May not provide sufficient opportunity for supervisor/employee discussion

Semi-annual

Quarterly

6-7

Six Types of Formal Meetings (Can Be Combined)

System Inauguration

Self-Appraisal

Classical Performance Review

Merit/Salary Review

Development Plan

Objective Setting

6-8

Who Should Provide Performance Information?

Employees should be involved in selecting

Which sources evaluate

Which performance dimensions

When employees are actively involved

Higher acceptance of results

Perception that system is fair

6-9

Who Should Provide Performance Information?

Direct knowledge of employee performance

Supervisors

Peers

Direct reports

Self

Customers

Employee Performance Monitoring and Big Data

6-10

Company Spotlight

Intermex required employees to download a mobile application to track client-related employee communication and travel

The app had to be active 24 hours a day, 7 days a week to function effectively

When an employee deactivated the app, she fired for noncompliance

Employee sued Intermex for $500,000

Lesson:

Critical to consider employee reactions before implementing employee performance monitoring systems

6-11

Intermex and the lawsuit

https://www.youtube.com/watch?v=e7VZyEXQH_c

Why was Intermex subjected to a lawsuit?

What could have Intermex done differently?

What are other some of the advantages and disadvantages of using employee performance monitoring?

6-12

Recommendations to increase chances of effective employee performance monitoring

Be Transparent

Be aware of all potential employee reactions

Use it for learning and development

Restrict use to job-related behaviors and results

6-13

Employee Performance Monitoring

https://www.youtube.com/watch?v=yBmAtUWxCXU

Reflect on the different reactions to employee performance monitoring in this video. Why do they exist? Are they justified?

What are some of the recommendations for employee performance monitoring explained here?

What are some of the advantages? What are some of the disadvantages?

6-14

Disagreement Across Sources of Performance Data

Expect disagreements

Ensure employee receives feedback by source

Assign differential weights to scores by source, depending on importance

Ensure employees take active role in selecting which sources will rate which dimensions

6-15

Understanding Intentional Rating Distortions: A Model of Rater Motivation

Types of Rating Errors

Intentional errors

Rating inflation

Rating deflation

Unintentional errors

Due to complexity of task

6-16

Intentional Rating Errors

Influenced by

Motivation to provide accurate ratings

Motivation to distort ratings

Motivation is determined by

Whether rater expects consequences of accurate ratings

Whether probability of receiving rewards or punishments will be high if accurate ratings are provided

6-17

Rating Inflation and Deflation

Rating Inflation (also called leniency error)

When raters assign high lenient ratings to most or all employees

Rating Deflations (also called severity error)

When raters assign low ratings to most or all employees

6-18

Motivation for Rating Distortion

6-19

Reducing Intentional Rating Distortion

Recommendations:

Provide incentives for providing accurate ratings

Increase accountabilities

Have raters justify their ratings

Have raters justify their ratings in a face-to-face meeting

6-20

Motivation—What’s in It for Me?

Benefits of providing accurate ratings need to outweigh costs

Assessing the performance of the supervisor in implementing and communicating performance management

Tools for providing accurate ratings (e.g., training on how to conduct appraisal interview)

6-21

Appraisal Forms

Characteristics of Appraisal Forms

Determining Overall Rating

Appraisal Period and Number of Meetings

Who Should Provide Performance Information?

Understanding Intentional Rating Distortion: A Model of Rater Motivation

Quick Review

6-22

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