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frequently do this by taking unauthorized breaks, intentionally working slowly, and

wasting company resources. Perhaps more serious is property deviance, which includes

actions that destroy the assets of an organization. Employees who do this sabotage

equipment, misuse expense accounts, or steal materials and products.

Production deviance

Harmful employee actions aimed at reducing the speed and accuracy of production

processes.

Property deviance

Harmful employee actions aimed at destroying assets of the organization.

Counterproductive behaviors can also be targeted toward specific individuals. These

actions fall into the categories of political deviance and personal aggression. Political

deviance occurs when an employee does things that put other employees at a

disadvantage. Examples include showing favoritism, gossiping about coworkers, and

competing with others in nonbeneficial ways. The more serious form of counterproductive

behavior directed toward individuals is personal aggression, which is represented by

hostile acts such as violence and sexual harassment. Employees working in groups

lacking civility and respect are particularly prone to act aggressively.

Political deviance

Harmful employee actions designed to harm the performance and careers of other

employees.

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1.

2.

3.

Personal aggression

Harmful employee actions that seek to personally harm coworkers.

As described in the “Technology in HR” feature, organizations use a number of tactics to

reduce counterproductive behavior. Motivation that comes from a sense of being treated

fairly is a very important factor influencing counterproductive performance. Employees

are more prone to engage in counterproductive performance when they perceive that the

organization treats them unfairly. Having a leader who is ethical, fair, and not abusive is

a critical deterrent of counterproductive behavior. Thus, organizations and leaders can

reduce counterproductive behavior by communicating an interest in the well-being of

employees, providing developmental opportunities, and acting in an ethical manner

themselves. In addition, employees who are more conscientious, more agreeable, higher

in self-mastery, less anxious, and less driven by a desire to obtain rewards indulge in less

counterproductive behavior, even when they do not feel support from the organization.

CONCEPT CHECK

What are three different types of performance that fall directly under the general

performance factor?

How is citizenship performance different from task performance?

What are four types of counterproductive performance behavior?

LEARNING OBJECTIVE 3: How Is Performance Measured?

The process of measuring what each employee contributes, called performance

appraisal, is a necessary but difficult part of managing others. Indeed, for many

managers, performance appraisal is near the bottom of the list of things they want to do.

Perhaps more troublesome is that a majority of workers say that performance reviews do

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nothing to improve their future effectiveness. What makes assessing performance so

tough? One reason managers dislike

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performance appraisal is the difficulty of capturing all areas of contribution. Employees

contribute in a number of different ways, and it is often hard to accurately evaluate their

efforts with a numerical score. Another reason is that many employees seem to feel that

performance ratings are biased. They see the process as sometimes unfair. A starting point

for thinking about performance measures is thus to consider ways evaluations can be

inaccurate. After examining general sources of inaccuracy in performance measures, we

will explore various types of performance measures. We will also discuss problems that

these specific measures have, and the formats—or specific types of questions—used to

provide performance ratings.

Performance appraisal

The process of measuring what employees contribute to the organization.

Technology in HR: MONITORING ELECTRONIC ACTIVITY

Increased use of computers and other technology has the potential to make workers more

productive. But it is also possible that workers will become less efficient if they use the

technology in counterproductive ways. The use of company computers for purposes other

than work completion is sometimes referred to as cyberloafing, and it is not unusual.

Over 60 percent of workers report surfing the Web at least once a day for personal

purposes. Workers themselves report spending about 1.5 hours per week visiting websites

unrelated to work, whereas human resource managers suggest the actual time is closer to

8 hours. Such problems have prompted as many as 76 percent of organizations to

monitor employees’ Internet connections.

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One way of monitoring employees’ computer usage is through the use of special software.

The software is able not only to block access to websites but also to provide supervisors

with reports listing the websites visited. Using such software can, however, communicate

lack of trust. Research thus suggests that companies need to be careful when monitoring

electronic activities.

Employees are more accepting of electronic monitoring when they are given advance

notice that it will be used. Monitoring is also less threatening if employees feel general

support from the organization. Using monitoring to show employees how they can

improve rather than to wield punishment is one way to increase the acceptance of

electronic monitoring. On the whole, evidence suggests that electronic monitoring can

deter counterproductive actions, but it is most effective when used in ways that do not

violate employee perceptions of trust and fairness.

Sources: G. Stoney Alder, Terry W. Noel, and Maureen L. Ambrose, “Clarifying the

Effects of Internet Monitoring on Job Attitudes: The Mediating Role of Employee Trust,”

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Information & Management 43 (2006): 894–903; Deborah L. Wells, Robert Moorman,

and Jon M. Werner, “The Impact of the Perceived Purpose of Electronic Performance on

an Array of Attitudinal Variables,” Human Resource Development Quarterly 18, no. 1

(2007): 121–138.

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CONTAMINATION AND DEFICIENCY AS SOURCES OF INACCURACY

Basic problems with performance appraisal are shown in Figure 8.3. One circle in the

figure represents the employee’s true contribution to the organization. The other circle

represents contribution as it is measured. Of course, the objective of performance

appraisal is to have the two circles overlap as much as possible. However, two types of

error often interfere with achieving this objective.

One error is contamination, which occurs when things that should not be measured are

included in an employee’s performance evaluation. For instance, a supervisor who is

racially biased might give lower ratings to an employee from a minority group. A measure

of the number of computer circuits that an employee assembles might be contaminated if

the employee must use machinery that frequently breaks down.

Contamination

A problem with performance appraisal that occurs when things that should not be

included in the measurement are included.

The second type of error is deficiency, which occurs when things that should be included

in an employee’s performance evaluation are not measured. A measure that fails to

include citizenship behavior is deficient because it does not recognize actions that aid

coworkers. A monthly measure of insurance sales might also be deficient if it fails to

include an assessment of effort expended to build relationships that will result in future

sales.

Deficiency

A problem with performance appraisal that occurs when things that should be included in

the measurement are not included.

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A good appraisal system minimizes contamination and deficiency. The concepts of

deficiency and contamination can also help guide our assessment of different types of

performance measures.

GENERAL TYPES OF PERFORMANCE MEASURES

Organizations use a number of different methods for appraising performance. In general,

performance appraisal methods vary in two important ways: whether they are subjective

or objective and whether they focus on process or outcome.

Figure 8.3: Sources of Inaccuracy in Performance Measurement.

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Objective Versus Subjective Measures

Beginning in elementary school, students encounter differences between objective and

subjective measures of performance. Teachers grade math tests objectively by identifying

how many of the problems were solved correctly. Such objective performance

measures are based on counts of either behavior or outcomes. In contrast, writing

assignments are given subjective grades that reflect the teacher’s evaluation of quality.

These subjective performance measures are based on judgments from raters such as

teachers and supervisors.

Objective performance measures

Performance measures that are numerical and based on counts of behaviors or outcomes.

Subjective performance measures

Performance measures that represent judgments made by raters.

When it comes to job performance, objective and subjective measures often don’t agree.

An important question thus concerns which type of measure is best. Most people believe

the answer is that objective measures are best. It is easy to see how raters could have

biases that may reduce the accuracy of subjective measures. For example, workers who

have a more positive attitude receive higher evaluations from supervisors but do not

generally perform better on objective measures. To many people, objective measures

thus seem more consistent and fair. However, objective measures also have problems. In

the case of employees with a positive attitude, it may be that their cooperation with others

represents a contribution that the objective measure fails to capture. Indeed, subjective

ratings have been shown to capture not only task performance but also citizenship

performance, making them less deficient than objective measures in many contexts.

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Another problem with objective measures can be seen in a common example involving

employee productivity. Suppose a supervisor has two employees working on a production

line with two machines that manufacture cell phone components. One employee produces

20 components every hour. The other produces only 15. The objective indicator of

performance suggests that the first employee contributes more to the organization.

However, the supervisor may know that one production machine frequently breaks down.

Knowing that the employee who only produces 15 components frequently stops to repair

the machine may cause the supervisor to provide a higher subjective rating for that

person. In such a case, the objective rating is deficient because it does not capture an

important part of overall contribution: repairing the machine.

An example that is closer to home for most college students concerns grading on an

accounting exam. A purely objective measure will not give credit for a problem unless the

final answer is correct. However, students often ask for and receive partial credit based on

the grader’s judgment that certain parts of the problem were done correctly. The end

result is a combination of objective and subjective measurement. The part of performance

where the objective measure is deficient is captured in the subjective measure. In

summary, then, objective measures are not necessarily foolproof. It is usually desirable for

assessments of job performance to include both objective and subjective measures.

Outcome Versus Behavioral Measures

Performance measures also differ in whether they focus on outcomes or behaviors.

Outcome measures assess end results such as number of automobiles repaired or success

of an advertising campaign. Behavioral measures place more emphasis on the actions of

employees. Typical behavioral measures

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include following company procedures for reacting to customer complaints and using

appropriate processes to move and store goods in a warehouse.

We can see some of the differences in outcome and behavioral measures by looking at

organizations that employ sales representatives. One approach to managing sales

representatives focuses on outcome measures. Organizations adopting this approach

identify top performers as the individuals who sell the most products and services.

Bottom-line results are most important, and methods of obtaining sales are not

specifically evaluated as part of performance appraisal. This approach provides sales

representatives with a great deal of autonomy. Individual representatives are expected to

use their own knowledge and skills to determine the best way to meet the needs of

individual customers.

A different approach to managing sales representatives focuses on behavioral measures.

Organizations using this approach have preferred ways of interacting with customers and

obtaining sales, and they provide sales representatives with very specific descriptions of

appropriate selling behavior. Top performers simply carry out the actions specified by the

organization. It is assumed that desirable outcomes will result when representatives

engage in the desired actions. Following company procedures is thus emphasized more

than simply making a high number of sales.

Outcome and behavioral measures can each suffer from deficiency and contamination,

suggesting that both should be assessed in most situations. However, which type of

measure dominates often depends on the organization’s competitive strategy.

Organizations pursuing cost-focused strategies tend to have production processes that are

clearly established. In these organizations, research and experience have determined the

most efficient production methods, and the objective of low-cost production is best

accomplished by having employees follow prescribed procedures. Behavioral measures

are thus most often linked with Loyal Soldier and Bargain Laborer HR strategies.

In contrast, outcome measures are most common for organizations pursuing Committed

Expert and Free Agent HR strategies. These organizations rely on creativity and

innovation. Optimal methods for producing goods and services are often unknown. High-

performing employees are expected to use their unique knowledge and skills to produce

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the desired outcome of delivering superior goods and services. In these cases, the

outcome, or end result, is what matters most.

COMMON PROBLEMS WITH PERFORMANCE MEASURES

Objective and subjective measures, as well as outcome and behavioral measures, suffer

from several potential problems. For subjective measures, bias can be introduced when

humans provide ratings. People are not perfect information processors, and subjective

ratings based on human judgments are often both contaminated and deficient. Objective

and outcome measures are also imperfect, as they sometimes hold employees accountable

for things they cannot control. Finally, all types of performance ratings can suffer from

inconsistency, because performance at one point in time is likely different from

performance at another time. We can thus identify the following common problems with

performance appraisal measures: rater errors and bias, situational influences, and

changes over time.

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How Do We Know? WHO IS MOST LIKELY TO PROVIDE ERROR-FREE RATINGS?

Do some people provide better performance measures than others? If so, who are the best

raters? Kok-Yee Ng, Christine Koh, Soon Any, Jeffrey Kennedy, and Kim-Yan Chan

explored ratings in the Singapore Armed Forces to answer such questions.

Military officers received ratings from supervisors, peers, and subordinates. The ratings

were then examined for differences in halo and leniency (giving everyone a high score).

Subordinates were more likely than peers or superiors to provide ratings with halo and

leniency, and peers were more likely than supervisors to demonstrate leniency. These

errors for subordinates were most pronounced when the rater held stronger beliefs in the

need for hierarchy and respect for authority. Subordinates and peers with a stronger

sense of harmony and avoiding embarrassing others were also more likely to provide

lenient ratings.

The Bottom Line. Some raters are more prone to errors than others. In particular,

subordinates and peers appear to provide ratings with error. The authors thus conclude

that organizations need to ensure that raters are trained to reduce their idiosyncratic

tendencies.

Source: Kok-Yee Ng, Christine Koh, Soon Ang, Jeffrey C. Kennedy, and Kim-Yin Chan,

“Rating Leniency and Halo in Multisource Feedback Ratings: Testing Cultural

Assumptions of Power Distance and Individualism–Collectivism,” Journal of Applied

Psychology 96 (2011): 1033-1044.

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Rater Errors

Research suggests that raters commit a number of errors when they rate employee

performance. Rating errors occur when raters provide assessments that follow an

undesirable pattern or when the rater does not properly account for factors that might

influence assessments. As explained in the “How Do We Know?” feature, some raters are

more prone to errors than others. One common error involves the pattern of results that

arises when a rater dislikes separating people into categories. This leads to central

tendency error, which is the pattern of placing almost everyone in the middle of the

scale.

Central tendency error

A rating error that occurs when raters give almost all employees scores in the middle of

the scale.

Another common problem occurs when a rater unintentionally compares people with one

another. Suppose a rater is evaluating three employees and one of them is an outstanding

performer. Observing the high performer may raise the rater’s expectations so that he

gives the other two employees low ratings even though their performance is above

average. This type of error is called contrast error.

Contrast error

A rating error that occurs when raters unknowingly allow comparisons among employees

to influence ratings.

A different sort of error occurs when a rater bases an assessment on a general impression

of an employee rather than on the employee’s specific contributions. Over an extended

period, the rater observes a number of different behaviors and forms an overall judgment

of the contribution of the employee. The rater may then judge specific aspects of

performance—such as quality of work, quantity of work, and cooperation with others—in

terms of this overall perception of the employee, rather than judging each aspect of

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performance separately. For instance, a rater may be quite accurate in identifying a truck

driver as a good employee but may not really be aware of whether the driver is

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