RESEARCH PROJECT FINAL RESEARCH PAPER

Research Question

Jannie Tolliver

PSYCH/700

January 21, 2014

Professor: Alfred Van Cleave

Identify at least three reasons why we use performance appraisals and identify the advantages and disadvantages for each. What are some common errors that raters might commit when completing performance appraisals? How can I/O psychologists help these raters avoid errors?

Performance appraisal is a process performed by management to determine if requirements for a position have been accomplished successfully. Performance appraisals for most company should be one of the most important tools that human resources utilizes. The main purpose of appraisals are to improve human resource. Performance appraisals not only increases effectiveness and efficiency in an organization, but it should also serve as motivation for the employees. It is important that managers get employees involved in the process, in order to make them feel that the process is just as important as the job they perform every day. It is also important that managers make the communication a two way street, so the employees buy into the process that could possibly lead to a salary increase and or becoming a better employee. This process is accomplished by reviewing an employees' past performance and their present performance, identifying their strengths and weaknesses, and identifying the potential for a promotion.

Three reasons why we use performance appraisals and the advantages and disadvantages.

· To measure employees' actual performances against what their expected performance.

· To help make decisions regarding salary, promotions, and improvement of job performance.

· To provide legal protection against lawsuits for wrongful termination.

There are advantages and disadvantages of performance appraisals, regardless of the disadvantages this process is necessary.

Advantages

1. There is a record of employees performance over a year of time.

2. It provides employees with feedback regarding their performance and allow them to make changes in the areas needed.

3. Provide the opportunity for employees to discuss issues they may have.

4. It provides management with the opportunity to develop goals for employees.

Disadvantages

1. It can be time consuming if there are many employees.

2. Can cause stress for everyone involved.

3. The results are subject to biases and rater errors.

4. If not done in correctly, it can be a negative experience.

Some common errors that raters might commit when completing performance appraisals:

1. The Halo Effect is the result of management forming a positive rating of an employee in one area and giving he or she high rating in all criteria. When management rates an employee with traits that is considered important and the employee is rated higher in all areas of rating than the employees who do not have those traits, this cause the halo effect.

2. The Leniency error happens when management rates an employee higher than his or her performance is worth. Some managers do this because they feel as if the employee will work harder to live up to the higher rating.

3. The Recency error happens when management rate an employee based on a goal the employee has recently accomplished. This happens if there is not sufficient documentation of the employee's performance during the appraisal period.

How can I/O psychologists help these raters avoid errors.

It is important that I/O psychologist know what actions to take to help raters avoid errors when completing performance appraisals in order to improve the rating process. Raters can be trained to make better performance appraisals. Rater training is a formal process in which appraisers are taught to make fewer halo, leniency, and central tendency errors. (Muchinsky. 2012, p.221). This type of training was developed to reduce errors during the performance appraisal process.

Reference

Muchinsky, Paul M. (2012). Psychology Applied to Work(10th ed.). Hypergrapic Press.