What is the purpose of performance appraisals for the employer?
To make administrative decisions (promotions, raises, terminations) and ensure legal compliance.
What is the purpose of performance appraisals for the supervisor?
To provide structured evaluations, feedback, and identify training needs.
What is the purpose of performance appraisals for the worker?
To receive feedback, guide career development, and gain recognition.
What is criterion relevance?
How well performance criteria reflect actual job performance.
What is criterion usefulness?
Whether the performance measure is practical and helpful for decision-making.
What is criterion contamination?
When outside factors influence scores that are unrelated to job performance.
What is criterion deficiency?
When important aspects of the job are not included in the performance measure.
Objective vs. Subjective criteria – what’s the difference?
Objective = measurable outcomes (sales, output). Subjective = ratings/judgments (teamwork, leadership).
What is the most common source of performance appraisals?
Supervisor appraisals.
What is the strength and weakness of self-appraisals?
Strength = encourages self-reflection. Weakness = inflated ratings, less objective.
What is the strength and weakness of peer appraisals?
Strength = insight into teamwork. Weakness = influenced by friendships/rivalries.
What is the strength and weakness of subordinate appraisals?
Strength = upward feedback on leadership. Weakness = employees may fear retaliation.
What is the strength and weakness of customer appraisals?
Strength = useful in service jobs. Weakness = customer bias can distort results.
What is 360-degree feedback?
Combining multiple sources (supervisor, peers, subordinates, customers, self).
What is the ranking method of performance appraisal?
Employees are ordered from best to worst.
What is the paired comparison method?
Each employee is compared directly with every other employee.
What is the forced distribution method?
Employees are placed into fixed categories (e.g., top 20%, bottom 10%).
What is leniency error?
Rating all employees too high.
What is severity error?
Rating all employees too low.
What is central tendency error?
Rating everyone as “average.”
What is the halo effect?
Letting one positive trait influence all ratings.
What is the recency effect?
Overweighting recent performance over the entire period.
What is causal attribution bias?
Misjudging the cause of performance (blaming personal flaws instead of situational factors).
What is the actor-observer bias in appraisals?
Raters blame others’ failures on traits, but excuse their own as situational.