Evaluating Employee Performance

Question 1

Performance Appraisals

Answer 1

• Performance appraisals in work organizations measure worker performance against predetermined standards.
• For workers, they are linked to career advancement, serving as the basis for pay increases, promotions, and feedback for improvement.
• Supervisors use performance appraisals for personnel decisions and to provide constructive feedback.
• Performance appraisals facilitate organizational communication by encouraging interaction between workers and supervisors.
• For the organization, performance appraisals help assess the productivity of individuals and work units.

Question 2

Issues in Job Performance

Answer 2

• Job performance can be measured using objective criteria (quantifiable outputs) or subjective criteria (ratings by coworkers/supervisors).

Question 3

Issues in Job Performance

Objective Criteria

Answer 3

• Objective criteria are less prone to bias and distortion.
• Usually more directly tied to bottom-line assessments of organizational success. However, they may not capture all aspects of job performance and can focus too much on specific, quantifiable outcomes.
• Certain jobs, like those of graphic artists or executives, may not lend themselves well to objective assessment.
• Additionally, some aspects of job performance, such as work quality or initiative, are challenging to assess objectively.

Question 4

Issues in Job Performance

Subjective Criteria

Answer 4

• Subjective criteria are often easier and less costly to obtain.
• They can assess variables like motivation or team spirit that are difficult to measure objectively.
• However, they can be influenced by biases and may lack direct links to bottom-line outcomes.

Question 5

Performance Criteria

Criterion Relevance

Answer 5

• How well the performance appraisal methods match job requirements.
• For example: the performance criteria for
  a bookkeeper should deal with knowledge of accounting procedures and producing work that is neat and error-free, not with personal appearance or oral communication skills.

Question 6

Performance Criteria

Criterion Contamination

Answer 6

• How much performance appraisals include factors that hinder the accurate evaluation of job performance.
• Appraiser biases are a common source of criterion contamination in performance appraisals.
• Criterion contamination can also occur when extraneous factors influence an employee’s perceived success or failure.
• For example: a sales manager may receive a poor appraisal due to low sales levels, even if the cause is attributed to managing an inexperienced sales force rather than the manager’s performance.

Question 7

Performance Criteria

Criterion Deficiency

Answer 7

• The degree to which a criterion falls short of measuring job performance.
• The goal is to minimize criterion deficiency to ensure a comprehensive evaluation.

Question 8

Performance Criteria

Criterion Usefulness

Answer 8

• The extent to which a performance criterion is usable in appraising a particular job.

Question 9

Performance Ratings

Supervisor Appraisals

Answer 9

• Refers to the evaluation of employee performance conducted by individuals in supervisory roles within an organization.
• Supervisors’ assessments demonstrate high test-retest reliability, adding to their credibility.
• Supervisors often have the authority to provide rewards for effective performance, enhancing the effectiveness of performance appraisals.
• There’s a risk of bias in supervisor appraisals, as personal relationships or subjective judgments may influence evaluations.
• Supervisors may have a limited perspective on employees’ performance, as they primarily interact with them within the hierarchical structure of the organization.

Question 10

Performance Ratings

Self Appraisals

Answer 10

• Involve employees assessing their own job performance, usually in conjunction with evaluations from supervisors.
• Self-appraisals can motivate employees to be more committed to performance-related goals, as they take an active role in evaluating their own performance.
• Discrepancies between self-appraisals and supervisor ratings can lead to open dialogue between employees and supervisors.
• Self-appraisals tend to be more lenient and focus more on effort exerted rather than on performance accomplishments. This bias may result in inflated self-ratings that do not accurately reflect actual performance.
• Studies show large discrepancies between how supervisors rate performance and workers’ self-ratings. These discrepancies can indicate differing perceptions and may require training and frequent feedback to overcome.

Question 11

Performance Ratings

Subordinate Appraisals

Answer 11

• Involve assessments of supervisors or leaders conducted by the individuals they oversee or manage.
• Research suggests considerable agreement between subordinate and supervisor ratings, indicating the reliability of subordinate assessments as a valid measure of performance.
• Ratings from subordinates have been associated with subordinate job satisfaction, highlighting their importance in fostering positive workplace dynamics.
• Subordinate ratings may be influenced by factors such as personal biases, conflicts, or misunderstandings, leading to inaccuracies in the assessment process.
• Subordinates may lack complete visibility into a supervisor’s responsibilities, challenges, and constraints, leading to incomplete or inaccurate assessments.

Question 12

Problems & Pitfalls in Performance Appraisals

Halo Effects

Answer 12

• An overall positive evaluation of a worker based on one known positive characteristic or action.
• Halo effects can bias performance appraisals, leading to inaccurate assessments of an individual’s performance.

Question 13

Problems & Pitfalls in Performance Appraisals

Recency Effects

Answer 13

• The tendency to give greater weight to recent performance and lesser weight to earlier performance.
• Performance assessments often rely on the appraiser’s memory of the worker’s past performance, leading to problems related to accurate recall.
• The recency effect can lead to biased evaluations, where recent performance disproportionately influences the overall appraisal, overshadowing earlier achievements or shortcomings.
• To mitigate the recency effect, organizations can implement more frequent performance feedback sessions to provide timely assessments and reduce reliance on memory.

Question 14

Problems & Pitfalls in Performance Appraisals

Personal Biases

Answer 14

• Workers may be subject to biases based on their sex, race, age, or physical characteristics, including disabilities.
• Pregnancy can also be a source of negative bias in performance appraisals.
• Having a close personal relationship with a supervisee or mere liking for an individual can bias appraisals in a favorable direction.
• Making appraisers more aware of their biases and providing training on unbiased evaluation techniques can help mitigate personal biases.