Performance Appraisal I

An HRM perspective

Goals
Developing a Performance Appraisal system. Present diversity of processes. Putting together a viable process that achieves strategic goals and/or fit

Expose to Diversity of forms. Then put it together at the end and compare different ways to do develop a PA system

Importance of PA
Related to Compensation Retention Training Unions are an important constraint Building organizational competencies and SHRM Legal issue Career development (not in book but more than training).

Purposes of Performance Appraisal

Motivation and productivity Strategic planning and change Legal issues

Motivation
Pay for performance (Extrinsic) The power of feedback (Desire to do a better jobintrinsic). Forshadow: Supervisorsdo you give straight and honest feedback or tend to gloss over minor problems or even significant problems.

Strategic issues.
First, any change effort needs performance monitoring. Second detecting problems (organizational not individual). Third, linking PA to organizational competencies.

Legal issues
If PA is used for compensation, termination, or promotion and done poorly (low validity and reliability) then open to discrimination. See text p 460.

Developing a system
Need to consider purposes of PA Need to consider type of fit and culture Need to consider what type of performance is most critical in an organization. Different approaches.

Deciding what to measure

Traits/values Behaviors Objective criteria. Types of fit.

How does one measure each of these?

Take a job. Meet in teams. Discuss.

Important Issues
What are the best indicators of job performance. What behaviors are critical for organizational effectiveness, group performance, individual performance. Tradeoffs in general Types of fit.

Cont.
Who is best able to evaluate job performance Self, supervisor, electronic, peers subordinates, customers.

What is done on your job past job What do you like? What do you not like?

How do you know what to use

Legal issues Strategic and type of fit. Relevance of measurement

Benchmark

Effectiveness/Legal issues
Should you 86 your PA. Why Why not. What are the alternatives in lieu of formal PAs.

Making PAs more effective (and legally defensible.

Side track
Biases in PA. Largely Halo/horns effect Lots of bias towards leniency Lots of bias towards recency. Prejudices (more than sex/race etc).

Normal supervisor PA
Saturated with biases and better not done that just the typical check list done by supervisor. Not reliable Not valid

Efforts to increase effectiveness

All in the forms and in assessor training.

Problems with Leniency

Forced distribution Comparative rankings. Not the best for all situations. But how you address it.

Problems with accuracy

So not get supervisor directly involved.

One approach
Objective indicators of performance. These are not perfect either. Mortgage Loans. Total loan in collectable stage. What could be some problems.

Second approach
Customer evaluations of treatment. Each customer given a chance to complete. Based on total of all. Mostly suited for service industry and direct customer contact. Generally good when appropriate. When could this be a problem?

Behavior approaches
Take job analysis. Take performance dimensions. Assess based on those performance dimensions. While valid not necessarily reliable.

Behavior Check list

List desirable behaviors. Dichotomous. Usually done. Problems if scale. Open to bias. Similar take same behavior. Order them in terms of doing a quality job. Put into a scale. Hard to do. Takes a Team BARS

Advantages and disadvantages of each

Type of fit, strategy, purpose of appraisal are all relevant to determine which to use.

Valid and Reliable PA

Outcomes better than processes multiple raters better than single rater Supervisory training

Content validity
PA systems based on systematic analysis of strategic competencies. PJ fit, PG, PO fit.

Show PA document during orientation

In teams
Hudsons we have had a lot of information about the company and the type of work. Customer driven company, values diversity. Image of what it takes to do the job. Some teaming but not that much.

Team to work on PJ fit--outcome based PJ fit behavior based-2 P-O fit Trait/values Make assumptions P-G fit behavior

Report Back
Overhead Describe aspects wish to assess and why. Write an abbreviated PA document assessing at least 3 aspects of performance.

Summary
Largely looked PA system--whats important. Strategic implications Consequently HR needs to have input into the development forms to reinforce the culture of the organization HR perspective on PA.

Read the article on 360 degree PA

Have a lot of information. Would 360 degree feedback be good in your organization/last employer Why or why not. If yes, what would be necessary to put it into place. Next class Supervisor perspective. Training. http://edis.ifas.ufl.edu/scripts/htmlgen.exe?DOC UMENT_HE749 copy it as role model. Bring it to class.