Gathering Performance

Information
CHAPTER 6
Objectives

By the end of this chapter, you will be able to:

 Design and understand appraisal forms
 Compute overall performance scores
 Plan performance review periods and meetings
 Use and evaluate multiple sources of performance information
 Handle rating disagreements and biases
 Apply training to reduce rating distortions
 6.1 Importance of Appraisal Forms

•Core tool for performance assessment

•Can be paper or electronic
•Electronic forms: easy to store, share, analyze, and update
 Key Components of Appraisal Forms
(Overview)
•Employee Information: job, department, evaluation dates, salary,
supervision period
•Accountabilities & Objectives: responsibilities, goals, weights, context
•Competencies & Indicators: behavioral criteria
•Major Achievements & Contributions
•Developmental Achievements & Goals: workshops, courses,
future skill plans
•Stakeholder Input: peers, customers, others
•Employee Comments
•Signatures: employee, rater, supervisor, HR
 Notes on Administration

•Developmental content can be included in the form or separate

forms
•Stakeholder input often collected separately to match relevant
dimensions
•Employee comments improve fairness and legal compliance
•Signatures confirm review and acknowledgment
 Summary Table – Components at a
Glance
Component Description
Job, dept., evaluation dates,
Employee info
salary
Objectives & accountabilities Responsibilities, goals, context
Competencies & indicators Behavioral criteria
Achievements Major accomplishments
Achievements, plans, future
Development
goals
Stakeholder input Peers, customers, etc.
Employee comments Employee feedback
 6.2 Characteristics of Appraisal
Forms

•No universal “perfect” form—depends on purpose (behavioral, results,

developmental)
•One size does not fit all; components vary based on
administrative vs. developmental goals
 Desirable Features of Appraisal
Forms

•Simplicity – Easy to understand, administer, and complete

•Relevancy – Directly linked to job tasks and responsibilities
•Descriptiveness – Provides evidence of performance, clear
to outsiders
•Adaptability – Can be customized for different roles and
departments
•Comprehensiveness – Covers all major performance areas
for the review period
 More Desirable Features

•Definitional Clarity – Competencies and results clearly defined

for all raters
•Communication – Meaning of components must be understood
by all participants
•Time Orientation – Addresses past and future performance expectations
6.3 Determining Overall Rating

 Strategies for Computing Overall Score

 1. Judgmental Method
 Rater considers all aspects of performance holistically
 Relies on rater’s ability to assign a fair, accurate summary
 May introduce personal bias
 2. Mechanical Method
 Scores from each section are weighted and added
 Provides objective, verifiable, and consistent results
 Weighting reflects the relative importance of each performance dimension
Example – Mechanical Scoring

•Competencies weighted:
•Follow-Through/Dependability = 0.7
•Decision Making/Creative Problem Solving = 0.3
•Scores multiplied by weight, then summed for first and second
half of review period
•Key results weighted similarly (KR #1 = 0.6, KR #2 = 0.4)
•Overall score = average of competency and key results scores → e.g., 2.85 →
“Above Average (Figure 6.3) page 140 & 141
 Judgmental vs Mechanical

•Judgmental: rater may ignore weights, assign equal or subjective importance

•Mechanical: uses clearly specified weights → more objective and fairer

•Mechanical method generally superior due to reduced bias and verifiability

6.4 Appraisal Period and Number of
Meetings

 Appraisal Period:
 Typical review cycles: Annual, Semiannual, or Quarterly
 Frequent reviews (semiannual/quarterly) provide more
opportunities to discuss performance issues and adjust goals
 Examples:
 Hamilton Standard: Semiannual modified 360° appraisal
 Synygy, Inc.: Quarterly reviews with coworker feedback to
encourage growth
Timing of Reviews

 Option 1: Around employee’s anniversary date

 Advantage: Supervisor workload spread out
 Disadvantage: Rewards not tied to fiscal year
 Option 2: Toward end of fiscal year
 Advantage:Uniform cycle for all employees, easier cross-
comparisons and reward distribution
 Disadvantage: Supervisor workload concentrated
 Best practice: Ongoing communication throughout the year
reduces surprises
Formal Meetings in Performance
Management

•Six possible formal meetings:

[Link] Inauguration
[Link]-Appraisal
[Link] Performance Review
[Link]/Salary Review
[Link] Plan
[Link] Setting
•Informal discussions occur continuously throughout the year
•Regular formal meetings signal importance of performance management
Purpose of Each Meeting

1. System Inauguration: Introduce system, explain roles and

responsibilities, schedule future meetings
2. Self-Appraisal: Employee evaluates own performance; no judgment
from supervisor
3. Classical Performance Review: Discuss past performance,
employee and supervisor perspectives
4. Merit/Salary Review: Separate discussion of rewards linked to
performance
5. Development Plan: Identify developmental needs, resources, and
skill-building steps
6. Objective Setting: Set behavioral and results-oriented goals for next
period
Combining Meetings – Johnsonville
Foods Example

 Not all six meetings occur separately; can be combined

under umbrella meetings
 Example system:
 Self-Appraisal, Classical Review, Merit Review,
Development Plan, Objective Setting
 Monthly mini-contracts: set goals, evaluate
performance, allocate rewards, adjust objectives
 Flexibility: Additional meetings can be added as needed
6.5 Who Provides Performance
Information?

 Primary source: Direct supervisor

 Observes employees regularly
 Understands performance standards and strategic goals
 Makes reward decisions
 Alternative sources:
 Peers
 Subordinates
 Self
 Customers
Supervisors as Sources

 Advantages:
 Knowledgeable about strategy and performance
 Can differentiate among multiple performance
dimensions
 Often the primary or only source in hierarchical
cultures
 Limitations:
 Potential bias based on personal preferences or goals
Peers, Subordinates, and Self

 Peers:
 Useful for teamwork and collaboration assessments
 Weaknesses: friendship bias, context effects, less discrimination among dimensions
 Subordinates:
 Evaluate leadership skills and managerial behaviors
 Best for developmental feedback; confidentiality ensures accuracy
 Self-Appraisals:
 Encourages participation, self-reflection, and developmental planning
 Limitations: leniency, bias; not recommended as sole source for administrative
decisions
Customers as Sources

 Useful for roles with high external/internal interaction

 Examples: sales, purchasing, HR services
 Can be costly and time-consuming
 Federal Express: uses customer satisfaction surveys
for performance evaluation
Disagreement Across Sources

•Overlapping dimensions are common (e.g., communication)

•Ratings may differ due to perspectives and observation contexts
•Key: Define behaviors and results clearly for each source
•Feedback should be source-specific (360-degree feedback approach)
6.6 A Model of Rater Motivation

 Why ratings may be distorted:

 Raters may have incentives to inflate or deflate scores
 Causes of Rating Distortion

Rating Inflation Rating Deflation

Maximize rewards Shock employees

Teach rebellious employees a
Encourage employees
lesson
Avoid creating records Send message to leave

Avoid confrontation Build record of poor performance

Promote undesired employees Make manager look good to
out of unit supervisor
Encouraging Accurate Ratings

 Strategies:
 Provide incentives for accuracy
 Increase accountability (justify ratings to higher
authority)
 Face-to-face justification improves accuracy
 Provide training for appraisal and feedback skills
 Note: Cognitive complexity of rating tasks can lead to
unintentional errors; training helps reduce them
6.7 Preventing Rating Distortion
through Rater Training

 Objective of Rater Training Programs:

 Provide raters with tools to implement the performance
management system effectively
 Prevent rating distortion (intentional or unintentional)
 Align rater goals with organizational performance
management goals
Focus Areas of Rater Training
Programs

•Purpose of Performance Management System

•Overview, benefits, and objectives
•Identify & Rank Job Activities
•Conduct job analysis
•Understand key accountabilities & competencies
•Observe, Record, & Measure Performance
•Focus on relevant behaviors
•Proper documentation
 System Knowledge & Minimizing
Errors

•Appraisal form & system mechanics: Understand each section, meeting

schedule, and expectations
•Minimizing rating errors: Address unintentional errors due to cognitive
demands