This document discusses components of performance appraisal forms and processes. It describes key sections of appraisal forms such as employee information, objectives, competencies, achievements, and development plans. It also outlines desirable features like simplicity and comprehensiveness. The document examines strategies for determining overall performance ratings and discusses appropriate appraisal periods and meeting frequency. It analyzes sources of performance information like supervisors, peers, customers and considers how to address disagreement across sources. Finally, the document explores a model of rater motivation and how training programs can prevent rating distortion.

1. Gathering Performance Information:
Overview
• Appraisal Forms
• Characteristics of Appraisal Forms
• Determining Overall Rating
• Appraisal Period and Number of Meetings
• Who Should Provide Performance Information?
• A Model of Rater Motivation
• Preventing Rating Distortion through Rater
Training Programs
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2. Major Components of Appraisal Forms (1)
• Basic Employee Information
• Accountabilities, Objectives, and Standards
• Competencies and Indicators
• Major Achievements and Contributions
• Stakeholder Input
• Employee Comments
• Signatures
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3. Major Components of Appraisal Forms (2)
(could be included in a separate form)
• Developmental Achievements
• Developmental
– Needs
– Plans
– Goals
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4. Desirable Features for All Appraisal Forms
1. Simplicity
2. Relevancy
3. Descriptiveness
4. Adaptability
1. Comprehensiveness
2. Definitional Clarity
3. Communication
4. Time Orientation
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5. Determining Overall Rating
• Judgmental strategy
• Mechanical strategy
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6. Appraisal period
Number of Meetings
• Annual
• Semi-annual
• Quarterly
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7. When Review Is Completed
• Anniversary date
– Supervisor doesn’t have to fill out forms at same
time
– Can’t tie rewards to fiscal year
• Fiscal year
– Rewards tied to fiscal year
– Goals tied to corporate goals
– May be burden to supervisor, depending on
implementation
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8. 6 Types of Formal Meetings
(can be combined)
• System Inauguration
• Self-Appraisal
• Classical Performance Review
• Merit/Salary Review
• Development Plan
• Objective Setting
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9. Who Should Provide Performance
Information?
Employees should be involved in selecting
• Which sources evaluate
• Which performance dimensions
When employees are actively involved
• Higher acceptance of results
• Perception that system is fair
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10. Who Should Provide Performance Information?
Direct knowledge of employee
performance
• Supervisors
• Peers
• Subordinates
• Self
• Customers
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11. Supervisors
• Advantages
– Best position to evaluate performance vs.
strategic goals
– Make decisions about rewards
• Disadvantages
– Supervisor may not be able to directly
observe performance
– Evaluations may be biased
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12. Peers
• Advantages
– Assess teamwork
• Disadvantages
– Possible friendship bias
– May be less discriminating
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13. Subordinates
• Advantages
– Accurate when used for developmental
purposes
– Good position to assess some competencies
• Disadvantages
– Inflated when used for administrative purposes
– May fear retaliation (confidentiality is key)
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14. Self
• Advantages
– Increased acceptance of decisions
– Decreased defensiveness during appraisal
interview
– Good position to track activities during review
period
• Disadvantages
– May be more lenient and biased
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15. Customers (external and internal)
• Advantages
– Employees become more focused on
meeting customer expectations
• Disadvantages
– Time
– Money
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16. Disagreement Across Sources
• Expect disagreement
• Ensure employee receives feedback by
source
• Assign differential weights to scores by
source, depending on importance
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17. Types of Rating Errors
• Intentional errors
– Rating inflation
– Rating deflation
• Unintentional errors
– Due to complexity of task
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18. Expected Positive and
Negative Consequences
of Rating Accuracy
Probability of
Experiencing Positive &
Negative Consequences
Expected Positive and
Negative Consequences
of Rating Distortion
Probability of
Experiencing Positive &
Negative Consequences
Motivation to Provide
Accurate Ratings
Motivation to Distort
Ratings
Rating Behavior
A Model of Rater Motivation

19. Motivations for Rating Inflation
• Maximize merit raise/rewards
• Encourage employees
• Avoid creating written record
• Avoid confrontation with employees
• Promote undesired employees out of unit
• Make manager look good to his/her
supervisor
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20. Motivations for Rating Deflation
• Shock employees
• Teach a lesson
• Send a message to employee
• Build a written record of poor
performance
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21. Prentice Hall, Inc. © 2006
Prevent Rating Distortion through
Rater Training Programs

22. Rater Training Programs should cover:
• Information
• Motivation
• Identifying, observing, recording and
evaluating performance
• How to interact with employees when
they receive performance information
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23. Information - how the system works
• Reasons for implementing the
performance management system
• Information on the appraisal form and
system mechanics
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24. Motivation – What’s in it for me?
• Benefits of providing accurate ratings
• Tools for providing accurate ratings
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25. Identifying, observing, recording, and evaluating
performance
• How to identify and rank job activities
• How to observe, record, measure
performance
• How to minimize rating errors
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26. How to interact with employees
when they receive performance information
• How to conduct an appraisal interview
• How to train, counsel, and coach
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