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Gathering Performance Information {Lecture Notes}

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Gathering Performance Information {Lecture Notes}

  1. 1. Herman Aguinis, University of Colorado at Denver Gathering Performance Information:Gathering Performance Information: OverviewOverview • 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
  2. 2. Herman Aguinis, University of Colorado at Denver Major Components of Appraisal FormsMajor Components of Appraisal Forms (1)(1) • Basic Employee Information • Accountabilities, Objectives, and Standards • Competencies and Indicators • Major Achievements and Contributions • Stakeholder Input • Employee Comments • Signatures
  3. 3. Herman Aguinis, University of Colorado at Denver (could(could be included in a separate form)be included in a separate form) • Developmental Achievements • Developmental – Needs – Plans – Goals
  4. 4. Herman Aguinis, University of Colorado at Denver Desirable Features for All Appraisal FormsDesirable Features for All Appraisal Forms • Simplicity • Relevancy • Descriptiveness • Adaptability • Comprehensiveness • Definitional Clarity • Communication • Time Orientation
  5. 5. Herman Aguinis, University of Colorado at Denver Determining Overall RatingDetermining Overall Rating • Judgmental strategy • Mechanical strategy
  6. 6. Herman Aguinis, University of Colorado at Denver Appraisal periodAppraisal period Number of Meetings • Annual • Semi-annual • Quarterly
  7. 7. Herman Aguinis, University of Colorado at Denver When Review Is CompletedWhen 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
  8. 8. Herman Aguinis, University of Colorado at Denver 6 Types of Formal6 Types of Formal MeetingsMeetings (can be combined)(can be combined) • System Inauguration • Self-Appraisal • Classical Performance Review • Merit/Salary Review • Development Plan • Objective Setting
  9. 9. Herman Aguinis, University of Colorado at Denver Who Should Provide PerformanceWho Should Provide Performance Information?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
  10. 10. Herman Aguinis, University of Colorado at Denver Who Should Provide Performance Information?Who Should Provide Performance Information? Direct knowledge of employee performance • Supervisors • Peers • Subordinates • Self • Customers
  11. 11. Herman Aguinis, University of Colorado at Denver SupervisorsSupervisors • 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
  12. 12. Herman Aguinis, University of Colorado at Denver PeersPeers • Advantages – Assess teamwork • Disadvantages – Possible friendship bias – May be less discriminating
  13. 13. Herman Aguinis, University of Colorado at Denver SubordinatesSubordinates • 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)
  14. 14. Herman Aguinis, University of Colorado at Denver SelfSelf • 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
  15. 15. Herman Aguinis, University of Colorado at Denver Customers (external and internal)Customers (external and internal) • Advantages – Employees become more focused on meeting customer expectations • Disadvantages – Time – Money
  16. 16. Herman Aguinis, University of Colorado at Denver Disagreement Across SourcesDisagreement Across Sources • Expect disagreement • Ensure employee receives feedback by source • Assign differential weights to scores by source, depending on importance
  17. 17. Herman Aguinis, University of Colorado at Denver Types of Rating ErrorsTypes of Rating Errors • Intentional errors – Rating inflation – Rating deflation • Unintentional errors – Due to complexity of task
  18. 18. Herman Aguinis, University of Colorado at Denver 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 ofA Model of RaterRater MotivationMotivation
  19. 19. Herman Aguinis, University of Colorado at Denver Motivations for Rating InflationMotivations 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
  20. 20. Herman Aguinis, University of Colorado at Denver Motivations for Rating DeflationMotivations for Rating Deflation • Shock employees • Teach a lesson • Send a message to employee • Build a written record of poor performance
  21. 21. Herman Aguinis, University of Colorado at Denver Prevent Rating Distortion throughPrevent Rating Distortion through Rater Training ProgramsRater Training Programs
  22. 22. Herman Aguinis, University of Colorado at Denver Rater Training Programs should cover:Rater Training Programs should cover: • Information • Motivation • Identifying, observing, recording and evaluating performance • How to interact with employees when they receive performance information
  23. 23. Herman Aguinis, University of Colorado at Denver Information - how the system worksInformation - how the system works • Reasons for implementing the performance management system • Information on the appraisal form and system mechanics
  24. 24. Herman Aguinis, University of Colorado at Denver Motivation – What’s in it for me?Motivation – What’s in it for me? • Benefits of providing accurate ratings • Tools for providing accurate ratings
  25. 25. Herman Aguinis, University of Colorado at Denver Identifying, observing, recording, and evaluatingIdentifying, observing, recording, and evaluating performanceperformance • How to identify and rank job activities • How to observe, record, measure performance • How to minimize rating errors
  26. 26. Herman Aguinis, University of Colorado at Denver How to interact with employeesHow to interact with employees when they receive performance informationwhen they receive performance information • How to conduct an appraisal interview • How to train, counsel, and coach

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