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“Workers give performance management programs a failing grade”. Less than half of surveyed ees felt their co held people accountable for performance Slightly more than half felt their co set high performance standards
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“Workers give performance management programs a failing grade” • Less than half of surveyed ees felt their co held people accountable for performance • Slightly more than half felt their co set high performance standards • Only 40% of ees saw connection between their day-to-day work and their co’s goals • 61% of ees felt their performance appraisal was accurate • 54% said ees w/ better reviews get better raises and bonuses • Source: SHRM HR News, 4/21/04
Measurement Tools • The type of judgment that is required • Relative or absolute • The focus of the measure • Trait, behavior, or outcome
Approaches to Measuring Performance • Relative • Ranking • Paired comparison • Forced Distribution (aka “Rank and Yank”) • GE, Ford, etc. [10-80-10] • “Every company needs to get rid of underperformers and most managers won’t until they have to.” (Fortune. 8/13/01) • Trait • Graphic rating scales • Behavioral • Critical incident • BARS • Outcomes • MBO
Sample Trait Scales Rate each worker using the scales below. Decisiveness: 1 2 3 4 5 6 7 Very low Moderate Very high Reliability: 1 2 3 4 5 6 7 Very low Moderate Very high Energy: 1 2 3 4 5 6 7 Very low Moderate Very high Loyalty: 1 2 3 4 5 6 7 Very low Moderate Very high
Advantages and Disadvantages of Appraisal Tools AdvantagesDisadvantages Graphic Simple to use Standards may Rating Provides quantitative be unclear; halo Scales rating effect, restriction of range; bias Forced Avoids leniency Artificial Distribution Critical Incident Behavior-based No quantitative feedback rating BARS Behavioral anchors Difficult to develop MBO Tied to performance Time-consuming objectives
Evaluation of Major Appraisal Formats Legal Defensibility Developmental Use Administrative Use Appraisal Format + - - + 0 0 ++ + 0 0 0 - -- ++ + Absolute Relative Trait Behavior Outcome ++ Very good + Good -- Very Poor - Poor 0 Unclear or mixed
Discussion Question 2 • Superficially, it seems preferable to use objective performance data (such as productivity figures) when available, rather than subjective supervisory ratings to assess employees. Why might objective data be less effective performance measures than subjective ratings?
Discussion Question 7 • What criteria do you think should be used to measure team performance? What sources should be used for the appraisal? Should individual performance still be measured? Why or why not?
Legal Issues • Arecent analysis of 295 court cases involving performance appraisal found judges’ decisions to be favorably influenced by the following additional factors: • Use of job analysis • Providing written instructions • Allowing employees to review appraisal results • Agreement among multiple raters (if more than one was used) • The presence of rater training