• Raises, Merit Pay, Bonuses

• Personnel Decisions (e.g., promotion, transfer, dismissal)

• Identification of Training Needs

• Research Purposes (e.g., assessing the worth of selection tests)

Performance Appraisal Uses

Basic Performance Appraisal Process

Conduct a Job Analysis (e.g., specify tasks and KSAs)

Develop Performance Standards (e.g., define what is superior, acceptable, and

poor job performance)

Develop or Choose a Performance Appraisal System

Performance Appraisal Process

Observation

• Selective Attention

• Timing

• Structure

• Frequency

Storage

• Encoding of Information (e.g., categorization)

• Short vs. Long-term

• Memory

Evaluation

• Retrieve Information

• Combine information

• Decision-making (judgment)

Sources of Information

1) Supervisors (most common)

• Role Conflict (e.g., judge and trainer/teacher)

• Motivation

• Time availability

• Friendship

2) Co-Workers (Peers)

• Friendship bias

• Leniency

• High level of accuracy

• Best used as a source of feedback

Sources of Information (cont)

3) Self

• Lots of knowledge

• Leniency effect

• Good preparation for performance appraisal meeting (conducive for dialog)

4) Subordinates

• Biases (e.g., # of subordinates, type of job, expected evaluation from supervisor)

5) Client

• Good source of feedback

• Negativity bias

Subjective Appraisal Methods (can be used with any type of

job)Relative Methods

1) Ranking

1st _____

2nd_____

3rd _____

2) Pair Comparison

Employee-1 _____ versus Employee-2 _____

Employee-1 _____ versus Employee-3 _____ etc.

• Both are difficult to use with a large number of subordinates

Subjective Appraisal Methods (cont.)

Absolute Methods

1) Narrative essay

• Unstructured (e.g., content, length)

• Affected by the writing ability of supervisors and time availability

2) Graphic Rating Scale (most common)_____ _____ _____ _____ _____ Very Average Excellent Poor

1) Leniency (positive bias) _____ _____ _____ _____ _____ Very Average Excellent Poor

2) Severity (negative bias)

_____ _____ _____ _____ _____ Very Average Excellent

Poor

3) Central Tendency (midpoint) _____ _____ _____ _____ _____ Very Average Excellent Poor

All lead to a restriction in the

range of performance

scores

~ Basic Rating Scale Errors ~

Responsibility

Commitment

Initiative

Sensitivity

Judgment

Communication

Observation of specific behavior (s) (e.g., volunteers to work

overtime)

Halo Error

High ratings on other performance dimensions

3. Problem Solving/TroubleshootingDefinition: Uses a logical, step-by step approach to identify and solve process problems

1 2 3 4 5

Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding Expectations Expectations

Fails to understand how equipment and processes interrelate

Does not complete checklists or other required forms

Is not able to identify root causes of process deviations

Does not consistently meet A2E expectations

Depends on others to solve problems

Uses available resources (e.g., drawings, checklists, forms, people—engineers, data historian) to determine the root cause of problems

Selects and interprets data to solve problems

Investigates the nature of equipment and process malfunctions on an ongoing basis

Participates in A2E efforts

Develops novel, safe and effective solutions to current problems

Anticipates problems before they occur and suggests solutions

Takes ownership in problem solving and sees it through to completion

Effectively leads problem solving efforts (e.g., A2E, handles complicated analysis requests on one’s own)

Behavioral Examples of Rating:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Technical AbilityDefinition: Uses mechanical, electrical and process equipment, tools, and principles properly

1 2 3 4 5

Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding Expectations Expectations

Cannot describe the parts and functions of various equipment (e.g., valves, pumps, motors)

Skips steps in the procedures when performing job tasks

Incorrectly uses tools and other equipment

Cannot read and interpret EFDs, PFDs, blueprints and schematics

Does not accurately perform basic mathematical calculations or conversions

Interprets graphs, charts and diagrams accurately

Examines relevant information (e.g., tank levels, set points) before making process adjustments

Continuously learns and improves one’s job knowledge

Can explain to others how to do their job

Demonstrates knowledge of different work areas (e.g., lab) and how these interact with each other

Can train others on how to do their job

Independently resolves any complex work-related request

Suggests ways to improve system functioning (e.g., increase yield, prevent waste)

Behavioral Examples of Rating:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

~ Subjective Appraisal Methods ~

Behavioral Methods (Use of critical incidents; examples of good and poor job behavior collected by job experts over time)

Behavior Observation Scales (BOS)

• Rate the frequency in which critical incidents are performed by employees

• Sum the ratings for a total “performance” score

1) Assists others in job duties._____ _____ _____ _____ _____Never Usually Always

2) Cleans equipment after each use._____ _____ _____ _____ _____Never Usually Always

Behaviorally Anchored Rating Scale (BARS) Process

1) Generate critical incidents (examples of good and poor job performance)

2) Place critical incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety)

3) Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong)

4) Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation)

5) Place critical incidents on a vertical scale

~ BARS (Pros and Cons) ~

Process involves various employees (increases chances of usage)

J Job specificity (different BARS need to be developed for ach position)

Not any better at reducing common rating scale errors (e.g., leniency, halo)

Time consuming

Performance Appraisal & Self-Fulfilling Prophecies

Supervisor Expectancy Leadership Behaviors

Subordinate Self-Expectancy

Subordinate Motivation

Subordinate Performance

Objective Appraisal Data

1) Production Data (e.g., sales volume, units produced)

• When observation occurs (timing), and how data is collected

• Fairness and relevancy issue

• Potential limited variability

• Limitations regarding supervisory personnel

2) Personnel Data

• Absenteeism (excused versus unexcused)

• Tardiness

• Accidents (fault issue)

Performance Appraisal Training

1) Frequent observation of performance and feedback (both positive and negative)

2) Recordkeeping (ongoing if possible)

3) Encourage self-assessment of employees

4) Focus on behaviors (not traits)

1) Use specific behavioral criteria and standards

6) Set goals for employees (specific and challenging ones)

7) Focus on how to observe job behaviors and provide incentives

• Ensure that procedures for personnel decisions do not discriminate on the basis of the race, sex, national origin, religion, or age of those affected by such decisions.

• Use objective and uncontaminated data whenever they are available.

• Provide a formal system of review or appeal to resolve disagreements regarding appraisals.

• Use more than one independent evaluator of performance.

• Use a formal, standardized system for personnel decisions.

• Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made.

• Avoid ratings on traits such as dependability, drive, aptitude, or attitude.

• Provide documented performance counseling prior to performance,-based termination decisions.

Legally Defensible Appraisal Systems

• Communicate specific performance standards to employees.

• Provide raters with written instructions on how to complete performance evaluations.

• Evaluate employees on specific work dimensions, rather than on a single overall or global measure.

• Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings.

• Base the content of the appraisal form on a job analysis.

• Provide employees with an opportunity to review their appraisals.

• Educate personnel decision-makers regarding laws on discrimination.

Legally Defensible Appraisal Systems (cont)

Minority

Non minority

Satisfactory

Unsatisfactory

PerformanceCriterion

Reject AcceptPredictor Score

Equal validity, unequal predictor means

- Job performance is equal

- Test scores are greater for non-minorities

Intercept Bias (Test)

Non minority

Minority

Performance Criterion

Satisfactory

Unsatisfactory

Reject Accept

Predictor Score

Equal validity, unequal criterion means

- Equal test scores; Minorities performing less well on job (over predicting performance)

- Minorities hired same as non minorities but probability of success is small. Can reinforce existing stereotypes.