Performance Appraisal Overview
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Questions and Answers

What is the main problem with supervisors 'calling on the carpet' employees who give them poor performance ratings?

It reduces the likelihood that subordinates will be honest in future ratings.

List two conditions that would encourage honest feedback from employees in performance appraisals.

The two conditions are anonymity and the ratings are used for developmental purposes.

Name three conditions that increase the effectiveness of self-appraisal?

The self-appraisal is not used for raises or promotions, employees understand the system, and employees believe an objective performance record exists.

What is the basic principle of the ranking method in performance appraisal?

<p>The principle is that employees are ranked against each other based on overall performance.</p> Signup and view all the answers

What is one advantage of using the ranking method for performance appraisals?

<p>It is easier to identify the best and worst employees using this method.</p> Signup and view all the answers

What is a significant limitation of the ranking method regarding the comparison of employees?

<p>It compares the 'whole man' to another 'whole man', making it hard to compare individual traits.</p> Signup and view all the answers

How does the ranking method fail to indicate the degree of difference between employees' performance?

<p>The ranking method only shows the position of an employee. It does not compare how much better or worse an employee is when compared to another employee.</p> Signup and view all the answers

What is the primary purpose of performance appraisals, according to the text?

<p>To improve employee performance by providing feedback.</p> Signup and view all the answers

Why is the ranking method problematic when dealing with a large number of employees?

<p>Ranking individuals becomes a difficult issue when a large number of employees are working.</p> Signup and view all the answers

Besides providing feedback, what is another key purpose of Performance Appraisals in regard to compensation?

<p>To determine salary increases.</p> Signup and view all the answers

What is an important factor considered when making promotion decisions using performance appraisals?

<p>Employee performance.</p> Signup and view all the answers

What does the term 'performance appraisal' mean in an industrial psychology context?

<p>The formalized means of assessing worker performance in comparison to organizational standards.</p> Signup and view all the answers

What are two ways a supervisor uses performance appraisals to help employees improve work performance?

<p>Analyze the factors behind the work performance; guide the employees for better performance.</p> Signup and view all the answers

Why is a semiannual performance appraisal beneficial for employee development?

<p>It is an excellent time to meet with employees to discuss their strengths and weaknesses, and determine how weaknesses can be corrected.</p> Signup and view all the answers

What is one key factor that influences differences in pay between individuals in the same job?

<p>Job performance</p> Signup and view all the answers

How is an employee's performance typically measured in a performance appraisal?

<p>By comparing it to established organizational standards.</p> Signup and view all the answers

Why might a manager fail to record incidents related to employee performance?

<p>They might be too busy or simply forget to do it.</p> Signup and view all the answers

In a weighted checklist, how are the performance of employees assessed after the supervisor checks statements?

<p>The weights of all the statements checked by the rater are averaged.</p> Signup and view all the answers

Who typically creates the statements that are included in a checklist for a specific job?

<p>Persons who are quite familiar with the job.</p> Signup and view all the answers

What is a notable limitation of the checklist method of employee evaluation regarding the time and cost involved?

<p>It can be very expensive and time consuming.</p> Signup and view all the answers

What bias can a rater show when using a checklist?

<p>The rater may be biased in distinguishing between positive and negative questions.</p> Signup and view all the answers

What is the 'Peter Principle' in the context of employee promotions?

<p>The Peter Principle refers to promoting employees until they reach a position where they are incompetent, because success at one level does not guarantee success at the next level.</p> Signup and view all the answers

Why is it important to carefully consider job dimensions when promoting employees based on performance evaluations?

<p>It's important to consider job dimensions to ensure the employee is evaluated on aspects relevant to the new position, because excelling in a current role isn't a guarantee of success in a role with different demands.</p> Signup and view all the answers

Besides performance reviews, what other action is the result, if performance management techniques are not successful?

<p>If performance management techniques are not successful, the result may be termination of the employee.</p> Signup and view all the answers

What's a common limitation of using a supervisor's performance appraisal of an employee?

<p>Supervisors may not witness all of an employee's behaviors; they often see the end-results but not all of the process.</p> Signup and view all the answers

What advantage do peer appraisals have over supervisor appraisals in evaluating an employee?

<p>Peer appraisals often see the actual behaviors of the employee in daily work, unlike supervisors who may primarily see results.</p> Signup and view all the answers

Why is subordinate feedback an important yet underutilized aspect of performance appraisal?

<p>Subordinates can provide a different point of view about a supervisor's behavior, but it's underutilized out of fear of backlash from the supervisor.</p> Signup and view all the answers

How can employees in other departments contribute to the performance appraisal of an employee?

<p>Employees in other departments who come into regular contact with an employee can provide useful feedback on their behavior and interactions.</p> Signup and view all the answers

What is 'upward feedback', and what challenges does it present?

<p>Upward feedback is feedback from subordinates to their supervisors, but it's challenging because subordinates may fear retaliation if they rate their supervisors unfavorably.</p> Signup and view all the answers

What is a key characteristic of the forced distribution method in performance appraisal?

<p>It requires raters to allocate a certain percentage of rates to predefined categories.</p> Signup and view all the answers

Name one way that forced distribution can help to eliminate rater bias.

<p>It forces raters to distribute employees according to pre-determined percentages.</p> Signup and view all the answers

What is a potential negative outcome of using forced distribution method in salary administration?

<p>It can lead to low morale, low productivity, and high absenteeism.</p> Signup and view all the answers

What might employees who feel unfairly graded in a forced distribution method exhibit?

<p>Reluctance to work.</p> Signup and view all the answers

In the critical incident technique, what is the manager responsible for creating?

<p>Lists of statements of very effective and ineffective employee behavior.</p> Signup and view all the answers

What is a benefit of the critical incident technique when discussing an employee's performance?

<p>It provides an objective basis for discussion.</p> Signup and view all the answers

What type of bias does the critical incident technique help avoid?

<p>Recency bias.</p> Signup and view all the answers

According to the content, what is a potential drawback of the critical incident technique?

<p>Negative incidents may be more noticeable than positive ones.</p> Signup and view all the answers

Flashcards

What is performance appraisal?

A formal process of assessing an employee's job performance against set organizational standards.

Why is performance appraisal important for employee development?

Performance appraisals help pinpoint employee strengths and weaknesses to improve their performance.

How does performance appraisal influence salary?

Performance appraisals help ensure employees are compensated fairly based on their contributions.

How does performance appraisal help in promotions?

Performance appraisals provide data for making informed promotion decisions, identifying high performers.

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What is the first step in performance appraisal?

Performance appraisals involve measuring employee performance against targets and plans.

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What is the second step in performance appraisal?

The second step involves analyzing the reasons behind an employee's performance, identifying factors.

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What is the final step in performance appraisal?

The final step involves providing guidance and support to employees to enhance their performance.

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Why is performance appraisal essential for organizations?

Performance appraisals are essential for organizations to manage talent, improve performance, and ensure fair compensation.

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Weighted Checklists

A performance evaluation method where supervisors check statements describing job characteristics, each with a weight, to assess employee behavior.

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Checklists

A performance evaluation tool where a list of statements related to a specific job are used to rate employees.

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Rater Bias in Checklists

Supervisors may be biased when choosing between positively and negatively phrased statements, leading to unfair assessments.

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Complexity of Checklists

Creating, analyzing, and assigning values to numerous statements describing employee characteristics can be challenging.

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Cost and Time of Checklists

Developing and implementing checklists can be expensive and time-consuming.

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Peter Principle

The phenomenon where employees are promoted until they reach a level where they are no longer competent.

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Appraisal by Supervisor

A performance review method using a supervisor's evaluation of an employee's work and outcomes.

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Appraisal by Peers

Peer evaluations provide valuable information about employees' behavior and work habits based on direct interactions and observations by colleagues.

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Appraisal by Subordinates

A performance assessment approach where subordinates provide feedback on their supervisors, offering valuable insights into their leadership and management style.

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Promoting the Best Employee

The practice of promoting the most senior or highest performing employees to the next level, even if they may not be the best fit for the new role.

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Evaluating for the New Role

A performance evaluation method that focuses on the employee's fit for the new position based on skills and characteristics required for success in the specific new role.

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Termination Decisions

When performance improvement efforts are not successful, termination may become the necessary next step to address persistent performance issues and maintain a high-performing team.

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Using Performance Reviews for Promotion

Utilizing performance reviews to identify and promote employees who demonstrate the skills and qualities needed for success in a new position, aligning the evaluation criteria with the requirements of the new role.

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Forced Distribution

A performance appraisal method where raters distribute employees into predefined categories based on predetermined percentages, ensuring a specific number of employees fall within each category.

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Forced Distribution: Negative consequence

A potential disadvantage of the Forced Distribution method where employees who feel they are performing well but are placed in lower categories become demotivated and may even reduce productivity.

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Critical Incident Technique

A performance appraisal method where managers document specific examples of an employee's effective and ineffective behavior, using these 'Critical Incidents' to evaluate performance.

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Critical Incident Technique: Advantage

One benefit of the Critical Incident Technique is that it promotes objective, detailed discussions about employee performance, avoiding reliance on vague or subjective assessments.

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Critical Incident Technique: Limitation

A potential drawback where negative incidents may be remembered more readily than positive ones, creating a skewed perception of performance.

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Critical Incident Technique: Limitation (2)

One limitation of the Critical Incident Technique is that managers might unload multiple complaints about incidents during performance reviews, leading to a negative and overwhelming experience for the employee.

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Critical Incident Technique: Limitation (3)

Managers using the Critical Incident Technique might end up closely supervising employees, which could be perceived as intrusive and disliked by some.

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Critical Incident Technique: Avoiding Recency Bias

The Critical Incident Technique helps address recency bias by focusing on a record of incidents over a longer period, rather than just recent events.

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Ranking Method

A performance appraisal method where employees are ranked from best to worst based on their overall performance. This ranking is relative to each other within the same team.

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Fear of Retaliation

Supervisors are less likely to provide honest feedback when they fear retaliation for giving negative ratings.

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Anonymous Ratings

Anonymous performance evaluations allow employees to give honest feedback without fear of being identified, improving the accuracy of the assessment.

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Accurate Self-Appraisal

Employees are more likely to provide accurate self-appraisals when they understand the performance appraisal system and have access to objective performance data.

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Self-Appraisal

A performance appraisal technique where employees assess their own performance based on established criteria.

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Openness to Feedback

Performance ratings are more likely to be honest and valuable when supervisors are open to receiving feedback from employees.

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Developmental Use of Ratings

When performance ratings are used for development purposes, employees are more likely to perceive them as constructive and valuable, leading to improved performance.

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Conditions for Honest Feedback

Employees are more likely to provide honest performance ratings when they feel competent to make the assessment, believe there will be no consequences for honesty, and see potential benefits from providing honest feedback.

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Study Notes

Performance Appraisal

  • Performance appraisal is a formal process for assessing worker performance against established organizational standards.
  • It's a vital personnel function, crucial for organizational success.
  • Performance appraisals are used to understand employee abilities for growth and development.
  • Systematic evaluation methods include measuring employee pay against plans, analyzing work performance factors, and guiding employees for better performance.

Purpose of Performance Appraisal

  • Providing Employee Training and Feedback: A key use is improving employee performance through feedback. Semiannual reviews are good times to discuss strengths, weaknesses, and how to correct shortcomings.
  • Determining Salary Increases: Job worth is determined by factors like responsibility and educational requirements. Differences in compensation between individuals are linked to both tenure and performance.
  • Making Promotion Decisions: The best employee at one level isn't always the best at the next. Evaluations can lead to promotions but should assess suitability for the new role.
  • Making Termination Decisions: Performance appraisals can identify problems that require disciplinary action or termination.

Types/Forms of Performance Appraisal

  • Appraisal by Supervisor: Supervisors assess the results of employee performance.
  • Appraisal by Peers: Co-workers provide feedback on actual behavior.
  • Appraisal by Subordinates: Subordinates rate supervisors; this method is often less formal except for student ratings of teachers.
  • Self-Appraisal: Employees evaluate their own performance. Self-appraisals are most accurate when not used for administrative decisions (raises, promotions) and when employees understand the system.

Performance Appraisal Techniques

  • Ranking Method: Ranking employees in order of performance, useful for ranking best/worst employees but not comparing individuals effectively across various traits.
  • Forced Distribution Method: Employees are categorized based on pre-defined percentages (e.g., top 10%, bottom 20%). Can help eliminate biases but can hurt morale.
  • Critical Incident Technique: Managers document positive/negative work behaviors, good or bad. This technique lets the managers record critical incidents of employee behavior and is very objective. However, it also requires a lot of record-keeping and can be time-consuming.
  • Checklists and Weighted Checklists: Using statements to describe a job role, the evaluator checks appropriate statements (describing employee conduct) to assess performance. This is very useful as it is cost-effective.

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Related Documents

Lecture Six - Performance Appraisal PDF

Description

This quiz provides insights into the process of performance appraisal, highlighting its importance in assessing employee performance and organizational success. You will explore the methods of evaluation, purposes such as employee feedback, training, and determining promotions and salary increases.

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