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Employee behaviors observed by raters Organization values Competition among departments Differences in status between departments Economic conditions The Role of Performance Appraisals The in Compensation Decisions (cont.) What are some of the frustrations employees What have expressed about the performance appraisal process? process? Effectiveness of Performance Appraisal Systems Systems A survey, entitled “Performance Management survey, Practices: A Long Way From Strategic Management” published in the HBR found that only 35% of the 2,000 respondents rated their performance management systems “effective”. performance An even more comprehensive survey by Mercer An in 2003 found that the employees were dissatisfied with their company’s performance appraisal system. (see the issues gleaned from the Mercer survey on page 331) the Common Errors in Performance Appraisal Common What are some of the common errors in What performance appraisal? performance - Common Errors in Performance Appraisal Common What are some of the common errors in performance appraisal? Spillover Error Spillover - Central Tendency Error Central - Clone Error Clone - Severity Error Severity - Leniency Error Leniency - Recency Error Recency - First Impression Error - Halo Error - Horn Error Horn
- Common Errors Common in the Appraisal Process Factors Related to Inaccurate Appraisals Factors Guilt about judging others Guilt Embarrassment about giving praise Embarrassment Taking things for granted Taking Not noticing good or poor performance Not The halo effect The Dislike of confrontation Dislike Spending too little time on preparation of the appraisal appraisal Exhibit 11.2: Ratings of Managers Exhibit Actual Performance Ratings for Top 600 Managers Exceeds Very Effective Meets Expectations Does not Meet Expectations 3% How might the choice of rating labels influence the distribution of ratings? 57% 30% Why so low? 10% Making the System Better Making The quality and accuracy of performance The assessments are influenced by: assessments
The process Setting expectations and giving period Setting feedback feedback Not merely an annual event
The rater Takes the responsibility seriously Has the courage to give honest feedback
The culture of the company Improving the Quality and Accuracy of Ratings Ratings Clearly define job performance Improve appraisal formats Select the right raters Understand way raters process information and mistakes Setting a culture where feedback is valued and expected Be brutally honest but not brutal Train raters to improve rating and feedback skills Tr...
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This note was uploaded on 03/18/2009 for the course ILRHR 4631 taught by Professor Tharp during the Spring '09 term at Cornell University (Engineering School).
- Spring '09