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Lecture 3

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Psychology 2061A/B

Lecture 3 Readings: Evaluating Employee Performance (Chapter 7) Step 1: Determine the Reason for Evaluating Employee Performance: this is important because the various performance appraisal techniques are appropriate for some purposes but not for others. Example: forced-choice rating scale: supervisor is given several behaviours and is forced to choose which of them is most typical of the employee (excellent for determining compensation but terrible for training purposes. Most organizations do not have specific goals for their performance appraisal systems; as a result most of these systems are not successful. Providing Employee Training and Feedback: most important use of performance evaluation is to improve employee performance and provide feedback. The semiannual performance appraisal review: meeting between a supervisor and a subordinate for the purpose of discussing performance appraisal results, is an excellent time to meet with employees to discuss their strengths and weaknesses. Determining Salary Increases: one important reason for evaluating employee performance is to provide a fair basis to determine an employee’s salary increase Making Promotion Decisions: sometimes best performing employee does not receive promotion (may go to seniority). Peter Principle: the promotion of good employees until they reach a level in which they are not competent. Making Termination Decisions: the results of the performance review might suggest the best course of action is to fire the employee Conducting Personnel Research: not the most important reason, but important to determine performance. Step 2: Identify Environmental and Cultural Limitations: important to know how the surroundings and culture affects the system. Examples: employees being over worked (time-consuming performance test not effective), insufficient funds available for merit pay or testing (makes the system frustrating), etc. Step 3: Determine Who Will Evaluate Performance: traditionally evaluated by supervisors, however, organizations realized that supervisors see only certain aspects of an employees behaviour (70% of behaviour or more is seen by custmers, peers, and support staff). 360-Degree Feedback: performance appraisal system in which feedback is obtained from multiple sources such as supervisors, subordinates, and peers. Used as source of training and development rather than salary increase, promotion, and termination decisions. Multi-Source Feedback: performance appraisal system in which an employee receives feedback from sources (clients, subordinates, peers) other than just his/her supervisor Supervisors: most common type of performance appraisal is the supervisor rating (90% are conducted this way). They do not see every minute of employee’s behaviour, but they see the end result. Peers: while employees see the results, peers often see the actual behaviour. Ratings come from peers that work directly with employee and those who come in contact with employee. Only reliable when the peers who make the ratings are similar to and well acquainted with the employees being rating. They are successful in predicting the future success of promoted employees. Subordinates: (upwards feedback) is an important component of 360- degree feedback, as subordinates provide a different view about their supervisor’s behaviour. It is difficult to obtain because employees can fear a backlash from their supervisor. Customers: they provide feedback on employee performance by filing complaints or complimenting a manager about one of their employees. Formally, customers provide feedback by completing evaluation cards. Organizations sometimes hire “secret customers” to “shop” in the store (really evaluate employees). Self-Appraisal: used by only a small percentage of organization, and is when employees rate themselves. Step 4: Select the Best Appraisal Methods to Accomplish Your Goals Decision 1: Focus on the Appraisal Dimensions Trait-Focused: concentrates on employee attributes such as dependability, honesty, and courtesy. Not a good idea because they provide poor feedback and will not result in employee development. Traits are personal and employees will get pissed off Competency-Focused: concentrate on the employee’s knowledge, skills, and abilities. The advantage is that it is easy to provide feedback and suggest the steps to correct deficiencies. Example: employee has poor writing skills, the effective measure would be to enroll the employee in a writing course Task-Focused: concentrates on the everyday tasks of the employee (often includes several competencies). The advantage is that because supervisors are concentrating on tasks that occur together, it is often easier to evaluate performance. The disadvantage is that it is more difficult to offer suggestions for how to correct the deficiency if an employee scores low. Example: for a police officer, is a low score of court testimony due to lack of knowledge of poor public speaking skills Goal-Focused: based on goals to be accomplished by the employee. The advantage of a goal-focused approach is that it makes it easier for an employee to understand why certain behaviours are expected Contextual Performance: the effort the employee makes to get along with peers, improve the organization, and perform tasks that are needed but not necessary to the employee’s job. Example: in academia it is not uncommon to deny tenure to a faculty member who is technically competent but does not “play well with others” Decision 2: Should Dimensions Be W
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