Class Notes (1,100,000)
CA (620,000)
WLU (20,000)
BU (4,000)
BU354 (100)
Lecture 16

BU354 Lecture Notes - Lecture 16: Inter-Rater Reliability, Succession Planning, Central Tendency

Course Code
Chet Robie

This preview shows pages 1-3. to view the full 9 pages of the document.
B354 HRM Mon. Oct. 28. 2013.
1 | N a t a s h a P a r k
Chapter 10 Performance Mgmt.
*Performance mgmt.: all activities improving worker performance, productivity, and effectiveness
*goal setting, pay for performance, training and development, career mgmt., disciplinary action
Requires employee productivity above all else
Better performance mgmt. = largely untapped opportunity to improve profitability
3 major purposes of performance mgmt.:
1) It aligns employee actions with strategic goals
2) Vehicle for culture change
3) Provides input into other HR systems such as development and remuneration
most effective way for firms to differentiate = through the quality of its employees
Robert Thorndike “employment decisions must be valid, practical, reliable, and free from bias.
Failure to measure and use appraisal results effectively negates purpose of performance evals”
*The performance management process contains five steps:5
1. Defining performance expectations & goals (and the job)
2. Providing ongoing feedback and coaching
3. Conducting performance appraisal and evaluation discussions
4. Determining performance rewards/consequences
5. Conducting development and career opportunities discussions
a critical step in employees’ understanding of how their work makes a contribution
Job performance is a multidimensional construct, split into 2 parts:
1) *Task performance: individual's direct contribution to their job related processes
o Performance expectations are grounded in realistic job demands and align with org’s strategic
objectives and implementation plans, & partially based on previous performance evals
2) *Contextual performance: individual's indirect contribution to the org by improving the social,
organizational, and psychological behaviours that contribute to org effectiveness beyond the job.
o These goals may be informally known, but not formally defined but employees must know
which behaviours are expected/discretionary
movement toward CSR expectations extend beyond job skills for promotion to addressing the
concept of whole person development
most employees require clarification of expectations & how these contribute to org’s overall results.
*Performance expectations must be developed in a legally defensible (*correlated with job
activities), clear, and measurable way. Also, they must be communicated and supported by the org.
Employees should always know ahead of time how and on what basis they will be appraised.
In global companies, performance appraisal criteria may need to be modified for cultural norms
*Important = 2-way communication employee + manager must check in frequently throughout
the PM process to talk about progression toward goals.
Employees should monitor their performance and ask for help promotes employee ownership
Example of a performance improvement plan (PIP) that can be used to focus such discussions
would talk about what the employee ranked low in and how to improve it

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

B354 HRM Mon. Oct. 28. 2013.
2 | N a t a s h a P a r k
*Formal Appraisal Methods
*Graphic Rating Scale: scale that lists many traits and a range of performance for each. The
employee is rated by identifying the score that best describes his level of performance for each trait.
o Simplest, most popular technique; Traits (ex: reliability) and a range of performance values
(unsatisfactory to outstanding) assigned values are totalled
o Instead of appraising generic traits/factors, many firms specify7the duties to be appraised.
*Alternation Ranking Method: Ranking employees from best to worst on a particular trait.
o easier to distinguish between worst and best employees than to rank them
1) list all employees to be rated
2) cross out the names of any not known well enough to rank
3) On a form, indicate employee who is highest on the characteristic being measured & the lowest
4) Choose the next highest and the next lowest, alternating until all employees have been ranked.
*Paired Comparison Method: Ranking
employees by making a chart of all possible
pairs of employees for each trait and
indicating the better employee of the pair
For every trait, every employee is
paired/compared with every other
employee more precise ranking method
o Ex: 5 employees are to be rated. On the
example to the right, Maria was ranked
highest for quality of work.
*Forced Distribution Method:
Predetermined %s of ratees placed in
various performance categories
o Ex: identify top 1020% of workforce (those exceeding expectations, with a focus on receiving
the highest compensation increases and advancement opportunities), bottom 10% (not meeting
expectations, with a focus on coaching for improvement or possible termination). The remaining
employees are backbone of the workforce (moderate compensation increases and development)
o method allows for a concentration of effort and resources on those deemed to be top
o criticized as being demotivating since the majority of the workforce are at/below average
*Critical incident method: Keeping a record of uncommonly good/undesirable examples of an
employee's work behaviour and reviewing the list with the employee at predetermined times.
o Every six months or so, the supervisor and employee meet to discuss the latter’s performance
by using the specific incidents as examples ensures appraisal throughout the year
o Provides specific hard facts for explaining the appraisal & how to improve deficiencies
o Incidents must be accumulated; rating does not just reflect most recent performance
o Often supplements another appraisal technique, like a ranking system (not as useful alone)

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

B354 HRM Mon. Oct. 28. 2013.
3 | N a t a s h a P a r k
*Narrative Forms: free form report of performance, may be a PIP. Identifying a performance
issue and presenting a plan (PIP). The performance problem & its impact are described. The
improvement plan identifies measurable improvement goals, provides directions regarding training,
and encourages the employee to add ideas about steps to be taken.
o provides clarity since outcomes and consequences, positive/negative, are explicitly stated
*Behaviourally anchored rating scale (BARS): aims to
combine the benefits of narratives, critical incidents,
and quantified ratings by anchoring a quantified scale
(for each performance dimension) with specific
narrative examples of good and poor performance.
o Usually involves a scale of 9 anchors, or 7 or 5
o Midpoint scales are more difficult to develop
Focus on midpoint scale development to influence
inter-rater reliability and agreement.
o time-consuming, but advantages include:
1. A more accurate measure. People who know the
job and its requirements develop BARS.
2. Clearer standards. critical incidents help clarify
3. Feedback. critical incidents may help provide
feedback to appraisees than simply informing
them of their performance rating
4. Independent dimensions. Rater should be less
likely to rate an employee high on all dimensions
simply because he was rated high in one
5. Consistency. Different raters’ appraisals of the
same person tend to be similar.
*Management by objectives (MBO): set specific measurable goals with each employee, periodically
review progress, aligned with a comprehensive, org-wide goal-setting &appraisal program.
o Difficult goals (stretch goals) can increase personal growth, professional development, & org
effectiveness, but also should match the job description & person’s abilities (avoid burnout)
1. Set the organization’s goals. Establish an org-wide plan for the next year and set goals.
2. Set departmental goals. Department heads and superiors jointly set goals for their departments.
3. Discuss departmental goals. Department heads discuss the department’s goals with all
employees in department and ask them to develop their own individual goals.
4. Define expected results (set individual goals). depmt heads & employees set ST perf. targets.
5. Performance reviews: Measure results. Dpmt heads compare actual performance with expected.
6. Provide feedback. Department heads hold periodic performance review meetings with
employees to discuss and evaluate progress in achieving expected results.
o MBO has 3 potential problems.
1) Main problem = setting unclear, immeasurable objectives useless.
2) MBO is time-consuming to set objectives, measure progress, and provide feedback
3) Setting objectives with an employee sometimes turns into a tug of war: managers push for
higher goals and employees push for lower ones know the job and the person’s ability
Mixing the Methods
Most firms combine several appraisal techniques.
No one single solution is best for all performance management systems. resource constraints and
organizational factors (budget, turnover, strategy) help determine which of the options is best
You're Reading a Preview

Unlock to view full version