PSY 3181 Lecture Notes - Lecture 6: Performance Appraisal

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PERFORMANCE APPRAISAL (Slides of note: #4, 9, 12-16, 18-20, 23, 26, 28, 31, 37-42, 44-46, 49)
A. Performance KSAOs x Motivation
1. Ideally measured through behaviors, but can include outcomes as well
2. Determined by KSAOs and motivation (but contextual factors can play a role)
3. Measured through objective and subjective criteria
4. Each measurement method (i.e. behaviors versus outcomes, objective versus subjective) has
unique pros and cons
B. Why does it matter?
1. Helps people do their jobs better
a. Timely, accurate, and constructive feedback is key to effective performance
2. Identifies training and education needs
a. Jobs change, markets change, and the competition changes
3. Assigns people to work they can do well
a. People are hired to do one job, but may eventually become more suited for a
different job
4. Maintains fairness in salaries, benefits, promotion, hiring, and firing
a. Issues that are NOT job-related must be ignored by the evaluation system
C. Criterion problem
1. Actual criteria (e.g. supervisor ratings) may not accurately measure the conceptual criterion
(e.g. performance)
2. Criterion deficiency and criterion contamination are potential issues
D. Steps in developing a performance appraisal system
1. Assemble a representative task force
2. Determine the purpose of the appraisal (e.g. training, personnel decisions)
3. Identify environmental and cultural limitations
4. Determine who will evaluate performance (e.g. 360-degree feedback)
5. Select the appraisal method(s)
E. Appraisal methods
1. Objective measures
a. Quantity of work (e.g. production)
b. Quality of work (e.g. number of errors)
c. Attendance, counterproductive work behaviors, etc.
2. Subjective performance ratings
3. Employee comparisons (e.g. forced distribution)
F. Performance ratings are the easiest and most common method, but are subject to:
1. Memory effects & biases
a. Primacy first impressions
b. Recency recent behavior
c. Unusual, extreme, consistent behaviors
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