MGTO 231Human Resources

Management

Performance appraisal II

Dr. Kin Fai Ellick WONG

A Model of Performance Appraisal

Identification

Measurement

Management

Source: Managing Human Resources, 4th Edition, p.223

Outline

• Measuring performance (continued)– Major types of measurement– Measuring error and bias

• Managing performance– Appraisal interview– Performance improvement

Outline

• Measuring performance (continued)– Major types of measurement– Measuring error and bias

• Managing performance– Appraisal interview– Performance improvement

Appraisal formats

• Type of judgment– Relative or absolute

• Scale format– Nominal, ordinal, interval, or ratio

• Focus of the measure– Trait, behavior, outcome

Focus of measurement

• Trait appraisal

• Behavioral appraisal

• Outcome appraisal

Focus of measurementFocus of measurement

Trait AppraisalTrait Appraisal

Behavioral AppraisalBehavioral Appraisal

Outcome AppraisalOutcome Appraisal

Trait appraisal

• Ask supervisor to make judgments about worker characteristics that tend to be consistent and enduring (i.e., the trait)– Decisiveness, reliability, energy, loyalty

• Quite common in appraisal systems, as well as in other related systems, e.g., reference letters

Sample Trait Scales

Rate each worker using the scales below.

Decisiveness:1 2 3 4 5 6 7Very low Moderate Very high

Reliability:1 2 3 4 5 6 7Very low Moderate Very high

Energy:1 2 3 4 5 6 7Very low Moderate Very high

Loyalty:1 2 3 4 5 6 7Very low Moderate Very high

Source: Managing Human Resources, 4th Edition, p.228

Problems

• The definition of traits may be ambiguous– One’s definition of loyalty may be

different from others’– 岳飛 ( 武穆 )

                          

    

                          

    

                          

    

                          

    

                          

    

                          

    

                          

    

                          

    

Another problem of trait approach

• It is person oriented, but not performance oriented– 龐統 ( 仕元 )

• One of the cleverest guys in the period of “three kingdoms”

• He was ugly and so was ignored in Wu ( 吳 )• “ 權見其人濃眉掀鼻，黑面短髯，形容古怪，

心中不喜… 權曰：狂士也，用之何益？» ＜＜三國演義＞＞第五十七回

Focus of measurementFocus of measurement

Trait AppraisalTrait Appraisal

Behavioral AppraisalBehavioral Appraisal

Outcome AppraisalOutcome Appraisal

Behavioral appraisal

• Ask manager to assess a worker’s behavior– Types of behaviors can be derived from

critical incident technique– Frequency-based format (Behavioral

Observation Scales)– Anchor-based format (Behaviorally

Anchored Rating Scales)

Source: Managing Human Resources, 4th Edition, p.229

Advantages

• Behaviors are much more concrete and can be objectively observed

• Provide specific examples for assessment so that it is clear to employees what they are expected to perform

• Performance feedback can be given in a clear way

Disadvantages

• The development of such a system is quite time consuming

• Some important behaviors may be missed• Organization may change dynamically, old

behaviors may have different implications in the current context

• Or, it may limit the organization’s changes or adaptation

Focus of measurementFocus of measurement

Trait AppraisalTrait Appraisal

Behavioral AppraisalBehavioral Appraisal

Outcome AppraisalOutcome Appraisal

Outcome appraisal

• Ask manager to assess the result achieved by worker

• Management by objectives (MBO)– Supervisors and workers set goals

together– The goal is a specific performance

expected to be achieved (total sales or number of products produced)

– The extent to which the goals have been met

Advantages

• The criteria to be assessed are very clear and specific

• Subjectivity is essentially eliminated

• Goal-setting increases job motivation

• The objectives can be adjusted easily

Disadvantages

• How about the processes?– Those who have followed the BEST

processes may result in the poorest outcome due to uncontrollable factors (911)

• Quantity vs. Quality– Complaints on sales actives

Outline

• Measuring performance (continued)– Major types of measurement– Measuring error and bias

• Managing performance– Appraisal interview– Performance improvement

Some kinds of measuring error and bias

• Halo effect

• Escalating commitment

• Contrast effect

• Central tendency

• Strictness/leniency

• Number-size framing

Halo effect

• Individual that is good (poor) in one dimension is tended to be perceived as good (poor) in other dimensions, although there is no such evidence– Good in verbal reasoning good in logical

reasoning, smart, having senses– Good in basketball (Michael Jordan) good in all

kinds of sports (baseball and golf)

• In the HR context– Good impression in one trait may lead to better

evaluation of another trait

Escalating commitment

• Individual tends to persist in a self-selected decision, even there is evidence that the outcome of the decision is negative

• In the selection context– Performance appraisal of an employee

will be higher when it is rated by the one selected him/her than when it is rated by others

Contrast effect

• Evaluation order matters!!!

• Evaluator tends to inflate his/her score after evaluating a poorer-than-average individual

• Evaluator tends to give lower score after evaluating a better-than-average individual

Central tendency

• Avoiding extreme scores in ratings– 中庸之道– Making the employees less differentiated

Strictness/leniency

• Problem occurs when a supervisor has a tendency to rate all subordinates either high or low– Political reasons

• Showing others that my team members are all bright

– Maintaining harmony

Number-size framing

From Wong & Kwong (2005), Journal of Applied Psychology

Attendance

Rat

ing

2

3

4

5

6

7

8

9

10

+ve -vePunctuality

+ve -veAccuracy

+ve -veCompleteness

+ve -veSuccess

+ve -veOverall

+ve -ve

Andy William

Outline

• Measuring performance (continued)– Major types of measurement– Measuring error and bias

• Managing performance– Appraisal interview– Performance improvement

Appraisal interview

• To provide feedback to employees

• Two components– Discussion of performance (act as a

coach) followed by discussion of salary (act as a judge)

– Highlight the association between performance and salary to increase employee job motivation

Performance improvement

• Knowing the causes of problems– Ability, motivation, or situation– 不為而非不能為– Seeking converging evidence

• Self-review, peer review, and subordinate review

• Directing attention to the causes• Action plan

– Providing suggestions and possible ways to improve performance

• Directing communication at performance