...Industrial and Organizational Psychology, 1 (2008), 190–193. Copyright ª 2008 Society for Industrial and Organizational Psychology. 1754-9426/08 Inaccurate Performance Ratings Are a Reflection of Larger Organizational Issues MICHAEL M. HARRIS University of Missouri-St. Louis DAN ISPAS AND GREG F. SCHMIDT University of South Florida Murphy (2008) suggests that there is generally only a ‘‘weak’’ relationship between job performance and ratings of job performance, arguing that supervisory performance ratings get little respect, and he questions whether the benefits of performance appraisal even outweigh the costs. Despite these doubts, most organizations continue to collect performance ratings and to conduct performance appraisals with their employees. We contend that industrial and organizational (I–O) psychologists should conduct more research on this issue before discarding the notion that performance ratings are practically useless. We extend Murphy’s comments by elaborating on rater motivation (mentioned in passing by Murphy) and rater accountability (not included in Murphy’s discussion). Our informal, anecdotal conversations with managers suggest to us that indeed, line managers do not often think highly of their Correspondence concerning this article should be addressed to Michael M. Harris. E-mail: mharris@ umsl.edu Address: College of Business Administration, University of Missouri-St. Louis, 1 University Boulevard, St. Louis, MO 63121 Michael M. Harris, Department...
Words: 1943 - Pages: 8
...Some Inherent Difficulties in thePerformance Appraisal Process and Proposed Solutions The performance management cycle begins with objective setting where the appraisee ought to be oriented about performance expectations for the given performance period. Throughout the period, performance is measured officially through the performance appraisal exercise, where the appraiser is given the chance to give performance feedback through an interview. The performance management system is meaningfully linked to rewards based on outcomes or results. Following all these, modifications are implemented to objectives and activities, including the drafting of an individual development plan for closing competency gaps (Clark, 1998). Types of Performance Appraisal Systems Traditionally, employee performance has been evaluated solely by supervisors. Recently, however, organizations have realized that supervisors see only certain aspects of an employee’s behavior. For instance, a manager might see only 30% of his staff’s behavior; the rest is observed by customers, peers, and support staff in other parts of the organization. Furthermore, the staff might behave differently around her supervisor than around other people. Consequently, to obtain an accurate view of the staff’s performance, these other sources should provide feedback. The buzzword for using multiple sources to appraise performance is 360-degree feedback (Gruner, 1997). Sources of relevant information include supervisors, peers...
Words: 5023 - Pages: 21
...Job Analysis Regina Page Industrial/Organizational Psychology University of Phoenix Sales merchandisers in the retail industry are individuals who closely work with a buyer to ensure that the products maximize and achieve the business’s sale plan as well as to maintain the perfect balance of the company’s financial objectives and the customer’s expectations. Sales merchandising involves a sharp analytical mind for careful planning and strategy. This individual is instrumental in the decisions regarding the various lines that are purchased, the quantities needed, setting the retail prices to maximize profit, and inventory control functions that allow for a continuous flow of goods. A sales merchandiser is required to perform analysis and research. Monitoring the organization’s weekly or monthly sales trend of goods allows the merchandiser to determine the proper stock levels that are distributed to each of the company’s stores. Since most stores purchase their inventory from multiple suppliers, this individual must maintain proper lines of communication with suppliers in order to maneuver the appropriate inventory to meet demands. Since the primary goal of the merchandiser is to maximize profits, it is essential that the individual holding such a position to have certain attributes. These attributes are communication skills, analytical skills, computer literacy an innate ability to thrive under pressure. Communication skills will allow the merchandiser to effective...
Words: 821 - Pages: 4
...systems? 1) _______ A) they reward exemplary performance B) they encourage employees to continue to increase their skillsets C) they reward employees on an objective basis D) they help to promote product quality 2) This term refers to a difference between the output of a human judgment processes and that of an objective, accurate assessment. This difference could be due to bias, prejudice, or other subjective, extraneous influences. 2) _______ A) content validity B) a first-impression effect C) rating error D) the performance appraisal process 3) In 2009, employees were expected to earn average merit increases of what percent? 3) _______ A) 8.3% B) 2.9% C) 5.2% D) 1.3% 4) Management by objective is part of which type of performance appraisal system? 4) _______ A) behavioral observation scale B) behaviorally-anchored rating scale C) goal-oriented system D) trait system 5) This occurs when a rater generalizes good performance behavior in one aspect of the job to all aspects of the job. 5) _______ A) negative halo effect B) positive halo effect C) first-impression effect D) similar-to-me effect 6) Which comparison system requires the rater to place a specific number of employees into groups that represent the entire range of performances? 6) _______ A) the critical incident technique ...
Words: 1268 - Pages: 6
...seek an accurate assessment of performance that permits the development of a plan to improve individual and group performance. The system must honestly inform people of how they stand with the organization. The following factors assist in accomplishing these purposes: First: Job-related criteria Evaluation criteria should be determined through job analysis. Subjective factors, such as initiative, enthusiasm, loyalty, and cooperation are obviously important; however, unless clearly shown to...
Words: 767 - Pages: 4
...significant savings to the company, and the criteria do not provide the opportunity to show this. While a certain level of attitude, co-worker interaction or-the-like should be measured for a well-rounded evaluation, these should not be the primary rating factors because they are the furthest removed from actual job performance. Next, the rating scale used appears to be clearly subjective and without any commentary or goals. This will leave a lack of context in rating categories for useful discussion when delivering the evaluation and could definitely lead to misunderstanding by the employee. This was also indicated that the last review session ending poorly and the engineer having a lack of confidence in the company’s review process. Lastly, it is apparent that the sole evaluation is based on the opinion of a single evaluator. A1. Commonly used performance review criteria include individual task outcomes, behaviors, and traits. Individual task outcome should be at the core of a performance rating process as it is the most objective measurement of performance and can often be closely be tied to the production type goals of the company. While task outcome measures performance to goals, the...
Words: 1592 - Pages: 7
...resources administrators want to improve the work environment to enhance employee performance. Regulatory practices to improve the work environment are base on works of scholars who spearheaded the scientific movement. Human resources law has taken center stage in dealing with workplace violations and excessive abuses. There are many challenges to effective performance measurement in how a human resources manager can ensure accurate measurement of a worker performance. Managers are confronted with five challenges, (1) Rater errors and bias, (2) The influence of liking, (3) Organizational politics, (4) Whether to focus on the individual or the group, (5) Legal issues (Go’mez-Mejia, Balkin, and Cardy, 2010). A rater error is an error in performance appraisal that reflects consistent biases on the part of the rater. One of the most prominent rater errors is halo error, the tendency to rate similarly across dimensions (Go’mez-Mejia, Balkin, and Cardy, 2010). If an individual does well in one aspect, this can trigger favorable reports on other aspects. The Influence of liking can cause errors in performance appraisals when raters allow their like or dislike of an individual to influence their assessment of that person’s performance (Go’mez-Mejia, Balkin, and Cardy, 2010). A manager can correlate the performer’s ratings only because they like them but also can mean the raters likes the way the employee performs the job requirements and, or dislike their...
Words: 899 - Pages: 4
...What is a Performance Appraisal? * Performance appraisal is the identification, measurement and management of human performance in organizations (Gomez-Mejia 2010). Identifying what areas of work the manager should be evaluated. Measuring how “good” or “bad” an employee is doing compared to the normal standards. Managing employees by providing constructive feedback and coaching them towards company, department and personal goals. * Performance appraisal is used for administrative and developmental purposes (Gomez-Mejia 2010). Any decisions that affect an employee’s working conditions are administrative purposes while decisions that work toward improving the performance standards are for developmental purposes Slide 3: Positive Results from a Performance Appraisal * When done correctly, performance appraisals can help develop an effective employee and improve their performance levels (Gomez-Mejia 2010). Positive performance appraisals also establish performance strategies that set the company apart from it’s competition (Gomez-Mejia 2010). Measurement standards like quality and timeliness can help a company strategically meet the needs of their consumers. Results from a performance appraisal can also provide evidence for selection systems in the situation of a termination of an employee. Slide 4: Pre-Appraisal Activities * One of the first steps in the appraisal process is to determine the performance dimensions. Dimensions are “an aspect of performance that determines...
Words: 1178 - Pages: 5
...PERFORMANCE APPRAISAL SYSTEM OF BANGLADESH CIVIL SERVICE: AN ANALYSIS OF ITS EFFICACY Mohammad Ashraful Haque ABSTRACT Performance appraisal plays a crucial role in maintaining a high quality and competitive workforce, but has been ignored so far from the civil service reform agenda in Bangladesh. At present, an Annual Confidential Report (ACR) that was introduced in the Pakistan period and retained with minor modification is used to measure performance. The prevailing gross inefficiency of the Bangladesh Civil Service gives the impression that this appraisal system is poorly functioning. This paper articulates the difficulties in designing a good appraisal system in the public sector and provides a theoretical framework arguing that the ‘goodness’ of a PA system should be seen in its capacity to meet its predetermined objectives instead of counting on the so called infallible psychometric properties. A certain degree of validity, reliability and perceived fairness are essential for an appraisal system to be efficacious. The paper then analyzes historical development of the current ACR of Bangladesh Civil Service and its components to measure its validity, reliability and perceived fairness. The paper found that though the current ACR holds some degree of fairness, it significantly lacks in validity as well as reliability, and therefore is deficient in meeting its stated objectives. Keywords – annual confidential report, efficiency, perceived fairness, psychometrics, reliability...
Words: 9747 - Pages: 39
...roles. Their organisational roles, and partly in technical deficiencies and the unwise management of appraisal policies and procedures. (ii) Another faulty assumption is that managers take a particular appraisal system as perfect and feel that once they have launched a programme, that would continue forever. They expect too much from it, and rely too much on it, or blame for their faults. It should be recognised that no system can provide perfect, absolutely defensible appraisals devoid of subjectivity. (iii) Managers sometimes assume that personal opinion is better than formal appraisal, and they find little use of systematic appraisal and review procedures. However, this 'management by instinct' assumption is not valid and leads to bias, subjectivity and distorted decisions based on partial or...
Words: 1254 - Pages: 6
...June 13 Performance Management by Prof Lise Saari 08 Fall Halo Errors in Performance Management Systems - Anita Rajendran Performance Appraisals are the backbone of Human Resources and a crucial aspect of the entire Performance Management System (PMS) but also the most difficult to implement. The effectiveness of a Performance Appraisal can be seriously impacted by the common errors that raters make. Halo is one such error and can be defined as "the influence of a global evaluation on individual attributes of a person" (Nisbett & Wilson, 1977, p. 250) or "the influence of a rater's general impression on ratings of specific ratee qualities" (Lance, LaPointe, & Stewart, 1994, p. 339). The article tries to understand the background and research done into halo error and whether there is clear evidence to suggest that there is a positive or negative link to rating accuracy due to Halo error. It attempts to see if there are ways in which an organization can effectively utilize these research findings to counter halo error or whether any experiments done are effective only in a laboratory setting. Finally review on whether this aspect of the performance appraisal can be incorporated into an actual performance appraisal system. Individual Research Paper – Halo Error in Performance Management Systems Introduction and Background 3 What is Halo Error – The underlying research and theory 3 Deep Dive 5 How to counter the halo error or reduce error? 5 Effective use...
Words: 3840 - Pages: 16
...EMPLOYEES’ PERCEPTION OF THE PROBLEMS AND PRACTICES OF EMPLOYEE PERFORMANCE EVALUATION: a Case study of Awash International Bank (AIB) BY: ZELALEM BAYISA GURMESSA A project paper submitted to the school of graduate studies of AAU in partial fulfillment of the requirements for the degree of Masters of Business Administration [MBA] Advisor: Dr. TILAHUN TEKLU Assistant Professor of Management Department of Management August, 2007 Addis Ababa University School of Graduate Studies MBA Program Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB) BY ZELALEM BAYISA Approval Board Committee ________________________ Chairman, Graduate Studies __________________ Research Advisor __________________ Examiner __________________ Examiner ________ Signature _________ Signature _________ Signature ________ Signature Dr. Tilahun Tek lu Assistant Professor of Management Department of Business Management Faculty of Business and Economics Addis Ababa University Addis Ababa, Ethiopia C E R T I F I C A T E This is to certify that this project work, “Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB)”, undertaken by Zelalem Bayisa for the partial fulfillment of Master’s of Business Administration [MBA] at Addis Ababa University, is an original work and not submitted earlier for any degree either at this University or any...
Words: 20034 - Pages: 81
...A PROJECT REPORT ON “EMPLOYEE’S PERFORMANCE APPRAISAL” FOR ANIL INDUSTRIES KATNI PVT. LTD. SUBMITTED TO MODY INSTITUTE OF TECHNOLOGY AND SCIENCE SUBMITTED BY VISHAKHA KEWLANI (BATCH – 2011-2014) GUIDED BY DR. AJAY VERMA DECLARATION I, the under signed, hereby declare that the project report entitled “Performance Appraisal” is a research work made for Anil Industries Katni Pvt. Ltd. is genuine and benefited work presented by me under the guidance of Dr.. The empirical findings in this project report are based on the data collected by me. The matter presented in this report is not copied from any source. I understand that any such copy is liable to the punishment in way the university authority deems fit. The project Report is submitted to Mody Institute of Technology and Science, in the partial fulfillment of the Bachelor’s Degree course in Business Administration. ACKNOWLEDGEMENTS My training at Anil Industries Katni Pvt., Ltd. was a great experience to gain the knowledge one could acquire about Human Resource. The practical knowledge that I have gained during this training period has helped me tremendously to improve my knowledge about Performance appraisal system. I am extremely thanked to Mr. Ishwar Kewlani (Manager, HR.) who gave me an opportunity to work in such a highly esteemed organization. I would like to express my deep sense of gratitude to Mr. Sandeep Kewlani for his inspiring guidance, constant encouragement...
Words: 5850 - Pages: 24
...data (p. 44) • The purposes of using psychological tests (p. 49): selection, placement & development • Distinguish between self-report and performance-based assessments Concerns about self-report assessment 1. Content validity: relevance and coverage 2. Acquiescence, tiredness, and other feelings 3. Fake answers (intentionally) 4. Social desirability (sometimes unintentionally) Concerns about performance-based assessment 1. Time consuming, and maybe more expensive 2. Efforts to develop scoring procedures (commoners vs. outperformers ) 3. Fake answers (intentionally) 4. Social desirability (sometimes unintentionally) What is Correlation ? • Indicates both the magnitude and direction of the relationship between variables • Range is from -1.0 to +1.0 Question: What if a correlation exists between a selection method and task performance? Consider these --- A correlation exists between: • The number of firemen that were putting out the fire and the total amount of losses in a fire • Cigarette smokers and lower GPAs • The height of the father and that of the son • How much you can drink today and how much you can drink tomorrow The Goal of Personnel Selection Performance (Success) Criteria Productivity measures, absenteeism, tardiness, turnover, absenteeism Objective data Subjective data Performance ratings (e.g., supervisor, coworkers, self, subordinates, clients Assisting others, loyalty, extra work/effort, volunteering, counterproductive...
Words: 1172 - Pages: 5
...EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE PERFORMANCE AT LAIKIPIA COUNTY. A CASE STUDY OF NYAHURURU SUB-COUNTY, KENYA BY LUCY WANGARI GACHAU A Research Proposal Submitted To The St. Annes Catholic Insitute in Partial Fulfillment of The Requirements For The Award of Higher Diploma in Secretarial Management of KNEC. JUNE 2014 DECLARATION/RECOMMENDATION Declaration This proposal is my original work and has not been presented in any other, college, university or any other Institution of Higher Learning for academic award. Signature ……………………………… Date ……………………………… Students Name: LUCY WANGARI GACHAU Reg No. Recommendation This proposal has been submitted for examination with our approval as College supervisor Signature ……………………………… Date …………………………… Lecturer name: Department of Higher Diploma in Secretarial Management St. Annes Catholic Institute ABSTRACT Performance appraisal is defined as the process of determining and communicating to an employee how he is performing on a particular Job. Therefor performance appraisal is the process of evaluating an employee’s performance of a job in terms of its requirements and advising on the necessary steps o be taken in order to perform even better next time. This has never been in Laikipia County with the opposite being true. It is for this reason that this study seeks to study the effects of these performance appraisal on employees performance. The...
Words: 5855 - Pages: 24
