Performance evaluation

PERFORMANCE PERFORMANCE EVALUATIONEVALUATION

Industrial PsychologyIndustrial PsychologyGrace S. De Guzman- RapsingGrace S. De Guzman- Rapsing

What is Performance?What is Performance?

Performance is accomplishment of Performance is accomplishment of the task assigned to an employee the task assigned to an employee through his/her effort, commitment, through his/her effort, commitment, knowledge, skills and taking into knowledge, skills and taking into account factors that may help or account factors that may help or hinder his/her performance such as a hinder his/her performance such as a conducive working environment and conducive working environment and availability of modern office availability of modern office equipmentequipment

Performance = Output + BehaviorPerformance = Output + Behavior

Output – “What have you done?” Output – “What have you done?”

Result/sResult/s

Behavior – “How have you done it”Behavior – “How have you done it”

ProcessProcess

What is Performance Evaluation?What is Performance Evaluation?

Performance Evaluation is a method Performance Evaluation is a method by which the individual worker’s by which the individual worker’s efficiency in performing his/her efficiency in performing his/her duties during a given period is duties during a given period is evaluated on the basis of pre-evaluated on the basis of pre-determined standards or established determined standards or established goals mutually set and agreed upon goals mutually set and agreed upon by the employee and supervisor.by the employee and supervisor.

Purposes of Performance AppraisalPurposes of Performance Appraisal

For the Worker:For the Worker:– Means of reinforcement (praise, pay Means of reinforcement (praise, pay

raises)raises)– Career Advancement (promotion, Career Advancement (promotion,

increased responsibility)increased responsibility)– Information about work goal attainmentInformation about work goal attainment– Source of feedback to improve Source of feedback to improve

performanceperformance

Purposes of Performance AppraisalPurposes of Performance Appraisal

For the Supervisor:For the Supervisor:– Basis for making personnel decision Basis for making personnel decision

(promotions, firings, etc.)(promotions, firings, etc.)– Assessment of worker’s goal attainmentAssessment of worker’s goal attainment– Opportunity to provide constructive Opportunity to provide constructive

feedback to workersfeedback to workers– Opportunity to interact with Opportunity to interact with

subordinatessubordinates

Purposes of Performance AppraisalPurposes of Performance Appraisal

For the Organization:For the Organization:– Assessment of productivity of Assessment of productivity of

individuals and work unitsindividuals and work units– Enhance organizational effectiveness Enhance organizational effectiveness

and productivityand productivity– Means of recognizing and motivating Means of recognizing and motivating

workersworkers– Source of information for personnel Source of information for personnel

training needs training needs

REASONS FOR REASONS FOR EVALUATING EMPLOYEESEVALUATING EMPLOYEES

Providing feedback (employee Providing feedback (employee performance/ training)performance/ training)

Determining salary increasesDetermining salary increases

Making promotion decisionsMaking promotion decisions

Making termination decisionsMaking termination decisions

Effective Performance Appraisal Effective Performance Appraisal lead to:lead to:

PRODUCTIVITYPRODUCTIVITY

EFFECTIVENESSEFFECTIVENESS

EFFICIENCYEFFICIENCY

What is Performance Goal?What is Performance Goal?Performance target refers to Performance target refers to activities and level of performance activities and level of performance expected of an employee in terms of expected of an employee in terms of quantity, quality and time which the quantity, quality and time which the supervisor and the subordinate supervisor and the subordinate mutually discuss and agree upon at mutually discuss and agree upon at the beginning of the rating period the beginning of the rating period based on the activities normally based on the activities normally required by the programs and thrust required by the programs and thrust of the office.of the office.

Why is Performance Goal Why is Performance Goal Important?Important?

Performance goals are important Performance goals are important because they define the quantity and because they define the quantity and quality of work an individual is quality of work an individual is expected to accomplish within a expected to accomplish within a given period. Performance targets given period. Performance targets automatically become the bases for automatically become the bases for comparing his or her actual comparing his or her actual accomplishment at any point in time accomplishment at any point in time within the rating periodwithin the rating period

Performance Evaluation System/ Performance Evaluation System/ ProcessProcess

Expectation PlanningExpectation Planning– Provide necessary information to Provide necessary information to

develop goalsdevelop goals– Available to answer questions which the Available to answer questions which the

employee may have or discuss employee may have or discuss suggestionssuggestions

– Review tentative goals and program Review tentative goals and program stepssteps

Expectation PlanningExpectation Planning– Program steps and rating standardsProgram steps and rating standards

Clearly understand the rationale and sources Clearly understand the rationale and sources of the goalsof the goals

Feel that goals and performance standards Feel that goals and performance standards are fair and achievableare fair and achievable

Understand how their jobs contribute to the Understand how their jobs contribute to the overall effectiveness of the work groupoverall effectiveness of the work group

Observe that the superior is open and Observe that the superior is open and responsive to displayed needs and concernsresponsive to displayed needs and concerns

Expectation PlanningExpectation Planning– GOALS (objectives) – what is to be oneGOALS (objectives) – what is to be one

– PROGRAM STEPS – how the goal is to be PROGRAM STEPS – how the goal is to be achievedachieved

– RATING STANDARDS – how the RATING STANDARDS – how the performance via the goal is to be performance via the goal is to be measuredmeasured

Progress Review (Monitoring, Progress Review (Monitoring, Documentation and Feedback)Documentation and Feedback)– A formal meeting between the rater and A formal meeting between the rater and

the ratee to:the ratee to:Discuss the accomplishment of goals and Discuss the accomplishment of goals and program stepsprogram steps

Problems being encounteredProblems being encountered

Any changes in the planAny changes in the plan

Progress ReviewProgress Review– Superior:Superior:

Provide timely FEEDBACK and assistanceProvide timely FEEDBACK and assistanceIdentify less than satisfactory performance Identify less than satisfactory performance and take remedial stepsand take remedial stepsDocument progress and action plans to be Document progress and action plans to be used as reference for evaluationused as reference for evaluationCompliment excellent, highly satisfactory Compliment excellent, highly satisfactory and improved performanceand improved performanceMake necessary revisions in goals and/or Make necessary revisions in goals and/or program stepsprogram steps

Progress ReviewProgress Review– Subordinate:Subordinate:

Be informed about assessment of work progressBe informed about assessment of work progress

Negotiate with rater any possible changes in goals Negotiate with rater any possible changes in goals and/ program stepsand/ program steps

Provide feedback to rater on problems encounteredProvide feedback to rater on problems encountered

Participate in the formulation of action plansParticipate in the formulation of action plans

Acquire a feeling of fairness since performance is Acquire a feeling of fairness since performance is constantly reviewed prior to performance evaluation constantly reviewed prior to performance evaluation

Evaluation (Feedback, Plans for Evaluation (Feedback, Plans for employee’s future developmental employee’s future developmental program)program)– ““Moment of Truth”Moment of Truth”– Give Recognition/ PraiseGive Recognition/ Praise– Constructive CriticismConstructive Criticism

FOCUS OF APPRAISAL FOCUS OF APPRAISAL DIMENSIONSDIMENSIONS

TraitsTraits

CompetenciesCompetencies

Tasks typesTasks types

GoalsGoals

Trait-Focused Performance Trait-Focused Performance DimensionsDimensions

A A trait-focused system trait-focused system concentrates on concentrates on such employee attributes as such employee attributes as dependability, honesty, and courtesy. dependability, honesty, and courtesy. Though commonly used, trait-focused Though commonly used, trait-focused performance appraisal instruments are not performance appraisal instruments are not a good idea because they provide poor a good idea because they provide poor feedback and thus will not result in feedback and thus will not result in employee development and growthemployee development and growth

Competency-focusedCompetency-focused dimensions dimensions concentrate on the employee’s concentrate on the employee’s knowledge, skills, and abilities. knowledge, skills, and abilities. – competency-focused dimensions might competency-focused dimensions might

include writing skills, oral presentation include writing skills, oral presentation skills, and driving skills.skills, and driving skills.

The advantage to organizing The advantage to organizing dimensions by competencies is that dimensions by competencies is that it is easy to provide feedback and it is easy to provide feedback and suggest the steps necessary to suggest the steps necessary to correct deficienciescorrect deficiencies

Task-focusedTask-focused dimensions are dimensions are organized by the similarity of tasks organized by the similarity of tasks that are performedthat are performed

To organize the appraisal on the To organize the appraisal on the basis of basis of goalsgoals to be accomplished by to be accomplished by the employeethe employee

Contextual PerformanceContextual Performance– Effort an employee makes to get along Effort an employee makes to get along

with peers, improve the organization, with peers, improve the organization, and perform tasks that are needed but and perform tasks that are needed but not necessarily an official part of not necessarily an official part of employee’s job description.employee’s job description.

– Not only the technical aspects that are Not only the technical aspects that are being addressed but the contextual being addressed but the contextual aspects as well. Not only effective aspects as well. Not only effective workers but good organizational citizens.workers but good organizational citizens.

Four Ways to Focus Four Ways to Focus Performance DimensionsPerformance Dimensions

Competency Focus Tasks Focus

Report-writing skills Crime prevention

Driving skills Arrest procedures

Public speaking skills Court testimony

Knowledge of the law Use of vehicle

Decision-making skills Radio procedures

Physical ability skills Following rules and regulations

Goal Focus Trait Focus

Prevent crimes from occurring Honesty

Arrest/cite lawbreakers Courtesy

Finish shift without personal injury Responsibility

Have arrests and citations stand up in court

Dependability

Minimize citizen complaints Assertiveness

Ensure public safety Cooperation

ACCURATE PERFORMANCE ACCURATE PERFORMANCE MEASURESMEASURES

Performance should be accurately Performance should be accurately measured so employees will know measured so employees will know where they can improve.where they can improve.

Knowing where to improve should Knowing where to improve should lead to training employees to lead to training employees to develop new skills to improve.develop new skills to improve.

An accurate measure of An accurate measure of performance, our measure must be performance, our measure must be valid and reliablevalid and reliable, , acceptable and acceptable and feasible, specific, and based on the feasible, specific, and based on the mission and objectivesmission and objectives..

Valid and ReliableValid and Reliable

Objective, Uniform in application, Objective, Uniform in application, Consistent in effect, and Has job Consistent in effect, and Has job relatednessrelatedness

Valid and ReliableValid and Reliable• A valid measure is “true and correct. A valid measure is “true and correct.

When a measure has validity, it is a When a measure has validity, it is a factual measure that measures the factual measure that measures the process that you wanted to measure. process that you wanted to measure.

• A reliable measure is consistent; it A reliable measure is consistent; it works in generally the same way works in generally the same way each time we use iteach time we use it

Acceptable and feasibleAcceptable and feasible

Acceptability means that the use of Acceptability means that the use of the measure is satisfactory or the measure is satisfactory or appropriate to the people who must appropriate to the people who must use ituse it

Acceptability must include whether Acceptability must include whether or not the evaluation tool is feasibleor not the evaluation tool is feasible

SpecificSpecificEvaluation measures need to be Evaluation measures need to be specific enough to identify what is specific enough to identify what is going well and what is not.going well and what is not.

SpecificSpecific means that the forms provide means that the forms provide enough information for everyone to enough information for everyone to understand what level of performance understand what level of performance has been achieved by a particular has been achieved by a particular employee within a well-defined job.employee within a well-defined job.

Based on the Mission and Based on the Mission and ObjectivesObjectives

Performance management system Performance management system leads to the achievement of the leads to the achievement of the organizational mission and objectivesorganizational mission and objectives

Performance Appraisal Performance Appraisal Measurement and Forms1Measurement and Forms1

Ranking Method

Graphic Rating Scales Form

BARS Form

Narrative Method or Form

MBO method

Critical Incidents method

2 3 4 5 61Evaluative Development

Decisions Decisions

The The critical incidents method critical incidents method is a is a performance appraisal method in performance appraisal method in which a manager keeps a written which a manager keeps a written record of positive and negative record of positive and negative performance of employees performance of employees throughout the performance periodthroughout the performance period

Critical incidents are important Critical incidents are important employee actions, not minor ones, employee actions, not minor ones, which help or hurt performance.which help or hurt performance.

Usually written by the manager Usually written by the manager and/or is in the form of and/or is in the form of documentation, such as a warning documentation, such as a warning that is given, performance reports, or that is given, performance reports, or a letter from a happy customer a letter from a happy customer

thanking the employee for doing a thanking the employee for doing a great jobgreat job

Management by Objectives Management by Objectives (MBO) (MBO) method is a process in which method is a process in which managers and employees jointly set managers and employees jointly set objectives for the employees, objectives for the employees, periodically evaluate performance, periodically evaluate performance, and reward according to the resultsand reward according to the results

MBO MBO is also referred to as work is also referred to as work planning and review, goals planning and review, goals management, goals and controls, management, goals and controls, and management by resultsand management by results

Narrative form Narrative form requires a manager to requires a manager to write a statement about the write a statement about the employee’s performance. employee’s performance.

Graphic Rating Scale form is a Graphic Rating Scale form is a performance appraisal checklist on performance appraisal checklist on which a manager simply rates which a manager simply rates performance on a continuum such as performance on a continuum such as excellent, good, average, fair and excellent, good, average, fair and poorpoor

Behaviorally Anchored Rating Scale Behaviorally Anchored Rating Scale (BARS) form is a performance (BARS) form is a performance appraisal that provides a description appraisal that provides a description of each assessment along a of each assessment along a continuum.continuum.

The ranking method is a performance The ranking method is a performance appraisal method that is used to appraisal method that is used to evaluate employee performance evaluate employee performance from best to worst. from best to worst.

Common Problems With the Common Problems With the Performance Appraisal Performance Appraisal

ProcessProcess

Bias is simply a personality-based Bias is simply a personality-based tendency, either toward or against tendency, either toward or against something. In the case of something. In the case of performance assessment, bias is performance assessment, bias is toward or against an individual toward or against an individual employee. employee.

All human beings have biases, but All human beings have biases, but supervisors especially cannot afford supervisors especially cannot afford to allow their biases to enter into to allow their biases to enter into their evaluation of subordinates in their evaluation of subordinates in the firmthe firm

Stereotyping is mentally classifying a Stereotyping is mentally classifying a person into an affinity group, and person into an affinity group, and then identifying the person as having then identifying the person as having the same assumed characteristics as the same assumed characteristics as the group. Though stereotyping is the group. Though stereotyping is almost always assumed to be almost always assumed to be negative, there are many incidents of negative, there are many incidents of positive stereotypespositive stereotypes

Halo error occurs when the evaluator Halo error occurs when the evaluator has a generally positive impression has a generally positive impression of an individual.of an individual.

Horns error – negative impressionHorns error – negative impression

Distributional ErrorDistributional Error– Severity or strictness error, the rater Severity or strictness error, the rater

evaluates everyone, or nearly everyone, evaluates everyone, or nearly everyone, as below average.as below average.

– Central tendency error occurs when Central tendency error occurs when raters evaluate everyone under their raters evaluate everyone under their control as average—nobody is either control as average—nobody is either really good or really badreally good or really bad

– Leniency error occurs when the rater Leniency error occurs when the rater evaluates all others as above average. evaluates all others as above average. Leniency error, therefore, is basically a Leniency error, therefore, is basically a form of grade inflation. form of grade inflation.

Similarity errorSimilarity error– This error occurs when raters evaluate This error occurs when raters evaluate

subordinates that they consider more subordinates that they consider more similar to themselves as better similar to themselves as better employees, and subordinates that they employees, and subordinates that they consider different from themselves as consider different from themselves as poorer employees.poorer employees.

Proximity errorProximity error– This error states that similar marks may This error states that similar marks may

be given to items that are near (proximate be given to items that are near (proximate to) each other on the performance to) each other on the performance appraisal form, regardless of differences appraisal form, regardless of differences in performance on those measures. in performance on those measures.

– We can avoid proximity error by We can avoid proximity error by objectively evaluating employees’ actual objectively evaluating employees’ actual performance on each and every item on performance on each and every item on the assessment form.the assessment form.

Recency error. Recency error. – This error occurs when raters use only This error occurs when raters use only

the last few weeks or month of a rating the last few weeks or month of a rating period as evidence of their ratings of period as evidence of their ratings of others.others.

Contrast error Contrast error – In contrast error, the rater compares In contrast error, the rater compares

and contrasts performance between two and contrasts performance between two employees, rather than using absolute employees, rather than using absolute measures of performance to measure measures of performance to measure each employee.each employee.

Attribution errorAttribution error– In simplified terms, attribution is a In simplified terms, attribution is a

process where an individual process where an individual assumes assumes reasons or motivations (such as reasons or motivations (such as attitudes, values, or beliefs) for an attitudes, values, or beliefs) for an observed behavior. observed behavior.

– attribution error in performance attribution error in performance appraisal might occur when the rater appraisal might occur when the rater observes an employee action—such as observes an employee action—such as an argumentative answer to a questionan argumentative answer to a question—and assumes that the individual has a —and assumes that the individual has a negative attitude toward the job and is a negative attitude toward the job and is a poor performer. This may not be true, poor performer. This may not be true, and in such a case the rater would be and in such a case the rater would be guilty of an attribution error.guilty of an attribution error.