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Chapter 7

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This document discusses performance appraisals and their purposes. Performance appraisals are used to enhance organizational and individual decisions related to pay raises, promotions, career choices and development. They also provide a rational and legally defensible basis for personnel decisions. Performance appraisals can come from objective data, personnel data, and judgmental data. They must also consider legal issues like negligence, defamation, and misrepresentation. The results of performance appraisals are used for training, salary administration, placement, promotions, and discharge. Rater motivation, training, and errors like halo effects, leniency biases, and central tendency biases can impact appraisal accuracy. Different types of assessments include self, peer, 360-degree, and

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CHAPTER 7 PERFORMANCE APPRAISALS
PURPOSES ENHANCE ORGANIZATIONAL DECISIONS, EG. PAYRAISES, PROMOTIONS ENHANCE THE QUALITY OF INDIVIDUAL DECISIONS, EG. CAREER CHOICES, FUTURE DEVELOPMENT
PURPOSES PROVIDE RATIONAL, LEGAL DEFENSIBLE BASIS FOR PERSONNEL DECISIONS AFFECT EMPLOYEES VIEWS AND ATTACHMENT TO THE ORGANIZATION
Sources of Performance Appraisal Information Objective Production Data Personnel Data Judgmental Data
Performance Appraisals & the Law Negligence -breach of duty by employer Defamation -disclosure of info that damages employees reputation Misrepresentation -disclosure of favorable info that is untrue
Using the Results of Performance Appraisals Personnel Training Wage & Salary Administration Placement Promotions Discharge Personnel Research
Rater Motivation Willingness vs. Capacity to Rate Appraisal Politics
Rater Training Rating Error Focus Frame-of-Reference Training
ERRORS IN JUDGMENT HALO ERRORS EVALUATIONS BASED ON RATERS GENERAL FEELINGS DOES NOT DISTINGUISH AMONG MANY DIMENSIONS OF PERFORMANCE
LENIENCY ERRORS NEGATIVE GIVES HARSHER EVALUATION THAN DESERVED POSITIVE GIVES HIGHER RATINGS THAN DESERVED
ERRORS CENTRAL TENDENCY- RATER UNWILLING TO GIVE EXTREME RATINGS, USE ONLY THE MIDDLE PART OF THE SCALE
Types of Assessments Self Assessments-most grade higher Peer Assessments Peer Nomination, Peer Ratings, & Peer Rankings 360-Degree Feedback Multi-Source Feedback Three Dimensions People, Change, Structure
RELIABILITY DETERMINED BY INTER-RATER AGREEMENT MOST USE FOR FEEDBACK ONLY
Feedback of Appraisal Information to Employees Performance Appraisal Interview Credibility Power

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