Manipulating the Evaluation
•Sometimes, managers control every aspect of appraisal process and manipulate the system
•Example:
–A supervisor wants to give pay raise to certain employee, so supervisor may give employee an undeserved high performance evaluation.
Employee Anxiety
•Evaluation process may create anxiety for appraised employee
•Opportunities for promotion, better work assignments, and increased compensation may hinge on results
Characteristics of Effective Appraisal System
•Job-related criteria
•Performance expectations
•Standardization
•Trained appraisers
•Continuous open communication
•Performance reviews
•Due process
Job-Related Criteria
•Most basic criterion needed in employee performance appraisals
•Uniform Guidelines and court decisions are clear on this point
Performance Expectations
•Managers and subordinates must agree on performance expectations in advance of appraisal period
•If employees clearly understand expectations, they can evaluate own performance and make timely adjustments
Standardization Firms should use same evaluation instrument for all employees in same job category who work for same supervisor
Trained Appraisers
•Seldom receive training on how to conduct effective evaluations
•Training should be ongoing
•Includes how to rate employees and how to conduct appraisal interviews
Continuous Open Communication
•Employees need to know how well they are performing
•Good appraisal system provides highly desired feedback on continuing basis
•Should be few surprises in performance review
Conduct Performance Reviews
•Special time should be set for formal discussion of employee’s performance
•Withholding appraisal results is absurd.
•Performance review allows employees to detect any errors or omissions in appraisal
•Employee may simply disagree with evaluation and want to challenge it
Due Process
•Provides employees opportunity to appeal appraisal results
•Must have procedure for pursuing grievances and having them addressed objectively
Legal Implications
•Employee lawsuits may result from negative evaluations
•Unlikely that any appraisal system will be immune to legal challenge
Appraisal Interview
•Achilles heel of entire evaluation process
•Scheduling interview
•Interview structure
•Use of praise and criticism
•Employee’s role
•Concluding interview
Scheduling the Interview
•Employees typically know when their interview should take place
•Anxiety tends to increase if their supervisor delays the meeting
Interview Structure
•Discuss employee’s performance
•Assist employee in setting goals and personal development plans for next appraisal period
•Suggesting means for achieving established goals, including support from manager and firm
Conducting Separate Interviews
•Conduct separate interviews for discussing:
1.Employee performance and development
2.Pay
•When pay emerges in interview, it tends to dominate conversation
•Performance improvement then takes a back seat
Use of Praise and Criticism
•Praise is appropriate when warranted
•Criticism, even if warranted, is especially difficult to give
•“Constructive” criticism is often not perceived that way