Purposes of Performance Evaluation
Performance evaluation serves a number of purposes. One is to help management make general human resource decisions about promotions, transfers, and terminations. Evaluations also identify training and development needs. They pinpoint employee skills and competencies for which remedial programs can be developed. Finally, they provide feedback to employees on how the organization views their performance and are often the basis for reward allocations, including merit pay increases.
Because our interest is in organizational behavior, here we emphasize performance evaluation as a mechanism for providing feedback and determining reward allocations.
What Do We Evaluate? The criteria management chooses to evaluate will have a major influence on what employees do. The three most popular sets of criteria are individual task outcomes, behaviors, and traits.
Individual Task Outcomes If ends count rather then means, management should evaluate an employee’s task on outcomes such as quantity produced, scrap generated, and cost per unit of production for a plant manager or on overall sales volume in the territory, dollar increase in sales, and number of new accounts established for a salesperson.
Behaviors It is difficult to attribute specific outcomes to the actions of employees in advisory or support positions or employees whose work assignments are part of a group effort. We may readily evaluate the group’s performance, but if it is hand to identify the contribution of each group member, management will often evaluate the employee’s behavior. A plant manager might be evaluated on promptness in submitting monthly reports or leadership style, and a salesperson on average number of contact calls made per day or sick days used per year.
Measured behaviors needn’t be limited to those directly related to individual productivity. As we pointed out in discussing organizational citizenship behavior (see Chapters 1 and 3), helping others, making suggestions for improvements, and volunteering for extra duties make work groups and organizations more effective and often are incorporated into evaluations of employee performance.
Traits The weakest criteria, because they’re furthest removed form actual job performance, are individual traits. Having a good attitude, showing confidence, being dependable, looking busy, or possessing a wealth of experience may or may not be highly correlated with positive task outcomes, but it’s naïve to ignore the reality that organizations still use such traits to assess job performance.
Who Should Do the Evaluating?
Who should evaluate an employee’s performance? By tradition, the task has fallen to managers because they are held responsible for their employees’ performance. But others may do the job better.
With many of today’s organizations using self-managed teams, telecommuting, and other organizing devices that distance form employees, the immediate superior may not be the most reliable judge of an employee’s
545
performance. Peers and even subordinates are being asked to take part in the process, and employees are participating in their own evaluations. One survey found about half of executives and 53 percent of employees now have input into their performance evaluations. As you might expect, self-evaluations often suffer form overinflated assessment and self-serving bias, and they seldom agree with superiors’ ratings. They are probably better suited to developmental than evaluative purposes and should be combined with other sources of information to reduce rating errors.
In most situations, it is highly advisable to use multiple sources of ratings. Any individual performance rating may say as much about the rater as about the person being evaluated. By averaging across raters, we can obtain a more reliable, unbiased, and accurate performance evaluation
Another popular approach to performance evaluation is 360-degree evaluations. These provide performance feedback from the employee’s full circle of daily contacts, from mailroom workers to customers to bosses to peers (see Exhibit 17-2). The number of appraisals can be as few as 3 or 4 or as many as 25; most organizations collect 5 to 10 per employee.
What’s the appeal of the 360-degree appraisal? By relying on feedback from co-workers, customers, and subordinates, organizations are hoping to give everyone a sense of participation in the review process and gain more accurate
Evidence on the effectiveness of the 360-degree evaluation is mixed. It pro-vides employees with a wider perspective on their performance, but many organizations don’t spend the time to train evaluators in giving constructive criticism. Some 360-degree evaluations allow employees to choose the peers and subordinates who evaluate them, which can artificially inflate feedback. It’s also difficult to reconcile disagreements between rater groups. There is clear evidence that
546
peers tend to give much more lenient ratings than supervisors or subordinates, and peers also tend to make more errors in appraising performance.
Methods of Performance Evaluation
We’ve discussed what we evaluate and who should do the evaluating. New we ask: How do we evaluate an employee’s performance? What are the specific techniques for evaluation?
Written Essays Probably the simplest method is to write a narrative describing an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. The written essay requires no complex forms or extensive training to complete. But, with this method, a useful appraisal may be determined as much by the evaluator’s writing skill as by the employee’s actual level of performance. It’s also difficult to compare essays for different employees (or for the same employees written by different managers) because there is no standardized scoring key.
Critical Incidents Critical incidents focus the evaluator’s attention on the difference between executing a job effectively and executing it ineffectively. The appraiser describes what the employee did that was especially effective or ineffective in a situation, citing only specific behaviors. A list of such critical incidents provides a rich set of examples to show the employee desirable behaviors and those that call for improvement.
Graphic Rating Scales One of the oldest and most popular methods of evaluation is graphic rating scales. The evaluator goes through a set of
547
performance factors-such as quantity and quality of work, depth of knowledge, cooperation attendance, and initiative-and rates each on incremental scales. The scales may specify, say, five points, so job knowledge might be rated 1 (“is poorly informed about work duties”) to 5 (“has complete mastery of all phases of the job”). Although they don’t provide the depth of information that essays or critical incidents do, graphic rating scales are less time consuming to develop and administer and allow for quantitative analysis and comparison.
Behaviorally Anchored Rating Scales Behaviorally anchored rating scales (BARS) combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates employees on items along a continuum, but the items are examples of actual behavior on the job rather than general descriptions or traits. To develop the BARS, participants first contribute specific illustrations of effective and ineffective behavior, which are translated into a set of performance dimensions with varying levels of quality.
Forced Comparisons Forced Comparisons evaluate one individual’s performance against the performance of another or others. It is a relative rather than an absolute measuring device. The tow most popular comparisons are group order ranking and individual ranking
Group order ranking requires the evaluator to place employees into a particular classification, such as top one-fifth or second one-fifth. If a rater has 20 employees, only 4 can be in the top fifth and, of course, 4 must also be relegated to the bottom fifth. This method is often used in recommending students to graduate schools.
The Individual ranking approach rank-orders employees from best to worst. If the manager is required to appraise 30 employees, the difference between the 1st and 2nd employee is assumed to be the same as that between the 21st and 22nd. Some employees may be closely grouped, but no ties are permitted. The result is a clear ordering form the highest performer to the lowest.
One parallel to forced ranking is forced distribution of college grades. Why would universities do this? As shown in Exhibit 17-3, average GPAs have gotten much higher over time. Although it is not exactly clear why this increase has occurred over time, many attribute the rise in high letter grades to the popularity of student evaluations as a means of assessing professor performance. Generous grades might produce higher student evaluations. It’s also the case that giving higher grades can help students become more competitive candidates for graduate school and jobs.
In response to grade inflation, some colleges have instituted forced grade distributions, whereby professors must give a cert in percentage of A’s, B’s, and G’s. This is exactly what Princeton recently did; each department can now give A’s to no more then 35 percent of its students.
Suggestions for Improving Performance Evaluations
8 Show how managers can improve performance evaluations
The performance evaluation process is a potential minefield. Evaluators can unconsciously inflate evaluations (positive leniency), understate performance (negative leniency), or allow the assessment of one characteristic to unduly influence the assessment of others (the halo error). Some appraisers bias their evaluations by unconsciously favoring p
วัตถุประสงค์ของการประเมินประสิทธิภาพประเมินประสิทธิภาพบริการจำนวนวัตถุประสงค์ หนึ่งจะช่วยให้การจัดการทรัพยากรบุคคลทั่วไปตัดสินใจเกี่ยวกับการส่งเสริมการขาย โอนย้าย และการเลิกจ้าง ประเมินระบุความต้องการพัฒนาและฝึกอบรม พวกเขาระบุทักษะของพนักงานและความสามารถที่สามารถพัฒนาโปรแกรมที่ทำ ในที่สุด พวกเขาแสดงความคิดเห็นกับพนักงานในองค์กรมุมมองประสิทธิภาพการทำงานของพวกเขาวิธี และเป็นพื้นฐานสำหรับการปันส่วนรางวัล รวมทั้งการเพิ่มค่าจ้างตามผลงานมักจะ เนื่องจากเราสนใจในพฤติกรรมองค์กร ที่นี่เราเน้นประสิทธิภาพการประเมินผลเป็นกลไกสำหรับการให้ผลป้อนกลับ และการกำหนดรางวัลปันส่วนเราประเมินอะไร เกณฑ์การเลือกจัดการประเมินจะมีอิทธิพลสำคัญในการทำงานของพนักงาน สามชุดที่นิยมมากที่สุดของเงื่อนไขมีผลงาน พฤติกรรม และลักษณะแต่ละงานผลถ้าสิ้นสุดลงนับแต่ นั้นหมาย ถึง การจัดการควรประเมินงานของพนักงานผลลัพธ์เช่นปริมาณผลิต ของเสียสร้าง และต้นทุนต่อหน่วยของผู้จัดการโรงงานผลิต หรือปริมาณขายทั้งหมดในอาณาเขต เพิ่มดอลลาร์ในการขาย และหมายเลขบัญชีใหม่ที่ก่อตั้งขึ้นสำหรับพนักงานขาย ลักษณะการทำงานจึงยากที่จะแสดงเฉพาะผลการดำเนินการของพนักงานในตำแหน่งที่ปรึกษาหรือฝ่ายสนับสนุนหรือกำหนดงานที่เป็นส่วนหนึ่งของความพยายามของกลุ่มพนักงาน เราอาจพร้อมประเมินประสิทธิภาพของกลุ่ม แต่ถ้าเป็นมือระบุสัดส่วนของสมาชิกแต่ละกลุ่ม จัดการมักจะประเมินพฤติกรรมของพนักงาน ผู้จัดการโรงงานอาจมีประเมินใน promptness ในการส่งรายงานประจำเดือน หรือภาวะผู้นำแบบ และพนักงานขายโดยเฉลี่ยจำนวนการโทรติดต่อที่ทำต่อวันหรือวันลาป่วยที่ใช้ต่อปี วัดพฤติกรรมไม่จำเป็นต้องถูกจำกัดไปยังผู้ที่เกี่ยวข้องโดยตรงกับผลผลิตแต่ละ ตามที่เราชี้ให้เห็นการพูดถึงเรื่องพฤติกรรม (ดูบทที่ 1 และ 3), ช่วยเหลือผู้อื่น ทำข้อเสนอแนะสำหรับการปรับปรุง และอาสาสมัครสำหรับหนักทำให้กลุ่มทำงานและองค์กรที่มีประสิทธิภาพมากขึ้น และมักจะรวมอยู่ในการประเมินประสิทธิภาพการทำงานของพนักงานลักษณะเงื่อนไขกำจัดจุด เพราะพวกเขากำลัง furthest เอาแบบฟอร์มปฏิบัติงานจริง มีลักษณะแต่ละ มีทัศนคติที่ดี แสดงความเชื่อมั่น การเชื่อถือได้ มองว่าง มีประสบการณ์มากมายอาจ หรืออาจ correlated สินค้าจะสูงกับผลงานบวกไม่ แต่ไม่มีขำน่าจะละเว้นความจริงที่ว่า องค์กรยังคงใช้ลักษณะดังกล่าวเพื่อประเมินการปฏิบัติงานที่ควรทำการประเมินอย่างไรที่ควรประเมินประสิทธิภาพการทำงานของพนักงานหรือไม่ โดยประเพณี งานได้ลดลงผู้จัดการเนื่องจากพวกเขาจะชอบการปฏิบัติงานของพนักงาน แต่คนอื่นอาจทำงานได้ดี With many of today’s organizations using self-managed teams, telecommuting, and other organizing devices that distance form employees, the immediate superior may not be the most reliable judge of an employee’s 545performance. Peers and even subordinates are being asked to take part in the process, and employees are participating in their own evaluations. One survey found about half of executives and 53 percent of employees now have input into their performance evaluations. As you might expect, self-evaluations often suffer form overinflated assessment and self-serving bias, and they seldom agree with superiors’ ratings. They are probably better suited to developmental than evaluative purposes and should be combined with other sources of information to reduce rating errors. In most situations, it is highly advisable to use multiple sources of ratings. Any individual performance rating may say as much about the rater as about the person being evaluated. By averaging across raters, we can obtain a more reliable, unbiased, and accurate performance evaluationAnother popular approach to performance evaluation is 360-degree evaluations. These provide performance feedback from the employee’s full circle of daily contacts, from mailroom workers to customers to bosses to peers (see Exhibit 17-2). The number of appraisals can be as few as 3 or 4 or as many as 25; most organizations collect 5 to 10 per employee.What’s the appeal of the 360-degree appraisal? By relying on feedback from co-workers, customers, and subordinates, organizations are hoping to give everyone a sense of participation in the review process and gain more accurate Evidence on the effectiveness of the 360-degree evaluation is mixed. It pro-vides employees with a wider perspective on their performance, but many organizations don’t spend the time to train evaluators in giving constructive criticism. Some 360-degree evaluations allow employees to choose the peers and subordinates who evaluate them, which can artificially inflate feedback. It’s also difficult to reconcile disagreements between rater groups. There is clear evidence that 546 peers tend to give much more lenient ratings than supervisors or subordinates, and peers also tend to make more errors in appraising performance.Methods of Performance EvaluationWe’ve discussed what we evaluate and who should do the evaluating. New we ask: How do we evaluate an employee’s performance? What are the specific techniques for evaluation?Written Essays Probably the simplest method is to write a narrative describing an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. The written essay requires no complex forms or extensive training to complete. But, with this method, a useful appraisal may be determined as much by the evaluator’s writing skill as by the employee’s actual level of performance. It’s also difficult to compare essays for different employees (or for the same employees written by different managers) because there is no standardized scoring key.Critical Incidents Critical incidents focus the evaluator’s attention on the difference between executing a job effectively and executing it ineffectively. The appraiser describes what the employee did that was especially effective or ineffective in a situation, citing only specific behaviors. A list of such critical incidents provides a rich set of examples to show the employee desirable behaviors and those that call for improvement.Graphic Rating Scales One of the oldest and most popular methods of evaluation is graphic rating scales. The evaluator goes through a set of 547performance factors-such as quantity and quality of work, depth of knowledge, cooperation attendance, and initiative-and rates each on incremental scales. The scales may specify, say, five points, so job knowledge might be rated 1 (“is poorly informed about work duties”) to 5 (“has complete mastery of all phases of the job”). Although they don’t provide the depth of information that essays or critical incidents do, graphic rating scales are less time consuming to develop and administer and allow for quantitative analysis and comparison.Behaviorally Anchored Rating Scales Behaviorally anchored rating scales (BARS) combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates employees on items along a continuum, but the items are examples of actual behavior on the job rather than general descriptions or traits. To develop the BARS, participants first contribute specific illustrations of effective and ineffective behavior, which are translated into a set of performance dimensions with varying levels of quality.Forced Comparisons Forced Comparisons evaluate one individual’s performance against the performance of another or others. It is a relative rather than an absolute measuring device. The tow most popular comparisons are group order ranking and individual ranking Group order ranking requires the evaluator to place employees into a particular classification, such as top one-fifth or second one-fifth. If a rater has 20 employees, only 4 can be in the top fifth and, of course, 4 must also be relegated to the bottom fifth. This method is often used in recommending students to graduate schools. The Individual ranking approach rank-orders employees from best to worst. If the manager is required to appraise 30 employees, the difference between the 1st and 2nd employee is assumed to be the same as that between the 21st and 22nd. Some employees may be closely grouped, but no ties are permitted. The result is a clear ordering form the highest performer to the lowest.One parallel to forced ranking is forced distribution of college grades. Why would universities do this? As shown in Exhibit 17-3, average GPAs have gotten much higher over time. Although it is not exactly clear why this increase has occurred over time, many attribute the rise in high letter grades to the popularity of student evaluations as a means of assessing professor performance. Generous grades might produce higher student evaluations. It’s also the case that giving higher grades can help students become more competitive candidates for graduate school and jobs.In response to grade inflation, some colleges have instituted forced grade distributions, whereby professors must give a cert in percentage of A’s, B’s, and G’s. This is exactly what Princeton recently did; each department can now give A’s to no more then 35 percent of its students. Suggestions for Improving Performance Evaluations8 Show how managers can improve performance evaluations The performance evaluation process is a potential minefield. Evaluators can unconsciously inflate evaluations (positive leniency), understate performance (negative leniency), or allow the assessment of one characteristic to unduly influence the assessment of others (the halo error). Some appraisers bias their evaluations by unconsciously favoring p
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