V semester Industrial Psychology notes

Appraising Performance

   Performance
      “what is actually done on a j.o.b”
   Effectiveness
      Evaluation of result of performance
   “Performance Appraisal is the periodic, formal evaluation of employee performance for the purpose of making career decisions.

Biases in Appraisal 

• Racial /Regional Biases & Discriminations
•     : subjective human judgments
• Age Biases : old vs. young?
• Non-uniform Criteria for Compliance
• Halo Effect : to judge all attributes of person based on a single attribute .

Need for Performance Appraisals……. 

1. Provide Systematic judgments for salary hikes,transfers,demotions or terminations
2. Feedback Mechanisms:telling subordinate ‘how’ effective is their performance
3. Base for coaching & counselling and further training.

Where are Performance Appraisals Needed: 

   ADMINISTRATION : pay & promotions
   RESEARCH :
    1. Validating Selection Instruments
   2. Assessing Training Requirements
   Employee Improvement- feedback
   Personnel Decisions : wage/transfer etc.

Methods of PerformanceAppraisal   

   Objective Production Data
   Personnel data
   Judgmental Data

Employee Comparison Methods 

Objective Production 

Computerised Performance Monitoring 

• Assessed in terms of tangibles produced created :e.g..Assembly line, sales,volumes.
• Variability in performance may be due to performance conditions
• Do not tell whole story – quality of product  etc not measured.

 

• Unit of work : keystroke,errors etc stored elecronically
• Telecommunications,Airline,Hotel Telephone operators etc.
• Stressful : Observed all the time . –continuous Monitoring.
• Advantage: Objective, immediate Feedback
• Reduced Rater Bias

Judgmental data
 

Paired Comparison Approach  

• More widely used because objective measures fail where unit of work not quantifuable e.g.. Documentary film maker.
• Subjective assessments
• Supervisors –Peers-Self :
• Accord Ranks on Objective Scales  -360degree

 

• Between two workers. N(N-1)/2

+ Same rank to those of equal ability

+Judgment simpler

• -Increases no. of Comparisons
• - Restricted to Small workforce
• or Single ranking of job effectiveness

Appraisal Techniques 

Types of Judgment Methods 

Advantages vs. Disadvantages 

   Judgmental Methods
      BARS : Behavioral Rating Scales
360 degree appraisals.
      Paired Comparison Method :
N(N-1)/2
      Behavioral Observation Scales :
critical incidents
      Management by Objectives MBO: mutually agreed upon goals 

• BARS/BOS techniques rely heavily on observational skills of supervisor
• May be biased
• Identification of critical incidents which define performance be incomplete
• Frequency of critical incident performances assessed –total is summation of all.

Management by Objectives [MBO]
 

Goals/Period –Mutually agreed upon ‘Objectives’ 
Focus  is on ‘Results’ not on traits or abilities ‘on wht is done’…






 
Two Phases  

 
Advantages Disadvantages:
 
+ Increase Employee Motivation & Productivity  because  self Set Goals 
--  May set far reaching – unattainable goals non-realistic 
 

   Goal setting
      Mutually decide goals
      Given Period 6months/quarter/Annual
      Important to have Realistic Goals
   Performance Review
      Extent to which goals met assessed  mutually
      Result based not trait based assessment.
Performance Appraisal For Managers 

• Objective Techniques more for Blue  Collar Workers
• Managers white collar workers performance cannot be quantified > subjective

 

• Assessment Centres
• Evaluation by Superiors
• Peer Rating
• Self Evaluation Self Ratings
• Evaluation by Subordinnated [juniors]