Performance Appraisal

AuthorLee Wonsick Lee
Pages583-587

Page 583

Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has.

There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development.

The purpose of the performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.

CRITICAL CRITERIA OF DEVELOPING A PA SYSTEM

In order for performance appraisal information to be useful, the PA system must be able to consistently produce

Figure 1

Partial graphic rating scale

Partial graphic rating scale
Instructions: Carefully review employee's work performance during the period indicated above and write in the space an appropriate rating as described below.
Unsatisfactory. Performance outcomes are generally unacceptable. Needs Improvement. Performance is deficient in certain areas and improvement is necessary. Average. Performance results consistently meet requirements. Good. Performance outcomes frequently exceed requirements. Excellent. Performance outcomes consistently exceed requirements. Performance is of high quality in every aspect.
Evaluation Factors:
_____ 1. Quantity of work: Considering the volume of work achieved, is he/she at the acceptable level?
_____ 2. Quality of work: Considering accuracy, precision, completeness, and other quality of work, is he/she at the acceptable level?
_____ 3. Job knowledge: Does he/she have adequate skills and knowledge to perform the job?


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reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment.

Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. If they are not, the PA system encourages the wrong kind of work behaviors and produces unintended, frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many officers.

WHAT TO EVALUATE

The first important step in developing a PA system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes.

Traits

Many employees are assessed according to their traits, such as personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees. But traits are not always directly related to job performance. Trait-based assessment lacks validity and thus frequently raises legal questions.

Behaviors

For many jobs, performance is so broadly defined or so conceptual in nature—such as ensuring public safety in the police department—that it is hard to come up with reliable performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace.

Task Outcomes

When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended. However, it has its own pitfalls. There is a problem if employee behaviors are not directly related to the task outcome. Too narrow a focus on measuring outcome...

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