A really good job description is necessary before a performance appraisal; update job descriptions if necessary.
Performance evaluation is defined as the process of evaluating how someone is functioning.
- an employee's performance is rated
- ratings are for a specified time period
- one system is applied to all employees
- mandatory
- ratings are preserved by the employer, i.e. kept on file
Why do we do performance appraisals?
- to assess how well the individual is doing their job
- we want to them to have a motiovational impact for the employee
- to award a pay increase
- to justify a layoff
- to develop coaching
- as a basis for discipline
- the board requires it
- they're time-consuming
- personnel are not trained to provide feedback
- the performance appraisal system isn't integrated well with other company systems
- goals for the performance appraisal system are incompatible
- categorization and stereotyping
- favoritism
- gender, age and race biases
- leniency
- severity
- halo and horn
- recency (i.e., who can remember what happened 6 months ago)
- changes the psychological context
- peers can provide relevant information
- potentially more accurate than traditional performance appraisal
- requires acceptance by all on the team
- better for development than traditional performance appraisal systems
- gives employees a voice when being appraised
- raters need to see the value of their efforts
- feedback seen as a valuable tool
- still need to agree upon standards
- they're legally required
- because we want the results
- we think people need feedback
- we need to determine merit raises
- it erodes performance
- it's damaging to morale and motivation
- it fosters a short-term view
- it fosters fear and lack of trust
- the prcess is expensive and time-consuming
- feedback & recognition
- involvement in job design
- annual performance appraisal isn't the right place to coach the poor performer
- instead use a separate evaluative process with goals and
- letter of commendation
- announcement in newsletter
- peer-nominated awards
- passes to local businesses
- best parking spot for a week
- offer creative benefits like "bring your pet to work day"
- consider sabbatical leaves
- pizza party
- eliminate ratings if you can; if not use pass/fail if you must; try a 1-5 rating system
- make the process collaborative, giving the employee as much of the responsibility as possible; give employees a feedback source
- provide an alternative annual feedback session
- don't require appraisals to be placed in the personnel file; perhaps the supervisor and employee could keep it themselves
- instead of performance appraisals, use a written feedback system with no reference to pay
- require performance appraisals only for those who need improvement