Welcome to Strategies for Unbiased Performance Evaluation!
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1 Welcome to Strategies for Unbiased Performance Evaluation!
2 Purpose of Material The modules in this presentation provide insight into errors made in performance evaluations and how to reduce such errors. Information contained in this document is based on research conducted by Dr. Stephen B. Knouse and prepared by Dr. Kizzy Parks.
3 Agenda Module 1: Rating Errors Module 2: Reducing Rating Errors Module 3: Techniques for Improving Performance Evaluations Module 4: Frequently Asked Questions
4 Rating Errors Module 1
5 Module 1 Learning Objectives Identify and discuss the various types of rating errors: Inflated Ratings Halo Effect Recency Effect Stereotyping
6 Performance Evaluation Sometimes termed performance appraisal, is perhaps the most difficult human resource management function. One reason is that so much rests on performance evaluation promotion, job placement, transfer, and even downsizing these days. Another reason is that many times performance evaluation ratings are almost the only direct reward a supervisor controls. Hence, many supervisors use ratings as rewards for good performance and even as incentives for future good performance (e.g., Your past performance was OK, but I expect great things from you in the next evaluation period, so I am giving you a top rating. ).
7 Inflated Ratings Normal Distributions Should Occur Ex: On a 7-point scale, average should be a 4. In reality, average may be closer to 6. Why? Why Do Supervisors Inflate? Misperception of Organization Norms Elite organization, so everyone is superior. Misperception of Leadership Role Effective leader, so everyone is doing well. Used to impress management. Used as a reward Supervisors use evaluations to keep people satisfied.
8 Halo Effect Also causes inflated ratings, but only for a select few. Supervisor assumes certain employees do everything correctly, Therefore, rates these employees higher. Usually, the supervisor sees one thing done correctly and assumes everything else will be done that well. The supervisor making the Halo Effect error actually may not be observing enough of the individual s behavior.
9 Recency Effect Performance evaluations incorporate several months of performance. During this period, individuals exhibit a great deal of performance, which supervisors may (or may not) see. The supervisor may have trouble remembering all this performance. As human beings, we are subject to the Recency Effect. When reviewing an individual s performance, we can t possibly remember everything we ve seen, so by default, we evaluate the performance we remember best, which is usually what occurred in the last few weeks. The rating then becomes an evaluation of the last two weeks worth of work.
10 Stereotyping Classifying people into groups based on your beliefs about them. Used as shortcut for evaluations. Group people together and rate them all the same. It is simply easier to see a person as a member of a gender, age or racial/ethnic group and possessing what we consider as the group s characteristics than seeing that person as a unique individual with characteristics different from anyone else s.
11 Ideal Person Similar to Me Stereotype situation where supervisors rate people higher whom they see as similar to themselves. Supervisors usually have an idea about how the ideal person in a job should perform. This ideal person image is usually fairly similar to the supervisor. If I am a good manager, then other good managers and employees should operate like I do. Because they are good like I am, they require high ratings. Obviously, with the Ideal Person Similar to Me stereotype, subordinates less similar to the supervisor are less likely to fit the ideal person image and more likely to receive less favorable ratings.
12 Reducing Rating Errors Module 2
13 Module 2 Learning Objective Recognize how to reduce rating errors through: Performance Evaluation Training Adequate Evaluation of Performance Use of Job Anecdote File Not Using Performance Evaluation as a Primary Reward.
14 Performance Evaluation Training Research shows that putting supervisors through training: Increases awareness of various errors. Allows supervisors to recognize errors better. Supervisors are then more cognizant of possible errors when completing evaluations.
15 Adequate Evaluation of Performance Adequate Observational Data: This is a key to effective performance evaluation that many supervisors miss. If you have enough observational data on individuals, you can make more accurate evaluations of performance. What is enough data? Make sure observations are frequent enough. Make sure all the individual s different kinds of activity are being observed. Don t observe people at the same time every day. Subordinates quickly figure out the schedule and exhibit good performance during the expected visit. Randomize your observations (sometimes in the morning, sometimes the afternoon on different days), so subordinates cannot anticipate your visits.
16 Job Anecdote File Effective Way of Managing Data Organizes observational data to help eliminate the Recency Effect. All files are kept until evaluation time and then used as an accurate way to evaluate performance. See sample Job Anecdote File on next slide.
17 Sample Job Anecdote File Ratee: LCDR Jerry Abrams Period: 2nd to 3rd week in May Performance Examples Manpower briefing was well prepared and presented within the allotted time limit. CAPT Brown requested copy of slides. Showed CPO Cortez how to set up a data file on harassment complaints to track time, category, and resolution status. Progress report was polished very well. CAPT Deshotel claimed he could find no errors in it. Executive summary to retention report was too long. It went on for 2 ½ pages. CAPT Ewing sent a fairly strong letter criticizing his proposal for a reorganization of his remote site.
18 Don t Use Performance Evaluation as a Primary Reward Research shows that refocusing performance evaluation away from its role as a primary motivator can reduce inflated ratings. Evaluations should be used only as such; use other methods for rewards.
19 Techniques for Improving Performance Evaluation Module 3
20 Module 3 Learning Objectives Discuss five methods that improve performance evaluations.
21 Improving Performance Evaluation 1. Train supervisors on performance evaluation errors to make them aware of these errors and guard against them. 2. Conduct frequent, random, observation of individuals to be rated. 3. Conduct representative observation of these individuals to ensure that all aspects of their job performance are covered.
22 Improving Performance Evaluation (cont d) 4. Create and maintain a Job Anecdote File on each individual. 5. Re-assess other direct rewards supervisors can use to take the pressure off the performance evaluation rating as the primary reward directly controlled by the supervisor.
23 Frequently Asked Questions Module 4
24 How Do I Know If Rating Errors Are Occurring in My Organization? Keep track of performance evaluation statistics, particularly mean ratings and their variability (standard deviations). Ratings that don t approximate a normal distribution are suspect. Ratings skewed (bunched) to the right may show inflation. Individual attribute ratings on a form that are all skewed to the right may show the halo effect.
25 What are the Most Important Things to Remember in Preparing to Evaluate Performance? Perhaps the two most important ideas are: 1. Observing performance frequently enough; 2. Observing a sufficient number of different situations. Frequent and representative observation provides you with a large enough number of different data points to evaluate performance with statistically significant results.
26 Is There an Ideal Performance Evaluation System? Unfortunately, there is no ideal system. All performance evaluation systems have shortcomings. Therefore, we should not look at performance evaluation as an ideal human resource management technique, but rather an inexact system that we continuously try to improve.
27 How Does Performance Evaluation Link Into Diversity Management? Performance evaluation links to important functions, such as promotion and retention. Organizational members are very concerned that performance evaluation is fair and consistently performed without bias. These goals (fairness, consistency, and lack of bias) are also primary attributes of an effective diversity management program. Thus, an effective performance evaluation system is the primary antecedent of an effective diversity management effort.
28 References Arvy, R. D., & Murphy, K. R. (1998). Performance evaluation in work settings. Annual Review of Psychology, 49, This chapter reviews recent research and practice in performance evaluation. Borman, W. C. (1991). Job behavior, performance, and effectiveness. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (2nd Ed., Vol. 2, pp ). Palo Alto, CA: Consulting Psychologists Press. Dr. Walter Borman, an expert on performance appraisal, summarizes the rating errors as well as the various techniques of performance evaluation. Latham, G. P., & Wexley, K. N. (1993). Increasing productivity through performance appraisal. (2nd Ed.) Reading, MA: Addison-Wesley. This is one of the best texts available on performance evaluation.
29 For more information on DEOMI and our services visit:
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