Chapter 7: Performance Management Learning Objectives • Understand the concept of performance management. • Understand how performance appraisal contributes to performance management. • Know the attributes of a legally defensible performance appraisal system. • Understand the concept of person perception. • Understand the three major rating errors. • Know the various types of rating scales. • Explain the purpose of rater training. • Understand the bases of rater motivation. • Understand the basis of contextual performance. • Understand peer assessment, self-assessment, and 360-degree feedback. • Explain the use of performance appraisal interviews. 1
• Understand the concept of performance management.
• Understand how performance appraisal contributes to performance management.
• Know the attributes of a legally defensible performance appraisal system.
• Understand the concept of person perception.
• Understand the three major rating errors.
• Know the various types of rating scales.
• Explain the purpose of rater training.
• Understand the bases of rater motivation.
• Understand the basis of contextual performance.
• Understand peer assessment, self-assessment, and 360-degree feedback.
• Explain the use of performance appraisal interviews.
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Chapter Summary
• Performance management is the process of aligning all of the organization’s components to achieve high organizational performance.
• Performance appraisal is the evaluation of the organization’s personnel component.
• Performance appraisal is used to make important personnel decisions (such as retention and advancement) and as such is governed by fair employment laws.
• How employees are evaluated is related to how they are perceived in the workplace, which may include factors that have little to do with their performance.
• Supervisor ratings are the most common form of performance appraisal.
• I/O psychologists have developed various types of rating scales to evaluate job performance and have identified rating errors that occur with their use.
• Individuals can be trained to make higher-quality ratings; thus the judgment of employees is a learnable skill.
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Chapter Summary (continued)
•An organization may have inhibiting factors that influence a rater’s decision to give accurate and honest evaluations of employees.
• Appraisals of performance can be made by peers and subordinates (as well as oneself ) in addition to supervisors.
• 360-degree feedback is an approach to performance evaluation based on a confluence of ratings from people at multiple organizational levels. The technique is used for both developmental and administrative purposes.
• In some cultures it is not acceptable to solicit evaluations from any source except the supervisor.
