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Chapter 7
Evaluating EmployeePerformance
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Competencies for
Evaluating Employee Performance
1. Describe general performance appraisal issues and
summarize the functions of performance
appraisals.
2. Identify and discuss potential problems with
performance appraisals.
3. Describe the principal types of rating systems used
in appraising employee performance.
4. Describe commonly used methods of appraising
performance.(continued)
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Competencies for
Evaluating Employee Performance
5. Identify who should evaluate performance, and
discuss objectives for programs that train managersand supervisors to conduct performance appraisals.
6. Discuss how often performance appraisals should
be conducted, identify legal issues relating toperformance appraisals, and summarize keys to
developing an effective employee appraisal system.
(continued)
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Functions of
Performance Appraisals
Performance feedback
Employee training and development
Decision-making tool
Evaluation of training/policies/programs Validation of selection process
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Validity/Reliability Errors
Construct validity
Content validity
Inter-rater reliability
Consistency
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Bias Errors
Leniency
Severity
Central tendency
Recency
Past anchoring
Halo
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Three Types of Employee Ratings
Trait-based
Behavior-based
Results-based
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Ranking Methods
Simple/straight ranking
Alternative ranking
Paired comparisons
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Performance Appraisal Methods
Forced distribution
Graphic rating scale
Behaviorally anchored rating scales Behavioral observation scale
Narrative essays
Critical incidents
Management by objectives
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Evaluators of Performance
Supervisor
Peer evaluations
Staff evaluations of managers
Self-appraisal
Guest appraisals
Multiple rater evaluation systems
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Keys to an Effective Employee
Appraisal System
Identify the functions the performance appraisal willserve
Develop sound criteria for the system
Identify the types of performance to measure
Choose the method of appraisal
Determine who will conduct appraisals and train them
Determine the frequency of performance appraisals
Make sure the system meets all legal requirements
Periodically evaluate the appraisal process