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Chapter 6 Performance Analytics Copyright © 2019 Chicago Business Press 6-1 Overview ◼ Components of Appraisal Forms ◼ Features of Appraisal Forms ◼ Determining Overall Rating ◼ Appraisal Period and Number of Meetings Copyright © 2019 Chicago Business Press 6-2 Overview (Continued) ◼ ◼ Who Should Provide Performance Information? Understanding Intentional Rating Distortion: A Model of Rater Motivation Copyright © 2019 Chicago Business Press 6-3 Appraisal Forms: Eight Desirable Features Copyright © 2019 Chicago Business Press 6-4 Determining Overall Rating ◼ Judgmental strategy • Consider every aspect of performance • Arrive at defensible summary ◼ Mechanical strategy • Consider scores assigned to each section • Add weighted scores to obtain overall scores Copyright © 2019 Chicago Business Press 6-5 Open-Ended (Comments) Sections ◼ Challenges • Difficult to systematically categorize and analyze • Quality, length, and content vary ◼ Tools to overcome challenges • Computer-aided text analysis (CATA) software • Establish goals of information provided • Training in systematic and standardized rating skills Copyright © 2019 Chicago Business Press 6-6 Appraisal Period Number of Meetings ◼ Annual • May not provide sufficient opportunity for supervisor/employee discussion ◼ Semi-annual ◼ Quarterly Copyright © 2019 Chicago Business Press 6-7 Six Types of Formal Meetings (Can Be Combined) 1. System Inauguration 2. Self-Appraisal 3. Classical Performance Review 4. Merit/Salary Review 5. Development Plan 6. Objective Setting Copyright © 2019 Chicago Business Press 6-8 Who Should Provide Performance Information? ◼ Employees should be involved in selecting • Which sources evaluate • Which performance dimensions ◼ When employees are actively involved • Higher acceptance of results • Perception that system is fair Copyright © 2019 Chicago Business Press 6-9 Who Should Provide Performance Information? Direct knowledge of employee performance ◼ Supervisors ◼ Peers ◼ Direct reports ◼ Self ◼ Customers ◼ Employee Performance Monitoring and Big Data Copyright © 2019 Chicago Business Press 6-10 Company Spotlight ◼ ◼ ◼ ◼ ◼ Intermex required employees to download a mobile application to track client-related employee communication and travel The app had to be active 24 hours a day, 7 days a week to function effectively When an employee deactivated the app, she fired for noncompliance Employee sued Intermex for $500,000 Lesson: • Critical to consider employee reactions before implementing employee performance monitoring systems Copyright © 2019 Chicago Business Press 6-11 Intermex and the lawsuit ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=e7VZ yEXQH_c Why was Intermex subjected to a lawsuit? What could have Intermex done differently? What are other some of the advantages and disadvantages of using employee performance monitoring? Copyright © 2019 Chicago Business Press 6-12 Recommendations to increase chances of effective employee performance monitoring ◼ ◼ ◼ ◼ Be Transparent Be aware of all potential employee reactions Use it for learning and development Restrict use to job-related behaviors and results Copyright © 2019 Chicago Business Press 6-13 Employee Performance Monitoring ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=yBmAtU WxCXU Reflect on the different reactions to employee performance monitoring in this video. Why do they exist? Are they justified? What are some of the recommendations for employee performance monitoring explained here? What are some of the advantages? What are some of the disadvantages? Copyright © 2019 Chicago Business Press 6-14 Disagreement Across Sources of Performance Data ◼ ◼ ◼ ◼ Expect disagreements Ensure employee receives feedback by source Assign differential weights to scores by source, depending on importance Ensure employees take active role in selecting which sources will rate which dimensions Copyright © 2019 Chicago Business Press 6-15 Understanding Intentional Rating Distortions: A Model of Rater Motivation Types of Rating Errors ◼ Intentional errors • Rating inflation • Rating deflation ◼ Unintentional errors • Due to complexity of task Copyright © 2019 Chicago Business Press 6-16 Intentional Rating Errors Influenced by ◼ Motivation to provide accurate ratings ◼ Motivation to distort ratings Motivation is determined by ◼ Whether rater expects consequences of accurate ratings Whether probability of receiving rewards or punishments will be high if accurate ratings are provided ◼ Copyright © 2019 Chicago Business Press 6-17 Rating Inflation and Deflation ◼ Rating Inflation (also called leniency error) • When raters assign high lenient ratings to most or all employees ◼ Rating Deflations (also called severity error) • When raters assign low ratings to most or all employees Copyright © 2019 Chicago Business Press 6-18 Motivation for Rating Distortion Copyright © 2019 Chicago Business Press 6-19 Reducing Intentional Rating Distortion Recommendations: ◼ ◼ Provide incentives for providing accurate ratings Increase accountabilities • Have raters justify their ratings • Have raters justify their ratings in a face-toface meeting Copyright © 2019 Chicago Business Press 6-20 Motivation—What’s in It for Me? ◼ Benefits of providing accurate ratings need to outweigh costs • Assessing the performance of the supervisor in implementing and communicating performance management • Tools for providing accurate ratings (e.g., training on how to conduct appraisal interview) Copyright © 2019 Chicago Business Press 6-21 Quick Review ◼ Appraisal Forms ◼ Characteristics of Appraisal Forms ◼ Determining Overall Rating ◼ Appraisal Period and Number of Meetings ◼ Who Should Provide Performance Information? ◼ Understanding Intentional Rating Distortion: A Model of Rater Motivation Copyright © 2019 Chicago Business Press 6-22 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2019 Chicago Business Press Copyright © 2019 Chicago Business Press 1-23 Case study In January of 2020, you were hired as the HR Director by your close friend, the President of Technological Innovation and Practice, Inc. Technological Innovation and Practice, Inc. is a large, growing information technology company that serves businesses around the globe. Currently, the company employs over 40 full-time IT professionals, 15 customer service agents, and 11 administrative assistants. In February of 2020, the company projected that by January of 2021, it would employ over 480 full-time professionals. While the organization has a strong employee handbook in place, the performance management system is lacking. It appears that performance appraisals have been conducted once a year; however, employees often feel shocked by their appraisal. Scenario Mohammed, who has worked for the organization since its inception, has explained that the formal meetings, which take place annually, are problematic. He has informed you that upper-level management provides feedback to employees; however, employees are not allowed to contribute during the feedback process. In fact, Mohammed stated that employees are only present for the meeting and cannot provide any rebuttal if they do not agree with the rating given. Furthermore, the assessment used does not allow for comments and only utilizes a four-point Likert-type scale. In the assessment, all employees, regardless of position/roles and responsibilities, are assessed based upon three factors: (1) communication, (2) problem-solving abilities, and (3) ability to work with teammates. Based upon the information provided by Mohammed, address the following: • What are the benefits and drawbacks associated with the annual performance review process, as it currently stands? What recommendations would you make to improve the annual performance review process? • What information should be considered when creating a strong performance evaluation form? What are some of the issues associated with the current form? What recommendations would you make to improve the current performance appraisal form? Why? • What is the relationship between an organization’s annual performance review process/evaluation assessment and employee motivation? Ensure to integrate sufficient support from scholarly resources throughout the assignment. Use suitable headings and subheadings to organize the work in an appropriate manner. Be sure to support your statements with logic and argument, citing any sources referenced. Your well-written paper should meet the following requirements: • • • Be 6 pages in length, which does not include the title page, abstract, or required reference page, which are never a part of the content minimum requirements. Use Saudi Electronic University academic writing standards and APA style guidelines. Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles. References should includes performance management 4th edition Herman Aguinis
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