Chapter 7
Chapter 7
Uses
• Administrative
• Developmental
• Strategic
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Identification
Aspects or dimensions of performance
Many dimensions and descriptions
What the organization tries to achieve or its
strategic, operational, and operative objectives
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Question
What are the dimensions of being a student
as a job?
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Measurement: definition and tools
Assigning numbers or labels to reflect an
employee’s performance on the identified
characteristics or dimensions
Judgment type
• Relative judgment
• Absolute judgment
Measurement focus
• Trait appraisal
• Behavioral appraisal
• Outcome appraisal
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Measurement: relative judgment
Comparing an employee’s performance to the
performance of other employees doing the
same job
Recognizing small significant differences
No information about absolute differences
No information about absolute performance
Manufacturing differences
Ineffective feedback
Administrative use
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Measurement: absolute judgment
Comparing an employee’s performance with
predetermined standards
Comparability across employees within
different organizational groups
Detailed and effective feedback
Cooperative work environment
Not recognizing small significant differences
Inconsistency between different evaluators
Developmental use
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Question
For which jobs or sectors, is relative judgment
more useful? Why?
For which jobs or sectors, is absolute
judgment more useful? Why?
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Measurement: trait
Developing judgments about employees’ traits
or individual characteristics
Quick indicator for relevant behavioral
tendencies
Ambiguity
Evaluator biases
Not including all relevant traits and difficulty
in weighing traits
Focus on personality rather than performance
and ineffective feedback
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Question
In which sectors is it more likely to use trait
measures? Why?
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Measurement: behavior
Evaluating whether an employee shows
expected behavioral standards
Concreteness and easy to measure
Concrete performance examples
Fast and effective feedback
Participative development and motivation
Time-consuming and difficult development
Detailed and exclusionary
Obsoleteness with organizational change
Biased standards
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Measurement: outcome
Assessing the achievement of an employee in
terms of outcomes and targets
Clarity and objectivity
Flexible standards
Relation to strategic goals
Ignorance of uncontrollable factors
Ignorance of performance processes
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Question
When are behavioral measures better than
outcome measures?
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Measurement: Reviewers
Supervisor
Self
Peer
Subordinate
Customer
Multiple
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Management
Appraisal interview
Performance improvement
• Identifying or exploring the causes of
performance problems
• Developing an action plan to control the
problems
• Empowering workers
• Giving feedback to workers
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Challenges
Rater errors and bias
• Halo error
• Restriction of range error
• Personal bias
• Comparability
Liking
Individual vs. group focus in teams
Organizational politics
• Rational vs. political
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Question
In which sectors are performance appraisals
more rational? Why?
In which sectors are performance appraisals
more political? Why?
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