1.  Appraisal Forms
 Characteristics of Appraisal Forms
 Determining Overall Rating
 Appraisal Period and Number of Meetings
 Who Should Provide Performance
Information?
 A Model of Rater Motivation
 Preventing Rating Distortion through Rater
Training Programs
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2.  Basic Employee Information
 Accountabilities, Objectives, and Standards
 Competencies and Indicators
 Major Achievements and Contributions
 Stakeholder Input
 Employee Comments
 Signatures
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3.  Developmental Achievements
 Developmental
 Needs
 Plans
 Goals
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4.  Simplicity
 Relevancy
 Descriptiveness
 Adaptability
 Comprehensiveness
 Definitional Clarity
 Communication
 Time Orientation
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5. Judgmental strategy
Mechanical strategy
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6. Number of Meetings
• Annual
• Semi-annual
• Quarterly
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7.  Anniversary date
 Supervisor doesn’t have to fill out forms at same
time
 Can’t tie rewards to fiscal year
 Fiscal year
 Rewards tied to fiscal year
 Goals tied to corporate goals
 May be burden to supervisor, depending on
implementation
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8.  System Inauguration
 Self-Appraisal
 Classical Performance Review
 Merit/Salary Review
 Development Plan
 Objective Setting
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9. 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
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10. Direct knowledge of employee
performance
 Supervisors
 Peers
 Subordinates
 Self
 Customers
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11.  Advantages
 Best position to evaluate performance vs.
strategic goals
 Make decisions about rewards
 Disadvantages
 Supervisor may not be able to directly
observe performance
 Evaluations may be biased
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12.  Advantages
 Assess teamwork
 Disadvantages
 Possible friendship bias
 May be less discriminating
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13.  Advantages
 Accurate when used for developmental
purposes
 Good position to assess some competencies
 Disadvantages
 Inflated when used for administrative purposes
 May fear retaliation (confidentiality is key)
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14.  Advantages
 Increased acceptance of decisions
 Decreased defensiveness during appraisal
interview
 Good position to track activities during review
period
 Disadvantages
 May be more lenient and biased
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15.  Advantages
 Employees become more focused on
meeting customer expectations
 Disadvantages
 Time
 Money
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16.  Expect disagreement
 Ensure employee receives feedback by
source
 Assign differential weights to scores by
source, depending on importance
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17.  Intentional errors
 Rating inflation
 Rating deflation
 Unintentional errors
 Due to complexity of task
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18. Expected Positive and
Negative Consequences of
Rating Accuracy
Probability of Experiencing
Positive & Negative
Consequences
Expected Positive and
Negative Consequences of
Rating Distortion
Probability of Experiencing
Positive & Negative
Consequences
Motivation to Provide
Accurate Ratings
Motivation to Distort Ratings
Rating Behavior

19.  Maximize merit raise/rewards
 Encourage employees
 Avoid creating written record
 Avoid confrontation with employees
 Promote undesired employees out of unit
 Make manager look good to his/her
supervisor
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20.  Shock employees
 Teach a lesson
 Send a message to employee
 Build a written record of poor
performance
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21. Prentice Hall, Inc. © 2006

22.  Information
 Motivation
 Identifying, observing, recording and
evaluating performance
 How to interact with employees when
they receive performance information
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23.  Reasons for implementing the
performance management system
 Information on the appraisal form and
system mechanics
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24. • Benefits of providing accurate ratings
• Tools for providing accurate ratings
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25.  How to identify and rank job activities
 How to observe, record, measure
performance
 How to minimize rating errors
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26.  How to conduct an appraisal interview
 How to train, counsel, and coach
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