Performance Reviews : Performance Appraisal

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Although performance reviews have been in place for generations, until recently, very little effort was given to understanding whether the process motivated employees or irritated the. One may develop the most technically sophisticated, accurate appraisal system, but if that system is not accepted and supported by employees, its effectiveness ultimately will be limited (Fischer, 2010).A review of the evidence supporting the use of feedback (such as performance appraisal) suggests that providing personnel with feedback is like gambling in the stock exchange: On average, you gain, yet the variance is such that you have a 40% chance of a (performance) loss following feedback (Kluger & DeNisi, 1996 Vol 119(2)).
Performance appraisal time is
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Horn error : The opposite of a halo error, downgrading an employee across all performance dimensions exclusively because of poor performance on one dimension. First impression error: developing a negative or positive opinion of an employee early in the review period and allowing that to negatively or positively influence all later perceptions of performance. Recency error: The opposite of first impression error. Allowing performance, either good or bad, at the end of the review period to play too large a role in determining an employee’s rating for the entire period. Leniency error: Consistently rating someone higher than is deserved. Severity error: The opposite of leniency error, rating someone consistently lower than is deserved. Central tendency error: Avoiding extremes in ratings across employees. Clone error: Giving better ratings to individuals who are like the rater in behavior and/or personality. Spillover error: Continuing to downgrade an employee for performance errors in prior rating periods. Steve Bruce lays out The 10 Sins of Performance Appraisers, Sin #1. Failure to set meaningful goals “Well, Sandy, I think we did fairly well this year, eh?” “Tracy, I was sort of hoping you’d make more progress this year.”

Evaluation is difficult when there aren’t clear, measurable goals. Many experts recommend the S-M-A-R-T approach to setting goals. That means goals should be: Specific, Measurable, Achievable,
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