scholarly journals Getting Rid of Performance Ratings: Genius or Folly? A Debate

2016 ◽  
Vol 9 (2) ◽  
pp. 219-252 ◽  
Author(s):  
Seymour Adler ◽  
Michael Campion ◽  
Alan Colquitt ◽  
Amy Grubb ◽  
Kevin Murphy ◽  
...  

Despite years of research and practice, dissatisfaction with performance appraisal is at an all-time high. Organizations are contemplating changes to their performance management systems, the most controversial of which is whether to eliminate performance ratings. The pros and cons of retaining performance ratings were the subject of a lively, standing-room-only debate at the 2015 Society for Industrial and Organizational Psychology conference in Philadelphia (Adler, 2015). Given the high interest in this topic, this article recaps the points made by the panelists who participated in the debate. The arguments for eliminating ratings include these: (a) the disappointing interventions, (b) the disagreement when multiple raters evaluate the same performance, (c) the failure to develop adequate criteria for evaluating ratings, (d) the weak relationship between the performance of ratees and the ratings they receive, (e) the conflicting purposes of performance ratings in organizations, (f) the inconsistent effects of performance feedback on subsequent performance, and (g) the weak relationship between performance rating research and practice in organizations. The arguments for retaining ratings include (a) the recognition that changing the rating process is likely to have minimal effect on the performance management process as a whole, (b) performance is always evaluated in some manner, (c) “too hard” is no excuse for industrial–organizational (I-O) psychology, (d) ratings and differentiated evaluations have many merits for improving organizations, (e) artificial tradeoffs are driving organizations to inappropriately abandon ratings, (f) the alternatives to ratings may be worse, and (g) the better questions are these: How could performance ratings be improved, and are we conducting the entire performance management process properly? The article closes with questions organizational members have found useful for driving effective performance management reform.

2017 ◽  
Vol 3 (1) ◽  
pp. 7-19
Author(s):  
Rebecca A. Bull Schaefer

Although the annual performance review has received much criticism from practitioners and researchers alike, organizations continue to use coaching and/or reviews to maximize employee effectiveness and minimize liabilities. A semester class is a great context to practice skills relating to tracking and reviewing performance. This article describes how management instructors can implement performance reviews as an experiential exercise designed to improve students’ confidence related to receiving performance feedback. During a “Performance Appraisal Week,” instructors conduct individual performance reviews designed to discuss individual students’ class performance and elicit student–teacher feedback. Students experience the emotions of a professional face-to-face review, practice multiple-source and multiple-measure feedback interpretation, engage in performance-related dialogue, and consider plans to meet goals. During a full-class reflection and debrief, students apply concepts and discuss elements of performance management systems, and they build their confidence in how to navigate performance-related feedback discussions.


Author(s):  
Jeanette N. Cleveland

Contexts shape the way the performance appraisal (PA) and performance management (PM) systems are designed and utilized. Yet, the analysis of situations, especially more macro-context, including cultural, economic, and political/legal values, is one of the most underresearched areas in applied psychology despite the fact that context is likely to be critical to understanding the success and the failures associated with individual and team PM in organizations. To date, most research on situations has focused on proximal factors that impinge directly on raters’ and ratees’ motivation and goals, with less attention given to variations in macro and meso context across and within organizations, nations, and cultures. In the present chapter, the current research linking context with PA and PM is reviewed. Drawing from both situational strength and institutional theories, the mechanisms (e.g., norms and constraints) by which situations can shape the design and process of PA/PM within and across organizations are discussed. The chapter concludes by translating key features from the context and situation assessment literature into action that can be taken by industrial and organizational psychologists to help improve PA/PM research and practice in organizations.


2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Solomon M. Semakula-Katende ◽  
Erik D. Schmikl ◽  
Theuns Gert Pelser

Orientation: Focus was on the role of reward and attitudes as major determinants in enhancing the effectiveness of performance appraisal systems. Research purpose: To develop a structural model from the qualitative and quantitative findings from which to address the identified gaps in order to improve the effectiveness of appraisals. Motivation for the study: The attention that role players tended to give to the rewarding of employees during the appraisal process made it appear as the only important determinant of an appraisal’s success. In appraisals in many public institutions, reward has been given unnecessary prominence over other drivers, such as management and development. That led most key role players (leaders, managers and employees) to perceive the current employee performance management and development system (EPMDS) to be purely for monetary (salary increments and cash bonuses) and non-monetary (promotion) purposes, which, in turn, compromised its effectiveness. Research design, approach and method: Structural equation modelling (SEM) was utilised as a statistical technique for testing and estimating causal relations using a combination of statistical data and qualitative causal assumptions. This allowed both confirmatory and exploratory modelling to be undertaken, which is suited to both theory testing and theory development. A triangulation of quantitative (questionnaire) and qualitative (interview) study was conducted. A total of 300 questionnaires were distributed to nine government hospitals in the Free State province, namely Mofumahadi Manapo Mopeli, Dihlabeng, and Boitumelo regional hospitals, as well as Elizabeth Ross, Thebe, Phekolong, Mpumelelo, Reitz and Ficksburg district hospitals. There was a high response rate of 96 per cent, a total of 287 completed questionnaires. Respondents ranged from top executives, middle management, line management, to employees of all categories. Main findings: Reward and attitudes were found to the unintended outcomes of an effective performance appraisal. Practical/managerial implications: Remunerative rewards should be part of a holistic appraisal approach and not simply a one-sided approach. Contribution/value-add: This article addressed the void or the wrong perception regarding the role of reward and attitudes in appraisals, and established that they were outcomes, and not determinants, of appraisal effectiveness.


2020 ◽  
Vol 4 (1) ◽  
pp. 26-41
Author(s):  
Andreas Petasis ◽  
Stylianos Christodoulou ◽  
Alexia Louca

Performance appraisals are important for effective evaluation and management of personnel. This research investigates the Electricity Authority of Cyprus’ employees’ perceptions of performance appraisal. Data were collected from 161 employees of the Organization, using an online semi-structured questionnaire, and analyzed using SPSS; the qualitative data were analyzed manually. The results of the study highlighted respondents’ perceptions with regard to the Organization’s performance management practices, which have a created a culture of mistrust towards the performance management system in use. The Organization’s present performance appraisal system seems to posit more shortcomings than strengths and it doesn’t seem to be integrated or linked with the organizational goals and missions of the Authority’s. The research has delivered some information on what needs to be changed in order to improve the current system. The findings have serious managerial implications for redesigning the performance appraisal system so as to be more effective, more credible and more transparent. These implications include actions towards introducing new methods, training the appraisers, increasing motivation and provision of resources for effective performance appraisal.


2017 ◽  
Vol 11 (1) ◽  
pp. 16-34
Author(s):  
Rianti Setyawasih ◽  
Haris Budiyono

This article explains on how effective performance management and employee engagement are likely to have an important and unique influence on high employee performance. The result shows that effective performance management has directly and indirectly influence on employee performance and directly influence employee engagement, it also was proved that employee engagement has directly influence on employee performance. Then, to produce some employee performance increments may be best achieved by integrating employee engagement to the performance management system at the organization. Employees who are engaged in their work and committed to their organizations give companies crucial competitive advantages, including higher productivity and lower employee turnover.  To this end, a new approach is introduced to the performance management process that includes employee engagement and the key drivers of employee engagement at each stage of performance management.


2002 ◽  
Vol 31 (2) ◽  
pp. 131-140 ◽  
Author(s):  
Doug Cederblom ◽  
Dan E. Pemerl

This article first outlines recent suggestions for improving agencies' performance appraisal systems: incorporating the developments of Total Quality Management (TQM) and core competencies into appraisals, and moving toward performance management. We then relate the experience of a state enforcement agency in applying these suggestions. What began as an objective of updating officers' performance appraisals to include recent agency developments, evolved into significantly overhauling this appraisal system; adding a new performance mechanism at the manager level; and using both of these processes to drive the agency's new strategic plan and promote “a different way of doing business.” This agency's experience seems applicable beyond enforcement agencies, and relevant both for those wanting to move performance in new directions, and for those wanting to energize ongoing performance. Suggestions are offered for moving toward effective performance management.


Author(s):  
Ridha Hanafi

[Id]Dalam era kompetisi bisnis yang semakin tinggi dan tuntutan customer yang semakin meningkat, organisasi semakin dituntut untuk mencapai kinerja yang optimal dalam usahanya mencapai tujuan organisasi. Pencapaian kinerja organisasi sangat ditentukan oleh bagaimana organisasi mengoptimalisasi potensi sumber daya yang dimilikinya. Sumber daya utama yang dimiliki oleh organisasi dalam pencapaian tujuan organisasi adalah Sumber Daya Manusia (SDM). Agar SDM yang dimiliki oleh perusahaan dapat dimanfaatkan secara optimal dan fokus pada pencapaian tujuan organisasi maka perlu dilakukan proses manajemen kinerja pegawai yang baik. Secara strategis, kinerja pegawai harus dapat diselaraskan dengan kinerja organisasi untuk pencapaian tujuan strategis organisasi. Untuk mengakomodasi hal ini maka konsep Balanced Score Card sangat potensial untuk diakomodasi dan diimplementasikan. Pada level operasional, pengelolaan kinerja pegawai yang meliputi proses perencanaan kinerja (performance planning), pelaksanaan dan monitoring (performance tracking) dan penilaian kinerja (performance appraisal) harus dapat dilaksanakan secara komprehensif dan aplikatif sehingga realisasinya benar-benar sesuai dengan apa yang diharapkan organisasi.Implementasi proses manajemen kinerja organisasi pada umumnya dan pegawai pada khususnya seperti yang dijelaskan tersebut, akan sangat sulit pelaksanaannya apabila masih dilakukan secara manual. Semakin kompleksnya parameter kinerja pegawai yang ingin dicapai, semakin besarnya jumlah pegawai, semakin dinamisnya perubahan bisnis dan semakin banyak kesibukan pekerjaan akan menyebabkan implementasi manajemen kinerja pegawai secara manual tidak efisien dan efektif untuk dilaksanakan karena proses bisnis yang kompleks, mekanisme pelaporan dan monitoring kinerja akan sangat memakan waktu dan sulit dilakukan. Implementasi sistem informasi manajemen kinerja pegawai merupakan suatu solusi yang potensial untuk diterapkan untuk menghadapi permasalahan tersebut. Apabila permasalahan tersebut dapat diatasi maka diharapkan pencapaian kinerja perusahaan dalam mencapai visi dan misinya dapat terealisasi. Berdasarkan hal tersebut, maka perlu dilakukan perancangan sistem aplikasi manajemen kinerja pegawai yang dapat memenuhi kebututuhan organisasi dan pegawai. Implementasi sistem ini diharapkan dapat mendukung berjalannya proses manajemen kinerja organisasi sehingga secara strategis tujuan organisasi dapat tercapai..[En]In an era of increasingly high business competition and customer demands, organizations are increasingly required to achieve optimal performance in an effort to achieve organizational goals. Achievement of organizational performance is largely determined by how the organization optimizes the potential of its resources. The main resource that the organization has in achieving its organizational goals is Human Resources (HR). In order for HR can be utilized optimally and focus on achieving organizational goals it is necessary to conduct an excellent employee performance management process. Strategically, employee performance must be aligned with organizational performance for the achievement of organizational strategic goals. To accommodate this concept, Balanced Score Card is very potential to be accommodated and implemented. At the operational level, employee performance management that includes performance planning process, performance monitoring and performance appraisal must be implemented comprehensively and applicable so that the realization is exactly what the organization expects.Implementation of the organization's performance management process in general and employees in particular as described, will be very difficult if it is still done manually. The more complex the performance parameters of employees to be achieved, the greater the number of employees, the more dynamic the business changes and the more busy work will lead to implementation of employee performance management manually inefficient and ineffective. This is because of complex business processes, reporting mechanisms and performance monitoring will be very time consuming and difficult to do. Implementation of employee performance management information system is a potential solution to be applied to face the problem. If the problem can be solved, it is expected that the achievement of the company's performance in achieving its vision and mission can be realized. Based on this, it is necessary to design an employee performance management application system that can meet the needs of the organization and employees. Implementation of this system is expected to support the running of organizational performance management process so that the strategic objectives of the organization can be achieved.


2015 ◽  
Vol 8 (1) ◽  
pp. 108-111 ◽  
Author(s):  
Robert L. Cardy

Dissatisfaction with performance management (PM) has had a long history. Managers and employees alike have frustrations with the system, and numerous calls for the elimination of performance appraisal have been made over the years (e.g., Scholtes, 1999). The dissatisfaction and calls for elimination have created pressure for change in the practice of PM, and I applaud the focus on feedback and coaching that Pulakos, Mueller Hanson, Arad, and Moye (2015) have proposed. Providing feedback and being actively involved in the PM process would seem to be a key part of the job of managers, yet many managers are uncomfortable addressing this central task. Focusing efforts in our field on improving the skills of managers and helping managers become effective coaches can play a key role in improving PM. The need for improvement in the informal process, however, does not mean that the formal process is not needed. Pulakos et al. have suggested streamlining the formal PM system as much as possible, with particular emphasis on the possibility of eliminating performance ratings. It is argued here that the formal PM system still serves important purposes. It is also argued that a balance between the informal and formal aspects of the PM system needs to be maintained. These two issues are addressed below.


2008 ◽  
Vol 1 (2) ◽  
pp. 197-205 ◽  
Author(s):  
Kevin R. Murphy

The comments and suggestions prompted by K. R. Murphy’s (2008) description of alternate models of the relationship between job performance and ratings of job performance reflect 3 broad themes: (a) the relationship between performance appraisal and performance measurement, (b) the best psychometric models for understanding performance ratings, and (c) the appropriateness of static measures for dynamic phenomena. This paper comments on these 3 themes and suggests directions for future research and practice in performance appraisal that focuses on rater goals, organizational interventions to improve the accuracy and value of ratings, and assessments of the value of performance ratings as criteria.


2016 ◽  
Vol 9 (2) ◽  
pp. 329-333 ◽  
Author(s):  
Jisoo Ock

As organizations become decentralized and work becomes team based, organizations are adopting performance management practices that integrate employees’ performance information from multiple perspectives (e.g., 360-degree performance ratings). Both arguments for and against the use of performance ratings presented in the focal article focused on rater agreement (or lack thereof) as evidence supporting the position that multisource ratings are a useful (or not a useful) approach to performance appraisal. In the argument for the use of multisource ratings, Adler, Campion, and Grubb (Adler et al., 2016) point out that multisource ratings are advantageous because they lead to increased interrater reliability in the ratings. Although Adler and colleagues were not explicit about why this would be true, proponents of multisource ratings often cite the measurement theory assumption that increasing the number of raters will yield more valid and reliable scores to the extent that there is any correlation in the ratings (Shrout & Fleiss, 1979). In the argument against the use of multisource performance ratings, Colquitt, Murphy, and Ollander-Krane argued that because multisource ratings pool together ratings from raters who are systematically different in terms of their roles and perspectives about the target employee's performance, the increased number of raters is not expected to resolve the low level of interrater agreement that is typically observed in performance ratings (Viswesvaran, Ones, & Schmidt, 1996).


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