The performance of performance appraisal systems: understanding the linkage between appraisal structure and appraisal discrimination complaints

Abstract

Employee perceptions of the fairness of performance evaluations are critical to the success of any appraisal system. Research on performance management includes extensive studies on how bias emerges in the appraisal process. Despite this, there is no empirical evidence linking formal discrimination complaint filings – a key measure of bias - and performance appraisals. To close this gap, we conduct an empirical analysis using information on appraisal systems and discrimination complaints from the US federal government. Our findings suggest that agencies with better-designed appraisal systems will experience higher appraisal-related discrimination complaints, contrary to expectations. In particular, an expansion of training and voice opportunities are associated with an increase in appraisal discrimination complaints, while increased differentiation between performers is not consistently associated with complaints. For managers struggling with performance management, it may be better to spend time on improving performance-focused interpersonal communication rather than redesigning appraisal systems.     

传统绩效考评方法及其创新

文章系统地对传统的绩效考评方法作了描述、评价,并依据中国传统文化中的整体思维提出了一种综合的思维方式运用于绩效考核方法中。     

The influence of independent self-construal on rater self-efficacy in performance appraisal

This paper extends current knowledge on the use of performance evaluations in organizations by investigating the influence of self-construal on rater self-efficacy. Results from a survey completed by 105 experienced managers indicate that independent self-construal is related to various dimensions of rater self-efficacy. Moreover, experience with appraisals was found to moderate these relationships. The implications of these findings for the research and the practice of performance appraisal are discussed.     

An integrated fuzzy multi-attribute decision-making model for employees' performance appraisal

Evaluating and ranking the employees working in organisations are challenging tasks involving several factors. Each employee achieves certain skill levels in various factors and the resulting information can be overwhelming. This article demonstrates how an integrated tool like fuzzy multi-attribute decision making (FMADM), with fuzzy analytic hierarchy process (FAHP), fuzzy quality function deployment (FQFD), is applied as a fair evaluating and sorting tool to support the performance appraisal (PA) system. The fuzzy linguistic approach has the advantage of reducing distortion and losing of information. FMADM focuses on the best practices of employees for the purpose of improving overall performance. Unlike traditional PAs, FMADM searches for the highly skilled employees who will serve as peers. The FMADM process identifies employees who require improvements in certain factor(s), and the magnitude of improvements required. This study supports the ideas that rating formats need re-examination as an alternative to traditional rating methods. Earlier adopted methods have seldom identified and quantified the individual factors for improvement, whereas FMADM could overcome these shortfalls. Based on the results of FMADM, the improvement of employees' performance is possible by way of providing training, talent enhancement and further qualification wherever required.     

International performance appraisal practices and approaches of South Korean MNEs in China

International performance appraisal of multinational enterprises (MNEs) in foreign subsidiaries has received inadequate research attention. The current study investigates the international performance appraisal practices, including procedures and methods, criteria and feedback, of South Korean MNEs in China and the extent to which these practices are localized or/and ethnocentric. Results of analyzing the in-depth interviews with local and expatriate managers show South Korean MNEs tend to adopt an ethnocentric approach to managing performance appraisals for expatriates and an integrative approach for host country-nationals by transferring their home appraisal practices to their Chinese subsidiaries. These approaches can be attributed to relative strength effects, i.e. the relative economic strengths and contextual differences between China and South Korea. This study adds to the knowledge base of how MNEs manage performance appraisals in their foreign subsidiaries.     

Using explanations to manage impressions of performance appraisal fairness

Based on the post hoc sorting of the narrative comments given by supervisors of their subordinates' performance, four major substantive categories of performance explanations emerged. Explanations focusing on the meritorious aspects of performance were typically used to explain high ratings, and apologies typically accompanied the administration of low ratings. Average ratings typically received no explanation. Perceived as fairest were ratings that enhanced the subordinate's self-image. The present results demonstrate the importance of explanations in enhancing perceptions of fairness.     

The problem of employees' network centrality and supervisors' error in performance appraisal: A multilevel theory

This article reveals an unexplored paradox for HR managers: the centrality of an employee in the social network benefits performance but hampers performance appraisal because it affects supervisors' rating errors. Central employees can be erroneously rated high on performance even when they are not high performers because supervisors tend to overappraise their performance. A distinction is made between rating precision, which depends on supervisors' uncertainty regarding employees' performance, and rating accuracy, which depends on supervisors' bias in favor of employees. Employee centrality is posited to be beneficial to precision but deleterious to accuracy because it regulates the diffusion of positive information, status, and power, all of which distort supervisors' capacity and motivation to accurately appraise performance. It is then argued that rating errors caused by network centrality affect aggregate perceptions of justice in organizations. When employees are highly connected to each other in a dense network, organizations have a strong and positive justice climate. Yet when some employees are more central than others in a centralized network, organizations have a negative and weak justice climate. The article contributes to the literature because it identifies an unexplored dark side of network centrality and offers recommendations for HR managers to cope with its deleterious consequences and for scholars to study them.     

Performance appraisal politics from appraisee perspective: a study of antecedents in the Indian context

Appraisee's perception of appraisal politics (APAP) is conceptualized to be formed by three perceptual dimensions. First is appraiser's manipulation of ratings to achieve their self-serving ends such as own reputation, maintaining good relationships, building in-groups, and handling dependency threats from appraisees. Second dimension constitutes fellow appraisees' upward influence behaviors to get higher ratings and rewards. Third dimension relates to the outcome of appraisal, i.e. pay and promotion decisions that can be discriminatory when performance is ignored. Such actions are detrimental for good performers and performance culture. Drawing from the organizational justice theories, it is proposed that APAP can be mitigated by those appraisal-related structural (e.g. criteria), process (e.g. voice) and contextual antecedents (e.g. relation with appraiser) that enhance appraisee's perceived control, understanding, and prediction of appraisal decision and process. These hypotheses were tested in the Indian family-owned organizations. The data were collected using survey questionnaire method from six organizations. Multivariate and structural equation modeling (SEM) analyses revealed that overall APAP had significant negative correlation with downward communication, and appraiser–appraisee relations. Importantly, these are appraiser-centric or appraiser-driven variables, thus implying appraiser's criticality in influencing perceptions. Post hoc SEM analysis revealed that communication processes (such as feedback) mediated effect of structural variables (such as criteria relevance), implying criticality of procedures over structural variables. The significance of communication processes implemented by appraiser implies that understanding cultural context is important when studying perceptual reactions such as APAP. Interestingly, post hoc analysis revealed that downward communication mediated the effect of voice on APAP, a result that may be idiosyncratic to the Indian cultural context. Specifically, higher appraiser–appraisee power distance in the Indian context may influence the perceived relevance and utility of processes such as voice (e.g. appeal), which may put appraisee in a slightly adversarial situation with appraiser. Further, higher paternalistic orientation may make processes like downward communication more desired by appraisee because these processes project superior as a guide and a coach, who is keen to handhold and support their subordinates. The implications of these results for practitioners are discussed.     

Quality of appraisal practices in Indian PSUs: a case study

The main aim of the study is to assess the level of expectation and experience regarding the consideration of the skills relating to internal marketing in performance appraisal report while evaluating performance of human resources in Indian Oil Corporation Limited (IOCL) (AOD; Assam Oil Division), Digboi. This study also attempts to assess the level of expectation and experience regarding ideal ‘post-performance-appraisal-scenario’ in IOCL (AOD), Digboi. Furthermore, the study ventures to assess the level of overall satisfaction with performance appraisal system of the company as perceived by the employees, i.e. the internal customers. The study has looked into performance appraisal as a tool of human resource management through the lenses of internal marketing skills in the context of Central Public Sector Undertakings, which have very narrow base of internal Customers. This new approach has the potential to orient the Public Sector Undertakings to the market-driven economy.     

The effect of procedural justice in the relationship between charismatic leadership and feedback reactions in performance appraisal

In this study, the relationship between procedural justice, charismatic leadership and feedback reactions (i.e. perceived feedback utility and feedback accuracy) is investigated. We conducted both regression analyses and path analyses (n = 299) to establish whether there is a moderating or mediating effect of charismatic leadership in the relationship between procedural justice and feedback reactions of teachers. Our results indicate there is a mediating effect of charismatic leadership. This demonstrates that besides the appraisal system, charismatic leadership is important for feedback reactions. Hence, supervisors should take into account that they have an important function to fulfill when conducting performance appraisals and not see performance appraisal as just another perfunctory system in human resource management.     

分层滚动绩效考核：博弈机制、实施效果与对策分析

分层滚动绩效考核是定性与定量考核相结合的考核方法，在实践中有一定成效，但潜在问题也是相当严重的：软化了可量化的硬性指标；加大了部门之间的不平衡；过分强化了考核者权利。考核过程本质上是一个博弈，员工和管理者都想获得效用最大化。为解决这些问题，必须探索高效的实施策略：首先要用科学的考核模型来确定考核内容、考核权重等重要因素；其次要对员工实行断面切入激励模式。     

The anatomy of performance appraisals in Germany

We investigate the use of performance appraisal (PA) in German firms. First, we derive hypotheses on individual and job-based determinants of PA usage. Based on a representative German data set on individual employees, we test these hypotheses and also explore the impact of PA on performance pay and further career prospects. The results include that PA is positively linked to an individual's willingness to take risks. The performance of older employees and woman is evaluated less often. Furthermore, larger firms evaluate the performance of their employees more. We find evidence for a non-monotonic relation between the hierarchical level and usage of performance appraisal: The performance of employees with very high or very low responsibilities is assessed less often.     

SMART原则在高职院校科研绩效考核内容设置中的应用

科研绩效考核既是高职院校科研管理工作的组成部分,也是贯穿科研管理全过程的重要支柱。目前高职院校的科研绩效管理普遍存在考核内容单一、缺少导向性、重量不重质等问题,未能充分体现科研绩效管理应有的作用与价值。为此,本文参照绩效管理中的SMART原则,对高职院校的科研绩效考核内容进行系统设置。     

Exploring the factors associated with employees' perceived appraisal accuracy: a study of Chinese state-owned enterprises

Western employment practices have increasingly been used in emerging markets, but little is known about the factors influencing non-Western employees' views regarding Western employment practices. This paper presents a study that investigates the factors associated with Chinese employees' perceived appraisal accuracy. Based on the extant literature, the study tests six aspects of a performance appraisal (PA) system: employees' perceptions of distributive justice, procedural justice, interactional justice, administrative purpose, developmental purpose and the use of multiple raters. A mixed methods approach was used to collect the data; quantitative data collected from a survey were used to test the hypothesized relationships and qualitative data collected from interviews were used to help explain the underlying logic behind the relationships. The results of the hypotheses testing show that employees' perceived accuracy of PA is positively associated with the three types of justice and the two purposes of PA. The findings from the interviews indicate that employees' perceptions of appraisal accuracy are influenced by certain Chinese cultural characteristics and management traditions. The implications of the findings for research and practice are discussed.     

绩效管理中的矛盾冲突与解决对策

文章对绩效管理中的各种矛盾与冲突进行了分析、归纳,并从多个层面对矛盾冲突的产生原因进行了深层次的剖析,提出了解决矛盾冲突的方法与对策,对企业绩效管理实施效果的改进有一定的借鉴意义。     

The social context of performance appraisal and appraisal reactions: A meta‐analysis

This study reviews and meta‐analyzes the literature on the social context of performance appraisal. Results indicate that aspects of rater‐ratee relationship quality (i.e., supervisor satisfaction, supervisor support, supervisor trust) are strongly related to ratee reactions to performance appraisals. Rater‐ratee relationship quality is more strongly related to appraisal reactions than appraisal participation or performance ratings. Integrating social exchange theory with procedural justice theory, this article tested whether or not the relationship quality–appraisal reactions relationship was due to relationships between relationship quality and instrumental resources for the ratee (i.e., appraisal participation and rating favorability). When controlling for relationships between these resources and appraisal reactions, a direct path between relationship quality and reactions was significant, supporting a relational model of the exchange between appraisal partners. The relationship quality–appraisal reaction relationship was not moderated by performance rating favorability or appraisal participation. In total, these results highlight the importance of relationship quality to employee reactions to performance appraisal—and the importance of ratee reactions as an important resource in the social exchange between appraisal partners. Implications for theory, practice, and future research are discussed. © 2012 Wiley Periodicals, Inc.     

The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment

This study investigates the relationships among administrative performance appraisal (PA) practices, perception of organizational justice and organizational commitment. The results obtained from 395 employees who work in manufacturing companies in Taiwan show that the implementation of administrative PA activities is highly associated with employee perception of organizational justice and that the level of perceived organizational justice is highly associated with the level of organizational commitment. The results also demonstrate that perceived organizational justice has a partial mediating effect on the relationship between administrative PA practices and organizational commitment. Theoretical and practical implications of these results are discussed.     

Understanding applicant behavior in employment interviews: A theoretical model of interviewee performance

The purpose of this article is to present a theoretical model of interviewee performance in selection interviews. Our model positions the construct of interviewee performance as a central mediating variable between candidate attributes and interviewer ratings. The model includes six sets of factors that may influence interviewee performance, interviewer ratings, or both (e.g., interviewer–interviewee dynamics). This model promotes a fundamental shift in the way we think about employment interviews, from a focus on interviewer ratings to a focus on interviewee performance. Factors like culture and interview specific self-efficacy, while receiving little attention in current literature, take on greater significance when viewed through the lens of interviewee performance. A number of avenues for future research are developed and presented, which we hope will encourage future research in this area.     

Contextualizing performance appraisal practices in Chinese public sector organizations: the importance of context and areas for future study

Abstract

Public sector organizations (PSOs) continue to undergo pressures for change due to economic globalization and the changing role of the state, resulting in increased focus on performance management, particularly employee performance appraisal. New public management’s emphasis on transparency, accountability, efficiency and performance highlights the multiple and often conflicting roles and performance outcomes of PSOs, the social and economic contexts in which PSOs operate, and the multiple ways they measure and manage performance. Responding to this special issue and calls for a richer understanding of performance management in PSOs we examine the impact of context on performance appraisal in Chinese PSOs. As China continues its transitions to a market-driven economy, Chinese PSOs have engaged in managerial reforms to improve governance, efficiency and productivity, including the strategic implementation of western-based HRM practices to manage employee performance. Our analysis demonstrates the challenges context poses for analysing HRM practices in Chinese PSOs.     

Feedback frequency and appraisal reactions: a meta-analytic test of moderators

Abstract

Performance appraisals provide employees with feedback that helps them improve subsequent performance, with acceptance of feedback as a key precondition to improve performance. In this study, we use the due process model of performance feedback to better understand predictors of favorable employee reactions to performance appraisal. The due process model views knowledge of performance standards and frequent feedback as aspects of adequate notice in performance appraisal, and as key predictors of favorable appraisal reactions. Empirical findings to date, however, have been inconsistent on this issue. Feedback frequency has not been consistently related to appraisal reactions in primary studies, suggesting the potential for moderator effects. We therefore meta-analyzed the relationships between knowledge of performance standards and feedback frequency with appraisal reactions through the due process lens with performance rating favorability and knowledge of performance standards as moderators. Our findings suggest prior inconsistent results could be partly explained by the moderating effects of performance rating favorability and knowledge of performance standards on the relationship between feedback frequency and appraisal reactions. We discuss the implications of our results for theory, research and practice.