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.     

The stigma of obesity and discrimination in performance appraisal: a theoretical model

We propose a theoretical model to study the effect of obesity stigma on performance appraisal. The model draws from the appraisal, obesity, stigmatization, and prejudice literatures to examine three sets of factors: individual factors in the appraiser(s) and the obese appraisee; factors in performance appraisal; and contextual factors. According to the model, these factors make it easier or harder for obesity stigma to affect the performance appraisal of obese employees, potentially biasing the process and resulting in discrimination. While examining the interplay of forces that facilitate or inhibit the expression of obesity stigma in the affective, cognitive, and behavioral responses of appraisers, we introduce the concept of ‘aversive weightism’. This concept enhances understanding of the tensions between the ethos of objectivity in performance appraisal and the deeply rooted, often unconscious influences of societal prejudice and stigma against obesity. We conclude with implications for research and practice.     

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.     

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.     

The relationship between new venture entry mode and firm performance

Grounded in the knowledge-based view of the firm, this paper compares the performance outcomes from different modes of new venture entry. Data from new hotels entering the United Kingdom between 2006–2010 was used to explore how entry mode (i.e., franchised or independent) impacts post-entry firm performance. Controlling for market demand and market segments, this study found that affiliation with a franchise made it easier for new owners to ramp up revenues in the first six months if the service had a high level of operational complexity (e.g., full-service hotels). After this initial benefit period no significant performance benefit accrued to branded full-service hotels. In contrast, hotels that offered less complex services obtained higher levels of performance when relying on independent status vs. brand affiliation between six and twenty-four months after entry. Implications of the results are offered in the context of determining the value of explicit versus tacit knowledge obtained from external sources versus going it alone as an entrepreneur.     

The relationship between trust,HRM practices and firm performance

Numerous researchers have begun to examine organizational trust and its influence on the workforce. However, little empirical research has focused on the conditions that engender organizational trust – those that make managers more willing to accept the vulnerability inherent in certain managerial actions that are part of human resource management. This study evaluates the trust mechanism and the way HRM practices mediate its impact on improving organizational performance. One hundred and four HR managers from the leading companies in the Israeli industrial, service and trade sectors, based on sales and operating revenue, completed questionnaires. Overall, we found that HR managers are more likely to offer training and shape the internal promotion system when trust is high. In addition, we found that firms exhibited higher organizational performance when trust is high. The paper also presents some of the model's implications.     

The relationship between the level and variability of inflation: Theory and evidence

This paper emphasizes the role played by asymmetric stabilization policies in producing the widely reported positive association between the level and variability of inflation. A simple theoretical model is constructed which shows how asymmetric policies give rise to this association. The empirical findings presented provide support to the proposition that variations in inflation uncertainty are policy-induced.     

The relationship between human resource management practices,business strategy and firm performance: evidence from steel industry in Taiwan

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.     

The relationship between budget deficits and capital inflows: Further econometric evidence

This research note examines the impact of federal deficits on U.S. capital inflows. Expanding on the previous work of Bahmani-Oskooee and Payesteh (1994), we employ the relatively new maximum likelihood procedure developed byJohansen (1988) andjohansen andJuselius (1990) to do cointegration tests. The results find a long run relationship between budget deficits and capital inflows. In addition, findings from error-correlation modeling reveal that short-run disequilibria in financial markets are corrected very rapidly, suggesting that these markets are efficient.     

The relationship between bank performance and intellectual capital in East Asia

In this paper, we develop a performance efficiency value by using data envelopment analysis (DEA) to integrate five perspectives of CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity), which is used by the Federal Deposit Insurance Corporation to evaluate banking performance. In addition, we utilize a tiered DEA to categorize banks into four groups. One-way ANOVA is used to analyze differences in CAMEL and intellectual capital (IC) variables across the four groups. CAMEL variables are manifested more strongly in highly efficient groups when compared with inefficient groups. The findings also reveal the importance of IC in achieving high levels of bank efficiency.     

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.     

Cognitive processing models in performance appraisal: evidence from the Malaysian education system

The effectiveness of the decision‐making process in appraisal has been of long‐standing interest. This paper reports the results of research exploring the extent to which those undertaking appraisals apply systematic processes to their decision‐making, represented in terms of the cognitive processing models applied by appraisers. Results of 22 cognitive mapping interviews exploring appraisal practice, undertaken with appraisers in the Malaysian education system, are described. The resultant cognitive maps have been explored for what they tell us about the cognitive processing models underlying appraisers' decision‐making. Results suggest that the practice of appraisal evidenced in interviews demonstrates the presence of cognitive processing that reflects theoretical cognitive processing models, although some differences are observed between less experienced and experienced appraisers' models. Implications from the interview findings for the practice of appraisal are identified.     

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 relationship between HRM avenues of political influence and perceived organizational performance

This article explores the relationship between the human resource management function's access to avenues of political influence and perceived organizational performance. We examine responses from 441 Australian senior HRM managers who participated in an online survey of a national HRM professional association. Drawing from political influence theory, we develop a model and related hypotheses to investigate the impact of opportunities for the HRM function to manage and control the shared meaning of HRM on perceived organizational performance. Although there was no evidence of a moderating effect of avenues of HRM political influence, CEO support and organizational support for HRM predicted perceived organizational performance. HRM representation on the board of directors appears to serve a symbolic function only. Theoretical and practical implications are discussed in response to the identified importance of CEO and organizational support. © 2007 Wiley Periodicals, Inc.     

The relationship between quality management and new product development: evidence from China

Research suggests that organizations involved in new product development (NPD) can adopt quality management (QM) systems to optimize their NPD processes and thereby build their NPD competence. This paper contributes to a further understanding of the link between QM and NPD by investigating why and how more effective QM can promote and assist NPD. Based on taxonomy of QM practices, we examine the differences between the effects of infrastructure quality management practices (IQMP) and core quality management practices (CQMP) on a firm’s NPD capability and NPD performance. We also incorporate NPD practices in a conceptual model, to examine the integration effects of QM practices and NPD practices. The results show that IQMP significantly promotes NPD capability, while the influence of CQMP on NPD capability is relatively insignificant. Furthermore, our results indicate that the integration of design and manufacturing has a significant negative influence on NPD capability. Our findings highlight the significant role NPD capability plays in explaining the link between QM practices and NPD performance. Our findings also suggest to practitioners that they should integrate QM with other technology management practices in order to optimize their NPD processes.     

The relationship between resources,entrepreneurial orientation and performance in farm-based ventures

The purpose of this paper is to investigate how firm-specific resources and entrepreneurial orientation (EO) of the firm may influence performance in small farm-based ventures. It builds upon theoretical strands from the resource-based and entrepreneurship perspectives. Research within these fields indicates that these relationships might be dependent on the context within which the firm operates. Hypotheses are developed to test the possible effect of entrepreneurial efforts and resources (financial position, farm size, location, network and unique competence) on short- and long-term performance. Data gathered in 2003 and 2006 from farms engaged in innovative ventures were used to test the hypotheses. The results show that financial capacity, unique competence and entrepreneurial efforts influence performance in the investigated firms. This suggests that firms do get paid back in the long run for engaging in entrepreneurial efforts. Thus, entrepreneurial activities and attitudes represent an important factor enabling firms to create, reconsider and apply their resources in more efficient ways.     

The U-shaped relationship between happiness and age: evidence using world values survey data

The paper retests the U-shaped relationship between happiness and age using the cross-classified multilevel regression procedure and the World Values Survey data. The analysis accounts for period and cohort effects. The results reconfirm the pattern that happiness is U-shaped in the life course. That is, happiness decreases from a high-point in young adulthood, reaches a low-point in midlife, and thereafter increases to arrive at another high-point in old age. The results show that the high-point of happiness in old age is lower than the high-point of happiness in young adulthood. That happiness does not return to its initial high-point after it drops to a low-point in midlife is perhaps another stylized fact in the relationship between happiness and age.     

经济效益审计在市场营销绩效评价中的应用

本文从理论和实务等多个角度探讨了把经济效益审计的思想、方法和程序等应用到市场营销绩效评价活动的可能性,认为经济效益审计是市场营销绩效评价的一种有效方法,在市场营销绩效评价中具有较大的应用价值.