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Performance Appraisal Reasons for appraising employees 1) For administrative decisions: so we can determine promotions/demotions, assign raises, fire someone. 2) To give employee development and feedback: so they can correct what they do wrong and continue to do the things they do well. 3) research reasons: to develop criteria, to validate predictor. Ultimate vs. actual criterion - Ultimate/theoretical criterion: refers to your standard, your expectations of what good performance is considered. It¡¦s the construct that you are trying to measure. It¡¦s the definition of WHAT good performance is rather than how it is measured. - Actual criterion: operationalization of your theoretical/ultimate criterion. Exactly what physical measure you are trying to use to measure your theoretical/ultimate criterion. The measure of theoretical/ultimate criterion. Criterion relevance: what you are interested in and can capture. The extent to which actual criterion assesses theoretical/ultimate criterion it is designed to measure, or its construct validity. Closer the correspondence between actual criterion and theoretical criterion, greater the relevance of actual criterion. Relevance concerns the inferences and interpretations made about the meaning of the measurements of performance. Criterion deficiency: information you are interested in but can¡¦t capture with actual criterion measure. The missing info you want to know. To the extent that you have an unreliable measure, you are capturing irrelevant info and you capture what you don¡¦t need to capture if your measure is unreliable or not valid. Actual criterion does not adequately cover the entire theoretical criterion. Actual criterion is an incomplete representation of what we are trying to assess. [ex. Students test scores in math could be used as an actual performance criterion for elementary school teachers. But it would be a deficient criterion because elementary school teachers teach more than just math. A less deficient criterion = student scores on a comprehensive achievement test battery, including math, reading, science, and writing.]. Criterion contamination: Information you capture but aren¡¦t interested in (erroneous, irrelevant, etc). Part of the actual criterion that reflects something other than what it was designed to measure. Can arise from biases in the criterion and from unreliability. „X Biases: people have cognitive limitations (forget things). „X Unreliability: to the extent that your measure is not capturing what you are looking fro (irrelevant/ unreliable info), you will have a contamination problem. Problems with actual criteria Criterion Complexity - Most jobs are multidimensional (due to that, you¡¦ve to identify those dimensions and to assess them on all those dimensions) „³ attendance, motivation, quality, quantity. - Need to assess all dimensions (two possible approaches). Let¡¦s say my job is 10 dimensional, do I keep those things separate or combine them into a single score. o Composite criterion approach: to make meaningful interpretations, you aggregate them somehow (combine¡Xavg. or add them up, etc) o Multidimensional approach: keep them separate which is best?
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