Performance Appraisal

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Performance Appraisals

August 28, 2007

Table of Contents

Table of Contents……………………………………………….…………...pg 02

Abstract………………………………………………………….…………..pg 03

Introduction…………………………………………………….……………pg 03

Real Methodology…………………………………………….……………..pg 06

Ideal Methodology…………………………………………….…………….pg 08

Results……………………………………………………………………….pg 10

Conclusions………………………………………………………………….pg 16

Recommendations…………………………………………………………...pg 17

References…………………………………………………………………...pg 19

Appendix A………………………………………………………………….pg 22

Abstract

Performance appraisals can be executed in variety of manners; however, we decided to examine what type of performance appraisal system appeared most fair and accurate to those being evaluated. Our hypothesis centered on the assumption that a multi-rater performance appraisal is perceived by employees to be a more accurate and fair assessment of performance than appraisal methods conducted by one evaluator. In addition, we believe that after a certain optimal level of evaluators performance appraisals become less accurate, less fair, cumbersome, and inefficient. We used a non-probability convenience sampling technique and handed out paper questionnaires to group member’s co-workers, friends, relatives, CSUEB’s graduate students, train commuters, and several banking customers. Before handing out the questionnaire we prescreen the respondents to ensure that they were currently working and have received a formal performance appraisal sometime in their career. The major findings our research indicates is that employees felt their review was more accurate and fair if multiple sources were used in the evaluation and that most respondents believed the optimal level of evaluators was three. It was also surprising to note that positive appraisals appear to be more motivating for increased productivity than negative ones. Due to our small study it would also be interesting in the future to examine the differences in views of appraisal systems based on cultural variances, gender variances, variances based on years of experience, and variance based on position within the organization.

Introduction

In order to effectively monitor performance, organizations must assess employee execution and compare it to previously agreed-upon expectations with regard to personal, departmental, and organizational goals. At the same time the organization must strive to incorporate a method for evaluating performance that is devoid of obtrusiveness, which lowers morale and may contribute to factors leading to employee turnover. The performance appraisal has become an integral part in the management of the organization’s human resources. These systems play a role in promotion, demotion, transfer pay, and employee development (Daley, 1992). Without such systems in place, there is fear of the creation of undesirable work habits forming, and worse the lack of feedback might be interpreted as approval of these work habits and performance (Boice, 1997). The consensus of most existing research on appraisal systems is that to be effective, the appraisal process must be considered fair and accurate by those having their performance evaluated.

Fairness and