Handbook of Principles of Organizational Behavior - Soltanieh ...

CONDUCT PERFORMANCE APPRAISALS
Table 5.2 Example of a behavior observation scale for the job of a manager: the
performance dimension is problem solving
Performance dimension: problem solving
Almost Never 1 2 3 4 5 Almost Always
_____ Analyzes complex problems.
_____ Persists even when the solution is not clear or obvious.
_____ Develops new methods for solving problems.
_____ Implements innovative solutions.
_____ Takes responsibility for diffi culties in the group.
_____ Addresses diffi culties in the group.
_____ Seeks advice of team members and others when needed and appropriate.
providing feedback to individuals that they can understand because the feedback is about
observable job behaviors. Hence, individuals react favorably to these instruments (Tziner
and Kopelman, 2002 ). Given the prevalence of rater errors, the bias in observation,
recall, and the evaluation of performance, the importance of features like these cannot be
overemphasized.
One other approach that should be mentioned is the traditional results - based method
of rating individuals. The emphasis here is on whether the individual achieves the objective
output that is established at the onset of the rating period (e.g. total sales per month).
Although results - based measures are objective indicators of an employee ’s performance,
and are less susceptible to the rater biases noted above, they are not without their drawbacks.
Individuals may fail to meet the objectives as a result of factors beyond their control
(e.g. poor economy, organizational constraints). However, these constraints are not always
apparent to all stakeholders, nor are they agreed upon. It can be demotivating to receive
less favorable appraisals in these circumstances. This approach makes it difficult for a
manager to provide developmental feedback because it is not always clear why the objective
or target was not met and managers and employees may have different explanations.
Although some firms still use the results - based approach in performance appraisal, it is
often combined with a behavioral component. Lincoln Electric has one of the most talked
about piece rate systems where individuals are evaluated and paid on the basis of objective/
quantifiable output (Hastings, 1999 ). However, this system also includes a behavioral
component in which individuals are rated on the job dimensions of dependability, quality,
ideas, and cooperation in addition to output. A more recent example of a results - oriented
appraisal system can be found at Best Buy ’s corporate headquarters, where it implemented
a Results Oriented Work Environment in 2003 (Conlin, 2006 ). In this system, there are no
schedules and very few mandatory meetings. Individuals are free to work wherever they want,
whenever they want, as long as they achieve the results they agree to. Best Buy indicates that
productivity has increased and voluntary turnover has decreased (Conlin, 2006 ).
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