MGS 3030 Study Guide - Final Guide: Pain Scale, Social Loafing, Job Evaluation
22 May 2018
School
Department
Course
Professor
Performance Evaluation
Measurable dimensions for performance evaluation
• 3 step appraisal process
o Setting work standards
o Assessing employees’ actual performance relative to those standards
o Providing feedback to the employees with the aim of helping them to eliminate
performance deficiencies or to continue performing above par
Examples of trait, behavior, outcome-based measures
• Goals
o SMART goals: specific, measurable, attainable, relevant and timely
• Job dimensions/traits
o Communication; teamwork
▪ Good teamwork is a useful standard for ‘what should be’
• Behaviors/competencies
o Mastery of competencies (skills knowledge, personal behaviors) required to
perform
Peer evaluation – when is it most appropriate?
• Come across different to peers than your bosses
• Military, facebook, google
• Changes in behavior positively, open communication, motivation, social loafing, group
viability, cohesion, satisfaction
Assumption of using immediate supervisor as an evaluator
• Consists of immediate supervisor & 3-4 other supervisors
o Helps cancel out bias
o Provides different viewpoints of performance
Example of Self-evaluation (appraisal)
• In conjunction with supervisor ratings
• Employees tend to rate themselves higher than supervisors rate them
Multisource, 360 feedback system
• Employer collects info from all around
o Supervisors, subordinates, peers, internal/external customers
• Developmental purposes, not pay
Performance evaluation methods – graphic rating, weighted checklist, BARS, critical incident
MBO (Management by objective) system
• Graphic rating Scale Method
o Simplest and most popular method for appraisal
o Lists traits, supervisor must rate employee by circling 1-5
• BARS (behaviorally Anchored Rating Scale)
o Appraisal tool that anchor a numerical rating scale with specific illustrative
example of good or poor performance
o Write critical incidents
o Develop performance dimensions
o Reallocate incidents
o Scale the incidents
o Develop a final instrument
find more resources at oneclass.com
find more resources at oneclass.com
• Management by objectives (MBO)
o Requires manager to set specific measurable org relevant goals with each
employee, then periodically discuss progress toward goals
o Set the organizations goals
o Set departmental goals
o Discuss departmental goals
o Define expected results (set individual goals)
o Conduct performance reviews
o Provide feedback
▪ Use has diminished because time consuming
• Errors in evaluation
o Recency effects: telling what he employee has done recently blind you to what
their performance has been over the year. The main situation is to accumulate
critical incidents all year long
o Contrast error:
Compensation
Definitions of base pay, salaries, wages
• Base pay: includes wages and salaries. Includes person’s fixed salary as well as
guaranteed bonuses such as 10% of pay at the end of the 4th quarter regardless if
company makes profit
• Salary: consistent payments made each period regardless of the number of hours worked
in the period
• Payments calculated on the amount of time worked
Two basic compensation philosophies
• Entitlement
o Seniority based
o Across the board raises
o Guaranteed measurement of scales
o Industry comparisons only
o “Santa Claus” bonus
• Performance:
o No raises for length of service
o No raises for longer service, poor performers
o Market-adjusted pay structures
o Broader industry comparison
o Bonuses tied to performance results
Equity-internal/external equity
• Equity: the perceived fairness between what a person does (inputs) & what the person
receives (outcomes)
• External equity: the perception that the organization provides employees with
compensation comparable to the compensation of employees with similar jobs in other
organizations
• Internal equity: perceived fairness of pay differentials among different jobs within an
organization
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Peer evaluation when is it most appropriate: come across different to peers than your bosses, military, facebook, google, changes in behavior positively, open communication, motivation, social loafing, group viability, cohesion, satisfaction. Assumption of using immediate supervisor as an evaluator: consists of immediate supervisor & 3-4 other supervisors, helps cancel out bias, provides different viewpoints of performance. In conjunction with supervisor ratings: employees tend to rate themselves higher than supervisors rate them. Multisource, 360 feedback system: employer collects info from all around, supervisors, subordinates, peers, internal/external customers, developmental purposes, not pay. Performance evaluation methods graphic rating, weighted checklist, bars, critical incident. The main situation is to accumulate critical incidents all year long: contrast error: Definitions of base pay, salaries, wages: base pay: includes wages and salaries. Job evaluation methods point rating method: most widely used, select compensable factors to use in rating jobs, assign weights to compensable factors, establish degree of each factor present in a job, get the total points.
