Page 163 - Psychological Management of Individual Performance

146 performance appraisal
As part of the feedback dialogue, the necessary support from the superiors as well as
the called for measures of qualification in the work field are also discussed. That way,
the employee receives impulses for future performance development.

QUALITY ASSURANCE:SUPERVISION OF THE APPRAISER AND ADAPTATION
OF THE SCALES
Supervision of the appraiser

To ensure that performance appraisal takes place at a high quality level, the appraisal
process itself has to be monitored. This can be accomplished by evaluating the appraisals
and paying particular attention to possible rating errors because typical rating errors
can quickly lead to problems. If the overall performance of members of one group
is judged more positively than that of another group, the performance appraisal system
is questioned. Unfairness and a lack of differentiation will be claimed, although the
reason for this result could be found in individual rating errors.
In order to assess the validity of the evaluation, comparisons with other performance
indicators are helpful (e.g. specific results, project progress).
Evaluation of the system

A performance appraisal system has to be reviewed after the first year. The feedback of
the users has to be used for the improvement of the system. Fairness and transparency
of a performance appraisal system are heightened by giving the employees the chance
to voice their criticism against the system (Folger, Konovsky, & Cropanzano, 1992).
To be successful in the long run, a performance appraisal system has to be adapted
to the changing tasks and demands within a company. For this reason a performance
appraisal system has not only to be carefully implemented but also monitored on a
regular basis.

APPRAISAL METHODS

A performance appraisal has to meet some specific demands. These demands can be
based on the purpose of an appraisal system to ensure standardization in development of
employees or to define a salary increase or bonus. Thus an appraisal system should have:
well-defined criteria according to which the employee is assessed

a method of how the employee is assessed according to these criteria (e.g., a rating

scale)
a defined appraisal process.

WELL-DEFINED CRITERIA

Within an appraisal system, appraisal criteria can be described in detail. If standardiza-
tion of the appraisal process is important the description should ensure that everybody
understands the criteria in the same way. For this reason the criteria should be behaviour-
related.
For example, without further explanation the dimension “flexibility” can be inter-
preted as “flexibility to learn new tools” or “flexibility in working time” or maybe even