Conducting Employee Performance
and Development Evaluations
 

INTRODUCTION   

Sooner or later the question arises whether employees should be rated on the basis of their job performance.  Actually, supervisors and administrative officials are continually rating their subordinates.  No supervisor, for example, directs the work of subordinates without frequently making judgments as to their cooperation, the quality and quantity of their work, their dependability, and so forth.  Such judgments are information ratings.  When the question is viewed in this light, the problem is not whether to rate employees, but how shall employees be rated, and how should ratings/evaluations be used?

In recent years there has been a shift away from the traditional employee rating system -- which places emphasis on the use of such ratings for administrative actions -- to service ratings, which serve as a basis for counseling employees regarding the improvement of their performance on the job.  For example, many personnel authorities believe that disciplinary matters should be treated in terms of the specific causes rather than in terms of a general service rating program.  The “new look” in employee ratings emphasizes the use of performance evaluation as an opportunity for the supervisor to give the employee a better understanding of the job and what is expected of the employee.  The “new look” likewise provides an opportunity for the employee to give input into the scope and sequence of the tasks performed.

While this new type of performance review is simple in concept, it is still necessary to use a prescribed procedure not only to formalize the periodic review but also to provide a record of the employee’s performance review.


WHAT USES ARE MADE OF EVALUATIONS?

Employee evaluation requires one person to make an official judgment about another person.  Few supervisors like this role of judge and few employees like to be rated, yet over the years more and more objectives have been sought by performance ratings.  If ratings had accomplished all of these objectives most of the problems of personnel administration would have been solved!  Here is a list of the varied uses made of performance ratings:

1.  To keep employees informed of what is expected of them and how well they are performing.

2.   To recognize and reward good work.

3.   To help supervisors recognize and remedy weaknesses in employee performance.

4.   To identify employees who should be given specific types of training.

5.   To provide a continuing record of an employee’s performance history.

6.   To serve as a guide to promotions, layoffs, transfers, and other personnel actions.

7.   To help determine whether an employee will be given a pay increase, and in what amount deserved.

8.   To check on the reasonableness of established performance standards.

9.   To check on the accuracy of job descriptions and classification.

10. To check on the effectiveness of recruitment and examination procedures.

11. To assist the employee in assessing his/her job skills.

12. To provide an opportunity for employers to direct or assist in directing an employee’s career path.

All of these objectives are vitally important to both management and employees.  It might be expected therefore that performance rating plans would be generally accepted and approved.  This is far from the case.  No aspect of personnel administration has had a stormier history than that of performance ratings.  No rating plan has yet received complete acceptance, and most have suffered criticism and frequent modification.


 THE HUMAN FACTOR IN RATING PERFORMANCE

As supervisors play such a key role in rating, any organization that seeks to administer an employee evaluation program with some success must remember that supervisors are human.  They will therefore tend to react favorably toward some employees, unfavorably toward others.  The most common causes of rating errors are discussed below.

      1.   Halo Effect

Many times supervisors evaluate the employee in terms of a general mental attitude rather than by systematic attention to particular traits to be rated.  For example, if an employee puts out a large volume of work, a supervisor may also rate the accuracy of work, dependability, and cooperation higher than these traits actually deserve.  Conversely, the employer may downgrade another employee on all counts because the employee sometimes makes mistakes.  The basic question a supervisor must ask to minimize the halo effect is: “Am I rating this trait on performance or on my general perception of this employee as ‘good’ or ‘bad’?”

2.   Prejudice and Partiality 

It is unfortunately true that some supervisors will be influenced by matters like race, sex, religion, or nationality, and some may have a tendency to favor friends, or people with interests and activities similar to their own.  The basic question a supervisor must ask to minimize the possibility of prejudice or partiality is: “Am I making this judgment on the basis of real individual or on the grounds that the employee is a Protestant -- a black -- a man -- a fellow member of the Elks Club?

      3.   Leniency

Leniency occurs when the supervisor rates higher than the realities of employee performance warrant.  The effects are (1) to force ratings so drastically toward the top of the rating scale that they are valueless, and (2) to create unrealistic employee confidence when improvement performance is really needed and quite possible.  Leniency is by far the most common rating error.  There are a number of pressures on supervisors that tempt them to be lenient: the wish to avoid unpleasant scenes; the feeling that low ratings reflect poor supervision; the desire to retain the friendship of their employees; and often the belief that other supervisors do not rate fairly, and they do not want to penalize their own employees.

4.   Central Tendency

In any normal distribution, more people will of course be rated closer to the mean than to any other point on the scale.  A rating near the norm becomes a central tendency error only when it does not reflect a true evaluation of performance.  It is most likely to occur when the supervisor does not know a worker very well or when there is difficulty in collecting sufficient data or observations of the employee’s varied work activities.  One of the most frequent errors made by raters that blatantly reflects Central Tendency is to give an employee the same rating level of performance in each rating category -- a condition that is nearly impossible to achieve given basic human difference.

5.   Contrast Error

This type of rating error arises from the tendency of some supervisors to rate employees in terms of their own expectations and aspirations.  In other words, employees who satisfy the personal needs of the supervisor will generally be rated higher and vice versa.  Questions like: “Do I make this rating because I expect others to be like me?” can help to overcome contrast error.

       6.   Association Error

This kind of rating error is caused by several types of “associations.”  Some supervisors find it difficult to differentiate between traits because they overlap semantically for them.  For example, they may tend to equate dependability and cooperation and rate one trait higher or lower than is proper.  This error is similar to the halo type of error.  The positions of traits on a scale and the time at which the supervisor encounters them also constitute associations that may produce errors.  For example, it has been found that the ratings on traits adjacent to each other on a scale are apt to be more consistent than those some distance away on the form.  The association of error with fatigue is also common, and so the error that can occur because of the time at which the supervisor comes to the rating of a given individual.  For example, an employee may be rated higher if the supervisor has just rated John than if the supervisor had just rated Paul.

Proponents of employee evaluation cannot, and do not, deny that problems of error will plague any formal rating system.  They contend, however, that a great many decisions and actions in the course of human relationships depend on opinion.  Instead of lamenting this fact, attention should be given to finding a means of putting such opinion on a more systematic and factual basis.

One of the suggested methodologies for evaluating employees is to include components of both self-evaluation and supervisor evaluation as pieces of the process.  In addition to a written evaluation personal dialogue with the employee is an essential part of a constructive, meaningful assessment.

 Sample Employee Evaluation Forms

School Principal Professional Growth Plan and Evaluation Process