Judgment Issues and Specific Applications in OrganizationsJudgment IssuesJudgment Issues (cont)Judgment Issues (cont)Judgment Issues (cont.)Training RatersPerformance Appraisal & the Fair-process EffectAttributes of a Fair Performance AppraisalAttributes of a Fair Performance Appraisal (continued)1Chapter 5Prentice Hall, 2001Judgment Issues and Judgment Issues and Specific Applications in Specific Applications in OrganizationsOrganizations•Employment interviews•Performance evaluationJudgment Issues Halo effectThe assessment of an individual on one dimension of performance “carries over” to other non-related dimensions and thus dominates the evaluation of the personPositive --- or “negative halo” (horn)Judgment Issues (cont) Recency effectOur evaluation of performance (positive or negative) at the end of the review period dominates the rating for the entire periodInformation is easier to retrieve from memorySimilarity error (clone)Giving better ratings to those who are like you in behavior and/or personalitySpillover effectsContinuing to downgrade an employee for performance errors in prior rating periodsJudgment Issues (cont)Implicit favoriteStart out with a favorite (job candidate, candidate for promotion, etc..)Options are evaluated using decision criteria biased toward the favoriteJob postings and criteria for the jobConfirmation biasTendency to seek confirmatory (supporting) information for what you think is true and neglect the search for disconfirming (unsupporting) information“This is an A or F student” and grading of essay examsJudgment Issues (cont.)Contrast effectAn “average” performer will be perceived more favorably if he or she is preceded by below average performers and less favorably if he or she is preceded by an above average performerClass presentationsAnnual performance reviewsJob interviewsTraining RatersRater judgment errorsIdentify and describe judgment errorsRecognition of halo errors found to be particularly effectiveRecognize that the longer the evaluation time period, the less accurate the ratingsPerformance dimensionsGroup discussions to identify and describe appropriate and desired dimensions of performanceUnless a behavior affects performance it should not influence ratingsPerformance Appraisal & the Fair-process EffectIndependent of the amount of the raise, employees who perceive that performance appraisals are conducted in a fair manner, report more satisfaction with pay and more satisfaction with the appraisal itselfAttributes of a Fair Performance AppraisalSpecific behavioral objectives (performance criteria) are identified and communicated in advanceSubordinates have an opportunity to provide input in terms of setting the performance objectivesHelps ensure that evaluation criteria are: appropriate, understood, and acceptedBehaviors - not traits- are evaluated“Reports are finished late” versus “you are lazy”Attributes of a Fair Performance Appraisal (continued)Appraisal is based upon accurate informationSupervisor diariesEmployee provides a review of activities, accomplishments achieved, and progress made during the periodAppraisals conducted more often (timeliness)Once a quarter as opposed to once a