In spite of numerous attempts over decades to improve performance management (PM) systems, PM is viewed as more broken than ever, with managers and employ
The effects of faking on criterion-related validity and the quality of selection decisions are examined in the present study by combining the control of an experiment with the realism of an applicant setting. Participants completed an achievement motivation measure in either a control group or an incentive group and then completed a performance task. With respect to validity, greater prediction error was found in the incentive condition among those with scores at the high end of the predictor distribution. When selection ratios were small, those in the incentive condition were more likely to be selected and had lower mean performance than those in the control group. Implications for using personality assessments from select-in and select-out strategies are discussed.
This article reviews the history of performance management (PM), beginning with performance evaluation. We discuss various strategies that have been used to enable accurate ratings as well as cognitive processes and contextual factors that have been shown to significantly impact ratings. We raise questions about the concept of true performance and whether raters can be enabled and motivated to make accurate ratings. We progress to discussing more structured and comprehensive PM processes that typically involve cascading goals, goal setting, competency modeling, evaluation of behavior and results, and implementation. These systems have proven to be tedious and low-value, resulting in unprecedented, wide-spread experimentation with innovative practices to move companies away from heavy PM processes to simpler, cost-effective strategies that actually drive performance. These have ranged from abandoning ratings to implementing innovations in goal-setting, real-time feedback, coaching, and PM behavior change. Directions for future research and practice are discussed.
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