Measurement and assessment issues in performance appraisal.

Abstract

Performance appraisal is a topic that is of both theoretical interest and practical importance. As such, it is one of the most researched topics in industrial and organisational psychology. Several measurement issues are central to performance appraisal including: (a) how performance has been measured, (b) how to improve performance appraisal ratings, (c) what is meant by performance, and (d) how the quality of ratings has been defined. Each of these are discussed along with the shortcomings of the extant literature in helping to come to grips with these important issues. Next, some of the new challenges facing performance appraisal, given its historical focus on single individuals being evaluated, are highlighted. In particular, the appraisal problems inherent in the assessment of team performance and the complexities inherent in multisource feedback systems are covered. We conclude with a short discussion of the litigious issues that can arise as a result of poor performance management practises.Performance appraisal is a "general heading for a variety of activities through which organisations seek to assess employees and develop their competence, enhance performance and distribute rewards" (Fletcher, 2001, p. 474). Research into this topic has been a major focus of industrial and organisational psychology and management scholars for decades. The dependence of this research area on measurement accuracy is hard to overestimate. Most organisations have formal evaluation systems in place to assess employee performance, but for the majority of those involved, the following quote is apt: "Performance appraisal is a yearly rite of passage in organisations that triggers dread and apprehension in the most experienced, battle hardened manager" (Roberts & Pregitzer, 2007, p. 15). There are many reasons for this dread, and in this article we focus on some of the major measurement issues facing the performance appraisal literature as well as their practical implications.We start by discussing the historical emphasis on improving the measurement of performance through various format changes and training initiatives. Then we move into what performance appraisal actually means. What exactly do the performance scores represent and more important what should they represent? Then we delve into the psychometric issues of reliability, accuracy, and validity. In the next section of the article we move into some of the relatively newer problems facing performance appraisal researchers and practitioners. Specifically, the assessment of team performance and multisource feedback systems will be presented. We close by highlighting the notion that performance appraisal is not just an ivory tower topic-the outcomes of the process have real meaning and implications for people in their lives. As a result, some performance appraisal problems have made it into the realm of litigation, the results of which we also examine. We close with some thoughts about the future of performance appraisal research and practise. The Measurement of Work Perfo...

A Framework for Employee Appraisals Based on Inductive Logic Programming and Data Mining Methods

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A case for competencies: Assessing the value of trait-based performance appraisal for non-faculty university employees

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