Open Conference Systems, ICQQMEAS2015

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Employees Appraisal: A field research of variable and constant errors on performance rating
John Bouris

Last modified: 2015-09-24


The purpose of this study was to explore, in a public interest Financial Institution, the relationships among several possible sources of errors and bias as they are investigated in the performance appraisal process. The errors and bias are categorized into two main factors: a) the constant errors or latent tendency toward a ‘groupthinking’ appraisal b) the variable errors dealing with either discrepancies among raters or longitudinal disagreements on the same subject. The significance of the constant errors (i.e. halo effects, leniency or strictness bias), on the distortion the performance appraisals drive us to formulate and investigate the following hypotheses: 1. the leniency or strictness evaluation is highly depended on the job the employee assigned 2. the line personnel is evaluated more strictness than the staff personnel 3. there is an heterogeneous performance evaluation procedure between staff and line personnel Accepting the alternative hypothesis, a group of ‘underdeveloped’ relationships is raised among reliability, validity, acceptability, dissatisfaction, objectivity fairness and consistency, paternalism, manipulations and nontransparency of human resource policies. The importance of these relationships arises from the facts that performance ratings are often used (a) to aid in the determination of promotions, assign human resource to organization positions, merit increases, lateral transfers, and (b) to guide the organization in its estimate of training, educational and developmental needs and changes in hiring and career pathing policy. The sample in this study were N=300 employees whose performance evaluated for a year period 2010 under ‘Criteria-Based Performance Reviews’. The employees (ratees) were equivalently spitted in staff and line personnel derived from a public interest financial institution which organizational structure consist of two tiers : (a) the central or strategic (steering committee) and administrative schema (b) the peripheral or operational one. The performance appraisal form contained eight criteria (ie. quality of work, quantity of work, initiative, reliability,interpersonal relationship, dependability, knowhow, and administrative competency). The over all performance rated on eighth point scale ratings from 1=unsatisfactory……. 8=exceptional. For data processing, transforming data collected into a form appropriate to analysis and hypothesis testing, we use the software: S.P.S.S. statistics v. 17 release 17.0.0. In summary, Human Resource Decisions based on Performance Appraisal Models have significant human consequences and should embrace a moral balance between equity and effectiveness

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