Overcoming Performance Rating Biases: 3 Key Issues & Solutions

Abstract

Question 1: List and explain 3 of problems that affect performance ratings Performance ratings refers to measures taken to analyze the performance of a worker and record his/her performance in relation to the standard performance set by the analyst. Performance rating is mostly in a scale of 5-point rating where 5 is the excellent work performance and 1 is the unacceptable work performance. Factors that affect performance ratings. Central Tendency Error in performance rating of an employee occurs where a supervisor rate most of their employees within a narrow range. In performance ratings, some supervisors give higher ratings than are deserved because they like the employee. Some supervisors tend to give low ratings to the employee they dislike. Strictness error occurs where supervisors have different ways of perceiving the same task, hence it can be difficult to determine which employee is correct. This is a common problem when giving appraisals unless a supervisor chooses to assess the performance of the two workers by checking their performance throughout the duration of their employment with the company and basing a decision on this information. Comparing/conrasting error occurs when a supervisor compares two or more employees. Each worker is different and unique in their own way. Employees have different strengths and weaknesses which distinguish them professionally. When comparing employees, a supervisor should use absolute performance measurements for each one instead of subjective ratings. Subjective ratings are biased and can lead to the compare/contrast error. This happens when managers or supervisors see their good performers go up, while the lower-rated ones stay stagnant on their performance levels. Question 2: compare and contrast job-based pay and skill-based pay. Why would an organization choose job-based pay? Job-based pay refers to the compensation paid to a worker in relation to his title and responsibilities assigned while Skill-based pay refers to the salary/pay paid after assessing the employee’s experience and abilities....