Performance Appraisal Systems: Determinants and Change

Brown, Michelle; Heywood, John S.

doi:10.1111/j.1467-8543.2005.00478.x

“…But when performance is related to outcomes such as bonuses, pay increases or promotions, it is essential to measure individual performance as accurately and precisely as possible. Therefore, a regular assessment and a systematic monitoring of employees' performance is a precondition for an effective PRP scheme (Brown & Heywood, 2005). …”

mentioning

confidence: 99%

Performance appraisals and job satisfaction

Kampkötter

¹

2016

The International Journal of Human Resource Management

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. Abstract Formal performance appraisals (PA) are one of the most important human resource management practices in companies. In this paper, we focus on the reaction of employees to these performance assessments. In particular, we investigate the effect between the incidence of being formally evaluated by a supervisor and job and income satisfaction. Building on a representative, longitudinal sample of more than 12,000 individuals from the German Socio-Economic Panel Study (SOEP), we apply fixed effects regressions and find a significantly positive effect of PA on job satisfaction, which is driven by appraisals that are linked to monetary outcomes. Furthermore, the moderating effects of personality traits (Big Five, locus of control) on the relationship between PA and job satisfaction are explored. We find a negative interaction term between PA without any monetary consequences and both employees scoring high on openness to experience and internal locus of control. This suggests that for these employees appraisals, which induce performance moni...

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“…We show that managers are less appreciative of effort to sell new products when this effort follows a period of salesperson conservatism. Although this practice does not honor the associated sales performance, it does suggest that sales managers take into account a longer time-frame in their appraisals and do not suffer from Brecency bias^ (Brown and Heywood 2005) such that recent events have more influence on appraisals than less recent events. Our findings suggest that sales managers can oversee the entire length of the sales cycle and that they factor in the timing of their subordinates' effort.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

Are conservative approaches to new product selling a blessing in disguise?

Borgh

¹

,

Schepers

²

2017

J. of the Acad. Mark. Sci.

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A new product's success in the marketplace largely depends on salesforce actions. Many B2B salespeople display conservatism when confronted with new products in their portfolio, such that they maximize their efforts to sell existing products before engaging in efforts to sell the new product. So far, it is unclear whether this conservative selling behavior (CSB) is harmful to new product selling performance, and how this behavior can be managed. Building on perceived risk processing theory, and employing multi-level structural equation modeling on a multi-source dataset, the authors empirically substantiate that salespeople's CSB makes their effort to sell new products more effective. Remarkably, such effort is then valued less by sales managers. The authors also find that CSB is a result of a risk assessment and evaluation process, in which internal marketing efforts (i.e., providing salespeople with information on the new product) determine the weight of perceived performance risk (i.e., new product radicalness), social risk (i.e., managerial new product orientation), and financial risk (i.e., long-term rewards). Managers looking to control the levels of CSB in their salesforce should carefully align their information support activities with the perceived risk dimensions of the new product selling situation.

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“…Performance appraisal is often used to provide contemporaneous incentives (Brown and Heywood 2005). Similarly, profit sharing in Germany is usually a contemporaneous payment whereas employee share ownership provides rather long-term incentives (Heywood et al 2010).…”

Section: Control Variablesmentioning

confidence: 99%

“…While, simple piece rates reward the quantity of produced output, performance appraisal systems use more comprehensive measurement of worker performance to provide incentives (Brown and Heywood 2005).…”

Section: Work Councils and Variable Paymentioning

confidence: 99%

Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany

Heywood

¹

,

Jirjahn

²

2013

Brit J Industrial Rel

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We use a representative sample of German establishments to show that those with foreign ownership are more likely to use performance appraisal, profit sharing and employee share ownership than are those with domestic ownership. Moreover, we show that works councils are associated with an increased probability of using each of the three practices when under domestic ownership but not when under foreign ownership. These results inform the on-going debate over institutional duality, the extent to which foreign firms adopt uniform practices independent of local institutions and the extent to which they adapt and participate in those local institutions. Terms of use: Documents in EconStor may

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Performance Appraisal Systems: Determinants and Change

Cited by 157 publications

References 27 publications

Performance appraisals and job satisfaction

Performance appraisals and job satisfaction

Are conservative approaches to new product selling a blessing in disguise?

Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany

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