Validity of Appraisal Instrument

Regardless of an organization's specific needs for performance appraisal, five general requirements must be met by an appraisal system if it is to accomplish its objectives: reliability, validity, practicality, fairness, and impact.

Reliability.

Reliability is the consistency of a measure over time and across different raters. Consistency over time means that at any two points in time, an instrument should yield the same findings or results. This form of reliability is not too appropriate to performance appraisal since one would expect to see changes in performance across time. Consistency between raters is a more important requirement of same employee. Generally, research shows that well-trained raters become quite consistent in their ratings. Highest degrees of consistency should occur when raters are in the same position to observe a given employee. It is generally believed that an immediate superior is in the best position to evaluate the performance of a subordinate, though in practice this is not always the case. Reasonably high reliability is necessary for validity.

Validity.

Validity is the degree to which a measure measures what it is supposed to measure. The major aspect of validity in performance appraisal is content validity. An appraisal instrument has content validity to the extent that it includes most of the important job behaviors and/or results of the job.

Practicality.

In order to meet the practicality requirement, an appraisal system must be acceptable to both evaluators and evaluatees. If an appraisal system is unacceptable, its use will be resisted, and resultant appraisals or appraisal decisions will be discounted. Practicality also means that an appraisal system must be able to measure something that is significant to individuals and to the organization's goals, or it will have little utility to employees or to the organization.

Fairness.

Employees must feel that appraisals are conducted fairly and that the consequences of appraisals (raises, promotions, etc.) are fair. A system perceived to be unfair will likely prove unacceptable to employees.

Impact.

An appraisal system must have significant impact. Without it, the system loses its credibility. If a system is able to measure something significant to individuals and to organizational goals, then it stands a better chance of having impact.

Ref: Thomas H. Stone

Keep employees' morale up in difficult times

Motivating employees is always important, but inspiring your team takes on increased significance during challenging economic times. When business results are less than promising, emotions, such as fear and anxiety, can bring employee performance to a standstill.

Here are some suggestions from the Tennessee Society of Certified Public Accountants (TSCPA) to help foster productivity, high morale and loyalty in your work force during the best and worst of times.

Give them vision.

To keep up morale, make sure employees know and understand the organization's mission, vision, values and goals. These concepts represent the organization's reason for being and, as such, help workers focus their efforts in the right direction and see that their contributions matter. Be sure they know who benefits from the work of your organization.

Don't hide the target.

Setting clear expectations is a great way to motivate employees and keep them on track. Clearly establish goals with each employee. Indicate the results you expect and how those results contribute to the overall performance of your business. To confirm their understanding, ask employees if they have any questions or need any resources to complete the tasks you assign. Finally, make sure if the organization's goals change, you let your employees know how these changes impact their roles.

Provide regular feedback.

Conducting an annual employee performance review is important, but it's not enough. Employees need to know, on an ongoing basis, when they have done a job well and when you expect better or different results. Keep in mind that the more immediate the feedback, the more effective it is. Try to catch people in the act of doing what you want and acknowledge their performance immediately.

Make employees part of the solution.

Employees need to be involved. Empowering employees to make decisions about their work and to solve day-to-day problems demonstrates your confidence in them and motivates them to live up to your expectations. Another bonus: When you make employees part of the solution, it is easier to get their buy-in and commitment for the long term.

Focus on people development.

Since most people thrive when skill building and learning are part of their daily experiences, investing in your staff's development should remain a priority. Training, career development and other learning opportunities don't have to cost a lot, particularly when you use internal resources. The best way to ensure the growth of your team is to create an individual development plan for each employee and work with them to carry out the plan.

Communicate, communicate, communicate.

You cannot overcommunicate, particularly in uncertain or difficult times. Sharing information and building your staff's understanding of what's happening in the business and in the industry is key to engaging them and to aligning their efforts and performance with the organization's objectives.

What's more, sharing information with employees sets a good example and encourages them to do the same with one another. Since not everyone processes information the same way, it's helpful to use multiple forms of communication, particularly when the information is critical.

For example, you might follow up an e-mail message with a voice-mail reminder. And don't assume that, just because a communication has gone out, that it has been understood and accepted. Instead, ask questions to confirm comprehension.

1. Don't overlook the power of praise. Recognizing and rewarding workers is one of the best ways to impact morale. Acknowledge good effort, not just results. Keep in mind that different things motivate people, whether it is money, travel, training, promotions or a flexible work schedule. The best way to find out what motivates your staff is to ask them.

2. Build fun. There are important milestones in the life of every business. Be sure to mark them. Throw a party and celebrate your workers' accomplishments. Don't ever allow yourself to get so caught up in the daily routine that you fail to see the good work being done.

3. Be positive. Every day millions of people arrive at their workplace ready to contribute their best. The attitude of business leaders can greatly impact employees. Be positive and supportive and your employees are more likely to act similarly.