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In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this chapter, we review criticisms of traditional PM practices that have been mentioned by journalists and practitioners and we consider the solutions that they have presented for addressing these concerns. We then consider these problems and solutions within the context of extant scholarly research and identify (a) what organizations should do going forward to improve PM practices (i.e., focus on feedback processes, ensure accountability throughout the PM system, and align the PM system with organizational strategy) and (b) what scholars should focus research attention on (i.e., technology, strategic alignment, and peer-to-peer accountability) in order to reduce the science-practice gap in this domain.

The current chapter focuses on environmental and organizational factors that affect the performance appraisal context, performance evaluations, and rating accuracy. Drawing on the extant literature and focusing on current organizational practices, we propose a dynamic multi-level model of performance rating that takes these distal factors into consideration. In doing so, we also provide propositions explicating causal linkages between these distal factors, more proximal performance appraisal factors, and ultimately the accuracy of performance ratings. Furthermore, we identify current and emerging directions in performance appraisal research and practice. The implications of the current and emerging trends are then discussed in the context of our proposed model.

Exercises are key components of assessment centers (ACs). However, little is known about the nature and determinants of AC exercise performance. The traditional exercise paradigm primarily emphasizes the need to simulate task, social, and organizational demands in AC exercises. This chapter draws on trait activation theory in proposing a new AC exercise paradigm. First, we develop a theoretical framework that addresses the complexity of situational characteristics of AC exercises as determinants of AC performance. Second, we argue for planting multiple stimuli within exercises as a structured means of eliciting candidate behavior. Third, we show how the new paradigm also has key insights for the rating part of ACs, namely, in selecting dimensions, designing behavioral checklists, screening assessors, and training assessors. Finally, the impact of this new AC exercise paradigm is anticipated on important AC outcomes such as reliability, internal/external construct-related validity, criterion-related validity, assessee perceptions, and feedback effectiveness.

Self-report questionnaires are the predominant method used in human resource management (HRM) research to assess employees’ work-related psychological constructs (e.g., processes, states, and attributes). However, this method is associated with significant shortcomings, including the introduction of self-serving bias and common method variance when used exclusively. In this chapter, the authors challenge the assumption that individuals themselves are the only accurate source of the self-focused information collected in HRM research. Instead, the authors propose that other-ratings – ratings of a target individual that are provided by a workplace observer, such as a coworker, supervisor, or subordinate – can accurately assess commonly measured work-related psychological constructs. The authors begin by explaining the advantages of other-ratings for HRM research and practice, reviewing the history of other-ratings and how they emerged in the personality and person-perception literature, and outlining how they have been used in HRM research to date. Then, the authors build upon Funder’s (1995) realistic accuracy model to develop a theoretical argument detailing why workplace others should be able to accurately judge how another employee thinks and feels about work. Next, the authors highlight existing evidence in the literature on the accuracy of other-ratings and present the results of a preliminary meta-analysis on the ability of other-ratings to predict self-ratings of work-related psychological constructs. Finally, the authors discuss potential moderators of other-rating accuracy and reflect on a number of practical considerations for researchers looking to use other-ratings in their own work. The authors intend for this chapter to meaningfully contribute to the larger conversation on HRM research methods. Other-ratings are a simple, yet powerful, addition to the methodological toolkit of HRM researchers that can increase flexibility in research design and improve the overall quality of research.

Benchmark surveys regarding talent management assessment practices and interventions of choice for organization development (OD) practitioners have shown 360-degree feedback to be a popular tool for both development and decision-making in the field today. Although much has been written about implementing 360-degree feedback since its inception in the 1990s, few longitudinal case examples exist where interventions have been applied and their impact measured successfully. This chapter closes the gap by providing research findings and key learnings from five different implementation strategies for enhancing 360-degree feedback in a large multi-national organization. Recommendations and implications for future research are discussed.

This study examines the impact of different Balanced Scorecard (BSC) formats (table, graph without summary measure, graph with a summary measure) on various decision outcomes: performance ratings, perceived informativeness, and decision efficiency.

Using an original case developed by the researchers, a total of 135 individuals participated in the experiment and rated the performance of carwash managers in two different scenarios: one manager excelled financially but failed to meet targets for all other three BSC perspectives and the other manager had the opposite results.

The evaluators rated managerial performance significantly lower in the graph format compared to a table presentation of the BSC. Performance ratings were significantly higher for the scenario where the manager failed to meet only financial perspective targets but exceeded targets for all other nonfinancial BSC perspectives, contrary to the usual predictions based on the financial measure bias. The evaluators reported that informativeness of the BSC was highest in the table or graph without summary measure formats, and, surprisingly, adding a summary measure to the graph format significantly reduced perceived informativeness compared to the table format. Decision efficiency was better for the graph formats (with or without summary measure) than for the table format.

Ours is the first study to compare tables, graphs with and without a summary measure in the context of managerial performance evaluations and to examine their impact on ratings, informativeness, and efficiency. We developed an original case to test the boundaries of the financial measure bias.

Although performance assessment systems are widely used in government agencies, they are underutilized in promotional decisions. Most promotions are based on the results of knowledge-based exams to the exclusion of other data such as job performance ratings, personality constructs, and motivation. Two empirical studies examined this and made recommendations for change. The first study examined the relationship between early career performance appraisal scores and future organizational advancement. The second study examined how personality variables correlated with desire to advance in the organization to attain supervisory positions. Findings provide support for incorporating job performance measures and personality constructs in promotional decision-making.

Accurate measurement of Company Social Performance is a challenge which calls for attention from many stakeholders. Worldwide, businesses are very economical, powerful entities and have operations in developed and emerging countries, and therefore are requested to behave ethically and in accordance with social concerns. The financial crises of 2008 affected the reputation of many firms and give Corporate Social Responsibility (CSR) more importance. In addition to the demands of Sustainable Global Economy, firms are required to disclose activities. Evidence demonstrated that for CSR disclosing initiatives, firms are evaluated and measured. Ethic rating (ER) is one method to measure CRS. This investigation presents a CSR measuring approach based on CSR disclosing/reporting, information in which the ER is based. In my endeavours, more specifically, I try to answer the question how could I measure CSR using ethic rating? This work presents a specific case of study of Colombian quoted enterprises in the Colombian Stock Exchange using ethic rating analysis. For this research, sustainable reports and annual reports are analysed and the ethics rating is based on both qualitative and quantitative assessments. The ethic rating analysis shows that CSR in Colombia is gaining importance each year, and IGBC companies are showing improved performance. Currently, there are no studies conducted to assess ER for Colombian companies.