Articlebronze2013

Pernicious Performance Appraisals: A Critical Exercise

2 citations0/0 files storedJournal of Behavioral and Applied Management

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Decision-Making and Behavioral Economics Management and Marketing Education Innovative Teaching Methodologies in Social Sciences

Abstract

This article presents a pedagogical exercise where students can experience bias and chance in a performance appraisal process. Students in the role of Vice-presidents interview and make decisions regarding employment and pay for analysts. Student analysts are interviewed and either fired, promoted, or given pay increases based on the interview and the Vice-president’s information. Ultimately, it is revealed that there is no difference in true performance among analysts and that all decisions were based on bias and chance. The article provides an extensive literature review and teaching notes to support the problems with the administrative use of performance appraisals.

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References

1975Judgment under Uncertainty: Heuristics and Biases 1972A Garbage Can Model of Organizational Choice 1982Out of the Crisis 1973On the psychology of prediction.1984Judgment Under Uncertainty: Heuristics and Biases.1982Judgment under uncertainty: Heuristics and biases 1987Managerial Perspectives on Risk and Risk Taking 1932Economic Control of Quality of Manufactured Product.

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