What are the four basic considerations for establishing performance standards?

Question

What will be an ideal response?

Answer 1

Before any appraisal is conducted, the standards by which performance is to be evaluated should be clearly defined and communicated to the employee. These standards should be based on job-related requirements derived from job analysis and reflected in the job descriptions and job specifications. In establishing performance standards, there are four basic considerations: strategic relevance, criterion deficiency, criterion contamination, and reliability.?First, performance standards should have strategic relevance. Strategic relevance refers to the extent to which performance standards are related to the strategic objectives of the organization. A second consideration in establishing performance standards is the extent to which the standards capture the entire range of an employee's responsibilities. When performance standards focus on a single criterion to the exclusion of other important performance dimensions, then the appraisal system is said to suffer from criterion deficiency. In addition to criterion deficiency, performance standards can also be contaminated. When performance standards include factors outside an employee's control that can influence his or her performance, then the appraisal system is said to suffer from criterion contamination. Fourth, performance standards should be reliable. Reliability refers to the stability or consistency of a performance standard, or the extent to which individuals tend to maintain a certain level of performance over time.