Performance Appraisal Exercise

Michael Horvath, Cleveland State University

Brief description: This exercise is designed to get undergraduates to experience a brief

performance appraisal process. I broke the class into three ‘conditions.’ Each group was to
manufacture paper ‘roses’ using napkins (any novel task will do). Groups differed on two
dimensions: 1) the type of rating system employed, and 2) dependences among the team
members (i.e., in interdependent groups each member received specialized training on how to
make only one part of the paper rose, and had to depend on the others to complete the product).
The ‘supervisor’ of each group had the ability to allocate extra credit points on the basis of
individual performance. (There were many opportunities for this kind of credit, so I wasn’t too
concerned with student concerns about another student having control over such a small part of
their grade, but I felt that the fact that part of their grade was dependent upon this rating process
got the students more involved).

After the exercise was completed and managers made their ratings, I opened the class up for
discussion about their reactions. I had them tie what we’d done back into the class concepts
about performance appraisal, but we also discussed their reactions (i.e., what problems did
managers have in each of the conditions? How fair did the employees think each process was?).

Suggested variant on this exercise: Each manager was supposed to have received 4 points.
However, let the students know that they may be able to affect the manager’s outcome at some
point (or make that part be a surprise). After the manager has assigned points, give each team
member the opportunity (e.g., by secret ballot) to reduce that manager’s point total by 2 points
(i.e., give them the opportunity to engage in an Organizational Retaliatory Behavior). Discuss
how the nature of the performance appraisal system might influence students’ willingness to
retaliate (i.e., is it less likely if that manager had been constrained by a forced-choice system vs.
being allowed to make those decisions?).
GROUP A

PSYCH 364 Performance Appraisal Exercise

INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as
possible (Mike will teach you how to make them). Your team will work as part of an assembly
line. One of you will work on the petals, one on the stem, and one on the leaf. When you finish
each rose (your part), hand the rose to the next person in line. Based on your performance, your
manager will be able to give you between 1 and 5 extra credit points. Keep in mind that this is
an exercise – don’t get too mad at the manager!

INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on
their performance (both quantity as well as quality). You have the option to send roses back if
they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be
responsible for rewarding your employees with extra credit points.

Your performance ratings should be based on the following distribution (write in the names
here):

TOP PERFORMER (5 points) : ______________________________

MEDIUM PERFORMER (3 points) :___________________________

MEDIUM PERFORMER (3 points): ___________________________

LOW PERFORMER (1 point): ________________________________

After you have made your assignments, you should discuss your ratings with your subordinates
so that they understand how the decisions were made.

As a manager, you will receive a ‘salary’ of 4 extra credit points.

GROUP B

PSYCH 364 Performance Appraisal Exercise

INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as
possible (Mike will teach you how to make them). Your team will work as part of an assembly
line. One of you will work on the petals, one on the stem, and one on the leaf. When you finish
each rose (your part), hand the rose to the next person in line. Based on your performance, your
manager will be able to give you between 1 and 5 extra credit points. Keep in mind that this is
an exercise – don’t get too mad at the manager!

INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on
their performance (both quantity as well as quality). You have the option to send roses back if
they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be
responsible for rewarding your employees with extra credit points.

You have 12 extra credit points to divide among your employees. Every employee should
receive at least one point. No single employee should receive more than 5 points. In the space
below, write down each employee’s name and their points here:

After you have made your assignments, you should discuss your ratings with your subordinates
so that they understand how the decisions were made.

As a manager, you will receive a ‘salary’ of 4 extra credit points.

GROUP C

PSYCH 364 Performance Appraisal Exercise

INSTRUCTIONS TO TEAM: You are responsible for making as many high-quality roses as
possible (Mike will teach you how to make them). Your team will work independently on each
rose – that is, each employee will create entire roses from start to finish. Based on your
performance, your manager will be able to give you between 1 and 5 extra credit points. Keep in
mind that this is an exercise – don’t get too mad at the manager!

INSTRUCTIONS TO MANAGER: You are responsible for rewarding your employees based on
their performance (both quantity as well as quality). You have the option to send roses back if
they are not of sufficient quality. After this shift is over (approximately 10 minutes), you will be
responsible for rewarding your employees with extra credit points.

Your performance ratings should be based on the following distribution (write in the names
here):

TOP PERFORMER (5 points) : ______________________________

MEDIUM PERFORMER (3 points) :___________________________

MEDIUM PERFORMER (3 points): ___________________________

LOW PERFORMER (1 point): ________________________________

After you have made your assignments, you should discuss your ratings with your subordinates
so that they understand how the decisions were made.

As a manager, you will receive a ‘salary’ of 4 extra credit points.