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Performance Management and the Employee Appraisal Process. The Challenges of Human Resources Management. Performance Appraisal. “Performance Appraisal given by someone who does not want to give it to someone who does not want to get it .” –Anonymous
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Performance Managementand the Employee AppraisalProcess The Challenges of Human Resources Management
Performance Appraisal • “Performance Appraisal given by someone who does not want to give it to someone who does not want to get it.” –Anonymous • Managers resist appraisal programs because they find the role of judging others (“playing God”) intolerable.
Performance appraisal An annual or biannual process in which a (typically) a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information • To develop the worker and show the person where improvements are needed and why • To make various kinds of administrative decisions
Selected Best Practices for Administering Fair Performance Appraisals • Base the performance review on duties and standards from a job analysis. • Try to base the performance review on observable job behaviors or objective performance data. • Make it clear ahead of time what your performance expectations are. • Use a standardized performance review procedure for all employees (at same level). • Make sure whoever conducts the reviews has frequent opportunities to observe the employee’s job performance. • Either use multiple raters or have the rater’s supervisor evaluate the appraisal results. • Include an appeals mechanism. • Document the appraisal review process and results. • Discuss the appraisal results with the employee. • Let the employees know ahead of time how you’re going to conduct the review and use the results. • Let the employee provide input regarding your assessment of him or her. • Indicate what the employee needs to do to improve. • Thoroughly train the supervisors who will be doing the appraisals.
Guidelines for a Legally Defensible Appraisal • Preferably, conduct a job analysis to establish performance criteria and standards. • Communicate performance standards to employees and to those rating them, in writing. • When using graphic rating scales, avoid undefined abstract trait names (such as “loyalty” or “honesty”). • Use subjective narratives as only one component of the appraisal. • Train supervisors to use the rating instrument properly. • Allow appraisers substantial daily contact with the employees they’re evaluating. • Using a single overall rating of performance is usually not acceptable to the courts. • When possible, have more than one appraiser, and conduct all such appraisals independently. • One appraiser should never have absolute authority to determine a personnel action. • Give employees the opportunity to review and make comments, and have a formal appeals process. • Document everything: Without exception, courts condemn informal performance evaluation practices that eschew documentation. • Where appropriate, provide corrective guidance to assist poor performers in improving.
Sources of Performance Appraisal • Manager and/or Supervisor • Appraisal done by an employee’s manager and reviewed by a manager one level higher. Most frequently used protocol. • Subordinate Appraisal • Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes. • Self-Appraisal • Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.
Sources of Performance Appraisal (cont.) • Peer Appraisal • Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager. • Why peer appraisals are not used more often: • Peer ratings are simply a popularity contest. • Managers are reluctant to give up control over the appraisal process. • Those receiving low ratings might retaliate against their peers. • Peers rely on stereotypes in ratings.
Sources of Performance Appraisal (cont.) • Team Appraisal • Based on TQM (total quality management) concepts; recognizes team accomplishment rather than individual performance • Customer Appraisal • A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers
Performance Appraisal Roles • The Supervisor’s Role • Usually do the actual appraising • Must be familiar with basic appraisal techniques • Must understand and avoid problems that can cripple appraisals • Must know how to conduct appraisals fairly
Performance Appraisal Roles (cont’d) • The HR Department’s Role • Serves a policy-making and advisory role. • Provides advice and assistance regarding the appraisal tool to use. • Trains supervisors to improve their appraisal skills. • Monitors the appraisal system effectiveness and compliance with EEO laws.
1 2 3 Effectively Appraising Performance Steps in Appraising Performance Defining the job and performance criteria Appraising performance Providing feedback session
Setting SMART Goals • Specific, and clearly state the desired results. • Measurable in answering “how much.” • Attainable, and not too tough or too easy. • Relevant to what’s to be achieved. • Timely in reflecting deadlines and milestones.
One Minute Manager Published 1982 About 100 pages in a story format Sold more than 13 million copies Translated into more than 37 languages
Three Steps in Being a One Minute Manager One Minute Goal Setting One Minute Praisings One Minute Reprimand
One Minute Goal Setting This is foundation for One Minute Management. The authors advocate the 80-20 goal-setting rule: that 80% of your really important results will come from 20% of your goals. One Minute Goal Setting is simply: 1. Agree on your goals. 2. See what good behavior looks like. 3. Write out each of your goals on a single sheet of paper using less than 250 words. 4. Read and re-read each goal, which requires only a minute or so each time you do it. 5. Take a minute every once in a while out of your day to look at your performance. 6. See whether or not your behavior matches your goal.
One Minute Praisings The authors suggest that effective managers help people reach their full potential by catching them doing something right. The One Minute Praising works well when you: 1. Tell people up front that you are going to let them know how they are doing. 2. Praise people immediately. 3. Tell people what they did right—be specific. 4. Tell people how good you feel about what they did right, and how it helps the organization and the other people who work there. 5. Stop for a moment of silence to let them "feel" how good you feel. 6. Encourage them to do more of the same. 7. Shake hands or touch people in a way that makes it clear that you support their success in the organization.
One Minute Reprimand (1 of 2) The One Minute Reprimand works well when you: 1. Tell people beforehand that you are going to let them know how they are doing and in no uncertain terms. the first half of the reprimand: 2. Reprimand them immediately. [reprimand the behavior only, not the person or their worth] 3. Tell people what they did wrong—be specific. 4. Tell people how you feel about what they did wrong—and in no uncertain terms. 5. Stop for a few seconds of uncomfortable silence to let them feel how you feel.
One Minute Reprimand(2 of 2) the second half of the reprimand: 6. Shake hands, or touch them in a way that lets them know you are honestly on their side. 7. Remind them how much you value them. 8. Reaffirm that you think well of them but not of their performance in this situation. 9. Realize that when the reprimand is over, it’s over.
(Un)Realistic Appraisals • Motivations for Soft Appraisals • The fear of having to hire and train someone new. • The unpleasant reaction of the appraisee. • An appraisal process that’s not conducive to candor. • Hazards of Soft Appraisals • Employee loses the chance to improve before being discharged or forced to change jobs. • Lawsuits arising from dismissals involving inaccurate performance appraisals.
1 6 2 7 3 4 5 10 9 8 Performance Appraisal Methods Appraisal Methodologies Graphic rating scale Critical incident Alternation ranking Behaviorally anchored rating scales (BARS) Paired comparison Management by objectives (MBO) Computerized and Web-based performance appraisal Forced distribution Narrative forms 360º feedback
Six Primary Criteria on Which the Valueof Performance May Be Assessed
Ranking Employees by the Paired Comparison Method Note: + means “better than.” - means “worse than.” For each chart, add up the number of +’s in each column to get the highest ranked employee.
Forced Distribution • Normal curve • Rank and Yank
Narrative forms • Write something (provide a narrative) about the individual’s performance either by key factors or just overall.
Critical Incident Method • Critical incident • An unusual event that denotes superior or inferior employee performance in some part of the job • The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform.
Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills
Developing a BARS Write critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument Advantages of BARS A more accurate gauge Clearer standards Feedback Independent dimensions Consistency Behaviorally Anchored Rating Scale (BARS)
Management by Objectives (MBO) • A comprehensive and formal organizationwide goal-setting and appraisal program requiring: • Setting of organization’s goals • Setting of departmental goals • Discussion of departmental goals • Defining expected results (setting individual goals) • Conducting periodic performance reviews • Providing performance feedback
