15.660 Strategic Human Resource ManagementGuidelines for Effective Performance AppraisalLegally Defensible Performance AppraisalChoices Embedded in Appraisal SystemsFundamental Questions about Performance AppraisalTwo Dimensions of EvaluationManaging PerformancePerformance Assessment & DiagnosisBuilding Effective Working RelationshipsCoachingHelpful Feedback15.660 Strategic Human Resource ManagementMIT Sloan School of ManagementGuidelines for Effective Performance Appraisal? Make sure the performance rating process is strategically useful; i.e., based on the key success factors needed for execution. ? Involve those being rated in the development of the rating scheme.? Insure that the process is related to job performance and meets legal requirements.? Train the raters on evaluation and feedback.Legally Defensible Performance Appraisal? Standards should be based on job analysis.? Standards communicated to employees.? Evaluations based on specific dimensions.? Dimensions defined in behavioral terms and supported by objective, observable evidence.? Raters should be trained and valid.? When possible, more than one rater is used.? Appraisal fits the cycle of work.? Documentation of extreme ratings is done.? Formal appeal process is available.Choices Embedded in Appraisal Systems? Who is evaluated?? What is evaluated?? Who performs the evaluation? Who has input?? Who sees the evaluation? For what purpose?? When is it conducted? ? Is the evaluation OBJECTIVE or SUBJECTIVE?? Is performance RELATIVE or ABSOLUTE?Fundamental Questions about Performance Appraisal? Is it linked to the larger incentive and reward system?? Does it make sense given the firm’s strategy?? Does it fit with the industry, workforce?? Is it consistent with the organizational culture?? Should individuals be evaluated at all?Two Dimensions of Evaluation??DischargePromoteHighResultsLowLow HighFitManaging Performance? Evaluating performance? Diagnosing performance? Providing feedback on performance? Linking performance with rewards & punishments? Coaching, counseling & developingPerformance Assessment & Diagnosis? Can you make cause-effect linkages between actions & outcomes?? How often & to what extent have you intervened? To what extent are you part of the problem?? Can you identify root causes?? What can be corrected?? What can be capitalized on?Building Effective Working RelationshipsSuccessFailureOur relationship is fine, but X doesn’t have a clear understanding of how s/he is doingWe don’t get along anymore, but X knows where s/he standsClearUnderstanding of PerformanceAmbiguousWeak StrongQuality ofRelationshipCoaching? Oriented toward problem-solving & action? Balance advocacy & inquiry? Be as descriptive & specific as possible? Take advantage of critical incidents? Agree to next steps? Identify specific developmental agendas? Identify available resources? Adapt your coaching style to the individualHelpful Feedback? Based on constructive evaluation and diagnosis of performance? Timely? Descriptive & specific? Defines consequences/impact of behavior? Oriented toward problem-solving &