PERFORMANCE APPRAISALS Performers Appraisal Learning Objectives Explain Purposes of Performance Management Identify Success Factors in Good Programs Identify Sources of Information for Evaluation Explain Key Methods used in Managing Performance Outline the Manager Sub Ordinate Interview Purpose of Performance Appraisal Systems Goal Maintain Organizational Productivity Results Organization Productivity Individual Performance Methods Individual Performance Goals Objectives Opportunity to Regularly Discuss Results Supervisor Identifies Strengths and Weaknesses Fair and Equitable Format Basis for Salary Promotion Recommendations Main Purposes of Performance Management Individual Rewards Base and Incentive Feedback for Sub Ordinate Plus and Minus Recognition of Superior Performance Documentation of Weak Performance Personnel Decision Making Future Goal Commitments Planned Achievements Reasons for Appraisals Compensation Pay for Performance Job Performance Improvements Feedback to Subordinates Documentation for Decisions Goal Setting Later Evaluation Promotion Decisions Identify Training Needs HR Planning Primary Uses of Performance Appraisals Small Large All Organizations Organizations Organizations Compensation 80 2 66 7 74 9 Performance improvement 46 3 53 3 48 4 Feedback 40 3 40 6 40 4 Documentation 29 0 32 2 30 2 Promotion 26 1 22 8 24 8 Training 5 1 9 4 7 3 Transfer 8 1 6 1 7 3 Discharge 4 9 6 7 5 6 Layoff 2 1 2 8 2 4 Personnel research 1 8 2 8 2 2 Manpower planning 0 7 2 8 1 5 Trends in Managing Performance Appraising Evaluating VERSUS Managing Performance Superior Performance leads to Superior Rewards Issue How to objectively measure specific goals Who Performs the Appraisal Immediate Supervisor Higher Management Self Appraisals Peers Co Workers Evaluation Teams Customers 360 Appraisals Supervisor Appraisal Performance appraisal done by an employee s manager and often reviewed by a manager one level higher Self Appraisal Performance appraisal done by the employee being evaluated generally on an appraisal form completed by the employee prior to the performance review Subordinate Appraisal Performance appraisal of a superior by an employee which is more appropriate for developmental than for administrative purposes Peer Appraisal Performance appraisal done by one s fellow employees generally on forms that are complied into a single profile for use in the performance interview conducted by the employee s manager Team Appraisal Performance appraisal based on TQM concepts that recognizes team accomplishment rather than individual performance The 360 Appraisal Interview Supervisor Other Superiors Other Superiors Individual Staff Peers Customers Self Assessment Teams Teams Sub Ordinates Performance Appraisal Problems Popularity Contest Punitive Implications Control Relinquishment Stereotypes Poor Training of Raters Peer Appraisal Concerns Disadvantages Advantages Rating Errors Issues Carefully Developed Behavior Descriptions Fair Evaluation Scales Factor Relatedness to the Job Types of Rating Errors Leniency Strictness Error Define Anchors Dimensions Force A Curve Central Tendency Reluctant to Give High Low Explain Need for Variability Recency Error Last Action Halo Encourage Frequent Evaluation Error of Central Tendency Performance rating error in which all employees are rated about average Leniency or Strictness Error Performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings Recency Error Performance rating error in which the appraisal is based largely on the employee s most recent behavior rather than on behavior throughout the appraisal period Rating Errors Example Job Rating Scale EXCELLENT on all factors Halo Leniency Job Rating Scale Employee A EXCELLENT Job Rating Scale Employee B EXCELLENT Job Rating Scale Employee C SUPERIOR Job Rating Scale Employee D EXCELLENT Central Tendency Job Rating Scale Employee A AVERAGE Job Rating Scale Employee B AVERAGE Job Rating Scale Employee C AVERAGE Job Rating Scale Employee D AVERAGE Recency Bias Job rating scale behavior during the last month has been POOR Similar To Me Error Performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection Appraisal Training Programs Needs 1 2 3 4 Explain Objectives Review the Instrument Define the Performance Standards Understand Typical Subjective Errors 5 Teach Interviewing Skills Scheduling the Performance Appraisal 1 Schedule the review and notify the employee ten days or two weeks in advance 2 Ask the employee to prepare for the session by reviewing his or her performance job objectives and development goals 3 Clearly state that this will be the formal annual performance appraisal Preparing for the Review for the Performance Appraisal 1 Review the performance documentation collected throughout the year Concentrate on work patterns that have developed 2 Be prepared to give specific examples of above or below average performance 3 When performance falls short of expectations determine what changes need to be made If performance meets or exceeds expectations discuss this and plan how to reinforce it 4 After the appraisal is written set it aside for a few days and then review it again 5 Follow whatever steps are required by your organization s performance appraisal system Appraisal Interviews Schedule the interview 10 to 14 days in advance Provide subordinates with a guide to follow in planning for the interview Consider which of the following approaches to use Tell and sell method Tell and listen method Problem solving method generally preferable Tell and Sell Interviews 1 Supervisor persuades employee to change in a prescribed way 2 Employees sees how changed behavior will be of great benefit Tell and Listen Interviews 1 Supervisor covers strengths weaknesses for first half 2 Solicits employee s feelings about comments 3 Deal with disagreement non defensively 4 Negotiate future concrete objectives The Problem Solving Interview 1 Discuss strengths and weaknesses since last review 2 Explore feelings of sub ordinate 3 Listening accepting and responding are essential 4 Stimulate growth performance job 5 Discuss problems needs innovations satisfactions and dissatisfactions since last review 6 Listen and respond with goal of helping person and productivity Appraisal Interviews During the Interview Emphasize strengths to build on Suggest more acceptable ways of acting Concentrate on