Conducting Effective Performance Appraisals

Pen Bay Healthcare

December 2010

Today’s Objectives

Participants will understand PBH expectations concerning conducting annual employee performance evaluations

Participants will become familiar with all facets of conducting effective performance appraisals

Objectives of an Appraisal Program To provide employees with the

opportunity to discuss performance and performance standards with their supervisor

To provide the supervisor with a means of identifying the strengths and areas in need of improvement concerning an employee’s performance

Appraisal Program Objectives(cont’d) To provide a format from which the

supervisor can recommend a specific program designed to help an employee improve performance

To provide a basis for salary recommendations (not applicable at PBH)

Qualifications of Appraisers

Opportunity to observe. The appraiser must be in a position to collect relevant information about the person being evaluated… through personal observation, reviewing records, or talking with others who have direct knowledge of the person

Qualifications (cont’d)

Understanding of Job Requirements. A clear understanding of job requirements and standards of satisfactory performance is required.

Having an appropriate point of view. One’s point of view influences which observed performance is considered desirable or undesirable.

Setting Standards for Honestand Consistent Reviews Position Descriptions

– Up to Date, Complete & Accurate– Clearly Defined– Essential Job Responsibilities– Behavior Standards (RESPECT)– Minimum Qualifications

Setting Standards for Honestand Consistent Reviews(cont’d) Rating Systems

– Need to be supported with substantive and specific narrative

Goals– Use SMART

Establishing Performance Criteria Employee’s major accomplishments

during the time frame of the evaluation Goals accomplishment Problems encountered regarding goals

accomplishment Problems to avoid in the future

(coaching)

Establishing Performance Criteria (cont’d)

Employee’s strengths Areas in need of improvement

Scheduling the Review Schedule the review and notify the

employee 10 days to two weeks in advance.

Ask the employee to prepare for the meeting by reviewing his or her performance, job objectives, and development goals.

Answer preliminary employee questions Discuss meeting agenda with the

employee.

Prepare for the Review

Plan for what is to be discussed, including specific facts and examples.

Establish meeting objectives and agenda.

Include time to discuss the employee’s concerns and questions.

Allow sufficient time for the session.

Preparation (cont’d)

Plan for open dialogue - opportunity to review performance, consider lessons learned, progress for year and establish goals and objectives for next year.

Lay out plan for performance discussions - collect and review notes, statistics, counseling and performance based examples.

Preparation (cont’d)

Prepare to discuss the full range of issues which may arise in the performance evaluation discussion

Don’t exhibit defensiveness - if employee criticism is justified due to management failure or lack of resources, accept, and move on to the next area of review

Preparation (cont’d)

Respect confidentiality of the review discussion when possible. If unlimited confidentiality cannot be promised, advise employee accordingly.

Create a Proper Setting and Climate Select a location that is comfortable and

free from distractions. Take action to eliminate unannounced

visitors and telephone calls. No cell phones, pagers, e-mails Ensure that the selected location will

encourage a frank and candid conversation.

Avoid “a let’s get this over with” attitude.

What to Cover in a Formal Review Review both quality and quantity of

work Discuss identified trends Discuss how specific tools or training

have affected job performance Identify specific tools or training that can

be used to improve job performance

What to Cover in a Formal Review (cont’d) Provide feedback on matters of

performance, behavior and interpersonal relationships

Review and evaluate progress concerning goals set at prior review

Set goals for the next review period

High Performers

Goal - build an emotional bank account Key Message for high performers is to

re-recruit them “I value you. I do not want you to leave.

Is there anything that might cause you to think about leaving? What can I do to help you and your department to achieve your goals?”

Middle Performers Goal - Invest in developing these

employees and help them become high performers

Reassure the employee - let her/him know she/he is valued

Support - describe good qualities Coach - cover a development

opportunity (one area only) Support - reaffirm good qualities

Low Performers

“No Surprises” - do not wait until the annual performance evaluation to inform an employee that she/he is not performing satisfactorily

Review documented unsatisfactory performance/behavior with the employee and advise her/him of her/his progress

Low Performers (cont’d)

Goal - “manage up or manage out” Do not start the meeting out on a

positive note Describe what has been observed Evaluate how you feel Show what needs to be done Know the consequences of continued

same performance and document

Low Performers (cont’d)

Cite specific observed examples - past incidents or lack of meeting goals and impact on employee, team, customer, department etc.

If necessary, advise employee that the development of a performance improvement plan will be necessary and set a separate meeting to do this

Goal Setting

Mutually define and establish specific goals/objectives for the evaluation period

Create mutually agreed time frames to review progress on goals

Communicate changes or redirection of goals in a timely manner

Goal Setting(cont’d) Use SMART goal Criteria S pecific M easurable A chievable R elevant T ime-Bound

Goal Setting (cont’d)

Align goals with the PBH’s strategic and business plan

Establish mutually agreed to goals which add value

Recommend and recognize behaviors that are aligned with organizational business plans

Establish regular review dates

PBH Rating Standards

Outstanding Above Expectations Achieves Below Expectations Unsatisfactory

Narrative

Narrative is required whenever there is an Outstanding or Unsatisfactory rating

Narrative should be specific to fully explain the rating

Rating Perils

Halo/Horn Effect - evaluator allows one positive or negative performance dimension to influence all ratings

Central Tendency - lack of rating differentiation between employees

Leniency - avoids honest ratings to avoid conflict

Recency - narrow focus on recent events

Rating Perils (cont’d)

Similarity/Like Me - favorable rating to employees who have similar values or interests as the rater

Constancy - rate employees via comparison or rank order rather than against established objective criteria

Avoiding Other Rating Perils

Ensure that statements are objective Consider the totality of the employee

performance Keep good records/documentation to

ensure the use of specific examples Establish regular review dates

concerning established goals and unresolved performance & behavior issues

Avoid Other Rating Perils(cont’d)

Discuss specific performance issues and behaviors objectively

Consider the legal impact of inaccurate performance ratings

Maintain clear and open communication channels

Avoiding Other Rating Perils(cont’d)

Specific comments should avoid any connotations which are connected to: age, race, sex, sexual orientation, religion, national origin, veteran status or a specific disability

Timeline - 2011

HR will Forward Modified Job Descriptions to Employees for Signatures on December 22, 2010

Performance Appraisals Forwarded to Managers on January 3, 2011

Performance Appraisals Due to be Completed by March 31, 2011

Q & A

Questions? Comments?