Appraising and Appraising and

Managing Managing PerformancePerformance

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Chapter 7Chapter 7

CHAPTER 7 OVERVIEWCHAPTER 7 OVERVIEW

Explain why performance appraisal is important Explain why performance appraisal is important and describe its componentsand describe its components

Discuss the advantages and disadvantages of Discuss the advantages and disadvantages of different performance rating systemsdifferent performance rating systems

Manage the impact of rating errors and bias on Manage the impact of rating errors and bias on performance appraisalsperformance appraisals

Discuss the potential role of emotion in Discuss the potential role of emotion in performance appraisal and how to manage its performance appraisal and how to manage its impactimpact

Identify the major legal requirements for appraisalIdentify the major legal requirements for appraisal Use performance appraisals to manage and Use performance appraisals to manage and

develop employee performancedevelop employee performance

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YEARS OF

SERVICE

PURE

EFFORT

WORKLOAD

HARDWORING

SKILLS

TECHNICALKNOWLEDGE

FRIENDLYPERSONALITY LI

KED BY

OTHER

COLLEAG

UES

YEARS OF

SERVICE

PURE

EFFORT

WORKLOAD

HARDWORKING

TECHNICALKNOWLEDGE

FRIENDLYPERSONALITY LI

KED BY

OTHER

COLLEAG

UES

SKILLS

Delivering

Agreed or UnderstoodDESIRED RESULTS

required for the JOB

WHAT IS PERFORMANCE WHAT IS PERFORMANCE APPRAISAL?APPRAISAL? The The

identification, identification, measurement, measurement, and and management of management of human human performance in performance in organizations.organizations.

(c) 2007 by Prentice Hall

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WHAT IS PERFORMANCE WHAT IS PERFORMANCE APPRAISAL?APPRAISAL?

1.1. Administrative purposesAdministrative purposes

2.2. Developmental purposesDevelopmental purposes

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The Uses of Performance Appraisal

IDENTIFYING PERFORMANCE IDENTIFYING PERFORMANCE DIMENSIONSDIMENSIONS

DimensionDimension – An aspect of performance – An aspect of performance that determines effective job that determines effective job performance.performance.

What is measured should be directly What is measured should be directly tied to what the business is trying to tied to what the business is trying to achieve achieve Should be viewed as a management toolShould be viewed as a management tool

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Administering numbers or labels Administering numbers or labels towards performance is difficult to towards performance is difficult to quantifyquantify

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MEASURING PERFORMANCE MEASURING PERFORMANCE

Measurement Tools

Type of Judgment Relative judgment – An appraisal format that

asks supervisors to compare an employee’s performance to the performance of other employees doing the same job.

Absolute judgment – An appraisal format that asks supervision to make judgments about an employee’s performance based solely on performance standards.

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MEASURING PERFORMANCE MEASURING PERFORMANCE

TRAIT, BEHAVIORAL AND OUTCOME DATA

Trait appraisal instruments Trait appraisal instruments

Focuses to person rather than to Focuses to person rather than to performance performance

Personal behavior tendenciesPersonal behavior tendencies

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MEASURING PERFORMANCE MEASURING PERFORMANCE

Behavioral appraisal instrumentsBehavioral appraisal instruments Workers behaviorsWorkers behaviors Time consuming in developingTime consuming in developing

systemsystem Behaviors not exhibit Behaviors not exhibit

Outcome appraisal instruments – MBOOutcome appraisal instruments – MBO Increased flexibility Increased flexibility

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MEASURING PERFORMANCE MEASURING PERFORMANCE

Measurement Tools – continued

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Self

Peers

Managers

Subordinates

Self

Customers

YAHOO!YAHOO!

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CHALLENGES TO EFFECTIVE CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENT PERFORMANCE MEASUREMENT

Rater errors and biasRater errors and bias Rater errorRater error – An error in performance – An error in performance

appraisals that reflects consistent biases appraisals that reflects consistent biases on the part of the rater.( hallo error, on the part of the rater.( hallo error, leniency , central tendency, severity) leniency , central tendency, severity)

ComparabilityComparability Frame-of-reference (FOR) trainingFrame-of-reference (FOR) training

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CHALLENGES TO EFFECTIVE CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENTSPERFORMANCE MEASUREMENTS

The Influence of Liking ( Like The Influence of Liking ( Like and dislike) and dislike)

Precautions ( Record keeping) Precautions ( Record keeping) Organizational PoliticsOrganizational Politics Individual or Group FocusIndividual or Group Focus

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EMERGING TRENDS: MEASURING EMERGING TRENDS: MEASURING THE PERFORMANCE OF TEAMSTHE PERFORMANCE OF TEAMS Review existing measures to make sure the

team is aware of the measures and has commitment and responsibilities to achieve them.

Identify interim checkpoints at which team progress or achievements can be assessed.

Identify what the team and team members must do to achieve the desired team-level results.

Prioritize team goals according to relative importance.

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EMERGING TRENDS: MEASURING EMERGING TRENDS: MEASURING THE PERFORMANCE OF TEAMSTHE PERFORMANCE OF TEAMS Develop any needed measures of interim and

final team and individual performance. Develop team and individual performance

standards so that everyone has a clear understanding of performance expectations.

Determine how the performance management system will work. Who will be the raters? How will feedback be provided?

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CHALLENGES TO EFFECTIVE CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENTPERFORMANCE MEASUREMENT

Legal IssuesLegal Issues – – factors influencing judges’ factors influencing judges’ decisions in cases involving performance decisions in cases involving performance appraisalsappraisals

Use of job analysisUse of job analysis Providing written instructionsProviding written instructions Allowing employees to review appraisal resultsAllowing employees to review appraisal results Agreement among multiple ratersAgreement among multiple raters The presence of rater trainingThe presence of rater training

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MANAGING PERFORMANCEMANAGING PERFORMANCE

The The

AppraisalAppraisal

InterviewInterview

Helpful or Helpful or Dreadful??Dreadful??

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MANAGING PERFORMANCEMANAGING PERFORMANCE

Performance Improvement Exploring the causes of performance Exploring the causes of performance

problemsproblems Ability Ability Motivation Motivation Situational factors / system factorsSituational factors / system factors

Self, peer, and subordinate reviewsSelf, peer, and subordinate reviews 360-degree feedback360-degree feedback

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SITUATIONAL (SYSTEM) FACTORS TO CONSIDER IN SITUATIONAL (SYSTEM) FACTORS TO CONSIDER IN DETERMINING THE CAUSES OF PERFORMANCE DETERMINING THE CAUSES OF PERFORMANCE PROBLEMSPROBLEMS

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MANAGING PERFORMANCEMANAGING PERFORMANCE

Performance ImprovementPerformance Improvement Explore the causes of performance Explore the causes of performance

problems problems Direct attention to the causes of problems Direct attention to the causes of problems develop an action plan and empower develop an action plan and empower

workers to reach a solution workers to reach a solution Clarify performance expectation Clarify performance expectation Provide immediate feedbackProvide immediate feedback Eliminate unnecessary rules,procedures etc Eliminate unnecessary rules,procedures etc

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MANAGING PERFORMANCEMANAGING PERFORMANCE

Performance ImprovementPerformance Improvement Direct communication at Direct communication at

performance and provide effective performance and provide effective feedback. feedback. What is communicated What is communicated How it is communicated How it is communicated Open minded communication Open minded communication

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HOW TO DETERMINE ANDHOW TO DETERMINE AND REMEDY PERFORMANCE SHORTFALLS REMEDY PERFORMANCE SHORTFALLS

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CUSTOMER-DRIVEN HRCUSTOMER-DRIVEN HR

Give-and-Take! Tips for Better Performance ReviewsGive-and-Take! Tips for Better Performance Reviews Start with the raw dataStart with the raw data Make sure you are evaluating performance on Make sure you are evaluating performance on

appropriate dimensionsappropriate dimensions Beware of rating biasesBeware of rating biases Support ratings with written commentsSupport ratings with written comments Evaluate several or all of your people at one time, Evaluate several or all of your people at one time,

if possibleif possible Stick with performance and stay away from Stick with performance and stay away from

inferences about causeinferences about cause Be consistent across workersBe consistent across workers

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SUMMARY AND CONCLUSIONSSUMMARY AND CONCLUSIONS

What is What is performance performance appraisal?appraisal?

Identify Identify performance performance dimensionsdimensions

Measuring Measuring PerformancePerformance

Managing Managing PerformancePerformance

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April 11, 2023MAPP

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• Performance Dimensions should be appropriate to the employee’s role:

– For example, “coaching” would be relevant only to those responsible for managing and developing people

• Performance Dimensions should reflect Developmental Needs (either for the individual or department)

– These should represent relevant “stretch” goals

• Performance Dimensions should reflect areas in which focus will enhance overall business and employee performance

The Premise: Sharp focus on relevant Performance Dimensions

will improve business performance

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1 point each 3 points each 5 points each

Total points = 25 / 7 factors

= 3.57

Select 7 most frequently exhibited behaviours

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PRESENTATIONS SKILLSThis dimension rates an associate’s skills in organizing and delivering presentations

Under Developed Performing Excelling Disorganised or unprepared; presentations lack

focus or structure Does not listen to the audience; fails to adapt

presentation style where necessary Appears shy, nervous or scared while presenting Has personal habits and idiosyncrasies that get in

the way Voice is monotone; reads detailed presentations

without engaging the audience Rigid or inappropriate body language Loses focus or composure when interrupted

during a presentation

Presentations are well laid out, logical, havestructure and focus

Presentations are clear and concise Is capable of successfully presenting in small

groups and in large groups Commands attention of the audience Is able to read the audience and make necessary

adjustments to own style when something is notworking

Is able to handle negative or harassing audiencebehaviour without losing their composure

Varies volume and tone of voice and uses handsand body movements appropriately

Is able to present “hot” or controversial topics” tohostile audiences successfully

Expertly manages audiences reactions andchanges tactics smoothly

Able to elaborate clearly, concisely and logicallyon aspects of the presentation

Always commands the audiences’ full attention –uses voice, body movements, facial expressionsand pauses to maximum effect of the presentation

Overall message of the presentation is alwaysdelivered and retained by audiences

Expertly manages interruptions and questionswithout losing the flow of the presentation

Presentations always run within allotted time slot

1 point each 3 points each 5 points each

Select 7 most frequently exhibited behaviours

Total points = 27 / 7 factors

= 3.86

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CLIENT SERVICEThis dimension measures the degree to which associates in client-service roles add value to theirclients’ businesses.

Under Developed Performing Excelling Does not uncover client issues early Does not adequately monitor and track

progress against detailed account plansfor key clients

Focuses on fulfilling personal agenda,rather than clients needs

Does not fully understand the client’sneeds and requirements or NMR’scapabilities to deliver on clientexpectations

Makes unrealistic short and long termcommitments to clients

Delivers NMR products or services thatdo not meet client specifications and/ordelivers them in an untimely manner

Does not respond in a timely fashion toclient queries

Develops a full understanding of eachclient’s business to best package NMRofferings

Consistently demonstrates the value-added nature of NMR products andservices in proposals and presentations

Negotiates mutually beneficial contracts Wins incremental business from clients Regularly evaluates client satisfaction

and makes changes to service deliveryaccordingly

Troubleshoots problems such as delaysin turnaround time and qualitydeficiencies

Manages client expectations effectively

Serves as client advocate internally Demonstrates a passion for service by

consistently exceeding clientexpectations

Anticipates and consistently exceedsclient expectations for quality and timelydelivery of NMR products and services

Weighs risks and demonstrates couragewhen venturing into areas that areunchartered or uncertain

Proactively addresses critical clientissues before they become a problem

Uses both intuition and logic to developand articulate breakthrough ideas fromabstract concepts

Regarded by clients as a source ofinvaluable insight

1 point each 5 points each

Select 7 most frequently exhibited behaviours

Total points = 15 / 7 factors

= 2.14

3 points each

Assessing Performance Dimensions