Appraising

Performance

Purpose of Performance Appraisal The main focus of performance appraisal is: improving organisation performance by focusing

on individual effort and by developing them

The other purpose of a performance appraisal is: to communicate to the employee how

management views his/her productivity, based on job specifications.

to provide a forum for an exchange of information and input between employer and employee.

Performance Appraisal Purpose: improve organisational

performance How: regular discussions

between individual & manager Where: at the work place When: continuous; often at half

yearly or yearly interval By Whom: employee's supervisor and

the employee

What is it for?The underlying purpose of performance management is to improve

the utilisation of staff resources by:

assigning work more efficiently improving job placement validating selection procedures and evaluating training programs recognizing potential for development to managerial positions identifying training needs fostering a better working relationship between subordinate and

supervisor fostering a better working relationship between work units assisting employees in setting career goals fostering improvements in work performance meeting employees' needs for growth keeping employees advised of what is expected of them

It is also to provide a basis for such personnel actions as: Periodic appraisal promotion based on merit recognition and rewards for past

performance review at completion of a probationary

period warning about unacceptable performance

What does it need? a precise summary of the individual's

agreed contribution to the organisation performance for the year

knowledge of what the individual has achieved in the past period

knowledge of the way the individual performs his/her tasks/duties

Designing an effective system of appraisal The process of designing an appraisal system

should ideally involve incumbents, supervisor, clients, peers, customers and HR professionals in making decisions about each of the following issues:

measurement content measurement process defining the rater (i.e. who should rate the

performance) defining the ratee (i.e., the level of performance

to rate) administrative characteristics.

The Appraisal Process An appraisal involves:

Setting work standards Assessing actual performance vs. these

standards Providing feedback to the employee

Why Appraise Performance? Appraisals provide information for

promotion and salary decisions Provides opportunity to review an

employee’s work related behavior with the goal of correcting deficiencies

Is part of the career-planning process Appraisals help manage and improve

your firm’s performance

The Supervisor’s Role Must be familiar with basic appraisal

techniques

Be candid but fair when delivering bad news

HR will often outline guidelines but leave implementation to supervisors

Steps in Appraising Performance

Define the Job

Appraise Performance

ProvideFeedback

Make sure allagree on duties

Compare performance

to the standardDiscuss

progress &make plans

Manage Expectations Job descriptions are usually written for a

group of jobs leaving many aspects of a job without specific goals

Quantify expectations with explicit goals for each expectation

Employee should know basis of appraisal ahead of time

Appraisal MethodsGraphic rating scale: a scale that lists a number of traits and a

range of performance for each. The employee is then rated by identifying the score that best describes the level of performance for each trait.

Quality - 1-5 Productivity - 1 - 5

Appraisal MethodsAlternation Ranking Method: Ranking employees from best to worst on

a particular trait, choosing highest then lowest till all are ranked.

A particular traitRanking

Appraisal MethodsPaired Comparison Method: Ranking employees by making a chart of

all possible pairs of the employee for each trait and indicating which is the better of the employee.

Appraisal MethodsForced Distribution Method: Similar to grading on a curve;

predetermined percentages of ratees are placed in various performance categories.

Appraisal Methods Critical incident method Keeping a record of uncommonly good or

undesirable examples of an employees work related behaviour and reviewing it with the employee at the predetermined time.

Narrative Forms Final appraisals are frequently in a

written narrative form Supervisor rates employee’s:

Performance factor or skill Give examples & an improvement plan Explains good & bad performance areas

Behaviorally Anchored Rating Scales

BARS combine best features of narrative, critical incidents, and quantified scales in five steps

Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument

BARS for Grocery Clerks Researchers developed a BARS for grocery clerks

by collecting critical incidents in 8 areas (rating scale given below):

•Knowledge and judgment

•Conscientiousness

•Skill in human relations

•Skill in operation of register

•Skill in bagging

•Ability of checkout work

•Skill in monetary transactions

•Observational ability

Extremely Poor Poor Average Good Extremely Good1 9

Advantages of BARS A more accurate gauge of performance Clearer standards – critical incidents

along the scale make it clear Feedback – its easier to explain ratings

to appraises Independent dimensions – clustering

critical incidents make dimensions more independent

Consistency – different raters appraisals of same individual are similar

Management by ObjectivesMBO refers to a organizational 6 step goal setting and appraisal program

Set theorganization’s

goals

Set thedepartmental

goals

Discussdevelopmental

goals

Defineexpected

results

Performancereviews

Providefeedback

Dealing With Rating scale Appraisal Problems Unclear standards – use of words like “good” or

“fair” on appraisals

Halo effect – one trait affects all ratings

Central tendency – everyone’s in the middle

Leniency or strictness – no middle

Bias – characteristics affect rating

Research Insight One study showed appraisal reviewers rated the

same woman differently when only difference was pregnancy

It demonstrates that outside biases can influence ratings

Men and women raters act differently; many things influence how a review is conducted

How to Avoid Appraisal Problems Learn and understand the problems Use the right appraisal tool Train supervisors Reduce outside factors: time constraints,

union pressures & turnover Keep a diary of critical incidents

Legal Issues in Appraisals Inadequate appraisal systems often lie at the root

of discriminatory layoffs, promotions, discharges or merit pays

They are arguable if appraisals are: Based on subjective observations Not administered and scored consistently Based on evaluators who did not have daily contact

Who Does the Appraising? Peers Your Boss Rating committee Subordinates You

360o Appraisals

360o assessments evolved from upward feedback appraisals

One study: 29% use it with 11% planning to add multi-source assessments

Great deal of paperwork

The Appraisal Interview Appraisal interview - an interview in

which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

Adequate preparation and effective implementation are therefore essential.

Three Appraisal Types/Objectives

Appraisal Type The Objective

Performance is satisfactoryEmployee promotable

SatisfactoryNot promotable

UnsatisfactoryCorrectable

Make developmentPlans

MaintainPerformance

Take correctiveAction

Keep These in Mind When Conducting the Interview Be direct and specific - talk in terms of objective work data

Don’t get personal - “You’re too slow in producing those reports.”

Encourage the person to talk - stop and listen to what the person is saying

Don’t tiptoe around - make sure the person leaves knowing exactly what they are doing right and wrong

A Defensive Subordinate Understanding and dealing with defensiveness is

an important appraisal skill Defensive behavior is normal Never attack a person’s defenses Sometimes it is best to do nothing at all

Recognize your own limitations – don’t expect to be able to solve every problem that arises

Provide examples

Avoid yearly “critical broadsides” by giving frequent feedback

No real surprises at formal appraisal

Criticism should be objective

Use Constructive Criticism

How to Insure Improved Performance Set improvement goals

Establish comfort

Allow employee influences

Provide constructive information

Most Commonly Used Appraisal Methods

32%

24%

34%

10% 0% MBOGraphic ratingEssayOtherBehavioral

Society for Human Resource Management reports about 89% of surveyed managers use performance appraisal for all their employees

Do Appraisals Really Help?

Traditional appraisals may be counterproductive

One study showed 32% rated appraisals ineffective; 4% rated them effective