Mastering Performance Appraisals

X420 Discussion Session # 50

Definition

Just exactly what is a performance appraisal?

What is it’s purpose?

What it is: Purpose: A report card for

employees and management

Goal setting tool Often misused tool for

determining salary adjustment

Dreaded activity for both employers and employees

To help the person being appraised to do better

To motivate employees Acknowledge a job well

done A way of showing that

management appreciates personal commitments

Problems with traditional appraisals:

Often point to excellent or poor employees, leaves out the vast middle ground

Employee rated by a single personPolitical or Personal ReasonsHalo effect

New Types of AppraisalsPeer ReviewsSelf-ReviewsUpward Assessments360 Degree Feedback (360 Review)

Peer ReviewPeers are asked to evaluate each others

performance, set goals, and objectivesPeers understand each others’ work and

air grievances in a non-threatening mannerReduces the amount of office politics and allows concentration on workWorks best if all parties know that the

reviews will NOT be used for setting pay, promotion possibilities, or disciplinary actions.

Self-ReviewsEmployees rate themselves on certain

criteria and suggest improvementsThey clarify their own goals and expose

areas of weakness Manager becomes more of a counselor

than a judgePeople may not see their own

deficiencies as others do, so this method needs to be used with another method to be effective

Upward AssessmentsUsually administered by outside

consultants with experience, needed skills, and an “objective outsider” image so people can open up to them without fear of reprisal.

Used at least every two years

360 Degree FeedbackMost costly type of appraisal Includes self ratings, peer review, and

upward assessmentsFeedback is sought from everyoneGives people a chance to know how

they are seen by othersHas high employee involvement and

credibilityHas strong impact on behavior and

performance

Management Mistakes Regarding Performance Appraisals

Focusing on and stressing the paperwork and forms.

Believing that a ratings based form of appraisal will serve as protection against lawsuits by employees.

Using an automated system

Under training or poorly training managers in the process of performance appraisal

Not training employees

One Size fits all fantasy

EMPLOYEE MISTAKES REGARDING APPRAISALS

Not preparing Beforehand

Defensiveness

Not Communicating During the Year

Not Clarifying Enough

Allowing One Sidedness

Focusing On Appraisal As A Way Of Getting More Money

Why have a Performance Management Process?

Clear Expectations of the Individual Aligned Goals Clear Performance Understanding Career Development Plan Plan for Individual Improvement in the

position Evaluate Corporate Resources (individuals) Individual Income Management Manage individual Expectations Open two-way Communication

What is Continuous Feedback?

Collect feedback from managers, peers, co-workers, customers, and suppliers to assess performance against goals, customer satisfaction, and developmental needs

Collected on an on-going basis via informal and formal means

Captures both what was achieved how was it accomplished

Benefits of Continuous Feedback

Collect specific, actionable information directly from individuals with whom employee works most closely. This information can be used to improve: individual performance

work processes

relationships with others

What is a Summary Discussion?

Leader and employee discuss: performance against goals summary of feedback collected, how those

learnings were applied strength/development area identification career growth (short and long term) development needs and plan

Formal documentation once per year (based on reviews during the year)

Actual Quotes

If you see two people talking and one looks bored…he is the other one

Brings a lot of joy…when leaving the room

This employee does not have ulcers…but is a carrier

Actual QuotesSince my last report, this employee has

reached rock bottom…and has started to dig

Sets low personal standards…and then constantly fails to achieve them

This employee should go far…and the sooner the better

If you give him a penny for his thoughts…you would get change

Takes two hours to watch "60 Minutes"

Actual QuotesThis employee is depriving a village

somewhere of an idiotA gross ignoramus…many times worse

than an ordinary ignoramus When his IQ reaches 50…he should sellDonated his brain to science…before he

was finished using it If he were any more stupid…he would

have to be watered twice a week.

Make Appraisals Right

Remember the following 6 basic steps

How to make appraisals right!

1. Be objective Everything we say should relate to the job

or job performance Don’t get caught up in personalities Judge the work, not the individual

How to make appraisals right!

2. Always base appraisals on goals and standards

Make sure employees know what you want and when you want it

Make the goals realistic and fair Get feedback from employees to make

sure they understand and then Make sure you have a way to measure

performance

How to make appraisals right!

3. Be honest Tell employees the truth about their

performance Don’t be brutal, but

don’t “sugarcoat” it either Be straightforward

and professional

How to make appraisals right!

4. Be consistent Use the same criteria that you have used

on all other reviews

How to make appraisals right!

5. Use accurate documentation Document everything Be very specific in everything that is

documented If it ends up in court, it can be the

difference between winning and losing

Performance Appraisals aren’t just another task….

….they deal with people’s lives and futures!

How you handle appraisals has huge impact on employees

Good appraisals really motivate good employees

Good appraisals can turn around employees who need help

Good appraisals help build good relationships

FactsBob’s work is excellentBob has shown the ability to take

on greater responsibilitiesBob is handsome Bob is well organized and a good

leaderBob works part-time

Inferences

Bob is not interested in promotion because he works part-time

Bob is interested in promotion because he does excellent work

Bob lacks confidence and is afraid to ask for full-time work and a promotion

How to make appraisals right!

6. Follow company policy Stick to the written policy Don’t make promises or threats

EvaluationUse:A. Strongly agreeB. AgreeC. DisagreeD. Strongly disagreeE. Don’t know

1. I found the presentation of material easy to understand.

2. This discussion session increased my knowledge on the subject presented.

3. I will be able to use some of the information from this discussion session in the future.

4. The presenter was well prepared for this discussion session.

5. This presentation should be repeated in future semesters.