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Performance Appraisal Prof. Dr. Armin Trost HFU Business School
| Date post: | 13-Sep-2014 |
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Business |
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Performance Appraisal
Prof. Dr. Armin TrostHFU Business School
2Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Traditional Performance Appraisal
ObjectivesReview
Overall Objectives Between an employee and his/her immediate supervisor
Leads to decisions and judgments
Common approach across levels and functions
Supervisor is in the leading position
It‘s a system – not an event
Central system-owner (usually HR)
Mid-year Review
3Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Interfaces to other HR-related Processes
Performance Appraisal
Talent-management
Compensation
Learning
Out-placement
Balanced Scorecard
Employee Retention
4Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Focus on Tool versus Results
Tool Design Conditions Results
?
Results Conditions Tool Design
5Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Intended Results
Retain employees
Motivate through
objectives
Management by objectives
Develop employees
Treat low-performers
Identify potential
Track suitability
Offer perspectives
Reward high-performers
Learn through
feedback
Judgements & Decisions
6Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Principal, Customer, and the Role of HR
Ex
E
HR
M
A
HR
E
Ex
M
B
E
Ex
C
HRM
Ex
M
E HR
D
Executive Board (Ex), Manager (M), Employees (E)
7Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
The man who gives Flowers to his Wife
Intrinsically motivated behavior
Policy BehaviorAttribution to
extrinsic motivation
Behavior not valued
8Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Relevand Conditions
Employee-Organization-Relationship
Employee-Supervisor-Relationship
Employee-Work-Relationship
9Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Agility of Work
low
high
lowhigh
certainty of results
certainty of process
large
project
small
B
ED
A
C
Scope
10Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Task Interdependance
D
A
B
E
C
strong effect
weak effect
11Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Task Dynamics (Sensitivity Model)
strong
weak
strongweak
Reaction
Influence
reactive critical
activebuffering
neutral
AB
E D
C
12Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
13Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
14Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Roles of supervisors
Boss
Enabler
CoachPartner Employee
15Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
„The role of judge and the role of counselor are incompatible
-- Douglas McGregor
Source: McGregor, D. (1960). The human side of enterprise. New York: McGraw-Hill.
16Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Social Judgement Process
Criterion interpretation
Recall relevant memory content
Initial judgement
Anticipation of consequences
Judgement communication
Required adjustment
Judgement available?
yes
no
17Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Employee-Organization-Relationship
Autonomy/self-control
Professionalindependence
Socialcollaboration
18Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Employee-Organization-Relationship
Autonomy/self-control
Professionalindependence
Socialcollaboration
A
Autonomy/self-control
Professionalindependence
Socialcollaboration
B
19Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Two extreme Worlds
Hierarchy Agility
Agility low high
Dynamic low high
Supervisor role Boss Partner/Coach
Autonomy/self-control low (top-down) high (bottom-up)
Social collaboration individual linked teams
Professional independence low high
20Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Traditional Performance Appraisal in both Worlds
Hierarchy Agility
Reward high-performers
Tread low-performers
Identify potential
Track suitability
Offer perspectives
Learn through feedback
Develop employees
Management by objectives
Motivate through objectives
Retain employees
21Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
From hierarchical to agile Design
Hierarchy Agility
All at once Focused & separated
Individual Social
Manager/HR-driven Customer/employee driven
Long/annual cycles Short cycles
Focus on company‘s
requirements
Focus on company‘s and
employees‘ expectations
Quantiative & structured Qualitative & open
Owned by HR/executive board Owned by employees/teams
22Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Performance Distribution
Performance
C B AF
req
uen
cy
23Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Learning
individual learning
from managers & trainers
off-the-Job
planned
formal
ordered
long cycles
requirements
learning transfer
social learning
from and with others
on-the-Job
on demand
informal
employee driven
short cycle
curiosity & uncertainty
work = learning
Hierarchy Agility
24Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Talent Identification
Employee
Target Position
Decider
Supervisor
Talent Manager
Employee
Decider
Target Position
25Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Feedback in Hierarchies
...
Client
26Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Agile Feedback
Customer Teams Enabler
27Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
Summary
It‘s a system – not an one-time incident
First, think about results – not about the tool
Be clear about who the customer is
Consider internal conditions – organization, supervision and work
Even under hierarchical conditions performance appraisal does did not fully work
In an agile environment traditional performance appraisal does not work
Agility requires focused, social, open approaches, driven by employees and customers
