Learning Objectives What managing performance involves Identify the benefits of performance appraisal Identify the types of performance appraisal and the

Learning Objectives

• What managing performance involves

• Identify the benefits of performance appraisal

• Identify the types of performance appraisal and the

processes involved

Slide Content Acknowledgement: Dr. Ana-Cristina Costa

Recruitment & Selection

Training and development

Reward management

Performance appraisal

Job description(skills &

behaviours required)

Strategy

Structure

Values


Recruitment & Selection

Training and development

Reward management

Performance appraisal

Job description(skills &

behaviours required)

Strategy

Structure

Values


Concepts:

• Performance Appraisal (PA) Process of evaluating an

employee’s current and/or past performance relative to his

or her performance standards.

• Performance Management (PM) Systematic approach to

link organizational strategy to employees performance

through the integration of activities that assess, appraise,

develop and reward employees.


Performance Management

• … is broader than PA. It starts with a look at the goals and

strategy of the organization in order to develop a variety of

interlinked processes/practices that involve assessment and

development of an individual and their performance at work,

both in terms of their existing effectiveness and their

potential for advancement.


Link between Strategy, Outcomes,and Organizational Results


Why Performance Management (1)

The belief that traditional performance appraisals are often

not just useless but counterproductive.

The necessity in today’s globally competitive environment

for every employee’s efforts to focus on helping the

company to achieve its strategic goals.

The popularity of the total quality management (TQM)

concepts.


Why Performance Management (2)

• Need for Continuous improvement:

– In order to achieve the market demands, costumer

requirements…

• Requiring each employee to continuously improve his or

her own personal performance, from one appraisal period

to the next


Purpose of PM

• To make administrative decisions concerning pay,

promotions and careers, and work responsibilities Control

purpose

• To improve performance through discussion of development

needs, identifying training opportunities and the planning of

action Development purpose

Research purpose


Maybe et al. (1998)

• Research has shown that organizations with strong

performance management systems in place

– Show increased profitability

– Reduced attrition -> conflict

– Higher levels of engagement/employee commitment

– Receive higher satisfaction ratings on customer survey


Why Appraise Performance?

• Appraisals play an integral role in the performance

management process;

• Appraisals help in planning for correcting deficiencies and

reinforce things done correctly.

• Appraisals are useful in identifying employee strengths and

weaknesses and for career planning

• Appraisals affect the employer’s salary raise decisions.


Participants

• The Employee

• Supervisor (line manager)

• HR Department - personnel adviser, Head of

Department, etc…

• Others: Customers, colleagues, etc


Employee

• Every employee should:

– Know the job requirements to perform his/her job

successfully

• know what to, and what not to, do

– Responsible for their own performance

– Train and develop new KSAs that are required for job

performance


Supervisor

• Usually does the actual appraising.

• Must be familiar with basic appraisal techniques.

• Must understand and avoid problems that can cripple appraisals.

• Must know how to conduct appraisals fairly.– Give the employee advance notice– Give the employee an advance copy of the appraisal

• Must BE PREPARED.– Review prior performance appraisals– Review any notes taken regarding employee’s performance– BE FAMILIAR with the employee’s job

• What projects they are working on, etc.


HR - Department

• Serves a policy-making and advisory role.

• Provides advice and assistance regarding the appraisal tool to

use.

• Prepares forms and procedures and makes sure that all

departments use them.

• Responsible for training supervisors to improve their appraisal

skills.

• Responsible for monitoring the system to ensure that appraisal

formats and criteria comply with Employment/Labour laws and

are up to date.Slide Content Acknowledgement: Dr. Ana-Cristina Costa

Appraising Tools

• What to measure?

– Work output (quality and quantity) ->(Productivity)

– Personal competencies

– Goal (objective) achievement

– Contributions, effort

• How to measure it?

– Self-rating or Supervisor - Rating scales

– Multiple source rating

• 3600 degrees feedback -> supervisor, colleagues, costumers, etc.

– MBO/SMART


Rating Scales

• Scales that lists a number of traits and a range of

performance for each that is used to identify the

score that best describes an employee’s level of

performance for each trait.


Portion of an Administrative Secretary’s Sample Performance Appraisal Form

Source: James Buford Jr., Bettye Burkhalter, and Grover Jacobs, “Link Job Description to Performance Appraisals,” Personnel Journal, June 1988, pp. 135–136.


Performance Management Outline

Performance Management Outline

© 2005 Prentice Hall Inc. All rights reserved.



Performance Management Outline(cont’d)

Performance Management Outline(cont’d)




Performance Management Outline (cont’d)

Performance Management Outline (cont’d)




Behaviorally anchored rating scale (BARS)

An appraisal method that uses quantified scale with specific

narrative examples of good and poor performance.

• Developing a BARS:

– Generate critical incidents

– Develop performance dimensions

– Reallocate incidents

– Scale the incidents

– Develop a final instrument


• Advantages of using a BARS

– A more accurate gauge

– Clearer standards

– Feedback

– Independent dimensions

– Consistency


Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skill

Figure 9–9

Source:Walter C. Borman, “Behavior Based Rating,” in Ronald A. Berk (ed.), Performance Assessment: Methods and Applications (Baltimore, MD: JohnsHopkins University Press, 1986), p. 103.


Potential Rating Scale Appraisal Problems

• Unclear standards

– An appraisal that is too open to interpretation.

• Halo effect

– Occurs when a supervisor’s rating of a subordinate on

one trait biases the rating of that person on other traits.

• Central tendency

– A tendency to rate all employees the same way, such as

rating them all average.


Management by Objectives

• Is a PM system in which;

- performance objectives are jointly determined by both

employees and supervisors

- progress towards the objectives is periodically reviewed

- rewards are allocated on the basis of this progress.


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Employees should see alignment from their own goals with the Organization goals

Mission

ValuesStrategy

Priorities

KSAs & Behavior

Major Responsibilities & Priorities

Performance Management Process


Management by Objectives-SMART

• MBO - Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.1. Set the organization’s goals.2. Set departmental goals.3. Discuss departmental goals.4. Define expected results (set individual goals).5. Performance reviews.6. Provide feedback.

• Biggest problem with MBO’s is when they are vague or unclear


SMART Goals

• Specific – Enough detail do that employee and supervisor

understand and agree on the goal

• Measurable- Establish criteria so that employee and supervisor

know when/how the goal is completed

• Attainable – The employee can reasonably expect to

accomplish the goal taking into account work circumstances.

• Relevant – Accomplish the task contributes to the work unit

goals and objectives.

• Time-Framed – Describes when the work is done: daily, weekly,

monthly, etc… Slide Content Acknowledgement: Dr. Ana-Cristina Costa

Performance Management When?

• PM is a continuous process

• Effective appraisals should occur frequently

– But in practice some times only once a year

– Important to make sure that appraisals are measured,

documented and can be shown to match the Job

Expectations

• It should not be a surprise when an employee has his or her

own appraisal

• Essential for coaching and motivation of the employee


PM Continuous Cycle


Phase I

Set Goals

• Establish link between organizational, department, team

and individual objectives

• Create mutually agreed goals (Targets)

• Make goal statements SMART (Specific, Measureable,

Achievable, Relevant and Time-phased)


Phase II

Track Performance

• Discuss development of employee’s work-related skills,

knowledge and experience

• Use Coaching Model: Identify need, coach and provide

support -> Training

• Base the development plan on both organizational and

individual needs


Phase III

Analyze Results

• Observe and record the employee’s performance on the

agreed targets

• Recognize accomplishments

• Resolve performance problems

• Compare results to agreed upon standards (Goals/Targets)

• Common metrics: cost, quality, quantity, time


Phase IV

Review & Renew

• Ask for the employee’s perspective

• Prepare performance documents

• Conduct the performance

• Identify needs, provide opportunities for training and

provide support continuously


The Appraisal Interview

• The discussion should:

– Develop in terms of objective work data.

– Not get personal.

– Encourage the employee to talk.

– Not avoid difficult topics.


The Appraisal interview (cont’d)

• How to handle a defensive subordinate:

– Recognize that defensive behavior is normal.

– Never attack a person’s defenses.

– Postpone action.

– Recognize your own limitations.

• You are their boss – not their shrink


Appraisal Interview (cont’d)

• How to ensure the interview leads to improved performance

– Don’t make the subordinate feel threatened during the

interview.

– Give the subordinate the opportunity to present his or her

ideas and feelings and to influence the course of the interview.

– Have a helpful and constructive supervisor conduct the

interview.

– Offer the subordinate the necessary support for development

and change.


Understand the Different Circumstances

• Sick-leave and absenteeism

• People at work that do not perform

• Higher vs. Lower performers.

– Raising performance expectations and standards

– Remove barrier to higher performance


Effective Performance Management Discussions

• Goals are a critical part of the performance management

process

• Individual goals must be linked to overall organizational

goals. Employees must see the linkage.

• Even when performance standards are preset, goal setting

conversations still need to occur.

• Goals should be S M A R T (Specific, Measureable,

Achievable, Relevant and Time-phased)


(cont’d)

• Define job-mastery and career development goals as part of the

process, so that it is very clear how the current position supports

employee growth and the additional opportunities the employee needs

to explore.

• Promote flexibility, through regular check-in discussions, which include

status updates, coaching, and feedback, that identify problems earlier

on and change the course of a project or work assignment.

• Give effective feedback

• Be proactive rather than reactive

• Look for opportunities to catch people doing things right


Managing Problem Performance

• Do not ignore challenges of not meeting the standards:• Discussing areas of concern• Setting targets and timescales for improvement• Agreeing appropriate training and support

• Informal performance review (manager + employee)• Formal performance review (manager + employee + HR

practitioner)


Case Study

The Light Machine Shop (Banfield & Kay: pg. 291)

Further Reading

Banfield, P. and Kay, R. (2008) Introduction to Human Resource

Management, Oxford University Press. Pages, 269 – 293.


Documents

Learning Objectives What managing performance involves Identify the benefits of performance appraisal Identify the types of performance appraisal and the