HUMAN RESOURCEHUMAN RESOURCE

What is appraisal?What is appraisal?What is What is

assessment?assessment?

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003 Theory and Practice, Palgrave, 2003 http://www.palgrave.com/business/brattonandgold/

Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006Edited by Fabio Emanuele Noia, Link Campus University of Malta, 2006

Chapter 8 Chapter 8

Appraisal and PerformanceAppraisal and Performance

AppraisalAppraisal________________________

A process that A process that provides an analysis of provides an analysis of

a person’s overall a person’s overall capabilities and capabilities and

potential, allowing potential, allowing informed decisions to informed decisions to be made for particular be made for particular

purposes.purposes.

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AssessmentAssessment________________________

An important part of An important part of the appraisal process, the appraisal process,

whereby data on an whereby data on an individual’s past and individual’s past and

current work, behavior current work, behavior and performance are and performance are

collected and reviewed.collected and reviewed.

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PMSPMS______________________

Integrated Performance Integrated Performance Management Systems, Management Systems,

often based on a often based on a competency framework, competency framework,

provide vital data for provide vital data for rational, objective and rational, objective and

efficient decision making efficient decision making relating to improving relating to improving

performance, identifying performance, identifying training needs, managing training needs, managing careers and setting levels careers and setting levels

of reward.of reward.

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Purpose of appraisal Purpose of appraisal ________________________

•Improve individual performanceImprove individual performance•Improving motivation and moraleImproving motivation and morale•Clarifying expectations and Clarifying expectations and reducing ambiguity about reducing ambiguity about performanceperformance•Determining rewardsDetermining rewards•Identifying training and Identifying training and development opportunitiesdevelopment opportunities•Improving communicationImproving communication•Selecting people for promotionSelecting people for promotion•Managing careersManaging careers•CounsellingCounselling•DisciplineDiscipline•Planning remedial actionsPlanning remedial actions•Setting goals and targetsSetting goals and targets

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Features of Performance Features of Performance managementmanagement________________________

•Objective setting and reviewObjective setting and review•Annual appraisalAnnual appraisal•Personal development planPersonal development plan•Self appraisalSelf appraisal•Performance related payPerformance related pay•Coaching/mentoringCoaching/mentoring•Career managementCareer management•Competence assessmentCompetence assessment•Twice-yearly appraisalTwice-yearly appraisal•Subordinate appraisalSubordinate appraisal•Continuous assessmentContinuous assessment•Rolling appraisalRolling appraisal•360° appraisal360° appraisal•Peer appraisalPeer appraisal•Balanced scorecardsBalanced scorecards

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Main Purpose of appraisalMain Purpose of appraisal________________________

1.1. The making of The making of administrative decisions administrative decisions concerning pay, promotions concerning pay, promotions and careers, and work and careers, and work responsibilities – the responsibilities – the judgement purposejudgement purpose

2. 2. The improvement of The improvement of performance through the performance through the discussion of development discussion of development needs, identifying training needs, identifying training opportunities and the opportunities and the planning of action – the planning of action – the development purposedevelopment purpose

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Findings (Meyer et al., 1965)Findings (Meyer et al., 1965)________________________

•Criticism often has a negative Criticism often has a negative effect on motivation and effect on motivation and performanceperformance•Praise has little effectPraise has little effect•Performance improves with Performance improves with specific goalsspecific goals•Participation by the employee in Participation by the employee in goal-setting helps to produce goal-setting helps to produce favorable resultsfavorable results•Interviews designed primarily to Interviews designed primarily to improve performance should not improve performance should not at the same time weigh salary or at the same time weigh salary or promotion in the balancepromotion in the balance•Coaching by managers should Coaching by managers should be day to day rather than just be day to day rather than just once a yearonce a year

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Multisource Multisource feedbackfeedback

________________________

Feedback is received Feedback is received from all around a job from all around a job

(360°) allowing for (360°) allowing for more balance and more balance and objectivity than a objectivity than a

single view from a line single view from a line manager (cost manager (cost

increases)increases)

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CompetenciesCompetencies

________________________

Competencies have Competencies have also been seen as a also been seen as a

way of facilitating the way of facilitating the review process, linking review process, linking personal development personal development

plans (PDPs) to plans (PDPs) to strategy and to pay.strategy and to pay.

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CriticismCriticism________________________

•Employees are able to accept Employees are able to accept criticism if it is useful and criticism if it is useful and relevant to them and the work relevant to them and the work they are doing.they are doing.•Feedback provides a chance of Feedback provides a chance of improving performance and an improving performance and an opportunity of continuing opportunity of continuing dialogue between managers and dialogue between managers and employees out of which will employees out of which will emerge a joint understanding of emerge a joint understanding of individual development needs individual development needs and aspirations.and aspirations.•Continuous appraisal will work Continuous appraisal will work better.better.

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A control paradigmA control paradigm________________________________

Define workDefine work

Set measurable targetsSet measurable targets

PerformPerform

Assess against targetsAssess against targets

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EffectivenessEffectiveness

Some of the research evidence Some of the research evidence has indicated that the reality of has indicated that the reality of

appraisal may be less than appraisal may be less than effective. effective.

The problem may be due to the The problem may be due to the way in which appraisal way in which appraisal

processes are formulated, based processes are formulated, based on an explicit or implicit on an explicit or implicit

performance control orientation.performance control orientation.

May contrast with high trust-May contrast with high trust-high commitment-high high commitment-high

productivity of High productivity of High Performance paradigm of HRMPerformance paradigm of HRM

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From control to developmentFrom control to development________________________

The crucial contribution The crucial contribution towards creating towards creating

commitment, pride and trust commitment, pride and trust is, however, management’s is, however, management’s

devotion to nurturing a devotion to nurturing a culture that supports the culture that supports the long-term development of long-term development of

people (Gratton, 1997).people (Gratton, 1997).

Assessment and appraisal Assessment and appraisal can serve as the fulcrum of can serve as the fulcrum of

such a process, while such a process, while accomodating for control accomodating for control

needs.needs.

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Alternatives to get useful informationAlternatives to get useful information

• The performance of work task can The performance of work task can be presented as a relationship be presented as a relationship between means (attributes, skills, between means (attributes, skills, knowledge, attitudes applied to knowledge, attitudes applied to tasks) and ends (results, tasks) and ends (results, measurements, standards) - Ouchi, measurements, standards) - Ouchi, 1979.1979.

• Between means and ends lies the Between means and ends lies the behavior of the individual in a behavior of the individual in a transformation process.transformation process.

• Through attention to the behavior Through attention to the behavior of an employee in the of an employee in the transformation process data can be transformation process data can be provided for a whole gamut of provided for a whole gamut of develomental decisions over time, develomental decisions over time, starting with adjustments to reach starting with adjustments to reach minimum Standard and then minimum Standard and then addressing career changes and addressing career changes and progression.progression.

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Developmental decisionsDevelopmental decisions

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Job or Career changes or progression

Changing tasks and standards

Future task issuesImmediate task

issues

Managing control and Managing control and develoment paradox (Ouchi, develoment paradox (Ouchi,

1979)1979)

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Behavior Behavior or outputsor outputs

OutputsOutputs

Behavior Behavior Inputs Self Inputs Self Multisources Multisources CompetenciCompetencieses

HIGHHIGH

Ability to Ability to measure measure outputsoutputs

LOWLOW

Knowledge of the transformation Knowledge of the transformation processprocess

PERFECT IMPERFECTPERFECT IMPERFECT

To reconcile the To reconcile the opposite needs of opposite needs of

control and control and development PMSs development PMSs

have been developed, have been developed, strategically integrated strategically integrated with HRM processes.with HRM processes.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Best value framework Best value framework in public sector in public sector

(customer/citizen (customer/citizen oriented – quality oriented – quality driven approach):driven approach):

•Strategic objectivesStrategic objectives•Cost/efficiencyCost/efficiency•Service delivery Service delivery outcomeoutcome•QualityQuality•Fair accessFair access

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Goal setting and Goal setting and development need development need

diagnosisdiagnosis

The attitude of The attitude of management are management are

crucial as they are the crucial as they are the key actors in the key actors in the

implementation of the implementation of the various HR processes.various HR processes.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

PMSPMSA PMS might A PMS might incorporate a incorporate a

development center development center (same as assessment (same as assessment

centers), a centers), a performance performance

development plan development plan (PDP), and goal (PDP), and goal

setting.setting.

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Performance Management CyclePerformance Management Cycle

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Ongoing Ongoing support support coaching coaching trainingtraining

Performance and Performance and Development Development PlanPlan

First ReviewFirst Review

Second ReviewSecond Review

Third ReviewThird Review

End of year End of year review review including including multisource multisource appraisalappraisal

Forms of appraisalForms of appraisal

• Top DownTop Down

• UpwardUpward

• Peer to PeerPeer to Peer

• 360°360°

• SelfSelf

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

Performance RatingsPerformance Ratings

• Inputs (dependability, Inputs (dependability, loyalty, decisiveness, loyalty, decisiveness, resorcefulness and stability resorcefulness and stability – difficult to define, low – difficult to define, low reliability)reliability)

• Results and outcomes Results and outcomes (production, sales, satisfied (production, sales, satisfied costomers, … more costomers, … more objective)objective)

• Behavior in performance Behavior in performance (“give praise to (“give praise to employees”, …. rated from employees”, …. rated from excellent to unacceptable)excellent to unacceptable)

Freely Inspired from Bratton J., Gold J., Human Resource Management, Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003Theory and Practice, Palgrave, 2003

ExerciseExercise

Appraisal and performance in University Appraisal and performance in University education.education.

• Is the appraisal process effective and Is the appraisal process effective and fair?fair?

• What are the main appraisal problems?What are the main appraisal problems?

• How might you suggest improving the How might you suggest improving the appraisal process?appraisal process?