performance appraisal basics mana 4328 dr. jeanne michalski [email protected]
TRANSCRIPT
Why Conduct Performance Appraisals?
Performance Appraisal Programs
Performance Appraisal A process, typically performed annually by a
supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
Performance Management The process of creating a work environment in which
people can perform to the best of their abilities.
Performance Ethic
High-performing companies place a premium on setting demanding standards and measuring performance against those tough-minded goals. Specifically, they: Have a mission Have challenging goals and clear accountability Are excellent at performance feedback Apply consequences, both positive and negative, to individual
performance
(McKinsey & Company, 1999)
Setting Objectives
Coaching Performance
Developing Capability
Assessing Performance
Providing Feedback
Performance Management Cycle
Planning Performance for the Upcoming Period Defining key results/expectations for each position (usually 5-
8) that support the organization’s business strategy Establishing performance standards against which key result
areas will be measured May assign a weight to each key result since all key results
are NOT equal – adds complexity Coaching Performance and Giving Feedback Throughout
the Period Structured feedback like mid-period, quarterly, or monthly
progress reviews Informal feedback throughout the process
Performance Management Cycle continued
Rating Performance for the Just Completed Period One of the most challenging aspects is the approach for
rating employee performance
Developing an Appraisal System
GOAL SETTING
TYPE OF APPRAISAL
ADMINISTRATION
PERFORMANCE AND PAY
Legal Issues
Appraisal systems are more defensible if they:
Challenges for Performance Measurement
Rater errors and bias Halo Contrast effects Range restriction / Central tendency The influence of liking/similar to me
Rater errors can be addressed by training
Appraisal Forms
“Least important elements of the appraisal process” Appraisal forms most often contain various styles
Approaches to Appraisal Forms Trait Behavior Results / Outcomes Global / Essay
Trait-Based Appraisals
Characteristics that are enduring and general e.g. “Leadership” “Communication” “Decisiveness”
Competency models vs. Trait-based appraisal Are the characteristics really related to
performance?
Potential Problems Focus on person rather than performance May be ambiguous or arbitrary Poor feedback and goal setting Poor reliability and validity
“An employer has no business with a man’s personality. Employment is a specific contract calling for specific performance and nothing else. Any attempt of an employer to go beyond this is usurpation. It is an abuse of power. An employee owes no “loyalty,” he owes no “love,” and no “attitudes” – he owes performance and nothing else.”
Peter DruckerManagement Tasks, Responsibilities, Practices (1974)
Behavior-Based Appraisal
Focus on specific behaviors with examples1. Behavioral Frequency / Observation Scale (BOS) 2. Behaviorally Anchored Rating Scales (BARS)
Positives More valid and reliable Acceptable to employees Better for development and improvement
Developing Behavioral Scales
1. Identify critical incidents and behaviors
2. Sort similar behaviors into dimensions
3. Validate sorting
4. Collect data on relationship between behavior and performance
5. Assign a rating scale
6. Validate the scale
Behavior-Based Appraisal
Potential Problems Difficult and expensive to develop Needs to match jobs closely to be effective Behaviors may be hard to develop and interpret Emphasizes behaviors (at the expense of others?) Focuses on behavior rather than results May be no more reliable and valid than simple scale
Process of developing the rating system is more important than the system itself.
Results-Based Appraisal
Uses future results as performance targets
Challenge is setting goals and measures Can the goals be quantified? Unique goals for every individual
Appraisal forms tend to be very simple
Still need a rating scale
Results-Based Appraisal
Focus on results compared to specific goals Should be clear and unambiguous Requires alignment of expectations May promote gaming of the system Beware of results at any cost and excessive results
orientation Time consuming and needs constant updating
How to Judge Appraisal Types
Leads to desired behaviors Minimizes negative behaviors Reliability and validity Perceived fairness (rater and employee) Performance improvement and employee development Flexibility and administrative cost
Comparison of Appraisal Forms
Ease of UseEmployee
DevelopmentLegal
Defensibility
Traits High Low Low
Behaviors Medium High High
Outcomes Low Medium Medium
Comparison of Appraisal Forms
Ease of UseEmployee
DevelopmentLegal
Defensibility
Traits High Low Low
Behaviors Medium High High
Outcomes Low Medium Medium
Key Questions to Consider When Receiving Feedback Do I understand it? Is it accurate/valid? Is it important? Do I want to change?
At its heart feedback is only information. How you choose to think and feel about the feedback will determine the value you gain from it.
Possible Reactions To Feedback
DENIAL
ANGER / FLIGHT
WITHDRAWAL
ACCEPTANCE
ANALYSIS
ACTION PLANNING
360 Degree Feedback
Evaluation method that incorporates feedback from the: worker, his/her peers, supervisors, direct reports, and customers.
Results of these confidential surveys are tabulated and shared with the worker.
Interpretation of the results, trends and themes are discussed as part of the feedback.
360 Degree Feedback
360 Successful in Organizations When: Organizational climate fosters individual growth Proper framing of feedback method by management Assurance that feedback will be kept confidential Development of feedback tool based on organizational goals and
values Feedback tool includes area for comments Brief workers, evaluators and supervisors about purpose, uses of
data and methods of survey prior to distribution of tool Train workers in appropriate methods to give and receive feedback Support feedback with back-up services or customized coaching
360 Degree Feedback Errors
Feedback tied to merit pay or promotions Comments traced to individuals causing resentment
between workers Feedback not linked to organizational goals or values Use of the feedback tool as a stand alone without
follow-up Poor implementation of 360-degree tool negatively
affects motivation Excessive number of surveys are required of each
worker with few tangible results provided to individuals
Recommended 360 Degree Process
Leaders invite direct reports to evaluate them (if less than 5 direct reports, include second level direct reports)
Direct reports rate the leader through a survey tool (often web-based)
Outside consultant analyzes data and generates reports
Leaders and human resources consultant receive feedback report & have opportunity discuss results
Leaders give feedback to their direct reports through a facilitated high performing team session
Leaders create preliminary development plan and discuss with their supervisor