The Appraisal System. Concepts of Appraisal

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The Appraisal System. Concepts of Appraisal
Appraisal Methods

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• M21 Assessment in the Workplace

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Performance Appraisal

• Aims of Appraisal
• Content of Appraisal
• Implementation
• Maintenance and Evaluation of Appraisal
• Appraisal and Performance Management (PRP)

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Perspectives on Appraisal The Organisation

• to enable some kind of assessment to be made on
  an employee - either against pre-set objectives
  or job competencies as a basis for
• making equitable reward decisions
• improving performance
• motivating employees
• succession planning and identifying potential
• promoting manager-subordinate dialogue
• formal assessment of unsatisfactory performance

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Perspectives on Appraisal The Appraisee
(Employee)

• Want fair distribution of reward
• Want performance feedback
• Want constructive dialogue with the
  organisation
• BUT, conditional on the extent to which -
• the appraisal is perceived as fair
• has a good working (social?) relationship with
  the appraiser
• impact of the assessment on their rewards and
  well-being

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Perspectives on Appraisal The Appraiser
(Immediate Superior)

• Napier Latham (1986) Reluctance
• why
• lack of agreement with target (appraisee)
• lack of confidence in own ability to appraise
• very high administrative workload
• office politics
• all leads to...
• bias in appraisal ratings

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Common Practice Aims of the Appraisal

• Performance appraisal generally thought up by
  Personnel and/or senior management
• NB1. Importance of setting realistic aims -
  conflicting perspectives on aims of appraisal
  (assessment vs motivation development)
• NB2. The aims of the appraisal will affect the
  nature and content of the scheme
• assessment common dimensions
• motivate develop emphasis on the individual

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Content of Appraisal(for Assessment
Comparison)DESIGNING THE QUESTIONNAIRE

• Identify abilities that are central to good
  performance AND can discriminate between staff
  with varying levels of performance.
• How can we identify these job-related activities ?

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Identification of Job-Related Abilities
(Assessment Comparison) Techniques (I)

• 1. Committee Method
• Personnel and Snr Mgr/Exec. determine by
  discussion of key abilities.
• 2. Diary Method
• Job-holder keeps an hour-by-hour record
• 3. Direct Observation
• HR and/or Occupational Psychologist observes job
  holder at work

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Identification of Job-Related Abilities
(Assessment Comparison) Techniques (II)

• 4. Questionnaire Methods (e.g. Position Analysis
  Questionnaire) 187 items, 6 dimensions
• Information Input
• Mental Processes
• Work Output
• Relationships with Others
• Job Context
• Other Characteristics
• 5. Interviews with job holders stakeholders
  (e.g.Critical Incident Technique) Incidents of
  very effective and very ineffective
  performance.

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Rating Scale Format(Assessment and Comparison)

• 4 common formats for ratings scales
• 1. Scales with verbally described intervals
• 2. Numerical/Alphabetical, with low-high
  (intervals specified, but not described)
• 3. Graphic rating scales extremes and mid-point
  specified, with detailed description of dimension
  of behaviour
• 4. Comparative scales behaviour described
  relative to others.

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Why Use Rating Scales ?

• Advantages
• easily understood
• encourage an analytic view of behaviour
• provide quantitative data, so facilitates
  comparison
• Disadvantages
• idiosyncratic rating errors (halo, restriction of
  range, leniency, central tendency, acquiesence)

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How to reduce idiosyncratic rating errors

• Train appraisers
• Use forced distributions
• Increase the number of raters
• Use behaviourally based rating scales (e.g. BOS
  and BARS)

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Content of Appraisal(to Motivate Develop
Management By Objectives, MBO)DESIGNING THE
QUESTIONNAIRE

• 6 - 12 months, detailing
• key objectives
• priority ranking
• action needed (who and when)
• extent to which objectives achieved
• NB.
• Very difficult to make any comparisons between
  people
• not all jobs can be framed in terms of individual
  objectives
• doesnt help identify development needs

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Content of Appraisal(Motivate Develop
Competency Based)DESIGNING THE QUESTIONNAIRE

• an underlying characteristic of a person which
  could be a motive, trait, skills, aspect of ones
  self-image or social role or a body of knowledge
  which he/she uses. Boyatzis, 1982.
• How to identify competencies
• (i) Traditional job analysis techniques, (ii) Rep
  Grid
• (iii) Questionnaire methods (e.g. Generic
  Competency Questionnaire)
• NB. Fletcher (1997). competencies should not be
  equated with ratings of single job-related
  abilities - they are much more broader and
  complex. They should allow for progression and
  development

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Training and the Implementation of Appraisal

• Fletcher Williams (1982) the effectiveness of
  performance appraisal is related to the training
  effort put into it
• Traditionally, introduced top-down
• Background briefing - history of appraisal in the
  org., selling the system, familiarise with the
  process
• Train the Appraisers - train on Assessment
  Skills, Appraisal Interview Skills, offer an
  appraisal clinic.
• N.B. train for appraisal of diverse workforce
• Train the Appraisees - e.g. aims of scheme, how
  to prepare, reassure, how to respond.

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Monitoring and Maintenance of Appraisals

• Short-Term Criteria
• completion rate
• action generated
• quality of appraisal reports
• attitudes and perceived value of the appraisal
• equity
• Long-Term Criteria
• organisational performance
• quality of staff
• retention of staff
• levels of employee commitment

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Appraisal and Performance Management

• a shared vision of the direction of the
  organisation, in which each individual employee
  recognises and accepts their contribution
• The Process of PM
• develop org. mission statement and objectives
• develop a business plan
• enhance communication within the organisation
• clarify individuals responsibilities
• define and measure individual performance
• implement appropriate reward strategies
• develop staff to improve performance further

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How does Appraisal fit in to PM ?

• Appraisal is the vehicle by which
• org. goals and objectives are translated to
  individuals
• individual needs are identified, and objectives
  agreed
• NB
• Individual vs team achievement
• line driven appraisal
• appraisal as part of a feedback loop
• excessive bottom-line emphasis

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Appraisal Pay

• Merit Pay (PRP)
• 3 -10 of salary ( cost of living rises)
• Issues
• Meyer (1980 on average, employees felt they
  performed better than 75 of their peers.
• High performing individual, poor org. performance
• Bevan Thompson (1991) PRP is not related to
  higher levels of org. performance.
• Implications for appraisers (leniency in ratings)

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Appraisal and Pay

• Alternatives
• Direct and indirect links with merit pay
• Wider (financial and non-financial) reward
  policies
• e.g. promotions, office décor, more
  holidays/flexible working practices, technology,
  better work, conferences and training