Appraising Performance

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Appraising Performance
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Purpose of Performance Appraisal

• The main focus of performance appraisal is
• improving organisation performance by focusing on
  individual effort and by developing them
• The other purpose of a performance appraisal is
• to communicate to the employee how management
  views his/her productivity, based on job
  specifications.
• to provide a forum for an exchange of information
  and input between employer and employee.

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Performance Appraisal

• Purpose improve organisational performance
• How regular discussions between individual
  manager
• Where at the work place
• When continuous often at half yearly or
  yearly interval
• By Whom employee's supervisor and the
  employee

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What is it for?

• The underlying purpose of performance management
  is to improve the utilisation of staff resources
  by
• assigning work more efficiently
• improving job placement
• validating selection procedures and evaluating
  training programs
• recognizing potential for development to
  managerial positions
• identifying training needs
• fostering a better working relationship between
  subordinate and supervisor
• fostering a better working relationship between
  work units
• assisting employees in setting career goals
• fostering improvements in work performance
• meeting employees' needs for growth
• keeping employees advised of what is expected of
  them

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It is also to provide a basis for such personnel
actions as

• Periodic appraisal
• promotion based on merit
• recognition and rewards for past performance
• review at completion of a probationary period
• warning about unacceptable performance

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What does it need?

• a precise summary of the individual's agreed
  contribution to the organisation performance for
  the year
• knowledge of what the individual has achieved in
  the past period
• knowledge of the way the individual performs
  his/her tasks/duties

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Designing an effective system of appraisal

• The process of designing an appraisal system
  should ideally involve incumbents, supervisor,
  clients, peers, customers and HR professionals in
  making decisions about each of the following
  issues
• measurement content
• measurement process
• defining the rater (i.e. who should rate the
  performance)
• defining the ratee (i.e., the level of
  performance to rate)
• administrative characteristics.

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The Appraisal Process

• An appraisal involves
• Setting work standards
• Assessing actual performance vs. these standards
• Providing feedback to the employee

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Why Appraise Performance?

• Appraisals provide information for promotion and
  salary decisions
• Provides opportunity to review an employees work
  related behavior with the goal of correcting
  deficiencies
• Is part of the career-planning process
• Appraisals help manage and improve your firms
  performance

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The Supervisors Role

• Must be familiar with basic appraisal techniques
• Be candid but fair when delivering bad news
• HR will often outline guidelines but leave
  implementation to supervisors

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Steps in Appraising Performance
Define the Job
Make sure all agree on duties
Appraise Performance
Provide Feedback
Compare performance to the standard
Discuss progress make plans
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Manage Expectations

• Job descriptions are usually written for a group
  of jobs leaving many aspects of a job without
  specific goals
• Quantify expectations with explicit goals for
  each expectation
• Employee should know basis of appraisal ahead of
  time

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Appraisal Methods

• Graphic rating scale
• a scale that lists a number of traits and a range
  of performance for each. The employee is then
  rated by identifying the score that best
  describes the level of performance for each
  trait.
• Quality - 1-5
• Productivity - 1 - 5

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Appraisal Methods

• Alternation Ranking Method
• Ranking employees from best to worst on a
  particular trait, choosing highest then lowest
  till all are ranked.
• A particular trait
• Ranking

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Appraisal Methods

• Paired Comparison Method
• Ranking employees by making a chart of all
  possible pairs of the employee for each trait and
  indicating which is the better of the employee.

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Appraisal Methods

• Forced Distribution Method
• Similar to grading on a curve predetermined
  percentages of ratees are placed in various
  performance categories.

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Appraisal Methods

• Critical incident method
• Keeping a record of uncommonly good or
  undesirable examples of an employees work related
  behaviour and reviewing it with the employee at
  the predetermined time.

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Narrative Forms

• Final appraisals are frequently in a written
  narrative form
• Supervisor rates employees
• Performance factor or skill
• Give examples an improvement plan
• Explains good bad performance areas

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Behaviorally Anchored Rating Scales

• BARS combine best features of narrative,
  critical incidents, and quantified scales in five
  steps
• Generate critical incidents
• Develop performance dimensions
• Reallocate incidents
• Scale the incidents
• Develop a final instrument

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BARS for Grocery Clerks

• Researchers developed a BARS for grocery clerks
  by collecting critical incidents in 8 areas
  (rating scale given below)

• Knowledge and judgment
• Conscientiousness
• Skill in human relations
• Skill in operation of register

• Skill in bagging
• Ability of checkout work
• Skill in monetary transactions
• Observational ability

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Extremely Poor
Poor
Average
Good
Extremely Good
1
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Advantages of BARS

• A more accurate gauge of performance
• Clearer standards critical incidents along the
  scale make it clear
• Feedback its easier to explain ratings to
  appraises
• Independent dimensions clustering critical
  incidents make dimensions more independent
• Consistency different raters appraisals of same
  individual are similar

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Management by Objectives

• MBO refers to a organizational 6 step goal
  setting and appraisal program

Set the organizations goals
Set the departmental goals
Discuss developmental goals
Define expected results
Performance reviews
Provide feedback
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Dealing With Rating scale Appraisal Problems

• Unclear standards use of words like good or
  fair on appraisals
• Halo effect one trait affects all ratings
• Central tendency everyones in the middle
• Leniency or strictness no middle
• Bias characteristics affect rating

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Research Insight

• One study showed appraisal reviewers rated the
  same woman differently when only difference was
  pregnancy
• It demonstrates that outside biases can influence
  ratings

• Men and women raters act differently many things
  influence how a review is conducted

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How to Avoid Appraisal Problems

• Learn and understand the problems
• Use the right appraisal tool
• Train supervisors
• Reduce outside factors time constraints, union
  pressures turnover
• Keep a diary of critical incidents

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Legal Issues in Appraisals

• Inadequate appraisal systems often lie at the
  root of discriminatory layoffs, promotions,
  discharges or merit pays
• They are arguable if appraisals are
• Based on subjective observations
• Not administered and scored consistently
• Based on evaluators who did not have daily contact

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Who Does the Appraising?

• Peers
• Your Boss
• Rating committee
• Subordinates
• You

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360o Appraisals

• 360o assessments evolved from upward feedback
  appraisals
• One study 29 use it with 11 planning to add
  multi-source assessments
• Great deal of paperwork

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The Appraisal Interview

• Appraisal interview - an interview in which
  the supervisor and subordinate review the
  appraisal and make plans to remedy deficiencies
  and reinforce strengths.
• Adequate preparation and effective implementation
  are therefore essential.

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Three Appraisal Types/Objectives
Appraisal Type The Objective
Performance is satisfactory Employee promotable
Make development Plans
Satisfactory Not promotable
Maintain Performance
Unsatisfactory Correctable
Take corrective Action
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Keep These in Mind When Conducting the Interview

• Be direct and specific - talk in terms of
  objective work data
• Dont get personal - Youre too slow in
  producing those reports.
• Encourage the person to talk - stop and listen to
  what the person is saying
• Dont tiptoe around - make sure the person leaves
  knowing exactly what they are doing right and
  wrong

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A Defensive Subordinate

• Understanding and dealing with defensiveness is
  an important appraisal skill
• Defensive behavior is normal
• Never attack a persons defenses
• Sometimes it is best to do nothing at all

• Recognize your own limitations dont expect to
  be able to solve every problem that arises

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Use Constructive Criticism

• Provide examples
• Avoid yearly critical broadsides by giving
  frequent feedback
• No real surprises at formal appraisal
• Criticism should be objective

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How to Insure Improved Performance

• Set improvement goals
• Establish comfort
• Allow employee influences
• Provide constructive information

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Most Commonly Used Appraisal Methods
Society for Human Resource Management reports
about 89 of surveyed managers use performance
appraisal for all their employees
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Do Appraisals Really Help?

• Traditional appraisals may be counterproductive
• One study showed 32 rated appraisals
  ineffective 4 rated them effective