Performance Management-Appraisals Workshop

Continual organizational improvement can only come about with continual individual improvement.

IndexCourse goalsPerformance ManagementWhat is Performance Appraisal?Performance Appraisal Process.Methods of Performance AppraisalConclusion.

Course Goals

To assist you in managing employee performance

To enable you to appropriately complete the evaluation portion of a performance management program standards.

Why have Performance Appraisals? Overview of The Process

- Appraisal Procedure Benefits of Appraisals

- Management Role- Employee Role

Communication Skills Required- Questioning- Listening- LanguageThe Appraisal- Appraisal Areas- Preparation- Writing the Appraisal- Do's and Don'ts- Goals- Self Esteem- Structuring the Appraisal

The Appraisal Discussion- Framing- Disagreement- Criticism- FeedbackProblems with Appraisals- People- Process- Preparation

ROTATIONAL BRAINSTORMINGWhat is Performance Appraisal?Why is it necessary?What is the key to the effectiveness of PA?Should PA be done or not? If so why?(State at

least 3 reasons for either)

DEFINITIONWhat is performance management?An ongoing ongoing communication process.

Key Definitions we will explore in Performance

Performance Standards

What are they?

Performance Evaluation

What is it?

Standards Start with a good job

description.

(Why does this job exist??) What is this person to accomplish? What is the person accountable for

in the work process? What results are achieved through

the functions of THIS job? What are the KEY performance

expectations of THIS job? Remember: Standards should

reflect what a satisfactory employee can accomplish.

Evaluations Only one aspect of the continuous

Performance Management Process!!!

Should be linked to the Business Objectives

Should measure Results & Competencies

Standards are “Standard” or “Satisfactory” in our process

Don’t create a “zero sum game”-- Always strive for Win/Win situations

Ratings are not decided upon compared to other performers, but rather to your planned performance for the specific staff person

Look at behavior and results

EVALUATE/APPRAISEOBTAIN INPUT FROM RECORDS &

DISCUSSIONS WITH REVIEWING OFFICER .

RECORD RESULTS, PERFORMANCE, BEHAVIOR

RATE FACTORS ON ALL DIMENSIONS OF JOB FOR ENTIRE RATING PERIOD

RECORD THE RATINGSDISCUSS WITH REVIEWING OFFICERDISCUSS WITH EMPLOYEE

GUIDELINES FOR CONDUCTING PERFORMANCE EVALUATIONS

PREPARE FOR MEETING AND PROVIDE UNINTERRUPTED SESSION

SHOW KNOWLEDGE OF AND INTEREST IN EMPLOYEE

DISCUSS PERFORMANCE AND PROVIDE SPECIFICS

DISCUSS EMPLOYEE DEVELOPMENTCONCLUDE ON POSITIVE

PERFORMANCE APPRAISALS

Definition

“Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis for determining merit increases.”

“OBSERVE and EVALUATE an employee in relation to PRE-SET performance standards.”

BRAINSTORMING

What objectives would you base PA upon ?

PAObjectiv

es

Documentation

Organizational

Maintenance

PromotionsTraining and development

Pay scales & Pay raise

Constructive criticism

and guidance

Administrative uses

HR programs

Communication

Appraisal Process

Establish job Expectations

Design an Appraisal Programme

Appraise Performance

Performance Interview

Objectives of Performance Appraisal

ArchiveAppraisal Data

Use appraisal data for appropriate

purposes

THREE AND ONEWHO ?

SUPERVISORS DO EVALUATIONSWHAT ?

COMPLETION OF JOB TASKS WHEN ?

ANNUALY FOR PERMANENT EMPLOYEES

NEW EMPLOYEES 3-6 MONTHS HOW ?

SPECIAL CARE & RESPECT

Sources of Information1) Supervisors (most common)

• Motivation

• Time availability

• Friendship

2) Co-Workers (Peers)

• Friendship bias

• Leniency

• High level of accuracy

• Best used as a source of feedback

Sources of Information (cont)3) Self

• Lots of knowledge

• Leniency effect

• Good preparation for performance appraisal meeting (conducive for dialog)

4) Subordinates

• Biases (e.g., # of subordinates, type of job, expected evaluation from supervisor)

5) Client

• Good source of feedback

• Negativity bias

Methods of PA1. Critical incident method2. Weighted checklist method3. Paired comparison analysis4. Graphic rating method5. Essay evaluation method6. Behaviorally anchored rating scale7. Performance rating method8. Management by objective method9. 360 degree performance appraisal method10.Forced ranking method11.Behavioral observation scales

Forced ranking method

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

TablesPerformance Rating *Percent Award

Outstanding -

Above Expectations -

Meets Expectations -

Needs Improvement -

Performance Rating Target SpreadPercentage

Outstanding 5

Above Expectations 25

Meets Expectations 65

Needs Improvement 5

Critical incidents methodAny critical incidents or Outstanding

examples of success or failure of subordinates is recorded by supervisor.

It improve s the supervisor’s ability as an observer

Identifies Areas where counseling may be useful.

It is less Reliable and valid for many organizations.

E.g.Supervisor Comments (To be filled by the immediate supervisor in consultation with the employee)

How successful was your employee in achieving his/her KPI's in the appraisal period (give example)

He was able to achieve most of his KPIs but he had to be reminded to do something about it. For example the KPI of updating organograms, he has to be constantly reminded about updating them.

List top 1-3 strength of your employee. Comment on how these strengths can be used for the organizations' benefit?

1. Challenges status quo, questions processes, looks for better ways of doing things. 2. Ownership of projects: Finishes work assigned to him and takes responsibility for it. 3. People Management: He has really worked hard on his people management skills and gets along well with internal as well as external customers.

Management By objectives“Management by Objectives (MBO) is a

process of agreeing upon objectives within an organization so that management and employees agree to the objectives (KPI’s) and understand what they are.”

Largest user of MBO in Pakistan is the public sector but failure of it is lack of performance appraisal system.

Setting goals is difficult in MBO.

No. KPI's Progress % Completed

1Updated organograms of all departments

In process. Orgranograms were converted from Visio to Powerpoint. Constant update is required when there is a change in any department.

70 %

2 Assistance in annual appraisal 2009

In process. Initial lists of employees were finalized. Online appraisals are being done. Last date for submission of forms is June 30, 2009. There will be increment work after that.

70 %

3 Improve the SOPs for recruitment In process 70 %

4Improve orientation SOP,orientation pack

In process 50 %

5Automation of attendance management system

Completed. Successfully registered and trained 148 employees on the system. Generating attendance data through the system now.

100 %

6 Audit of employees' leave balances Completed 100 %

Five step MBO process

DEFINITIONA GOAL –DIRECTED APPROACH TO

PERFORMANCE APPRAISAL IN WHICH WORKERS AND THEIR SUPERVISORS SET GOALS TOGETHER FOR THE UPCOMING EVALUATION PERIOD

Essay MethodEmployee is described in a number of broad categories like

Overall impression Strengths and weakness

The strength of this method is the writing skills and analytical skills of the rater.

ROLE PLAY (Total Time: 75 min)

Groups of four Each group to write 3-4 objectives (10 min) Preparation for interview as per objectives (10

min) Role play between Appraiser-Appraisee (15 min/group)One group to observe the other and then rotateEach group to provide feedback on the other (5 min/group)Highlight strengths and weaknesses in the

appraisal process of the other groupsSyndicate Discussion (5-7 min)

Points to Ponder Determining the evaluation criteria Lack of competence Errors in rating and evaluation Resistance Unrealistic objectives

ERRORS INPERFORMANCE APPRAISAL, WAYS &

MEANS TO REDUCE IT

Performance Appraisal and Other HRM Functions

Performance appraisal validates selection function

Performance appraisal validates selection function SelectionSelection

Selection should produce workers best able to meet job requirements

Selection should produce workers best able to meet job requirements

Performance appraisal determines training needs

Performance appraisal determines training needs

Training and Development

Training and Development

Training and development aids achievement of performance standards

Training and development aids achievement of performance standards

Performance appraisal is a factor in determining pay

Performance appraisal is a factor in determining pay

Compensation Management

Compensation Management

Compensation can affect appraisal of performance

Compensation can affect appraisal of performance

Performance appraisal judges effectiveness of recruitment efforts

Performance appraisal judges effectiveness of recruitment efforts

RecruitmentRecruitmentQuality of applicants determines feasible performance standards

Quality of applicants determines feasible performance standards

Performance appraisal justifies personnel actions

Performance appraisal justifies personnel actions Labor RelationsLabor Relations

Appraisal standards and methods may be subject to negotiation

Appraisal standards and methods may be subject to negotiation

Reasons Appraisal Programs Sometimes Fail

Lack of top-management information and support Unclear performance standards Rater bias Too many forms to complete Inadequate preparation on the part of the manager. Employee is not given clear objectives at the beginning of

performance period. Overemphasis on uncharacteristic performance. Organizational politics or personal relationships judgments. Manager may not be trained at evaluation or giving feedback. No follow-up and coaching after the evaluation

Common Errors in

the Appraisal Process

Halo Error/Horn Error

First Impression Error

Recency Error

Leniency Error

Severity Error

Central Tendency Error

Stereotyping

Attribtion bias

Responsibility

Commitment

Initiative

Sensitivity

Judgment

Communication

Observation of specific behavior (s) (e.g., volunteers

to work overtime)

Halo Error/Horn Error: rating a single individual based on the interviewer’s general feeling toward the individual so that employee receives nearly identical ratings (usually high/low) on all performance areas

High/low ratings on other performance

dimensions

First Impression ErrorTendency of a rater to make an initial positive or

negative judgment of an employee and allow that first impression to color or distort later information

Leniency Errorgive more positive ratings to employees than they deserve

Severity Error evaluate employees more unfavorably than they deserve

Central Tendency Errorrating all employees near the mid-point of the performance scale

Recency Error

The tendency of minor events that have happened recently to have more influence on the rating than major events of many months ago.

StereotypingThe tendency to generalize across groups and ignore individual differences.

Improve Appraisal Formats

Select the Right Raters

Understand Why Raters Make Mistakes

Rater-error training to reduce psychometric errors

Performance dimension training Performance-standard training

1) Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.

2) Use objective and uncontaminated data whenever they are available.

3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals.

4) Use more than one independent evaluator of performance.5) Use a formal, standardized system for personnel decisions.6) Ensure that evaluators have ample opportunity to observe

and rate performance if ratings must be made.7) Avoid ratings on traits such as dependability, drive, aptitude,

or attitude.8) Provide documented performance counseling prior to

performances-based termination decisions.

Prescriptions for Defensible Appraisal Systems

From a Performance Perspective(An Exercise)Jigsaw readingFour groupsRead the given extract and jot

down at least 8-10 key points (10 min)

Each group to present and share the key points (3 min per group)

Syndicate Discussion (10 min)