Performance Reviews and Feedback

MANA 4328

Dennis C. Veit

dveit@uta.edu

Arguments Against Appraisals

Arguments Against Appraisals

Managers generally do a poor job of actually evaluating performance. Most people work hard and do their best Poor evaluations perceived as unfair de-motivate

employees. Poor performance is rarely a motivation problem

Most problems lie in systems and work processes Performance should be judged by output of groups

not individuals.

Alternatives to Appraisals

Alternatives to Appraisals

Replace reviews with regular feedback and coaching.

Emphasize the relationship between managers and direct reports.

How to determine raises? Pay for seniority Pay for skills Pay for unit performance

The Appraisal Interview

Most Employees Believe They Perform Well

“Is your performance above average at your organization?”

Fortune Magazine 2007

How to Deal with Poor Performance

Appraisals seldom provide good support for termination. Managers tend not to give poor reviews Language in reviews is often ambiguous

Alternatives: Document specific performance problems and

incidents Use a review system for only those ready to

terminate. Forced ranking systems?

Performance Appraisal Challenges

Gender Bias Managers tend to give women evaluations that are

less critical and less straightforward.

Attribution Theory People tend to overestimate the influence of individual

factors (such as motivation) and underestimate the influence of environmental factors when assessing others behavior.

Frame of Reference

Attribution Theory

“Don't confuse luck with skill when judging others, and especially when judging yourself.”

Carl Icahn, billionaire investor

Conducting A Fair Appraisal

1. Collect appraisal data

2. Evaluate performance

3. Write the appraisal

4. Conduct an appraisal interview

Conducting A Fair Appraisal

1. Collect appraisal data Objective data on job performance Critical incidents (good and bad) Behavioral observation

2. Evaluate performance Before completing form – think about intended result Avoid biases Consider how the message will be viewed by employee Consider circumstances beyond employee’s control Consider past evaluations

Diagnosing Performance Problems

Performance = f (Ability, Motivation, Environment)

Ability

Technical Skills

Analytical Skills

Interpersonal Skills

Physical Limitations

Business Knowledge

Motivation

Goals / Expectations

Career Motivation

Employee Conflict

Employee Satisfaction

Boredom / Frustration

Environment

Job Design

Equipment / Materials

Rules and Policies

Economic Conditions

Management Support

Diagnosing Performance Problems

Source: Scott Snell, Cornell University.

Conducting A Fair Appraisal

3. Write the appraisal Have courage to address poor performers Be specific and use examples Avoid nitpicking Additional evidence needed for high/low performers Tied to specific goals Prioritize development needs

Providing Performance Feedback

Location and timing Quiet and private “Neutral” seating arrangement Scheduled well in advance Avoids unrelated events

Approaches to the Appraisal Interview Tell and Sell Tell and Listen Problem Solving

Providing Performance Feedback

Avoid Defensive Reactions:

Describe performance, not personality. Avoid questioning motives. Use specific examples and quantify if possible. Avoid vague statements or unsubstantiated claims. Give the employee a chance to respond.

Providing Performance Feedback

Focus on Employee Development:

Limit plans for change, growth, and development to a few important items that are achievable.

Keep career discussions separate from performance feedback.

Create a development plan.

Dealing With Poor Performers

Avoiding problems usually makes them worse. “Why didn’t you tell me this before?”

Approach the employee for mutual benefit – to solve the problem and maintain the relationship. Threats and punishment increase compliance but....

Good intentions matter.

Identifying Performance Gap

Assume an employee says:

“I know you are not happy with something, but I am not sure what I am doing wrong. What exactly is it that concerns you?”

OR

“I want to make sure that I’m doing the job the way you want it done. What exactly should I do so that you will say I am doing a good job?”

Dealing With Poor Performers

1. Identify a specific gap between performance and expectations.

2. Determine business reasons why the problem must be solved.

3. Determine consequences if the situation is not corrected.

4. Determine appropriate action.

Dealing With Poor Performers

Be prepared to answer questions like: “What’s the big deal?” “Why is this important?” “That’s a dumb rule – you know I do a good job”

Determine consequences and action Be specific – no vague threats Give time for employee to change How critical is the problem behavior?

Dealing With Poor Performers

Consider a range of action Discuss during the appraisal without making a written

reference. Reference the issue in the appraisal narrative without

lowering ratings. Reference the issue and lower the performance rating

for that particular area. Reference the issue in performance summary and

lower final appraisal rating.

Use progressively stronger sanctions

HR Staffing

Legal Compliance Determining HR needs

Projecting staffing levels Job analyses Managing competencies

Identifying and recruiting employees Evaluating candidates

Selection tests Interviewing

Strategic Staffing Managing Retention

Performance Management

Performance management systems Timing, forms, and outcomes Managing for employee motivation

Goal setting Pay for performance Providing performance feedback