Performance Appraisal and Managing the Outcomes of Performance Appraisal Supervision: Concepts and Practices of Management, Second Canadian Edition Hilgert, Leonard, Shemko, and Docherty © 2005 by Nelson, a division of Thomson Canada Limited

Learning Objectives Define performance appraisal and clarify the supervisor’s role in the process. Explain how often performance feedback should be provided. Discuss the advantages of a formal performance appraisal system. Explain the concepts and techniques in using a written employee appraisal form.

Learning Objectives Discuss the process of conducting an effective appraisal meeting. 6. Discuss coaching as a follow-up to performance appraisal. Identify the benefits of a promotion-from-within policy. Discuss the supervisor’s role in employee compensation and outline the goals of an effective compensation program.

Performance Appraisal A systematic assessment of how well employees are performing their jobs and the communication of that assessment to them.

Performance Appraisal Regular feedback on performance is essential to improve employee performance and to provide the recognition that will motivate employees to sustain satisfactory performance.

Evaluation Supervisor’s evaluation—the immediate supervisor is the best person to observe and judge performance Peer evaluation—peers with close working relationships may know more than the supervisor about employee contributions Self-evaluation—supervisors can supplement their judgments with a self-evaluation

Evaluation 360-degree evaluation—performance appraisal based on data collected from around the employee—from customers, vendors, supervisors, peers, subordinates, and so on.

Timing Performance Appraisals Ongoing feedback throughout the year, both positive and negative, rewards good performance and fosters improvement.

Advantages of a Formal Appraisal System Provide systematic judgments to support salary increases, promotions, transfers, layoffs, demotions, and terminations. Means of telling subordinates how they are doing and of suggesting needed changes in behaviour, attitudes, skills or knowledge. Help supervisors coach and counsel.

Value of Performance Appraisals Who should be promoted? Who should get merit raises? What should be the raise differential? Who needs training? What training do they need? Does an employee need coaching or discipline? Do you have adequate documentation?

Performance Appraisal Process Completing a written appraisal form Conducting an appraisal interview

Some Measures of Performance Safety Aptitude Adaptability Quantity and quality of work Ability to learn Customer orientation Appearance Job knowledge Timeliness of output Positive and negative effects of effort Dependability Initiative Ideas generated Cooperation

Making It Fair Not all raters agree on the meaning of “exceptional,” “good,” “fair,” etc. Some supervisors may be more severe. Some supervisors may be overly generous. Supervisors should use performance standards.

Purpose for the Appraisal Meeting Let employees know how they are doing. Formally praise employees. Help employees develop good future performance. Explain opportunities for growth. Explain behaviour that needs correcting and improvement.

Conducting the Meeting Hold meeting shortly after appraisal form is completed. State the purpose of the meeting. Review employee’s achievements. Identify strengths. Discuss areas that need improvement. Limit criticisms to a few major points and mix in positive statements.

Difficult Responses You hired me. How can I be so bad? You’re just out to get me. You don’t like my lifestyle. This evaluation is not fair! I didn’t know that was so important. You never told me. My job depends on getting good work from others.

Closing the Meeting Be certain the employee clearly understands their ratings. Agree on mutual goals. Set a date to discuss progress towards goals. Ask the employee to sign the form if required. Review appraisals with managers or HR if required.

Improving Performance Let people know what is expected. Set clear and high goals. Find out what you can do to help. Supervise and coach employees so they can succeed. Catch people doing something right.

Improving Performance Give timely feedback. Thoroughly document performance. Solicit feedback about your own performance. There is no substitute for daily performance feedback.

Coaching Giving employees information, instructions, and suggestions relating to their job assignments and performance. If you want your people to be high performers (winners), then you need to help them get there (coach).

Promoting Most employees are more motivated when they see a link between excellent performance and promotion. More interesting work Higher pay and status Better working conditions

Promoting from Within Seniority—length of service Merit—quality of job performance Ability—potential to perform higher-level tasks

Objectives of Compensation Program Eliminate pay inequities Establish sufficiently attractive pay rates Conduct periodic employee merit ratings Control labour costs Reward employees for performance and improvement

Employee Incentives Pay for performance Piecework Skill-based pay Suggestion plans

Employee Benefits Vacations with pay Holidays Retirement plans Insurance and health programs Tuition-aid programs Employee-assistance programs