Performance appraisal and career development Chapter 5 Performance appraisal and career development Copyright © 2010 Tilde University Press

The importance of performance appraisal One of the most misunderstood HRM functions A process that everyone loves to hate But is critical PA must achieve outcomes areas, such as: Basis of HRDNI Encourage the development of staff Cost effective The most direct and dynamic link between on-the-job performance and human resource development

Performance management Key elements of performance management : normal interactive process between managers, individuals and teams based on agreements, accountables, expectations and development plans a continuous process Performance management unites performance appraisal with the other organisational subsystems and strategies. Performance appraisal (PA): Concentrates on the individual Provides a unique set of information for HRDNI

Performance appraisal – a natural process Appraising something - measuring the extent of its value to us We make hundreds of judgements each day Appraisal has four stages having some predetermined standard observing some event or object comparing this observation against the predetermined standard, and taking some action

Performance appraisal – a unique process Can play a unique role in engendering or destroying trust Communication is the key – see Figure 5.1 Plays a pivotal role in HRD Essential part of the evaluation of the investment of developmental activities. Its need for trust and its complexity may be why some managers shy away from PA

Impact on the HR developer Involved in PA in a variety of ways In both the surveillance & investigatory stages of HRDNI Design, develop and instigate a PA system Develop both the managers and the appraisees in the reciprocal skills necessary to conduct PAs ensure that the special interaction between managers and staff fulfils the fruitful opportunities offered The appraisal interaction between manager and staff member is a dynamic developmental episode when handled correctly—but an absolute disaster when handled incorrectly The results provide specific and indispensable information for the evaluation stage

Impact on the HR developer (cont) Eight principles for a successful performance appraisal system Two types —administrative and developmental The use of a cascade process Performance standards are based on a current job analysis Observing the events using appropriate observation methods Using realistic comparisons between the observed data and the predetermined standard taking action through the use of appropriate feedback methods creating action plans The action plans must become the inputs for a developmental program

Types of performance appraisal Administrative performance appraisal making decisions for salary increments, promotions, retrenchments and succession plans a critical part of the control function in an organisation Developmental performance appraisals identifying, honestly and accurately, the developmental needs of an individual Are conflicting in nature The main variable is trust Both processes have commonalities

Basic process of PA Job analysis Gathering and recording information on a job Research methods as used in the HRDNI What are the tasks and duties of this particular position? What are the expected outcomes of these tasks and duties? Creating the two basic documents Job description Job specification The predetermined standard

Basic process of PA (cont) Observing the performance The what The who The full period The comparison Visual record Graphic rating scale and Behaviourally anchored rating scale See Figure 5.6

Basic process of PA (cont) Feedback tell-and-sell (Administrative ?) tell-and-listen (Administrative ?) problem solving (Developmental ?) Also depends on job maturity Action plans Permanent and reliable record For the administrative appraisal, the usual record is a report For the developmental appraisal, an action plan The what - e.g. the learning objectives The who - person responsible for the action The how - type of learning – formal? Informal?

Surveillance system The developmental performance appraisal process is the key surveillance system for any HRDNI the information on the action plans is used for two purposes: to design learning programs for individuals to investigate trends identified from the collation of several individual action plans for further hidden needs

Legal issues in PA A PA holds weight in the legal environment Either as a shield against legal proceedings Or a distinct legal/ financial risk Legal ramifications Not having one poses an enormous risk The job analysis needs to produce job descriptions that are accurate KPIs that are reasonable and achievable job specifications that are logical use measures that can be proven to be reliable and valid

Career management The comparison between the needs of the individual the needs of the organisation Critical because of the long lead times often needed for the development of people for new roles and responsibilities The organisation matches the needs of the staff with the organisation’s requirements for flexibility to achieve a balanced mix of primary, secondary and peripheral staff

Careers Traditional vertical career Protean career Boundaryless career Within a single organisation An orderly, predictable upward progression The psychological contract Protean career Self-directed orientation Implies independence from external career influences Individual evaluates career goals using internal values Greater mobility and a more whole-of-life perspective Boundaryless career crossing organisational and professional boundaries job security is replaced by employability

Career development On-going Reciprocal interaction between employee and employer Enhancing capabilities so that the individual is not restricted to a particular job/career/ organisation The process contributes to organisational success Being inclusive rather than exclusive to a few Being formal and informal Individual and work priorities influence choice about careers and developmental opportunities

Career counselling Help to develop them reach their career goals Career motivation Career identity - personal values according to workplace Career insight - ability to evaluate own strengths and weaknesses Career resilience – how cope with the problems that arise at work

Career counselling (cont) Career anchors Pattern of talents, motives and values that guide/constrain/stabilise/integrate career A number of types, such as Technical competence Managerial competence Wanting security Wanting creativity Preference for autonomy

Career counselling (cont) Individual’s personal environment Mix of work life, family life and leisure life Balance Role conflicts Life-cycle model Exploration stage Establishment stage Maintenance stage Disengagement stage

Career counselling (cont) Gather information on future careers What qualifications are needed How much supervised experience is required Employment opportunities Locations of employment Expected working hours Costs of gaining qualifications and experience Effects of such a change on present lifestyle

Career counselling (cont) Constructing action plans Action plan to make the change happen Plans usually include Time line Budget Incorporate a reality check into the process E.g., visiting a work site

Career counselling (cont) Making the change How will the specific change affect each member of the family? Is the new employer financially stable? Is the culture ‘fit’ of the new organisation appropriate? Is the physical working environment be suitable?