© 2003 The McGraw-Hill Companies, Inc. All rights reserved. I N T E R V I E W I N G Principles and Practices Tenth Edition Charles J. Stewart Purdue University William B. Cash Achievement Unlimited National Louis University Slide 1

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 2 The Performance Interview Slide 2 9 CHAPTER Chapter Summary New Visions for New Organizations Preparing for the Performance Interview Selecting an Appropriate Review ModelSelecting an Appropriate Review Model Conducting the Performance Review Interview The Employee in the Performance Review The Performance Problem Interview Summary

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 3 New Visions for New Organizations Employee leadership and initiative are essential in the new world of work. Performance is the key to new thinking. Motivation is replacing discipline. Compensation has become more than salary and fringe benefits. The goal is to achieve a balance among all facets of the organization.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 4 New Visions for New Organizations Figure 9.1: The Balanced Scorecard as a Strategic Framework for Action Insert Figure 9.1 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5 New Visions for New Organizations Figure 9.2: Characteristics of the Five Balanced Paths Insert Figure 9.2 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 6 Preparing for the Performance Interview Old theories are becoming obsolete. Performance is everything. Create a supportive climate that involves the interviewee. Attack the problem, not the person. Providing regular feedback on a daily basis can avoid formal, once-a-year reviews that both parties dread. Understanding the Purposes of the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 7 Preparing for the Performance Interview There are no shortcuts to successful performance reviews. Be careful of judging what you cannot measure. Changing demographics have led to changes in methods and assumptions. Age will play an ever-greater role as baby boomers turn 50 and 60 in ever-greater numbers. Reviewing Rules, Laws, and Regulations

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 8 Selecting an Appropriate Review Model The PPS model focuses on competencies. A single competency is manifest in several different actions. A manager’s particular behavior is typically affected by several competencies. Person-Product-Service Model

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 9 Selecting an Appropriate Review Model The BARS model focuses on skills. Skills essential to a specific job are identified through a job analysis, and standards are set. Each job has specific measurable skills. Behaviorally Anchored Rating Scales (BARS) Model

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 10 Selecting an Appropriate Review Model The MBO model focuses on goals. All work is classified in terms of four major elements: inputs, activities, outputs, and feedback. The MBO model applies four criteria to each position: quality, quantity, time, and cost. Management by Objectives (MBO) Model Continued...

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 11 Selecting an Appropriate Review Model Do not consider too many objectives Beware of setting complex objectives. Anyone or anything that works can be measured. Management by Objectives (MBO) Model

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 12 Selecting an Appropriate Review Model Figure 9.3: MBO Performance Appraisal Model Insert Figure 9.3 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13 Selecting an Appropriate Review Model The UPI model focuses on performance and work requirements. Assess only what you can hear and see. Understand why performance is lagging. Use UPI in conjunction with other models. Reviews must recognize excellence as well as problems. Universal Performance Interviewing Model Continued...

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 14 Selecting an Appropriate Review Model Play the role of coach rather than evaluator or disciplinarian. Don’t turn a mole hill problem into a mountain. Hint and suggest before correcting. Think before commenting. Vague comments and suggestions may harm relationships and fail to improve performance. Universal Performance Interviewing Model

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 15 Selecting an Appropriate Review Model Figure 9.4: Six Key Words in the Universal Performance Interviewing Model Insert Figure 9.4 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 16 Selecting an Appropriate Review Model Figure 9.5: The Universal Performance Interviewing Model Insert Figure 9.5 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 17 Selecting an Appropriate Review Model The 360 approach involves multiple observers who interact with the employee to get as many views of a person’s performance as possible. The 360 approach uses a group feedback interview. Employ open questions and probe into answers. A plan for improvement is essential. The 360-Degree Approach

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 18 Selecting an Appropriate Review Model Advantages -- The single process is useful for both improvement and development. --Questionnaires and interviews provide objective data and feedback. --Raises and bonuses are not based on a single performance. --The employee has control over who gives feedback. --The employee reads, hears, and discusses the data so that it is more than numbers on a form. --Provides documentation for dealing with performance problems. The 360-Degree Approach

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 19 Selecting an Appropriate Review Model Disadvantages -- It takes a great deal of time and training. --It is costly. --It may give more feedback than some people can handle. --Style may be seen simply as “just the way I am.” --It may be seen as the employee’s turn to be shot down. --Follow-up coaching is necessary to assure that necessary changes occur. The 360-Degree Approach

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 20 Selecting an Appropriate Review Model Force choice ranks employees into group by grades. Organizations use a variety of percentage systems. The desire to have clear performance measurements gives this method some appeal. Disadvantages are that performance cannot be measured by numbers alone and the method creates an atmosphere of unfair competition among employees. Force Choice Distribution

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 21 Selecting an Appropriate Review Model Select the method best suited to your situation. All models and approaches have the same goal—improved employee performance. Review Model Summary

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 22 Conducting the Performance Review Interview Do your homework. Select and understand the perspective of the interview. Relationship influences both parties and the nature of the interview.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 23 Conducting the Performance Review Interview Climate and atmosphere are critical. Be prepared but flexible in opening the interview. Opening the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 24 Conducting the Performance Review Interview Use all of your listening skills. Feedback is central in performance interviews. Develop a true dialogue with the interviewee. Enhance trust and cooperation to avoid conflict. Strive for a balance between praise and criticism. Discussing Performance Continued...

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 25 Conducting the Performance Review Interview Be aware of potential biases. Know how to conduct performance interviews. Use question tools to gain and verify information. Discussing Performance

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 26 Conducting the Performance Review Interview Focus on the future and not the past. The interviewee must be an active participant. Review the last period’s goals before going on to new ones. Do not make the goals too easy or too difficult. Setting New Goals and a Plan of Action

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 27 Conducting the Performance Review Interview Close with the perception that the interview has been valuable for both parties. Closing the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 28 Conducting the Performance Review Interview Figure 9.6: Performance Appraisal Review Form Insert Figure 9.6 Here

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 29 The Employee in the Performance Review Do a self-evaluation before the interview. Approach the interview with a positive attitude. Avoid unnecessary defensiveness. A good offense is better than a good defense. Leave your temper at the door.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 30 The Performance Problem Interview The need for discipline has become a performance problem.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 31 The Performance Problem Interview Know what constitutes a just cause. Treat all employees fairly and equally. The punishment must fit the infraction. Determining Just Cause

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 32 The Performance Problem Interview Did the employee violate reasonable rules or orders? Was the employee given clear and unambiguous notice? Was the investigation timely and fair? Were all employees given equal treatment? Is there proof and documentation? Testing for Just Cause

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 33 The Performance Problem Interview Practice before conducting the real thing. Be prepared for common reactions and responses. What evidence do you have of the infraction? Distinguish between the severity of infractions. Learn why an infraction has occurred. Relational dimensions are critical in performance problem interviews. Preparing for the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 34 The Performance Problem Interview Uncontrolled anger can destroy an interaction. Timing of the interview may be critical. Hold the interview in a private location. With severe problems, consider obtaining assistance. Consider including a witness or union representative. Keeping Self and Situation Under Control

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 35 The Performance Problem Interview Deal with facts rather than impressions and opinions. Avoid unsupported accusations. Ask questions that draw out the interviewee. Focusing on the Problem

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 36 The Performance Problem Interview Be slow to draw conclusions. Do not verbalize conclusions during the interview. Avoiding Conclusions During the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 37 The Performance Problem Interview Conclude the interview in neutral. If discipline or termination is appropriate, do it. Delaying action may enable you to think more clearly about the incident. Apply all rules and actions equally to all employees. Closing the Interview

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Slide 38 Summary Evaluate an employee’s performance on the basis of standards mutually agreed upon ahead of time. Apply the same standards equally to all employees. Flexibility and open-mindedness are important keys in successful performance review interviews. The performance process must be ongoing.