4/00/ © 2000 Business & Legal Reports, Inc. BLR’s Human Resources Training Presentations Performance Appraisal Principles and Systems

4/00/ © 2000 Business & Legal Reports, Inc. Goals Know how often formal appraisals are conducted. Learn how to conduct an appraisal without giving the appearance of discrimination. See how much preparation should go into each appraisal. Find out how setting new objectives should be handled. Take a look at some special situations you may run into and how to treat them.

4/00/ © 2000 Business & Legal Reports, Inc. Frequency of Appraisals Six-month and annual evaluations More frequent appraisals for new hires Employees’ anniversary dates

4/00/ © 2000 Business & Legal Reports, Inc. Employee Participation Self-evaluations encourage: – Involvement – Buy in – Preparation

4/00/ © 2000 Business & Legal Reports, Inc. Appraisal Forms Consistency Objectivity Thoroughness

4/00/ © 2000 Business & Legal Reports, Inc. Appraisal Basics Separate elements Entirety Nondiscriminatory

4/00/ © 2000 Business & Legal Reports, Inc. Advance Planning Select a private place, free of distractions. Avoid back-to-back appraisal meetings. Give the employee advance notice of the upcoming appraisal.

4/00/ © 2000 Business & Legal Reports, Inc. Preparing for the Interview Notify employee of time and place. Ask employee to gather pertinent information. Go over pertinent records and material. Ask other managers and supervisors for their opinions.

4/00/ © 2000 Business & Legal Reports, Inc. Opening Comments Decide whether you will use small talk or not. Tell why this meeting is taking place. Explain how the interview will proceed. Encourage participation.

4/00/ © 2000 Business & Legal Reports, Inc. The Employee’s Self-Assessment Ask employee to go over goals from his or her last evaluation. Determine whether goals have changed along the way. Have employee clarify any statements you don’t understand.

4/00/ © 2000 Business & Legal Reports, Inc. The Appraiser’s Assessment Discuss strengths and weaknesses. Note points on which you and the employee disagree.

4/00/ © 2000 Business & Legal Reports, Inc. Joint Assessment For a satisfactory performance, offer praise and point out a few areas in which there could be improvement. For differences of opinion, try to reach some level of agreement with the employee.

4/00/ © 2000 Business & Legal Reports, Inc. Setting New Objectives Set up an action plan. – How can the employee build on strengths? – How can the employee improve weaknesses? – What if problems are encountered along the way towards achieving these goals? – What externals might affect the employee’s progress?

4/00/ © 2000 Business & Legal Reports, Inc. Legal Considerations Make no promises. Base pay on job-related factors. Avoid discrimination charges.

4/00/ © 2000 Business & Legal Reports, Inc. Legal Considerations (cont.) Keep up-to-date job descriptions. Give employees the opportunity to note their comments on their evaluations.

4/00/ © 2000 Business & Legal Reports, Inc. Special Situations The employee who is failing

4/00/ © 2000 Business & Legal Reports, Inc. Special Situations (cont.) The employee who agrees too quickly

4/00/ © 2000 Business & Legal Reports, Inc. Special Situations (cont.) The angry employee

4/00/ © 2000 Business & Legal Reports, Inc. Special Situations (cont.) The “silent” employee

4/00/ © 2000 Business & Legal Reports, Inc. Special Situations (cont.) The employee who wants too much

4/00/ © 2000 Business & Legal Reports, Inc. Quiz 1. What is the down side to giving all employee appraisals at the same time? 2. It is a good idea to allow an employee to write a response if he or she disagrees with the appraisal. True or False 3. Name three overall objectives of a performance review. 4. How can you get employee feedback during an appraisal meeting?

4/00/ © 2000 Business & Legal Reports, Inc. Quiz (cont.) 5. An employee appraisal meeting is a good time to make promotion promises. True or False 6. If an employee has a poor attendance record, but otherwise performs his or her job well, how should you review the attendance problem? 7. Where is a good place in your company to hold an appraisal meeting? 8. Name three steps you can take to help protect your company against charges of discrimination.

4/00/ © 2000 Business & Legal Reports, Inc. Quiz (cont.) 9. How does an employee appraisal help supervisors plan for the future? 10.When are top administrators and executives commonly reviewed in many companies, and why?

4/00/ © 2000 Business & Legal Reports, Inc. Quiz Answers 1.Across the board salary increases at the same time for all employees. 2.True. 3.Measure, improve, maintain. 4.Ask open-ended questions. 5.False (unless you have the authority and power to do so). 6.Rate each element separately.

4/00/ © 2000 Business & Legal Reports, Inc. Quiz Answers (cont.) 7.Private office or conference room. Make sure your conference room is available for the amount of time you may need. You do not want to rush the appraisal. 8.Communicate the performance criteria to employees well before the review. Train supervisors in effective procedures for merit rating. Have up-to-date job descriptions and evaluate accordingly.

4/00/ © 2000 Business & Legal Reports, Inc. Quiz Answers (cont.) 9.Provides strategic planning to identify future training needs. 10.End of the year. Their salaries and bonuses are closely related to the profit status of the company.