1. Performance Management & Appraisal

3. Topic Outline Defining performance management & appraisal
Performance appraisal objectives
Benefits of performance appraisal
Pitfalls & Problems with performance reviews
Styles of appraisal interviewing
Guidelines for conducting PA interview: Before, during & after
Summary of performance management and appraisal issues
October 2002
Dr A McCarthy, NUIG

4. Performance Management
Performance management involves:
The establishment of performance standards (organisational, group and individual)
Monitoring of actual performance &
The construction of action plans to review standards, deal with problem areas and take appropriate steps to improve performance.
October 2002
Dr A McCarthy, NUIG

5. PART - I Performance Appraisal
Definition
Systematic approach to evaluate -
employee performance,
characteristics and/or potential
With a view to assisting decisions in a wide range of areas such as -
pay, promotion,
employee development and
motivation.
October 2002
Dr A McCarthy, NUIG

6. October 2002
Dr A McCarthy, NUIG

7. Performance Appraisal Objectives
To review past performance
To facilitate career counselling/development
To improve future performance
To set performance objectives
To identify training needs
October 2002
Dr A McCarthy, NUIG

8. Performance Appraisal Objectives (cont’d)
To aid salary review
To improve communications
To assist manpower planning/recruitment
To assess potential
To provide feedback
October 2002
Dr A McCarthy, NUIG

9. Performance Appraisal Benefits
Organisational level:
Vertical integration - linking and aligning business, team and individual objectives
Functional integration - linking functional strategies in different parts of the business
HR integration - linking different aspects of HRM e.g. organisational development, human resource development, compensation and benefits, manpower planning
October 2002
Dr A McCarthy, NUIG

10. Performance Appraisal Benefits
Management (supervisor) level:
Opportunity to learn about employee’s future intentions in the organisation (i.e. career expectations
Opportunity to clarify and reinforce important goals and priorities
Opportunity to motivate staff
Opportunity to receive feedback about his/her ability as a manager and the employee’s concerns, ideas etc. about the job
October 2002
Dr A McCarthy, NUIG

11. Performance Appraisal Benefits
Individual (employee) level:
Translates corporate objectives into individual goals
Allows individual to receive feedback on how his/her performance measure against expected performance
Encourages the generation of an individual development plan
Two-way communication and involvement
October 2002
Dr A McCarthy, NUIG

12. Problems & Pitfalls
Halo Effect
A tendency to rate high on one quality which may influence a higher than deserved rating on another quality, such as rating someone high because you personally like him/her.
Opposite of
A rating of unsatisfactory on one quality may influence a lower than deserved rating elsewhere, such as rating someone low because you do not like his personal style.
Central Tendency
Rating performance as average or around the midpoint. This is the most common and serious of the rater tendencies.
Recent Behaviour
Basing the rating on recent performance on a project rather than overall performance throughout the past year.
Spill over effect
Allowing past performance appraisals to unjustly influence current ratings.
Status Effect
Over-rating employees in jobs held in high esteem and under-rating employees in lower level jobs or those held in low esteem.
Same as me
Rating an employee higher than deserved because of similar personality characteristics as the rater.
Different from me
Rating an employee lower than deserved because of dissimilar personality characteristics from the rater.
Personal bias/
prejudice
Rating affected by national origin, age, sex, race, religion, physical characteristics, manner of speech, etc.
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

13. Problems & Pitfalls Subjectivity Lack of two-way Communication
Mutually agreed outcomes?
Pre-determined rating?
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

14. Styles of appraisal interviewing
Tell & sell
Appraiser is directive and acts as judge who communicates evaluation and instructs steps for improvement
Tell & listen
Appraiser is consultative and acts as a judge/counsellor who communicates evaluation, listens to response and deals with reactions
October 2002
Dr A McCarthy, NUIG

15. Styles of appraisal interviewing (cont’d)
Joint problem-solving
Appraiser is participative, facilitating
two-way discussion, jointly tackles
problems and jointly agrees remedial action.
October 2002
Dr A McCarthy, NUIG

16. Conducting performance appraisal interviews
The following section outlines the key issues which result in effective performance appraisal interviews:
Before
During
After
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

17. Before the Appraisal
Reflect on purpose
What do you want to achieve?
Your objectivity?
Mutually agree time and place (interruptions, seating etc.)
Joint preparation
past performance, future objectives
Plan interview structure
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

18. During the Appraisal
Establish rapport, ice-breaker
Outline interview objective and structure
invite input
Clear note-taking
Self-reflection synopsis
Start with positives
Active listening, questioning, body language etc.
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

19. During the Appraisal (cont’d)
Facts vs. personality
Address each issue as per appraisal form
Identify training needs & agree development plan
Keep objectives SMART
S - specific
M - measurable
A - agreed
R - realistic
T - time-bound
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

20. After the Appraisal Follow-up on action items
Self-reflection to see where you can improve
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

21. Performance Evaluation & Documentation
Criteria for Evaluation
Accuracy
Behaviour
Completeness
Consistency
Efforts
Individualized
Measurable
Results
Timeliness
Overall rating
_______________________________________________________________
Once the evaluation form is completed, it is recommended that you review it with your immediate higher-up before meeting with the employee to ensure both levels of management are in agreement regarding the employee’s performance.
October 2002
Dr A McCarthy, NUIG

22. PART - II Potential Appraisal
(To be done in by the HOD/Unit Head with the reporting authority of the appraised & Not to be shown to the assessed)
Definition
Process of assessing -
Managerial potential of the employee,
Deals with the question of Whether or not they have the ability to –
Higher Positions in the future &
More responsibility
October 2002
Dr A McCarthy, NUIG

23. Potential Appraisal Objectives
Identify high potential employees,
Determine the promotability of an individual to a higher position
Chalk out his career plan
Build an organizational competency model and
Design human resource processes to retain them
October 2002
Dr A McCarthy, NUIG

24. Dealing with workhorses
Too Tricky
Some can perform very well on routine tasks but have limited potential. Hence, their promotability is difficult and this creates frustrations for the employees. If promoted, they are unable to perform higher-level jobs and this too creates problems both for the individuals and the organization and we may end-up losing a “good worker”.
Potential appraisal is more intricate and complex vis-à-vis Performance appraisal.
October 2002
Dr A McCarthy, NUIG

25. Appraising the Potential
Areas of Focus
A. Rate employee according to his past achievements on the following grid.
Low Performance
High Performance
Low Potential
High Potential
October 2002
Dr A McCarthy, NUIG

26. Appraising the Potential
Areas of Focus
B.     Rate him/her according to his overall perceived potential
C.     Is he/she capable of being promoted to higher Position?
                    i.            If Yes, to which position & when
____________________________________________________
                   ii.            If No, why not?
October 2002
Dr A McCarthy, NUIG

27. Appraising the Potential
Areas of Focus
D. Could he/she handle more responsibilities at the same/higher position?
  i.    If yes, what kind of responsibilities he/she can handle
____________________________________________________
ii.   If No, why not?
October 2002
Dr A McCarthy, NUIG

28. Appraising the Potential
Areas of Focus
E. What are the training needs of the employee? How do you plan to train him/her? What support do you expect from Human Resource Department?
  ________________________________________________
________________________________________________
F. What would be his/her “Career Path”?
October 2002
Dr A McCarthy, NUIG

29. To summarise
PA = The evaluation of actual job performance against previously set and agreed performance goals should take place at agreed time intervals.
It requires careful preparation by the appraiser which should facilitate a constructive dialogue between appraiser and appraisee.
Actual performance is evaluated in terms of targets set, strengths and weaknesses and action plans.
_______________________________________________________________
October 2002
Dr A McCarthy, NUIG

30. To summarise (cont’d)
The communication flow should be two-way. Interviewee/appraisee should have plenty opportunity to discuss issues
The approach should be participative, with praise and criticism given as appropriate.
Performance targets for the future should be agreed.
October 2002
Dr A McCarthy, NUIG

31. October 2002
Dr A McCarthy, NUIG