1. Professor Dr Christoph Demmke, HRM-Group, 7-8 May 2007
Performance Appraisal and Performance Measurement in the Member States of the EU - Main results of DG Study -
Professor Dr Christoph Demmke, HRM-Group, 7-8 May 2007

2. Most important results in a nutshell
Increasing important of performance assessment systems
Trend towards individual approaches – away with standardised approaches
Better management but more workload, more bureaucracy
More leadership challenges
Still many difficulties
Europeanisation trend but need to consider own administrative culture when implementing new systems

3. In the past PA´s of minor importance because....
Standardised systems with many performance criterias – difficult to measure performance
Systems „mathematical“ - Need for „Objectivity turned into Subjectivity“
PA had no consequences – neither on pay, nor promotion, nor carerr planning
Often too good appraisals in order to avoid problems
No time, no motivation on both sides
PA not taking seriously, often not taking place
Lack of knowledge and professionalism (attribution problems - what is influencing indiv. performance) ?
No or not sufficient training
Often hard and soft objectives in one appraisal
Standardised approach and Intransparency

4. Times are changing - PA is becoming an important instrument
In more countries no automatic pay progression anymore (Seniority). Appraisal is linked to pay progression.
In more countries systems are linked to Performance Related Pay and other (immaterial) rewards
Trend (but weaker) towards link between performance assessment and Job Security
More direct impact on Personnel Planning (Training)
Trend away from standardised approaches to individual approaches (Performance contracts, Annual Objectives)
Decentralisation of more responsibilities to (line) managers
More categories of staff are appraised
Appraisals taking place more frequently

5. Is the outcome of the appraisal directly linked to the determination of performance-related pay (bonuses) (in central administration)?

6. When do the appraisals take place?

7. Centralised and Decentralised HR policies in EU-Europe, Demmke/Hammerschmid,Meyer, 2006

8. Consequence of decentralisation of responsibilities and introduction of indiv. performance agreements
„Individidualisation“ trend. Increasing diversity of PA systems – from organisation to organisation - mobility problems ?
The end of standardised approaches - more difficulties in comparing performance ?
Tendency towards individual performance contracts - difficulties in setting objectives and measuring performance based on perf. objectives?
Middle managers have more responsibilities. They must implement PRP after having carried out PA – can they cope with their tasks?

9. Trend towards linking job performance to job-security
Trend towards linking job performance to job-security? Yes, but differences remain
Only by disciplinary legislation (D, Cyp, Lux, Ml, P, ESP, IRL, I (partly)
Yes, in principle – result of evaluations (EST, B, P, LT, SL, SLK,F,GR, HUN)
Same as in private sector (DK, FIN, SW, UK)

10. Do you think performance management systems are managed more professionally than 10 years ago?

11. Better management means
More information distributed on how to carry out appraisals
Appraisals are carried out more systematic and more frequently
More categories of staff are evaluated
More training on appraisals
More pressure for more communication between superior and employee

12. Generally speaking, would you agree that the introduction of new appraisal systems will produce more or less bureaucracy?

13. What does „bureaucracy“ mean? – three representative answers
Case Slovenia: „It demands a lot of time and intellectual efforts to set objectives, to transform them into concrete tasks, to discuss them with employees. Afterwards the work must be checked and evaluated...“
Case Austria: 2Though annual staff appraisals are a useful instrument, they result of course in an increasing workload; all appraisals have to be prepared carefully and the specific interests and skills of each member as well as options for carerr development have to be discussed“
Frankreich“ More bureaucracy s´il faut entendre par là une plus grande individualisation du management et un meilleur suivi des agents...“

14. Do you think the workload of those involved in carrying out appraisals is increasing or decreasing?

15. More workload - What Managers are expected to do ? UK-Survey (2007)
Managers should assess both performance against objectives and what behaviours are being demonstrated
Managers should discuss leadership and people management abilities
Managers and jobholders should discuss the objectives agreed and whether they should be revised
Managers should review priorities
Managers should give and record feedback
Managers should improve people management
Managers need to make time to discuss development needs, longer term career aspirations and options

16. Managers and their responsibilities
More duties – too little incentives and motivation?
Most important challenges: need for more training, skills in setting objectives and measuring performance, motivation of superiors, too high workload

17. Judging by the experience in your administration, what are the most important challenges in the daily management of the personnel appraisal system?
Ability to measure performance
Availability of performance information
Simplification of systems
Motivation of superiors
Motivation of staff
Separation of hard and soft objectives
Informing about the danger of subjectivity
Avoid ratings that are too high
Management issues
Ability to set objectives
Never 1 2 3 4
Frequently
Informing and training staff
Convincing staff
Training managers
Time resources of managers 5 6

18. The Leadership challenge
Leaders need better incentives to carry out appraisals more professionally
Too little motivation to carry out a proper appraisal.
Often, appraisals on top of work, no time, too little training
Superiors overestimate their capacities in carrying out appraisals.
How can superiors and employees be better motivated to carry out appraisals in more professional ways?

19. Evaluation on the basis of Performance contracts, annual objectives etc
More and more civil servants are evaluated on the basis of agreed performance contracts and annual objectives (SMART).
Another problem is that objectives are changing very frequently. Work is continously influenced by political and external changes
Finally indiv. performance is influenced by many external factors.

20. What are the most important criteria in
the performance process?
Ability to measure performance
Other
Quantitative criteria
Qualitative criteria
Not important 1 2 3 4
Very important
Reaching annual objectives
Competency criteria
Personal criteria
Leadership criteria 5
Less important

21. What are the most important challenges in setting and agreeing upon annual objectives (between employees and their superiors)?
Ability to measure performance
Workload is too high
No experience in setting objectives
No training in the setting of objectives
Culture is based on the principle of hierarchy
Not important 1 2 3 4
Very important
Tasks and obligations changing rapidly
Lack of trust between superiors/employees
Continuous political influence on work
No motivation on both sides 5 6

22. Performance contracts, annual objectives
Agreeing on perf. objectives requires a trustful working relationship with the superior, cooperative relations, time and trust, clear and realistic objectives, knowledge of the work place etc.
However: Often, work takes place in a hierarchical and bureaucratic atmosphere. Work plans and objectives are NOT set in a cooperative process – can bring negative effects on motivation

23. Individual Performance Contracts are not simply good – or bad
Individual Performance Contracts are not simply good – or bad. Pro´s and con´s
Conformity with flexibilisation trend in HRM
May lead to more communication between superior and employee
May enhance indiv. and org. performance
May enhance individual commitment
May bring fairer pay
Objectives often not set in a cooperative process
More difficulties in comparing performance
Difficulties in setting and measuring achievement of objectives
Often, too complex objectives – difficult to measure
Brings individualistion – difficult role for Trade Unions
Possibility for unfair pay
Need for good management skills
Work Priorities change frequently

24. Experiences with Performance Contracts and Annual Objectives, e. g
Experiences with Performance Contracts and Annual Objectives, e.g. SMART.
The more hierarchical an administration, the more difficult it is to introduce new participative instruments (mid-year reviews, annual interviews etc.)
In these cases, annual objectives are „ordered“ but not agreed upon

25. Good and bad news: More evaluations bring more evidence – the case of discrimination
Positive or negative discrimination should be avoided but difficult to do in practice.
....women,
....part-timers,
....top-managers,
....ethnic minorities,
....disabled persons.

26. Do you think the following groups are – unintentionally – evaluated (rated) differently?
Ability to measure performance
Women
People with disabilities
Never 1 2 3 4
Frequently
Top officials
Older employees
Ethnic minorities
Part-time employees 5 6

27. Appraisal and Age (T. Borel, Suisse Federal Administration,2004)

28. Paradox – Employees want changes but get critical once measures are implemented
Nobody wants to go back to old centralised systems
Employees agree (in the first instance) with the introduction of PRP and indiv. Performance Contracts but do not trust new performance appraisal systems
High percentage of employees who are dissatisfied

29. Acceptance of systems
Higher percentages of Senior officials accept performance assessment systems than lower categories of staff (Mercer Studies in Ireland 2004, 2005)

30. 2003-2005 Study Evulation of annual objective setting Dont know
Very negative
Negative
Rather negative
Rather positive
Fairly positive
Very positive

31. Often appraisals focus on technical issues (how to draft an appraisal formular?, number of notes, criteria etc) but.....
Management issues (Time, Trust, Motivation, Communication, Integrity, Professionalism, Skills - how to carry out appraisals,) are much more important

32. In order to avoid a “too-good” rating, do you apply a quota system?

33. What are other common challenges?
Need to simplify systems but difficulties in practice
More resources needed (for training, time needed for communication, setting objectives)
How to cope with higher demands? (individualisation of objectives etc, need to separate hard and soft objectives)

34. Europeanisation ? Convergence in PA and PM?
Comparable experiences with PA
Many similar reform trends
Similar reform results
But: Member States reform systems within their own contexts
New PA systems and PM systems are linked to national system and national organisational structures
PA systems in career systems are more designed towards promotion whereas in position systems towards pay
High degree of decentralisation allows for many different approaches (as regards notes, objectives, forms, assessment methods and criteria etc.)
Systems become more different the more the analysis concerns detailed issues.....