1. Conducting Effective Performance Appraisals
Pen Bay Healthcare
December 2010

2. Today’s Objectives
Participants will understand PBH expectations concerning conducting annual employee performance evaluations
Participants will become familiar with all facets of conducting effective performance appraisals

3. Objectives of an Appraisal Program
To provide employees with the opportunity to discuss performance and performance standards with their supervisor
To provide the supervisor with a means of identifying the strengths and areas in need of improvement concerning an employee’s performance

4. Appraisal Program Objectives (cont’d)
To provide a format from which the supervisor can recommend a specific program designed to help an employee improve performance
To provide a basis for salary recommendations (not applicable at PBH)

5. Qualifications of Appraisers
Opportunity to observe. The appraiser must be in a position to collect relevant information about the person being evaluated… through personal observation, reviewing records, or talking with others who have direct knowledge of the person

6. Qualifications (cont’d)
Understanding of Job Requirements. A clear understanding of job requirements and standards of satisfactory performance is required.
Having an appropriate point of view. One’s point of view influences which observed performance is considered desirable or undesirable.

7. Setting Standards for Honest and Consistent Reviews
Position Descriptions
Up to Date, Complete & Accurate
Clearly Defined
Essential Job Responsibilities
Behavior Standards (RESPECT)
Minimum Qualifications

8. Setting Standards for Honest and Consistent Reviews(cont’d)
Rating Systems
Need to be supported with substantive and specific narrative
Goals
Use SMART

9. Establishing Performance Criteria
Employee’s major accomplishments during the time frame of the evaluation
Goals accomplishment
Problems encountered regarding goals accomplishment
Problems to avoid in the future (coaching)

10. Establishing Performance Criteria (cont’d)
Employee’s strengths
Areas in need of improvement

11. Scheduling the Review
Schedule the review and notify the employee 10 days to two weeks in advance.
Ask the employee to prepare for the meeting by reviewing his or her performance, job objectives, and development goals.
Answer preliminary employee questions
Discuss meeting agenda with the employee.

12. Prepare for the Review
Plan for what is to be discussed, including specific facts and examples.
Establish meeting objectives and agenda.
Include time to discuss the employee’s concerns and questions.
Allow sufficient time for the session.

13. Preparation (cont’d)
Plan for open dialogue - opportunity to review performance, consider lessons learned, progress for year and establish goals and objectives for next year.
Lay out plan for performance discussions - collect and review notes, statistics, counseling and performance based examples.

14. Preparation (cont’d)
Prepare to discuss the full range of issues which may arise in the performance evaluation discussion
Don’t exhibit defensiveness - if employee criticism is justified due to management failure or lack of resources, accept, and move on to the next area of review

15. Preparation (cont’d)
Respect confidentiality of the review discussion when possible. If unlimited confidentiality cannot be promised, advise employee accordingly.

16. Create a Proper Setting and Climate
Select a location that is comfortable and free from distractions.
Take action to eliminate unannounced visitors and telephone calls.
No cell phones, pagers, s
Ensure that the selected location will encourage a frank and candid conversation.
Avoid “a let’s get this over with” attitude.

17. What to Cover in a Formal Review
Review both quality and quantity of work
Discuss identified trends
Discuss how specific tools or training have affected job performance
Identify specific tools or training that can be used to improve job performance

18. What to Cover in a Formal Review (cont’d)
Provide feedback on matters of performance, behavior and interpersonal relationships
Review and evaluate progress concerning goals set at prior review
Set goals for the next review period

19. High Performers Goal - build an emotional bank account
Key Message for high performers is to re-recruit them
“I value you. I do not want you to leave. Is there anything that might cause you to think about leaving? What can I do to help you and your department to achieve your goals?”

20. Middle Performers
Goal - Invest in developing these employees and help them become high performers
Reassure the employee - let her/him know she/he is valued
Support - describe good qualities
Coach - cover a development opportunity (one area only)
Support - reaffirm good qualities

21. Low Performers
“No Surprises” - do not wait until the annual performance evaluation to inform an employee that she/he is not performing satisfactorily
Review documented unsatisfactory performance/behavior with the employee and advise her/him of her/his progress

22. Low Performers (cont’d)
Goal - “manage up or manage out”
Do not start the meeting out on a positive note
Describe what has been observed
Evaluate how you feel
Show what needs to be done
Know the consequences of continued same performance and document

23. Low Performers (cont’d)
Cite specific observed examples - past incidents or lack of meeting goals and impact on employee, team, customer, department etc.
If necessary, advise employee that the development of a performance improvement plan will be necessary and set a separate meeting to do this

24. Goal Setting
Mutually define and establish specific goals/objectives for the evaluation period
Create mutually agreed time frames to review progress on goals
Communicate changes or redirection of goals in a timely manner

25. Goal Setting (cont’d) Use SMART goal Criteria S pecific M easurable
A chievable
R elevant
T ime-Bound

26. Goal Setting (cont’d)
Align goals with the PBH’s strategic and business plan
Establish mutually agreed to goals which add value
Recommend and recognize behaviors that are aligned with organizational business plans
Establish regular review dates

27. PBH Rating Standards Outstanding Above Expectations Achieves
Below Expectations
Unsatisfactory

28. Narrative
Narrative is required whenever there is an Outstanding or Unsatisfactory rating
Narrative should be specific to fully explain the rating

29. Rating Perils
Halo/Horn Effect - evaluator allows one positive or negative performance dimension to influence all ratings
Central Tendency - lack of rating differentiation between employees
Leniency - avoids honest ratings to avoid conflict
Recency - narrow focus on recent events

30. Rating Perils (cont’d)
Similarity/Like Me - favorable rating to employees who have similar values or interests as the rater
Constancy - rate employees via comparison or rank order rather than against established objective criteria

31. Avoiding Other Rating Perils
Ensure that statements are objective
Consider the totality of the employee performance
Keep good records/documentation to ensure the use of specific examples
Establish regular review dates concerning established goals and unresolved performance & behavior issues

32. Avoid Other Rating Perils (cont’d)
Discuss specific performance issues and behaviors objectively
Consider the legal impact of inaccurate performance ratings
Maintain clear and open communication channels

33. Avoiding Other Rating Perils (cont’d)
Specific comments should avoid any connotations which are connected to: age, race, sex, sexual orientation, religion, national origin, veteran status or a specific disability

34. Timeline
HR will Forward Modified Job Descriptions to Employees for Signatures on December 22, 2010
Performance Appraisals Forwarded to Managers on January 3, 2011
Performance Appraisals Due to be Completed by March 31, 2011

35. Q & A
Questions?
Comments?