1. Performance Appraisal and Managing the Outcomes of Performance Appraisal
Supervision:
Concepts and Practices
of Management,
Second Canadian Edition
Hilgert, Leonard,
Shemko, and Docherty
© 2005 by Nelson, a division of Thomson Canada Limited

2. Learning Objectives
Define performance appraisal and clarify the supervisor’s role in the process.
Explain how often performance feedback should be provided.
Discuss the advantages of a formal performance appraisal system.
Explain the concepts and techniques in using a written employee appraisal form.

3. Learning Objectives
Discuss the process of conducting an effective appraisal meeting.
6. Discuss coaching as a follow-up to performance appraisal.
Identify the benefits of a promotion-from-within policy.
Discuss the supervisor’s role
in employee compensation
and outline the goals of an
effective compensation
program.

4. Performance Appraisal
A systematic assessment of how well employees are performing their jobs and the communication of that assessment to them.

5. Performance Appraisal
Regular feedback on performance is essential to improve employee performance and to provide the recognition that will motivate employees to sustain satisfactory performance.

6. Evaluation
Supervisor’s evaluation—the immediate supervisor is the best person to observe and judge performance
Peer evaluation—peers with close working relationships may know more than the supervisor about employee contributions
Self-evaluation—supervisors can supplement their judgments with a self-evaluation

7. Evaluation
360-degree evaluation—performance appraisal based on data collected from around the employee—from customers, vendors, supervisors, peers, subordinates, and so on.

8. Timing Performance Appraisals
Ongoing feedback throughout the year, both positive and negative, rewards good performance and fosters improvement.

9. Advantages of a Formal Appraisal System
Provide systematic judgments to support salary increases, promotions, transfers, layoffs, demotions, and terminations.
Means of telling subordinates how they are doing and of suggesting needed changes in behaviour, attitudes, skills or knowledge.
Help supervisors coach and counsel.

10. Value of Performance Appraisals
Who should be promoted?
Who should get merit raises?
What should be the raise differential?
Who needs training?
What training do they need?
Does an employee need coaching or discipline?
Do you have adequate documentation?

11. Performance Appraisal Process
Completing a written appraisal form
Conducting an appraisal interview

12. Some Measures of Performance
Safety
Aptitude
Adaptability
Quantity and quality of work
Ability to learn
Customer orientation
Appearance
Job knowledge
Timeliness of output
Positive and negative effects of effort
Dependability
Initiative
Ideas generated
Cooperation

13. Making It Fair
Not all raters agree on the meaning of “exceptional,” “good,” “fair,” etc.
Some supervisors may be more severe.
Some supervisors may be overly generous.
Supervisors should use performance standards.

14. Purpose for the Appraisal Meeting
Let employees know how they are doing.
Formally praise employees.
Help employees develop good future performance.
Explain opportunities for growth.
Explain behaviour that needs correcting and improvement.

15. Conducting the Meeting
Hold meeting shortly after appraisal form is completed. State the purpose of the meeting.
Review employee’s achievements.
Identify strengths.
Discuss areas that need improvement.
Limit criticisms to a few major points and mix in positive statements.

16. Difficult Responses You hired me. How can I be so bad?
You’re just out to get me.
You don’t like my lifestyle.
This evaluation is not fair!
I didn’t know that was so important. You never told me.
My job depends on getting good work from others.

17. Closing the Meeting
Be certain the employee clearly understands their ratings.
Agree on mutual goals.
Set a date to discuss progress towards goals.
Ask the employee to sign the form if required.
Review appraisals with managers or HR if required.

18. Improving Performance
Let people know what is expected.
Set clear and high goals.
Find out what you can do to help.
Supervise and coach employees so they can succeed.
Catch people doing something right.

19. Improving Performance
Give timely feedback.
Thoroughly document performance.
Solicit feedback about your own performance.
There is no substitute for daily performance feedback.

20. Coaching
Giving employees information, instructions, and suggestions relating to their job assignments and performance.
If you want your people to be high performers (winners), then you need to help them get there (coach).

21. Promoting
Most employees are more motivated when they see a link between excellent performance and promotion.
More interesting work
Higher pay and status
Better working conditions

22. Promoting from Within Seniority—length of service
Merit—quality of job performance
Ability—potential to perform higher-level tasks

23. Objectives of Compensation Program
Eliminate pay inequities
Establish sufficiently attractive pay rates
Conduct periodic employee merit ratings
Control labour costs
Reward employees for performance and improvement

24. Employee Incentives Pay for performance Piecework Skill-based pay
Suggestion plans

25. Employee Benefits Vacations with pay Holidays Retirement plans
Insurance and health programs
Tuition-aid programs
Employee-assistance programs