1. Human Resource Management 2
Performance Management and
Appraisal interviewing
Nick Kinnie
But outside work it’s been said we live in the audit society – greater emphasis on setting targets, collecting data, assessing performance against targets, constructing league tables – schools, hospitals, universities, best companies to work for – some say this an Anglo Saxon trait or an Anglo American trait
Within this context lets have a look at PM

2. Objectives
To recall why performance management is important – in theory and practice
To understand the purpose and nature of the appraisal interview in the performance management process
To examine the different approaches and styles of appraisal interviews
To give an opportunity to gain experience in the practical aspects of appraisal interviewing
To understand why performance management is important – in theory and practice
To understand the role of the appraisal interview in the performance management process
To examine the different approaches and styles of appraisal interviews
To give an opportunity to gain experience in the practical aspects of appraisal interviewing

3. Performance Management and Appraisal interviewing
Introduction – recall the uses, objectives and problems of Performance Management
Performance appraisal - what is appraised?
Appraisal interviewing - styles, structure and skills
Interviewing practice - some guidelines
Summing up
Introduction – recall the uses, objectives and problems of Performance Management
Performance appraisal - what is appraised?
Appraisal interviewing - styles, structure and skills
Interviewing practice - some guidelines
Summing up

4. Introduction Performance Management …
has a critical role to play in organisational performance
is widespread (found in nine out of ten firms)
is vital to all employees
is increasingly carried out by line managers
is one of the most difficult tasks managers have to carry out
(Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)
Performance Management …
has a critical role to play in organisational performance
is vital to all employees – it involves giving and receiving feedback – this is a highly sensitive activity – the slightest word or turn of phrase can make a big difference
is widespread Just over a third of these systems were new (developed since 1997)
is increasingly carried out by line managers – as HR departments delegate this task to other managers – often unprepared for these roles sometimes have no training at all
is one of the most difficult tasks that managers have to carry out

5. What do we mean by performance management?
‘the policies, procedures and practices that focus on employee performance as a means of fulfilling organisational goals and objectives’
(Lowry (2002) in Marchington and Wilkinson (2005: 187-8))
‘establishing a framework in which performance by individuals can be directed, monitored, evaluated and rewarded, and whereby the links in the cycle can be audited’
(Mabey and Salaman (1995) in Torrington et al (2005: 261))

6. Performance Management: why is it used?
Key role in linking the goals of the organisation to the individual (vertical integration)
Gives a synergy with other HR practices eg reward systems (horizontal integration)
Seeking to improve performance at an organisational and individual level
Ritualistic aspects
Key role in linking the goals of the organisation to the individual
Provides consistency with other HR practices eg reward systems
Allows feedback to be communicated
Ritualistic aspects

7. How does a performance management system look?
Career planning
Development
Reward

8. Objectives of Performance Management Systems
Set objectives and review performance against objectives/standards
Personal development: identify training and development needs and potential
Linking team and organisational objectives
Recall its widespread uses – 75% use PA in some form
Randell
Process whereby current performance in the job is observed and discussed for the purpose of adding value to that level of performance
A&B appraisal has more top down connotations and review feels rather more joint
Review past performance against objectives/standards –
looking back over last period – often 12 months and considering performance against standards or against targets which were set
Source: Performance Management Survey Report September 2005 CIPD

9. Performance Management: some problems
Conflicting purposes: judge/coach dilemma
Role of the appraiser: competence, motivation and values
Role of the appraisee: promotion and development
Appraiser/appraisee relationship: quality is key
Validity of the criteria: are they related to the job?
What is the quality of the data collected?
Impact of performance appraisal on performance
Conflicting purposes – different parties may have different agendas – most basic of all is referred to as the judge coach dilemma – the same person who is coaching you and asking you to be open and honest about weaknesses etc is also judging you – perhaps for promotion or for a pay rise- this does not encourage openness
Role of the appraiser – are they competent, motivated, what are their values, do they dislike the task, what are their own motives – get ‘their people’ promoted? – Halo, horns, stereotyping manipulating system to get rid of people doppleganger are they like me? Often ill prepared, they talk too much give information based on third party complaints rely on their gut feeling
Role of the appraisee – seeking promotion, increase in pay or better job or wanting feedback for development and wanting someone to talk to openly – may systems will separate development – might be a mentor from appraisal
Appraiser/appraisee relationship – quality of the relationship is key – must be consistent, how recent is the evidence, how trustworthy

10. Conflicting aims Organization Individual
Seeking the development of individuals through coaching
Seeking valid performance feedback for development
Seeking information on which to base reward and promotion decisions
Seeking rewards and promotion
= conflict

11. Performance Appraisal: What is appraised?
Non-criteria or evidence based – personal evaluation
Rating traits – personal characteristics
Objectives – performance compared with targets
Competencies/behaviours – displayed and desired
3 types of criteria based systems – but most basic of all is where there are no criteria at all – staff are simply ranked by their manager without any criteria or evidence – these are my best people and I will reward then – either with payment or better jobs – simple, quick and informal but highly subjective, could be biased, discrimination and no evidence
Traits –
goes back to ideas that good leaders and managers have certain observable traits – not based on any evidence – often subjective assessment of performance
Individual characteristics using tick boxes or comment boxes – how helpful, how reliable
Ads simple cheap little training
Disads
No criteria or evidence, biased inconsistent is there a link to performance? ?

12. Types of interaction Enquiry Selection Attitude survey
Health screening
Exposition
Presentation
Lecture
Briefing
Joint problem solving
Appraisal
Counselling
Discipline
Conflict resolution
Negotiation
Arbitration
Torrington et al (2005: 71)

13. Performance Appraisal: interviewing styles
Tell and sell: appraiser acts as a judge – tells the appraisee the result and how to improve
Tell and listen: communicates outcomes and listens to reactions
Problem solving: appraisee encouraged to discuss problem areas and consider solutions
(Maier, N. (1976) The Appraisal interview – the three basic approaches)
Tell and sell: appraiser acts as a judge – tells the appraisee the result and how to improve appropriate for junior or inexperienced staff who need guidance and are willing to accept this – dangers – will not listen – disagree – leads to argument and disaffection – assumes limited ability to reflect
Tell and listen: communications outcomes and listens to reactions – better chance of commitment – may be used cynically – used for more reflective people – better for open ended jobs where
Problem solving: appraisee encouraged to discuss problem areas and consider solutions – better chance of commitment to the problem and the solution, takes time, requires ability to reflect and consider consequences

14. Performance Appraisal: interview structure
Preparation
Both parties need to prepare
Appraiser: What style to adopt? gather the evidence from all parties
Appraisee: self assessment
Structure
Purpose and rapport – agree purpose and structure
Factual review – of the known facts
Preparation
Form of the interview
Self appraisal
Gathering the evidence
Structure
Purpose and rapport
Factual review
Appraisee views

15. Appraiser views - asks questions, offers views and comments
Appraisee views – comments on the last time period (gone well/what could be improved/likes and dislikes)
Appraiser views - asks questions, offers views and comments
Problem solving – how can any differences be resolved?
Objective setting – what actions should be taken, by whom and on what time scale
(Torrington et al, 2005: 343)
Appraisee views
Appraiser views
Problem solving
Objective setting

16. Performance appraisal: interviewing skills
Ask the right questions: open, probing, follow up and reflective
Engage in active, careful listening to all forms of communication
Provide feedback based on evidence and examples
Avoid: a focus on failure, control by the appraiser, ends with disagreement
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
Ask the right questions: open, probing, follow up and reflective
Active, careful listening to all forms of communication
Feedback based on evidence and examples

17. Ideally an appraisal meeting is where…
Appraisees do most of the talking
Appraisers listen actively and provide feedback
Scope for reflection and analysis – an exchange of views
Performance is analysed not personalities
Whole period is reviewed not just isolated incidents – evidence based
Achievement is recognised and reinforced
Identify areas for improvement – set agree objectives
Ends positively with agreed action plans to improve performance
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
Appraisees do most of the talking
Appraisers listen actively and provide feedback
Scope for reflection and analysis – an exchange of views
Performance is analysed not personalities
Whole period is reviewed not just isolated incidents – evidence based
Achievement is recognised and reinforced
Identify areas for improvement – set agree objectives
Ends positively with agreed action plans to improve performance
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)

18. Summing up
Key strategic and individual role of performance management – new developments
Key task for line managers but difficult to carry out successfully
Powerful influence on behaviour – both positive and negative
Requires careful support and implementation by line managers
Recent developments – more widespread use of PMS – very powerful but needs to be handled very carefully – cult of the amateur around – appraisers need to be trained and developed if it is to be a success.
One of the ironies that as PM becomes more widely used we become more aware of its short comings – but in the right hands it can be a powerful tool for improving employees well being and performance at work, in the wrong hands can have a negative effect.
Key strategic and individual role of performance management
Key task for line managers but difficult to carry out successfully

19. Features of Performance Management Systems
% use
% effective
Individual annual appraisal 65 83
Objective setting and review 62 82
Personal development plans 81
Career management 37 47
Coaching 36 46
Performance related pay 31 39
Competence assessment
Self appraisal 30 53

20. % use % effective Twice yearly 27 38 360 degree 14 20 Continuous
Subordinate 11 17
Rolling 10 21
Peer 8 12
Competence related 7
Team 6
Contribution 4
Team pay 3 5
Source: Performance Management Survey Report September 2005 CIPD