1. Copyright 2000 - South-Western College Publishing Module 15 - 1 PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT u Performance appraisal -- setting standards, informing employees, ratings and feedback. u Performance management -- “all of those processes led by managers to help employees perform as effectively as they can.”

2. Copyright 2000 - South-Western College Publishing Module 15 - 2 TEMPLATE

3. Copyright 2000 - South-Western College Publishing Module 15 - 3 GOALS OF PERFORMANCE MANAGEMENT u Improve employee performance u Develop people for promotional opportunities u Meet employee need for feedback u Ensure that employees are working toward organizational goals u Provide the data needed to make and defend important human resources decisions

4. Copyright 2000 - South-Western College Publishing Module 15 - 4 LEGAL ISSUES IN PERFORMANCE MANAGEMENT u Job-related or valid u Minimum subjectivity u Consistent application/procedural fairness u Instructions and training for appraisers u Forewarning

5. Copyright 2000 - South-Western College Publishing Module 15 - 5 THE PERFORMANCE MANAGEMENT CYCLE

6. Copyright 2000 - South-Western College Publishing Module 15 - 6 SETTING EXPECTATIONS u Review organizational and unit goals and individual performance expectations. u Identify duties,objectives, and projects. u Describe performance measures and standards. u Identify performance factors. u Develop a monitoring plan.

7. Copyright 2000 - South-Western College Publishing Module 15 - 7 GOOD OBJECTIVES ARE “SMART” u SSmart u MMeasurable u AAligned with organizational/unit goals u RRealistic and results-oriented u TTime-limited

8. Copyright 2000 - South-Western College Publishing Module 15 - 8 CONDUCTING THE INTERVIEW u Your attitude and preparation are critical. u Review the purpose of the interview. u Start out with the positives. u Stay objective. u Be honest. u Don’t blame -- discuss how to improve.

9. Copyright 2000 - South-Western College Publishing Module 15 - 9 CONDUCTING THE INTERVIEW u Do not discuss personality unless you can show a direct impact on performance. u Don’t use loaded words, e.g always, never. u Stay realistic. u Listen more than you talk. u Pay attention to your non-verbals.

10. Copyright 2000 - South-Western College Publishing Module 15 - 10 COMMON RATER ERRORS u HALO, HORNS u RECENCY u LENIENCY/SEVERITY/CENTRAL TENDENCY u SIMILARITY u STEREOTYPES u CONTRAST EFFECT u SELECTIVE PERCEPTION

11. Copyright 2000 - South-Western College Publishing Module 15 - 11 OVERCOMING BIASES u Recognize the ones you have. u Share expectations with the appraisee. u Keep a “log” of events during the year. u Give regular feedback (no surprises!). u Review your draft appraisal with someone. u Remind yourself of your biases before every performance appraisal conference.

12. Copyright 2000 - South-Western College Publishing Module 15 - 12 CURRENT ISSUES IN PERFORMANCE MANAGEMENT u The focus on ratings and rewards u Too much for one rater to appraise u The system is too top down u Team-based work systems u Total Quality Management

13. Copyright 2000 - South-Western College Publishing Module 15 - 13 PERFORMANCE MANAGEMENT INNOVATIONS u Increased employee involvement u Less focus on ratings and rewards u Multi-rater systems (i.e., 360 degree feedback, peer reviews)

14. Copyright 2000 - South-Western College Publishing Module 15 - 14 IMPLEMENTATION ISSUES AND STRATEGIES u Involvement of users in development u Pilot programs u Implementation in one unit u Staggered implementation

15. Copyright 2000 - South-Western College Publishing Module 15 - 15 OBSTACLES TO SUCCESSFUL IMPLEMENTATION u Lack of commitment from the top u Overselling the program u A program excessive in paperwork and administrative requirements u Failing to train and retrain appraisers u Changing the system u Failing to monitor the program and deal with non-compliance