Appraising Employee Performance Objectives Define key terms Performance

Appraising Employee Performance

Objectives Define key terms: Performance Management (PM) and Performance Appraisal Explain the purpose of conducting performance appraisals Outline two (2) performance appraisal methods Discuss four (4) potential problems in conducting performance appraisals Conduct a performance appraisal evaluation

Task: At the individual Level: Write the top four (4) things that come to mind when you think of performance appraisal. (2 mins) Group level: Write on flip chart paper provided the top four things from the group members’ individual lists. (5 mins)

Performance Management

Performance Defined Performance is the results accomplished by an employee in meeting specific objectives or the development of competencies necessary for effectively doing a job.

Performance Management Defined It is the continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Aguinis, Herman ( 2007)

Performance Management Defined Two main components in the definition q Performance management is a “continuous process” q Performance management ensures that employees’ activities and outputs are linked to the organization’s goals.

Performance Management Defined Is a continuous communication process undertaken in partnership between an employee and his immediate supervisor that involves establishing clear expectations and understanding about the following:

Performance Management Defined § The essential job function § How the employee contributes to the overall goals § How the employee & supervisor will work together to sustain, improve or build on existing performance

Performance Management Defined § How job performance will be measured § Identifying & removing barriers to performance

Key PM Questions n What is the mission of your Organization? n Does individual/departmental goals, objectives, and performance measures support your Organization’s Mission?

Key PM Questions n Are the goals, objectives and measures consistent? n Can your organization successfully function using existing goal, objectives, and measures?

Performance Standards n Written statements describing how well a job should be done. They provide a benchmark against which to evaluate work performance n Also referred to as TARGETS n Is a statement of the conditions that will exist

Performance Standards Attributes of Performance Standards n n n n Clear & understandable Specific Measurable Realistic Challenging Consistent with organizational goals Dynamic

Levels of Performance Standards n Level 1 - Simple description of expectation n Level 2 - Simple description of specific expectation n Level 3 - Description of specific expectation and success indicator n Level 4 - Description of specific expectations, success indicators and conditions if any

EXAMPLE OF LEVELS OF COMPLEXITY OF PERFORMANCE STANDARDS Key Responsibili ties Prepares & submits performance reports Standard LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Performance reports are submitted within the established timeframe. Performance reports are submitted to the Permanent Secretary on/or before the 21 st of each month Performance reports are produced in accordance with GOJ format and submitted on/or before the 21 st of each month Performance reports are produced in accordance with the GOJ format and submitted on/or before the 21 st of each month, unless otherwise directed by the Permanent Secretary

Performance Appraisals

Appraising Employees Discussion Questions: 1. State one (1) of your key takeaways from the video. 2. Describe one thing you would have done differently to improve on the quality of the appraisal discussion?

Performance Appraisal Defined “It is the process through which an organization gets information on how well an employee is doing his or her job. ” Noe, et al ( 2006) It is the process of measuring employees’ performance. It is an organized description of an employee’s strengths and weaknesses

Performance Appraisal is one of the important components of Performance Management.

The PM & Appraisal Cycle Step 1: March/April Step 5: March/April Supervisor & Employee develop & agree on targets for the next FY Formal Appraisal & identification of learning &developmental needs & appropriate decisions Step 2: June/July Performance review based on targets. Agree on appropriate adjustments/ actions Step 4: December/January Step 3: September/October Performance review based on targets. Agree on appropriate adjustments/ actions

Source: http: //www. slideshare. net/angel 01021990/performance-appraisal-ppt-hrm

Purpose of Performance Appraisal

Why Conduct Performance Appraisals?

Performance Appraisals provide: n useful information used for fulfilling the overall purposes of performance management n useful information that is needed to make informed decisions regarding employee/career development. n a clear understanding of the differences between current and expected performance.

Performance Appraisals provide: n vital information on the cause of performance discrepancy n a structured format for feedback to be given n accurate performance history which is not dependent upon memory.

Strategic Purpose: Performance appraisal should link employees activities with organizational goals. This is done by: n defining the results ( standards) n defining the behaviors (what you have to do) n defining the characteristics necessary for carrying out the strategy n evaluating employees performance against set standards and also to give feedback.

Administrative Purpose: Performance Appraisal provides information that is used in many administrative decisions such as: Salaries/wages Promotions Retention Recognition Termination

Developmental Purposes: ¨ This has to do with training and developing employees so that they can do more challenging work and are more flexible ¨ To correct weaknesses in their performance ¨ Giving the needed feedback so that they can be aware of their level of performance.

Performance Appraisal Methods

Performance Appraisal Methods üTraditional Methods Essay Appraisal üModern Methods Straight Ranking 360 Degree appraisal Paired Comparison Assessment Centres Critical Incidents Behaviorally Anchored Rating Scales Checklist

Performance Appraisal Methods Critical Incident Method This involves keeping an ongoing log throughout the performance period. It is used to identify and describe specific incidents where employees did something really well or that needs improving during their performance period.

Critical Incident Method Source: http: //www. slideshare. net/angel 01021990/performance-appraisal-ppt-hrm

Performance Appraisal Methods Weighted Checklist In this method, performance appraisal is based on descriptive statements about effective and ineffective behavior on jobs.

Weighted Checklist Item Scale Value Interprets institutional culture to staff 4 Work results are high quality 5 Holds high expectations for staff members 5 Individual Performance Accurate (3); Mostly Accurate (2); Mostly Inaccurate (1); Inaccurate (0)

Performance Appraisal Methods Behaviourally Anchored Rating Scales This is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. This form is a mix of the rating scale and critical incident techniques to assess performance of the staff.

Source: http: //www. slideshare. net/angel 01021990/performance-appraisal-ppt-hrm

Performance Appraisal Methods 360 -Degree Feedback This is also known as multi-rater feedback, multi-source feedback, or multi-source assessment. It utilizes data collected from 'all around‘ an employee to include his or her peers, subordinates, supervisors, and sometimes, from internal and external customers.

360 -Degree Appraisal

Potential Problems in Performance Appraisals

Potential Problems n The evaluation process can be filled with emotions and hidden agendas. n Raters may not use the tool as an instrument to improve employee and the organization’s performance. n Raters may use the process to achieve political and other goals such as rewarding allies and punishing enemies or competitors. How can each of these problems be avoided or managed?

Potential Problems n n ü ü ü Performance ratings may be distorted or inaccurate: intentionally or unintentionally. A supervisor may be motivated to inflate ratings because he or she may want to: encourage employees avoid confrontation with employees avoid creating a written record promote undesired employees out of the unit make the supervisor look good to his/her manager How can each of these problems be avoided or managed?

Potential Problems n On the other hand, a supervisor may be motivated to deflate ratings because he/she may want to: ü shock an employee. ü teach a rebellious employee a lesson. ü send a message to the employee that he or she should consider leaving. ü build a strongly documented, written record of poor performance. How can each of these problems be avoided or managed?

Potential Problems Unintentional rater errors include: ü Similar to me ü Contrast to me ü Leniency ü Severity ü Central tendency ü Halo ü Primacy ü Recency n

Potential Problems n Incorrect data gathered may lead to incorrect decisions. Result: Employees may feel cheated or feel as if they have been treated unfairly. This may make the organization more prone to litigation. How can each of these problems be avoided or managed?

Conducting a Performance Appraisal Evaluation

Conducting the Appraisal Evaluation n It is important to note that an annual review does not provide an opportunity for the supervisor and subordinate to discuss performance issues. Therefore a semiannual or quarterly review is recommended. n Despite the fact that the appraisal is usually conducted by the supervisor, evaluations can also be done using information gathered from peers, subordinates, customers and the appraise.

Pre-Appraisal n ü ü ü ü Ensure that the appraisal forms include all the necessary components: basic employee information accountabilities, objectives and standards major achievements and contributions developmental achievements developmental needs, plans and goals stakeholder input employee comments signatures

Pre-Appraisal n Ensure that the rater is aware of the importance of providing accurate performance information. n Provide training where needed before the appraisal to address possible rater errors. n Gather all the information to be used in the evaluation. n Ask the employee to rate his or her performance before the session:

Conducting the Appraisal Evaluation Welcome the employee; put the employee at ease. n Create the right context for the discussion: - Choose a neutral location for the feedback session. n Encourage the employee to participate in the session. One of three (3) approaches can be taken: The “tell-and sell, ” “tell-and-listen” or the “problem-solving’ approach. n

Conducting the Appraisal Evaluation Recognize effective performance through Praise: - The purpose of the session is not to focus on employee’s performance problems. Instead it is to give accurate performance feedback that recognizes both effective as well as poor performance. n - Praising effective performance reinforces that behaviour and adds credibility to the process.

Conducting the Appraisal Evaluation n Focus on Solving Problems: - The appraisal process is often misused as a tool to punish poorly performing employees- this will not improve performance. Instead it will only reduce employees’ self-esteem and increase defensiveness. Without a problem-solving approach, which includes working with the employee, the correct solution may NEVER be identified.

Conducting the Appraisal Evaluation Focus Feedback on the Behaviour or Results, NOT on the Person: - It is very important that you do not question the employee’s worth as a person. n Minimize Criticism: - Poor performance will have to be criticized. However, resist the temptation to go off on a long repetitive list of offences. n Agree to specific goals and set a date to review progress n

Remember to……. . listen without interrupting and take notes n maintain eye contact and attentive body language n share with the employee your understanding of what he/she says n ask questions, only for clarification n be non-judgmental n

Remember to……. . n n n Compare the actual specific performance results and behaviors to the standards. Stay away from an attitude or personality focus. Emphasize strengths, as well as areas that need improvement. Keep the appraisal open to employee input. Ask the employee for ideas about how to resolve problems. Be honest and be prepared to discuss questionable items.

Review and Closing Direction: How will you use your new knowledge? Luggage: What new knowledge will you take with you? 5 7 Gas: What resources or support do you need? Exhaust: What are you leaving behind?

“He only profits from praise who values criticism. ” Heinrich Heine