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Performance Management and Appraisal Myrna Gusdorf, MBA, SPHR 2009.

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Presentation on theme: "Performance Management and Appraisal Myrna Gusdorf, MBA, SPHR 2009."— Presentation transcript:

1 Performance Management and Appraisal Myrna Gusdorf, MBA, SPHR 2009

2 Learning Objectives At the end of this module, students will: > Relate individual performance appraisal to the organizationwide performance management process. > Identify a variety of appraisal methods. > Explain HRs role in the performance management process. > Revise performance appraisal statements. > Practice performance appraisal interviewing techniques. > Have the skills necessary to use the performance appraisal process as a positive enhancement to employee performance. ©SHRM 2009 2

3 Performance Management and Performance Appraisal Performance management: > Dynamic, continuous process. > Improves organizational effectiveness. > Strategic goals. Performance appraisal: > Periodic (usually annual) event. > Formal review. > Last step in performance management process. Mondy, R. (2008). Human resource management, 10 th ed. New Jersey: Pearson Prentice Hall, 224-225. ©SHRM 2009 3

4 Whos Involved? What Are Their Needs? Organization: > Information. > Documentation. Supervisor: > Documentation. > Motivation. Employee: > Feedback. > Support for career growth. > Increased compensation. ©SHRM 2009 4

5 Performance Management Goals Communication between supervisor and employee. Feedback on performance. Documentation. Development Goals. Alignment with strategic planning goals. ©SHRM 2009 5

6 HRs Role in Performance Management Participate in strategic planning. Conduct job analysis. Support performance management. Design appraisal system. Train and support managers. Maintain documents. Provide employee due process. Ensure integrity of the system. Ensure compliance with nondiscrimination laws. ©SHRM 2009 6

7 Performance Management Process 1. Prerequisites. 2. Performance planning. 3. Performance execution. 4. Performance assessment. 5. Performance review. 6. Performance renewal and re-contracting. ©SHRM 2009 7 Planning Execution Assessment Review Renewal

8 1. Prerequisites Prerequisites: > Strategic planning. > Job analysis. ©SHRM 2009 8

9 2. Performance Planning Employees must have thorough knowledge of the performance management system. Meeting between employee and manager. Set SMART goals and measurement standards: > Results. > Behavior. > Developmental plans. ©SHRM 2009 9

10 Writing SMART Performance Objectives Practice writing SMART performance objectives: > S – Specific. > M – Measurable. > A – Attainable. > R – Realistic. > T – Timely. ©SHRM 2009 10

11 3. Performance Execution Shared responsibility > Employee responsibility: Commitment to established goals. Communication and update with manager. > Manager responsibility: Feedback, coaching and reinforcement. Resource support. Accurate observation and documentation. ©SHRM 2009 11

12 4. Performance Assessment and Appraisal Who should appraise? > Supervisors. > Peers and team members. > Subordinates. > 360 degree feedback. ©SHRM 2009 12

13 What About the Employee? Should employees do self- appraisals? ©SHRM 2009 13

14 Performance Appraisal Methods Graphic rating scale. Ranking method. Forced distribution method. Critical incident method. Essay method. BARS–behaviorally anchored rating scale. MBO–management by objectives. ©SHRM 2009 14

15 Performance Appraisal Problems Appraiser discomfort. Strictness/leniency. Bias and lack of objectivity. Manipulating the evaluation. Halo/horns effect. Central tendency error. Recent behavior. Supervisor unable to observe behavior. ©SHRM 2009 15

16 Writing the Appraisal Review Document Are your comments accurate and meaningful to the employee or just clichés? ©SHRM 2009 16

17 Performance Management and Appraisal Session 2

18 Getting Ready for the Interview Before you start that interview, what do you need? 18 © SHRM 2009

19 5. Conducting the Performance Interview Explain the purpose of the interview. Discuss self-appraisal. Share ratings and explain rationale. Discuss development plans. Employee summary. Rewards discussion (if appropriate). Set follow-up meeting. Employee signature. Supervisor recap. Appeals process. ©SHRM 2009 19

20 6. Performance Renewal and Re-Contracting Final step in performance management process. Readjust based on insight from completed process. Plan for next performance management cycle. ©SHRM 2009 20

21 Problems With Assessment/Appraisal Tied to compensation. Employees lack motivation. Manager and employee dont agree on results. Management reluctance. No performance documentation. ©SHRM 2009 21

22 Issues With Performance Management Legal issues. Untrained raters. Rater errors. Rater distortion. No grievance procedure. ©SHRM 2009 22

23 Poorly Implemented PM Systems False and misleading information. Increased turnover. Wasted time and money. Damaged relationships. Decreased motivation. Job dissatisfaction. Risk of litigation. Unfair standards. ©SHRM 2009 23

24 Performance Management Skills Communication. Coaching. Giving feedback. Empathy. Teamwork. ©SHRM 2009 24

25 Lets Practice Your Performance Appraisal Skills ©SHRM 2009 25

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