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Mastering Performance Appraisals X420 Discussion Session # 50.

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1 Mastering Performance Appraisals X420 Discussion Session # 50

2 Definition  Just exactly what is a performance appraisal?  What is it’s purpose?

3 What it is: Purpose:  A report card for employees and management  Goal setting tool  Often misused tool for determining salary adjustment  Dreaded activity for both employers and employees  To help the person being appraised to do better  To motivate employees  Acknowledge a job well done  A way of showing that management appreciates personal commitments

4 Problems with traditional appraisals:  Often point to excellent or poor employees, leaves out the vast middle ground  Employee rated by a single person  Political or Personal Reasons  Halo effect

5 New Types of Appraisals  Peer Reviews  Self-Reviews  Upward Assessments  360 Degree Feedback (360 Review)

6 Peer Review  Peers are asked to evaluate each others performance, set goals, and objectives  Peers understand each others’ work and air grievances in a non-threatening manner  Reduces the amount of office politics and allows concentration on work  Works best if all parties know that the reviews will NOT be used for setting pay, promotion possibilities, or disciplinary actions.

7 Self-Reviews  Employees rate themselves on certain criteria and suggest improvements  They clarify their own goals and expose areas of weakness  Manager becomes more of a counselor than a judge  People may not see their own deficiencies as others do, so this method needs to be used with another method to be effective

8 Upward Assessments  Usually administered by outside consultants with experience, needed skills, and an “objective outsider” image so people can open up to them without fear of reprisal.  Used at least every two years

9 360 Degree Feedback  Most costly type of appraisal  Includes self ratings, peer review, and upward assessments  Feedback is sought from everyone  Gives people a chance to know how they are seen by others  Has high employee involvement and credibility  Has strong impact on behavior and performance

10 Management Mistakes Regarding Performance Appraisals  Focusing on and stressing the paperwork and forms.

11  Believing that a ratings based form of appraisal will serve as protection against lawsuits by employees.

12  Using an automated system

13  Under training or poorly training managers in the process of performance appraisal

14  Not training employees

15  One Size fits all fantasy


17  Not preparing Beforehand

18  Defensiveness

19  Not Communicating During the Year

20  Not Clarifying Enough

21  Allowing One Sidedness

22  Focusing On Appraisal As A Way Of Getting More Money

23 Why have a Performance Management Process?  Clear Expectations of the Individual  Aligned Goals  Clear Performance Understanding  Career Development Plan  Plan for Individual Improvement in the position  Evaluate Corporate Resources (individuals)  Individual Income Management  Manage individual Expectations  Open two-way Communication

24 What is Continuous Feedback?  Collect feedback from managers, peers, co-workers, customers, and suppliers to assess performance against goals, customer satisfaction, and developmental needs  Collected on an on-going basis via informal and formal means  Captures both  what was achieved  how was it accomplished

25 Benefits of Continuous Feedback  Collect specific, actionable information directly from individuals with whom employee works most closely. This information can be used to improve:  individual performance  work processes  relationships with others

26 What is a Summary Discussion?  Leader and employee discuss:  performance against goals  summary of feedback collected, how those learnings were applied  strength/development area identification  career growth (short and long term)  development needs and plan  Formal documentation once per year (based on reviews during the year)

27 Actual Quotes  If you see two people talking and one looks bored…he is the other one  Brings a lot of joy…when leaving the room  This employee does not have ulcers…but is a carrier

28 Actual Quotes  Since my last report, this employee has reached rock bottom…and has started to dig  Sets low personal standards…and then constantly fails to achieve them  This employee should go far…and the sooner the better  If you give him a penny for his thoughts…you would get change  Takes two hours to watch "60 Minutes"

29 Actual Quotes  This employee is depriving a village somewhere of an idiot  A gross ignoramus…many times worse than an ordinary ignoramus  When his IQ reaches 50…he should sell  Donated his brain to science…before he was finished using it  If he were any more stupid…he would have to be watered twice a week.

30 Make Appraisals Right  Remember the following 6 basic steps

31 How to make appraisals right! 1. Be objective  Everything we say should relate to the job or job performance  Don’t get caught up in personalities  Judge the work, not the individual

32 How to make appraisals right! 2. Always base appraisals on goals and standards  Make sure employees know what you want and when you want it  Make the goals realistic and fair  Get feedback from employees to make sure they understand and then  Make sure you have a way to measure performance

33 How to make appraisals right! 3. Be honest  Tell employees the truth about their performance  Don’t be brutal, but don’t “sugarcoat” it either  Be straightforward and professional

34 How to make appraisals right! 4. Be consistent  Use the same criteria that you have used on all other reviews

35 How to make appraisals right! 5. Use accurate documentation  Document everything  Be very specific in everything that is documented  If it ends up in court, it can be the difference between winning and losing

36 Performance Appraisals aren’t just another task…. ….they deal with people’s lives and futures!  How you handle appraisals has huge impact on employees  Good appraisals really motivate good employees  Good appraisals can turn around employees who need help  Good appraisals help build good relationships

37 Facts  Bob’s work is excellent  Bob has shown the ability to take on greater responsibilities  Bob is handsome  Bob is well organized and a good leader  Bob works part-time

38 Inferences  Bob is not interested in promotion because he works part-time  Bob is interested in promotion because he does excellent work  Bob lacks confidence and is afraid to ask for full-time work and a promotion

39 How to make appraisals right! 6. Follow company policy  Stick to the written policy  Don’t make promises or threats

40 Evaluation Use: A. Strongly agree B. Agree C. Disagree D. Strongly disagree E. Don’t know 1. I found the presentation of material easy to understand. 2. This discussion session increased my knowledge on the subject presented. 3. I will be able to use some of the information from this discussion session in the future. 4. The presenter was well prepared for this discussion session. 5. This presentation should be repeated in future semesters.

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