3 Learning Outcomes After reading this chapter, I will be able to: Describe the purposes of the performance appraisal.Identify the performance appraisal processExplain the different types of measurement toolsDistinguish human errors that can distort performance appraisal ratings.Describe key legal concerns with performance appraisals.
4 Performance Appraisal defined…. A tool that reviews past job performance, emphasizing positive accomplishments as well as deficiencies, as a means for helping employees improve future performance.Purposes:FeedbackRaisesDevelopmentDocumentation (Termination)
5 Appraisal Process Establish performance appraisal standards Mutually set measurable goalsMeasure actual performanceAND….
6 Appraisal Process cont… Compare actual with standardDiscuss appraisal with employeeCorrective actionBasicImmediate
7 Measurement Tools Focus of the measure Type of judgment required Trait, behavior, or outcomeType of judgment requiredRelative, absolute, or outcomeNumerous techniques for measuring performance have been developed over the years, and managers have a wide array of appraisal formats from which to choose. The most common and legally defensible of these formats are shown here.
8 Focus: Trait, Behavior, & Outcome An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring.Ex. Dependable, confident, loyalBehaviorAn appraisal tool that asks managers to assess a worker’s behaviors.Ex. Average number of sales callsOutcomeAn appraisal tool that asks managers to assess the results achieved by workers.Ex. Overall sales volume, new accountsNumerous techniques for measuring performance have been developed over the years, and managers have a wide array of appraisal formats from which to choose. The most common and legally defensible of these formats are shown here.
9 Rate each worker using the scales below. Sample Trait ScalesRate each worker using the scales below.Dependable:Very low Moderate Very highReliability:Very low Moderate Very highEnergy:Very low Moderate Very highLoyalty:Very low Moderate Very high
10 Judgment: Absolute, Relative, or Objective “Supervisors make judgments about an employee’s performance based solely on performance standards”Relative“Compares an employee's performance to the performance of other employees doing the same job”Objective“Measurement against a goal established between the supervisor and employee”Appraisal criteria, methods, and documentation must be job related!!!
11 Absolute Standard Approaches EssayCritical incidentChecklistAdjective rating scale
12 Absolute: ESSAYS Simplest Approach Write a narrative describing theStrengthsWeaknessesPotentialSuggestions for improvementResults reflect the ability of the writers
13 Absolute: CRITICAL INCIDENT Essay about what was most effective or ineffective in a key job situationFocus on behavior, not personalityTime-consuming
14 Absolute: CHECKLIST Yes or No Predefined behaviors or qualities Items may be irrelevant
15 Absolute: ADJECTIVE RATING SCALE Oldest & most popular approachFactors presentJob knowledgeCooperationQuality and quantity of work5 to 10 points on a continuum
20 Human Errors & Appraisals Halo EffectTendency to rate employee high or low on all factorsSimilarityGiving special consideration to qualities that appraisers perceive in themselvesRecencyGives greater importance to job behaviors near the end of the measurement periodCentral tendencyThe reluctance to assign extreme ratings
21 Tips for Legal Performance Appraisal * Focus on behavior, not the individual it isn’t “Sue is lazy.” It is “sue does not complete work in a timely manner.” with appropriate examples.* Be fair -- remember appraisal errors. I’ve worked with various agency Boards over the yeras, and as an HR person on the Board, end up advising the Exec Dir on HR related issues. One director had a performance problem with an employee, and was doing her eval, from which to create a performance improvement plan. The eval was a LONG one, a laundry list specific to that job. The ED had given points from 1 though 5, no problem with central tendency! She recognized the ee’s strong points and weak points equally. THAT was a good appraisal!* Consistent/continuous feedback --appraisals should NEVER be surprises!* Document -- eg “Sue’s” performance. If it isn’t documented, it didn’t happen.* Anyone can sue these days. If you had a charge from the IDHR or EEOC, what could you bring to a fact finding? Would your documentation be as clear as the ED’s I worked with? Would you be able to show that your decisions had basis in fact?Tips for Legal Performance AppraisalFocus on behavior, not the individualBias Free – remember Appraisal ErrorsConsistent / Continuous FeedbackDocument ~ Document ~ DocumentDo you have what you need for Fact Finding?Published appraisal procedures = Binding contract in court
22 During Evaluation Meeting First ask for employee comments and suggestionsBe sincere, stay job oriented and objectiveSummarize previous memos/suggestionsSuggest new approaches with timelinesUse good 2-way communicationsActive listening, paraphrasing and restatingUse different approach for different employees
23 After Evaluation Meeting Finalize Form - Add your comments and signatureGive to employee for comments and signatureGive copy to supervisor for reviewGive copy to employeeSend signed original to Human Resources for employee fileSet date for planning meeting for next year
24 How to Determine and Remedy Performance Shortfalls CauseQuestions to AskPossible RemediesAbilityEffortSituationHas the worker ever beenable to perform adequately?Can others perform the jobadequately, but not this worker?Is the worker’s performancelevel declining?Is performance lower on alltasks?Is performance erratic?Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?TrainTransferRedesign jobTerminateClarify linkage betweenperformance and rewardsRecognize good performanceStreamline work processClarify needs to suppliersChange suppliersEliminate conflictingsignals or demandsProvide adequate tools