© BLR ® —Business & Legal Resources 1408 Conducting Effective Performance Appraisals

© BLR ® —Business & Legal Resources 1408 Identify the importance and benefits of performance appraisals Assess and prepare necessary documentation Set motivational performance goals Plan for effective appraisal interviews Conduct fair and beneficial appraisals Avoid discrimination charges Session Objectives

© BLR ® —Business & Legal Resources 1408 Why Appraisals Are Important Recognize accomplishments Guide progress Improve performance Recognize accomplishments Guide progress Improve performance © BLR ® —Business & Legal Resources 1408

Why Appraisals Are Important Review performance Set goals Identify areas for improvement Discuss career advancement © BLR ® —Business & Legal Resources 1408

Appraisal Benefits For the Organization Documentation Employee development Feedback Legal protection Motivation system

© BLR ® —Business & Legal Resources 1408 Appraisal Benefits For the Employee Motivation Direction Feedback Input

© BLR ® —Business & Legal Resources 1408 Prohibits discriminatory practices related to performance appraisals Equal Pay Act Prohibits discrimination against employees with disabilities Americans with Disabilities Act (ADA) Prohibits discrimination against pregnant employees or those who may become pregnant Pregnancy Discrimination Act Title VII of Civil Rights Act of 1964 Appraisals and Discrimination Extends filing deadlines for pay discrimination claims under Title VII, ADA, and ADEA. Can require review of past decisions that affect pay (e.g., performance appraisals) regardless of how long ago decision occurred. Lilly Ledbetter Fair Pay Act Age Discrimination in Employment Act (ADEA) Prohibits discrimination against employees on the basis of age (40 and older) Prohibits employment discrimination, including race, national origin, religion, sex

© BLR ® —Business & Legal Resources 1408 Failure to communicate standards Failure to give timely feedback Failure to allow employees to correct performance Inconsistency in measuring performance Failure to document performance objectively Legal Problems and Discrimination Charges

© BLR ® —Business & Legal Resources 1408 Match the Law with its Description ADA Ledbetter Act Equal Pay Act Title VII ADEA Pregnancy Discrimination Act Performance appraisals Employees who are or may become pregnant Race, national origin, religion, age, and sex Employees with disabilities Employees 40 years or older Paycheck This law prohibits discrimination related to:

© BLR ® —Business & Legal Resources 1408 Appraisal Background Do you understand: W hy appraisals are important? T he benefits of appraisals? T he laws that cover discrimination?

© BLR ® —Business & Legal Resources 1408 Appraisal Forms Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals

© BLR ® —Business & Legal Resources 1408 Measure Performance Measurement systems need to be: Specific Fair Consistent Clear Usefu l

© BLR ® —Business & Legal Resources 1408 Measure Performance (cont.) Systems can be: Numerical Terms Management by Objectives (MBO) Behavior oriented

© BLR ® —Business & Legal Resources 1408 Be objective Include all employees Provide complete and accurate information Document regularly Document Performance

© BLR ® —Business & Legal Resources 1408 Measuring Performance FILL IN THE BLANKS 1. _____________________________ is a system of ratings that measures how well an employee reached specific goals or objectives. 2. One of the most common rating scales is _________ because it is perceived to be the most objective. Management by Objectives (MBO) numerical

© BLR ® —Business & Legal Resources Systems can also measure effort or results with _________ you can observe and track, such as attendance or initiative. 4. Measurement _____ can also be used as long as they are specific, meaningful, and distinct. Measuring Performance (cont.) behaviors terms FILL IN THE BLANKS

© BLR ® —Business & Legal Resources 1408 Set Goals Based on job requirements Realistic Measurable Observable Challenging Prioritized

© BLR ® —Business & Legal Resources 1408 Employee Input Employees take an active role: Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the performance appraisal meeting

© BLR ® —Business & Legal Resources 1408 Preparation Employees: Review performance Think about new goals

© BLR ® —Business & Legal Resources 1408 Preparation (cont.) Supervisors: Review performance Complete written appraisal Think about new goals Schedule time and place

© BLR ® —Business & Legal Resources 1408 Start the Meeting Lay out agenda Talk about money Encourage input Give good news first

© BLR ® —Business & Legal Resources 1408 Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality Presentation Tips

© BLR ® —Business & Legal Resources 1408 During the Meeting Review performance: Based on previous goals Noting strengths and accomplishments Identifying areas for improvement

© BLR ® —Business & Legal Resources 1408 During the Meeting (cont.) Set goals: Based on organization’s goals Building on areas that need improvement

© BLR ® —Business & Legal Resources 1408 End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not met Confirm understanding

© BLR ® —Business & Legal Resources 1408 An employee comes to an appraisal meeting without having identified whether past performance goals have been met. An employee comes to an appraisal meeting with a goal for the next period that you do not agree with. You have an appraisal meeting with an employee without having completed your written appraisal of the employee using your organization’s form. Is This Acceptable? Yes or No

© BLR ® —Business & Legal Resources 1408 During an appraisal meeting, you try to listen intently to what the employee is saying. You professionally notify an employee during an appraisal meeting that his or her performance is not up to par and that it must improve “soon.” Is This Acceptable? Yes or No (cont.)

© BLR ® —Business & Legal Resources 1408 Appraisal Process Do you understand: A ppraisal forms? M easuring and documenting performance? P reparing for appraisal meetings? C onducting appraisal meetings?

© BLR ® —Business & Legal Resources 1408 Key Points to Remember You must conduct objective appraisals on a scheduled basis Appraisals tell employees how they’re doing and how they can improve Appraisals help create a system of motivation and rewards based on performance