1 Appraising Employee Performance Performance Appraisals (Both an evaluation and a development tool) A review of past performance that emphasis positive accomplishments as well as deficiencies, and a means for helping employees improve future performance.

2 Performance Appraisals Traditionally used as a key determinate in pay and promotion decisions. And viewed frequently from the Employee perspective with fear and loathing.

3 Performance Appraisals Appraisals should occur on a Formal basis at least once a year with semi- annual reviews recommended as a better practice. Informally, performance reviews should be conducted on a day-to-day basis with ongoing feedback from the supervisor.

4 Who Evaluates Most employees performance appraisals are conducted by supervisors. But usually not alone. Additional input is often obtained from Peers, Customers, Subordinates, and it is not uncommon to solicit a self-evaluation from the incumbent.

5 What Processes are Used Most companies tend to standardize some some appraisal procedures in order to ensure that EEO requirements are met. The consequence is that supervisors have limited discretion in evaluating employees. The process in place will in large part dictate what and how the performance appraisal data is reported and managed.

6 Who Sets Expectations n Supervisors n Incumbents n Job Descriptions n Organizational Goals and Objectives

7 Performance Feedback Generally feedback comes in two forms: Intrinsic: Self-generated. Extrinsic: Provided by an outside source.

8 Legal Issues Performance appraisal policies and procedures, as set forth in employee handbooks, are being increasingly construed by the courts as binding unilateral contracts.

9 Legal Issues Supervisors must do everything possible to avoid the appearance of prejudice and discrimination. The appraisal criteria, methods, and documentation must be designed to ensure that they are job related.

10 Appraising Appropriate Criteria Individual Task Outcomes At the end of the day what have you accomplished…. Behaviors How does one go about doing their tasks…. Traits How does one appear to be….

11 Performance Appraisal Methods n Absolute Standard Methods u Written Essay u Critical Incident u Checklists u Graphic Rating Scales u Behaviorally-Anchored Rating Scale

12 Performance Appraisal Methods Relative Standard Methods Group Order Ranking Individual Ranking Objectives Method MBO

13 Performance Appraisal Problems Leniency Error: positive or negative leniency that over or understates performance, giving an individual a higher or lower appraisal than deserved. Halo Error: a tendency to rate an individual high or low on all factors due to the impression of a high or low rating on some specific factor.

14 Performance Appraisal Problems Similarity Error: rating others in a way that gives special consideration to qualities that appraisers perceive in themselves. Recency Error: rating others in a way that appraisers recall and give greater importance to employee job behaviors that have occurred near the end of the performance measuring period.

15 Performance Appraisal Problems Central Tendency Error: appraisers’ tendency to avoid the “excellent” category as well as the “unacceptable” category and assign all ratings around the “average” or midpoint range. Inflationary Pressure: a tendency for evaluators to be less rigorous and to reduce the negative repercussions from the appraisal process by generally inflation or upgrading evaluations.

16 Overcoming the Hurdles n Continually document performance n Use behaviorally based measures n Combine absolute and relative standards n Use multiple raters n Rate selectively n Participate in appraisal training

17 Team Appraisals Peer evaluations by team members is a helpful adjunct to the supervisor’s rating……. And Supervisors should consider the benefit of downplaying individual contributions by substituting Group performance measures.

18 Performance Counseling n 360 degree feedback n Discuss performance strengths and weaknesses n Identify development needs n Redefine goals and objectives n Establish an action plan n Act ethically