1. Conducting Effective Performance Reviews
Slide Show Notes
In this training session, we will discuss how to conduct effective performance appraisals. These workplace tools are valuable in a number of ways.
First, the purpose of the appraisal process is to inform employees of how they are doing and how they can improve the quality of their performance.
Second, properly conducted performance appraisals are also motivational and help employees grow and develop.
For all these reasons, preparing for and conducting performance appraisals are among the most important things you do as a supervisor.

2. Session Objectives Session Objectives
Identify the importance and benefits of performance reviews
Assess and prepare necessary documentation
Set motivational performance goals
Plan for effective appraisal interviews
Conduct fair and beneficial appraisals
Avoid discrimination charges
Slide Show Notes
The objective of this training session is to provide you with the basic tools you need for conducting effective performance appraisals. At the end of the training session, you will be able to:
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; and
Avoid discrimination charges.

3. Why Reviews Are Important
Recognize accomplishments
Guide progress
Improve performance
Recognize accomplishments
Guide progress
Improve performance
Slide Show Notes
For our organization to be successful, all of us need to be able to perform to the best of our abilities. We can do so only if we have adequate feedback and clearly defined goals. Performance appraisals are an essential tool for accomplishing these tasks. They offer a formal and official way to:
Recognize accomplishments. Every company will define recognizable accomplishments differently, but it’s important to have a reward system in place.
Guide employee progress. Effective performance appraisals continue to refine the initial job description of what is expected of employees as they learn new skills and gain experience.
And, improve performance. Whether making good performance better or correcting poor performance, performance appraisals are an important step in identifying the situation and laying out the course for improvement.

4. Why Reviews Are Important
Review performance
Set goals
Identify areas for improvement
Discuss career advancement
Slide Show Notes
Performance appraisals also provide the opportunity to:
Review how well employees have met job requirements and goals;
Set new performance goals, including additional responsibilities;
Identify areas in which performance needs to be improved; and
Discuss career advancement, including training opportunities and promotion.
What are your impressions of and expectations for performance appraisals? What do you want to accomplish through the appraisal process?
Ask trainees to talk about their impressions of and expectations for performance appraisals—what they can and cannot accomplish through the appraisal process.

5. Performance Review Benefits For the Organization
Documentation
Employee development
Feedback
Legal protection
Motivation system
Slide Show Notes
Performance appraisals offer many benefits to the organization, including:
Documentation of performance issues, disciplinary actions, and written goals—all signed by the involved parties;
A system for providing employee development opportunities;
A regular outlet for providing performance feedback;
Legal protection should the company be involved in accusations of discrimination or illegal termination; and
A morale boost to motivate employees through a recognized and defined reward system.
Make sure you know your organization’s appraisal policy, including evaluation schedules and required procedures. Ask your supervisor if you have any questions.
Review your organization’s performance appraisal policy, including evaluation schedules and required procedures. Answer any questions about the policy.

6. Performance Review Benefits For the Employee
Direction
Feedback
Input
Slide Show Notes
Performance appraisals offer many of the same benefits to employees, including:
Clear direction in their work regarding what’s expected of them and of their role in the organization’s overall goals;
A regular outlet in which to receive feedback on performance and expectations;
A regular time in which to give input on their job, their department, or the organization; and
Motivation to perform their best because they know they will be recognized and/or rewarded.
Motivation

7. Performance Reviews and Discrimination
Prohibits employment discrimination, including race, national origin, religion, age, sex
Title VII of Civil Rights Act of 1964
Americans with Disabilities Act (ADA)
Prohibits discrimination against disabled employees
Prohibits discrimination against pregnant employees or those who may become pregnant
Pregnancy Discrimination Act
Slide Show Notes
Typical legal problems associated with performance appraisals involve charges of discrimination, especially under these laws:
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination, including discrimination in the evaluation of employee performance, because of race, national origin, religion, age, or sex.
The Americans with Disabilities Act, or ADA, prohibits discrimination against disabled employees—for example, judging their performance more harshly because of their disability.
The Pregnancy Discrimination Act prohibits discrimination against pregnant employees or those who may become pregnant.
And finally, the Equal Pay Act prohibits discriminatory practices related to performance appraisals.
Prohibits discriminatory practices related to performance reviews
Equal Pay Act

8. Legal Problems and Discrimination Charges
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
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
Slide Show Notes
Legal problems and discrimination charges may arise from:
Failure to clearly communicate performance standards;
Failure to give timely feedback when performance does not meet standards;
Failure to allow employees the opportunity to correct inadequate performance;
Inconsistency in measuring performance from employee to employee; and
Failure to document performance objectively.
What kinds of subjective, personal feelings do you think can interfere with objective performance appraisals?
Ask trainees to identify the kinds of subjective, personal feelings that can interfere with objective performance appraisals.

9. Match the term with its explanation below.
Which Law Is Which?
Match the term with its explanation below.
ADA
Equal Pay Act
Title VIII
Pregnancy Discrimination Act
Prohibits discriminatory practices related to performance reviews
Prohibits discrimination against pregnant employees or those who may become pregnant
Prohibits discrimination against disabled employees
Slide Show Notes
In this exercise, match the description with the correct discrimination law.
This law prohibits discrimination against disabled employees (ADA).
This law prohibits discriminatory practices related to performance appraisals (Equal Pay Act).
This law prohibits discrimination including race, national origin, religion, age, and sex (Title VIII).
This law prohibits discrimination against pregnant employees or those who may become pregnant (Pregnancy Discrimination Act).
Prohibits discrimination including race, national origin, religion, age, and sex

10. Performance Review Background
Do you understand:
Why reviews are important?
The benefits of reviews?
The laws that cover discrimination?
Slide Show Notes
At this point, make sure you understand:
Why performance appraisals are important
How they benefit our employees and the organization
And, the potential for legal problems and charges of employment discrimination concerning the appraisal process, and the laws that protect against these behaviors

11. Performance Review Form
Define performance expectations
Describe measurement tools
Use a rating system
Cover specific examples
Set measurable goals
Slide Show Notes
In this part of the session, we’ll look at the specifics of the appraisal process, beginning with appraisal forms. In order to be most effective, performance appraisal forms must be well constructed and easy to understand. They should include the following items:
Well-defined performance expectations in areas that include adaptability, communication skills, cooperation, dependability, initiative, innovation, job knowledge, organization, productivity, and quality of work;
Clearly described measurement tools;
A concrete rating system;
Space to write down specific job examples; and
A section for setting timely, measurable performance goals.
Make sure you are familiar with your organization’s appraisal forms. Ask your supervisor if you have any questions about how to complete the form.
Hand out copies of the organization’s appraisal forms to trainees and review the material. Ask if they have any questions about how to complete the form.

12. Measure Performance Measurement systems need to be: Specific Fair
Consistent
Clear
Useful
Slide Show Notes
There are many ways to measure performance, but the main thing to remember is that the more objective the measurement, the better. Here are some helpful guidelines for measurement systems:
Use specific rating scales—whether numbers or terms—when assessing performance.
Use a system that is fair and flexible in assessing workplace situations and performance.
Be consistent in using the same measurement systems for all employees.
Make sure the measurement system is clear about what is being measured. Also make sure it is understood by all employees.
Finally, measurements need to be a useful tool that enable you to give a meaningful assessment as well as enable employees to know exactly how their performance measures up.

13. Measure Performance (cont.)
Systems can be:
Numerical
Terms
Management by Objectives (MBO)
Behavior oriented
Note: ASU uses a numerical system!
Slide Show Notes
Here are several types of measuring systems:
One of the most common rating scales is numerical because numbers are perceived to be the most objective. It’s a good idea to also attach words describing what each number means, however, to make sure the numbers are used consistently. For example, on a 1 to 5 scale, 1 could mean “well below standard,” 3 could mean “meets standards,” and 5 could mean “well above standard.”
Measurement terms can also be used as long as they are specific, meaningful, and distinct from one another. A typical spread goes from “unsatisfactory” through “satisfactory” to “outstanding.”
Management by Objectives (MBO) is a system of ratings that measure how well an employee reached specific goals or objectives, such as producing X number of pieces per shift or making Y number of calls per hour.
Finally, systems can also measure effort or results with behaviors you can observe and track, such as attendance or initiative.

14. Document Performance Be objective Include all employees
Provide complete and accurate information
Document regularly
Slide Show Notes
Once you have measured employee performance, you need to document your findings in a useful way that will help you prepare for appraisal interviews and avoid discrimination charges. Here’s how:
Make sure all performance documentation is objective—based on performance, not personalities.
Document performance of all employees, not just troublemakers or star performers.
Be sure that your documentation provides complete and accurate information that will support your conclusions about employees’ performance. Include both favorable and unfavorable comments to give a realistic picture of performance. No one is perfect. No one is without some redeeming qualities.
Finally, document performance on a regular basis, not just before a scheduled performance appraisal—for example, at least once a month on each employee.

15. 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. ASU uses a numeric-based system.
Management by Objectives (MBO)
Slide Show Notes
In this exercise, fill in the missing words in the sentences.
1. Management by Objectives (MBO) 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 numerical because it is perceived to be the most objective.
numerical

16. Measuring Performance (cont.)
FILL IN THE BLANKS
3. 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.
behaviors
terms
Slide Show Notes
3. Systems can also measure effort or results with behaviors you can observe and track, such as attendance or initiative.
4. Measurement terms can also be used as long as they are specific, meaningful, and distinct from one another.

17. Set Goals Based on job requirements Realistic Measurable Observable
Challenging
Prioritized
Slide Show Notes
Since goal-setting is central to an effective performance appraisal, it’s crucial to get it right. Set performance goals with employees that meet the following criteria:
Goals must be based on actual job requirements. Use the job description when setting performance goals.
Goals must be realistic and achievable—otherwise they will frustrate rather than motivate employees. They should account for changing conditions and priorities.
They must also be measurable, which means they are specific and practical.
Goals need to be observable in any number of areas, including time spent or results produced.
Goals must be challenging. They need to evolve with time. Once previous standards are met, raise the bar.
Finally, goals must be clearly prioritized so that employees know which are most important to you and the organization.

18. Employee Input Employees take an active role:
Setting goals
Designing action plans
Identifying strengths and weaknesses
Employees participate in the performance review meeting
Slide Show Notes
For the performance appraisal process to be most effective, you must get your employees involved from the beginning. Follow these guidelines:
Encourage employees to take an active role in:
Setting their performance goals;
Designing the action plans to help them achieve their goals; and
Identifying their professional strengths and weaknesses, and giving their input on how to improve these identified areas of their performance.
Also, involve employees in the performance appraisal meeting from preparation through the final report. Employees are much more vested in their performance when they play an important role in designing and guiding it.

19. Preparation Employees: Review performance Think about new goals
Slide Show Notes
Preparation for performance appraisals involves both you and your employees. Employees need to prepare for their performance appraisal meeting by:
Reviewing their performance during the evaluation period as objectively as possible, considering their achievements and how well they have met their goals; and
Thinking about new performance goals for the next evaluation period.

20. Preparation (cont.) Supervisors: Review performance
Complete written review form
Think about new goals
Schedule time and place
Slide Show Notes
Your preparation includes:
Objectively reviewing employee performance;
Completing a written appraisal using the organization’s form;
Thinking about new goals for employees; and
Scheduling a time and place for the meeting and giving employees ample notice so that they have time to prepare.
What do you do to prepare for performance appraisal meetings, whether giving an appraisal or receiving one?
Ask trainees what they do to prepare for a performance appraisal meeting—whether they’re giving one or receiving one.

21. Start the Meeting Avoid interruptions Lay out agenda Encourage input
Give good news first
Slide Show Notes
Getting the appraisal meeting off to a good start is essential. Follow these steps:
Start by laying out a flexible agenda that includes plenty of time for feedback and discussion. Also set a positive tone with a few comments reminding employees that the purpose of the performance appraisal is to improve performance and not to find fault or cast blame.
Be sensitive when talking about money. Raises are often associated with performance appraisals, and employees may expect to receive a raise immediately after their performance appraisal, especially if they receive a good evaluation. It’s very important, therefore, to make sure employees know company policy on raises—preferably before you begin the performance appraisal meeting.
Encourage input right from the beginning by asking for employees’ understanding of every point of discussion.
Finally, give the good news first about successes, goals exceeded, and goals met.
Ask trainees how they typically start an appraisal meeting and put employees at ease, encouraging involvement. Have two volunteers role-play the opening of an appraisal meeting.

22. Presentation Tips Focus on the professional Give objective examples
Invite response
Listen actively
Create “we” mentality
Slide Show Notes
Conducting effective performance appraisals is difficult partly because of the sensitive nature of being “on review.” Positive presentation of the issues during performance appraisal meetings is, therefore, very important. Here’s how to stay positive:
Make sure you always keep the conversation focused on professional behavior and performance. Don’t get personal.
Also, stick to objective examples, especially when pointing out an area that needs improvement.
Continue to invite response from employees throughout the meeting; never let it become one-sided.
Listen actively by looking at employees, nodding, and using affirmative phrases, such as “OK” and “I see.”
Finally, create a “we” mentality, which shows that supervisor and employee are working together to help the employee give the best performance and have the best career opportunities that are available.
Ask trainees to share any tips they use when conducting performance appraisals to make the interview as positive, cooperative, and productive as possible.

23. During the Meeting Review performance: Based on previous goals
Noting strengths and accomplishments
Identifying areas for improvement
Slide Show Notes
During the performance appraisal meeting, be sure to review performance in the following ways:
Specifically, as it relates to the goals that were set at the last performance appraisal;
Making note of strengths and accomplishments during the period so that employees know that you noticed; and
Noting where performance fell short, but doing so along with encouragement and a listing of any resources, such as training or coaching, that can help employees meet their goals.

24. During the Meeting (cont.)
Set goals:
Based on organization’s goals
Building on areas that need improvement
Slide Show Notes
Set goals for the next period based on organization goals and employee performance as follows:
If the workplace sets new production standards, create employee goals that help employees help the organization meet its goals; or
If an employee has not met previous standards, restate them but in a modified form that you and the employee agree is a realistic challenge.

25. End the Meeting Encourage good performance Lay out action plan
Communicate outcome of goals not met
Confirm understanding
Slide Show Notes
Endings are as important as beginnings when it comes to performance appraisal meetings. An effective meeting must end by clearly setting a path for the future in order to motivate employees to do their best. Follow these guidelines:
End on a positive note by letting employees know where they’re doing a good job and encouraging them to take advantage of professional opportunities to improve their performance even more.
Lay out a detailed action plan that includes measurable tasks and a timetable for accomplishing them.
When performance has been inadequate, confirm that employees know what will happen if they don’t improve. Be specific—for example, failure to improve production within 30 days will result in discipline up to and including termination.
Finally, make sure employees understand what’s expected of them in the action plan and are in agreement that the plan is realistic and challenging.
Ask two volunteers to conduct a quick role-play showing how to bring an appraisal meeting to an effective conclusion.

26. Is This Acceptable? Yes or No
An employee comes to a performance review meeting without having identified whether past performance goals have been met.
An employee comes to a review meeting with a goal for the next period that you do not agree with.
You have a review meeting with an employee without having completed your written review of the employee using your organization’s form.
Slide Show Notes
In this exercise, decide if these are acceptable behaviors related to performance appraisals.
An employee comes to an appraisal meeting without having identified whether past performance goals have been met—this is not acceptable. Employees need to do their share of preparation in order for the meeting to be successful, which includes identifying whether past goals have been met.
An employee comes to an appraisal meeting with a goal for the next period that you do not agree with—this is acceptable. Your views will not always match those of your employees. The key is to tell the employee in a professional manner why his or her planned goal is not what you had planned.
You have an appraisal meeting with an employee without having completed your written appraisal of the employee using your organization’s form—this is not acceptable. Part of your preparation is to complete a written appraisal before meeting with the employee.

27. Is This Acceptable? Yes or No (cont.)
During a review meeting, you try to listen intently to what the employee is saying.
You professionally notify an employee during a review meeting that his or her performance is not up to par and that it better improve “soon.”
Slide Show Notes
In this exercise, decide if the behaviors these are acceptable behaviors related to performance appraisals.
During an appraisal meeting, you try to listen intently to what the employee is saying—this is acceptable. It is important to listen to and acknowledge what employees are saying.
You professionally notify an employee during an appraisal meeting that his or her performance is not up to par and that it better improve “soon”—this is not acceptable. You must be specific when notifying employees of poor performance. For example, it would have been better to say “failure to improve within 30 days will result in discipline that may include termination.”

28. Review Process Do you understand: Review forms?
Measuring and documenting performance?
Preparing for review meetings?
Conducting review meetings?
Slide Show Notes
At this point, be sure you understand:
Appraisal forms,
Measuring and documenting performance,
Preparing for appraisal meetings, and
Conducting appraisal meetings.

29. Key Points to Remember
You must conduct objective performance reviews on a scheduled basis
Reviews tell employees how they’re doing and how they can improve
Reviews help create a system of motivation and rewards based on performance
Slide Show Notes
Here are the key points you should remember from this training session:
You must conduct objective appraisals on a scheduled basis.
Appraisals tell employees how they’re doing and how they can improve.
And, appraisals help create a system of motivation and rewards based on performance.
This concludes this training session.
Give trainees the quiz, if appropriate.