1. Conquering The Performance Appraisal (PA) Challenge Gary Blau, Ph.D. Temple University 215-204-6906 gblau@sbm.temple.edu

2. Role Of PA In The Employment Process Forecast/Plan > Job Analysis > Recruit > Select > Orient & Train > Perform > PA > Reward > Stay/Go Why Do PA: Employer: justify employee decisions; identify training needs; improve employee morale Employee: receive feedback; clarify path to rewards Ideal People Portfolio

3. Three Key Questions For PA Right Dimensions (including weighting) ? Fair PA Process ? Meaningful Rewards ? Other ?

4. Types of PA Formats By Criteria Format RELATIVEABSOLUTE RankingTraitBehaviorGoal Criteria DevelopPoor GoodVery Good EvaluatePoorOKGoodPoor/OK CostGood OKPoor/OK ValidityOK Good LegalPoor GoodOK

5. Sample of Behaviorally Anchored Rating – “Initiative” Initiative = “ability to be proactive and exercise self-reliance as a behavior” 1 = (poor), reactive; only does what told; requires too much attention 2 = (below average), follows instructions; occasionally does a little more 3 = (average); can work independently; sometimes needs to wait for instructions 4 = (good), grasps situation effectively; goes to work without hesitating 5 = (excellent), always ahead of events; anticipates; clearly exceeds expectations of supervisor, co-workers, customers

6. PA Challenges Rater Errors & Biases (examples ?) Organizational Politics Individual Versus Group Focus Technology: PA software packages e.g., www.shrm.org; searchwww.shrm.org “performance appraisal software” Other ?

7. Keys For A Legally Defensible PA System Based on: up-to-date job descriptions, documented observables (use diary for each employee) Written appraisals conducted regularly for all (record reasonable accommodation requests separately) Raters trained: use measure, avoid errors/bias; Frame of Reference training; interviewer Get employee to sign-off (acknowledge, can disagree) Provide appeals process for employee Use more than one rater source, including employee Show continuity (previous development goals, now evaluate) Other ?

8. The Performance Interview 5 issues: Interviewer Skills; Preparation (Supervisor & Employee) ; Process; Substance; Follow-up Get the Employee (Ee) to “take ownership” of any problem behaviors; get Ee to state: problem behavior; outcomes of problem behavior; consequences of continuing 3 thoughts : maintain Ee self-esteem; listen with empathy (not sympathy); get Ee’s help in problem solving

9. 5 Questions An Employee Should Be Able To Answer After Their PA Interview 1.Exactly how well am I doing? 2.Exactly where do I need to improve? 3.How did my supervisor reach his/her conclusions? 4.What help will I get? 5.What will the consequences be (positive and negative)?

10. Other PA Issues & References Timing (employee anniversary vs. all at once) Role of prior PAs in disciplining an employee Is the PA process working ? (part of employee survey) Top management commitment to PA process, managers accountable for doing PAs? Fit with organization’s culture? References: Gomez-Mejia, L. 2001. Managing human resources. Prentice Hall. Carrell, M. 2000. Human resource management. Dryden. Johnson, C. 2001. “Making sure employees measure up”. HR Magazine, March, Vol.46 (3), 36-43. Grensing-Pophal, L. 2001. “Motivate managers to review performance”. HR Magazine, Vol. 46 (3), p.45-48

11. Why Invest In Behaviorally-based Performance Scales A More Motivated Workforce A More Motivated Group of Supervisors A More Accountable Group of Supervisors A More Respected/Effective HR Function TRANSLATION – a more satisfied and loyal workforce with greater positive retention (keeping higher performers), and fewer employee complaints/problem behaviors, and reduced likelihood of future employee litigation