Performance

Management
and Appraisal

Chapter 7
 Basic Concepts in Performance
Management
Performance appraisal means evaluating an
employees current and/or past performance
relative to performance standards
Performance Management is the entire,
integrated process of continuously identifying,
measuring and developing performance and
aligning performance with strategic goals
 Defining the Employees Goals and Work
Efforts
Employee performance standards should make
sense in terms of the companys broader goals
Managers should appraise employees based on
achieving the specific goals he or she expects to
be measured
Problems arise when measurable goals are not
set due to the complexity of the task
 Why Appraise
Performance/Importance?
Appraisals provide important input used by
supervisors to make promotion and salary raise
decisions
The appraisal lets the boss and subordinate
develop a plan for correcting deficiencies and
reinforce what the subordinate does right
Appraisals serve as a useful career-planning
tool providing opportunity to review the
employees plans
 Appraisal Forms in Practice

Management by objectives method

1. Set the organizations goals and establish
organization wide plan to achieve them
2. Set departments goals through a joint effort
between department heads and superiors
3. Discuss departmental goals with all
subordinates and ask them to develop their
own individual goals
Appraisal Forms in Practice, cont.

4. Define expected results by department

heads and subordinates setting short-term
performance targets
5. Conduct performance reviews and measure
results
6. Department heads to provide feedback
through performance reviews and meetings
with subordinates
 The Appraisal Feedback Interview

Preparing for the appraisal interview

Give the subordinate at least a weeks notice
Study his or her job description, compare
performance to standards and review files of
previous appraisals
Chose a private place where you will not be
interrupted and schedule enough time to
complete the interview
 Conducting the Interview
Main goal is to reinforce satisfactory
performance or diagnose and improve
unsatisfactory performance
Get agreement before the subordinate leaves on
how things will improve and by when
Ensure the process is fair
Deal with defensiveness
Be wary of impression management tactics
Dealing with Common Appraisal
Problems, cont.
2-Halo effect
3-Central tendency
4-Leniency or
strictness
5-Bias
 Avoiding Legal Issues
in Performance Appraisal
Base the performance appraisal criteria on
documented job analyses
Communicate performance standards to
employees in writing at the beginning of the
period
Base appraisals on separate evaluations of each
of the jobs performance dimensions
Include an employee appeals process
 Avoiding Legal Issues
in Performance Appraisal, cont.
One appraiser should never have absolute
authority to determine a personnel action
Document all information bearing on a personnel
decision in writing
Train supervisors to use appraisal instruments
Characteristics of Appraisal form
Simple
Relevant
Descriptive
Adaptable
Comprehensive
Communication
Performance Management
 Overview
Prerequisites
Performance Planning
Performance Execution
Performance Assessment
Performance Review
Performance Renewal and Recontracting
 Performance
Prerequisites
Planning

Performance
Execution
Performance Management Process

Performance
Performance
Renewal and
Assessment
Reconstructing Performance
Review
 Prerequisites

A. Knowledge of the organizations

mission and strategic goals
B. Knowledge of the job in question
 A. Knowledge of mission
and strategic goals

Strategic planning
Purpose or reason for
organizations existence
Where organization is going
Organizational goals
Strategies for attaining goals
 Mission and Goals

Cascade effect throughout

organization

Organization Unit Employee

 B. Knowledge of the job

Job analysis of key components

Activities
Tasks
Products
Services
Processes
 Performance Planning:
Results
Key accountabilities

Specific objectives

Performance standards
 Key Accountabilities

Broad areas of a job for which

the employee is responsible
for producing results
 Specific Objectives

Statements of outcomes
Important
Measurable
 Performance Standards
Yardstick to evaluate how well
employees have achieved each
objective
Information on acceptable and
unacceptable performance, such as
quality
quantity
cost
time
 Performance Planning:
Behaviors

How a job is done

 Performance Planning:
Development Plan
Areas for improvement
Goals to be achieved in each area
of improvement
 Performance Execution:
Employee Responsibilities
Commitment to goal achievement
Ongoing requests for feedback and
coaching
Communication with supervisor
Collecting and sharing performance
data
Preparing for performance reviews
 Performance Execution:
Manager Responsibilities

Observation and documentation

Updates
Feedback
Resources
Reinforcement
 Performance Assessment

Manager assessment
Self-assessment
Other sources (e.g., peers,
customers, etc.)
 Multiple Assessments Are
Necessary

Increase employee ownership

Increase commitment
Provide information
Ensure mutual understanding
 Performance Review
Overview of Appraisal Meeting
Past
Behaviors and results
Present
Compensation to be received
Future
New goals and development plans
 Six Steps for Conducting
Productive Performance Reviews

1. Identify what the employee has done

well and poorly
2. Solicit feedback
3. Discuss the implications of changing
behaviors
 Six Steps for Conducting
Productive Performance Reviews

4. Explain how skills used in past

achievements can help overcome
any performance problems
5. Agree on an action plan
6. Set a follow-up meeting and agree
on behaviors, actions, attitudes to be
evaluated
 Performance Renewal and
Recontracting
Same as/different from Performance
Planning
Uses insights and information from
previous phases
Cycle begins again
Performance Management Process
Summary: Key Points

Ongoing process
Each component is important
If one is implemented poorly, whole
system suffers
Links between components must be
clear
 Quick Review
Prerequisites
Performance Planning
Performance Execution
Performance Assessment
Performance Review
Performance Renewal and
Recontracting