Mastering Performance
Appraisals
X420 Discussion Session # 50
Definition
 Just
exactly what is a performance
appraisal?
 What is it’s purpose?
What it is:
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A report card for
employees and
management
Goal setting tool
Often misused tool for
determining salary
adjustment
Dreaded activity for
both employers and
employees
Purpose:

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To help the person
being appraised to do
better
To motivate employees
Acknowledge a job well
done
A way of showing that
management
appreciates personal
commitments
Problems with traditional
appraisals:
 Often
point to excellent or poor
employees, leaves out the vast middle
ground
 Employee rated by a single person
 Political or Personal Reasons
 Halo effect
New Types of Appraisals
 Peer
Reviews
 Self-Reviews
 Upward Assessments
 360 Degree Feedback (360 Review)
Peer Review
 Peers
are asked to evaluate each others
performance, set goals, and objectives
 Peers understand each others’ work and
air grievances in a non-threatening manner
 Reduces the amount of office politics and
allows concentration on work
 Works best if all parties know that the
reviews will NOT be used for setting pay,
promotion possibilities, or disciplinary
actions.
Self-Reviews
 Employees
rate themselves on certain
criteria and suggest improvements
 They clarify their own goals and expose
areas of weakness
 Manager becomes more of a counselor
than a judge
 People may not see their own
deficiencies as others do, so this
method needs to be used with another
method to be effective
Upward Assessments
 Usually
administered by outside
consultants with experience, needed
skills, and an “objective outsider” image
so people can open up to them without
fear of reprisal.
 Used at least every two years
360 Degree Feedback
 Most
costly type of appraisal
 Includes self ratings, peer review, and
upward assessments
 Feedback is sought from everyone
 Gives people a chance to know how
they are seen by others
 Has high employee involvement and
credibility
 Has strong impact on behavior and
performance
Management Mistakes
Regarding Performance
Appraisals
 Focusing
on and stressing the
paperwork and forms.
 Believing
that a ratings based form of
appraisal will serve as protection
against lawsuits by employees.
 Using
an automated system
 Under
training or poorly training
managers in the process of
performance appraisal
 Not
training employees
 One
Size fits all fantasy
EMPLOYEE MISTAKES
REGARDING
APPRAISALS
 Not
preparing Beforehand
 Defensiveness
 Not
Communicating During the Year
 Not
Clarifying Enough
 Allowing
One Sidedness
 Focusing
On Appraisal As A Way Of
Getting More Money
Why have a Performance
Management Process?
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Clear Expectations of the Individual
Aligned Goals
Clear Performance Understanding
Career Development Plan
Plan for Individual Improvement in the
position
 Evaluate Corporate Resources (individuals)
 Individual Income Management
 Manage individual Expectations
 Open two-way Communication
What is Continuous Feedback?
 Collect
feedback from managers, peers,
co-workers, customers, and suppliers to
assess performance against goals,
customer satisfaction, and
developmental needs
 Collected on an on-going basis via
informal and formal means
 Captures both
 what
was achieved
 how was it accomplished
Benefits of Continuous Feedback
 Collect
specific, actionable information
directly from individuals with whom
employee works most closely. This
information can be used to improve:
 individual
 work
performance
processes
 relationships
with others
What is a Summary Discussion?
 Leader
and employee discuss:
 performance
against goals
 summary of feedback collected, how those
learnings were applied
 strength/development area identification
 career growth (short and long term)
 development needs and plan
 Formal
documentation once per year
(based on reviews during the year)
Actual Quotes
 If
you see two people talking and one
looks bored…he is the other one
 Brings a lot of joy…when leaving the
room
 This employee does not have
ulcers…but is a carrier
Actual Quotes
 Since
my last report, this employee has
reached rock bottom…and has started
to dig
 Sets low personal standards…and then
constantly fails to achieve them
 This employee should go far…and the
sooner the better
 If you give him a penny for his
thoughts…you would get change
 Takes two hours to watch "60 Minutes"
Actual Quotes
 This
employee is depriving a village
somewhere of an idiot
 A gross ignoramus…many times worse
than an ordinary ignoramus
 When his IQ reaches 50…he should sell
 Donated his brain to science…before he
was finished using it
 If he were any more stupid…he would
have to be watered twice a week.
Make Appraisals Right
 Remember
the following 6 basic steps
How to make appraisals right!
1.
Be objective
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Everything we say should relate to the job
or job performance
Don’t get caught up in personalities
Judge the work, not the individual
How to make appraisals right!
2.
Always base appraisals on goals and
standards
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Make sure employees know what you
want and when you want it
Make the goals realistic and fair
Get feedback from employees to make
sure they understand and then
Make sure you have a way to measure
performance
How to make appraisals right!
3.
Be honest
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Tell employees the truth about their
performance
Don’t be brutal, but
don’t “sugarcoat” it either
Be straightforward
and professional
How to make appraisals right!
4.
Be consistent
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Use the same criteria that you have used
on all other reviews
How to make appraisals right!
5.
Use accurate documentation
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Document everything
Be very specific in everything that is
documented
If it ends up in court, it can be the
difference between winning and losing
Performance Appraisals aren’t
just another task….
….they deal with people’s lives and
futures!
 How you handle appraisals has huge
impact on employees
 Good appraisals really motivate good
employees
 Good appraisals can turn around
employees who need help
 Good appraisals help build good
relationships
Facts
 Bob’s
work is excellent
 Bob has shown the ability to take
on greater responsibilities
 Bob is handsome
 Bob is well organized and a good
leader
 Bob works part-time
Inferences
 Bob
is not interested in promotion
because he works part-time
 Bob is interested in promotion
because he does excellent work
 Bob lacks confidence and is afraid
to ask for full-time work and a
promotion
How to make appraisals right!
6.
Follow company policy
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Stick to the written policy
Don’t make promises or threats
Evaluation
Use:
A. Strongly agree
B. Agree
C. Disagree
D. Strongly disagree
E. Don’t know
1.
2.
3.
4.
5.
I found the presentation of material easy to
understand.
This discussion session increased my
knowledge on the subject presented.
I will be able to use some of the information
from this discussion session in the future.
The presenter was well prepared for this
discussion session.
This presentation should be repeated in future
semesters.