LEARNING OBJECTIVES
1. Discuss the rationale behind the implementation of a
systematic performance appraisal system.
2. Discuss the difficulties in implementing a
performance appraisal system within a pharmacy
organization.
3. Identify various types of performance appraisal
processes and evaluate the strengths and weaknesses
of each type.
4. Discuss issues of validity and reliability within the
context of evaluating a performance appraisal
system.
5. Describe how to conduct a performance appraisal
interview and how to handle disagreements that may
arise during or subsequent to the interview.
6. Discuss the linkage of performance appraisal results
with the proper allocation of organizational rewards.
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performance appraisal is a formal assessment
of how well employees are performing their
jobs.
Performance appraisals are necessary to
document employees’ progress toward
achieving goals and heeding the advice of
management on how to improve performance
Documentation is necessary to demonstrate
fairness in promotion and termination
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The dialogue from the appraisal process
provides data for managers as well as data to
employees from managers.
Role stress typically is viewed as having two
components: A:role ambiguity and B: role
conflict.
Role ambiguity exists when an employee is
unsure about his or her responsibilities
Role conflict is the simultaneous occurrence of
two or more role expectations
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1.
2.
3.
Performance appraisal methods typically are
categorized into three broad types:
Absolute
Relative
Outcome oriented
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Absolute systems require the rater to indicate
whether or not the employee is meeting a set
of predetermined criteria for performance
Absolute systems are the most commonly
employed
The main advantage that absolute systems
have over other types of appraisal methods is
the feedback that is derived inherently from
the process
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relative systems require the manager to make
comparisons among employees.
Relative systems have an advantage over
absolute systems in that central tendency and
leniency effects are minimized
They are not conducive to generating
substantive feedback to employees
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Where absolute and relative systems focus on
behaviors outcome-oriented systems are
concerned with evaluating end results
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A community pharmacy is typically a forprofit organization that must be concerned
with its financial position to remain over the
long term
Community pharmacies must also conduct
their business in an ethical manner.
A pharmacy will be more likely to achieve its
goals when its employees derive gratification
from performing their jobs
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Determine whether a similar performance
appraisal should exist among technicians and
pharmacists working within the same
organization
There are certain values (e.g., dependability,
dedication, and altruism) that the
organization may want to assess in all its
employees regardless of their position or
status.
It may be fruitful to gather information from
customers, or patients, when evaluating
pharmacists for the services they provide
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Regardless of the type of system selected
appraisal should be accompanied by a formal
interview of the employee.
During the interview the results of the
written appraisal are discussed.
Some preparations may help in making the
interview more fruitful like:
An appointment should be made with the
employee well in advance, at least 3 to 4 weeks.
 The employee should be provided with
1. A copy of the position description and
corresponding performance standards.
2. A copy of the evaluation form used in the
appraisal process.
3. A copy of the report of the previous formal
review, departmental/organizational objectives
for the current and subsequent year,
4. Instructions on how to prepare for the
meeting.
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The employee may be instructed to prepare
comments on how well objectives set during
the last review were met and to prepare a list
of new objectives.
Employees may be asked to complete a selfevaluation on an instrument similar to the
one used by the employer.
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The manager should enter the interview well
informed of prior appraisals
The manager should also have appropriate
documentation and evidence to support
claims of the employee’s performance, in
areas of deficiency & in areas of strength
the manager should have answered the
following questions
1. What results should the interview achieve?
2. What good contributions is the employee
making?
3. Is the employee working up to his or her
potential?
4. Is the employee clear about the manager’s
performance expectations?
5. What strengths does the employee have
that can be built on or improved?
6. Is there any additional training available
that can help the employee improve?
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Interview sequence
(1) Review and update the position description
and performance standards.
(2) Discuss the performance ratings assigned to
the employee using the prescribed appraisal
form.
(3) Highlight strengths and accomplishments since
the previous appraisal.
(4) Discuss objectives that were not reached since
the previous review.
(5) Discuss future performance and assist with
career planning.
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1.
2.
3.
4.
Some suggestions for addressing performance
deficiencies
Limit criticism to one or two major problems. Do
not search for significant problem areas when
none exist.
Reserve critical remarks until after some of the
positives have been accentuated.
Maintain open dialogue with the employee.
Offer the employee a chance for self-criticism.
Allow the employee to offer reasons why
performance was below standard. Allow the
employee to suggest ways and an appropriate
time frame to expect significant improvement.
Avoid the use of terms that potentially could be
misconstrued, such as attitude, work ethic,
professionalism, and weakness
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Implementing the System
how frequently to conduct the formal
appraisal ? Annually – more frequent is
better
Everyone in the organization should be well
informed about the role each person plays in
the appraisal process and how the appraisal
results are used
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Monitoring the System
 effectiveness
of the appraisal system itself
should be monitored.
 Quality of performance standards refers to
the standards being specific, challenging,
realistic, dynamic, understandable, and
consistent with organizational goals
 Use of performance appraisal results refers to
how well these results are tied with rewards
and recognition and to what extent the
appraisal process has contributed to
improved performance among all employees
 Tracking
the raters consists of reviewing the
ratings awarded by individual raters and
giving them feedback concerning the quality
of their ratings
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A.
B.
Rewards
intrinsic rewards (those internal to the
individual and derived from involvement in
the job, such as achievement, feelings of
accomplishment, informal recognition,
satisfaction, and status)
extrinsic rewards (those controlled and
distributed by the organization, such as
formal recognition, incentive pay, fringe
benefits, and promotions)
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a)
b)
c)
d)
e)
f)
Managers must consider internal, external,
and individual equity
suggestions for allocating rewards
Consider the presence of performance
constraints
Provide a clear distinction between cost-ofliving, seniority, and merit pay increases.
Enlist trust among employees
Make merit pay substantial
Be flexible in scheduling rewards
Effectively communicate merit and total pay
policy to employees.
Pharmacy managers may consider the use of other
strategies to recognize and reward good
performers:
1.
2.
3.
4.
5.
6.
7.
Offer to pay for attendance at a local continuing
education program.
Provide funding for attendance at a national
conference.
Offer to offset the cost of professional recognition
and certification processes for pharmacists and
technicians.
Fund membership in a professional association.
Buy lunch.
Allow someone to represent you at an important
meeting.
Assign tasks with greater levels of responsibility if
the employee is ready to handle them.
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Does everyone with similar jobs in a
pharmacy deserve the same level of pay
raises, or should they be based more on
performance?
What types of skills do you think are
necessary for selecting and implementing a
performance appraisal system? What about
for conducting an appraisal interview?
How would you feel about having
responsibility for determining whether or not
an employee will receive merit pay?