Performance
Appraisal
Identifying and Measuring Employee Performance
• Performance Management System
• Processes used to identify, encourage, measure, evaluate, improve, and reward
employee performance.
• Performance
• What an employee does and does not do.
• Quantity of output
• Timeliness of output
• Quality of output
• Presence at work
Traditional Performance
Appraisal
 Between an employee and
Overall Objectives
his/her immediate supervisor
Review
Objectives
 Leads to decisions and
judgments
 Common approach across
levels and functions
 Supervisor is in the leading
position
 It‘s a system – not an event
 Central system-owner (usually
HR)
Mid-year Review
Interfaces to other HR-related
Processes
Learning
Talentmanagement
Balanced
Scorecard
Performance
Appraisal
Employee
Retention
Compensation
Promotion/
transfer
Focus on Tool versus Results
?
Tool
Design
Conditions
Results
Results
Conditions
Tool
Design
Intended Results
Reward highperformers
Retain
employees
Treat lowperformers
Motivate
through
objectives
Identify
potential
Judgements &
Decisions
Management by
objectives
Track
suitability
Offer
perspectives
Develop
employees
Learn through
feedback
Principal, Customer, and the Role
of HR
Ex
Ex
HR
Ex
M
M
E
E
A
Ex
HR
M
HR
E
E
B
Executive Board (Ex), Manager (M), Employees (E)
M
C
HR
D
The man who gives Flowers to
his Wife
Intrinsically
motivated
behavior
Policy
Behavior
Attribution to
extrinsic
motivation
Behavior not
valued
Relevant Conditions
 Employee-OrganizationRelationship
 Employee-SupervisorRelationship
 Employee-WorkRelationship
Certainty of Work Results and
Processes
low
D
certainty
of results
E
B
C
A
high
high
certainty
of process
low
Task Interdependance and
Dynamic
C
A
D
E
B
strong effect
weak effect
Task Dynamics (Sensitivity
Model)
strong
reactive
critical
B
Reaction
A
neutral
C
D
E
buffering
active
weak
weak
Influence
strong
The role of judge
and the role of
counselor are
incompatible.
-- Douglas McGregor
Source: McGregor, D. (1960). The human side of
enterprise. New York: McGraw-Hill.
Roles of supervisors
Boss
Partner
Employee
Enabler
Coach
Social Judgement Process
Criterion
interpretation
no
Recall relevant
memory content
Judgement
available?
Initial
judgement
yes
Anticipation of
consequences
Judgement
communication
Employee-OrganizationRelationship
Autonomy/
self-control
Professional
independence
Social
collaboration
Employee-OrganizationRelationship
Autonomy/
self-control
Professional
independence
Autonomy/
self-control
Social
collaboration
A
Professional
independence
Social
collaboration
B
Two extreme Worlds
Hierarchy
Agility
Task uncertainty
low
high
Dynamic
low
high
Boss
Partner/Coach
low (top-down)
high (bottom-up)
individual
linked teams
low
high
Supervisor role
Autonomy/self-control
Social collaboration
Professional independence
Traditional Performance Appraisal in both
Worlds
Hierarchy
Agility
Reward high-performers
Tread low-performers
Identify potential
Track suitability
Offer perspectives
Learn through feedback
Develop employees
Management by objectives
Motivate through objectives
Retain employees
Agile Design
• Focussed and Separated
• Team-setting (Not individual)
• Employee Driven
• Short Cycles
• Qualitative and Open
Performance Distribution
B
Frequency
C
Performance
A
Learning
Hierarchy
Agility
individual learning
social learning
from managers & trainers
from and with others
off-the-Job
on-the-Job
planned
on demand
formal
informal
ordered
employee driven
long cycles
short cycle
requirements
curiosity & uncertainty
learning transfer
work = learning
Talent Identification
Decider
Decider
Talent Manager
Target Position
Target Position
Supervisor
Employee
Employee
Feedback in Hierarchies
Client
...
Agile Feedback
Customer
Teams
Enabler
Agile Design
• Think in terms of teams and networks
• Put employees and teams at the center
• Act on demand with relevant responsibilities
• Allow openess, simplicity and diversity
• Let things go - rely on natural dynamics
Summary
•
•
•
•
It‘s a system – not a one-time incident
First, think about results – not about the tool
Consider internal conditions: organization, supervision and work
Even under hierarchical conditions performance appraisal does not fully
work
• In an agile environment traditional performance appraisal does not work
• Agility requires focused, social, open approaches, driven by employees
and customers