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