Human Resource Management 2
Performance Management and
Appraisal interviewing
Nick Kinnie
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Objectives
To recall why performance management is
important – in theory and practice
To understand the purpose and nature of the
appraisal interview in the performance
management process
To examine the different approaches and styles
of appraisal interviews
To give an opportunity to gain experience in the
practical aspects of appraisal interviewing
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Performance Management and
Appraisal interviewing
Introduction – recall the uses, objectives and
problems of Performance Management
Performance appraisal - what is appraised?
Appraisal interviewing - styles, structure and
skills
Interviewing practice - some guidelines
Summing up
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Introduction
Performance Management …
has a critical role to play in organisational
performance
is widespread (found in nine out of ten firms)
is vital to all employees
is increasingly carried out by line managers
is one of the most difficult tasks managers have to
carry out
(Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)
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What do we mean by
performance management?
‘the policies, procedures and practices that focus on employee
performance as a means of fulfilling organisational goals and
objectives’
(Lowry (2002) in Marchington and Wilkinson (2005: 187-8))
‘establishing a framework in which performance by individuals can
be directed, monitored, evaluated and rewarded, and whereby
the links in the cycle can be audited’
(Mabey and Salaman (1995) in Torrington et al (2005: 261))
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Performance Management:
why is it used?
Key role in linking the goals of the organisation
to the individual (vertical integration)
Gives a synergy with other HR practices eg
reward systems (horizontal integration)
Seeking to improve performance at an
organisational and individual level
Ritualistic aspects
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How does a performance management
system look?
Organisational
objectives
Departmental/team
objectives
Individual
competencies
Setting of
performance standards
Monitoring and Assessment
Development
Reward
Career
planning
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Objectives of Performance
Management Systems
Set objectives and review performance
against objectives/standards
Personal development: identify training
and development needs and potential
Linking team and organisational
objectives
Source: Performance Management Survey Report September 2005 CIPD
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Performance Management:
some problems
Conflicting purposes: judge/coach dilemma
Role of the appraiser: competence, motivation and values
Role of the appraisee: promotion and development
Appraiser/appraisee relationship: quality is key
Validity of the criteria: are they related to the job?
What is the quality of the data collected?
Impact of performance appraisal on performance
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Conflicting aims
Organization
Individual
Seeking the
development of
individuals through
coaching
Seeking valid
performance
feedback for
development
Seeking information
on which to base
reward and promotion
decisions
Seeking rewards
and promotion
= conflict
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Performance Appraisal: What is
appraised?
Non-criteria or evidence based – personal
evaluation
Rating traits – personal characteristics
Objectives – performance compared with
targets
Competencies/behaviours – displayed and
desired
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Types of interaction
Enquiry
Exposition
Selection
Attitude survey
Health screening
Joint problem solving
Presentation
Lecture
Briefing
Conflict resolution
Appraisal
Counselling
Discipline
Negotiation
Arbitration
Torrington et al (2005: 71)
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Performance Appraisal:
interviewing styles
Tell and sell: appraiser acts as a judge – tells
the appraisee the result and how to improve
Tell and listen: communicates outcomes and
listens to reactions
Problem solving: appraisee encouraged to
discuss problem areas and consider solutions
(Maier, N. (1976) The Appraisal interview – the three basic approaches)
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Performance Appraisal:
interview structure
Preparation
Both parties need to prepare
Appraiser: What style to adopt? gather the evidence
from all parties
Appraisee: self assessment
Structure
Purpose and rapport – agree purpose and structure
Factual review – of the known facts
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Appraisee views – comments on the last time period
(gone well/what could be improved/likes and
dislikes)
Appraiser views - asks questions, offers views and
comments
Problem solving – how can any differences be
resolved?
Objective setting – what actions should be taken, by
whom and on what time scale
(Torrington et al, 2005: 343)
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Performance appraisal:
interviewing skills
Ask the right questions: open, probing, follow up
and reflective
Engage in active, careful listening to all forms of
communication
Provide feedback based on evidence and
examples
Avoid: a focus on failure, control by the
appraiser, ends with disagreement
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
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Ideally an appraisal meeting is
where…
Appraisees do most of the talking
Appraisers listen actively and provide feedback
Scope for reflection and analysis – an exchange of
views
Performance is analysed not personalities
Whole period is reviewed not just isolated incidents –
evidence based
Achievement is recognised and reinforced
Identify areas for improvement – set agree objectives
Ends positively with agreed action plans to improve
performance
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
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Summing up
Key strategic and individual role of performance
management – new developments
Key task for line managers but difficult to carry out
successfully
Powerful influence on behaviour – both positive and
negative
Requires careful support and implementation by line
managers
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Features of Performance
Management Systems
% use
% effective
Individual annual appraisal
65
83
Objective setting and review
62
82
Personal development plans
62
81
Career management
37
47
Coaching
36
46
Performance related pay
31
39
Competence assessment
31
39
Self appraisal
30
53
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% use
% effective
Twice yearly
27
38
360 degree
14
20
Continuous
14
20
Subordinate
11
17
Rolling
10
21
Peer
8
12
Competence related
7
11
Team
6
10
Contribution
4
6
Team pay
3
5
Source: Performance Management Survey Report September 2005 CIPD
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