PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT

Copyright 2000 - South-Western College Publishing Module 15 - 1

PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT

Performance appraisal -- setting standards, informing employees, ratings and feedback.

Performance management -- “all of those processes led by managers to help employees perform as effectively as they can.”


TEMPLATE


GOALS OF PERFORMANCE MANAGEMENT

Improve employee performance Develop people for promotional opportunities Meet employee need for feedback Ensure that employees are working toward

organizational goals Provide the data needed to make and defend

important human resources decisions


LEGAL ISSUES IN PERFORMANCE MANAGEMENT

Job-related or valid Minimum subjectivity Consistent application/procedural

fairness Instructions and training for appraisers Forewarning


THE PERFORMANCE MANAGEMENT CYCLE

1.

DEFINE THE JOB

RELATE THE WORK PERFORMED BYINDIVIDUALS TO EMPLOYER GOALS,VALUES AND CUSTOMEREXPECTATIONS

MADE DECISIONS

MERIT PAY, RETENTION,ETC.

SOLVE PROBLEMS

DEFINE AND SOLVE PERFORMANCE-RELATED AND OTHERORGANIZATIONAL PROBLEMS

DEVELOP EMPLOYEE

MANAGE AND DEVELOPCAREER GOALS OFEMPLOYEE

SET EXPECTATIONS

PAINT A PICTURE OFA GOOD JOB

CONDUCT REVIEW

APPRAISE PERFORMANCEAND HOLD PERIODICREVIEWS

MONITORPERFORMANCE

GIVE ONGOINGFEEDBACK


SETTING EXPECTATIONS Review organizational and unit goals and

individual performance expectations. Identify duties,objectives, and projects. Describe performance measures and

standards. Identify performance factors. Develop a monitoring plan.


GOOD OBJECTIVES ARE “SMART”

S Smart M Measurable A Aligned with organizational/unit goals R Realistic and results-oriented T Time-limited


CONDUCTING THE INTERVIEW

Your attitude and preparation are critical. Review the purpose of the interview. Start out with the positives. Stay objective. Be honest. Don’t blame -- discuss how to improve.


CONDUCTING THE INTERVIEW

Do not discuss personality unless you can show a direct impact on performance.

Don’t use loaded words, e.g always, never. Stay realistic. Listen more than you talk. Pay attention to your non-verbals.


COMMON RATER ERRORS HALO, HORNS RECENCY LENIENCY/SEVERITY/CENTRAL

TENDENCY SIMILARITY STEREOTYPES CONTRAST EFFECT SELECTIVE PERCEPTION


OVERCOMING BIASES Recognize the ones you have. Share expectations with the appraisee. Keep a “log” of events during the year. Give regular feedback (no surprises!). Review your draft appraisal with someone. Remind yourself of your biases before

every performance appraisal conference.


CURRENT ISSUES IN PERFORMANCE MANAGEMENT

The focus on ratings and rewards Too much for one rater to appraise The system is too top down Team-based work systems Total Quality Management


PERFORMANCE MANAGEMENT INNOVATIONS

Increased employee involvement Less focus on ratings and rewards Multi-rater systems (i.e., 360 degree

feedback, peer reviews)


IMPLEMENTATION ISSUES AND STRATEGIES

Involvement of users in development Pilot programs Implementation in one unit Staggered implementation


OBSTACLES TO SUCCESSFUL IMPLEMENTATION

Lack of commitment from the top Overselling the program A program excessive in paperwork and

administrative requirements Failing to train and retrain appraisers Changing the system Failing to monitor the program and deal with

non-compliance

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PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT