Performance Management and Appraisal

Performance Management
A process that consolidates goal setting, performance appraisal, and development into a single, common system, the aim of which is to ensure that employees performance is supporting the companys strategic aim.

Performance Appraisal

The process by which employees are assessed for purposes of enhancing their development or formulating an administrative decision

Goal Setting

SMART At the end of the previous cycle Broad guidelines by the superior after feedback on previous appraisal Targets set by the appraisee in consultation with the superior Documenting clearly in the P-MAP

Goals Expected Results Expected Dates Ways/Actions to Achieve Results Resources/Support Needed

Balanced Scorecard
The balanced scorecard tracks key elements of a companys strategy and gives managers a fast but comprehensive view of the business.

Includes not only the financial measures but also the operational measures. Is future-oriented. Shows not only what results are achieved but also how they were achieved.

Translating Vision and Strategy: Four Perspectives

FINANCIAL To succeed Objectives Measures financially, how should we appear to our shareholders?

Targets

Initiatives

CUSTOMER

To achieve Objectives our vision, how should we appear to our customers?

Measures

Targets

Initiatives

VISION & STRATEGY

To satisfy our INTERNAL BUSINESS PROCESS shareholders Objectives Measures Targets Initiatives & customers, what business processes must we excel at?

To achieve our vision, how will we sustain our ability to change & improve?

LEARNING & GROWTH

Objectives Measures Targets Initiatives

Defining the Employees Goals and work Standards

Assign Specific Goals Assign Measurable Goals Assign Challenging but Doable Goals Encourage Participation

The Appraisal Method

Graphic Rating Scale Method

A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that describes his/her level of performance for each trait.

Alternative Ranking Method

Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Paired Comparison Method

Ranking employees by making a chart of all possible pairs of employees for each trait and indicating which is the better employee of the pair.

Forced Distribution Method

Similar to grading on a curve, predetermined percentages of ratees are placed in various performance categories.

Other Forms of Performance Appraisal

Narrative Forms Annual Confidential Report (ACR) Critical Incident Method Behaviorally Anchored Rating Scales

BAR : Participation and contribution to team Projects

Make an extra effort and put in extra time to help team finish a project Initiate team discussion on how to solve problems

Participate in problem solving by sharing good ideas Friendly and cooperative while working with others

Socialize while other team members are working

Developing a BARS typically requires five steps:

General critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument.

Advantages of BARS

A more accurate gauge Clearer standards Feedback Independent dimensions Consistency

Management by Objectives
MBO generally refers to a comprehensive and formal organization wide goal setting and appraisal program consisting of six steps:

Set the organizations goals Set departmental goals Discuss departmental goals

Management by Objectives [Contd.]

Define expected results Performance reviews Provide feedback

Appraising Performance: Problems

Potential Rating Scale Appraisal Problems

Unclear Standards Halo Effect

In performance appraisal the problem that occurs when a supervisors rating of a subordinate on one trait biases the rating that person on other traits.

Appraising Performance: Problems [Contd.]

Potential Rating Scale Appraisal Problems

Central Tendency A tendency to rate all employees the same way, such as rating them all average. Leniency or Strictness The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low. Bias The tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive.

How to Avoid Appraisal Problems

Know problems Use Right Tool Train Supervisors Control Outside Influences Keep a Diary

Who Should Do the Appraising?

The Immediate Supervisor Peer Appraisals Rating Committees Self- Ratings Appraisal by Subordinates 360 Degree Feedback

Performance Counseling

What it is?

The help provided by a manager to his/her subordinates in analyzing their performance and other job behaviors in order to increase their job effectiveness. Performance counseling essentially focuses on the job, and identification of training needs for further improvement.

Performance Counseling

Relationship Superior Counselee

Mutuality & Confidentiality

Conditions for Effective Counseling

General climate of openness and mutuality General helpful and empathic attitude of management Sense of uninhibited participation by the subordinates in the performance review process Dialogic relationship in goal setting and performance review

Conditions for Effective Counseling

Focus on work oriented behaviour Focus on work oriented problems and difficulties Avoidance of discussion of salary and other rewards

What constitutes counseling?

Counseling is given by one who is senior to the other person in competence, or in knowledge, or in psychological expertise, or in the hierarchical position in the organization. 3 processes involved:

Communication Influencing Helping

What constitutes counseling?

Listens

Responds

Influences

Feedback Direction

Helping !

Concern Empathy the counselor has for the counselee Mutuality of relationship Helping primarily involves identification of developmental needs of the counselee so that s/he may be able to develop and increase effectiveness.

Listening Feedback

Responding
Communication

Empathy Develop ment

Helping

Counselling

Mutuality

Influencing

Identification

+ve Reinforce Autonomy

Communication

Communication

The general climate of conversation in performance review should be congenial which may help the employee to be in a receptive mood. Communication may get distorted if people are not empathic to each other and do not try to understand each others point of view. Non-verbal communication is as important as verbal communication.

Communication

People speak much more through gestures and postures than through the words. The tone and manner of speaking is also important.

Listening

Ideas (Cognitive message) gets communicated. But more hidden be the feelings and the concerns the other person may not be able to put clearly in words.

Asking questions and responding

Getting more information Establishing mutuality Clarifying matters Stimulating thinking

You are worried about your lack of knowledge of the new system. Is that so?
This helps to bring manager and the employee to remain at the same level.

Empathic Questions

How is your son now?

Open Question
Why do you think we have not achieved the targets this year while the other company has done so?

DONT MAKE THE COUNSELLEE DEPENDANT ON YOU.

Questions that wont help

Critical Questions

Why did you fail to achieve your targets?

Why could you not attain your targets?

How did you again fall short of your target? How can you achieve this target you failed last time?

Testing Questions

A reporting officer who proposes to find out why his employee was not able to meet his target can easily slip into a cross-examination, testing or evaluating posture.

Leading Questions

Were you not able to attain the target because the Maintenance Department did not cooperate?

Feedback

Feedback

Descriptive Focused on behavior of the person and not on the person. Is data based and specific, not impressionistic Reinforce positive new behaviour Personal, giving data from ones own experience

Feedback

Is need based and solicited Is intended to help Is focused on modifiable behaviour Satisfies needs of both the feedback giver and one who receives feedback Is checked and verified Is well timed Contribute to mutuality and building up relationship

Influencing

Flander makes a distinction Direct Mode restricts the freedom of the other personcriticism/punishment Indirect Mode- encourage

Some suggested techniques

You-we technique Second hand compliment

Counseling special type of employees

The overassertive

Acknowledge the controllers ability to overpower and get him/her on his/her own way.

The Defiant Personality

Plenty of warmth, respect

Frustrated and Depressed Employees

S/he is a person in perpetual motion, a driver. His/her over dedication rarely allow him/her to rest. Manipulating and exploiter

Underachieving Employees

Rejected child Empathy