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Performance Management and Performance Appraisals

Dr. Kelly Drummond

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Introduction

Performance appraisals, reviews and evaluations are all terms used to describe the process for documenting and communicating employees’ performance.

A successful performance management program helps an employer retain talented employees, keep employees engaged, enhance employee learning and build a winning corporate culture.

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Purpose

It is important for both employees and managers to understand the role these appraisals play in documenting performance issues and upholding the company’s performance management philosophy.

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Performance Management Continuum

The continuum for maintaining or improving employee job performance

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Performance Appraisal versus Performance Management

Appraisal Management

One-time event Ongoing

Retrospective Prospective

Short-term Long-term

Correction-oriented Progress steps

Assigning ratings Planning/goal-setting

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Setting Goals and Objectives

Align goals and objectives with the organization’s business plan.
Establish mutually agreed-upon goals between the employee and the manager.
Establish milestone review dates.
Communicate changes or redirection of goals and objectives in a timely manner.

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Providing Continuous Feedback

Effective performance management systems include a process for continuous feedback.�

Establish milestone dates for periodic monitoring of performance objectives and progress reports in objective terms.
Be aware that goals or objectives may need to be changed or retargeted during the review period.
Maintain open communication channels to ensure that issues are elevated quickly and resolved timely.
Coach, assist and/or redirect employees who request assistance and those who are failing to meet standards.

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Conducting Appraisals

To ensure an effective performance appraisal meeting, take the following steps:

Be prepared by collecting and reviewing performance notes, feedback and other data.
Request self-appraisals from employees to be completed two weeks prior to the appraisal meeting.
Choose a private and comfortable space for the meeting and schedule sufficient time to focus on the review.
Encourage open dialogue regarding performance levels, lessons learned, ongoing progress, and goals and objectives for the next review period.

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�Employee Self-Evaluations �

The performance management philosophy emphasizes the important role employees play in identifying and setting company and individual performance goals and standards.

Employees are asked to evaluate their individual performance and contributions to our company’s goals.

Self evaluations include thorough and timely approach in the appraisal process to help facilitate a fair and comprehensive review of the employee’s progress and accomplishments since the last performance review.

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Sample Self-Assessment Questions �Activity - How would you rate yourself

Since the last appraisal period, have you successfully performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify.

What activities have you initiated, or actively participated in, to encourage camaraderie and teamwork within your group and/or office? What was the result?

Describe areas you feel require improvement in terms of your professional capabilities. List the steps you plan to take and/or the resources you need to accomplish this.

Identify two career goals for the coming year and indicate how you plan to accomplish them.

Rate yourself (1 [lowest] - 5 [highest]) Interpersonal Skills (positive attitude; ability to get along well with co-workers/clients/vendors)

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Rater Errors

Managers sometimes make errors in judgement due to their own perceptions and biases. Some common rater errors include the following:

Halo effect - the individual’s performance is completely appraised based on a perceived positive quality, feature or trait (the employee can do no wrong).
Horn effect - the individual’s performance is completely appraised based on a perceived negative quality or feature (the employee can only do wrong).
Central tendency - lack of rating differentiation between employees.
Leniency - avoidance of honest ratings to avoid conflict.
Recency effect - narrow focus on recent events rather than the entire performance period.
Similarity/”like me”- favorable ratings given to employees who have similar values or interests to the rater.

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Rater Errors (cont.)

Tips to avoid rater errors:

Make objective statements – “Jorge arrived late on four occasions” rather than “Jorge is always late.”
Consider the totality of the employee’s performance over the entire review period.
Make and keep adequate records with specific examples.
Establish milestones for progress reviews.
Seek input from other managers or human resources.
Participate in an organization-wide calibration process.

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Summary

Performance appraisal and performance management differ in form and frequency of occurrence.
It is important to plan for performance appraisals and establish an appropriate environment for them.
Develop ongoing performance communication by recognizing performance management is a continuing process.
Rater errors should be identified and avoided.

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Questions? Thoughts?

Thank you for your time.