What is performance mgmt.?
A process which contributes to the effective management of individuals and teams
to achieve high levels of organisational performance
It establishes SHARED UNDERSTANDING about what is to be achieve and an APPROACH TO LEADING AND DEVELOPING PEOPLE which will ensure that it is achieved.
What are the goals of performance mgmt?
Goals of performance mgmt.
Performance improvement
- Throughout the organisation, in respect of individual, team and organisational effectiveness
Development
- Unless there is continuous development of individuals and teams, performance will not improve
Managing behaviour
- Ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships
What are the 5 steps of performance mgmt.?
- Performance objectives (SMART) set (Specific, measurable, attainable, relevant, time bound)
- Outcomes measured
- Results fed-back
- Rewards linked to outcomes
- Change implemented
What are the various purposes of performance appraisal?
Administrative
- Pay
- Promotion
Developmental
- Feedback
- Identifying areas for improvement
- Weeding out poor or underperforming employees
- Separation or transfer decisions
- Evaluation of contributions made by individuals/departments in achieving goals
- Supporting training and development decisions
- Evaluating success of training and development
- Work planning
What is a performance appraisal?
Performance appraisal
A performance appraisal is a method by which the job performance of an employee is documented and evaluated
What are the key elements of performance appraisal
Measurement
- Assessing performance against agreed targets and objectives
Feedback
- Providing information to the individual on the performance and progress
Positive reinforcement
- Emphasizing what has been done well and providing constructive criticism
Exchange of views
- Regarding performance improvement and support needs
Agreement
- Joint understanding of next steps
What are the approaches to performance appraisal
Self-appraisal
- Not useful on its own, but the norm as a starting point
Verbal or ‘Free text’
- Subjective and difficult to measure
Checklist of knowledge, skills, competencies and behaviours
Ranking of performance against pre-defined criteria or traits
- Need to tailor the criteria according to job roles and responsibilities
What is the CIPD guidance on appraisals?
CIPD guidance on appraisals
- What they have achieved during the review period, with examples and evidence
- Objectives not achieved, with examples and explanations
- What they enjoy about the job and how they might want to develop the role
- Any aspect of the work in which improvement is required and how
- Employee learning and development needs with supporting case
- What levels of support and guidance employees required from the manager
- Employees aspirations for the future, both in the current role and in possible future roles
- Objectives for the next period
Explain the differences between a good and bad appraisal
Good
- Appraisees do most of the talking; appraisers listen actively to what they say
- Performance is analysed, not personality
- The whole period is reviewed and not just recent or isolated events
- Achievement is recognised and reinforced
- The meeting ends positively with agreed action plans to improve and sustain performance in the future
Bad
- Focuses on a catalogue of failures and omissions
- Is controlled by the appraiser
- Ends with disagreement between appraiser and appraisee
- Leaves the appraisee feeling disengaged or demotivated by the process
What are the Potential Biases in Appraisals?
Central tendency effect
- Leniency or mid-way scoring
Halo/Horn effect
- One piece of information used to evaluate unknowns
Recency effect
- Relying on memorable info
Anchoring and adjustment
- Failing to adjust initial impression in the face of evidence
Comparison effect
- Compares performance to an employee performing other tasks
Explain how performance logs are used to avoid biases
Performance logs to avoid biases
- Record performance on an ongoing basis
- Include positive and negative behaviours
- Write observations, not assumptions
- Keep out biased language
- Be as specific as possible
- Track trends, look out for patterns/abnormalities
- Measure only those traits/behaviours that are relevant to the job and company values
Explain 360 appraisal and what is rated?
Performance rated by
- Boss
- Peer
- Subordinate
- Customer
What is rated?
Things you should:
- Stop
- Start
- Continue
- Do more of
- Do less of
- Mission, vision, values
Explain how raters should be trained in 360 appraisal
360 appraisal – rater training
- Goals of the 360-degree feedback process
- Expectations of employees involved in the process
- Methods used in administering the process
- Understanding that the process is confidential, and the meaning of confidentiality
- Understanding and filling out the feedback instrument
- What the organisation will do with the data collected
What are the advantages and problems of 360 Appraisal
Advantages
- Improved feedback from more sources
- Can save managers’ time
- Employees understand how other employees view their work
- Team development
- Teams know more about how members are performing
- Makes teams more accountable for eachother
- Personal and organisational performance development
- Responsibility for career development
- Allows them to take control of their career development
- Improved customer service
- Training needs assessment
Problems
- Design process downfalls
- Failure to connect the process
- to organisational strategy
- Insufficient information
- Usually anonymous
- Focus on negatives and weaknesses
- Rater inexperience and ineffectiveness
- Paperwork overload
What comes after an appraisal?
Employee ranking (EXAMPLE Microsoft crippling innovation)
Deloitte approach
Explain the deloitte approach?
Deloitte’s approach
Managers review performance on a continuous basis
They are asked four questions
- Given what I know of this person’s performance, I would award this person the highest possible compensation increase and bonus (5 point scale)
- I would always want him or her on my team (5 point scale)
- This person is at risk of low performance (Y/N)
- This person is ready for promotion (Y/N)
They are asking team leaders what they would DO with the individual not THINK
