Define performance appraisal (PA)
The process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating that information to employees
Define Performance management (PM)
A process which significantly affects organisational success by having managers and employees work together to set expectations, review results and reward performance
What is SA’S PERFORMANCE APPRAISAL DILEMA
- Existence of negative working culture
- Changes in corporate strategy did not result in corresponding behaviour changes
- Insufficient line management support for performance management
• Periodic and formal performance reviews:
– Lack of follow-up of performance reviews
– Overemphasis on the appraisal aspect at the
expense of development
– Inadequate performance information and
inadequately maintained objectivity
• A large number of organisations do not have a formal performance management system
Performance Criteria.
Define 3 types of performance criteria:
a) Trait-based criteria - focus on the personal characteristics of an employee (eg. loyalty, dependability, creativity and communication skills, focus on what a person is, not on what he or she does or accomplishes on the job)
b) Behaviour-based criteria - specific behaviours that lead to job success (eg. instead of ranking leadership ability (a trait), the rater is asked to assess whether an employee exhibits certain behaviours)
c) Results or outcome-based criteria - focus on what was accomplished or produced rather than how it was accomplished or produced
THE APPRAISAL PROCESS,
Name the steps in developing a PA system : (7 Steps)
1) Determine performance requirements
2) Choose an appropriate appraisal method
3) Train supervisors
4) Discuss appraisal with employees
5) Appraise according to job standards
6) Discuss appraisal with employees
7) Determine future performance goals
- Determine performance requirements
• Administrators must determine what skills, outputs and accomplishments will be evaluated during each appraisal
• Derived from specific job descriptions or they may be a uniform set of employee requirements - Choose an appropriate appraisal method
• The manner in which a supervisor conducts the PA is strongly determined by the method
• Different appraisal methods may be used for different groups such as production, sales and administrative employees - Train supervisor
• They prepare fair and accurate appraisals and effectively communicate the evaluation to the employee
• Unfair ratings may result in charge of discrimination, loss of employee morale and productivity or inaccurate appraisals - Discuss methods with employees
• Should specify which areas of performance is evaluated, how often, how the evaluation takes place and its significance to the employee - Appraise according to job standards
• Evaluate the employees work according to predetermined work requirements
• The supervisors feelings about the employee should not affect the appraisal
• The supervisor focuses on the appraisal on concrete, actual performance by the employee - Discuss appraisal with employees
• Make sure that the supervisor discuss the appraisal with their employees, allowing employees to discuss areas of agreement and disagreement
• Emphasise positive work performance - Determine future performance goals
• Use of goal-setting
• Setting goals for the employees future appraisal period is critical because it gives the employee direction for continued or improved performance
Performance problems
• Performance analysis: 3 main steps
• Performance analysis:
o Step 1: Define expectations
♣ Managers think it is unnecessary to state management’s expectations
♣ The manager may describe performance standards in vague or subjective terms, leaving the employee to decipher the job standards on their own
♣ Managers major responsibility – define clearly and precisely what good performance means
o Step 2: Identifying cause
♣ A gap exists between ideal and actual employee performance
1. Lack of skills – can be remedied in one of three ways – train the employee and remove the skill defiance, transfer the employee to a job that uses the skills the employee does possess, dismiss the employee
2. Lack of motivation – can be remedied by creating meaningful goals, reward good work, treat employees fairly, help employees grow and develop
3. Lack of respect for rules – an example of a rule-breaker is the employee who is occasionally absent or late for work, violates the dress code, swears the manager and drinks excessively during lunch
4. Personal problems – a troubled employee is one whose personal problems are so significant that they prevent the employee from performing satisfactorily at work. Many organisations have created assistance programmes
o Step 3: Select corrective approach
♣ The best approach will be one that is based upon proper analysis of the cause of the performance problem, training, transferring/demoting, work design and rehabilitation. An employee’s performance which is not up to standard needs to be managed in the correct manner
Discuss LEGAL CONSIDERATIONS
Labour Relations Act, No. 66 of 1995 = When considering a dismal must be both procedurally and substantively civil fair.
* Supervisors should be trained * Apply consistent, explicit and objective * Audit system should be estabished to guard agaist rater erros * Problem areas detailed & documented * Problems identified establish things for improvement * Give employee clear opportunity to respond * Employer should be able to prove that employee received the appraisal * Circulation of PA should be restricted * Check past PAs
Methods for appraising performance - 4 things
- Category rating method
- Comparative methods
- Behavioural/objective methods
- Narrative methods
What is WORK STANDARDS used for in the business
Primary used to measure the performance of clerical and manufacturing employees whose jobs are production- or output- oriented.
•Work standards establish the normal or
average production output for employees on the job
•This standard allows firms to pay employees on a piece-rate basis.
Name and Discuss COMMON RATER ERRORS NP
ROCHPLSS
Rater bias - Error that occurs when a rater’s values or prejudices distort the rating.
Stereotyping - Mentally classifying a person into an affinity group, and identifying the person as having the same assumed characteristics as the group.
Halo Effect - Rating a person high on all items because of performance in one area.
Central tendency - A common error in performance appraisal that occurs when employees are incorrectly rated near the average or middle of a scale
Leniency - Giving an undeserved high performance appraisal rating to an employee.
Strictness - Being unduly critical of an employee’s work performance.
Recency/primary effect - Supervisors remember what employees have done just before the appraisal because of bias.
Overall ratings - At the end of the PA then the assessor will have to give an overall rating that is not always accurate
WHO SHOULD DO THE RATING(Appraisal Rating):
Supervisors
Peer evaluation : Fellow employees
Customer/client evaluations : questionairs
Self-ratings
Reverse appraisals (Employee rate Supervisors)
Team portfolio appraisals (have the whole team rate individuals in the team.)
The appraisal interview
How sould the Interview format look
- Prepare for the interview - important in a successful appraisal interview. Supervisor (or other rater) should gather and review all relevant performance records (these include all data regarding work output and quality, absenteeism and tardiness etc.)
- State the purpose of the interview. - The employee should be told if the interview will cover compensation and staffing decisions (merit increase, promotion, transfer, etc.), employee development or both
- Indicate specific areas of good performance and areas that need improvement - begin the discussion by highlighting areas of good performance. Appreciation and recognition for good work are important parts of the appraisal interview. Areas of performance in need of improvement are discussed next
- Invite participation. - Throughout the employee should be invited to comment. This enables the employee to let off steam and tell why certain performance problems exist. It is also an opportune time to clear up any misunderstandings that may still exist about job expectations
- Focus on development - setting up the employee’s development programme. Employees are much more likely to be committed to developmental programmes if they agree with the supervisor that the programme is necessary to improve job skills and abilities. Employees who feel that no performance problems exist or that a programme of development is unnecessary to promote career goals will be uncommitted to development. Supervisors must clearly show their employees how development is related to job success
THE APPRAISAL INTERVIEW
What are common problems with the appraisal interview
• Playing God :
♣ Makes the manager and employee equals in the appraisal meeting to eliminate the parent/child relationship. If we don’t want employees to act like children, we shouldn’t act like parents
• Inability to give criticism :
♣ Important study that defensiveness and poor performance can result from criticism given during the appraisal interview
• Personality biases :
♣ Focus should be on performance and achievement of the goals and objectives, duties and responsibilities
• Inability to give effective feedback :
♣ Supervisors cloak criticism in vague, subjective terms and phrases
• Your communication skills need improving
• Your absenteeism rate is too high
• You need to change your attitude
• You need to attend training
♣ Comments such as these provide little basis for positive behaviour change
Performance Appraisal Objectives
- Evaluate:
Compensation decisions
Staffing decisions:
Evaluate selecting system - Developmental:
Performance feedback:
Direction for future performance:
Identify training and development needs:
Steps in Developing a PA system NB
No so important
- Determine performance requirements
- Choose an appropriate appraisal method
- Train supervisors
- Discussing methods with employees
- Appraisal according to job standards
- Discuss appraisal with employee
- Determine future performance goals
- Determine performance requirements
• Administrators must determine what skills, outputs and accomplishments will be evaluated during each appraisal
• Derived from specific job descriptions or they may be a uniform set of employee requirements - Choose an appropriate appraisal method
• The manner in which a supervisor conducts the PA is strongly determined by the method
• Different appraisal methods may be used for different groups such as production, sales and administrative employees - Train supervisor
• They prepare fair and accurate appraisals and effectively communicate the evaluation to the employee
• Unfair ratings may result in charge of discrimination, loss of employee morale and productivity or inaccurate appraisals - Discuss methods with employees
• Should specify which areas of performance is evaluated, how often, how the evaluation takes place and its significance to the employee - Appraise according to job standards
• Evaluate the employees work according to predetermined work requirements
• The supervisors feelings about the employee should not affect the appraisal
• The supervisor focuses on the appraisal on concrete, actual performance by the employee - Discuss appraisal with employees
• Make sure that the supervisor discuss the appraisal with their employees, allowing employees to discuss areas of agreement and disagreement
• Emphasise positive work performance - Determine future performance goals
• Use of goal-setting
• Setting goals for the employees future appraisal period is critical because it gives the employee direction for continued or improved performance
Multi rater/ 360 degree:
supervisors now interview their employees customers suppliers, peers and sometimes subordinates to develop a more complete picture of the employees performance.
Advantages of using the 360 degree assessment
♣ Improves two way communication and increases the opportunity for employee involvement.
♣ Demonstrates respect for employees by showing that their opinion counts.
♣ Creates better working relations with the organisation
Define the 3 diffrent steps in Performance analysis:
o Step 1: Define expectations:
♣ Managers think it is unnecessary to state management’s expectations
♣ The manager may describe performance standards in vague or subjective terms, leaving the employee to decipher the job standards on their own
♣ Managers major responsibility – define clearly and precisely what good performance means
o Step 2: Identifying cause:
♣ A gap exists between ideal and actual employee performance
- Lack of skills – can be remedied in one of three ways – train the employee and remove the skill defiance, transfer the employee to a job that uses the skills the employee does possess, dismiss the employee
- Lack of motivation – can be remedied by creating meaningful goals, reward good work, treat employees fairly, help employees grow and develop
- Lack of respect for rules – an example of a rule-breaker is the employee who is occasionally absent or late for work, violates the dress code, swears the manager and drinks excessively during lunch
- Personal problems – a troubled employee is one whose personal problems are so significant that they prevent the employee from performing satisfactorily at work. Many organisations have created assistance programmes
o Step 3: Select corrective approach:
♣ The best approach will be one that is based upon proper analysis of the cause of the performance problem, training, transferring/demoting, work design and rehabilitation. An employee’s performance which is not up to standard needs to be managed in the correct manner
