Performance appraisal always involves the three-step performance appraisal process, what does it entail?
(1) setting work standards;
(2) assessing the employee’s actual performance relative to those standards (this usually involves some rating form); and
(3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par.
Why should we appraise subordinates?
- First, most employers base pay, promotion, and retention decisions on the employee’s appraisal.
- Second, appraisals play a central role in the employer’s performance management process.
- Third, the appraisal lets the manager and subordinate develop a plan for correcting any deficiencies, and to reinforce the subordinate’s strengths
- Fourth, appraisals provide an opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses.
- Finally, appraisals enable the supervisor to identify if there is a training need, and the remedial steps required.
What can be appraised?
- personality
- behavior
- job performance
What is actually measured during an appraisal?
- Extent the individual conforms to the organization (Coates 1994)
- Some traditional appraisal – personality traits that were felt to be important to the job.
- Behaviour and performance on the job - E.g., resourcefulness, enthusiasm, drive, intelligence.
- Aspects of the job or major headings on the job description
Measure job objectives
What are some concerns of an appraisal?
- Treated as an administrative exercise
- Does little to improve performance of employees in the future
- Lack of clarity of purpose
- Expected to deliver in too many areas
- Used for both development and pay which conflict
- Typically designed on a central basis, usually by the HR function
- Typically requires line managers to appraise the performance of their staff
- Appraisal forms often not living forms but archived in HR departments
- Issues of performance are often neglected until the next appraisal
What are some potential appraisal problems?
- unclear standards
- central tendency
- leniency or strictness
- recency effects
- bias
What are some reasons why an appraisals system may not be effective?
- Inadequate preparation on the part of the manager
- employee is not given clear objectives at the beginning of the performance period
- performance standards may not be clear
- manager could rate personality instead of performance
- inappropriate time span for evaluation
What is performance management?
It is the continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization
What are the characteristics of the performance management system?
- Top-down link between business objectives and individual objectives
- line manager driven and owned
- a living document where performance and development plans, support and ongoing review are documented as work progresses and prior to annual review
- Performance is rewarded and reinforced
What are the stages of a typical PMS?
- definition of the business role: job description, objectives of the group or department
- Planning performance: individual objectives and development plans
- delivering and monitoring: ongoing manager support, ongoing review
- formal assessment and reward: annual assessment, link to pay
What are some advantages of perfromance management systems?
- Being tied closely to the objectives of the organisation
- Represents a more holistic view of performance
- Appraisal or review is integrated with performance planning
- Performance is assessed, and successful performance is rewarded and reinforced
What is the conceptual foundation of performance management?
- Relies on the view that performance is more than ability and motivation
- Clarity of goals is key
- Goals are seen as motivators – Goal theory
- Goals must be set participatively, and feedback provided on progress
The goal setting theory highlights four mechanisms that connects goals to performance, what are they?
- They direct attention to priorities
- They stimulate efforts
- They challenge people to bring their knowledge and skills to bear to increase their chances of success
- The more challenging the goal the more people will draw on their full range of skills.
Give a brief description of the control theory
it focuses attention on feedback as a means of shaping behaviour. Feedback is recognized as a crucial part of performance management as processes
Give a brief description of the social cognitive theory
Based on Bandura’s (1986) central concept of self-efficacy. This suggests that what people believe they can or cannot do powerfully impacts on their performance.
What does the expectancy theory say?
Individuals motivated to act provided they expect to achieve the goals set
Belief that achieving goals will lead to rewards
Belief that rewards on offer are valued
What does SMART stand for?
Specific
Measurable
Appropriate
Relevant
Timed
What is the manager’s role in delivering and monitoring performance?
Organising resources
Organising off-job training
Being accessible
Providing ongoing coaching
Providing support and guidance
What are some criticisms of the performance management system?
- System is only as good as the people who operationalise it
- Can suffer from same problems as traditional appraisal systems
- Managers can be influenced by subjective feelings
- Performance ratings can be demotivating
- SMART targets can cause problems if not reviewed and updated regularly
What is a 360-degree feedback?
It is a whole range of feedback sought from a range of people and sources. eg. peers, subordinates, internal customers, more senior managers etc.
What are some advantages of the 360-degree appraisal?
- it is more comprehensive because responses are gathered from multiple perspectives
- quality of information is better
- it complements the TQM initiatives by emphasizing internal/external customers and teams
- it lessens bias because feedback comes from different people
- feedback from peers and others may increase employee self-development
What are the disadvantages of the 360-degree appraisal?
- the system is complex in combining all the responses
- feedback can be intimidating and cause resentment if an employee feels the respondents have ganged up
- There may be conflicting opinions
- the system requires training to work effectively
- Employees may collude the system
- Appraisers may not be accountable if their evaluations are anonymouse
What factors affect an employee’s performance?
- motivation
- environment
- ability
