HUMAN RESOURCE

MANAGEMENT Course 8

Employee performance

management

OVERVIEW

Performance appraisal

Performance management

360-Degree feedback

Have you ever participated in a performance

appraisal?

What is your best and/or worst memory of a

performance appraisal that you participated in?

What do you think managers hope to accomplish

with a performance appraisal?

PERFORMANCE

APPRAISAL

Traditionally: performance appraisal systems

provide a formalized process to review employee

performance.

Each line manager has to appraise the

performance of their staff, usually each year.

Performance review meeting

Forms are often completed

What is being appraised might cover personality,

behaviour performance, or job performance, with

measures being either quantitative or qualitative

METHODS USED TO MAKE THE

PERFORMANCE APPRAISAL MORE

OBJECTIVE

Linking ratings to behaviour and performance on

the job

Using the process to set job objectives over the

coming period of time and measuring the extent

to which these objectives have been met

Collecting primary data via various forms of

electronic surveillance system

PERFORMANCE APPRAISAL

SYSTEM

Focus on: development, identifying future

potential, reward, identifying poor performers, or

motivation

Problem: the lack of clarity of purpose

Most common reasons for failure of an

appraisal system:

unclear performance criteria or an ineffective rating

instrument;

poor working relationships with the boss;

the appraiser lacked information on the manager’s

actual performance.

EXERCISE 1

Sometimes is hard not to judge people by their

personalities and appearances. To be a caring

and fair manager, you need to understand that

and be sure employee evaluations are based on

performance alone.

Use the worksheet and label each comment as

either an evaluation of performance (PF) or

personality (PS)

EIGHT STEPS FOR CONDUCTING A

PERFORMANCE APPRAISAL

1. Control the environment: schedule a time, reduce interruptions,

warm-up.

2. State the purpose of the discussion: go over advantages of the

appraisal process, tell what information will be used for the evaluation.

3. Ask for the employee’s opinion: ask how the employee thinks he or

she did, use open-ended questions, use your best listening skills.

4. Present your assessment: be candid and specific, give corrective

feedback, give positive feedback.

5. Build on the employee’s strengths: ask the employee to name his or

her strengths, Share your opinion of those strengths, focus on performance,

not personality.

6. Ask for the employee’s reaction to your assessment: listen to

what the employee has to say, reach an agreement on the evaluation rating.

7. Set specific goals: list opportunity areas for improvement, identify

current training needs, set realistic but stretching goals.

8. Close the discussion: summarize the meeting, sign the appraisal form,

thank the employee and explain the next step.

TIPS FOR EMPLOYEES

Be positive and open.

You can offer suggestions for improvement of

certain identified areas.

Take sufficient time to prepare for your

performance meeting with your supervisor. This

meeting is one of the best opportunities you have

to freely discuss your performance and goals with

your supervisor.

TIPS FOR SUPERVISORS

Be objective.

Consider each performance area independently.

Base your appraisal on observed performance

during the appraisal period, not on what is

expected in the future.

Evaluate overall performance throughout the

entire appraisal period. Do not base the ratings

only on significant successes and failures.

The appraisal process should serve as a stimulus

for better communication between you and the

employee.

EXERCISE

2 different scenarios

Roles: employee, supervisor, observer

As an employee please answer the questions

As a supervisor please prepare the questions that

you want to ask and write down both the

questions and the answers that you receive

As an observer please record your observations

SCENARIO 1

You are the supervisor of Joe, a personal banker at

your branch office of First Bank. Joe is excellent with

elderly customers and small-business owners. They

ask for him when they come in and are willing to wait

until he is available. His cross-sell ratio for current

customers exceeds the goal of 2.95. His cross-sell ratio

for new customers falls short of the goal of 2.10. Joe

volunteers to help with special projects, especially

loan projects. However, he resents working Saturdays

and only does so when asked. Joe eventually wants to

be a branch manager. Joe is also punctual and has a

satisfactory attendance record.

SCENARIO 2

You are the supervisor of Sally, who has been

your secretary for the past six months. She

accurately completes the work you give her, often

finishing before the deadline. As a result of being

an efficient worker, she usually has spare time on

her hands. The problem is that she spends that

time unproductively.

PERFORMANCE MANAGEMENT

Establishing a framework in which performance

by human resources can be directed, monitored,

motivated and refined, and that the links in the

cycle can be audited.

Performance appraisal is almost always a key

part of the system, but is integrated with

performance planning, which links an

individual’s objectives to business objectives to

ensure that employee effort is directed towards

organisational priorities, that performance is

assessed and successful performance rewarded

and reinforced.

CHARACTERISTICS OF PERFORMANCE

MANAGEMENT SYSTEMS

Top-down link between business objectives and

individual objectives (compared with performance

appraisal where there may be no objectives, or

objectives not explicitly linked to business objectives)

Line manager driven and owned (rather than

being owned by the HR function, as typically with

performance appraisal)

A living document where performance and

development plans, support and ongoing review

are documented as work progresses, and prior

to annual review (rather than an archived

document retrieved at appraisal time to compare

achievement with intentions)

Performance is rewarded and reinforced

STAGES OF A TYPICAL PERFORMANCE

MANAGEMENT SYSTEM

STAGES OF A PERFORMANCE

MANAGEMENT SYSTEM

Business mission, values, objectives and

competencies: before it is able to plan and manage

individual performance the organisation will have

made significant steps in identifying the

performance required of the organisation as a whole.

Planning performance: setting SMART objectives

and a shared view of expected performance

Delivering and monitoring performance: the

employee is working to achieve the performance

agreed and the manager retains a key enabling role

Formal performance review/assessment and

reward: promotion/ development/ money,

INDIVIDUAL VS. TEAM

PERFORMANCE MANAGEMENT

How organisations can use performance

management to support team performance

as well as individual performance?

IMPLEMENTATION AND CRITIQUE OF

PERFORMANCE MANAGEMENT

Performance management needs to be line driven

rather than HR driven

Possible problems that appear:

Lack of integration of activities might be a problem

The use of ratings is seen as subjective and

inconsistent

Performance ratings can be seen as de-motivating

Regarding individual objective setting linked to

organisational performance objectives, there are

problems when strategy is unclear and when it

evolves

SMART targets can be problematic if they are not

constantly reviewed and updated

360-DEGREE FEEDBACK

Refers to the use of the whole range of sources from which

feedback can be collected about any individual

Provides a better way to capture the complexities of

performance

The feedback is usually presented to the individual in the form

of graphs or bar charts showing comparative scores from

different feedback groups

The feedback will need to be interpreted by an internal or

external facilitator

The principle behind the idea of feedback is that individuals

can then use this information to change their behaviours and

to improve performance

360-degree feedback needs to be handled carefully and

sensitively and in the context of an appropriate organisational

climate so that it is not experienced as a threat

360-DEGREE FEEDBACK

It is important to:

Prepare people for making their own ratings and

on how they can provide honest and constructive

feedback to others,

Ensure confidentiality and anonymity of raters,

Make sure the feedback is used developmentally

and owned by the person being rated (for

example that person may be the only one to

receive the report),

Provide post-feedback coaching and

encouragement

Encourage people to follow up the feedback they

have received

QUESTIONS

Does every employee need feedback? Why or why

not?

In what ways can you help put employees at ease

in order to reduce fear or apprehension?

Is evaluating yourself as a manager important?

Why?

EXERCISE

Please complete the self-evaluation form that you

receive considering that your current “job” is

being a student