leadership

Chapter24.pptx

Chapter 24 Performance Appraisal

Learning Objectives

1. Identify factors that increase the likelihood that a performance appraisal will develop and motivate staff (ATI p 13—Performance Appraisal, Peer Review/Disciplinary Action) (Text p 657-58)

2. Gather data for performance appraisals in a systematic manner that is fair and objective (ATI p 13—Performance Appraisal and Peer Review) (Text p 659-61)

3. Differentiate between performance appraisal tools such as rating scales, checklists, essays, self-appraisal, and management by objectives (ATI p 13) (Text p 662-67)

Learning Objectives

4. Identify strategies to help employees complete objective, accurate, and growth-producing self-appraisals as part of the performance appraisal process (Text-Learning Exercise 24.4 p 667)

5. Describe the challenges inherent in implementing peer review for performance appraisal (Text 668-69)

6. Identify strategies that can be used before, during and after the performance appraisal to increase the likelihood of a positive outcome (ATI p 13—Performance Appraisal) (Text 671-74)

Performance Appraisal #1

The employee performance appraisal is a sensitive and important part of the management process, requiring much skill.

Performance appraisals are used to determine how well employees are performing their job. Therefore, appraisals measure actual behavior and not intent.

Performance Appraisal #2

Because of past experiences, performance appraisal interviews are highly charged, emotional events for most employees.

However, when accurate and appropriate appraisal assessments are performed, outcomes can be very positive.

Day-to-Day Feedback

Day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach.

The Opportunity for Positive Feedback

Some employees look at their annual performance review as an opportunity to receive positive feedback from their supervisor, especially if the employee receives infrequent praise on a day-to-day basis.

Factors Influencing Effective Performance Appraisal #1

Appraisals should be based on predetermined standards.

The appraisal tool must adequately and accurately assess job performance.

Employees should have input into development of the standards.

Employees must know the standards in advance.

Factors Influencing Effective Performance Appraisal #2

Employee must know the sources of data gathered for the appraisal.

The appraiser should be someone who has directly observed the employee’s work.

The appraiser should be someone who the employee trusts and respects.

Strategies to Ensure Performance Appraisal Accuracy #1

Develop self-awareness regarding own biases and prejudices.

Use appropriate consultation.

Gather data adequately over time.

Strategies to Ensure Performance Appraisal Accuracy #2

Keep accurate anecdotal records for the length of the appraisal period.

Collect positive data and identify areas where improvement is needed.

Include employee’s own appraisal of his or her performance.

Strategies to Ensure Performance Appraisal Accuracy #3

Guard against the halo effect, horns effect, central tendency trap, and Matthew effect!

The “Recency,” “Halo,” and “Horns” Effect Errors

The recency effect occurs when recent issues are weighed more heavily than past performance.

The halo effect occurs when the appraiser lets one or two positive aspects of the assessment or behavior of the employee unduly influence all other aspects of the employee’s performance.

The horns effect occurs when the appraiser allows some negative aspects of the employee’s performance to influence the assessment to such an extent that other levels of job performance are not accurately recorded.

Developing Standards for Performance Appraisal

Employees should have some input into developing the standards or goals on which their performance is judged.

If employees believe the appraisal is based on their job description rather than on whether the manager approves of them, they are more likely to view the appraisal as relevant.

Types of Performance Appraisal Tools #1

Trait rating scales: rates an individual against some standard

Job dimension scales: rates the performance on job requirements

Behaviorally anchored rating scales: rates desired job expectations on a scale of importance to the position

Checklists: rates the performance against a set list of desirable job behaviors

Trait Rating Scales

A method of rating a person against a set standard, which may be the job description, desired behaviors, or personal traits

Probably the most widely used of the many available appraisal methods

Types of Performance Appraisal Tools #2

Essays: a narrative appraisal of job performance

Self-appraisals: an appraisal of performance by the employee

Management by objectives: employee and management agree upon goals of performance to be reached.

Peer review: assessment of work performance carried out by peers

Types of Performance Appraisal Tools #3

Self-appraisal is not easy for many employees because they often undervalue their own accomplishments or feel uncomfortable giving themselves high marks in many areas.

Pitfalls in Performance Appraisal

Subjectivity is a factor.

Tendency to be lenient

Inadequate record keeping

“Recency effect”

Planning the Appraisal Interview

Feedback, perhaps the greatest tool a manager has for changing behavior, must be given in an appropriate manner.

Indirectness and ambiguity are more likely to inhibit communication than enhance it, and the employee is left unsure about the significance of the message.

Effective Performance Appraisals #1

There should be no surprises in the appraisal conference. The effective leader coaches and communicates informally with staff on a continual basis, so there should be little new information at an appraisal conference.

Effective Performance Appraisals #2

Employees must know in advance what happens if standards are not met.

Employees must know how information will be obtained to determine performance level.

360-Degree Evaluation

The 360-degree evaluation includes an assessment by all individuals within the sphere of influence of the individual being appraised.

Management by Objectives #1

The employee and supervisor meet and agree on the principal duties and responsibilities of the employee’s job.

The employee sets short-term goals and target dates in cooperation with the supervisor or manager.

Both parties agree on the criteria that will be used for measuring and evaluating the accomplishment of goals.

Management by Objectives #2

The employee and supervisor meet regularly to discuss progress.

The manager’s role is supportive, assisting the employee to reach goals by coaching and counseling.

During the appraisal process, the manager determines whether the employee has met the goals.

The entire process focuses on outcomes and results, and not on personal traits.

Peer Review

Peer review has great potential for developing professional accountability but is often difficult to implement because it requires risk taking to avoid becoming simply an exercise of advocacy.

Performance Management

Appraisals are eliminated as the manager places his or her efforts into ongoing coaching, mutual goal setting, and the leadership training of subordinates.

The performance management calendar is generally linked to the organization's business calendar.

Coaching as Part of the Performance Appraisal Process

The effective manager and astute leader are aware that day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach.

Reflective Practice or Clinical Coaching

In reflective practice or clinical coaching, the manager or mentor meets with an employee regularly to discuss aspects of his or her work.

Both individuals determine the agenda jointly, with the goal of an environment of learning that can span the personal and professional aspects of the employee’s experience.

Strategies for Becoming an Effective Coach

Be specific, not general in describing behavior that needs improvement.

Be descriptive, not evaluative, when describing what was wrong with the performance.

Be certain that the feedback is not self-serving but meets the needs of the employee,

Direct the feedback toward behavior that can be changed.

Use sensitivity in timing the feedback and make sure employees understand feedback.