Documente Academic
Documente Profesional
Documente Cultură
Topic
Performance Management
PMS Framework
2
Performance Cycle
Corp Mission & Strategy
Action work
Development & Support
Common Understanding
of the organizations
priorities and goals
Reward
Reward
Performance
Rewards Planning
Commitment
High Clear Expectations
based on
for individual
meaningful Performance and group Career
Career Development
Development
work and rewards
contributions
4
Methods of Performance Appraisal
Output
Measures
Computerized
Monitoring
5
Methods of Performance Appraisal
Judgmental Methods
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Narrative Essay
Benefits
Less investment
Good for small organization
Drawbacks
Unstructured (e.g., content, length)
Affected by the writing ability of
appraisee as well as of supervisors
and time availability
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Commonly used PA Methods
Graphic Rating Scale
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Graphic Rating Scale
Characteristics
compare individuals in terms of the best and worst
ratings
assess the relative strengths and weaknesses
individual
Common Drawbacks
self interpretation
inconsistency
situational factors
halo, leniency, strictness & central tendency errors
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Commonly used PA Methods
Behaviorally Anchored Rating Scales (BARS)
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Behaviorally Anchored Rating Scales (BARS)
BARS should overcome
self interpretation
inconsistency
situational factors
halo, leniency, strictness & central tendency errors
BARS should;
make assessors focus on performance
be easier to use and discuss
increase inter-rater reliability
Common Drawbacks
Long design time
developing a graduated scale with descriptions is a lengthy process
Job specificity
a BAR for one job does not translate to another job
Hard to apply to managerial/professional jobs
where job outputs cant be directly measured, BARs usually become general
behavioural descriptions
the behaviours described are assumed to be relevant to performance
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Management By Objective (MBO)
Benefits
helps and increase employee
motivation by relating an individuals Plan
goals with the organizational goals.
Reduces role conflict and ambiguity Access &
Frequent review sessions help identify Feedback MBO
problems early
Helps understand the training needs.
Drawbacks Action &
Monitor
Lengthy, intensive and time consuming
process
Subordinates may try to set the lowest
possible targets to avoid not meeting
them
Just focuses on lag indicators
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Balanced Scorecard (BSC)
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Key Trends in Performance Appraisal
Use of Performance Appraisal
Most companies use performance appraisal results for multiple purposes
(e.g., compensation, selection, and training)
92% of companies actually conduct performance appraisal review
(increased from 79% in previous years)
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Key Trends in Performance Appraisal
Frequency
Most firms evaluate employee performance at yearly
intervals
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Recommendations
De-link promotion cycle from appraisal process as past performance
is not necessarily indicative of readiness to take up new role
Make performance review / feedback a continuous process
If organization culture is flat and collaborative, make use of 360
degree appraisal process as it makes process more transparent and
fair
Assess/review behaviour and develop individuals
Be consistent in applying performance standards across employees
Embrace the One Minute Management principles
Goal Setting: Shared understanding of goals / expectations
Praising Good Performance: Help People Reach Their Full Potential
Catch Them Doing Something Right
Development Feedback: We Are Not Just Our Behavior We Are The
Person Managing Our Behavior
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References
Articles
Current trends in performance appraisal: an examination of managerial
practice. by Brien N. Smith , Jeffrey S. Hornsby , Roslyn Shirmeyer, 2008
Stuart Crainer (2004). When the assets leave the parking lot at night:
Retaining and motivating knowledge workers. MBA in a Box, 242-250.
Performance appraisal in the changing world of work: implications for the
meaning and measurement of work performance, Canadian Psychology,
Feb-May 1998 by Sulsky, Lorne M
Books
The One Minute Manager, Kenneth Blanchard & Spencer Johnson,
HyperCollins Publishers India
MBA in a Box, Joel Kurtzman, Crown Business, New York
Journals
Bretz, R. D., Milkovich, G. T. & Read, W. (1992). The current state of
performance appraisal research and practice: Concerns, directions, and
implications. Journal of Management, 18(2), 321-352
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Transparency?
21
Bitter Truth?
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Transparency!
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Sources of Appraisal Information
1) Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
2) Co-Workers (Peers)
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback
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Sources of Appraisal Information
3) Self
Lots of knowledge
Leniency effect
Good preparation for performance appraisal meeting (conducive
for dialog)
4) Subordinates
Biases (e.g., # of subordinates, type of job, expected evaluation
from supervisor)
5) Client
Good source of feedback
Negativity bias
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4 Key Implementation Challenges
Lack of valid
performance
appraisal process
Lack of Lack of dialogue
consistency with line
management
Lack of
transparency
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Blending of BARS & Graphic Rating Scale
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RATING DISTRIBUTION
ORG. PERF.
LEVEL
Rating 1 Rating 2 Rating 3 Rating 4 Rating 5
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Normalization / Rationalization of Ratings
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How to receive
Giving the Feedback
Feedback
Keep an open mind
Feedback is received with appreciation when it is descriptive, non
Listen to understand
evaluative and non judgmental
Do not interrupt
The closer the feedback to the event, it describes it better Timely
Control tendency to react fast
Be clear and specific
Seek further clarification / elaboration
Concentrate on things a person can change focus on behavior and not on
Keep reality in perspective
traits
Discuss suggestions for improvement
Ask question to conform the understanding
Obtain further information
Be sensitive to the recipients readiness and needs
Change is a function of Desire, Dedication & Persistence
Check for receptivity
Listen to understand
Do not interrupt
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