Primary Purposes of Performance Evaluations

1
Primary Purposes of Performance Evaluations
Use of Data
Percent

• Compensation (Decision-making)
• Performance Feedback (Development)
• Training (Development)
• Promotion (Decision-making)
• Human Resource Planning
• Retention/Discharge (Decision-making)

85.6 65.1 64.3 45.3 43.1 30.3
Based on responses from 600 organizations
2
Performance Evaluation MethodsHow

• Objective
• Management by objectives
• Numerical counts
• Units produced, sales calls made, patients seen
  per day
• Subjective
• Based on individuals perceptions
• Identify performance dimensions
• Develop scale or measure to assess employees
  standing on each dimension
• Ranking of employees
• Highest to lowest on performance measures

3
Subjective Scale Methods

• Graphic rating scale
• How courteous is the salesperson toward
  customers?
• (1) Very discourteousVery courteous (7)
• Behaviorally anchored rating scale
• (1) Ignores customers (2) Keeps customers
  waiting (4) Answers questions promptly.(7)
  Greets customers pleasantly and always tries
  sincerely to help customers locate items to suit
  their needs
• Behavioral observation scale
• Pleasantly greets customers
• almost neveralmost always (7)

4
Subjective Scale Methods (cont.)

• BARS BOS
• More time consuming to develop and to complete in
  comparison to a graphic rating scale
• Appraise more specific behaviors and thus provide
  a better source of feedback

5
Other Subjective Methods

• Written essays
• Narrative of employees strengths and weaknesses,
  and suggestions for improvement
• Critical incidents
• Written anecdotes of effective or ineffective
  behaviors
• Can supplement other forms of appraisal, add to
  ones file

6
Who Should Evaluate Performance?

• Supervisors
• 95 of immediate supervisors evaluate
  subordinates
• Peers
• Closer to the action
• Potentially more interactions with workers and
  observations of work behaviors
• More sources of data
• Some hesitation to evaluate peers
• Issues of friendship

7
Who Should Evaluate Performance? (cont)

• Self-evaluations
• Advantages
• Stimulates discussion, very useful as a
  developmental tool
• Less subordinate defensiveness
• Increases satisfaction with evaluations
• Disadvantages
• Self-evaluations tend to be inflated
• Almost no one rates oneself below average
• Self-serving bias

8
Who Should Evaluate Performance? (cont)

• Subordinates (upward evaluations)
• Consistent with employee empowerment and concerns
  for employee development
• Issues
• Should the individual evaluations completed by
  subordinates be anonymous?
• Who should review the evaluations?

9
360-Degree Evaluations

• Objective is to pool feedback from all of the
  employees customers (internal external)
• 20 of organizations are currently using this
  approach another 20 are considering
  implementing it this year (2001)
• Alcoa, Du Pont, Levi Strauss, Sprint,
• Why might organizations use this approach?

10
Performance Appraisal the Fair-process Effect

• Independent of the amount of the raise, employees
  who perceive that performance appraisals are
  conducted in a fair manner, report more
  satisfaction with pay and more satisfaction with
  the appraisal itself

11
Attributes of a Fair Performance Appraisal

• Specific behavioral objectives (performance
  criteria) are identified and communicated in
  advance
• Subordinates have an opportunity to provide input
  in terms of setting the performance objectives
• Helps ensure that evaluation criteria are
  appropriate, understood, and
  accepted
• Behaviors - not traits- are evaluated
• Reports are finished late versus you are lazy

12
Attributes of a Fair Performance Appraisal
(continued)

• Appraisal is based upon accurate information
• Supervisor diaries
• Check for accuracy (does the subordinate have
  anything different?)
• Employee provides a review of activities,
  accomplishments achieved, and progress made
  during the period (self-evaluation)
• Appraisals conducted more often (timeliness)
• Once a quarter as opposed to once a year

13
Communication Interpersonal Relationships

• Giving feedback and criticism concerning
  performance issues
• Fear of alienating or offending subordinates
• Fear of reducing their morale/motivation
• Common practices (ineffective)
• dont worry
• To protect relationship avoid hurting feelings
• shape up or ship out
• Ignores subordinate reactions feelings

14
Supportive Communication / Criticism

• Preserves a positive relationship between the
  communicators and still addresses the problem at
  hand
• Helpful attitude directed toward solving problems
• Participative
• Positive manager/sub interpersonal relationships
• Not merely to be liked or judged as a nice
  person
• Practical instrumental value
• Most powerful predictor of profitability, 3 times
  better than sales growth rate, firm size,
  market share combined

15
Attributes of Supportive Communication

• Problem oriented, not person oriented
• A focus on problems issues that can be changes
• going forward, how can we solve this problem?
• NOT, because of you.
• Participative supportive listening
• What do you think are the obstacles standing in
  the way of improvement?

16
Attributes of Supportive Communication

• Specific, not global
• A focus on specific events behaviors, avoiding
  general or extreme statements
• Your work was late 3 times this month
• NOT, Your work is always late
• Validating, not invalidating
• A focus on statements that communicate respect
  collaboration
• I have some ideas, but first do you have any
  suggestions?
• NOT, Here is how you will proceed

17
Coaching and Counseling Situations

• Coaching
• When managers must pass along performance related
  advice, information, standards (ability issues)
• I can help you, lets work together on this
• Directive, accurate, specific
• Counseling
• When problems result from attitudes, personality
  clashes, defensiveness, or emotions
• Goal convey that a problem exists
• This is what is perceived
• Not directive
• Effects on others

18
Finding the reasons for problems

• Probing responses
• Asks a questions about what the person just said
• Intends to acquire more information to help the
  communicator say more
• Neutral in tone
• Can you tell me more about that?
• What do you mean, help me understand that
• You are having difficulty with ..?

19
Performance Appraisal Video

• Identify pros cons of the organizations
  performance appraisal system
• Consider the performance appraisal meeting
• Was this an effective meeting?
• Why, why not?
• What could have improved the meeting?
• What should the boss and the subordinate do now?
• What recommendations can you make to improve the
  performance appraisal experience at the company?