Appraising and Improving Performance

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Appraising and Improving Performance

• Anil Verma

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Objectives

• Why do we measure performance?
• Effective performance appraisal systems
• How do we measure performance?
• Giving appropriate feedback

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What is Job Performance?

• Task performance Behaviours that contribute to
  the production of goods or provision of services
• Citizenship performance Behaviours that
  contribute to the organizations goals by
  positively influencing its social and
  psychological environment
• Counterproductive performance Voluntary
  behaviours that harm the well-being of the
  organization

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Factors That Influence Performance
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Why is Performance Measured?

• Developmental reasons
• How might a performance appraisal contribute to
  an individuals development?
• Administrative reasons
• How might a performance appraisal serve
  administrative functions?

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Why is Performance Measured?

• Performance appraisal The evaluation of a
  persons performance
• Provides feedback to employees
• Identifies employees developmental needs
• Decides promotions and rewards
• Decides demotions and terminations
• Develops information for selection and placement
  decisions

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Actual and Measured Performance
True Assessment
Actual Performance
Measured Performance
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Reasons Appraisal Programs Fail

• Lack of top-management information and support
• Unclear performance standards
• Rater bias
• Too many forms to complete
• Use of the appraisal program for conflicting
  purposes

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Effective Performance Appraisals

• Appraisal system should have clear anchors and
  standards of performance
• Comply with the law
• Decide who should appraise
• Train appraisers
• Monitor performance daily
• Keep diary and document interactions
• Understand the behaviours important to job
  performance

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Establishing Performance Standards
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Legal Guidelines for Appraisals

• Job related
• Written copy
• Observable behaviour
• Train the supervisors
• Corrective options
• Appeals procedure

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Sources of Performance Appraisal

• Manager and/or Supervisor Appraisal
• Self-Appraisal
• Subordinate Appraisal
• Peer Appraisal
• Team Appraisal
• Customer Appraisal

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360-Degree Feedback

• 360-degree feedback definition
• Integrity safeguards
• Assure anonymity
• Make respondents accountable
• Prevent gaming of the system
• Use statistical procedures
• Identify and quantify biases

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Training Raters

• Establish an appraisal plan
• Eliminate rater error
• Halo error
• Error of central tendency
• Leniency/strictness error
• Recency error
• Contrast error
• Similar-to-me error
• Feedback training

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How is Performance Measured?

• Trait methods
• Behavioural methods
• Results methods

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Trait Methods

• Graphic Rating-Scale Method
• Mixed-Standard Scale Method
• Forced-Choice Method
• Essay Method

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Behavioural Methods

• Critical Incident
• Behavioural Checklist Method
• Behaviourally Anchored Rating Scale (BARS)
• Behaviour Observation Scale (BOS)

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Results Methods

• Productivity Measures
• Management By Objectives (MBO)
• Balanced Scorecard

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Summary of Appraisal Methods
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Appraisal Interviews

• Tell and sell (persuasion)
• Tell and listen (nondirective)
• Problem solving (problem resolution and employee
  development)

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Conducting the Appraisal Interview

• Ask for a self-assessment
• Invite participation
• Express appreciation and start positively
• Minimize criticism
• Change the behaviour, not the person
• Refer to observable behaviours
• Focus on solving problems
• Be supportive
• Establish goals
• Follow up