Topic 7

Managing Employee
Performance
and
Appraisal

PLEASE SIT IN YOUR TEAMS.

THERELL BE A 5% TEAM
ACTIVITY TODAY

Performance
management?
A system to ensure employees work in a
manner aligned with organisational goals &
maximizes employees potential in a job.
Appraisal interview a formal discussion
held between a manager and his
subordinates to discuss the performance of
the employee in a specified period.

What do you think are the benefits

of a performance appraisal?
1.

2.

3.
4.
5.

Encourage quality performance by

rewarding those who do well.
Improve current performance by giving
feedback to workers.
Identify training needs
Initiate fair disclipinary proceedings
Provide a channel of communication
between managers and their subordinates.

Components of an employees
performance management system
Employees
Performanc
e

Knowledge
& skills

Motivation

Work
Environmen
t

Basic Performance Appraisal Process

Conduct a Job Analysis (e.g., specify
tasks and KSAs)

Develop Performance Standards

(e.g., define what is superior,
acceptable, and poor job
performance)

Develop or Choose a Performance

Appraisal Approach

Setting Appraisal
Objectives
1.
2.
3.
4.

5.

Accountabilities / main tasks / main duties

Key result areas (KRAs)
Targets
Goals / objectives / work norms /
performance standards
Competencies

Who is involved in the appraisal

process?
The employees
manager

Customers/clients
/ other parties

The
Employe
e

The employees
subordinates

The employees
company-workers

The Appraisal Interview

Goals

will be negotiated with the

subordinate
Help will be given with actions
plans
Counseling will be given

The Appraisal Interview

Opening:
Remind employee of purpose of discussion
Welcome input from employee

Begin discussion:
Discuss employees self-evaluation
Reach agreement on achievements in time period
under discussion
Set objectives for next time period
Discuss action plan to overcome weaknesses, if
any.

Counselling

When an employee is problematic what

can be done?

Disclipinary interviews
Retrenchment exercises
Career development interviews
Pre-retirement programs

Technology and Client/Customer

Feedback

Other examples: Amazon, eBay, Trip Advisor,

iTunes

Technology and Client/Customer

Feedback (cont.)

Other Examples of Internet-Based Performance

Information
Amazon

Other Examples of Internet-Based Performance

Information

Expedia

That's the second time I stay in this hotel. The location is fantastic and the
rooms, in general are very comfortable. The view from the top, at the breakfast
place is superb. Rating: 4.0
The standard rooms are very, very small, I had only one bag and no place to put
it. you could barely turnaround in the bathrooms. I love the decor/ art deco style
but a little updating is definitely do. Rating: 2.0

3. Problem Solving/Troubleshooting
Definition: Uses a logical, step-by step approach to identify and solve process problems

1
4

2
5

Well Below Expectations

Below
Consistently Exceeds
Outstanding
Expectations
Expectations
Fails to understand how
equipment and processes
interrelate
Does not complete
checklists or other required
forms
Is not able to identify root
causes of process deviations
Does not consistently meet
A2E expectations
Depends on others to solve
problems

3
Meets Expectations

Uses available resources

(e.g., drawings,
checklists, forms, people
engineers, data
historian) to determine
the root cause of
problems
Selects and interprets
data to solve problems
Investigates the nature of
equipment and process
malfunctions on an
ongoing basis
Participates in A2E efforts

Develops novel, safe and

effective solutions to
current problems
Anticipates problems
before they occur and
suggests solutions
Takes ownership in
problem solving and sees
it through to completion
Effectively leads problem
solving efforts (e.g., A2E,
handles complicated
analysis requests on ones
own)

Behavioral Examples of
Rating:_____________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________

4. Teamwork
Definition: Strives to build and maintain a good working relationship with ones work group; shares
information with team members; accepts ideas and opinions of others

1
4

Well Below Expectations

Exceeds
Outstanding

Below

Meets Expectations

Consistently

Expectations
Expectations
Does not respond to work
requests from other team
members
Fails to share information
and/or resources with
others
Refuses to help co-workers
Conflicts with coworkers on
'yours not mine' work
situations, or is known to
say "that's not my job
Frequently complains or
makes negative or
derogatory remarks about
site initiatives, leadership,
and/or fellow workers
Is slow to respond to work
requests from other team
members or management

Behavioral Examples of

Considers alternative
solutions provided by
team members
Accepts and provides
feedback to others
Shares information (e.g.,
trends, status updates)
and/or resources with
others when asked
Readily offers to help
other team members on
tasks
Works with support
services and other areas
(e.g., maintenance) to
resolve shift problems in a
timely manner

Anticipates other team

members needs (e.g.,
training, tools, equipment,
information)
Resolves conflicts between
team members
Supports company
objectives and volunteers
for work duties within and
outside of ones work area
Sacrifices ones own needs
for the need of the team
Initiates team building
activities (e.g., organizing
outside group activities,
breakfasts)

Bias can happen in this process

Examples of biasness in appraisal systems;

Recency effect
Managers take into consideration only the most
recent performance, ignoring previous assignments.

Halo effect
Most people are more likely to appraise (rate highly)
someone they like.

Leniency / strictness tendency

The manager gives high ratings to all subordinates
Or low to all.
If average to all = central tendency