The Fred Factor

EQUITY CONTINUING EDUCATION SERIES

PERFORMANCE
MANAGEMENT
 WHY PERFORMANCE APPRAISAL
DEFINITION

 The performance appraisal is part of a larger system known as the performance

management system. This system is the approach to the management of people
using performance, Communication, planned goals and objectives,
measurement, feedback and recognition to motivate people to realise their
maximum potential. Performance appraisal involves the setting of clear
quantifiable goals and objectives and assessing individual performance against
these measures.
AIMS

 Performance appraisals are a way to give feedback to staff regarding their

performance. The appraisal can be used to encourage good work as well as point
out opportunities for improvement. Appraisals can also be used to set measurable
targets and objectives to continually spur performance improvement
INCREASING ROLE CLARITY
 Performance appraisal is a tool for communicating the skills, knowledge and
attitudes required for the different job roles. The appraisal criteria act as a guide
to the attitudes and behaviour that EQUITY ASSURANCE would like their staff in
their various capacities to have.

TRAINING AND DEVELOPMENT

 Performance appraisals measure an individual’s performance and can identify
opportunities for improvement or learning through training.

COMPENSATION AND REWARD

 As EQUITY ASSURANCE bonuses and annual increments are linked to

performance, a system for measuring performance in an equitable way is
necessary. The performance appraisal encourages the use of objective,
quantifiable criteria to measure performance which will be known to all staff. This
system improves fair judgment and the perception of equity among staff.
CAREER PLANNING
 Performance appraisals will allow EQUITY ASSURANCE to assess the skill set of
their existing staff to ascertain the career path for each individual.

ENHANCE CORPORATE VALUES

 EQUITY ASSURANCE corporate value is the pursuit of innovative quality in the

areas laid down in the performance factor compendium. These values are
translated to performance measures that are used in the appraisal. This enhances
awareness of corporate values and promotes behaviour that are in line with
EQUITY ASSURANCE values.
 APPRAISAL REVIEW SYSTEM
 Dealing with major challenges:

 Managerial integrity and boldness

 Sticking to agreed targets
 Agreement on what to measure and how its captured
 Dealing with non cooperation by staff
 Making use of the outcome.
APPRAISAL REVIEW STANDARD PRACTICE
 WHAT IS PERFORMANCE APPRAISAL?

Performance appraisal is a continuous process of supervisors and

employees working together to:
 Set performance expectations linked to organizational objectives;
 Establish criteria against which individual and unit performance can be
measured;
 Identify areas for competency improvement;
 Provide performance feedback;
 Continually enhance performance.
The Performance Appraisal Process is designed to:

 Provide supervisors and employees with a method to identify individual job

performance objectives and discuss their alignment with organization
objectives;
 Provide supervisors and employees with a forum for ongoing communication
and feedback on the attainment of individual objectives and performance in
core competency areas;
 Facilitate the identification of areas for improvement needed by employees to
perform more effectively on the job;
 Provide employees with the opportunity to collaborate with their supervisor to
develop a personal job performance development plan.
 PERFORMANCE MANAGEMENT SYSTEM
PHASE 1
PLANNING
This is about identifying
performance expectations &
setting tasks & targets at all
levels.

PHASE 4 PHASE 2
REWARDING COACHING
PHASE 3 This is a crucial phase of
This phase establishes tracking and improving
the link between REVIEWING performance, through
performance and rewards feedback & reinforcement of
& also managing poor This phase involves
key results & competencies
performance assessing actual
performance against
expectations at the end of
the performance cycle (the
appraisal phase)
PERFORMANCE MANAGEMENT CYCLE

Planning for
Performance

Performance
Management
 BENEFITS OF AN EFFECTIVE APPRAISAL
PROCESS

l Individuals
l Managers
l Organizations
 BENEFITS TO THE INDIVIDUAL
A good system ensures that individuals know…

 How they are performing in their current role

 Their strengths and weaknesses
 What they must do to work more effectively
 What areas require further training and development
 Their personal potential
 Their Potential within the organisation
 They can shape and influence their own career
 BENEFITS TO MANAGERS
 A good system ensures that managers know…
 Their staff very well (strength & weaknesses)
 What you might need to draw out the best in them
 How they need to plan their staff’s future
 Who will assist them in reaching their goals
 BENEFITS TO THE ORGANISATION
A good system ensures that it knows…
 Its people well and they have close working relationships
 Its people priorities to ensure maximum overall business performance
 Its people potential play a big part in the future development of the
organization
 Its people training and development needs for future business success
 Its people to produce results in line with business commitment
PLANNING FOR PERFORMANCE
 PLANNING FOR PERFORMANCE

“Failing to plan is planning to fail”

Planning is the first step in performance management process cycle and it
provides the foundation for an effective process.

Planning helps to encourage commitment and understanding by linking

the employee’s work with the organization’s goals and objectives.
 SETTING SMART GOALS
The objective of this session is to understand how to plan for Performance by
setting SMART Goals and Standards (or Targets)

What is Goal?
Specific, measurable results, or outcomes, to be achieved. Goals answer the
question, “What do we expect the outcome of our actions to be?”
 GOALS

Goals provide a target for performance. They serve to motivate everyone in the
organization toward success. Well defined goals can help you and your
employees to:

 Identify the work to focus on

 Set priorities and make decisions
 Identify resources needed to accomplish the work
 Determine how well employees are succeeding
 Ensure that all employees are contributing to the success of the company
 SOURCES OF GOALS

 Ongoing Work: Productivity and Service goals

 Problems: Increasing accuracy rates, reducing the number of on the job

accidents, eliminating product deficiencies, reducing the number of on-
the-job accidents

 Opportunities: “Stretch Goals” developing better marketing strategies,

designing a more efficient production process
BEFORE YOU FILL OUT APPRAISAL FORMS BE SURE TO DO THE FOLLOWING:
 Pull employee’s file
 Review employee’s current job description requirements
 Review the last appraisal and pertinent materials added to file since last
evaluation
 Gather information by consulting other supervisors & Co. workers of the
employee

INITIAL MEETING MUST FOCUS ON JOB EXPECTATION AND EVALUATION

 Clarify evaluation
 Gain initial agreement
 There is then the opportunity for rate input
INTERIM RATING

 This is a midpoint evaluation focus on first 6 month performance rating. You are
evaluating work program to date.
 Ensure you establish development plans
 Make necessary changes to initial plans
 Give feedback to rate
 Receive feedback
FINAL RATING
 Focus on past 12 months
 Establish development plans
 Trigger personal actions growth
 Allow Ratee to indicates own view
 Ratee appeals final rating if necessary usually if they do not agree
 This Triggers a new evaluation cycle
 An unsatisfactory rating requires periodic review
 Cover deficiencies and establish further improvement plans
 Recommend for termination if necessary
 Ratee receives written record of the meeting
CLOSE OUT RATING
 Change in assignment
 Supervisor
 Ratee’s Job title change
 Final rating before close out rating
 Appeal process
 CONDUCTING THE PERFORMANCE APPRAISAL
Keep good records
Review previous goals
Get input from others
Prepare carefully
Prepare administrative details
BEFORE THE APPRAISAL
Both praise and criticism are most meaningful when supported by factual
examples
Use previous goals to evaluate progress
Seek feedback from others who work with the appraisee in areas they will
have objective knowledge of and get examples where available
Prepare in advance so that you can deliver the message that you intend to
agree on a time - set aside at least one hour. Avoid postponing the
appointment, and give the employee full attention.
select a location - office or conference room is best.
ask employee to prepare - ask the employee to review his/her goals, and
come prepared with questions.
 DURING THE APPRAISAL
Explain the meeting agenda Outline what is about to happen for the session

Encourage communication  listen

 encourage two-way communication
 ask for ideas on how they can improve their performance
 ask for how they feel you can help them
 ask for feedback on the appraisal section
Stay focused Keep the session focused on past and future performance, summarize
discussion issues often to ensure agreement
Communicating The employee expects and should know what he/she needs to improve
shortcomings
Be open Be versatile and open-minded if you hear things that cause you to change your
opinion
Evaluation process  Begin with the positive things that were well done
 Follow this with areas that need improvement and a plan on how to
address them
 Conclude with a reinforcement of your desire to help the person grow
and improve
Making promises Don’t make promises you do not have control over (e.g. salary increments,
promotions, transfers etc)
Review goals Concentrate on a few areas- things that make a difference. Try to encourage
continuation and growth in the areas of strength. Set up “smart” goals that
will build strength in areas needing attention
 AFTER THE APPRAISAL
Administration  Complete the paperwork required for the results of the appraisal
 Make sure the appraisee signs on the bottom line
 Mark the calendar on when your next appraisal session with the
person will be

Follow-up Follow-up on agreements made during the appraisal

Learning Review what you have learnt about the employee, your records and
systems, yourself, the appraisal process and your management style
 COMMON RATING ERRORS
Whilst completing the appraisal form, the appraiser is advised to exercise caution, as
there may be several pitfalls which may skew the assessment:

HALO EFFECT
 A person outstanding in one area tends to receive outstanding or better than
average ratings in other areas as well, even when such a rating is undeserved

NEGATIVE EFFECT
 A low rating in one area yields lower than deserved ratings for other
accomplishments

CENTRAL TENDENCY
 Assigning an average rating for all qualities
CONFRONTATION AVOIDANCE
 Discomfort with giving negative feedback

INITIAL PERFORMANCE
 Rating an employee based solely on initial impressions of performance

RECENCY
 Rating an employee based solely on most recent performance which overshadows
the entire year’s performance
 ELEMENTS OF THE APPRAISAL FORM

The appraisal form covers the following key areas:

 Job expectations – Employee & Supervisors lay out individual goals & Job
responsibilities and links to the goals of the organisation.
 Performance Factors: focuses on 2 factors to measure Job achievement. This
describes what was accomplished in terms of output and production and are
directly related to Job expectations
 Development plan
 State Significant event if any
GROWTH AND DEVELOPMENT

 In this section, describe how the appraisee demonstrates their strengths and areas
for improvement by providing specific examples.

 Specific action plans can also be developed together with the appraisee (for
Executives and Managers) to address these areas. In particular, training
requirements can be identified for the areas that can be enhanced or developed
through training. Training requirements refer to the skill set required by the
employee to either successfully fulfill current job responsibilities or to prepare the
employee for greater responsibility.

ACHIEVEMENT

 This section allows any additional responsibilities outside of the appraisee’s job
scope (e.g. Committee member) to be acknowledged.
GOALS ACHIEVEMENT

 Appraisals for Managers and Supervisors contain a section for goal setting and
goal achievement assessment. Goals are specific and measurable objectives that
the individual wishes to achieve by the end of the following appraisal period.

RECOMMENDATIONS

 The appraiser provides recommendations for the career development for the
employee. These may include: confirmation, extension of probation, promotion,
increments, termination, etc.

REVIEW BY MD

 The MD will provide comments prior to filing with the Administration Department.
 WHY DO PM SYSTEMS FAIL?

 Managers not accountable for performance management. Not trained in

PM
 Lack of job relatedness– salary increase
 Employees not able to relate annual performance appraisal with ongoing
PM
 PM is HR Department responsibility, not managerial responsibility
 Failure of the Executive to link PM to the strategic plan.
QUESTIONS ???