MGMT20004

Managing
People atWork
Topic 4 – Managing
Performance
(Performance
Management)
 • Managing performance (i.e. performance
management) and performance appraisal
• Performance appraisal
• Setting objectives (goal setting) Part 1
• Ways of measuring
• Approaching the performance appraisal
Agenda interview
• Giving feedback
Part 2

• Ways to improve performance appraisal in

organisations
Performance and Development
Performance management
Aims to improve organisational, functional, unit
and individual performance by linking the
objectives of each.
Performance appraisal
Concerned with determining how well
employees are doing their job, communicating
that information to employees, agreeing on new
objectives and establishing a plan for
performance improvement.

Performance management
and performance appraisal
A performance management process
The link between
performance
management and
an organisation’s
objectives
• Appraisal = most contentious
and least popular of HRM
activities. Managers do not
seem to like doing it, and
employees see no point in it
(Heathfield, 2007).

• Issues of control,
subjectivity/bias, ‘procedural
justice’, criticism

• Dual purposes: appraisal and

development (tension)
1. SETTING PERFORMANCE 2. MEASURING THE 3. PROVIDING
OBJECTIVES. PERFORMANCE. PERFORMANCE FEEDBACK.

Performance appraisal process – Three Steps

Goal setting
 SETTING SPECIFIC GOALS IS GOALS THAT ARE PERCEIVED TO EMPLOYEE PARTICIPATION IN FREQUENT PERFORMANCE
MORE LIKELY TO LEAD TO BE DIFFICULT TO ACHIEVE GOAL SETTING TENDS TO LEAD FEEDBACK RESULTS IN HIGHER
HIGHER PERFORMANCE. RESULT IN BETTER TO HIGHER GOALS BEING SET PERFORMANCE.
PERFORMANCE. THAN WHEN THE MANAGER
UNILATERALLY SETS THE GOALS.

Setting performance objectives: Goal setting

 Specific

Measurable

SMART Goals Achievable

Relevant

Time-bound
 • Decrease cost of inventory management over next six months

• Specific
Is this a • Measurable
SMART goal? • Achievable
• Relevant
• Time-bound
 • Management by objectives (goal setting).
• Ranking.
Ways of
• Grading.
measuring
• Critical incidents.
performance
• Behaviourally anchored rating scales.
• Behaviour observation scales.
 · Behaviour-anchored rating scales (BARSs)
provide descriptions of important job
behaviour ‘anchored’ alongside a rating scale.
Behavioural
rating scales · Behavioural observation scales (BOSs) involve
the people doing the rating assessing the
frequency of specific job-related behaviours
that are observable.
Behavioural
Observation
Scale -
example
 Raters of employee performance
• Supervisors
• Peers
• Self
Measuring • Subordinates
performance • Multisource or 360 degree
– Involve colleagues, supervisors, customers
and subordinates

• Team appraisals.
 – Halo effect
– Central tendency
– Leniency/strictness bias
Some common
rater errors – Prejudice
– Recency effect
– Relationship effect
 • The appraisal interview as a “conversation about
performance” (Gordon and Stewart, 2009, p. 473)
• Efficiency and effectiveness
Performance • Effectiveness:
appraisal • Does it impart “meaningful information that
promotes mutual understanding”? (Gordon
interview and Stewart 2009, p. 476)
• How satisfied are the participants (especially
ratees/employees) with the process?
 Three factors are important:
– The manager’s knowledge of the
Performance employee’s job and performance
feedback – The manager’s support of the employee
– The manager’s involvement of the
employee in the discussion.
 Makes notes of specific
Prepare for the discussion. examples of positive
behaviour/outcomes

Conduct of the
performance Keep the objective in mind The employee should be

review (performance improvement) encouraged to talk.

discussion
The employee should only
Specific performance
be evaluated on those things
improvement objectives
they can change or are
should be set.
within their control.
 • A document that is used to record the ratings and comments for
an employee.
• Valuable tool for:
The – goal setting
performance – defining performance levels

appraisal – facilitating job performance review discussion

– identifying training and development needs
record – identifying low- and high-potential employees
– rewarding performance.
‘Micro-skills’ (interpersonal skills and
emotional intelligence)

How to
Communication training for both improve
managers and employees appraisal
interviews
Build receptivity to feedback – (Jackman
and Strober 2003)
Examples –
communication
training
 • Focus on the behaviour, not the person

• Avoid ‘judging’ language – describe situations or

behaviour rather than evaluate

Giving
• Invite and actively listen to the other person’s views
feedback
• Focus on your higher objective or goal – what do you
want to happen as a result of giving this feedback? Is
your approach likely to achieve this outcome?
 • ‘I’ statements/messages are a way of sharing emotions
and letting others know how their behaviour is
perceived and how it affects you
‘I’ messages -
Owning our
• Use the following two-part feedback formula:
reactions 1. describe the other person’s behaviour
(assertive 2. describe your reaction to it

communication)
• ‘I’ statements/messages can have two, three or four
parts
‘I’ messages
 • One of your colleagues frequently makes remarks about how
carefully and slowly you think before making a contribution at
staff meetings. Even though these comments appear to be a
joke, you feel that others hearing them are starting to label
I’ messages - you as ‘slow’.You’ve had enough of the comments.
application • A. Write a two-part ‘I’ message using the two-part formula
to state your feelings and describe the behaviour.
• B. Change your two-part ‘I’ message into a three-part ‘I’
message using the three-part formula.
 • 2-part
• I understand you think it’s funny, but when you make
jokes about the time to reflect before speaking in a
staff meeting, it makes me feel like I am not accepted
? and don’t belong in the group.
• 3-part
• I am less inclined to contribute at all in the meetings
because of it.
 • It is 3pm. You feel tense because you have two telephone calls to
make and a major piece of work to finish in the next two hours. A
colleague asks you to help him immediately with the agenda for next
‘I’ messages - week’s committee meeting. It has to be sent by email this afternoon.

application
• Write a four-part assertive message in which you state that you
are unable to help with the agenda. Follow the four-part ‘I’
message formula.
 • When you ask me for help to meet one of your
deadlines urgently, I feel like you do not
recognize I have my own workload and
deadlines to meet. I end up helping you finish
by the deadline but then I have to complete my
? own work after hours. Today I have an urgent
deadline as well, so I am not able to help you. I
would be willing to help out from time-to-time
but I need some notice, not the afternoon it is
due.
Timing of feedback – close in proximity to
the event

Applying these
Don’t wait until the performance skills to
appraisal to give feedback performance
feedback

How to start?
Flag what you are about to comment on

Feedback -
Provide an example of what you are Flag-Example-
actually commenting on Benefit
structure
Outline the benefit of what you want to
see happen – this enables you to be
specific and constructive
 Flag I liked your last monthly report
Assertive, positive,
constructive Example I thought the way you ordered the
feedback: Example information and used graphs was
professional
Benefit You highlighted progress to date and
detailed next month’s activities in a
way that made the contents easy to
understand
 Flag I thought you began the negotiation well by
separating the people from the problem
Assertive, Example I think you could have engaged more
negative, positively by focusing on the interests and
constructive finding common ground, rather than taking a
feedback: position. Once a position is taken, it is difficult
Example to generate different possibilities.
Benefit Focusing on interests would have let you and
the others in the negotiation work together to
generate a range of options. It is then possible
to choose together the option that best meets
the interests of the negotiators.
 Balanced Build self esteem by being both positive and
constructive

Actionable Give examples and provide feedback about

something the other person is responsible for
B.A.T.M.I.C.E.
Timely Provide feedback at an appropriate time/context
Approach
Meaningful Keep to the point, describe actions, required
standards & specific information about performance

‘I’ language Say ‘I’ rather than ‘you’ to minimise defensiveness,

resistance and arguments

Constructive Aim to be helpful, not hurtful, by using objective

neutral words when giving positive or negative
feedback
Empathic Keep your comments to the facts and be aware of the
other person’s point of view.
Personal competence – managing Social competence – managing
ourselves relationships (‘social intelligence’)
Self-awareness Social awareness
Self-regulation Social skills
Self-motivation

Emotional intelligence competencies

 Implementing a PA system
(Gordon and Stewart 2009)
Influence the context of Performance Appraisal
Framing (organisation-wide communication
about PA)
Agenda setting (pre-interview ‘homework’ and
planning)
Develop a common language to facilitate
shared understanding (involve line managers)
 • Think about the structure of the appraisal
interview
• Limit the number of topics covered
Suggestions • Keep in mind the overall purpose of
performance appraisal
• Greater potential – to create a ‘feedback
culture’, continuous learning (Jackman and
Strober 2003)
 Serves multiple purposes

Widespread dissatisfaction

Tendency to switch from one system to another (see Gordon and

Performance Stewart 2009)

Appraisal Need to consider context of Performance Appraisal

Managers are often uncomfortable giving feedback to staff; avoid

direct confrontations

People avoid feedback (Jackman and Strober 2003)