Module 2

Performance Appraisal
System Implementation
Contents

• Defining Performance
• Determinants of Performance
• Performance Dimensions
• Approaches to Measuring Performance
• Diagnosing the Causes of Poor Performance
• Differentiating Task from Contextual Performance
• Choosing a Performance Measurement Approach.
• Measuring Results and Behaviors
• Gathering Performance Information
• Implementing Performance Management System.
Conducting Appraisals:

• Skills Required
• The Role of The Appraiser
• Job Description and Job Specification
• Appraisal Methods
• Raters Errors
• Data Collection
• Conducting an Appraisal Interview
• Follow Up and Validation
Performance

• Behaviour or what employees do

Characteristics of behaviour

• Evaluative

• Multidimensional
Determinants of Performance
Deliberate Practice?
Deliberate Practice Involves:

• Approach performance with the goal of getting better and better.

• Focus on what is happening and why you are doing things the way
you do.
• Seek performance feedback from expert sources, and the more sources
the better.
• Build mental models of your job, your situation, and your
organization.
• Repeat steps 1–4 continually and on an ongoing basis
Implications for addressing Performance Problems

Find the source

Factors Influencing Determinants of Performance
Individual Characteristics
• Declarative Knowledge
• Procedural Knowledge
• Motivation

HR Practices

Work Environment
Performance Dimensions
Contextual
Task Performance
Performance
• Varies across jobs • Similar across jobs
• Likely to be role • Not likely to be role
prescribed prescribed
• Antecedent to Task • Antecedent to
Performance - Contextual
Abilities and Skills Performance -
Personality
 Approaches to Measure Performance
Behaviour Approach Results Approach Trait Approach
• Process oriented • Emphasizes on • Individual Traits of
approach – how an outcomes and results employees.
employee does the job. that employees produce. • Evaluates stable traits –
• Appropriate if • Appropriate if cognitive abilities ,
• Link between behaviours • Workers are skilled in personality.
and results is not the needed behaviour. • Positive relationships
obvious. • Behaviours and results between abilities,
• Outcomes occur in are related. personality traits and
distant future. • Results show consistent work related behaviours.
• Poor results are due to improvement over time. • Appropriate when
causes beyond the • There are many ways to structural changes are
performers control. do the job right. planned.
Diagnosing the causes of Poor Performance

• Difficult tasks.

• Low aptitude, skill, and knowledge of employees.

• Lack of improvement 
Case Study
Differentiating Task from Contextual Performance

Contextual
Task Performance
Performance
• Varies across jobs • Similar across jobs
• Likely to be role • Not likely to be role
prescribed prescribed
• Antecedent to Task • Antecedent to
Performance - Contextual
Abilities and Skills Performance -
Personality
Case Study
Choosing a Performance Measurement Approach
Case Study
Measuring Results and Behaviours
Measuring Results

• What are the different areas in which this individual is expected to focus
efforts (key accountabilities)?

• Within each area, what are the expected objectives?

• How do we know how well the results have been achieved (performance
standards)?
 Determining Accountabilities
• Information on Job
• Job Description -> Job Analysis
• Identification of key accountabilities

Focus on
• What percentage of the employee’s time is spent performing each
accountability?
• If the accountability were performed inadequately, would there be a
significant impact on the work unit’s mission?
• Is there a significant consequence of error? Could inadequate
performance of the accountability contribute to the injury or death of the
employee or others, serious property damage, or loss of time and money?
Example of Job Description
Key Accountabilities for Training Specialist/Consultant—
Leadership & Team Development
• Process Leadership

• Supervision of non-exempt staff

• Coaching

• Team-building consultation

• Assessment instrument feedback

• Product improvement
 Determining Objectives
• Measurable Outcome
• Success for accountability
• Impact on overall success of the organization

Characteristics of Objectives
• Specific and Clear
• Challenging
• Agreed Upon
• Significant
• Prioritized
• Bound by time
• Achievable
• Fully communicated
• Flexible
• Limited in number
Determining the Performance Standards
Yardsticks
• Extent of objectives being achieved

• Providers information to the raters

Aspects of Standards
• Quality
• Quantity
• Time
Minimum and Maximum Expectation
Characteristics of Performance Standards
• Related to the position

• Concrete, Specific, and measurable

• Practical to measure

• Meaningful

• Realistic and achievable

• Reviewed regularly
Measuring Behaviours
• Assessment of Competencies
• KSA’s

Types of Competencies

• Differentiating Competencies

• Threshold Competencies

Indicators are measured to understand the extent to which an employee

possesses competency
Five indicators whose presence would indicate the existence of the
consideration competency are the following:
• Supports subordinates’ projects
• Asks about the well-being of employees’ lives outside of work
• Encourages subordinates to reach their established goals
• Gets to know employees personally
• Shows respect for employees’ work and home lives
Components of Competency
1. Definition of competency
2. Description of specific behavioral indicators that can be observed when
someone demonstrates a competency effectively
3. Description of specific behaviors that are likely to occur when someone
doesn’t demonstrate a competency effectively (what a competency is not)
4. List of suggestions for developing the competency in question
 Types of systems to evaluate Competencies
• Comparative Systems
• Absolute Systems

Comparative Systems Absolute Systems

• Simple Rank Order • Essays

• Alternation Rank Order • Behaviour Checklist
• Paired Comparisons • Critical Incidents
• Relative Percentile • Graphic Rating Scales
• Forced Distribution

Advantages and Disadvantages

Gathering Performance Information
Appraisal Forms
Components of Appraisal Forms

• Basic employee information

• Accountabilities, objectives, and standards
• Competencies and indicators
• Major achievements and contributions
• Developmental achievements (could be included in a separate form)
• Developmental needs, plans, and goals (could be included in a separate form)
• Stakeholder input
• Employee comments
• Signatures
Employee Evaluation Form.doc
Characteristics of Appraisal Forms

• Simplicity
• Relevancy
• Descriptiveness
• Adaptability
• Comprehensiveness
• Definitional clarity
• Communication
• Time orientation
Determining Overall Rating
Strategies used for overall Performance Rating
• Judgemental
• Mechanical
Appraisal Period and the Number of Meetings

Performance management systems can include six formal meetings

between the subordinate and the supervisor:

• System inauguration
• Self-appraisal
• Classical performance review
• Merit/salary review
• Development plan
• Objective setting
Who should provide Performance Information?

• Supervisors
• Peers
• Subordinates
• Self
• Customers

Disagreement across sources: Problem?

 Model of Rater Motivation

Expected Positive and

Negative Consequences of
Rating Accuracy Motivation to provide
accurate ratings

Possibility of Experiencing
Positive and Negative
Consequences
Rating Behaviour

Expected Positive and

Negative Consequences of
Rating Distortion
Motivation to Distort
Ratings
Possibility of Experiencing
Positive and Negative
Consequences
Preventing Rating Distortion through Rater Training
Programs

• Reasons for implementing the performance management system

• How to identify and rank job activities
• How to observe, record, and measure performance.
• Information on the appraisal form and system mechanics
• How to minimize rating errors
• How to conduct an appraisal interview
• How to train, counsel and coach
Implementing a Performance Management System
Preparation
Preparation: Communication, Appeal Process, Training Programs and Pilot
Testing

Communication Plan
• What is Performance Management?
• How does performance management fit into our strategy?
• What’s in it for me?
• How does it work?
• What are my Responsibilities?
• How is performance management related to other initiatives?
Considerations to Minimize the Effects of Communication
Barriers

• Involve employees
• Understand employee needs
• Strike first
• Provide facts and consequences
• Put it in writing
• Use multiple channels of communication
• Use credible communicators
• Say it, and then say it again
Appeal Process
Gaining employee acceptance

Employees ability to question two types of issues:

• Judgemental
• Administrative

Mediation from HR Department – Level 1

Mediation from an external Arbitrator (final binding resolution) – Level
2
Training Programs for the Acquisition of required Skills

Content Areas That Can Be Included in Rater Training Programs

• Reasons for implementing the performance management system

• Information on the appraisal form and system mechanics
• How to identify and rank job activities
• How to observe, record, and measure performance
• How to minimize rating errors
• How to conduct an appraisal interview
• How to train, counsel, and coach
Rater Error Training
Errors Likely to Be Made in Providing Performance Ratings

Unintentional Intentional
• Similar to me • Leniency
• Contrast • Severity
• Halo • Central Tendency
• Primacy
• Recency
• Negativity
• First Impression
• Spill over
• Stereotype
• Attribution
Frame of Reference Training (FOR)

• Improves rater accuracy

• Job Description

• Performance Dimensions

• Use of Appraisal Forms

• Justification for Ratings

Behavioural Observation Training

Focuses on how raters observe, store, recall, and use information about
performance.

• Observations and records

• Recording of Critical Incidents throughout the review period

 Self-Leadership Training
Improves a rater’s confidence in her ability to manage performance.
• SL training techniques include positive self-talk, mental imagery, and positive beliefs
and thought patterns.
Involves
• Observe and record existing beliefs and assumptions, self-talk, and mental imagery
patterns.
• Analyze the functionality and constructiveness of the beliefs, self-talk, and imagery
patterns.
• Identify or develop more functional and constructive beliefs and assumptions, self-
verbalizations, and mental images to substitute for dysfunctional ones.
• Substitute the more functional thinking for the dysfunctional thoughts experienced in
actual situations.
• Continue monitoring and maintaining beliefs, self-verbalizations, and mental images
over time.
Self-Efficacy Training for Raters
• Raters watch a videotape of a vicarious success experience including a
manager conducting a successful performance review meeting with a
subordinate.
• Raters engage in a follow-up discussion of the specific behaviors
observed in the videotape that contributed to the meeting’s success.
• This follow-up discussion has the dual goals of
(1) focusing the raters’ attention on the techniques used by the videotaped
manager to convey negative feedback and
(2) allowing for an opportunity to persuade raters that they too would be
able to conduct such a successful meeting.
• Raters participate in a role-play exercise that requires providing
feedback to an employee. This role-play exercise is repeated until
raters demonstrate an appropriate level of mastery
Pilot Testing

Allows for identification and early correction of flaws before the actual
implementation

• Selection of a group of employees and managers for pilot testing

• Considering the jobs which are similar across the organization

• Identification of potential problems

Ongoing Monitoring and Evaluation
Measures to monitor and evaluate the system

• Number of individuals evaluated.

• Distribution of performance ratings.
• Quality of information.
• Quality of follow-up actions.
• Quality of performance discussion meeting.
• System satisfaction
• Overall cost benefit ratio (return on investment).
• Unit- level and Organizational –level performance.
Online Implementation

• E-mails
• Electronic newsletters
• Websites for performance management system

Y Online?

• Can be linked to HR Functions

• Easy to monitor unit-level and organizational – level trends
• Automation
Conducting Appraisals:

• Skills Required
• The Role of The Appraiser
• Job Description and Job Specification
• Appraisal Methods
• Raters Errors
• Data Collection
• Conducting an Appraisal Interview
• Follow Up and Validation
Role of Appraiser
HR-Manager-Job-Description.pdf
Text Books Referred

Performance Management by Herman Aquinis

Thank You