Performance Appraisal

[Business Communication]
[Company Name]
 Question 3
Performance appraisal can have many positive effects if the
employee views the appraisal as valuable and valid.

Scenario: A group of registered nurses (RN), with five to ten

years of work experience in your department had verbalised that
the appraisal they received from another Nurse Manager was
unfair. You are tasked to re-appraise these RNs. Describe the
strategies that you would undertake to ensure a fair assessment
process.
 Objectives
• Discuss the types of Performance Appraisal
• Highlight the benefits of Performance Appraisal
• Elaborate on disadvantage of Performance Appraisal
• Underline the Performance Appraisal system in hospital
• Compare the Performance Appraisal forms of four hospitals
• Explore strategies taken to deal with the situation in the
scenario
 Types of appraisal
Management By Objectives (MBO)
• A method in which managers or employers set a list of objectives and
make assessments on their performance on a regular basis, and finally
make rewards based on the results achieved (Nandy, 2011)
• This method mostly cares about the results achieved (goals) but not to the
way how employees can fulfill them.

360 Degree Performance Appraisal

• A method that employees will give confidential and anonymous
assessments on their colleagues.
 Types of appraisal
Performance Ranking Method
• Used to assess the working performance of employees from the highest to lowest
levels
• Managers will make comparisons of an employee with the others, instead of
making comparison of each employee with some certain standards (Dhami, 2010)

Peer Review Appraisal

• A way to more effectively gauge the performance of employees by establishing
relevant evaluation criteria, using those best equipped to speak about individual’s
work to grade him / her accordingly
• Peer review can take the form of disciplinary panels or ongoing feedback between
co-workers (Lovering, 2006)
• This method helps to enhance employee trust and communication
 Benefits of Performance Appraisal
Organization
• Recognize and manage staff performance
• Planning and decision making
• Improve staff retention

Appraiser
• Framework for sharing feedback
• Promote career planning for staff (Chandra & Frank, 2004)
• Feedback on own management style and leadership skills (Parkin &
McKimm, 2009)
 Benefits of Performance Appraisal
Appraisee
• Reflection on areas of weakness and strengths (Finlay &
Mclaren, 2009)
• Opportunity to raise issues / obstacles
• Focus on developing individual performance
• Better understanding of goals and requirements
• Identify action plan for future development
• Indication for Salary increment / incentives (Parkin & McKimm,
2009)
 Disadvantages of Performance Appraisal
• If not done right, they can create a NEGATIVE EXPERIENCE.
• Performance appraisals are very time consuming and can be
overwhelming to managers with many employees.
• They are based on human assessment and are subject to rater
errors and biases.
• They can create a very stressful environment for everyone
involved.
Performance Appraisal system in hospital
• Performance Appraisal are usually done annually (interim is done 6
months after appraisal is given)
• Open appraisal system as a measure of employee’s performance
(individual competency and development)
• An employee who is served with a Written Warning during the
appraisal period shall immediately receive a performance rating of
“4”. He / She will be subject to a second performance review in 6
months.
• Both the appraisee and the appraiser will sign the Performance
Appraisal Form and the employee can request a copy of the
completed appraisal form (SGH Performance Appraisal, 2011).
 Total Performance Management Form

• Five parts to the form (Key Results Areas, Competencies, Overall Assessment,
Career Development and Performance Review)
• Five overall ratings (Exceptional, Exceed expectations, Meets expectations,
Needs Improvement and Unsatisfactory)

• Four parts to the form (Key Results Areas / Performance Targets, Competencies,
Overall Assessment and Career Development )
• Five overall ratings (Exceed job requirements - Outstanding and deserves special
commendations, Fully meets job requirements - Has made major contributions,
Fully meets job requirements - Has performed well, Meets job requirements in
key area - But performance in some areas needs improvement and Does not
meet job requirements - Significant Improvement required for continued
employment in current position)
 Performance Appraisal Form
• Four parts to the form (Employee’s Feedback, Job Performance Factors,
Hospital Core Values and Overall Rating)
• Four overall ratings (Performance and behaviour consistently far exceed job
requirements, Performance and behaviour fully meet and often exceed job
requirements, Performance and behaviour fully meet job requirements and
Performance and behaviour are below basic job requirements. Significant
improvement is needed)

• Four parts to the form (Key Responsibility Areas, Work Challenges, Career
Development and Agreed Performance Standards)
• Five overall ratings (A* - Outstanding, A - Very Good, B - Good, C - Fair and D –
Poor)
• Performance rating is determined by weightage of Key Responsibility Areas
 Key Responsibility
Competencies Competencies Performances
Areas
Core Values Core Competencies Job Performance Factors • Financial (5%)
•Teamwork •Put Customer First •Job knowledge • Customer (25%)
•Respect •Get Things Done •Planning and • Internal Process
•Integrity •Be a Team Member Implementation (60%)
•Compassion •Develop Self and Others •Job Quality • Learning and
•Excellence •Apply Knowledge •Effective Communicator Improving (10%)
•Building a Hassle Free •Change Agent
Hospital •Decisiveness
•Concern for Staff

Leadership Leadership Hospital Core Values

•Embrace Change •Embrace Change •Compassion
•Influence and Lead •Influence and Lead •Integrity and Openness
•Think Strategically •Think Strategically •Respect
•Develop Others •Commitment
•Collegiality
•Professionalism
 Process of Employee Appeal
Singapore General Hospital Policy
• Every employee has a RIGHT TO APPEAL against management’s decision
affecting them
• The Hospital shall resolve all employees grievances fairly as soon as they
surface so as not to allow them to grow in magnitude.
• Where the grievance cannot be resolved at the immediate Supervisor's level,
the employee may bring it to the next supervisory level.
• Management must ensure that the employee’s grievance is responded in a
timely manner (usually within 7 working days)
 Process of Employee Appeal
Singapore General Hospital Policy
• The employee has the right to appeal until his grievance is resolved or
reaches the level of the CEO whose decision shall be final.
• There will be no reprisal against any party concerned. The employee in
particular will not suffer victimization from anyone as a result of seeking
resolution of a grievance through this procedure.
• The employee may request to be accompanied by a fellow employee as
spokesman at any time. Where additional time is required in making a
determination, the employee will be informed of the expected period of
extension and the reasons (SGH Employee Appeal Procedure, 2011)
Assign to re-appraise
Change Status
in rating Quo

Performance
Appraisal

Higher Management
 Approach in re-appraisal
Know your organization appraisal tools well
Analyze the objective and subjective data. To substantiate rating, get ready
the subordinate’s reference records such as incident reports, anecdotal
entries, etc. (Dessler, 2003).

Objective Data Subjective Data

Management by objectives (MBO)
Key Results Area (KRA)
Anecdotal entries
Peer review - more accurate appraisal
(Nankervis, Compton & Baird, 2002)
(Raymond, 2009)
Interview staff & previous appraiser in order to
find out the reason for their grievances
1) Personality clash with previous appraiser
2) Possible error in rating
3) Provide listening ear
 Review Employee’s Performance
Is there a problem?
Give feedback
Yes
No as appropriate

Root causes

Skill Related Motivation related

•Provide education •Clarify expectation
•Coach •Determine obstacle and remove them
•Simplify task •Remove punishment
•Reassign •Determine subordinate value regarding
rewards

(Sullivan & Decker, 2005)

 Approach to Re-appraisal
Many employees view performance appraisals as negative events.
Thus, supervisors should be aware of common errors that can result in
inaccurate appraisals (Bacal, 2012).
•Halo Effect: the tendency to rate someone high or low in all categories
because he/she is high or low in one or two areas
•Recency Effect: the tendency to assess people based on most recent
behaviour and ignoring behaviour that is “older”
•Different standards of evaluation. When using categories such as fair,
good, excellent, etc, the meanings of these words will differ from
person to person
 Approach to Re-appraisal
• Opportunity bias: assigning credit or blame to the employee when the
true cause of the performance was opportunity
• Leniency effect: tendency to rate higher than is warranted, usually
accompanied by some rationalization as to why this is appropriate
• Central tendency effect: tendency / habit of assessing almost
everyone as average. A person applying this bias will tend not to rate
anyone very high or very low
• Spill over effect: tendency to evaluate much on the basis of past
performance
 Approach to Re-appraisal
• Exhibits effective communication skills with the ability to listen
(Vasset, 2010)
• Direct subordinate to focus on organizational objectives in PPA
discussion (Dessler, 2003)
• Understand the subordinate‘s root causes for under performance
(Ellis, 2008)
• Supervisor should not put personal spins on the PPA but must
project to staff how she could improve herself. (Ellis, 2008)
• Supervisor should not view subordinate with under performance as
punitive (Vasset, 2010)
 Change in Rating
• Higher management (SNM / ADN) to approve for re-appraisal
by another appraiser
• Collate and present facts to higher management who will act
as a mediator
• Final decision lies with higher management
• Regardless of outcome, previous appraiser to conduct the re-
appraisal session
– Save face (previous appraiser)
– Maintain trust (appraisee)
 Status Quo
• Focus on their actions, not on the person
• Be specific and timely
• Be calm
• Reaffirm your faith in the person
• Define positive steps
• Get over it
 Status Quo
How to handle defensive employee
• Recognize denial is the first reaction of a subordinate with poor
performance
• Others react with anger and aggression
• Never attack a person’s defenses
― Concentrate on the act itself rather than on the person (Dessler, 2003)
― Direct subordinate to focus on organizational performance standards
(Ellis, 2008)
• Maintain subordinate dignity (Rayner & Smith, 2009)
― Interview session to be done in private
― Provide constructive feedback
 Status Quo
How to handle defensive employee
• Postponed interview when subordinate is not ready
― Allow subordinate to let off the steam when confronting (Dessler,
2003)
― Allow subordinate to reflect on what has transpired (Sullivan &
Decker, 2005)
• Recognize your own limitation
― Seek help and do not expect to solve every problem by yourself
(Dessler, 2003)
 Conclusion
• There is NO ONE PERFECT appraisal tool
• Compilation record of positive or negative incidents are useful in
justifying PPA rating
• Appropriate communication skills used are REALLY essential
• Constant evaluation and feedback should be given to subordinate to
enhance expectation on performance and progress and to avoid
surprises during PPA.
 References
Bacal, R. (2012). A Performance Management Bias and Error Glossary. Retrieved from
http://performance-appraisals.org/Bacalsappraisalarticles/articles/bias.htm)

Chandran, A., & Frank, D. Z. (2004). Utilization of Performance Appraisal Systems in

Health Care Organizations and Improvement Strategies for Supervisors. The Health
Care Manager, 23(1), 25-30.

Dessler, G. (2003). Human Resource Management (9th ed.). New Jersey: Prentice Hall.

Dhami, R. 2010. Performance appraisal methods. Retrieved from

http://www.humanresources.hrvinet.com/performance-appraisal-methods/

Ellis, J. (2008). Managing Performance. Nursing Management, 1(15), 28-33

Finlay, K., & McLaren, S. (2009). Does appraisal enhance learning, improve practice and
encourage continuing professional development? A survey of general practitioner’s
experiences of appraisal. Quality in Primary Care, (17), 387-395.
 References
Kandang Kerbau Women's and Children's Hospital. (2010). Performance Appraisal
Form (10A1-0001).

Khoo Teck Puat Hospital. (2011). Total Performance Management Form.

Lovering, C. (2006). The advantages of the peer review appraisal method. Retrieved
from http://smallbusiness.chron.com/advantages-peer-review-appraisal-method-
34573.html

Nandy, R. (2011). Why Do We Need Performance Appraisal? Retrieved from

http://www.chillibreeze.com/articles_various/performance-appraisal.asp

National University Hospital. (2010). Total Performance Management Form (R1-03-09).

Parkin, D., & McKimm, J. (2009). Managing the Appraisal. British Journal of Hospital
Medicine, 70 (9), 528-531.

Rayner, C., & Smith, D.A. (2009). Managing and Leading People. London: Chartered
Institute of Personnel & Development.
 References
Reh, F.J. (2012). How To Give Negative Feedback Properly. Retrieved from
http://management.about.com/cs/peoplemanagement/ht/negativefb.htm

Singapore General Hospital. (2011). Employee Appeal Procedure (HR-PP-073).

Singapore General Hospital. (2011). Performance Appraisal Form - Exempt Employee

(91200-FM-010).

Singapore General Hospital. (2011). Performance Feedback (HR-PP-020).

Sullivan, E. J., & Decker, P. J. (2005). Effective leadership and management in nursing
(6th ed.). New Jersey: Prentice Hall.

Vasset, F. (2010). Employee s’ perception of justice in performance appraisals. Nursing

Management, 2(17), 30-34.