The Performance Appraisal Questions and Answers Book

A Survival Guide for Managers by DICK GROTE AMACOM

Performance Appraisal and Management
‡ Books Recommended . ‡ 1.The Performance Question and Answer Book- A
Survival Guide for Managers . By Dick Grote, AMACOM, American Management Association.

‡ 2. The Complete Guide to Performance Appraisal ±
Dick Grote, American Management Association.

‡ 3. A Handbook of Human Resource Management
Practice- Michael Armstrong, 10th edition.

The Performance Question and Answer BookA Survival Guide for Managers . By Dick Grote,
‡ Importance of Performance Appraisal. 1.What is Performance Appraisal 2.Where did Performance Appraisal Come From ? 3.What is the Purpose ‡ Performance Planning ‡ Performance Execution ‡ Performance Assessment ‡ Performance Review ‡ The Performance Appraisal Form ‡ The Performance Appraisal Process ‡ Building Performance Excellence ‡ Final Question ? Is Performance Appraisal really all that

The Complete Guide to Performance Appraisal ± Dick Grote, American Management Association.

‡ Part 1. This Business of Performance. 1. Performance Appraisal , The State of Art 2.The Performance Management System 3.Approaches to Appraisal 4.Objectives, Accountabilities and Standards 5.Skills , Behaviors and Competencies ‡ Part 2 . Making the Performance Appraisal System Work
6. How to write a fair Performance Appraisal 7. How to conduct an Appraisal Discussion 8. Optimizing Your Existing Performance Appraisal System .

The Complete Guide to Performance Appraisal ± Dick Grote, American Management Association.

‡ Part 3.. This Business of Performance.
9. Building Management Support 10. Designing the Performance Appraisal System 11. Implementing a Performance Appraisal System 12. Creating a Performance Appraisal Training Program Part 4 . Critical Issues in Performance Appraisal System Work 13. Employee Development 14. Pay and Performance Appraisal 15. Performance Appraisal and Law 16. Emerging Trends in Performance Appraisal .

1. American Management Association.The Complete Guide to Performance Appraisal ± Dick Grote. A Grote Consulting Master Performance Appraisal Form 2. ‡ APPENDICES . Appendix 1. Appendix 2. A Grote Individual Management Development System .

‡ CH-6 :Deals with PA form . how to develop human talent and how to solve peoples problems ?? ‡ CH-9 : The shortest and discusses if the PA is really all that important ???? . execution . assessment and review.The Performance Appraisal Questions and Answers Book ‡ CH-1 : Introduces Performance Appraisal ‡ CH-2 to 5 :Deals with 4 phases of an effective PMS. Performance planning. An ideal form and how to create one ?? ‡ CH-7 : Tells about how the most effective PA Process works ? ‡ CH-8 : Deals with Building Performance Excellence .

correct. assessing performance.Basic Concepts in Performance Management and Appraisal Comparing Performance Appraisal and Performance Management Performance Appraisal: Setting work standards. . and continue their performance. Performance Management: An integrated approach to ensuring that an employee¶s performance supports and contributes to the organization¶s strategic aims. and providing feedback to employees to motivate.

‡ Performance management ± The process employers use to make sure employees are working toward organizational goals. ‡ Employees¶ individual goals point towards overall strategic direction .Comparing Performance Appraisal and Performance Management ‡ Performance appraisal ± Evaluating an employee¶s current and/or past performance relative to his or her performance standards.

and reward them?´ ‡ What will be the technological support requirements? . and for how we train.Creating the Total Performance Management Process ‡ ³What is our strategy and what are our goals?´ ‡ ³What does this mean for the goals we set for our employees. promote. appraise.

3. initiate corrective action . Measure actual performance 4. 6. If necessary.The Appraisal Process 1. Mutually set measurable goals. Establish performance standards with employees. 2. Compare actual performance with standards. Discuss the appraisal with employee. 5.

career development .PERFORMANCE MANAGEMENT CYCLE Strategic Objectives (Through Business Planning Process) Departmental/ Functional Objectives Individual Objectives Performance Planning Rewarding Managing Performance Reviewing Training.

HOW DOES PERFORMANCE MANAGEMENT FIT INTO THE OVERALL COMPANY MANAGEMENT PROCESS? Company Strategic Plans ‡ Sales Projections ‡ ‡ ‡ ‡ Line Expansions New Products Facility Plans Human Resources Performance Planning Periodic Reviews .Coaching & Feedback Performance Evaluation Organization Planning Succession Planning Organizational and People Development Rewards & Recognition Employee Dev /Career Plan .

CASCADING OBJECTIVE S Vision Mission Strategic Plans Business Plans Dept. Goals Individual Performance Plans ‡ Key Results Areas ‡ Objectives ‡ Performance Measurements ‡ Competencies .

retain and develop exceptional employees for organizational success. .PERFORMANCE MANAGEMENT An iterative process of observation and communication to support.

PERFORMANCE MANAGEMENT ³Is a means to create and maintain a climate of success in the organization. ³Performance Appraisals´ This means a Win-Win relationship with employees & Sharing the business success all the way .´ « Martin Fisher.

WHY SHOULD WE MANAGE PERFORMANCE? Encourage and reward behaviors that are aligned with organizational mission and goals People want to feel what they do adds value and understand their contribution to the team Curb or redirect non-productive activities .

It is integrated.WHAT IS PERFORMANCE MANAGEMENT? Armstrong and Baron defined Performance Management as a Strategic and Integrated Approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contribution. because it effects four types of integration: Vertical Functional Human Resource Goals .

Importance of Performance Appraisal .

Could do better things ? Importance of PA and jokes / cartoons ? Edwards Deming ± PA on Organizational Evils ? Discrimination and Biases in PA by Managers ? The legal requirements for a PA System ? How to ensure PA is legally defensible ? Is PA really necessary ? Any other way to obtain benefits attributed with it ??? . How many meetings with an employee for PA ? Why spend time on PA .The Importance of Performance Appraisal ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ What is Performance Appraisal ? Where did Performance Appraisal come from ? What is the purpose of Performance Appraisal ? The Performance Appraisal Process .

mission and values . ‡ Used poorly . ‡ The goal is to help create performance management systems that rewards excellence .The Importance of Performance Appraisal ± An Introduction ‡ PA . management seminars and response to emails sent to clients on PA .the most power full instrument to mobilize energy of every employee in the enterprise towards Goals achievement. few persons get chance and even fewer are Olympics. ‡ PA difficult . an incredibly powerful but unappreciated management technique . if used well ?? . ‡ GROTES questions come from Consulting practice experience . ‡ PA. becomes butt of joke/cartoons . ‡ PA can focus on every persons attention on the company¶s vision.

. ‡ The procedure typically requires the supervisor to fill out a standardized assessment form that evaluates the individual on several different dimensions and then discusses the results of the evaluation with the employee. ‡ The appraisal is usually prepared by the employee¶s immediate supervisor.Performance Appraisal ‡ Performance appraisal is a formal management system that provides for the evaluation of the quality of an individual¶s performance in an organization.

‡ In these companies. But in organizations that take performance appraisal seriously and use the system well. performance appraisal follows a four-phase model.Performance appraisal fourphase model ‡ Performance appraisal is seen merely as a once-a-year drill mandated by the personnel department. it is used as an ongoing process and not merely as an annual event. .

Performance appraisal fourphase model Performanc e Planning Performanc e Review. Performanc e Execution Performanc e Assessment .

Strategy-Based Performance management .

‡ How to get the job done: the Behavior & Competencies expected out of the individual. ‡ Midway through the year. ‡ Coaching & Feedback provided by the manager for creating the probability of success for the employee.Performance Appraisal Model ‡ Performance appraisal follows a four-phase model: ± Phase 1: Performance Planning. Goals & Projects to work on. ‡ Creating conditions that motivate and resolves any performance problems that arise. ± Phase 2: Performance Execution. the manager & employee meet to check on the progress made on part of the employee against the Performance-planning Standards & expectations. ‡ Beginning of the year Performance-planning meeting between the employee & manager ‡ Discuss what is to be achieved ‡ Employee Responsibilities. .

the manager reflects on how well the subordinate has performed over the year. review the appraisal form filled in by the manager. ‡ At the end of the meeting. next year¶s Performance-planning meeting date is fixed & the performance management process starts anew. ‡ Discuss performance over the course of 12 months. ± Phase 4: Performance Review. . ‡ Manager may also recommend a change in the individual¶s compensation based on the quality of the individual¶s work. the assessment form is reviewed & approved by the appraiser¶s boss &/or the department head.Performance Appraisal Model ± Phase 3: Performance Assessment. ‡ Manager & sub-ordinate meet. through various forms & paperwork formally done. ‡ Finally. ‡ As the time for the formal performance appraisal nears.

Purpose of Performance Appraisal ‡ Performance appraisal serves over a dozen different organizational purposes: ‡ The Importance of Performance Appraisal 5 ‡ Providing feedback to employees about their performance ‡ Determining who gets promoted ‡ Facilitating layoff or downsizing decisions ‡ Encouraging performance improvement ‡ Motivating superior performance ‡ Setting and measuring goals .

Purpose of Performance Appraisal ‡ ‡ ‡ ‡ ‡ ‡ Counseling poor performers Determining compensation changes Encouraging coaching and mentoring Supporting manpower planning or succession planning Determining individual training and development needs Determining organizational training and development needs ‡ Confirming that good hiring decisions are being made ‡ Providing legal defensibility for personnel decisions ‡ Improving overall organizational performance .

PURPOSE OF PERFORMANCE MANAGEMENT SYSTEM Employment Decisions Diagnosis of Organizational Problems PURPOSES OF PERFORMANCE APPRAISAL SYSTEM Employee Feedback Objective for Training Programs Criteria in Test Validation .

± Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are filled by the most capable individuals. ‡ Facilitating Promotion Decisions.Purpose of Performance Appraisal ‡ Providing Feedback.A makes sure that the boss¶s expectations are clearly communicated. ‡ Facilitating Layoff or Downsizing Decisions. ± Defined Further . ± P. ± Through its performance appraisal process the individual learns exactly how well he/she did during the previous twelve months and can then use that information to improve his/her performance in the future. ± Performance appraisal helps make sure that the most talented individuals are retained and that only the organization¶s marginal performers are cut loose.

± A good performance appraisal points out areas where individuals need to improve their performance. a performance appraisal process provides them with a means to demonstrate that they actually are. ‡ Motivating Superior Performance ± Helps individuals learn what the organization considers to be µµsuperior. ‡ Setting and Measuring Goals. . ± performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals. as merely µµaverage¶¶). ± Performance appraisal encourages employees to avoid being stigmatized as inferior performers (or.¶¶ ± Most people want to be seen as superior performers. often worse.Purpose of Performance Appraisal ± Defined Further ‡ Encouraging Performance Improvement.

± They need to identify the departments that are rich with talent and the ones that are suffering a talent drought. ± Performance appraisal gives companies the tool they need to make sure they have the intellectual horsepower required for the future. ‡ Encouraging Coaching and Mentoring. ± Companies need to determine who and where their most talented members are. ± Performance appraisal provides the mechanism to make sure that those who do better work receive more pay. ± Identifies the areas where coaching is necessary and encourages managers to take an active coaching role.Purpose of Performance Appraisal ± Defined Further ‡ Determining Compensation Changes. ‡ Supporting Manpower Planning. .

Purpose of Performance Appraisal ± Defined Further ‡ Counseling Poor Performers. ‡ Determining Individual Training and Development Needs. ± Performance appraisal forces managers to confront those whose performance is not meeting the company¶s standards & expectations. ‡ Determining Organizational Training and Development Needs. training and development professionals can make good decisions about where the organization should concentrate company-wide training efforts. ± If the performance appraisal procedure includes a requirement that individual development plans be determined and discussed. ± By reviewing the data from performance appraisals. individuals can then make good decisions about the skills and competencies they need to acquire to make a greater contribution to the company. .

when everyone is clear on the expectations and knows exactly how he is performing against them. . ± Through performance appraisals. ± any personnel decision²termination.Purpose of Performance Appraisal ± Defined Further ‡ Validating Hiring Decisions ± Only when the performance of newly hired individuals is assessed can the company learn whether it is hiring the right people or it is filling itself up with trolls. ‡ Providing Legal Defensibility for Personnel Decisions. transfer to another department²can be subjected to legal scrutiny. denial of a promotion. this will result in an overall improvement in organizational success. not any discrimination. ± The Company can in such situation demonstrate that the decision is made on solid performance appraisals. ‡ Improving Overall Organizational Performance.

Review the appraisal instrument to make sure that it can provide the data the organization and appraisers need to serve all of the different purposes. Communicate the importance of performance appraisal to everyone in the organization. .The performance management process in organizations have conflicting purposes ‡ A workable Solution to reduce these conflicts is to: 1. 3. Consider using different processes and holding separate meetings to deal with each of the areas that a performance management system addresses. 2.

.An Ideal Appraisal Form ‡ The ideal performance appraisal form asks the appraiser to evaluate the individual in five areas: 1. ± µµPlanning and organizing¶¶ and µµconceptual thinking¶¶ might be competencies assessed of everyone whose job is in the professional/ technical job family.Organizational Core Competencies. sales. professional/technical. or behaviors that are expected of everyone in the organization. and operations. ± These are the skills. ‡ 2. ± Some typical job families are managerial/supervisor. ± µµEthics and integrity¶¶ and µµcustomer focus¶¶ might be core competencies that everyone in the company will be expected to demonstrate. traits. µµJob family¶¶ is a convenient way to think about groupings of individual jobs that share characteristics. regardless of job or organizational level. Job Family Competencies. whereas µµsafety¶¶ may only show up on the form used for employees whose job falls into the operations job family. ± These are the competencies that apply to major job families. attributes.

Key Job Responsibilities. ± Every performance appraisal form should require the manager to identify a small number of major accomplishments of the individual over the course of the year. ± These are the major responsibilities or duties of the individual¶s position. 4. Major Achievements. ± These are the individual¶s activities that go beyond the specific tasks and duties outlined in a job description. Projects and Goals. . ± An ideal job description would specify exactly what the key job responsibilities are.An Ideal Appraisal Form 3. 5.

communicate the importance of performance appraisal to everyone in the organization. ‡ Second. In particular. . let everyone know that the process is used as a fundamental determinant of many decisions that affect people in a very personal way. consider using different processes and holding separate meetings to deal with each of the areas that a performance management system addresses.Things to Do ‡ First. review your appraisal instrument to make sure that it can provide the data the organization and appraisers need to serve all of the different purposes (realize that this may make the appraisal form more complex and comprehensive). ‡ Finally.

‡ The second mandatory meeting will be at the end of the year. ‡ One at the beginning of the year²the performance planning meeting²where you will talk about the important results to be achieved over the next twelve months. talk about the individual¶s achievements over the past twelve months. good managers meet with their people to talk about performance on a routine and regular basis. your department¶s goals. ‡ Besides these two mandatory meetings. . and the most important items on the performance appraisal form. the organization¶s mission and vision and values statements. You and the individual will discuss the performance appraisal. ± This is the performance review meeting. however.How many meetings? ‡ You should have a minimum of two meetings. review his development needs. after you have written the appraisal and had it approved by your boss. and then plan for the next twelve months. They also conduct a formal midterm review halfway through the year. ± In this meeting you and your subordinate will review the job description.

± Negative messages generate defensive reactions and promote hostility. rather than serve as useful performance feedback. and whom they often like on a personal basis. ± They are not trained to use it effectively. ± Managers are conscious of the permanence of the paper trail that follows formal appraisal and are often hesitant to commit negative feedback to writing. ± Managers don¶t like to deliver negative messages to people with whom they must work. ‡ Bad News. ± The manager nor the individual are not involved in the design or administration of the system. ± Employees don¶t like to be told that they are not quite as good as they think they are.Why Performance Appraisal Systems Don¶t Work? ‡ No Ownership. . ± Both managers and employees know that bad reviews adversely impact a person¶s career. ‡ Adverse Impact. ± Human Resources rarely asks about their reactions to and opinions of the system (and ignores any suggestions they make to improve it).

± On the other hand. . ± Managers hesitate to give unfavorable appraisals for fear that the appearance of unsatisfactory work by a subordinate will reflect badly on the manager¶s ability to select and develop subordinates. there may be many informal rewards for not delivering unpopular messages.Why Performance Appraisal Systems Don¶t Work? ‡ Scarce Rewards. ± Managers fear that if they give an honest but unsatisfactory appraisal to a black or handicapped employee. ± The organization usually offers few formal rewards for taking the process seriously and probably no informal rewards. ‡ Personal Reflection. they¶ll be hauled off to court for discrimination. ‡ EEO Terror.

‡ Participation by the employee in the goal-setting procedure helps produce favorable results. ‡ Performance improves most when specific goals are established. ‡ Interviews designed primarily to improve a man¶s performance should not at the same time weigh his salary or promotion in the balance. comprehensive appraisal approach. ‡ Praise has little effect one way of the other. ‡ Mutual goal setting. . It found that: ‡ Criticism has a negative effect on achievement of goals. not a once-a-year activity. ‡ Coaching should be a day-to-day. not criticism. improves performance. ‡ Defensiveness resulting from critical appraisal produces inferior performance.Research GE conducted a truly scientific study in the early 1960s to test the effectiveness of its annual.

Isn¶t performance appraisal actually a very biased process? ‡ While many people believe that managers discriminate. Frank Landy and James Farr reviewed all of the research that had been conducted over a thirty-year period on performance ratings. ‡ In a major research project published in Psychological Bulletin. research on performance appraisal indicates that performance ratings are remarkably bias-free. in their appraisal ratings. . They studied every aspect of performance ratings: the effect of different rating formats and the influence of varying rater and ratee characteristics. either deliberately or unconsciously.

there has been no consistent effect of rater sex on ratings obtained in various contexts. But that study also indicated that the difference in ratings was only on the order of 2 percent²more important to the statistician or academician than to the line manager or human resources professional. As far as peer ratings. the research shows that race has no effect. . They were able to find one study in which supervisory raters gave higher ratings to subordinates of their own race than to subordinates of a different race. µµIn the majority of studies. Nor do men rate women more gently or strictly than they do other men. or vice versa. Race. Sex appears to be irrelevant.What part did age and sex and race and education play? Here¶s what they found: Sex. men are neither tougher nor more lenient than women.¶¶ In other words.

The raters concluded that rater education was of no practical importance. . One study found that younger supervisors were less lenient than older ones. Education. Two different studies explored whether age made any difference.What part did age and sex and race and education play? Here¶s what they found: Age. Only one study indicated that the supervisor¶s education level has any effect on how supervisors rated subordinates. the other found no difference at all.

and giving good service are simply accepted management practices and very good ideas.  Conducting performance reviews. creating budgets.  No law compels an organization to review the performance of its members. just as no law requires a company to produce annual budgets or provide good customer service.What are the legal requirements for a performance appraisal system?  There is no legal requirement that a company must have a performance appraisal system. .

What are the legal requirements for a performance appraisal system?  If a company does choose to have a performance appraisal system. . promotion. it must be sure that the system complies with the laws. the legal requirements for performance appraisal systems are similar to those for other selection tests. compensation. and termination.  As a result. selection and hiring.  In the eyes of the law a performance appraisal is an employment test. It is thus scrutinized in a manner similar to that of other aspects of the employment process: initial recruitment.

Define your performance dimensions in behavioral terms and support assessments with observable. 2. . 6. Monitor and audit for discrimination. objective evidence. Provide some appeal mechanism.How to minimize Legal Challenges faced due to Performance Appraisals? 1. Train raters to assess performance accurately and to conduct effective appraisal discussions Provide for upper-management review before the appraisal is reviewed with the individual. 3. Base . 5. 4. Keep things simple. 7. the performance appraisal on an analysis of the job designs.

 Define your performance dimensions in behavioral terms and support assessments with observable. Nonetheless. objective evidence. the risk of legal difficulties can be minimized if seven basic good management practices are followed:  Base the performance appraisal on an analysis of the job.How to make sure that our performance appraisal system is legally defensible? ‡ No appraisal system is immune to legal challenge.  Train raters to assess performance accurately and to conduct effective appraisal discussions.  Provide some appeal mechanism.  Monitor and audit for discrimination.  Keep things simple. .  Provide for upper-management review before the appraisal is reviewed with the individual.


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