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Performance Appraisal

Question 3Performance 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 appraisalManagement 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 appraisalPerformance 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 AppraisalAppraisee

• 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).

• 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)

Total Performance Management 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

Performance Appraisal Form

Competencies Competencies Performances Key Responsibility Areas

Core Values• Teamwork• Respect• Integrity• Compassion• Excellence

Core Competencies • Put Customer First• Get Things Done• Be a Team Member• Develop Self and

Others• Apply Knowledge• Building a Hassle Free

Hospital

Job Performance Factors• Job knowledge• Planning and

Implementation• Job Quality• Effective

Communicator• Change Agent• Decisiveness• Concern for Staff

• Financial (5%)• Customer (25%)• Internal Process

(60%)• Learning and

Improving (10%)

Leadership• Embrace Change• Influence and Lead• Think Strategically• Develop Others

Leadership• Embrace Change• Influence and Lead• Think Strategically

Hospital Core Values• Compassion• Integrity and

Openness• Respect• Commitment• Collegiality• Professionalism

Process of Employee AppealSingapore 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 AppealSingapore 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

Higher Management

Performance Appraisal

Change in rating

Status Quo

Approach in re-appraisalKnow 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 DataManagement by objectives (MBO) Key Results Area (KRA)

Interview staff & previous appraiser in order to find out the reason for their grievances1) Personality clash with previous appraiser2) Possible error in rating3) Provide listening ear

Anecdotal entries

Peer review - more accurate appraisal(Nankervis, Compton & Baird, 2002)(Raymond, 2009)

Review Employee’s PerformanceIs there a problem?

NoGive feedbackas appropriateYes

Root causes

Skill Related• Provide education• Coach• Simplify task• Reassign

Motivation related• Clarify expectation• Determine obstacle and remove them• Remove punishment• Determine subordinate value regarding

rewards

(Sullivan & Decker, 2005)

Approach to Re-appraisalMany 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 QuoHow 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 QuoHow 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.

ReferencesBacal, 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.

ReferencesKandang 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.

ReferencesReh, 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.