PERFORMANCE APPRAISALS

HUMAN RESOURCE DEPARTMENTDesigns the performance appraisal systemEstablishes and monitors a reporting systemTrains managers in how to conduct appraisalsSafeguards performance appraisal records

MANAGERS & SUPERVISORSEvaluates employee performanceCompletes the appraisal documents and formsReviews appraisals with employees

WHAT IS THE PURPOSE OF THE APPRAISAL?

JUDGMENTAL – To make administrative decisions (To justify rewards given for performance)

DEVELOPMENTAL – To improve performance(To provide feedback for learning and work improvement)

You cannot accomplish both purposes equally well with a single appraisal system. Some appraisal tools are better at generating good feedback than providing a consistent rationale for a judgment. Similarly, negative feedback generated by judgmental appraisals is unlikely to motivate the employee to work harder to improve performance. If both appraisal objectives are important, separate assessment systems should be created.

HOW OFTEN SHOULD APPRAISALS BE DONE?

• ANNUALLY (Once a year)• SEMI-ANNUALLY (every 6 months)• QUARTERLY (every 3 months)• MONTHLY• CONTINUOUSLY

WHEN SHOULD APPRAISALS BE DONE?

DO ALL THE APPRAISALS AT ONE TIMEA lot of work to do at one time..overworks the supervisorAll appraisals cover the same time period

DO EACH ONE ON THE EMPLOYEE’S “ANNIVERSARY” The appraisal process is spread over the whole yearAppraisals are not comparable…they don’t cover the same time period

WHO SHOULD CONDUCT THE APPRAISAL?

• IMMEDIATE SUPERVISOR• SUBORDINATES• COWORKERS (Peers)• OUTSIDERS

– Customers– Constituents– Consultants

• SELF-APPRAISAL• GROUPS or TEAMS

360 degree appraisal – from above & below; insiders & outsiders

AN APPRAISER MUST:

• BE AWARE OF THE OBJECTIVES & REQUIREMENTS OF THE EMPLOYEE’S JOB

• HAVE THE OPPORTUNITY TO FREQUENTLY OBSERVE THE EMPLOYEE OR HIS/HER WORK

• BE CAPABLE OF EVALUATING AND RECORDING OBSERVED WORK BEHAVIOR OR PERFORMANCE

• AVOID OR MINIMIZE POTENTIAL APPRAISAL ERRORS AND BIAS

THE FUNDAMENTAL ATTRIBUTION ERROR

POOR WORK PERFORMANCE BY OTHERSTHEIR POOR WORK PERFORMANCE IS CAUSED BY PERSONAL FACTORS (No effort, laziness, they didn’t try)

THE PERSON IS THE REASON FOR FAILURE

MY POOR WORK PERFORMANCEMY POOR WORK PERFORMANCE IS DUE TO SITUATIONAL FACTORS BEYOND MY CONTROL (Poor support, uncooperative coworkers, unforeseen events)

THE ENVIRONMENT IS THE REASON FOR FAILURE

Note the self-serving bias…we are not responsible for our failures, but others are responsible for theirs!

ATTRIBUTION THEORYKELLEY 73

IS THE CAUSE OF BEHAVIOR SEEN AS INTERNAL (PERSONAL) OR EXTERNAL (SITUATIONAL)? WE LOOK FOR THREE INDICATORS TO DECIDE.

DISTINCTIVEIS THIS PERSON’S PERFORMANCE DIFFERENT ON OTHER TASKS AND IN OTHER SITUATIONS? (YES = EXTERNAL, NO = INTERNAL)

CONSISTENTOVER TIME, IS THERE A CHANGE IN BEHAVIOR OR RESULTS ON THIS TASK BY THIS PERSON? (YES = EXTERNAL, NO = INTERNAL)

CONSENSUSDO OTHERS PERFORM OR BEHAVE SIMILARLY WHEN ASSIGNED A SIMILAR POSITION OR TASK? (YES = EXTERNAL, NO = INTERNAL)

Consistent “Yes” answers lead us to external attributions – Environmentally caused“No” answers lead us to internal attributions -- The person is responsible

ATTRIBUTIONAL MODEL OF FAILURE

INTERNAL ATTRIBUTION – Person Responsible?LACK OF ABILITYLACK OF EFFORT

EXTERNAL ATTRIBUTION – Situation Responsible?DIFFICULT TASKBAD LUCK

ENLIGHTENED SUPERVISOR RESPONSELACKS ABILITY-- Training or TransferLACKS EFFORT -- Reprimand or Motivational StrategyDIFFICULT TASK -- Job RedesignBAD LUCK -- Sympathy and Support

APPRAISAL ERRORS

FUNDAMENTAL ATTRIBUTION ERRORHALO & HORN EFFECTSRECENCY EFFECTCONTRAST EFFECTSTATUS EFFECTPROJECTION EVALUATOR PREJUDICEDISTRIBUTION (RANGE) ERRORS

Leniency, Strictness, or Central Tendency

USE OF INVALID APPRAISAL MEASURES

THREE FOCAL POINTS OF APPRAISAL

1. PERSONAL TRAITS AND CHARACTERISTICS+ inexpensive to develop and use+ not specialized by position; one form for all workers- high potential for bias and rating errors - not very useful for feedback or development - not easily justifiable for reward/promotion decisions

2. JOB BEHAVIOR AND ACTIVITY + can focus on specific duties listed in the job description+ intuitively acceptable to employees and superiors+ useful for providing feedback+ seem fair for reward and promotion decisions- are time consuming to develop and use- can be costly to develop- have some potential for rating error and bias

THREE FOCAL POINTS OF APPRAISAL CONTD

3. WORK RESULTS AND OUTCOMES

+ less subjectivity bias+ acceptable to employees and superiors+ links individual performance to organizational objectives+ seem fair for reward and promotion decisions- are time consuming to develop and use- may encourage a short-term perspective- may use deficient or inappropriate criteria

APPRAISAL METHODS

NARRATIVESESSAYSCRITICAL INCIDENTS

RANKING COMPARISONSALTERNATIONPAIRED COMPARISONS

CHECKLISTSSIMPLEWEIGHTED

RATING SCALESGRAPHIC RATING SCALESBEHAVIORALLY ANCHORED RATING SCALES (BARS)BEHAVIORAL OBSERVATION SCALES (BOS)

OBJECTIVE MEASURESNATURAL COUNTS (Quantity produced, etc)GOALSETTING STANDARDS (MBO, etc)

MANAGEMENT BY OBJECTIVES

BENEFITSA basis for effective organizational planning and controlImproves communication and feedback with the supervisorEncourages participation and joint decision-makingFacilitates role clarification by revealing assessment criteria

PROBLEMSAre the really important (key) areas of the job included?Is the process participative or are goals “set” for the worker?Can the worker truly control the outcomes s/he achieves?Overemphasizes quantitative, short-term, individual objectives

GOALSETTING ISSUES

GOAL DIFFICULTYHow challenging should the work objectives be? I want an easy goal, but the organization wants me to “stretch.”

ACCEPTANCEWill workers feel committed to work toward objectives that have been assigned to them, rather than those set participatively?

SPECIFICITYPrecise quantitative indicators may not exist for critical elements of the job. General, open-ended goals are not easily assessed.

MOTIVATIONObjectives should be challenging, yet reachable. They also need to be linked to desirable rewards to successfully motivate workers.

GUIDELINES FOR APPRAISALS

1. Appraisal standards are job related -- based on job analysis2. Standards are clearly communicated to employees in advance3. Standards are responsive to actual worker behavior or effort4. Activities performed and results achieved are both appraised5. Acceptable vs. unacceptable results can clearly be discerned6. Appraisal criteria are consistently applied7. Raters are able to consistently observe work performance8. Raters are trained in appraisal and how to feedback results9. Developmental feedback is separated from judgmental appraisal10. An appeal process exists to resolve (judgmental) rating disputes

WORKER EXPECTATIONS TODAY

WORKER “RIGHTS”• EMPLOYMENT• DUE PROCESS• EXPRESSION• PRIVACY• SAFE WORK ENVIRONMENT• EQUAL OPPORTUNITY• JUST WAGES• ORGANIZE

EMPLOYER OBLIGATIONS TO WORKERSJUSTICE/FAIRNESSNON-INJURYTREATMENT WITH DIGNITY & RESPECT

WORKER OBLIGATIONS TO EMPLOYERSLOYALTYOBEDIENCECONFIDENTIALITY

WORKER OBLIGATIONS TO THIRD PARTIESTRUTHFULNESSNON-INJURYFAIRNESS

RESOLVING WORK DISPUTES… THE “DUE PROCESS” OBLIGATION

ARE WORKERS TREATED WITH DIGNITY AND RESPECT?

IS THERE AN INVESTIGATION OF THE FACTS BEFORE ANY ACTIONS ARE TAKEN?

IS THE JUDGMENT APPROPRIATE, GIVEN ALL THE FACTS?

IS THERE AN AVENUE OF APPEAL?CHAIN-OF-COMMAND“OPEN DOOR” POLICYOMBUDSPERSONPEER REVIEW PANELARBITRATION

THE RIGHT TO WORK

DERIVED FROM BASIC RIGHTS TO LIFE, DEVELOPMENT, & RESPECT

A “RIGHT” TO EMPLOYMENT MAY ARISE WHEN:Labor supply exceeds demandNo alternative ways to earn a living exist, except to work for othersExtended families (which share resources) do not exist, or break down

“EMPLOYMENT AT WILL” DOCTRINEThere is no contract.Either member can terminate the relationship at any time

THREE EXCEPTIONSPUBLIC POLICY

Refuse to commit crimes, testify to authorities, blow the whistleCONTRACT

Written or implied by letters, handbook or oral assurancesBREECH OF GOOD FAITH

Is this fair? Was an opportunity given to improve?

IS THE DISCIPLINARY PROCESS “FAIR?”

ATTRIBUTIONAL MODEL OF FAILUREIs the person at fault, or is it the situation that has created the problem?

“Fundamental Attribution Error” --- blames the person most of the time

IS POOR WORK PERFORMANCE ATTRIBUTED TO:PERSON

LACK OF ABILITYLACK OF EFFORT

ENVIRONMENTDIFFICULT TASKBAD LUCK

SUPERVISOR RESPONSE TO FAILURELACK OF ABILITY – CONSIDER TRAINING OR TRANSFERLACK OF EFFORT – CONSIDER DISCIPLINE OR MOTIVATIONAL PLANA DIFFICULT TASK – CONSIDER JOB REDESIGNBAD LUCK – OFFER SYMPATHY AND SUPPORT

DISCIPLINARY MISTAKES MADE BY SUPERVISORS

1. Rules and procedures are not formalized (written down)2. Workers don’t know what the rules are (not communicated)

clearly)3. Supervisor is too lenient early, and too strict later4. Supervisor “chews out” (disciplines) employees in public5. No objective investigation of facts prior to discipline6. No opportunity for employee to state his/her side of the story7. No avenue of appeal available8. No records kept of previous incidents or rule violations

WRITTEN RECORDS OF VIOLATIONS SHOULD INCLUDE:

1. A statement of the facts … what happened?2. Identify the rule violated3. What damages did, or could have resulted from this action?4. Previous violations by this employee5. Future consequences if this happens again6. The worker’s version of the incident7. The worker’s signature and date

TWO PHILOSOPHICAL OBJECTIVES RE: PROBLEM EMPLOYEES & DISCIPLINE

CORRECTIONTry to change behavior or outcomesResults or actions must be “corrected!”

RETRIBUTION (PUNISHMENT)One must bear the consequences of one’s actionsThere is a “price” to pay when mistakes are madeThe offending parties need to “feel real bad” about what happened!

TWO TYPES OF WORK-RELATED DISCIPLINE PROBLEMS

POOR WORK PERFORMANCEINAPPROPRIATE PERSONAL CONDUCT

PROBLEM EMPLOYEES

POOR WORK PERFORMANCELACK OF ABILITY?LACK OF MOTIVATION?TASK IS TOO DIFFICULT?UNFORSEEN OBSTACLES?

INAPPROPRIATE PERSONAL CONDUCT

ALCOHOLISM & DRUG ABUSEPERSONAL PROBLEMS?…WILLING TO REHABILITATE?

THEFT, VANDALISM, HARASSMENT & ILLEGAL ACTSDO WE HAVE GOOD EVIDENCE?…WHAT MOTIVATED THEM TO DO THIS?

HORSEPLAY AND BREAKING COMPANY RULESDELIBERATE OR UNINTENTIONAL?…ARE THE RULES LOGICAL AND FAIR?

SHOULD WORKERS BE DISCIPLINED FOR…

Theft and/or breaking the law?Violation of company policies and procedures?Lateness and absenteeism?Inefficiency and low productivity?Lack of ability and skills?Disloyalty – blowing the whistle?Incompatibility with management?Economic downturn?

How large should the “punishment” be in each case?Should workers face potential job loss for these reasons?

ARBITRATORS NORMALLY CONSIDER:

• NATURE OF THE OFFENSE

• DUE PROCESS PROCEDURES—ARE THERE ANY AND WERE THEY FOLLOWED?

• KNOWLEDGE OF RULES BY WORKERS

• CONSISTENCY IN ENFORCEMENT OF RULES

• PAST RECORD AND PREVIOUS WARNINGS

• LENGTH OF SERVICE WITH THE COMPANY

• SIGNS OF DISCRIMINATORY TREATMENT

EMPLOYER OBLIGATIONS, CONTD

TO ASSIST THE FORMER EMPLOYEE:

JOB LOSS DUE TO:

POOR WORK PERFORMANCEPOOR PERSONAL CONDUCTECONOMIC DOWNTURN

SHOULD THE EMPLOYER PROVIDE?

ADEQUATE NOTICE?SEVERANCE PAY?ASSISTANCE IN FINDING A NEW JOB?JOB RETRAINING/RETOOLING?

DISCIPLINARY ACTION GUIDELINES

DON’T JUMP TO CONCLUSIONS – GET ALL THE FACTS FIRST

BE A GOOD LISTENER

BE PROMPT IN DEALING WITH THE ISSUE

COMMUNICATE WHICH BEHAVIORS ARE DESIRABLE

THE ACT, NOT THE PERSON, SHOULD BE CONDEMNED

DISCIPLINE SHOULD BE ADMINISTERED IN PRIVATE

TACTFULLY WATCH TO SEE WHETHER BEHAVIOR IMPROVES