PERFORMANCE

MANAGEMENT
 Learning Objectives

• Describe the appraisal process.

• Define performance management and discuss how it
differs from performance appraisal.
• Develop, evaluate, and administer at least four
performance appraisal tools.
• Explain and illustrate the problems to avoid in appraising
performance.
• Perform an effective appraisal interview.
• Explain how to “segment” employees for appraisal and
reward purposes.

Copyright © 2015 Pearson Education Ltd. 9-2

Performance Management Misconceptions
▪ Most people associate PM with concepts such as:
▪ Performance Appraisal
▪ Performance-related pay
▪ Targets and objectives
▪ Motivation and discipline
▪ Performance management is much more than this
and Performance Management Concepts have changed
over recent years.
 Performance Management is an ongoing
process of communication between a Manager
Definition and a subordinate that occurs regularly, in
support of accomplishing the strategic
objectives of the organization.
PM process includes setting objectives,
identifying goals, providing feedback, and
evaluating results.
Benefits of an Effective PM System

Provide a rational
Establish clear Promote good Manager - “objective” basis for
performance standards Employee relations by evaluating performance
at the beginning of the providing opportunities Improve individual, team
performance cycle for timely feedback and organizational
performance

Reach individual’s Identify ways to

targets and release potential &
organizational improve future
objectives. performance
The need for Performance Management

For Management For Employees

• Employee productivity • A good relationship with their leaders and
• Customer satisfaction coworkers
• Employee job satisfaction • Meaningful work
• Quality of products and services • Safety in the workplace
• Degree of innovation Improve • Opportunities for growth and advancement
organizational results • A clear understanding of work objectives
 A well-planned and implemented approach to
PM can achieve this sense of mission by
providing:
How can ▪ Clarity on the organization's overall goals
▪ A framework for linking strategies and
Performance priorities to jobs
▪ Greater clarity on role requirements from
management to employees
achieve ▪ Recognition of success and regular
feedback
mission ? ▪ A clear basis for promotion
▪ A framework for development and
improvement
PERFORMANCE
PLANNING
 ✓At this stage, employees need to know what is
expected of them and why.
✓By helping employees focus on the objectives they
need to achieve, in relation to both targets and
What this promontories and professional attitudes and
behavior.
performance Key Responsibilities - Job Description (JD)
planning For every position, a JD exists to tell employees
exactly what they are to do in their jobs.
about? Assessment requires one step further to identify the
specific results you expect from an employee over a
given period of time.
Performance objectives tell employee what, how,
when and with what results you want their job done.
 Performance Objectives (PO)
Setting Objectives, explain against what staff are being measured, set
objectives in order to change or enhance performance.
Why Performance Objectives?

What this • Performance objectives is a tool for management to manage

• Help department/unit meets goals ƒ
performance • Provide clear direction, results, events & time frames
• Encourage employees’ involvement and commitment ƒ
planning • Organizations, teams and individuals are measured by the extent to

about? which they meet their objectives.

• Help to identify specific strategies for coaching.
• It is impossible to evaluate, assess and pay for what cannot be
measured, observed or traced
In the absence of objectives, managers tend to judge performance in
subjective ways using generalities rather than facts & figures.
Creating SMART goals

S pecific
M easurable
A ttainable
R ealistic
T imely (and Tangible)
 Creating specific goals
A specific goal has a much greater chance of being accomplished
than a general goal.

A general goal would be, “Implement

common core state standards.“ But a
specific goal would say, “Implement one
standard every six weeks, and have two
formative and one summative assessment
with it."
 Creating specific goals
To set a specific goal you must answer the six "W" questions:
Who: Who is involved?
What: What do I want to accomplish?
Where: Identify a location.
When: Establish a time frame.
Which: Identify requirements and constraints.
Why: Specific reasons, purpose or benefits of accomplishing the goal.
 Creating measurable goals
Establish concrete criteria for measuring progress
toward the attainment of each goal you set.

When you measure your progress, you stay on

track, reach your target dates, and experience the
exhilaration of achievement that spurs you on to
continued effort required to reach your goal.
 Creating Measurable Goals
To determine if your goal is measurable,
ask questions such as:
• How much?
• How many?
• How will I know
when it is accomplished?
 When you identify goals that are most important to
you, you begin to figure out ways you can make
them come true.

You develop the attitudes, abilities,

Creating skills, and financial capacity to reach
attainable them. You begin seeing previously
overlooked opportunities to bring
goals yourself closer to the achievement of
your goals.
 Creating Attainable Goals
You can attain most any goal you set when you plan your steps wisely and establish a
time frame that allows you to carry out those steps.

Goals that may have seemed far away and out of reach eventually move closer and
become attainable, not because your goals shrink, but because you grow and expand to
match them.
 To be realistic, a goal must represent an objective
toward which you are both willing and able to work.

A high goal is frequently easier to reach

than a low one because a low goal exerts
Creating low motivational force. Some of the
realistic goals hardest jobs you ever accomplished
actually seem easy simply because they
were a labor of love.
 Creating realistic goals
To determine if your goal is realistic,
ask questions such as:
• Do I truly believe that it can be accomplished?
• Have I accomplished anything similar in the past?
• Can I identify the conditions that would have to exist to accomplish this
goal?
 Creating timely goals
A goal should be grounded within a time frame.
With no time frame tied to it, there is no sense of
urgency. When do you want to accomplish your goal?
“Someday” won't work. But if you anchor it
within a timeframe (“by May 1st”), then you
have already set your unconscious mind into
motion to begin working on the goal.
Improving Goals: Why SMART?

GOAL: S M A R T
I want to lose weight

I want to lose 20 lbs. by April. I will

perform a half hour of cardio and half
hour of strength training per day, 5
times a week and I will only eat
starchy carbohydrates 3 times a week.

25
Checklist
PERFORMANCE
MONTIORING
What is performance
Monitoring?
Managers support and encourage employees to
deliver the required objectives and results
throughout the year(s) in an effective ongoing
way including opportunities for personal and
professional development.
This stage includes:
▪ Observe and Monitor
▪ Support and motivate
▪ Coach
▪ Deliver feedback
Observing and Monitoring

▪ Direct and indirect observation

▪ Find formal and informal opportunities to
watch an individual in action
▪ Look for patterns and ask why
▪ Consider impact of behavior on others.
▪ Seek others’ input, as needed.
COACHING

▪ Coaching is the art of improving others' performance

▪ Develop and improve the ways employees do their job.
▪ Gives opportunity to speak in confidence about problems.
▪ Allows employees to learn and grow at their work.
▪ Create continuous and development opportunities
▪ Achieve employees’ and organizations’ goals.
Business Coaching Research shows that productivity, skill
development, morale, and working relationships all improve
dramatically when training is combined with coaching.
Training Alone = 22%
training + Coaching = 86%
 Feedback

Effective feedback Giving Feedback

Value of feedback
▪ is focused on behavior ▪ Build trust and rapport - Be honest
▪ Improves self-awareness
▪ is based on observation ▪ Give feedback directly after a
▪ Enhances self-esteem ▪ is given in good time particular behavior.
▪ Raises morale ▪ ideally, is given face-to-face ▪ Be descriptive, non-judgmental and
▪ covers both positive and negative specific.
▪ Encourages people to learn outcomes ▪ Disclose your own feelings or position
▪ Offers support ▪ Is important and constructive (“you ▪ Consider both; your needs and needs
could do more of…”) of the receiver.
▪ Can be motivating ▪ Make sure that the message is
▪ looks at whole job
▪ Helps build relationships ▪ deals with attitude as well as actual understood. Feedback should not be
outcomes imposed. "let me give you some
▪ Improve individual & team
performance ▪ feedback!” rarely works.
▪ Ask for upwards feedback too (what
can I do better to
▪ support you?’)
 Feedback
Receiving feedback One - on – One session
▪ be open ▪ Maintain log
▪ listen carefully ▪ Mid-Year review
▪ avoid filtering ▪ Refine responsibilities
▪ ask questions ▪ Refine objectives
▪ be prepared to contribute ▪ Revisit priorities
▪ decide to take action
PERFORMANCE
APPRASIAL
 At this stage, employees know that their contribution is valued
and that their results and achievements really do make a
difference to the team and the organization.
Overall assessment of individual’s performance against the
performance criteria established before
Some PA comments
PERFORMANCE
▪ “We’ve gone through the annual ‘torture-fest’ – all for a lousy
APPRAISAL 3% raise!”
▪ “My boss must be getting ready to fire me – all she talked
▪ about was every little mistake I made this year.”
▪ “I had a really productive discussion with my boss about the
▪ things I do well, some new projects I’ll take on and some
▪ training to help build my technical ability.”
 What is a Performance Appraisal?
▪ The Term “Appraisal” is generally accepted to mean a formal
procedure of evaluating performance in a given period, against
set standards and which includes a face to face interview with
the person being interviewed.
▪ A sensitive PROCESS that requires Serious Attention, Mental
Shift, Management Persistence, Tolerance and Extreme
Performance Fairness.
Why performance appraisal?
Appraisal ▪ To provide a clear & formal channel of communication on
current performance from company perspective, objectives,
goal setting, career & development programs.
▪ Measure the degree of utilization of each employee’s
competencies & performance.
▪ To serve as a major support for salary administration,
connecting performance to pay, quality job performance.
 PERFORMANCE
APPRASIAL
Employee self - Appraisal
▪ Have the employee complete the evaluation form first.
▪ Engages employee as partner in managing performance
▪ Alerts supervisors to differences in how performance is viewed
▪ Provides source of information about organizational or operational issues that influence performance
▪ Ask them to get the facts of last years performance
▪ Recommend writing a Summary of list of what they have accomplished during the period.
Manager fills out PA form
▪ As a manger, complete the evaluation form listing strengths,
▪ areas of development, accomplishments, and future goals.
▪ Try to connect the categories on the form with the responsibilities of the employee (JD’s)
▪ All ratings that are a 1 or a 4 should have documentation that supports the rating.
▪ Plan how will you explain to the employees how they can achieve a higher rating in each category
Common Errors on
Appraisal
1. Standards not adequately defined
2. Over-emphasis on recent performance
3. Relying on own gut feeling and perception
4. Basis for appraisal not understood by Employee
5. Documentation not sufficient or clearly written
6. Inadequate time allocation for discussion
7. Too much talking by evaluator
8. No action or follow-up plan
PM Ratings and Merit

• Important to maintain integrity of evaluation ratings

• Ratings aid in the determination of merit increases
• Ratings recognize and reward staff members for
performance contributions
• Employee receives percent of increase aligned to their
performance
• rating level
• Employees are well aware of the impact of ratings and
merits results.
• Merit increases are based on state budget allocations
Rating Scale Identify Rating Differences
• Exceeds Job Expectations - Excellent
• Meets Job Expectations - Good
• Partially Meets Job Expectations - Acceptable
• Does Not Meet Job Expectations – Unsatisfactory
Weighting Goals
• Provides employee and supervisor with common
understanding of
• which are most important to success
• Helps in monitoring activities that are critical to
organizational goals
• Priorities may change during course of the year
✓ Numeric Rating Levels
✓ Lettered Rating Levels
 Similar to Me. Tending to
Positive Leniency. Rating Negative Leniency. Rating
rate people up if they are
higher than people deserve. lower than people deserve.
similar to me or vice versa.

Attribution Bias. Tending to

favorable/unfavorable trait, see poor performance more
Halo/Horn effect.
which colors the judgment within the control of the
Excessively influenced by a
of the individual, other individual and superior one
single
traits. as more influenced by
Common external factors.

Rating errors Stereotyping. Generalizing

across a class, not
Contrast Effect. Evaluating
First Impression. Forming
initial positive or negative
judgment then
employee relative to the
recognizing individual ignoring/distorting data that
person last evaluated.
differences. can change initial
impression.

Central Tendency. Playing

safe. Placing people in the
middle of the scale.
Preparing for the Interview

Being Process Focus on

• Being prepared for the • process far more • Focus on two areas;
Performance Appraisal efficient and effective first employee, then
Session will make the yourself

Schedule Talk Allocate

• Schedule a mutually • Talk with employee • Allocate enough time
agreed upon time and few days prior to and inform employee
place to meet. scheduled appraisal about it

Do not discuss
• Do not discuss
performance, just a
friendly reminder
 Points to consider in PA Session
▪ Approach the PA as just a process, not an activity. ▪ An initial friendly greeting & Maintaining rapport
▪ Preserve mutual respect and trust. reduces tension (call by name, maintain smile & eye
▪ Use specific, objective and quantifiable data when contact)
discussing performance problems. ▪ Encourage them to talk. Do not dominate talking.
▪ Focus on the problem, not the employee. ▪ Allow time for employee’s own inputs & perspectives
▪ Focus on the effect or outcome of behavior, not the ▪ Truly listen very carefully
cause. ▪ Have a clear plan for accomplishing meeting’s
▪ Do not blame or accuse, it does not solve problems. agenda, topics for discussion
▪ Concentrate on outcomes you want to avoid in the ▪ Be prepared with data and needed evidences
future. ▪ Discuss shortfalls,
▪ Avoid making large or overall judgments. It is less ▪ Never get bored, impatient, tensed or show any bossy
threatening to deal with small concepts first. kind of attitude
▪ It is easier for employees to accept SMALL area ▪ Discuss setting objectives & establishing a plan
which requires improvement.
▪ Discuss & agree performance plan and development
▪ Than to accept SWEEPING OVERALL judgment plan
not as positive as they might have expected.
▪ Once all areas have been covered, discussed and
agreed upon, have employee sign and date the
appraisal and close the meeting with brief motivating
comments. ,
 ▪ Young, solid performer
▪ I hope we can keep the employee forever
▪ Has done okay despite being overworked
Beware of and underpaid
these ▪ Has great attitude
Comments ▪ Couldn’t run the department without her
▪ Not bad for an old timer
in PA ▪ Careless on the job
▪ Undependable
▪ Is attractive and has potential
Professional Development
Plan (EDP)
 Addresses specific skills needed to enhance an employee’s performance. The major
aspects of the EDP are:
▪ Involving the employee,
▪ Consider improving performance in current job,
Professional ▪ Consider possible future advancement,

Development ▪ Consider enrichment activities,

▪ Obtain dual acceptance of development needs.
Plan (EDP) ▪ Share the responsibility.
▪ Employees should define a career goal,
▪ Dedicate time & energy to the activities to develop the requisite skills & knowledge.
▪ Manager should assess development activities, encourage and offer specific
development recommendations.
▪ Generic & specific development needs are identified
▪ Discussed and agreed to by the employee and the manager.
▪ Establishing target dates for completion and assigning
▪ responsibility for the development activity
 While sometimes growth opportunities may be limited, it
is important to develop staff skills and provide
experiences that will enrich their professional lives

A shared responsibility between employee &

manager/sup.

Professional
Development goes beyond formal training courses: may
Development include cross-training, temporary project assignments, on-
the job training and mentoring.

Plan Should include timetable for learning skill and how it will
apply in the employee’s job.

May include indicator of priority and/ or capacity

SEE YOU NEXT SESSION