Archive for the ‘Performance Appraisal’ Category:
Performance management involves an ongoing process of establishing goals, evaluating the activities undertaken to achieve those goals, as well as assessing the final outcomes within an organization. This ongoing process allows management to assess the performance of the employees within the organization and how effective the organization is in meeting their strategic goals.
The performance management process can take many forms, ranging from periodic performance reviews between the manager and subordinate to 360 degree performance appraisals which involve gathering information from varied sources such as from peers, subordinates of the individual being assessed and maybe even from external clients. Typically, these performance reviews are conducted on a formal basis whereby the manager will meet with the subordinate on a periodic basis to assess the performance over that period and to provide feedback to the subordinate. The feedback component of the performance review process is very important as it provides subordinates with information regarding the areas in which they meet expectations or excel as well as areas where they may require further development. These provide advice and guidance for improving their performance. When conducted properly, this feedback process can serve as a source of encouragement and motivation.
With this in mind, it is critical for organizations to provide effective feedback during their performance review processes. This is done by providing specific feedback on behaviours that can be changed so as to improve performance. General feedback regarding possible negative behaviours would likely undermine the confidence of the employee and may cause the employee to become more defensive. Thus it would be more effective to provide examples of ideal behaviour that would help to improve performance. It is also important to maintain the confidence levels of the employee by providing them with support and encouragement in their capacity to improve and meet their potential.
Another point to keep in mind for performance reviews is to ensure that the process is not directed at criticizing the employee. It should focus on problem solving and identifying potential solutions in a collaborative manner. In this way, the employee will not feel that they are being criticized on his or her job performance thus enabling both parties to have a discussion to identify possible ways for that performance to be improved. Even when covering performance issues, it is very important to treat employees with respect so that they do not feel that they are being personally criticized.
Although performance reviews are commonly conducted formally on a periodic basis, the inclusion of informal performance reviews can be of considerable benefit. This allows the managers and subordinates to meet on a more frequent basis to discuss their ongoing processes, identify performance issues and provide advice regarding potential solutions. This can be especially useful for employees dealing with new duties and responsibilities when feedback is provided in a timely manner and immediate remedial solutions can be explored instead of waiting for the formal performance review period when such feedback may not be as urgent or relevant.
These are just some suggestions whereby organizations can help to mitigate some of the stigma and negative public perceptions that are widely held regarding performance reviews. In addition, the motivation benefits that are associated with providing effective feedback during performance reviews can improve both individual and organizational performance.
If you are interested in using an online and validated 360 Performance Framework and Appraisal System, have a look at the Saville Consulting 360 Appraisal System at http://www.psyasia.com/360_performance_appraisal.php
Written on November 18th, 2009 by Derekno shouts
There is much emphasis placed on organizations being able to adequately assess the individual performance of employees so as to ensure that organizational goals have been achieved. This has been commonly done through periodic reviews conducted with employees to assess whether they have met their goals for that period. There is more to performance reviews than to just assess whether their goals have been met; there is additional potential for organizations to assess how the goals were met, what were the barriers to achieving those goals, as well as whether improvements could be made.
Performance reviews also provide the opportunity for management to assess the process that was undertaken by the employees to see whether the course of action taken to achieve the goal was effective. This can be very enlightening as management gets a clearer perspective regarding the operational concerns involved while obtaining feedback from employees regarding any potential barriers that are present or even suggestions about how things can be improved.
For the employees, this is an additional forum where they are able to provide relevant input for the organization and it can be motivating when they see that management is interested in what they have to say as well as implementing some of the suggestions that they have provided. This ensures greater buy-in and commitment among employees as they are able to contribute to the process.
There are several techniques which can be used as a method of performance appraisal. Some traditional techniques involve using critical incident methods, graphic rating scales and ranking methods. Some modern techniques involve 360 degree performance appraisal, assessment centers, behaviorally anchored rating scales and using self appraisal.
Rating scales are a very structured method. This involves rating an employee on a scale which ranges from ‘poor’ to ‘excellent’ performance. The employee is assessed on this scale based on their performance or traits which are considered relevant to the job. For example, attributes such as punctuality, initiative, creativity and excellent knowledge in programs, such as Photoshop might be crucial to a role such as graphic designing. This method provides a structured and standardized way of evaluating performance and comparison between employees can be made easily. Rating scales are easy to interpret for both, the appraiser and the appraisee and is a very popular method.
It is very important to ensure that the traits and the competencies which the individual is evaluated against are clearly relevant to the job. For example, if the employees performance is not included in the selected traits, then their value to the organization might not be reflected. Some problems regarding interpretation might also occur. The perceptions/steretypes an appraiser has of someone can be reflected either negatively or positively in the appraisal, and we might basically see in others what we want to see in them. For example, if a supervisor believes that an employee is good (halo effect), then they might ignore all the evidence which is against that individual. Instances such as showing up late might be ignored, or excuses for bad performance might occur. In the same way a supervisor might form a bad impression of someone (horn effect) and be more hard in their assessment and might even ignore evidence of good performance. The halo and horn effect can have huge implication on the appraisal process.
Perceived meaning on the selected traits on the rating scales can also be problematic if it is not clear. For example, if a competency, such as “initiative” might be perceived to an employee as reporting problems to a supervisor. However, another person might express this trait as not reporting problems and might see this as being too dependent and therefore lacking in initiative. It is important to ensure that the language on the rating scales is clear, and factors such as “good” and “well done” might mean different things to different people.
Rating errors might also occur. This is because some people might deliberately avoid giving a bad rating to others because of the repercussions of it. In all performance appraisal meetings individuals should be encouraged to respond honestly because it is reflective on their performance and is designed to help them and the organization as a whole.
Written on October 16th, 2009 by Derekno shouts
It is important during the planning stage of performance appraisals that both the employee and the employer establish SMART goals. SMART goals is a term coined by Blanchard in 1985 in “Leadership and the One Minute Leader”. The SMART acronym refers to – Specific, Measurable, Attainable, Realistic and Timely.
Specific goals need to answer the “who, what, where, when, which and why” of the objectives being set. Essentially, it needs to address the subjects involved, the tasks that need to be completed, the location where the tasks are carried out, the timeframe needed, the requirements and barriers as well as reasons for the objective. Goals are more easily accomplished when they are specific.
The goals also need to be measurable, by establishing timelines and criteria with which to assess your progress. With such measures in place, the progress of the goal can be measured and tracked, ensuring that the goal is achieved. The satisfaction from monitoring the progress made and reaching certain milestones can be very motivating.
Attainable goals act as motivators to obtaining the necessary skills and information needed to complete the objectives. When an individual perceives a goal to be attainable, they will strive to take the necessary steps to achieve it.
Goals need to be realistic in that they must be objectives that the employee must be willing and able to achieve. These are goals that the individual would perceive themselves as having the capability to complete as well as having the motivation to work towards to.
Finally, timely refers to establishing timelines by which the individual is aiming to complete the goal. Having such time anchors, the individual has established the boundaries of achieving their goals and will strive to achieve it within the agreed timeframe.
Written on October 16th, 2009 by Derekno shouts
Competencies in Human Resources refer to the knowledge, skills, abilities and other qualities that an individual possesses which influences their performance at work. These competences are typically assessed during a job analysis where the appropriate competencies for the role are identified and included in the position specification.
Performance Management refers to an ongoing process of establishing goals, evaluating the processes and outcomes within an organization. This process allows management to assess the performance of individuals and allows the organization to drive towards the fulfilment of established goals.
When applied to Performance Management processes for employees, competencies can serve as key criteria in assessing the performance of the individual at work. Typically, these competencies are assessed through behavioural indicators that are related to the competency being assessed. For example, a customer service role would require an individual who is customer oriented and provide good service. Therefore, the competency of “customer orientation” could be assessed by a key behavioural indicator such as client feedback regarding the quality of services that they have been provided by that individual.
It would be ideal that the performance management of employees is carried out with clearly defined competencies along with the associated key behavioural indicators that have been demostrated to be related to performance in the work role as these would provide an accurate measure of an employee’s performance.

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Performance appraisal is designed to help individuals and organizations improve performance. By conducting an annual appraisal, individuals are able to communicate with others, standards can be monitored, expectations and objectives can be agreed upon, and individual training needs can be established. However, sometimes individuals (e.g. managers and appraises) do not like appraisals. This is because they might feel that it takes too much time and effort. The process of performance appraisal might be viewed as an additional administrative responsibility. The entire process can also be emotionally challenging because individuals have to receive comments which they might not like, and some management might not want to provide negative information. Some negative comments might also be avoided because people might fear negative consequences. If individuals are not comfortable and willing to receive (and provide) feedback, then the purpose of performance appraisal is not met. All of these factors should be considered during the implementation of an appraisal system. Those involved should be educated to understand that appraisal is about development and ensuring that the organisation’s needs and objectives are met by approproately developed employees. Appraisal should therefore not be seen as a negative experience, rather more like a workout in the Gym. Proper training is required on the part of the apraisee to reflect such an attitude towards appraisal.
If the environment is relaxed and the individual feels comfortable, they will be more open to responses. Having a meeting with your supervisor regularly, throughout the year might reduce your anxiety. Discussions relating to your aims, development, and career will allow you to become more familiar with your boss and develop a sense of trust with him/her. This will eventually lead to reduced stress and uncertainty about the performance appraisal meeting. For example, imagine two individuals: where one person speaks to their employee once in six months and another individual communicates with them once a week. The individual who speaks to their boss once a week will be more comfortable with communicating ideas, and feel more relaxed when they have meetings. They also might be open to more discussions as they would have developed a sense of trust with them.
If you are feeling anxious, then it is best to communicate these feelings to your boss. You can also initiate the discussion and do not be afraid to ‘take the lead’ at times and be honest. This is because you want your performance to be evaluated realistically and if you give a false impression of yourself then this could have negative consequences in the long term, for you and the organization. Appraisals will work better when communication is done well. This can be developed by having regular talks and once the formal appraisal will take place it will be more natural and productive. Remember this meeting is helpful to your own development, and all types of performance appraisals are effective if the purpose and delivery is effective. The entire process should be clearly explained and agreed upon.
For thoese who conduct appraisals, training on how to conduct a performance appraisal properly can be carried out. For example,understanding different approaches to appraisal (e.g. formal, informal, 360), knowing ways to reduce anxiety and fear for managers and employees and practicing skills for feedback. If managers and directors feel that appraisals do not work, then this attitude and behavior will negatively impact on the appraisal, which is why appraisal meetings need to be well-prepared.
A 360 appraisal is a development feedback for employees. The feedback on performance can come from anyone who works with the employee. For example, this might consist of co-workers, subordinates or managers. Other sources where the feedback might come from are external individuals, such as clients, and individuals who are not employees of the company. The employee can rate themselves also, this is known as self-assessment. The information can be used to make vital decisions within the organization, such as training or developmental needs.
Feedback can provide organizations and the employee with information relating to their performance. The appraisal can also be done anonymously and employees can provide feedback to their managers without feeling uncomfortable. Rather than just getting feedback from one individual, the employee is provided with an overview of their performance from many stakeholders. Strengths and weaknesses of the individual can be used to benefit the organization as specific developmental needs can be targeted. The questions asked on the performance appraisal should be specifically targeted to the individual’s job competencies.
A critical issue of 360 appraisals is confidentiality of information. Employees might be concerned about rating their superiors poorly and might fear that the information they provide might be used negatively against them in the future. The organization needs to ensure good communication with employees and encourage honesty and openness.
Performance appraisal is a method which is used by many organisations to evaluate the performance of an employee. A review of an employee’s performance is carried out either through rating scales, feedback or documentation and this provides the opportunity for communication to occur. Reading through some popular management articles in magazines and on the internet, some writers suggest that performance appraisal during an economic downturn is futile. They suggest that employees are lucky to have a job and that is the focus of the appraisal interview. This view is contrary to anecdotal and scientific evidence because research has shown that reviewing performance, if done properly, will lead to improved performance and willingness for the employee to remain with the organisation.
By reviewing an employee’s performance at regular intervals, the organisation is able to evaluate which areas of development or training are needed for an employee. Performance appraisal will also help the organisation assess what they can do in order to assist an employee reach their maximum capacity in performance. For example, if an employee is not performing well in a certain area, such as presentation skills, it might be because the organisation has not provided the employee with the opportunity to practise this skill. The organisation can assist the employee in their performance by providing them with the opportunity to perhaps carry out more presentations, or they can provide some developmental advice, such as practise speaking during meetings.
Performance appraisal is also about ensuring that the employee is on track. By setting goals which are specific, measurable, achievable, realistic and setting a time frame for their realisation (SMART goals), organisations can improve and monitor the performance of employees. Ensuring that employees feel valued and that the organisation cares for their performance by recognising achievements, will at least sustain current performance and can result in increased performance. Performance appraisal is important for making the organisation attractive to current employees as well as future employees.
Economic downturns come and go. As they end, more jobs become available and employees will be provided with more job opportunities. At that point in the future, it might be difficult to retain employees. Performance appraisal systems can help to prevent employees from leaving the organisation unnecessarily.
In summary, performance appraisal systems are not futile in any economic situation. They allow organisations to effectively monitor employee’s developmental needs, they are able to assist employees reach their maximum performance and set appropriate targets and goals for them. All organisations want employees to perform well, and this can be done effectively by carrying out performance appraisals.
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