Chapter 24: Performance Appraisal

*Types of Performance Appraisal Tools* - *Trait rating scales:* A method of rating a person against a set standard, which may be the job description, desired behaviors, or personal traits. Probably the most widely used of the many available appraisal methods - *Job dimension scales:* rates the performance on job requirements - *Behaviorally anchored rating scales:* rates desired job expectations on a scale of importance to the position

- *Checklists:* rates the performance against a set list of desirable job behaviors - *Essays:* a narrative appraisal of job performance - *Self-appraisals:* an appraisal of performance by the employee - *Management by objectives:* employee and management agree upon goals of performance to be reached - *Peer review:* assessment of work performance carried out by peers

*Avoid the "Recency," "Halo," and "Horns" Effects* - *The recency effect* occurs when recent issues are weighed more heavily than past performance. - *The halo effect* occurs when the appraiser lets one or two positive aspects of the assessment or behavior of the employee unduly influence all other aspects of the employee's performance.

- *The horns effect* occurs when the appraiser allows some negative aspects of the employee's performance to influence the assessment to such an extent that other levels of job performance are not accurately recorded.

*Effective Performance Appraisals—(cont.)* - Employees must know in advance what happens if standards are not met. - Employees must know how information will be obtained to determine performance level.

- Appraisers should be those who directly supervise the employee. - The employee's past experience with performance appraisals (negative or positive) will affect the outcome.

*Reflective Practice or Clinical Coaching* - In reflective practice or clinical coaching, the manager or mentor meets with an employee regularly to discuss aspects of his or her work.

- Both individuals determine the agenda jointly, with the goal of an environment of learning that can span the personal and professional aspects of the employee's experience.

Strategies to Ensure Performance Appraisal Accuracy - Develop self-awareness regarding own biases and prejudices. - Use appropriate consultation. - Gather data adequately over time. - Keep accurate anecdotal records for the length of the appraisal period.

- Collect positive data and identify areas where improvement is needed. - Include employee's own appraisal of his or her performance. - Guard against the halo effect, horns effect, central tendency trap, and Matthew effect.

Day-to-Day Feedback

- Day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach.

*Factors Influencing Effective Performance Appraisal* - Appraisal should be based on a standard. - The appraisal tool must adequately and accurately assess job performance. - Employee should have input into development of the standard.

- Employee must know the standard in advance. - Employee must know the sources of data gathered for the appraisal. - Appraiser should be someone who has observed the employee's work. - Appraiser should be someone who the employee trusts and respects.

Positive Feedback - Some employees look on their annual performance review as an opportunity to receive positive feedback from their supervisor, especially if the employee receives infrequent praise on a day-to-day basis.

- Indirectness and ambiguity are more likely to inhibit communication than enhance it, and the employee is left unsure about the significance of the message.

*Effective Performance Appraisals* - The performance appraisal is more likely to have a positive outcome if the appraiser is viewed with trust and professional respect. - Avoid surprises in the appraisal conference.

- The effective leader coaches and communicates informally with staff on a continual basis, so there should be little new information at an appraisal conference. - They must be based on a standard that all employees are held accountable to, and this standard must be communicated at the time of hire.

*Performance Appraisal* - The employee performance appraisal is a sensitive and important process, requiring much skill. - Performance appraisals are used to determine how well employees are performing their job. Therefore, appraisals measure actual behavior and not intent.

- When accurate and appropriate appraisal assessments are performed, outcomes can be very positive. - Because of past experiences, performance appraisal interviews are highly charged, emotional events for most employees.

Pitfalls in Performance Appraisal

-Subjectivity is always a factor. -Tendency to be lenient. -Inadequate record keeping. -"Recency effect."

Important Reminder

A performance appraisal wastes time if it is merely an excuse to satisfy regulations and the goal is not employee growth.

Developing Standards of Performance Appraisal

If employees believe the appraisal is based on their job description rather than on whether the manager approves of them, they are more likely to view the appraisal as relevant.

360-Degree Evaluation

The 360-degree evaluation includes an assessment by all individuals within the sphere of influence of the individual being appraised.

Coaching as Part of the Performance Appraisal Process

The effective manager and astute leader are aware that day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach.