How to conduct effective
performance appraisals
by Toronto Training and HR
April 2011
3-4 Introduction to Toronto Training and HR
5-6 Definition
Contents 7-8
9-15
Drill A
Aims of regular performance
appraisals
16-19 Case studies A & B
20-21 Goals and standards for performance
22-23 Designing a performance appraisal
system
24-27 Different methods to evaluate
performance
28-29 Golden cycle of performance
management
30-31 Types of performance appraisal
32-34 Problems with performance appraisal
35-36 Areas to improve; collaborate don’t
assassinate
37-39 The performance appraisal interview
40-41 Drill B
42-46 Points to bear in mind
47-50 Case studies C & D
51-52 Conclusion and questions
Page 2
Introduction
Page 3
Introduction to Toronto Training
and HR
• Toronto Training and HR is a specialist training and human
resources consultancy headed by Timothy Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR are:
- Training course design
- Training course delivery
- Reducing costs
- Saving time
- Improving employee engagement & morale
- Services for job seekers
Page 4
Definition
Page 5
Differences between
Performance Appraisal and
Performance Management
Performance Appraisal: Performance Management:
Setting work standards, assessing An integrated approach to ensuring
performance, and providing that an employee’s performance
feedback to employees to motivate, supports and contributes to the
correct, and continue their organization’s strategic aims.
performance.
Page 6
Drill A
Page 7
Drill A
Page 8
Aims of regular
performance appraisals
Page 9
Aims of regular performance
appraisals 1 of 6
Check that the needs of the employee and
employer are being met
Confirm the employee’s understanding of company
expectations
Increase the employee’s knowledge of his or her
personal strengths
Provide an opportunity to discuss areas for
improvement
Foster a spirit of co-operation and teamwork
Page 10
Aims of regular performance
appraisals 2 of 6
WHAT CAN THEY ACHIEVE
performance measurement - transparent, short,
medium and long term
clarifying, defining, redefining priorities &
objectives
motivation through agreeing helpful aims and
targets
Page 11
Aims of regular performance
appraisals 3 of 6
WHAT CAN THEY ACHIEVE
motivation though achievement and feedback
training needs and learning desires - assessment
and agreement
identification of personal strengths and direction -
including unused hidden strengths
career and succession planning - personal and
organizational
team roles clarification and team building
Page 12
Aims of regular performance
appraisals 4 of 6
WHAT CAN THEY ACHIEVE
organizational training needs assessment and
analysis
appraisee and manager mutual awareness,
understanding and relationship
resolving confusions and misunderstandings
reinforcing and cascading organizational
philosophies, values, aims, strategies, priorities,
etc
Page 13
Aims of regular performance
appraisals 5 of 6
WHAT CAN THEY ACHIEVE
delegation, additional responsibilities, employee
growth and development
counselling and feedback
manager development - all good managers should
be able to conduct appraisals well - it's a
fundamental process
Page 14
Aims of regular performance
appraisals 6 of 6
Satisfactory—Promotable
Satisfactory—Not Promotable
Outcomes of Appraisal
Interviews
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
Page 15
Case study A
Page 16
Case study A
Page 17
Case study B
Page 18
Case study B
Page 19
Goals and standards for
performance
Page 20
Goals and standards for
performance
Guidelines for
Effective Goal
Setting
Assign
Assign Assign
Challenging Encourage
Specific Measurable
but Doable Participation
Goals Goals
Goals
Page 21
Designing a performance
appraisal system
Page 22
Designing a performance
appraisal system
Gaining support for the system
Choosing an appropriate rating instrument
Selecting raters
Determining timing
Ensuring fairness
Page 23
Different methods to
evaluate performance
Page 24
Different methods to evaluate
performance 1 of 3
Peer reviews
Self evaluation
Upward appraisals
Page 25
Different methods to evaluate
performance 2 of 3
TYPES OF PERFORMANCE APPRAISAL
Formal annual performance appraisals
Probationary reviews
Informal one-to-one review discussions
Counselling meetings
Observation on the job
Skill- or job-related tests
Assignment or task followed by review, including
secondments (temporary job cover or transfer)
Page 26
Different methods to evaluate
performance 3 of 3
TYPES OF PERFORMANCE APPRAISAL
Assessment centres, including observed group
exercises, tests presentations, etc.
Survey of opinion of others who have dealings
with the individual
Psychometric tests and other behavioural
assessments
Graphology (handwriting analysis)
Page 27
Golden cycle of
performance management
Page 28
Golden cycle of performance
management
Goal setting and planning
Ongoing feedback and coaching
Appraisal and reward
Page 29
Types of performance
appraisal
Page 30
Types of performance appraisal
Graphic rating scale
BARS( Behaviourally Anchored Rating Scales)
Alternation ranking
Forced distribution method
Critical incident method
Narrative Forms
Paired comparison
MBO (Management by Objectives)
Page 31
Problems with
performance appraisal
Page 32
Problems with performance
appraisal 1 of 2
Unclear standards
Halo effect
Central tendency
Leniency or strictness
Bias
Horns Effect
Recency Error
First Impression
Fixed Impression
Page 33
Problems with performance
appraisal 2 of 2
How to Avoid
Appraisal Problems
Control
Know Use the Train Keep
Outside
Problems Right Tool Supervisors a Diary
Influences
Page 34
Areas to improve;
collaborate don’t
assassinate
Page 35
Areas to improve; collaborate
don’t assassinate
Emphasize the positive with the negative
Couch your criticism in terms of the shared greater
good rather than framing it as a personal
indictment
Enlist your employee as an ally in troubleshooting
a vexing issue
Offer the employee flexible options in resolving a
shortcoming
Page 36
The performance appraisal
interview
Page 37
The performance appraisal
interview 1 of 2
How to conduct the interview
Checklist
How to handle a defensive appraisee
How to constructively criticize the appraisee
How to ensure the interview leads to improved
performance
How to handle a formal written warning
Page 38
The performance appraisal
interview 2 of 2
GIVING NEGATIVE FEEDBACK
Why candour is important
The importance of documentation
The importance of the correct wording
Encouraging employee feedback
Ending on a positive note
Page 39
Drill B
Page 40
Drill B
Page 41
Points to bear in mind
Page 42
Points to bear in mind 1 of 4
Reduce surprises
Look back before you look ahead
Know the effects of documentation
Avoid extremes
Get employees involved
Separate performance and pay increase
discussions
Know how to use the performance review for
disciplinary purposes
Page 43
Points to bear in mind 2 of 4
SELF-EVALUATION
Address your overall performance/track record for
the review period
In what areas do you need additional support,
structure and direction?
What are your goals for the next year or next
review period?
Page 44
Points to bear in mind 3 of 4
WATCH YOUR LANGUAGE
Avoid discriminatory references
Avoid the term “attitude”
Use “for example” frequently
Document how the supervisor has tried to help the
employee meet performance standards
Page 45
Points to bear in mind 4 of 4
REVIEW TIMELINE
One month before
Two weeks before
One week before
On the day
Three to five days after the review
Page 46
Case study C
Page 47
Case study C
Page 48
Case study D
Page 49
Case study D
Page 50
Conclusion & Questions
Conclusion
Summary
Questions
Page 52