Performance appraisals (PowerPoint)

							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