Understanding Performance Appraisals

Understanding Performance Appraisals

copyright© 2012 CPE HR, Inc. All rights reserved

Your Host

Linda Robinson, PHR

Training & Development Manager, CPEhr

20+ years of HR and managerial experience in hospitality, food & beverage, gaming and manufacturing industries


Why Appraisals?

Measures performance against previously clearly defined goals Reduces discrimination and bias

Provides productive coaching Confirms company goals and employee’s

value Allows employee to grow through new goals

Provides an opportunity to rewardcopyright© 2012 CPE HR, Inc. All rights reserved

When to Conduct Appraisals

The first evaluation: 30-90 days

Annually on anniversary date

PIP

“Mini” appraisals Always document


How To Prepare

Starts with the job description Defines basic qualifications

Describes minimum expectations

Establishes goals


Measuring Performance

Basic job standards

Individual performance standards

Department goalscopyright© 2012 CPE HR, Inc. All rights reserved

Effort, Results, Knowledge

Effort- measures HOW work is done and involves observation and documentation of behavior

Results- measures WHAT work is done and involves documentation of results

Knowledge- measures specific knowledge gained and involves documentation of application of gained knowledge


Criteria Checklist

• Job Knowledge• Attendance• Communication (oral/written)• Interpersonal Skills• Dependability• Planning & Organization• Initiative copyright© 2012 CPE HR, Inc. All rights reserved

Gathering the Facts

Ongoing process by managers: Observations

Communications

Reports and paperwork•Signed documentation in files

•Recognition documented and placed in employee files


Objective and Specific

Use facts, not opinions

Focus on behavior as it applies to job performance and company policy

Be specific in observations


Fact or Opinion?

“Tom has a bad attitude”


Fact or Opinion?

“Sam tried to solve the late shipment problem by reviewing all incidents and

talking to shipping personnel, truck drivers, and customers”


Fact or Opinion?

“Maria is an employee I can count on. She has the potential to go far”


Be Specific Vague: “I really like the way you handle the

phones.”

“You could do a better job”

Specific: “When you answer the phones you are always polite and speak clearly.”

“The phone is to be answered by the second ring” (and then give reasons)


Rating Systems

Numerical rating scales Quantitative

Descriptive rating scales Qualitative

MBO

BARS copyright© 2012 CPE HR, Inc. All rights reserved

Pitfalls

Most recent events Halo/Horn effect Similar to me/different than me Competitive rating Leniency error/central error Cultural noise “Old-timer” biascopyright© 2012 CPE HR, Inc. All rights reserved

Preparation:The Employee’s Role

Self evaluation 2 weeks in advance

Sense of teamwork

Sense of “control”


Preparation:The Manager’s Role

Review pertinent records and materialAsk other managers and supervisors for

their opinions—if appropriateNotify employee of time and place


Legalities Considerations

Communicate job expectations from the very beginning

Keep up-to-date job descriptions Give employees the opportunity to note their

comments on their evaluationsMake no promises/watch your language copyright© 2012 CPE HR, Inc. All rights reserved

Honesty is the Best Policy

Rebecca has four employees. Jan generally does outstanding work, Cindy does good work, Art does good work and John is well below average. At review time she rates them as:

Jan - Outstanding Cindy - GoodArt - Excellent John - Satisfactory


Honesty (cont.)

John’s work gets worse, not better and Rebecca finally gets fed up and fires him. A month later he files a lawsuit. His lawyer says that Rebecca fired John because he is over 40 and that Rebecca’s reason stated is a pretext.

Can Rebecca prove her decision to fire John?


Honesty (cont.)

Cindy finds out that Art, doing the same quality of work as she has done, receives an “excellent” rating at his review, while she only receives “good”.

How do you think this will impact Cindy’s future performance?


Opening Comments

Establish a relaxed, professional meeting and get to the point

Explain how the interview will proceedEncourage participationcopyright© 2012 CPE HR, Inc. All rights reserved

Joint Assessment

For a satisfactory performance, offer praise and point out a few areas in which there could be improvement, if any

For differences of opinion, try to reach some level of agreement with the employee

Employee must “own” all aspects of the evaluation for it to be effective


Appraisals Are Teamwork

Together go over goals from last evaluation-what has been achieved?

Determine whether goals have changed along the way

Have employee clarify any statements you don’t understand


Setting New Goals

Realistic, measurable, observable Specific steps to take to improve or build

How much improvement is expected

Options if problems occur

Time frame (other than next review)

Mutually agreed uponcopyright© 2012 CPE HR, Inc. All rights reserved

Closing the Meeting

Summarize what you and the employee have agreed upon--BE CLEAR!

Target goals and dates

Sign the form

Thank the employee and express your desire to work with the employee to achieve these new goals


Special Situations

The employee who is failing This should not be a surprise Encourage the employee to talk Clarify expectations Set goals for success (PIP) Clearly define consequences


Special Situations (cont.)

The angry employee Diffuse employee—allow to vent

Remain calm, don’t take criticisms personally

Use facts and specifics only

Coach for solutions


Special Situations (cont.)

The employee who wants too much

Discuss compensation

Should never be expected

Must demonstrate ability

Make no promises

Discuss future growth plan


Common Mistakes

Spending more time on performance appraisal than on performance PLANNING or ongoing performance communication

Comparing employees to each other

Forgetting appraisal is about improvement, not blame


Common Mistakes

Believing a rating form is objective and impartial

Cancelling or postponing meetings

Thinking that all employees and all jobs should be assessed in the same way with the same procedure

Surprising employees during appraisalscopyright© 2012 CPE HR, Inc. All rights reserved

The Next Step…

Measure and observe

Communicate

Motivate

Coach and mentor

Document

We WANT our employees to succeed!


Remember…

People WANT to know where they stand

They will make great effort to improve IF they understand what is expected

Consistent guidance as they strive to accomplish the goals is important

Appreciation of their efforts is a powerful motivator


HRCI Credit

Program ID: ORG_PROGRAM - 127441

Title: Understanding Performance Appraisals

Start Date: October 25, 2012

End Date: October 25, 2012

Recertification Credit Hours Awarded: 1.0

Specified Credit Hours: General

Copyright © 2012 CPE HR, Inc. All rights reserved

Understanding Performance Appraisals

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