Performance Evaluations. Performance Evaluations. Preparation. Definition. Two General Types. Behavioral. traits 1/21/2010.
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1 Performance Evaluations Performance Evaluations Preparation By Susan Savage, CVT, CVPM, BS Definitions Types Traits Evaluators Definition Consists of assessing an employee s performance (judging the employee by helping employees understand how they are doing in relation to objectives and standards) and Providing that employee with feedback (counseling the employee to assist in their training and personal development) Two General Types Objective: aka results appraisals that are based on facts and are usually numerical These: measure results Are harder to challenge legally Subjective: based on manager s perceptions of an employee s traits and/or behaviors traits Attitude Initiative Leadership Validity is in question because of the evaluators bias can affect the ratings Is/Are the evaluator(s) trained properly and consistently for this type of judgment Behavioral Measure specific, observable aspects of performance. i.e. being on time for work( example for police officer) BARS: behaviorally anchored rating scale which rates employees according to scales of specific behaviors (5 or 3 scale rating)be specific and define each tier. Once again, are the evaluators trained consistently for each of these scales 1
2 Example of 5 tier rating system Exceeds expectations 1. Exceeds expectations 2. Above average 3. Average 4. Below average 5. Needs improvement Employee consistently exceeds expectations or performs well above expected levels: Contributes to team and individual efforts Encourages new and innovative thought processes and significantly contributes to the productivity or profitability of the organization Above average The employee consistently performs above average: Contributes to team and individual efforts and almost always completes work on time and in order Displays effective communication skills and contributes to the productivity of the organization Average The employee consistently performs at the level of similarly assigned peers: Completes most assignments in a timely and efficient time frame Often participates in team development activities and occasionally contributes to the productivity of the organization Below Average The employee sometimes performs consistently, but fails to meet work goals or objectives Some improvements needed in fulfilling work roles Sometimes communicates effectively but needs to improve communication and participation in team and individual activities in the organization Needs Improvement The employee is not performing at an acceptable level Needs additional skills training and more effective communication with peers and team members employee s work often incomplete or contains errors 2
3 Or the Delta Society way 2 1 Not ready Not appropriate Who Should Make Performance evaluations? Peers and subordinates: after all they may see different aspects of the employee s performance Customers and clients: this works well for restaurants and hotels Self appraisals: the employee rates themselves. Bias toward the favorable knowing this is going into your personnel file 360-degree assessment: appraisal by everybody Employees are appraised by their Managerial supervisors Peers Subordinates Sometimes clients Providing several perspectives Forced Ranking: grading on a curve All employees with a business unit are ranked against one another and grades are distributed along some sort of bell curve Top performers: (top 20%) are rewarded with bonuses and promotions) Worst performers (bottom 20%) are rehabilitated or dismissed) Every year 10% of GE s managers are assigned the bottom grade and if they do not improve, they are asked to leave Results of forced ranking: Encourages managers to identify and remove poor performers and also provides a structured predetermined compensation curve. However, if the system is imposed overnight without preparation; it can produce shocks to morale, productivity and loyalty. Also can cause legal ramifications Performance Evaluation Errors Stereotyping: because someone is older they are slower Halo effect: a manager gives an employee the same rating on all dimensions even if the performance is good on some dimensions and poor on others. 3
4 Performance Evaluation Errors Overcoming PE Errors Leniency Tendency Evaluating all persons as outstanding Strictness tendency Opposite of leniency where there is a bias toward rating all individuals at the low end of the scale and to overbearing and critical Average tendency Evaluate every one as average regardless of differences in performance BARS Developed from critical incidents pertaining to job performance. Each job performance scale is anchored with specific behavioral statements that describe varying degrees of performance. This creates raters more accurately evaluating an employee s performance by relating performance to specific incidents examples Breaking the job down into smaller dimensions: Technician position Equipment maintenance Client relations Client education Patient care Project scheduling Example cont. 1: have no plan or schedule of work and no concept of realistic due dates 2. Have a sound plan but neglect to keep track of target dates or to report schedule slippages or other problems as they occur 3. Make a list of due dates and revise them but get frequently surprised by unforeseen events 4. Usually satisfy time constraints with time and cost overruns coming up infrequently 5. Develop a comprehensive schedule, observe target dates and update the status of operations relative to plans making schedule modifications as quickly as necessary. suggestions Take a problem- solving approach, avoid criticism and treat employees with respect Be specific in describing the employee s present performance and in the improvement you desire. Get the employee s input Perceptions of Performance Evaluations 1. A time to speak to subordinates about an unpleasant topic 2. Ends up being sugar-coated 3. Point in time: not a continual picture of coaching, counseling, training, developing and communicating throughout the year 4
5 Results in: Many problems Unproductive work force Diminishing overall profitability What should be accomplished or working backwards to get to the beginning Identify further training and development needs Quality and productivity that is achieved Recruitment and forecasting needs Evaluation used for increase in: Retention Productivity Moral Ability to handle change more efficiently What does implementing an effective performance evaluation accomplish? 1. Benefits managers and will actually take up less of their time 2. Benefit employees through consistent feedback and on-going learning opportunities 3. Benefit the organization through achieved goals and increased profitability Designing an Effective Review System We must invest in our human capital on a daily basis 1. Involve top management and design a system that will match the needs and culture of the organization 2. Involve employees at all levels of the organization: use a survey to help determine the elements that employees are interested in. Then combine with the company s overall goals and objectives 3. Identify members that are responsible for the design and implementation 5
6 Designing an Effective Review System 4. Make certain it adheres to the organizational goals and missions 5. Train all employees in the programs objectives, purpose and uses 6. Evaluate the process 7. Provide continuous training and improvement Types of Performance Appraisals Self directed Peer review 360 degree Self - Directed Purposes of self-direct PE Only managers contribute to the review Employees do not find this motivating Worry: employees rate themselves too high being too lenient Often the result is employee is too hard on themselves Clarify work goals and objectives Help point out areas of interest Point out where more training is needed Employee has the opportunity to express to managers where they want to expand their knowledge or training Can allow more trust and support in their managers Can change the role of manager to coach or mentor vs. critical analyzer Reduction of work assigned to manager advantages Helps to motivate employees Provides an encouraging environment Provides valuable insight about an employee s subjective experiences on the job Enable more collaboration and teamwork Sets up an environment of trust and partnership May highlight areas of achievement or deficiency the manager may not have considered Clarifies goals and objectives for the employee/manager May reveal areas of improvement or training from the employee s perspective. disadvantages Employees may under- or overrate their own performance Can result in management attitude that they don t have to put in time and effort for the review process: however, my suggestion is to fill one out in advance also on that employee and explore the differences Employee may not recognize their own deficiencies. 6
7 Peer review systems advantages Enlist the support of multiple workers to review the employee s performance : typically 2-6 They will also help set goals and objectives for the employee Provide more feedback from multiple perspectives providing an employee with greater depth and focus about their performance Employees are more willing to accept this as an accurate measure of their performance Less subjective Encourage a team-oriented environment and greater worker participation disadvantages Often take more time to complete and mastering of a schedule for completion Training is needed for fair evaluations Employees may resist these fearing those who dislike them will rate them poorly: this can be overcome by allowing them to select a portion of their own peer review team 360 degree The most comprehensive of all types of PE Feedback is obtained from every level of the organization Self-reviews Peer reviews Manager reviews Advantages of the 360 review Provides direct feedback to the employee in an encouraging environment Involves more collaboration and teamwork which helps to promote comprehensive and an objective review of total work performance Involves less subjectivity when more people participate in the review process Advantages continued of the 360 Provides more opportunities for communication between employees and other members of the team Provides backup for the manager s review Enables employees to provide management with feedback Divides the work involved in the PE process Helps build an organizational culture that supports the PE culture 7
8 Disadvantages of the 360 Components of Training Requires extensive training for all members of the team who will take part in the process Requires more time than other forms of review since multiple people p are involved It will invite too much subjectivity if only members of a department are invited to partake of the review Involves more paperwork that a standard review process. Training materials should include an outline of the administrative processes involved in performing the PE. Should include close examination and explanation of the forms used for the process Manager s should be coached to identify primary responsibilities of subordinates job roles Components of Training Management and employees should undergo training that helps them create specific and measurable goals. Training should include an outline of effective performance review phrases and how to provide constructive criticism Managers should understand the process from start to finish and should recognize the time lines they need to follow to complete the PE in the time allocated (checklist) Components of Training Managers should understand how to set standards for performance and should recognize what factors motivate employees Managers must understand the forms necessary for completing the PE process Anyone that provides feedback (employees, clients, supervisors) must also understand the review process and forms necessary Components of Training Training should be conducted routinely and updated when changes to the review process are made Managers and employees should all understand the purpose of the PE process and SUPPORT it. Past Experiences Formal: point in time None On-line evaluation done by peers 8
9 Summary of the PE process Identify the main vision and objective Design and implement The PE form When to evaluate What to evaluate Defining job descriptions How to rate PE training Management preparation Employee preparation Summary of PE Process Review discussion Communicating feedback Addressing coaching and career development Creating performance improvement plans documentation Follow up/progress reports Acknowledgements: Management: A practical introduction, third edition (Kinicki/Williams) Management, seventh edition by Richard Daft 199 Pre-Written Employee Performance Appraisals: The Complete Guide to Successful Employee Evaluations and Documentation by Stephanie Lyster and Anne Arthur 9
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