Highlight Travel Limited

Performance Review Training

4 Step Approach to Conducting Successful
Performance Reviews

19th March 2011

 Test your knowledge …

True False
1. Performance feedback should be saved
up for the performance review. ____ ____

2. Pay increases should be discussed ____ ____

during a performance review.

3. The performance review is a “person to

job” comparison, so employee’s ____ ____
accomplishments should be compared
to the job requirements, not to other
employees.
Test your knowledge (cont’d.)
True False
4. The Line Manager/Supervisor should
evaluate personality “traits”as well as job ____ ____
related issues.

5. Improvement plans should always be

developed in collaboration with the ____ ____
employee.

6. The “degree of difficulty” or challenge of

assignments should be considered in the
____ ____
review process.
Overview
 What is a Performance Review?

An annual event culminating an on-going process of

performance feedback
It includes a written and verbal review of performance
during a specified intervals over a period of 12 months
Based on agreed objectives and job description (role
profile)
The review requires the Line Manager/supervisor to do the
following:
Observe and document the employee’s performance
during the covered period.

Complete a performance evaluation form, using specific

terms to describe how well the employee meets job
expectations.

Discuss the written evaluation with his or her supervisor

or manager prior to discussing it with the employee.
Discuss the evaluation with the employee.

Develop, in concert with the employee, a plan to help the

employee improve his/her performance and achieve
career goals.
 What is the Importance of a Performance
Review ?

It is an opportunity to:

 communicate with an employee

 discuss employee performance in relation to performance expectations

 formulate a performance improvement and career development plan

 improve team work

It is a key factor for some types of salary increases and consideration for
promotion
 What is the focus of a Performance
Review ?

Although a review of past performance is a primary

element of a performance review system, an equal
emphasis is placed on the future.

It has been demonstrated that better results can be

obtained when the Line Manager/supervisor and the
employee jointly set together specific performance goals
to be achieved, rather than when they merely discuss past
performance.
 Who does the Performance
Evaluation ?

The performance evaluation is typically written and discussed

with the employee by the employee’s immediate Line
Manager/supervisor because:

The Line Manager/supervisor is in the best position to have

the most accurate and complete knowledge of the
employee’s performance.

Improving and/or maintaining positive performance is the

responsibility of the Line Manager/ supervisor.
 What is reviewed?
A Performance Evaluation should be based on :

An assessment of work results

In addition to meeting certain “universal employee
obligations,” each job is unique in its requirements

An evaluation of the person-to-job fit

A key purpose of a review is to assist the employee to
improve his or her performance
 What is not reviewed?
The rule of thumb (A means of estimation made
according to a rough and ready practical rule, not
based on science or exact measurement) in
determining what to avoid in a performance evaluation
is anything that is not behavioral or that is not job-
related. High among the list of such factors are:

Personality

Attitude

Appearance
The ICEBERG ANALOGY

Behaviour is: What people ‘Say’ or

‘Do’

We can hear or see it.

‘Above the water-line’

‘Below the water-line’

Factors that influence Personality:

Historic life experiences that have
happened and we cannot change
them in someone, such as their
gender, religious, moral and
political beliefs, their education,
peer group, family and friends, the
culture they grew up in, or the
society they live in now etc.
Common Review Problems
Review is not tied to actual position responsibilities.
Lack of evidence supporting appraisal judgments.
Unfair appraisal: Bias & Leniency
Insufficient explanations
Vague, immeasurable, or unrealistic goals
Lack of subordinate “buy-in”
Poorly conducted meeting
Sending mixed messages
4 Step Approach
1. Data Collection:

A. Know the objectives/expectations

B. Collect Data on the Jobholder
2. Evaluate Performance:
A. Make the Process Fair
B. Avoid Rating Errors
C. Be Courageous
3. Write the Review:
A. Write Effective Comments
B. Develop SMART Goals
4. Performance Review Discussion:
A. Logistics
B. Employee Self Appraisal (optional)
C. Plan the Discussion
D. Conduct the Meeting
STEP 1: Data Collection
Collecting data about the employee’s performance that is
accurate, representative, objective and complete is the
most challenging part of the process.

The better a manager does at collecting the data the easier

it will be to complete and conduct the appraisal.
 1.A. Know the objectives/Expectations
Does the position description accurately reflect your expectations
of the job?
Define Success in the Position:
 Read the position description for the employee being evaluated and
consider:
 The most important ways a person doing the job should spend their
time.
 The three most important duties of someone in the position.
 How is success measured for the position.

This exercise provides a standard to measure performance against

expectations.
Before you can ask how well the person is doing you need to
determine:
 What you expect them to do?
 What expectations have been communicated to them?
1.B. Collect Data on the Jobholder
 Objective Data
 Countable, Quantifiable, Factual
 Examples: Sales, Financials, Projects Completed on
Time, Days Absent or Late, Calls Made per Day.
 Positives: Easy to Collect & Discuss, Inarguable,
 Negative: Data alone does not tell us whether
performance was good or bad – it needs to be
measured against a standard.
1.B. Data on the Jobholder (continued)
 Critical Incidents
 Situations in which an employee acted in a way that was
either especially effective or especially ineffective in
accomplishing parts of their job.
 Does anyone keep an error log for employees?
 Provides ideal information for appraisal:
 Reinforces positive performance – roadmap for success
 Curbs poor performance – what they need to do differently
 Concrete examples are the most effective and defensible
feedback method.
 Managers should inform employees of Critical Incidents
throughout the year – not just at appraisal time!
1.B. Data on the Jobholder (continued)
Behavioral Observations:
Management By Walking Around (MBWA)
 As you walk around observing your team on a daily
basis and interacting with them you get a thorough
understanding of how the person interacts with co-
workers and customers.
 Provides an abundance of data on each individual’s

successes and shortcomings.

 Make notes of your observations.
 Over time this will provide examples and evidence to

support your performance judgments.

 STEP 2: Evaluate the Performance
Before you complete the form ask yourself – What is the core
message that you want to communicate?
If you have not determined the precise message that you want
to send it’s unlikely that the team member will learn what you
want them to learn from the experience.
Start with the end in mind. Do you want to tell the Team
member....
They are performing well above expectations and you want to
see this level of effort continued.
They are performing at an average level and you are satisfied
with their level of effort.
They need to shape up or ship out!
 2.A: Make the process Fair
To conduct a fair, unprejudiced, and objective appraisal make
the following assumptions:
The purpose of the performance appraisal is to further the
organisation Mission by strengthening the performance of
every employee.
You will never have all of the facts and, in spite of that you must
still do the job.
People genuinely want to know what their boss thinks of their
performance.
People are capable of handling the truth about their
performance, even when that truth is unpleasant.
It is better to demand more of people than it is to settle for
whatever level of performance that they choose to give.
 2.B: Be Aware of Possible Rating Errors
Rating Errors: In spite of a manager’s good faith efforts to
maintain an impartial manner in writing every appraisal, errors in
judgment can arise.
Common Rating Errors:
Contrast Effect: Rating an individual in comparison to others
rather than against the job standards.
Recency Effect: Tendency of minor events that have happened
recently to have more influence on rating than major events of
many months ago.
Central Tendency: Inclination to rate people in the middle of
the scale even when their performance merits a higher or lower
rating.
Halo/Horns Effect: Generalisations from one aspect of an
individual’s performance applied to all areas of performance.
2.C: Be Courageous
A higher than deserved rating hurts the entire
Organisation:
Impacts well performing co-Team Members who
become de-motivated when they see that problems are
not dealt with.
Limits the organisation’s ability to meet its Mission
effectively.
Opens the door for lawsuits when the manager finally
gets tired of the poor performance, wants to terminate
the underperforming employee and there is no evidence
in the file to support the desired action.
STEP 3: Write the Review
With all of the data at hand and the resolve to avoid
rating errors and leniency you are now ready to write
the review.
You should try to make a comment for each
characteristic that is related to the position being
evaluated.
You should list key job related tasks and provide a
rating and comment.
3.A: Write Effective Comments
 When commenting on a characteristic you should
move from the general to the specific (1,2,3
approach).
1. Overall statement summarizing how the individual
did in the particular area.
2. More specific example supporting the overall
assessment from the data that you have collected.
3. Set a higher goal, or encourage the individual to
continue performing at the already fully acceptable
level, or set a specific target for needed performance
improvements.
3.A: Write Effective Comments (continued)
Highlight the Best Evidence
When performance is exceptionally good or bad in one
particular area you do not need to put every single
example on the form – but you should provide more
than one.
 Choose 2 to 3 of the best examples and write them in

the evaluation form.

 Additional examples can be given verbally during the

evaluation if needed.
3.A: Write Effective Comments (continued)
 Your comments should be able to answer an unrelated
third party asking the following:
 How do you know that?
 What led you to come to that judgment?
 Why do you feel that way?

 Can you provide an example?

If you cannot answer these questions it does not

necessarily mean that you need to change the rating it
just means that you have to do a better job of
supporting your assumption with evidence.
 3.B: Develop SMART Goals
Specific: A specific goal has a much better chance of being
accomplished. To set a specific goal you must answer the six “W”
questions: Who, What, Where, Why, When, & Which.
Measureable: Establish concrete criteria for measuring progress
toward the attainment of each goal that you set. Define what success
will look like. If you can’t measure it you can’t manage it!
Attainable: Does the person have the wherewithal to do what is
required to attain the goal? A goal needs to be a stretch that can be
accomplished with a real commitment.
Realistic: Not a synonym for “easy”, in this case it means “doable”.
Timely: A goal must be grounded in a time frame. Without a
timeframe a goal is just a wish.
3.B: Develop SMART Goals (continued)
Supervisor comments
 This space can be used to:
 Evaluate accomplishment of specific goals and objectives that
were set during prior year’s evaluation.
 Establish new goals and objectives for the upcoming year.
 Any other work related comments necessary to form the
employee’s understanding of performance & expectations.
Suggestions for Improvement
 This space can be used to offer specific improvement goals and
targets.
Personal Development/Training
 This space should be used to record any development/training
goals or plans which are required to address current deficiencies or
intended to assist employee in gaining more competencies which
would be beneficial to the department and/or the University in
general.
4. Performance Appraisal Discussion
4.A. Logistics:
Give the employee adequate time to prepare for the
discussion (at least a week’s notice is suggested).
Schedule a time that is convenient for both of you.
Do not schedule at the very end of the day where the need
to wrap things up will preclude extended discussion of
important points.
Hold the meeting in your private office – if your office is
not private then conduct the meeting in a conference
room.
Do not conduct the discussion in a non-business setting
such as a coffee shop.
 4.B. Employee Self Appraisal (optional)
When Advising the employee of the meeting you may want
to ask them to conduct a self appraisal, by requesting that
they answer the following questions:
Do you have any questions about what is expected of you on the
job?
What do you consider to be your most important
accomplishments in the past twelve months?
What job related areas do you view as strengths?
What job related areas do you view as weaknesses?
What do you feel you need to do to improve your performance?
What can I or the company do to help you improve?
Please tell me about any special compliments,
acknowledgements, awards, activities or recognitions that I
should be aware of.
Are there any goals that you would like to set for the future?
4.C. Planning for the Discussion
Review the completed performance appraisal form.
Review the performance documentation.
Review the job description.
Establish an agenda for the meeting.
Develop a discussion plan that focuses on 1-3 core
messages.
Studies show that employees retain little of the totality
of information communicated during a performance
appraisal discussion. What they often do remember is
irrelevant or just the opposite of what the appraiser
meant to say.
Possible Core Messages
Final Rating Most Likely Prospect Discussion Objective

Promotion Review opportunities

Exceeds or Growth in present assignment Make development plans

Succeeded in (vertical load)
Expectations
Broadened assignment Review possibility of extending
(horizontal load) responsibilities

No change in responsibilities Decide how to maintain current

level

Failed or Partially Performance correctable Plan correction / gain committment

Met
Expectations
Performance uncorrectable Consider reassignment and/ or
prepare for termination
4.D. Conducting the Meeting
Open the discussion by laying out the agenda for the
meeting.
Allow the employee to discuss their self appraisal first
– putting the conversational ball in their court.
Confirm and discuss the areas of agreement prior to
moving to other items where there may be
disagreement.
Discuss core message(s) with the employee.
Confirm final rating
Wrap up meeting by summarizing the key points that
were discussed.