Performance Appraisal MBA

Dr Eleni Tsitsirigou February 2012

Performance Management
A process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success.

Set Goals

Communicate

Evaluate

Observe

Why Manage Performance?

To reach organizational mission and goals

Encourage and reward behaviors aligned with organizational mission and goals Curb or redirect non-productive activities

The Big Three

Absenteeism and Tardiness Performance Deficiencies Misconduct and Rule/Policy Violations

Performance Appraisals Why are they so important?

- Performance

reviews are an integral part of the employees on the job experience. - When fair, accurate and conducted on a regular basis appraisals can stimulate employee morale, which can lead to more efficient business operations and discourage litigation. - When performance reviews are not fair and reasonable, generating inaccurate or incomplete appraisals, they can have the opposite effect.

What do Employees Expect?

Clear expectations
Positive/constructive feedback on a regular basis Involvement in goal setting

Be treated fairly and consistently

Sharing of information and resources Job/career enrichment opportunities

Planning for the Process

Review employees job description

Understand the performance measurement system Review notes from the year
Understand employee expectations

Rating Scale

4 - Excellent (Exceeds Standards) 3 - Good (Fully Meets Standards)

2 Acceptable (Usually Meets Standards)

1 Unsatisfactory (Fails to Meet Standards)

Excellent (Exceeds Standards)

Clearly considered to be exceptional performers. Consistently exceed the communicated expectations of the job function, responsibility or goal. Demonstrate unique understanding of work beyond assigned area of responsibility. Identify needs and provide unique, innovative and workable solutions to problems. Achievements and abilities are obvious to subordinates, peers, managers and customers.

Good (Fully Meets Standards)

These employees are on track and fully achieve expectations. Independently and competently perform all aspects of the job function, responsibility, or goal. Performance consistently meets the requirements, standards, or objectives of the job. Occasionally exceeds requirements. Recognizes, participates in, and adjusts to changing situations and work assignments.

Acceptable (Usually Meets Standards)

Generally meet expectations required for the position. Competently perform most aspects of the job function, responsibility or goal. May require improvement in one or two areas of consistent weakness. Employee requires coaching in a weak area or may need additional resources or training to meet expectations.

Unsatisfactory (Fails to Meet Standards)

Employees with this rating fail to satisfactorily perform most aspects of the position (or function). Performance levels are below established requirements for the job. Employee requires close guidance and direction in order to perform routine job duties. Performance may impede the work of others and the unit. A performance improvement plan must be submitted to OHR.

Scheduling the Meeting

Notice
Location Self-evaluation
Appropriate form Comments

Supervisory approval

Filling out the Form

Review notes Behaviors vs. value judgments Align categories on form with employees job responsibilities Optional categories Set goals

Setting Effective Goals

Quick Tips
S.M.A.R.T. Goals
Specific Measurable Achievable/Agreed Upon Relevant Time-bound
Set Goals Communicate

Aligned
Adjustable
Evaluate Observe

Common Mistakes
Labeling Recency Central Tendency Leniency - Halo Effect Constancy Similarity

Conducting the Meeting

Review rating system
Discuss employees self review Let employee talk

Be aware of all three parts of the messages you send:

Words Tone Body Language

Stay focused on performance