Effective Performance Appraisals

Annual Advancement Academy, Washington, DCDave Smittle

Director of Advancement ServicesOhio Northern University

Wednesday, July 25, 2007, 3:45-5:00 p.m.

Session Description...

This session will cover...How the performance appraisal can be a vital management toolImportance of documenting performance within institutional policy/procedure

Setting performance goalsConducting the appraisal meeting itselfPossible problems with traditional methodsAlternative methods becoming more popularWhat the “experts” are saying/recommending...

Performance Appraisal as a Vital Management Tool...

(True or False?)1.) Performance appraisal is as important for good performers as for weak ones... True.

Quiz #1

3.) Performance appraisals should be based on performance, not the individual’s personality or style... True.

2.) It’s all right to give a mediocre performer a good review, as long as you don’t give the person a promotion... False.

Performance Appraisal as a Vital Management Tool...

Institution policy should require supervisors to provide each employee with an objective, standardized performance appraisal on a scheduled basis.Formal, objective performance appraisals are the best way for an institution to get a clear picture of the strength of its employees.Set the best and fairest basis for rewarding strong performers.Develop training or coaching programs for those who need help.

Performance Appraisal as a Vital Management Tool, con’t.

Identify marginal or poor performers who will have to reach clearly stated goals over time.Allow supervisors to improve their own management skills, and, also, the performance and morale of their employees.Keep employees informed on how they’re really doing and how they can improve.These help create an institution-wide system of motivation and rewards based on performance.

Performance Appraisal as a Vital Management Tool, con’t.

Who Benefits?The Organization!

Communicates institutional goalsProvides administrators with decision-making information on human resource mattersProvides an objective basis for raises, promotions, training and other personnel actionsBuilds stronger working relationshipsImproves overall institutional productivityProvides documentation for inquiries on promotion policies or individual claims of discrimination

Performance Appraisal as a Vital Management Tool, con’t.

Who Benefits?The Supervisor!

Builds their management skillsDevelops and improves rapport with employeesIdentifies and rewards high performanceIdentifies performers needing improvement for coaching or training opportunitiesImproves individual employee productivityIdentifies general training needsDemonstrates fairness to employeesImproves group morale

Performance Appraisal as a Vital Management Tool, con’t.

Who Benefits?The Employees!

Aware of how they’re doing over timeProvides recognition for accomplishmentsAllows for two-way communication regarding goals and performanceEncourages taking responsibility for their performance and progressHelps set goals and direct efforts towards meeting themProvides opportunities for career development and improvementAssures fair individual evaluations

Performance Appraisal as a Vital Management Tool, con’t.

Examples from Ohio Northern...Administrative Handbook Policy

Evaluation and Performance Appraisal (1/29/79)The performance of all full-time executive and administrative employees of the University shall be appraised periodically by his/her immediate supervisor. The appraisal is to be in writing, recorded on the evaluation form and discussed with the individual whose performance is being evaluated.The purpose of the appraisal is to:

motivate individual employee achievement and to develop each individual to his/her full potential.Comment honestly and frankly on job performance and desired improvements.Recognize and comment on exceptional performance.Provide a basis for training and counseling employees.Provide a basis for salary adjustments, position changes or transfers.Establish performance expectations for the future.

Performance Appraisal as a Vital Management Tool, con’t.

Examples from Ohio Northern...Support Staff Handbook Policy

Performance AppraisalYour supervisor or department head will appraise your performance periodically, go over the appraisal with you, and send it to Human Resources where it becomes part of your permanent record.Performance appraisals help you by letting you know what your supervisor or department head thinks of the job you are doing.It tells you what your good points are and where and how you need to improve.It helps the University by showing which employees should be promoted, raised in pay or transferred to positions that will make better use of their abilities.

Zzzzzzzzzz......

Documenting Performance is Important...

Quiz #2(True or False?)

1.) A good supervisor is able to keep mental track of individual employee performance... False.

2.) Performance documentation should reflect the work performance and goals of individual employees... True.

Documenting Performance is Important...

Supervisors must document employee performance continuously in order to provide useful, accurate performance appraisals

As well as, provide a basis for disciplinary action or terminations, if necessary

Performance documentation should reflect the individual’s specific duties and goals

And, use the same standards and performance expectations for all who hold the same job

Documenting Performance is Important, con’t.

Document employee effort in incidents where the employee can control behavior, but not the situation; document employee results where the employee has control over those results.Make all performance documentation accurate, timely, consistent and complete.

Documenting Performance is Important, con’t.

Performance appraisals will provide a fair and objective tool by offering useful feedback to employees when they meet these standards:

Consistent!Use the same standards and performance areas for all people in the same job.

Personalized!Incorporate each employee’s progress toward common goals; relate these to indvidual goals.

Documenting Performance is Important, con’t.

Measurable!Use numbers to document accomplishments wherever possible.

Results-Oriented!Track results, such as number of jobs completed. In other words, is the employee accomplishing the main requirement of the job?

Effort-Oriented!Track dependability, attendance or ability to follow instructions when an employee can control personal behavior, but not the situation.

Documenting Performance is Important, con’t.

Accurate!Be specific and correct about incidents, dates, etc.

Timely!Focus on what happened during the appraisal period.

Behavioral!Focus on what actually happened, not on perceptions, thoughts or presumptions.

and, Complete!Draw conclusions supported by specific factual examples. Document these as part of the process.

Documenting Performance is Important, con’t.

Important Qualities on Which to Evaluate...Attendance Quality of WorkQuantity of Work Number of ErrorsNumber of Commendations EfficiencyNumber of Customer ComplaintsJob Skills Job AbilitiesJob Knowledge Policy ComplianceAttitude! Accuracy

Documenting Performance is Important, con’t.

Important Qualities, con’t...And, for those in managerial positions...

Ability to supervise othersAbility to evaluate othersAbility to motivate and lead othersAbility to meet deadlines

Setting Performance Goals...

Quiz #3(True or False?)

1.) It’s best for supervisors to set performance goals for employees, since they know best what has be done... False.

3.) Performance goals should reflect the best possible achievement under the best possible circumstances...

2.) Describing a goal as “Type error-free reports by deadline dates” is better than saying “Type all reports”... True.

True.

Setting Performance Goals...

Employee and supervisor should jointly develop written, prioritized performance goals which are measurable, observable and doable.

Often most lacking is that they are measurable!Performance goals let the employee know the expectation for their jobs and the standards they’re expected to meet.

Don’t assume they know!

Setting Performance Goals, con’t.

To be useful tools, goals should relate to specific duties and responsibilities and/or employee development. Action plans for achieving goals will help employees meet challenges and improve performance.

Setting Performance Goals, con’t.

Employee’s ability to meet performance goals is the basis for performance appraisals.

Rewards, discipline, and employee development programs should use the goals to measure against.But, can’t do this if goals are not in place!

Work with your Personnel Office for tips on how to properly set goals for your employees!

Conducting the Appraisal...

Quiz #4(True or False?)

1.) In a good appraisal review meeting, employees have opportunities to give their opinion and ask questions... True.

3.) A supervisor’s subjective opinions of an employee are as important in a performance appraisal as documented performance... False.

2.) Performance appraisals should avoid praising even excellent employees or they will start to slack off... False.

Conducting the Appraisal...

Plan the review meeting carefully, notifying employee in advance and setting aside enough time in a private, quiet place.During the meeting, the employee should review his/her own performance and progress.Present your appraisal fairly and objectively, focusing on positives before negatives and giving credit where it’s due.

Conducting the Appraisal, con’t.

Clearly state any performance problems.In plain language!

Make sure appraisals are objective, job-related and supported by documentation of achievements or performance needing improvement.

Do this consistently throughout the year so it will be available when annual performance review time arrives!

Conducting the Appraisal, con’t.

Maintain open discussion to avoid arguments and defensiveness.Agree on new, measurable goals and action plans.Document the meeting, including new goals and action plans.

Conducting the Appraisal, con’t.A Performance Appraisal Planning Checklist:Plan the Meeting...

Notify employee of date, time and place.Provide employee with blank appraisal form.Set date for return of employee’s self-appraisal.

Specify if they are to return it ahead of time or simply bring to the meeting!

Set aside at least an hour in a private, comfortable location.Arrange to meet without phone calls and other interruptions.Assemble and review the employee’s...

Job descriptionPast appraisalsPerformance goalsCritical incident logsDocumentation of performance

Conducting the Appraisal, con’t.Performance Appraisal Planning Checklist, con’t.

Prepare Performance Appraisal Form...Follow format.Be detailed and use specific examples.

• With written comments!Be sure appraisal is...

Job-relatedObjectiveGoal-relatedBased on performance and behaviorFree of personal likes and dislikesFree of stereotypesNot overly strict or lenientNot overly weighted by a single or recent incident

Develop specific areas where performance improvement is desired and set measurable goals for coming year.

Conducting the Appraisal, con’t.Responding to Employee Reactions

Employee Who is Failing:State the situation clearly.Emphasize performance with concrete examples.Make employee aware of consequences of poor performance.Encourage employee to discuss the problem.Coach employee to develop solutions to problem.Offer help, agree on an action plan.Set predetermined and frequent follow-ups to monitor progress.

Long-Term Employee:Show appreciation and don’t take for granted.Discuss something new (goals, accomplishments) each time.

Conducting the Appraisal, con’t.Responding to Employee Reactions

Employee Who Agrees Too Quickly:For some people, this is a way of avoiding a problem. Probe to see what their real feelings are.Make sure employee understands problem and consequences.Determine if agreement is sincere and emphasize steps for improvement.Establish process to follow up.

Angry Employee:Let employee blow off steam, but don’t respond.Listen and ask open-ended questions to identify the true nature of the resistance.State your point of view calmly.Don’t try to reach an agreement at this time if employee continues to be angry. Set a second meeting.

Conducting the Appraisal, con’t.Responding to Employee Reactions

Employee Who’s Just Getting by:Clarify standards and expectations.Ask open-ended questions and listen to identify feelings about the job.Reinforce strengths and mutually develop a plan for improvement.Establish process to follow up.

Employee Who Wants Too Much:Remind employee that raises are given for real merit at regular intervals according to institutional circumstances.Explain promotions reward performance over time, perhaps years.Make no promises, and don’t let employee infer any commitments.

Silent Employee:Ask open questions to encourage employee to talk(“What do you think of...” “What are your plans for...”).Listen and show interest.Do not feel obligated to speak just to fill silent pauses in conversation.

A Quick Summary so far...

We’ve reviewed...How the performance appraisal can be a vital management tool... It Benefits... the Organization, the Supervisor, and the Employee.How documenting performance is important, as are setting goals... We saw how performance appraisals provide fair, objective and useful feedback to employees when they meet these standards: consistent, personalized, measurable, results-oriented, effort-oriented, accurate, timely, behavioral and complete.How to conduct the appraisal, reviewed a Performance Appraisal Planning Checklist and also saw how to Respond to Employee Reactions.

Before we move on... let’s discuss Lawsuits...

Performance evaluations trigger many lawsuits

Supervisors can reasonably expect some evaluations will give rise to hurt feelings, defensive actions and arguments.They may also give rise to lawsuits.

Lawsuits

Ways in Which Performance Evaluations May Trigger Lawsuits:

Slander and libel may result if...Untrue statements are conveyed to third parties, such as co-workers or to members of the community.Supervisor will want to, or be required to, discuss evaluations with administration, but be careful not to do so too broadly.Information in evaluation should be factual.

Other types of lawsuits...Evaluation was an intentional infliction of emotional distress.Evaluation triggered a wrongful discharge of employee.Evaluation was used to retaliate against an employee.

Lawsuits, con’t.Evaluation violated one of the anti-discrimination laws...

Important to note State statutes vary…Title VII of Civil Rights Act of 1964

• Alleging discrimination based on race, color, religion, sex or national origin

Americans with Disabilities Act (based on disability)Age Discrimination in Employment Act (based on age)Section 1981 of Civil Rights Act of 1866 (based on race in the making of contracts)

• Statutory Language of Section 1981 states that "all persons . . . shall have the same right . . . to make and enforce contracts . . . as is enjoyed by white citizens . . . ."

• Scope of Section 1981 prohibits only "racial" discrimination, although "race" is defined quite broadly, to mean identifiable classes of persons based on their ancestry or ethnic characteristics. Section 1981 applies to discrimination against groups such as blacks, Latinos, Jews, Iraqis, Arabs, and whites.

Lawsuits, con’t.

In other words, supervisors can trigger litigation both by saying too little or saying too much!

Bet that makes you feel better!

Of particular concern is a pattern of negative performance reviews adversely affecting a protected class.

OK, let’s now have some fun with this topic...

To Whom it May Concern,I am pleased to say this candidate is a former colleague of mine. In my opinion, you will be very fortunate to get Dave to work for you. I most enthusiastically recommend him with no qualifications whatsoever. Please waste no time in making him an offer of employment. Nobody would be better for the job. All in all, I cannot say enough good things about Dave or recommend him too highly.

Signed,A Previous Employer

Possible Problems with Traditional Methods...Michael Rigg, quoted in Industrial Engineer, Aug. 1992, said, “Traditional evaluation methods damage team-work because of a focus on supervisors evaluating individuals – they strip people of their sense of control.”Most traditional systems of performance evaluations use ranking systems

Good at sniffing out excellent and poor employees, but don’t differentiate well with the vast middle ground.

Rating by a single person, who may be biased or have an incomplete view of someone’s work is a common complaint about traditional methods.

Alternative Methods...

Newer methods of performance appraisal being seen lately require evaluation be done...

Not for raises, promotion or bonuses...But, for “growth”, “development” and “communication”.

All of these newer methods stress...Communication between the employee and other people, instead of one-way communication, to encourage higher performance.

Alternative Methods...Let’s look at some of these...

Peer ReviewsUsually designed by a task force of 3-6 workers to...

Set goals, benefits and objectivesDesign an evaluation systemConduct a pilot project to use/test the program

Often have a high level of worker acceptance and involvementTend to be stable, task-relevant and accurateHelps peers understand each other’s workCan air grievances in a non-threatening mannerHelps people to get along betterHelps people concentrate less on politics and spend more time on their workWorks best if all parties know the reviews will not be used for setting pay, promotion or disciplinary actions.

Alternative Methods, con’t.Self Reviews

Based on idea that employees are most familiar with their workStresses their involvement is essentialEmployees rate themselves on a number of criteria

usually with a formal survey formEncouraged to suggest improvements

Help clarify their own goalsExpose areas of weakness (so it may be worked on)Manager may be left out the process to change role of supervisor from “manager” to “counselor”Tend to have low “halo” error (The halo effect is where an employee’s strengths in one area are spread to other areas.)Results in little paperwork for managersHowever, people may not see their own deficiencies as others do, so self-reviews should be used along with other methods

Alternative Methods, con’t.Upward Assessments

Used in large number of organizations: Honda, Chrysler, Motorola and NASA.

Tend to be somewhat shocking to managers at firstIf designed well, can result in strong improvements

Uses surveys to help managers keep their words and actions consistent

Shows areas where managers can improve their performanceCan greatly increase managers credibility

Can’t be successful unless both raters and managers “open up”Managers must be helped to accept and deal with results

Often need to use outside consultants to implement so people canopen up without fear of reprisal

May only be done with managers who have 3+ direct reports

Alternative Methods, con’t.Upward Assessments, con’t.

Someone other than manager and employees must assemble completed surveys into a report for the managerRecommend using at least every 2 years

• Helps managers check their progress• Refreshes the findings of past surveys in their minds

Alternative Methods, con’t.360 Degree Feedback (360 Degree Review)

Brings out every aspect of an employee’s lifeFor example, Cooperation with people outside one’s own department or helpfulness towards customers and vendors,May not be rewarded by other types of appraisal systemsIncludes self-ratings, peer review and upward assessments

• Feedback is sought from everyone• Gives people a chance to know how they are seen by

others• Helps them see their skills and work style• May improve communications between workers

Most comprehensive and costly

Alternative Methods, con’t.360 Degree Feedback, con’t.

Helps those who have conflicts with their managerGenerally, has high employee involvement and credibilityMay have the strongest impact on behavior and performanceMay greatly increase communication and shared goalsProvides people with a good, all-around perspectiveRequires a third party, such as a consultant, to begin the process, which may take months to start upTraining for both managers and employees is necessary

Alternative Methods, con’t.In review, newer/alternative methods attempt to...

Help improve communicationsAid people to increase their own effectivenessClarify their own jobs and responsibilitiesIncrease the performance of staffWork together with common goals and fewer obstaclesCould help people comment on others’ performance and perceived problems more freelyCan bring out things which are normally never spokenReduce tensionRaise the employees’ (and/or manager’s) performance considerably

Summary...

The best types of performance appraisal systems...

Let supervisors and employees communicateShare ideas, opinions and information

Summary...

Overall, a good suggestion to follow is...A performance appraisal of each employee that is...

in writingdone annuallyused as a communication toolwhich looks at specific areas of work, goals and standardsencourages progress towards meeting these goals and standardsand, looks for ways to offer employee development...

…is the best possible program for both employees and management!

Some Final Thoughts...

If you don’t have a formal evaluation process/procedure at your institution, look to other institutions for advice; call, visit or see Web page, i.e. Cornell vs. Berkeley

(When looking at procedures for conducting performance appraisals via the personnel pages of these two institutions, it’s interesting to note differences between East vs. West Coast philosophies...)

http://www.zigonperf.com/resources/pmnews.htmloffers bi-monthly, free e-mail newsletter.

Some Final Thoughts, con’t.

Resources for Keeping Good StaffA daunting task for organizations is finding good employees, and an even more difficult one can be hanging on to them. Keeping employees happy can be part of keeping them around. Here are resources available to help uphold employee morale:

www.WorldAtWork.org – non-profit human resources consultant to employers seeking to attract, motivate and retain employees.www.EmployeeHoldem.com – Does research on level of employees’ commitment to their jobs and advises employers on how to seek a more “engaged” workforce.

Some Final Thoughts, con’t.

Resources for Keeping Good Staff, con’t.www.Catalyst.org – non-profit research group that advocates for working women and has monitored the progress of women in corporate leadership since 1995.www.eanj.com – Employers Assoc of New Jersey is non-profit trade assoc focusing on improving employer/employee relations.“White Collar Blues: Management Loyalties in an Age of Corporate Restructuring” by Charles Heckscher explores the decline of the job-for-life and argues for a more flexible relationship between free-agent employees and a constantly changing workplace.“The Disposable American: Layoffs and their Consequences” by Louis Uchitelle explores layoffs and their devastating impact on employees.

Conclusion

Thank you for attending!An updated version of this session may be found on the Web at…

http://www2.onu.edu/~dsmittle