Talent Management And Development PDF

Functional Area 03 Talent Management and Development Professional in Human Resources – International (PHRi) 2020 Edition International Human Resource Certification Institute IHRCI ® www.ihrci.og Professional in Human Resources – International (PHRi) Workbook Module Three: Talent Management and Development 2020 Edition Copyright © 2020 by International Human Resource Certification Institute All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means – electronic, mechanical, photocopying, recording, or otherwise – without written permission from the International Human Resource Certification Institute (IHRCI). No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of the information contained herein. International Human Resource Certification Institute (IHRCI) Flat/Rm, B, 5/F, Gaylord Commercial Building, 114-118, Lockhart Road. Hong Kong www.ihrci.org 1 Introduction As a purchaser of the PHRi certification workbook serials, you have access to the www.ihrci.org learning system. The system contains Glossary that provides a search box and a description of the key terms in HR. Also, the system consists of over 900 practice exam questions and answers with explanations in our database including pre-test, review-test, and post-test: Pre-test: It contains the same percentage of questions from each content area. Participants can take a pre-test of that module to access their conceptual understanding of that specific area of the PHRi Body of Knowledge. When the pre-test is completed, an overall correct percentage is provided along with the number and percentage of questions answered correctly. The answers with explanations to individual questions are also provided. Our system allows users to save the results of the pre-test so that they can improve upon that later. Review-test: Every review test contains questions with explanations which help to understand the concepts of that particular knowledge area for each section of the study workbook. Once you successfully finish reviewing for one section text in the workbook; you naturally get access to the next section. Every new section helps construct on the earlier concepts learnt in the previous knowledge areas. Please do step-wise study for all the knowledge areas. Post-test: Once you complete with all the knowledge areas, have a post-test through the full length simulated practice tests under the same testing conditions as the actual exams. With 170 questions covered during the 3.25 hours test. These tests are designed to help you get the feel of the final PHRi Exam, with similar format and question types. Practice till you are near to 80% correct answers in the post-test. This helped you in understanding areas where you have improved since the last test as well as list down topics for which you needed more revision. Access to the learning system is valid for twelve (12) months from the date of purchase to cover two test windows. Each practice for the pre-test, review-test, and post-test may be taken as many times as you would like within the 12 months. Access to these practice exams is for your individual use; your account is not to be shared with others. Your use of the online practice exams signifies your acknowledgment of an agreement to these terms. This workbook is not a textbook. These materials include workbooks and practice exams are intended for use as an aid to preparation for the PHRi Certification Exam conducted by the HR Certification Institute. By using all of the preparation materials, you will be well-versed in the six key functional areas that make up the HR Certification Institute PHRi body of knowledge. Studying these materials does not guarantee, however, that you will pass the exam. These workbooks are not to be considered legal or professional advice. 2 Table of Content Introduction................................................................................................................................ 1 Table of Content......................................................................................................................... 2 Part One: Performance Management..................................................................................... 6 1. Job Performance Management...................................................................................... 6 2. Performance Planning.................................................................................................... 7 2.1. Performance Standard........................................................................................ 7 2.2. Management by objectives (MBO)..................................................................... 8 2.3. Goal Setting......................................................................................................... 8 3. Performance Monitoring................................................................................................ 9 3.1. Eliminating Obstacle or Updating Objectives...................................................... 9 3.2. Reinforcing Effective Behaviors........................................................................... 9 3.3. Feedback, Counseling, and Coaching................................................................ 10 3.4. Maintaining performance records..................................................................... 11 4. Performance Appraisal................................................................................................. 12 4.1. Objectives of Performance Appraisal................................................................ 12 4.2. Process of Performance Appraisals................................................................... 12 4.3. Methods of Performance Appraisal.................................................................. 14 4.4. Measurement Error........................................................................................... 25 4.5. Rater Errors........................................................................................................ 26 5. Performance Development.......................................................................................... 28 5.1. Prepare the interview........................................................................................ 29 5.2. Getting people to open up................................................................................ 30 5.3. Facing up to the problem.................................................................................. 30 5.4. Agreeing a plan for the future........................................................................... 31 6. Performance Improvement Plans and Individual Development Plans........................ 32 6.1. Performance Improvement Plans (PIPs)............................................................ 32 6.2. Individual Development Plans (IDPs)................................................................ 33 Part Two: Employee Training.................................................................................................... 34 1. Adult Learning.............................................................................................................. 34 1.1. Trainability......................................................................................................... 35 1.2. Learning Styles................................................................................................... 35 1.3. Learning Curves................................................................................................. 36 1.4. Levels of Learning.............................................................................................. 36 2. Training Plan................................................................................................................. 36 2.1. Definition........................................................................................................... 36 2.2. Instructional System Design (ISD)..................................................................... 37 2.3. Learning Management System (LMS)............................................................... 39 3. Training Needs Assessment.......................................................................................... 42 3 3.1. Assessment Process........................................................................................... 42 3.2. Organizational Assessment............................................................................... 43 3.3. Task Assessment................................................................................................ 43 3.4. Individual Assessment....................................................................................... 43 4. Training Design............................................................................................................. 43 4.1. Setting Objectives.............................................................................................. 43 4.2. Defining Target.................................................................................................. 43 4.3. Selecting Trainer................................................................................................ 43 5. Training Program Development.................................................................................... 43 5.1. On-the-Job Training (OJT).................................................................................. 44 5.2. Apprenticeship Training..................................................................................... 44 5.3. Informal Learning.............................................................................................. 44 5.4. Job Instruction Training..................................................................................... 45 5.5. Lectures (Classroom Training)........................................................................... 45 5.6. Programmed Learning....................................................................................... 45 5.7. Audiovisual-Based Training............................................................................... 45 5.8. Simulated Training............................................................................................. 45 5.9. Vestibule Training.............................................................................................. 45 5.10. Virtual training................................................................................................. 45 5.11. Electronic Performance Support Systems (EPSS)............................................ 45 5.12. E-learning......................................................................................................... 45 5.13. Simulated Learning.......................................................................................... 46 5.14. Case Study....................................................................................................... 46 5.15. Group Discussion............................................................................................. 46 5.16. Self-Directed Learning..................................................................................... 46 5.17. Blended Learning............................................................................................. 46 5.18. Orientation and On-boarding.......................................................................... 46 5.19. Cross Training.................................................................................................. 47 6. Training Implementation.............................................................................................. 47 6.1. Utilizing pilot programs..................................................................................... 47 6.2. Revising content................................................................................................ 48 6.3. Scheduling the program.................................................................................... 48 6.4. Announcing and implementing the program.................................................... 48 7. Training Evaluation....................................................................................................... 48 7.1. Level 1: Reaction............................................................................................... 49 7.2. Level 2: Learning................................................................................................ 50 7.3. Level 3: Behavior............................................................................................... 50 7.4. Level 4: Result.................................................................................................... 51 4 7.5. Others................................................................................................................ 51 8. Training Transfer........................................................................................................... 51 8.1. Barriers of Training Transfer.............................................................................. 52 8.2. Training Activities Related to Training Transfer................................................. 52 9. Trends for Employee Training....................................................................................... 53 9.1. MOOCs (Massive Online Open Courses)........................................................... 53 9.2. Gamification...................................................................................................... 54 9.3. Minimum Viable Courses (MVC)....................................................................... 55 9.4. Mobile Learning................................................................................................. 55 9.5. Adaptive Learning.............................................................................................. 55 9.6. Collaborative Learning....................................................................................... 56 9.7. SCORM Standards.............................................................................................. 56 9.8. Outsourced Training.......................................................................................... 57 Part Three: Employee Development........................................................................................ 59 1. Differences Between Employee Training and Development........................................ 59 2. Employee Development Techniques............................................................................ 60 2.1. Behavior Role Modeling.................................................................................... 60 2.2. Case Study......................................................................................................... 61 2.3. Business Games and Simulations...................................................................... 61 2.4. Learning from Experience................................................................................. 61 2.5. Multisource Feedback....................................................................................... 61 2.6. Assessment Centers (AC)................................................................................... 61 2.7. Special Assignment............................................................................................ 62 2.8. Job Rotation....................................................................................................... 62 2.9. Action Learning.................................................................................................. 62 2.10. Mentoring........................................................................................................ 62 2.11. Executive Coaching.......................................................................................... 62 2.12. Outdoor Challenge Program............................................................................ 63 2.13. Personal Growth Programs.............................................................................. 63 2.14. Succession Planning........................................................................................ 63 2.15. Off-site training................................................................................................ 63 2.16. Tuition reimbursement programs................................................................... 63 3. Career Development.................................................................................................... 64 3.1. Stages in career development........................................................................... 64 3.2. Career Management System............................................................................. 66 3.3. Career Planning Points...................................................................................... 66 3.4. Career Transitions.............................................................................................. 68 Part Four: Talent Management................................................................................................ 70 5 1. Talent Management Process.................................................................................... 70 1.1. Workforce Planning........................................................................................... 70 1.2. Recruiting.......................................................................................................... 70 1.3. Onboarding:....................................................................................................... 70 1.4. Performance Management:.............................................................................. 70 1.5. Training and Performance Support................................................................... 71 1.6. Succession Planning.......................................................................................... 71 1.7. Compensation and Benefits:............................................................................. 71 1.8. Critical Skills Gap Analysis................................................................................. 71 2. Replacement Planning vs. Succession Planning vs. Talent Management.................... 72 2.1. Replacement planning....................................................................................... 72 2.2. Succession planning.......................................................................................... 72 2.3. Talent management........................................................................................... 73 3. A Positions and A Players............................................................................................. 73 3.1. Identifying Your A Positions............................................................................... 75 3.2. Managing Your A Positions................................................................................ 78 3.3. Managing Your Portfolio of Positions................................................................ 79 3.4. Making Tough Choices....................................................................................... 80 4. Managing High Performers and High Potentials.......................................................... 81 4.1. Identifying High Performers and High Potentials.............................................. 81 4.2. Assessing Performance vs. Potential................................................................. 81 4.3. Development Strategies for High Performers and High Potentials................... 82 Reference.......................................................................................................................... 84 6 Part One: Performance Management 1. Job Performance Management Job performance is defined as the set of behaviors that are relevant to the goals of the organization or the organizational unit in which a person work. Job performance is what the organization hires one to do, and do well. Job performance is not the consequence or result of action, it is the action itself. However, if the action does not produce a result that is useful to shareholder, the action does not count. The criterion domain of job performance: Job Performance management, often called “Performance Management” in an individual level, is the process of identifying, executing, evaluating, and developing the performance of the human resources in an organization. The performance management process from two perspectives: a). the upstream component encompasses planning, objective setting, and measurement, which lends itself to standardization of performance management practices; b).The downstream component includes the performance appraisal itself. This component often reflects localization of performance management practices. An effective Performance Management process establishes the groundwork for excellence by: 1.1. Performance planning Performance planning is a discussion for developing a common understands of the objectives or performance standard that need to be achieved. 1.2. Performance monitoring Performance monitoring is a day-to-day management behavior to assure the objectives 7 could be accomplished. 1.3. Performance appraisal Performance appraisal is the process that measures the degree to which employee accomplishes work requirements. 1.4. Performance development Performance development is an ongoing cyclical process aims to develop, maintain and improve your skills, knowledge and job performance through performance planning, monitoring, and appraisal. 2. Performance Planning Performance planning is a formal structured process for identifying and communicating the organizational and individual goals expected of the employee. The performance plan consists of performance expected of an employee and an Individual Development Plan. Performance plans are decided collaboratively between the supervisor and employee working together. They together determine the performance expectations and development objectives to be accomplished during the review period. They discuss goals, objectives and expectations for the review period. The process helps to improve the communication and discuss the career development plan of the employee. Here are some important issues regarding performance planning: 2.1. Performance Standard Objectives or goals(the term are interchangeable) define what organizations, functions, departments, teams and job holders are expected to perform and accomplish. Some cultural factors that may influence performance management standards:  Some cultures value performance of the group over the individual as follow.  In some cases, an open and honest exchange of issues can occur. In other cultural contexts, a more formal, reserved relationship is the norm.  The appropriateness of forms and the meaning of rating scales vary significantly from culture to culture and location to location.  In some cultures, only positive feedback is provided so employees can save face.  The act of ranking employees within a group can be difficult in collective cultures.  Compensation practices vary widely across borders, cultures, and legal systems. The perceived value of the rewards can also vary from culture to culture.  This practice may not be accepted in collective cultures and those with high ascribed value dimensions.  Appraisals can be highly culturally specific. Even the meaning of the term "performance" can vary among individual and collective cultures. Also, the process of gaining input from colleagues can be easy and expected in some cultures but very guarded in others. 8 2.2. Management by objectives (MBO) MBO can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. No objectives will have significant incentive power if they are forced choice unrelated to a person’s needs. Job holder should set his or her own goal, checking them out with the superior, and should use the performance planning session as a counseling device. Thus, the superior would become one who helped subordinates achieve their own objectives instead of a dehumanized inspector of products. 2.3. Goal Setting Goal setting theory is widely recognized as one of the best motivational theories in self help, personal development, and personal growth. Specific and difficult goals led to better task performance than vague or easy goals. Employee goals can be clarified through performance and development planning, with attention to the level of performance needed and the specific desired results. Goal setting is most effective when it is combined with feedback, so progress can be monitored. Direct feedback and coaching is an often underutilized approach that enhances communication and bottom-line results. SMART goals include five elements in each objective: Objectives Standards Weight Balanced Qualitative Percentage Achievement Difficulty perspective Quantitative % Specific Results Measurable How Behaviors important to Achievable What have How Competencies the strategy Relevant to difficult to Mind-set or Time-bound accomplish achieve stakeholders’ value 2.3.1. Specific Specific goals outline exactly what we hope to accomplish. A specific goal is a focused goal. It will state exactly what the organization intends to accomplish. While the description needs to be specific and focused, it also needs to be easily understood by those involved in its achievement. It should be written so that it can be easily and clearly communicated. 2.3.2. Measurable A goal is measurable if it is quantifiable. Measurable goals can be evaluated to determine whether we have been accomplished. Measurement is accomplished by first obtaining or establishing base-line data. It will also have a target toward which 9 progress can be measured, as well as benchmarks to measure progress along the way. 2.3.3. Attainable Attainable goals figure out ways we can make them come true. There should be a realistic chance that a goal can be accomplished. This does not mean or imply that goals should be easy. On the contrary, a goal should be challenging. It should be set by or in concert with the person responsible for its achievement. The organization's leadership, and where appropriate its stakeholders, should agree that the goal is important and that appropriate time and resources will be focused on its accomplishment. An attainable goal should also allow for flexibility. A goal that can no longer be achieved should be altered or abandoned. 2.3.4. Relevant Individual goals should be appropriate to and consistent with the strategic and operational goals of the organization. Each goal adopted by the organization should be one that moves the organization toward the achievement of its strategic goals. Relevant goals will not conflict with other organizational goals. It is important that all short-term goals be relevant (e.g., consistent) with the longer-term and broader goals of the organization. 2.3.5. Time-bound Finally a goal must be bound by time. Timely goals outline actions we can apply immediately. That is, it must have a starting and ending point. It should also have some intermediate points at which progress can be assessed. Limiting the time in which a goal must be accomplished helps to focus effort toward its achievement. 3. Performance Monitoring Once the performance-planning phase has been completed, it is time to get the job done—to execute the plan. Performance execution is the second phase of an effective performance management process. For the individual, the critical responsibility in this phase is getting the job done—achieving the objectives. For the appraiser-people manager, there are several major responsibilities to create a conditions that motivate, and confronting and correcting any performance problems: 3.1. Eliminating Obstacle or Updating Objectives The guru of quality management, W. Edwards Deming, said the system factor account for 94 percent of variance in performance result, which are beyond the control of performer. Circumstances beyond a performer’s control can have the effect of either facilitating or constraining the level of performance. As a people manager, he or she should help the subordinates eliminate any obstacle to achieve performance objective, while the manager should collaborate with subordinates to update the objectives if necessary. 3.2. Reinforcing Effective Behaviors 3.2.1. Positive Reinforcement 10 This reinforcement implies giving a positive response when an individual shows positive and required behavior. For example, immediately praising an employee for coming early for job. This will increase probability of outstanding behavior occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behavior improves, reward can said to be a positive reinforce. Positive reinforcement stimulates occurrence of a behavior. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has. Desirability of Contingencies of Strength of Stimulus stimulus reinforcement response Positive Pleasant Increases reinforcement Presented Unpleasant Punishment Decreases Pleasant Extinction Decreases Withdrawn Negative Unpleasant Increases reinforcement 3.2.2. Negative Reinforcement This reinforcement strengthens a behavior because a negative condition is stopped or avoided as a consequence of the behavior. This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative reinforcement can be used for increasing desirable or required behavior. 3.2.3. Punishment Punishment weakens a behavior because a negative condition is introduced or experienced as a consequence of the behavior. It implies removing positive consequences so as to lower the probability of repeating undesirable behavior in future. In other words, punishment means applying undesirable consequence for showing undesirable behavior. For instance, suspending an employee for breaking the organizational rules. Punishment can be equalized by positive reinforcement from alternative source. 3.2.4. Extinction Extinction removes something in order to decrease a behavior. It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behavior by removing reward for that kind of behavior. For instance - if an employee no longer receives praise and admiration for his good work, he may feel that his behavior is generating no fruitful consequence. Extinction may unintentionally lower desirable behavior. 3.3. Feedback, Counseling, and Coaching Feedback, counseling, or coaching is part of the day-to-day interaction between a supervisor and an employee. 11 3.3.1. Feedback Feedback provides information to people on their performance, which helps them to understand how well they have been doing and how effective their behavior has been. Cultural differences can affect the degree of need for feedback, inhibit employees from seeking necessary feedback, and determine the most effective form of feedback. 3.3.2. Counseling Counseling uses a set of skills and techniques to help people to take responsibility for and to manage their own decision-making whether it work related or personal. A counseling session is a meeting between the supervisor and the employee which may focus on a specific incident, a particular aspect of an employee's performance which the supervisor has identified as needing improvement, or the employee's overall performance or conduct. The counseling process is initiated and executed at the department level by the supervisor and is not discipline. It is a face-to-face communication between the supervisor and the employee, conducted in private, and is intended to have a constructive goal of providing feedback to the employee to correct the problem. 3.3.3. Coaching Coaching can be used to help people develop their competencies during normal day- to-day activities. Coaching often provides positive feedback about employee contributions. At the same time, regular coaching brings performance issues to an employee's attention when they are minor, and assists the employee to correct them. 3.4. Maintaining performance records Generating and managing fair, accurate, and non-biased documentation of employee behavior and performance is one of the most important skills all supervisors need to develop. Also, good documentation of an employee’s pattern of poor performance and discipline can establish that the employee’s firing wasn’t related to discrimination based on race, sex, age, religion, disability, or national origin. An employer may have a much more difficult time proving that without such documentation. The absence of such documentation of employees’ behavior and performance may prompt an agency to dig deeper, push to interview witnesses, or take other measures designed to elicit information that it expects should have been documented or find out the reasons for the absence of documentation. Documenting employee behavior and performance also is critical because memories aren’t perfect. Remembering a specific performance issue involving one of a hundred employees months or even years ago isn’t easy. Moreover, because the unfortunate reality is that we live in an increasingly litigious society, an employee may deny that the performance issue ever happened and leaves the employer in a “he said, she said” situation when trying to justify a personnel decision. 12 4. Performance Appraisal Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows:  The supervisors measure the pay of employees and compare it with targets and plans.  The supervisor analyses the factors behind work performances of employees.  The employers are in position to guide the employees for a better performance. 4.1. Objectives of Performance Appraisal Performance appraisals can serve multiple purposes in an organization: Improvement: The process should help both the employee and the organization to get better results, to get better results, improving quality, efficiency, effectiveness, alignment, and the like. Coaching and Guidance: In the traditional management view, appraisal provides a managerial tool and framework for coaching, counseling, and motivating employees. Feedback and Communication: Appraisal is intended to enhance communication between the employee, supervisor, and others in the organization, including feedback on employee performance. Compensation: By trying appraisal to compensation (salary increases, bonuses), purportedly people will work harder. Staffing Decision and Professional Development: Appraisal attempts to provide information to enable the organization to fairly and effectively select employees for promotion, layoffs, or reductions in force (RIF). It is also used to identify staffing and training needs and assist employees in their career development. Termination and Legal Documentation: Effectively written appraisals should provide objective and impartial documentation that is necessary or useful in disciplinary and discharge decisions. Some organizations applied performance-based layoff strategy to ensure that successful employees with excellent performance records remain with the company, regardless of their personal affiliations with managers or owners. This approach relies on employee testing or evaluations (similar as forced distribution) to determine the efficacy of each worker, with only those scoring in the lowest percentiles, or below a predetermined standard, losing their jobs. 4.2. Process of Performance Appraisals A performance appraisal is a formal interaction between an employee and her manager. This is when the performance of the employee is assessed and discussed in thorough detail, with the manager communicating the weaknesses and strengths observed in the employee and also identifying opportunities for the employee to develop professionally. Here is the process involved in performance appraisal 13 4.2.1. Conducting Job analysis. This is logically our first step because if we don’t know what a job consists of, how can we possibly evaluate an employee’s performance? We should realize that the job must be based on the organizational mission and objectives, the department, and the job itself. 4.2.2. Establishing Performance Standards In this we use as the base to compare the actual performance of the employees. In this step it requires to set the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. If employee doesn't come up to expectance, then it should be taken extra care for it. 4.2.3. Communicating the standards It is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained. This will help them to understand their roles and to know what exactly is expected from them. 4.2.4. Measuring the actual Performance The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a nonstop process which involves monitors the performance all over the year. This stage requires the watchful selection of the suitable techniques of measurement, taking care that individual bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. 4.2.5. Comparing the Actual with the Desired Performance In this the actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees' performance. 4.2.6. Discussing Results The result of the appraisal is communicated and discussed with the employees on one- to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees' future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform 14 better. Performance feedback can be very different across cultures. Managers must learn how feedback that should be given in that culture. 4.2.7. Decision Making The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. 4.3. Methods of Performance Appraisal There are many types of performance appraisal methods. Some of them are : 1) Job results 2) essay method 3) Ranking 4) Forced Distribution 5) Graphic Rating Scale 6) Behavioral Checklist 7) Behavioral Anchored Rating Scales (BARS) 8) Management by Objectives (MBO) 4.3.1. Job Results Though not an appraisal method per se, job results are in themselves a source of data that can be used to appraise performance. Typically, an employee's results are compared against some objective standard of performance. This standard can be absolute or relative to the performance of others. Results indexes are often used for appraisal purposes if an employee's job has measurable results. Examples of job results indexes are dollar volume of sales, amount of scrap, and quantity and quality of work produced. When such quantitative results are not available, evaluators tend to use appraisal forms based on employee behaviors and/or personal characteristics. In some cases, appraisals may focus on results rather than behaviors. This is especially true where job content is highly variable, as in many managerial positions, thus making it difficult to specify appropriate behaviors for evaluative purposes. Results indexes such as turnover, absenteeism, grievances, profitability, and production rates can be used to evaluate the performance of organization units. When we use the output-based scale, the following terms are used: (a) Inputs: all the resources that contribute to the production and delivery of outputs. Inputs are "what we use to do the work". They include competencies and resources. 15 Output-based ratio scale System factor Internal process Cost Process Volume Competencies Input Output Profit Resources Productivity Ratio Feedback Timeliness Job Results Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. Process The activities or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, process describe “what we do". However, the external factors may affect the internal process and its ability to pursue a given output. The external factors includes a wide variety of needs and influences that can affect the organization, but which the organization cannot directly control. Influences can be political, economic, ecological, societal and technological in nature. Outputs The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver”, such as cost, volume, profit, productivity, ratio, or timeliness. The outputs collectively contribute to one or more outcomes and impacts. Outputs are considered as short-term results because they occur immediately after the activity has ended. On the contrary, outcomes are results that occur after a certain period has elapsed. Output enables organization to find outcomes, but without outcomes, there is no need for outputs. Feedback Feedback is having the outputs of work communicated to the employee, work group, or company. For an individual employee, performance measures create a link between their own behavior and the organization's goals. For the organization or its work unit's performance measurement is the link between decisions and organizational goals. Fundamentally, feedback and management-employee communication can serve as a guide in job performance. Specifically, feedback should help the ratees answer the following questions: What would you do to correct or refine the product or project? What would you do differently? What problems did you encounter that you did not find a solution for? What limitations did you materials or programs present? 16 4.3.2. Essay Method The essay method involves an evaluator's written report appraising an employee's performance, usually in terms of job behaviors and/or results. The subject of an essay appraisal is often justification of pay, promotion, or termination decisions, but essays can be used for developmental purposes as well. Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization is a major problem. The open-ended, unstructured nature of the essay appraisal makes it highly susceptible to evaluator bias, which may in some cases be discriminatory. By not having to report on all job-related behaviors or results, an evaluator may simply comment on those that reflect favorably or unfavorably on an employee. This does not usually represent a true picture of the employee or the job, and content validity of the method suffers. Critical incident technique: Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers' performance. An example of a good critical incident of a sales assistant is the following: July 20 – The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers' problem. On the other hand the bad critical incident may appear as under: July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager's call thrice. He is lazy, negligent, stubborn and uninterested in work. This method provides an objective basis for conducting a thorough discussion of an employee's performance. This method avoids recency bias (most recent incidents get too much emphasis). This method suffers however from the following limitations: Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates. Checklists and weighted checklists: Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes 17 strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. Is the employee really interested in the task assigned? Yes/No Is he respected by his colleagues (co-workers ) Yes/No Does he give respect to his superiors? Yes/No Does he follow instructions properly? Yes/No Does he make mistakes frequently? Yes/No A rating score from the checklist helps the manager in evaluation of the performance of the employee. The checklist method has a serious limitation. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. Another limitation could be that this method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee's characteristics, contributions and behaviors. In spite of these limitations, the checklist method is most frequently used in the employee's performance evaluation. 4.3.3. Forced-Choice Rating This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, One or two of which may be positive and the other one or two negative and the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements apply to the most effective employee. The following box is a classic illustration of the forced choice items in organizations. Forced-Choice rating scale Rater Instructions: for each of the following two items, please indicate which behavior if most typical of the instructor’s behavior 1. a. Presentations were of excellent quality. b. The meetings held my interest and attention. 2. a. The instructor was able to get cooperation and attention. b. The instructor used class well. Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. 18 4.3.4. Mixed Standard Scales Mixed standard scales are a relatively recent innovation in rating scales. They contain statements representing good, average, and poor performance based on behavioral examples obtained from knowledgeable persons, usually supervisors. An evaluator's task is to indicate whether an employee either fits the statement, is better than the statement, or worse than the statement. In a mixed standard scale, each performance dimension has three statements relating to it: one illustrating good performance, one average, and one poor. Thus, this mixed standard scale has nine statements, three for each of the three dimensions used. Statements in mixed standard scales are randomly mixed, tending to reduce rater errors by making it less obvious which statements reflect effective or ineffective performance. Example of a mixed standard scale Instructions: If the employee fits the statement, put a “o” in the space opposite the statement. If the employee is better than the statement, put a “+”. If the employee is worse than the statement, put a “-“. Mixed standard scale Behaviors Superior Average Inferior Rating 1 + + + 7 2 - o + 4 3 o + + 6 4 - - o 2 Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer.  Is on good terms with everyone. Can get along with people even in disagreement.  Employee's work is spotty, sometimes being all right and sometimes not. Could be more accurate and careful.  Has a tendency to get into unnecessary conflicts with people.  Is quick and efficient, able to keep work on schedule. Really gets going on a new task.  The accuracy of employee's work is satisfactory. It is not often that you find clear evidence of carelessness.  Gets along with most people. Only very occasionally has conflicts with others on the job, and these are likely to be minor.  Is efficient enough, usually getting through assignments and work in reasonable time.  Work is striking in its accuracy. Never any evidence of carelessness in it. 19  There is some lack of efficiency on employee's part. Employee may take too much time to complete assignments, and sometimes does not really finish them. 4.3.5. Ranking and Forced Distribution Ranking methods compare one employee to another, resulting in an ordering of employees in relation to one another. Rankings often result in overall assessments of employees, rather than in specific judgments about a number of job components. Straight ranking requires an evaluator to order a group of employees from best to worst overall or from most effective to least effective in terms of a certain criterion. Alternative ranking makes the same demand, but the ranking process must be done in a specified manner (for example, by first selecting the best employee in a group, then the worst, then the second-best, then the second-worst, etc.). Comparative evaluation systems such as ranking are rarely popular. No matter how close a group of employees is in the level of their performance, and no matter how well they perform on the job, some will rank high and some will end up at the bottom. Evaluators are often reluctant to make such discriminations. Also, rankings are unable to compare employees across different groups. For example, it is difficult to say whether the second-ranked employee in unit A is as good as or better than the second- ranked employee in unit B. Despite the problems of ranking methods, if an organization has a very limited number of promotions or dollars to allocate, rankings can be very useful in differentiating among employees. Within this system exist several comparative methods, which are as follows: Straight ranking Alternative ranking Ranking Employee Employee Ranking 1 X1 X1 1 X2 2 2 X3 X3 3 3 X2 Paired comparison Forced distribution Compared X1 X2 X3 Ranking Percentage Employee X1 -- X X 1 20% (A) X1 X2 V -- X 2 X3 V V -- 3 60% (B) X2, X3, X4 Rating 2 1 0 4 Ranking 1 2 3 5 20% (C) X5 Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. Simple or Straight Ranking The first of these methods is known as ‘Simple’ or ‘Straight’ ranking. It works by rating individuals on their performance from best to worst. This particular method assumes that the appraising party is able to make judgments on overall performance without any criteria or benchmarks to guide them. This generally causes ratings to be based more so on opinions, as opposed to actual figures of output, sales or labour turnover. 20 Alternate Method The second comparative method is known as the ‘Alternate’, and is similar to the prior in its failings and design. Appraisal is done by listing the best performer first, then the worst last, once this has been done, the second best and worst performers are selected, and placed according. This process Continues until the entire group of subordinates are ranked. Paired Comparison Method The third method known as the ‘Paired Comparison’ suffers the same defects as the other two, but allows for slightly more objectivity to be included in comparisons by contrasting two subordinates at a time against all others on a single standard criterion, such as overall performance. Unfortunately, the amount of time taken increases geometrically as the size of the group increases. Forced Distribution Forced distribution is a form of comparative evaluation in which an evaluator rates subordinates according to a specified distribution. Unlike ranking methods, forced distribution is frequently applied to several rather than only one component of job performance. Use of the forced distribution method is demonstrated by a manager who is told that he or she must rate subordinates according to the following distribution: 10 percent low; 20 percent below average; 40 percent average; 20 percent above average; and 10 percent high. In a group of 20 employees, two would have to be placed in the low category, four in the below-average category, eight in the average, four above average, and two would be placed in the highest category. The proportions of forced distribution can vary. For example, a supervisor could be required to place employees into top, middle, and bottom thirds of a distribution. Forced distribution is primarily used to eliminate rating errors such as leniency and central tendency, but the method itself can cause rating errors because it forces discriminations between employees even where job performance is quite similar. For example, even if all employees in a unit are doing a good job, the forced distribution approach dictates that a certain number be placed at the bottom of a graded continuum. For this reason, raters and ratees do not readily accept this method, especially in small groups or when group members are all of high ability. 4.3.6. Graphic Rating Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below: 21 Graphic rating scales Relative-Skewed Anchors Relative-Symmetrical Anchors 1 = Below Average 1 = One of the Worst 2 = Average 2 = Below Average 3 = Above Average 3 = Average 4 = Well Above Average 4 = Above Average 5 = One of the Best 5 = One of the Best Absolute-Skewed Anchors Absolute-Symmetrical Anchors 1 = Marginal 1 = Poor 2 = Satisfactory 2 = Marginal 3 = Good 3 = Satisfactory 4 = Very Good 4 = Good 5 = Outstanding 5 = Outstanding Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. 4.3.7. Behaviorally Anchored Rating Scale, BARS Behaviorally anchored rating scales: Also known as the behavioral expectations scale, this method represents the latest innovation in performance appraisal. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. The critical incidents serve as anchor statements on a scale and the rating form usually contains six to eight specifically defined performance dimensions. The following chart represents an example of a sales trainee's competence and a behaviorally anchored rating scale. Developing a BARS follows a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees. Behaviorally Anchored Rating Scale, BARS Follow a course syllabus and lecture 7 in a logical order tied each one into the previous one Assimilate the previous lecture into the present on before beginning the 6 lecture Announce at the end of each lecture 5 covered during the next class period Prepare a course syllabus but only follows it occasionally 4 Sidetracked a least once a week in 3 lecture and not cover the intended material Make no use of a course syllabus and with no logic order lecture 2 Make good deal of the time about subjects other than the topic 1 Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. 22 Step 1: Collect critical incidents People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance. Step 2: Identify performance dimensions The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customers, handling of paper work and meeting day-to-day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behavior should be used, which could later be scaled in terms of good, average or below average performance. Step 3: Reclassification of incidents Another group of participants who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective. Step 4: Assigning scale values to the incidents Each incident is then rated on a one-to-seven or one-to-nine scale with respect of how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participants usually assigns the scale values. Means and standard deviations are then calculated for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained. Step 5: Producing the final instrument About six or seven incidents for each performance dimension – all having met both the retranslating and standard deviation criteria – will be used as behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job-specific and identifies observable and measurable behavior, it is a more reliable and valid method for performance appraisal. Researchers, after surveying several studies on BARS, concluded that “despite the 23 intuitive appeal of BARS, findings from research have not been encouraging”. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are activity oriented rather than results oriented. This creates a potential problem for supervisors doing the evaluation, who may be forced to deal with employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and expensive to create BARS. They also demand several appraisal forms to accommodate different types of jobs in an organization. In a college, lecturers, office clerks, library staff, technical staff and gardening staff all have different jobs; separate BARS forms would need to be developed for each. In view of the lack of compelling evidence demonstrating the superiority of BARS over traditional techniques such as graphic rating scales. A scholar concluded that: “It may be time to quit hedging about the efficacy of behavioral scaling strategies and conclude that this method has no clear-cut advantages over more traditional and easier methods of performance evaluation”. 4.3.8. Behavioral Observation Scales, BOS A technique for evaluating the performance of an employee which can be used as part of the appraisal process. Like behaviorally anchored rating scales, the “Behavioral Observation Scales (BOS)”technique involves a process of identifying the key tasks for a particular job, but the difference is that employees are evaluated according to how frequently they exhibit the required behavior for effective performance. The scores for each of these observed behaviors can then be totaled to produce an overall performance score. In such instances, the various measures of behavior are normally weighted to reflect the relative importance of the measure to the overall job. The instruments of BOS are ordinal scale questionnaires. The question is typically related to the frequency or intensity of the symptom of behavior. Behavioral Observation Scales, BOS I. Overcoming Resistance to Change Describes the detail of the (1) Never 1 2 3 4 5 6 Always change to subordinates Explains why the change is (2) Never 1 2 3 4 5 6 Always necessary Discusses how the change will (3) Never 1 2 3 4 5 6 Always affect the employee Listen to the employee (4) Never 1 2 3 4 5 6 Always concerns Asks the employee for help in (5) Never 1 2 3 4 5 6 Always making the change work Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. 4.3.9. 360 Degree Feedback 24 "360" refers to the 360 degrees in a circle. The multiple rating sources would come from subordinates, peers, and managers in the organizational hierarchy, as well as self- assessment, and in some cases external sources such as customers and suppliers or other stakeholders. The purpose of the 360 degree performance feedback is to assist each individual to understand his or her strengths and weaknesses, and to contribute insights into aspects of his or her work needing professional development. This multi-rater feedback differs from what most employees get in an annual performance review in several ways: Well-rounded look. Most performance reviews involve the employee getting feedback directly from their manager. While a manager’s perspective is invaluable, it’s inherently limited. 360-degree feedback involves feedback from many additional sources, providing a well-rounded look at an employee. After all, people may act differently around their boss than around their peers and direct reports. Forward-looking. While there is some debate on the role of 360s and performance reviews, a general rule of thumb is that performance reviews are evaluative and backward looking – how have employees performed in relation to their goals. In contrast, 360-degree feedback is traditionally non-evaluative and forward-looking – what are employees’ strengths and weaknesses, and what developmental steps can help them become even better. Broader view. Some argue that keeping 360-degree assessments non-evaluative is essential to getting honest feedback. An employee’s peers, they’ll argue, are much less likely to provide negative or even constructive feedback if they think it will negatively impact someone’s bonus or promotion potential. Simply put, 360-degree multi-rater assessments address important competencies and provide opportunities for managers, peers and direct reports to provide important developmental feedback that they may not otherwise share. When it comes to measuring valuable employee skills and attributes, few things are as important or effective as 360s. They measure things like leadership, teamwork, communication, decision-making and collaboration. Given the continual demands of work, it is easy to get caught up in only looking at how well employees get their jobs done, instead of taking the longer term view to make sure they are developing into the most productive employee they can become. 360s help managers and employees look at competencies that will help make them and their organizations better. In addition, with more and more Millennials in the workforce, providing regular feedback has never been more important. Millennials want feedback more than any other group. While providing ongoing multi-rater feedback is important, 360s provide a formalized opportunity for a holistic view of strengths, weaknesses and opportunities for development. The results should be put into action plans to give employees the tools they need to develop into better employees. Traditionally, 360s have been limited to the top leadership at a company. But the tides are shifting. Organizations are beginning to recognize the need to develop all of their employees and they’re using 360s as an integral part of their employee development 25 plans. As previously noted, Millennials want feedback – and they don’t want to wait until they are senior managers to get it. Technology is making it easier, faster and more affordable to deliver 360 feedback than ever before. More organizations are choosing to provide this feedback and the associated development opportunities for all of their employees, from the C-level to entry level. It goes along with the fabled conversation between the CEO and the CFO. The CFO asks, “What if we train all our people and they leave the company?” To which the CEO responds, “What if we don’t and they stay?” 360-degree employee assessments are important to organizations, managers, and employees. Managers benefit from having the opportunity to get feedback from a variety of sources which both helps them improve and allows them to help their employees learn how they can capitalize on their strengths and improve where they are weak. Employees benefit because, for the most part, they are eager to improve and want feedback. And the organization as a whole benefits because 360s foster a culture of feedback and continuous improvement that leads to a stronger, more engaged workforce. Managers Avoid using 360-degree appraisals for decision Tell employees if ratings are being used for decision making Help employees interpret and react to the ratings Peers Self Clients Minimize the amount of data presented to employee Do not have all raters evaluate ratee in all areas Include a formal goal-setting component in the system Implement a 360-dgree Subordinates system regularly Evaluate the effectiveness of 360-degree appraisal system Source: Lepsinger, R. & Lucia, A.D. (2009). The Art and Science of 360 Degree Feedback 2nd Edition. San Francisco, CA: Pfeiffer. 4.4. Measurement Error Performance appraisal and measure is subject to two main flaws: criterion contamination and deficiency. The omission of pertinent performance criteria is referred to as criterion deficiency. For example, an appraisal form that rates the performance of police officers solely on the basis of the number of arrests made is deficient because it fails to include other aspects of job performance, such as 26 conviction record, court performance, number of commendations, and so on. Such a deficient form may steer employee behavior away from organizational goals; imagine if police officers focused only on arrests and neglected their other important duties. Appraised Actual Performance Performance Contamination Measurement Deficiency error accuracy error Measurement error Measurement Error Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. When irrelevant criteria are included on the rating form, criterion contamination occurs, causing employees to be unfairly evaluated on factors that are irrelevant to the job. For example, criterion contamination would occur if an auto mechanic were evaluated on the basis of personal cleanliness, despite the fact that this characteristic has nothing to do with effective job performance. Performance standards indicate the level of performance an employee is expected to achieve. Such standards should be clearly defined so that employees know exactly what the company expects of them. For instance, the standard "load a truck within one hour" is much clearer than "work quickly." Not only does the use of clear performance standards help direct employee behavior, it also helps supervisors provide more accurate ratings; two supervisors may disagree on what the term "quickly" means, but both attribute the same meaning to "one hour.“ To meet the standards, a firm must use an effective rating form. The form provides the basis for the appraisal, indicating the aspects or dimensions of performance that are to be evaluated and the rating scale for judging that performance. 4.5. Rater Errors Rater errors are errors in judgment that occur in a systematic manner when an individual observes and evaluates another. Personal perceptions and biases may influence how we evaluate an individual’s performance. What makes these errors so 27 difficult to correct is that the observer is usually unaware that she or he is making them. When we understand the errors and how they occur, we are able to take steps to minimize them. Contrast Leniency Harshness error Primacy Central Recency error tendency error Similar to Stereotype Halo effect me error Rater Errors Source: Smither, J.W. & London, M. (2009). Performance Management: Putting Research into Action. San Francisco, CA: Pfeiffer. 4.5.1. Halo effect A halo effect may occur when an employee is extremely competent in one area and is therefore rated high in all categories. Conversely, the horn effect may occur when one weakness results in an overall low rating. 4.5.2. Recency error The recency error occurs when an appraiser gives more weight to recent occurrences and discounts the employee's earlier performance during the appraisal period. 4.5.3. Primacy errors The primacy error occurs when an appraiser gives more weight to the employee's earlier performance and discounts recent occurrences. When an appraiser's values, beliefs, or prejudices distort ratings (either consciously or unconsciously), the error is due to bias. 4.5.4. Harshness error Strictness, called the "harshness" error, occurs when a manager gives low ratings. 4.6.5. Leniency error Leniency errors are the result of appraisers who don't want to give low scores. 4.5.6. Central tendency errors Central tendency errors occur when an appraiser rates all employees within a narrow 28 range, regardless of differences in actual performance, especially when using graphic scale. 4.5.7. Contrast error The contrast error occurs when an employee's rating is based on how his or her performance compares to that of another employee instead of on objective performance standards. 4.5.8. Stereotyping Stereotyping occurs when evaluations are influenced to some degree by a person’s membership in a particular social group. Individuals from different cultures consistently misinterpret each other’s behavior, possible biasing the appraisals. 4.5.9. Similar to me error Similar-to-me error is when the rater’s tendency is biased in performance evaluation toward those employees seen as similar to the raters themselves. 5. Performance Development Performance development is a broad term that includes performance management and employee development. It describes both managing/assessing the work that needs to be done and providing opportunities for professional growth and development. Performance development is the ongoing process between supervisor and employee of communicating and clarifying position responsibilities, priorities and performance expectations to guarantee mutual understanding and to enhance effectiveness in achieving the campus and departmental mission and goals. Conducting employee performance reviews demands a lot of time and effort, but when done correctly, they can bring numerous benefits to both the employee and the business, including: Before Motivate people and improve their performance During Preparation Open Up Face Up Agree for future Structure the interview Gather materials Informal and unhurried Not personalities Focus on the facts Review and write Praise and encourage Use positive language Agree measurable Schedule the meeting Probe and listen Encourage self-appraisal targets Give time to talk No surprises Set review dates View performance reviews as the beginning, not the end After 29 5.1. Prepare the interview Holding successful mid–year and end–of–year performance appraisal discussions requires preparation. For example, developing a comprehensive written appraisal narrative can be extremely helpful when preparing for the face–to–face appraisal review. Appraising officials can use the following checklist as a tool to help them prepare for employee appraisal reviews. 5.1.1. Gather the Material Have all the necessary tools close at hand before starting to write the appraisal narrative, including: -a copy of the employee's performance plan; -notes of previous meetings with the employee (remember what was discussed with the employee during previous meetings); -employee self-evaluation documents, which could include a list of completed projects and accomplishments prepared by the employee; -written or recorded feedback on employee performance from other sources (these can include letters of appreciation, customer feedback, etc.); and -appraisal program instructions that describe the performance appraisal process and procedures. 5.1.2. Review and Write Become familiar with the appraisal form and review how to derive the summary rating (e.g., numerical formula, percentages, and numerical weights). Take the time to review the employee's elements and standards, knowing which elements are critical, non- critical, and additional, and how to measure employee performance. Finally, review all the documentation. When writing the narrative, consider these points:  Responsibilities and Duties. Review employee responsibilities: Have the employee's work responsibilities changed? If so, how? Has the employee been assigned additional responsibilities which were not included in the performance plan? If so, consider acknowledging these additional responsibilities in the narrative and the performance interview. Also, consider whether to include the new responsibilities in next year's performance plan.  Performance. Include performance data for the entire appraisal period, not just the most recent information. The appraisal narrative should address: -how well the employee performed the assigned responsibilities and the quality and/or timeliness of the employee's accomplishments; -whether and how well the employee met performance goals; -areas of performance that improved over the appraisal period; and 30 -areas of performance that might need improvement.  Review Developmental Needs. In addition to the information in the narrative, prepare to talk to the employee about developmental needs. Identify skills and competencies that may enhance or improve the employee's performance. Look into a variety of ways of improving skills, such as classroom or on-line training, professional conferences and workshops, details to other work units or to positions with higher responsibilities, or on-the-job training. Enter the appraisal review with this information on hand, but during the review, be sure to ask the employee for input on development needs. If employees participate in creating their own development plans, those plans likely will be more successful. 5.1.3. Schedule the Interview/meeting The final preparation step is to set aside a time and a place to meet with the employee. When scheduling the appraisal interview, make sure to: -schedule a time that is convenient for you and the employee. This should be uninterrupted time so that you and the employee can concentrate on the appraisal. -give the employee a copy of the performance appraisal with its narrative before the meeting so that he or she can have time to prepare for the appraisal interview. 5.2. Getting people to open up 5.2.1. Establish an informal, unhurried atmosphere Seating arrangements matter - there should be no barriers and the two chairs must be the same height so that one person is not looking down on the other. Rapport building is very important, particularly with shy people. The ritual cup of coffee and some unthreatening, casual chat are important scene-setting activities. 5.2.2. Praise and encourage People like Sharon sometimes convince themselves that appraisal is going to be an unpleasant experience. It is important to change their perception early on by congratulating them for their good work. 5.2.3. Probe and listen Good appraisers ask open (how, what and why) questions to get the person talking, then probe for more information (‘tell me a bit more about…’) and finally ask closed questions to confirm agreement and understanding. 5.2.4. Give time to talk Advise the group not to be in too much of a hurry. People, particularly shy ones, need time to think. Silence, a friendly facial expression and, if necessary, encouraging prompts (‘take your time’) will produce answers which rushing the appraisee will not. 5.3. Facing up to the problem 5.3.1. Performance, not personalities 31 Appraisal is not therapy and you are not a psychiatrist! Whatever we think about someone's personality, we are unlikely to be able to change it in one relatively short discussion. What we can change is behavior, which means concentrating on performance. Watch out for the word 'attitude'. Before you criticize someone's attitude you must be quite clear what, specifically, you don't like and how that shows up in practice, with examples. 5.3.2. Use positive language If a person's performance was universally awful, you would be having a disciplinary interview with them, rather than appraising them. So find a way to make your criticisms positive. 5.3.3. Encourage self-appraisal It is much less threatening to ask people what they think about their performance than simply telling them what you think. Of course, they will want your opinion. But if you have heard what they have to say first, you will often find that, when it is your turn, you can put a positive slant on what they have. 5.3.4. No surprises! At least, no negative ones. If something is going wrong with an individual's performance it must be addressed at the time. Appraisers can certainly review progress on areas of improvement at appraisal time, but saving up bad news. 5.4. Agreeing a plan for the future 5.4.1. Structure the interview Decide on the main performance areas you want to talk about. These may come from the job description, or they may be objectives you have agreed at the beginning of the appraisal period, or they may be a set of competences. Here is a typical structure for an appraisal discussion. Rapport building: agenda setting. Start by setting a relaxed unhurried tone. Outline what the discussion will cover. Find out if the appraisee agrees. Explain the order. Stress that appraisal is a discussion - you want to hear the appraisee's opinions and ideas. Opening the discussion. Ask a general, open question to get the ball rolling. Before we get into the detail, how would you sum up the last six months? Performance areas: One by one. Try to focus on one area at a time, rather than jumping around. Summarize at the end of each section before moving on to the next. Themes and conclusions. These will begin to appear as the discussion progresses. Test your understanding of them when they do (I'm getting the feeling that you rather enjoy handling crises. Have I got that right?). Make a note, so that you can pull them together at the end. 32 Training/development. This will be one of the most important themes. Remember that formal training courses are only one way of developing people. So ask: 'What additional skills and knowledge do you need in this area?' and then 'How do you think we could best provide that?’ Avoid asking ‘What courses would you like to go on this year?’ Actions: boss and job holder. It's not just the discussion that is supposed to be two- way. The actions are as well. For example, if you are the boss, is there some coaching that you can give the appraisee? Should you delegate more work to him? Can you help sort out his working relationship with one of your colleagues? Is the appraisee satisfied? Don't end the discussion until you are sure that the appraisee has said everything he or she wants to say. 5.4.2. Focus on the facts This means two things: Resisting the temptation to get sucked into irrelevant discussions Nailing down generalizations 5.4.3. Agree measurable targets This is reasonably easy if they can be easily quantified. One of the benefits of appraisal is that it gives bosses and their team members the opportunity to talk about how they measure the achievement of targets, such as improving communication, which don't come with numbers attached. 5.4.4. Set review dates Appraisal is not supposed to be merely a once-a-year chore. To get the maximum benefit from it, it should be part of a never-ending process of improvement. This means agreeing targets, reviewing them and learning from how they have gone. 6. Performance Improvement Plans and Individual Development Plans Many organizations may define their performance review as a good opportunity to develop employees’ competencies and performance. You may hear two acronyms like ‘PIP’ and ‘IDP’ during the performance review. 6.1. Performance Improvement Plans (PIPs) From time to time, it may become apparent that a person in your department is not performing up to expectations. If a frank ‘sit down’ conversation isn’t effective, they may need the structure of a Performance Improvement Plan (PIP) to help them regain the focus and execution prowess needed for them to be successful. The communication of poor performance should never be a surprise. The key is to have regular conversations with each person concerning their performance – the good, the bad and the ugly. If you and your direct reports are not perfectly aligned on your perception of their performance, you are failing them as their leader. 33 Remember, PIPs are (or should be) designed to correct poor performance and put the individual on a path toward success. They should never be used to railroad someone out of an organization. The first person to know that their performance is sub-par is, of course, the employee. Constructing a PIP is similar as goal setting that must follow the S.M.A.R.T principle. 6.2. Individual Development Plans (IDPs) An individual development plan (IDP) is a tool that helps facilitate employee development. It’s a two-way commitment between an employee and their manager on what they are going to do to grow. IDPs are often used as a way to drive leadership development or to develop high potential employees. An IDP is the road map to the future success of each individual professional in your department. It’s also a huge signal to that individual that you, as his/h

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