How to conduct effective performance appraisals April 2011


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Half day open interactive workshop on performance appraisals held in Toronto.

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How to conduct effective performance appraisals April 2011

  1. 1. How to conduct effective performance appraisals <br />by Toronto Training and HR <br />April 2011<br />
  2. 2. Contents<br /> 3-4 Introduction to Toronto Training and HR<br /> 5-6 Definition<br /> 7-8 Drill A<br />9-15 Aims of regular performance appraisals <br /> 16-19 Case studies A & B<br /> 20-21 Goals and standards for performance<br />22-23 Designing a performance appraisal system<br />24-27 Different methods to evaluate performance<br />28-29 Golden cycle of performance management<br />30-31 Types of performance appraisal<br />32-34 Problems with performance appraisal<br />35-36 Areas to improve; collaborate don’t assassinate<br />37-39 The performance appraisal interview<br /> 40-41 Drill B <br />42-46 Points to bear in mind<br />47-50 Case studies C & D<br />51-52 Conclusion and questions<br />Page 2<br />
  3. 3. Page 3<br />Introduction<br />
  4. 4. Page 4<br />Introduction to Toronto Training and HR<br />Toronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden <br />10 years in banking<br />10 years in training and human resources<br />Freelance practitioner since 2006<br />The core services provided by Toronto Training and HR are:<br /><ul><li>Training course design
  5. 5. Training course delivery</li></ul>- Reducing costs<br /><ul><li>Saving time
  6. 6. Improving employee engagement & morale
  7. 7. Services for job seekers</li></li></ul><li>Page 5<br />Definition<br />
  8. 8. Differences betweenPerformance Appraisal and Performance Management<br />Performance Appraisal:Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance.<br />Performance Management:An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims.<br />Page 6<br />
  9. 9. Page 7<br />Drill A<br />
  10. 10. Page 8<br />Drill A <br />
  11. 11. Page 9<br />Aims of regular performance appraisals<br />
  12. 12. Page 10<br />Aims of regular performance appraisals 1 of 6<br />Check that the needs of the employee and employer are being met<br />Confirm the employee’s understanding of company expectations<br />Increase the employee’s knowledge of his or her personal strengths<br />Provide an opportunity to discuss areas for improvement<br />Foster a spirit of co-operation and teamwork<br />
  13. 13. Page 11<br />Aims of regular performance appraisals 2 of 6<br />WHAT CAN THEY ACHIEVE<br />performance measurement - transparent, short, medium and long term <br />clarifying, defining, redefining priorities & objectives <br />motivation through agreeing helpful aims and targets <br />
  14. 14. Page 12<br />Aims of regular performance appraisals 3 of 6<br />WHAT CAN THEY ACHIEVE<br />motivation though achievement and feedback <br />training needs and learning desires - assessment and agreement <br />identification of personal strengths and direction - including unused hidden strengths <br />career and succession planning - personal and organizational <br />team roles clarification and team building <br />
  15. 15. Page 13<br />Aims of regular performance appraisals 4 of 6<br />WHAT CAN THEY ACHIEVE<br />organizational training needs assessment and analysis <br />appraisee and manager mutual awareness, understanding and relationship <br />resolving confusions and misunderstandings <br />reinforcing and cascading organizational philosophies, values, aims, strategies, priorities, etc <br />
  16. 16. Page 14<br />Aims of regular performance appraisals 5 of 6<br />WHAT CAN THEY ACHIEVE<br />delegation, additional responsibilities, employee growth and development <br />counselling and feedback <br />manager development - all good managers should be able to conduct appraisals well - it's a fundamental process <br />
  17. 17. Aims of regular performance appraisals 6 of 6<br />Satisfactory—Promotable<br />Satisfactory—Not Promotable<br />Outcomes of Appraisal Interviews<br />Unsatisfactory—Correctable<br />Unsatisfactory—Uncorrectable<br />Page 15<br />
  18. 18. Page 16<br />Case study A<br />
  19. 19. Page 17<br />Case study A <br />
  20. 20. Page 18<br />Case study B<br />
  21. 21. Page 19<br />Case study B <br />
  22. 22. Page 20<br />Goals and standards for performance<br />
  23. 23. Guidelines for Effective Goal Setting<br />Assign Specific Goals<br />Encourage Participation<br />Assign Measurable Goals<br />Assign Challenging but Doable Goals<br />Goals and standards for performance<br />Page 21<br />
  24. 24. Page 22<br />Designing a performance appraisal system<br />
  25. 25. Page 23<br />Designing a performance appraisal system<br />Gaining support for the system<br />Choosing an appropriate rating instrument<br />Selecting raters<br />Determining timing<br />Ensuring fairness<br />
  26. 26. Page 24<br />Different methods to evaluate performance<br />
  27. 27. Page 25<br />Different methods to evaluate performance 1 of 3<br />Peer reviews<br />Self evaluation<br />Upward appraisals<br />
  28. 28. Page 26<br />Different methods to evaluate performance 2 of 3<br />TYPES OF PERFORMANCE APPRAISAL<br />Formal annual performance appraisals <br />Probationary reviews <br />Informal one-to-one review discussions <br />Counselling meetings <br />Observation on the job <br />Skill- or job-related tests <br />Assignment or task followed by review, including secondments (temporary job cover or transfer) <br />
  29. 29. Page 27<br />Different methods to evaluate performance 3 of 3<br />TYPES OF PERFORMANCE APPRAISAL<br />Assessment centres, including observed group exercises, tests presentations, etc. <br />Survey of opinion of others who have dealings with the individual <br />Psychometric tests and other behaviouralassessments <br />Graphology (handwriting analysis) <br />
  30. 30. Page 28<br />Golden cycle of performance management<br />
  31. 31. Page 29<br />Golden cycle of performance management<br />Goal setting and planning<br />Ongoing feedback and coaching<br />Appraisal and reward<br />
  32. 32. Page 30<br />Types of performance appraisal<br />
  33. 33. Page 31<br />Types of performance appraisal<br />Graphic rating scale<br />BARS( Behaviourally Anchored Rating Scales)<br />Alternation ranking<br />Forced distribution method<br />Critical incident method <br />Narrative Forms<br />Paired comparison<br />MBO (Management by Objectives)<br />
  34. 34. Page 32<br />Problems with performance appraisal<br />
  35. 35. Page 33<br />Problems with performance appraisal 1 of 2<br />Unclear standards<br />Halo effect<br />Central tendency<br />Leniency or strictness<br />Bias<br />Horns Effect<br />Recency Error<br />First Impression<br />Fixed Impression<br />
  36. 36. How to Avoid Appraisal Problems<br />Know Problems<br />Control Outside Influences<br />Use the Right Tool<br />Train Supervisors<br />Keep a Diary<br />Problems with performance appraisal 2 of 2<br />Page 34<br />
  37. 37. Page 35<br />Areas to improve; collaborate don’t assassinate<br />
  38. 38. Page 36<br />Areas to improve; collaborate don’t assassinate<br />Emphasize the positive with the negative<br />Couch your criticism in terms of the shared greater good rather than framing it as a personal indictment<br />Enlist your employee as an ally in troubleshooting a vexing issue<br />Offer the employee flexible options in resolving a shortcoming<br />
  39. 39. Page 37<br />The performance appraisal interview<br />
  40. 40. Page 38<br />The performance appraisal interview 1 of 2<br />How to conduct the interview<br />Checklist<br />How to handle a defensive appraisee<br />How to constructively criticize the appraisee<br />How to ensure the interview leads to improved performance<br />How to handle a formal written warning<br />
  41. 41. Page 39<br />The performance appraisal interview 2 of 2<br />GIVING NEGATIVE FEEDBACK<br />Why candour is important<br />The importance of documentation<br />The importance of the correct wording<br />Encouraging employee feedback<br />Ending on a positive note <br />
  42. 42. Page 40<br />Drill B<br />
  43. 43. Page 41<br />Drill B <br />
  44. 44. Page 42<br />Points to bear in mind<br />
  45. 45. Page 43<br />Points to bear in mind 1 of 4<br />Reduce surprises<br />Look back before you look ahead<br />Know the effects of documentation<br />Avoid extremes<br />Get employees involved<br />Separate performance and pay increase discussions<br />Know how to use the performance review for disciplinary purposes<br />
  46. 46. Page 44<br />Points to bear in mind 2 of 4<br />SELF-EVALUATION<br />Address your overall performance/track record for the review period<br />In what areas do you need additional support, structure and direction?<br />What are your goals for the next year or next review period? <br />
  47. 47. Page 45<br />Points to bear in mind 3 of 4<br />WATCH YOUR LANGUAGE<br />Avoid discriminatory references<br />Avoid the term “attitude”<br />Use “for example” frequently<br />Document how the supervisor has tried to help the employee meet performance standards<br />
  48. 48. Page 46<br />Points to bear in mind 4 of 4<br />REVIEW TIMELINE<br />One month before<br />Two weeks before<br />One week before<br />On the day<br />Three to five days after the review<br />
  49. 49. Page 47<br />Case study C<br />
  50. 50. Page 48<br />Case study C <br />
  51. 51. Page 49<br />Case study D<br />
  52. 52. Page 50<br />Case study D <br />
  53. 53. Conclusion & Questions<br />
  54. 54. Page 52<br />Conclusion<br />Summary<br />Questions<br />