The Appraisal System.  Concepts of Appraisal & Appraisal Methods M21 : Assessment in the Workplace <ul><li>To insert your ...
Performance Appraisal <ul><li>Aims of Appraisal </li></ul><ul><li>Content of Appraisal </li></ul><ul><li>Implementation </...
Perspectives on Appraisal : The Organisation <ul><li>‘ to enable some kind of assessment to be made on an employee - eithe...
Perspectives on Appraisal : The Appraisee (Employee) <ul><ul><li>Want fair distribution of reward </li></ul></ul><ul><ul><...
Perspectives on Appraisal : The Appraiser (Immediate Superior) <ul><ul><li>Napier & Latham (1986) ‘Reluctance’ </li></ul><...
Common Practice :  Aims of the Appraisal <ul><ul><li>Performance appraisal generally thought up by Personnel and/or senior...
Content of Appraisal (for Assessment & Comparison) DESIGNING THE QUESTIONNAIRE <ul><ul><li>‘ Identify abilities that are c...
Identification of Job-Related Abilities  (Assessment & Comparison)  Techniques (I) <ul><ul><li>1 .  Committee Method </li>...
Identification of Job-Related Abilities (Assessment & Comparison)  Techniques (II) <ul><ul><li>4.  Questionnaire Methods  ...
Rating Scale Format (Assessment and Comparison) <ul><ul><li>4 common formats for ratings scales : </li></ul></ul><ul><ul><...
Why Use Rating Scales ? <ul><li>Advantages </li></ul><ul><ul><li>easily understood </li></ul></ul><ul><ul><li>encourage an...
How to reduce idiosyncratic rating errors   <ul><li>Train appraisers </li></ul><ul><li>Use forced distributions </li></ul>...
Content of Appraisal (to Motivate & Develop : Management By Objectives, ‘MBO’) DESIGNING THE QUESTIONNAIRE <ul><li>6 - 12 ...
Content of Appraisal (Motivate & Develop : Competency Based) DESIGNING THE QUESTIONNAIRE <ul><li>‘ an underlying character...
Training and the Implementation of Appraisal <ul><li>Fletcher & Williams (1982) : the effectiveness of performance apprais...
Monitoring and Maintenance of Appraisals <ul><li>Short-Term Criteria </li></ul><ul><li>completion rate </li></ul><ul><li>a...
Appraisal and Performance Management <ul><li>‘ a shared vision of the direction of the organisation, in which each individ...
How does Appraisal fit in to PM ? <ul><li>Appraisal is the vehicle by which :  </li></ul><ul><li>org. goals and objectives...
Appraisal & Pay <ul><li>Merit Pay (PRP) :  </li></ul><ul><li>3% -10% of salary (+ cost of living rises) </li></ul><ul><li>...
Appraisal and Pay <ul><li>Alternatives </li></ul><ul><li>Direct and indirect links with merit pay </li></ul><ul><li>Wider ...
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Chapter3 slide 1

  1. 1. The Appraisal System. Concepts of Appraisal & Appraisal Methods M21 : Assessment in the Workplace <ul><li>To insert your company logo on this slide </li></ul><ul><li>From the Insert Menu </li></ul><ul><li>Select “Picture” </li></ul><ul><li>Locate your logo file </li></ul><ul><li>Click OK </li></ul><ul><li>To resize the logo </li></ul><ul><li>Click anywhere inside the logo. The boxes that appear outside the logo are known as “resize handles.” </li></ul><ul><li>Use these to resize the object. </li></ul><ul><li>If you hold down the shift key before using the resize handles, you will maintain the proportions of the object you wish to resize. </li></ul>
  2. 2. Performance Appraisal <ul><li>Aims of Appraisal </li></ul><ul><li>Content of Appraisal </li></ul><ul><li>Implementation </li></ul><ul><li>Maintenance and Evaluation of Appraisal </li></ul><ul><li>Appraisal and Performance Management (PRP) </li></ul>
  3. 3. Perspectives on Appraisal : The Organisation <ul><li>‘ to enable some kind of assessment to be made on an employee - either against pre-set objectives or job competencies… as a basis for…’ </li></ul><ul><li>making equitable reward decisions </li></ul><ul><li>improving performance </li></ul><ul><li>motivating employees </li></ul><ul><li>succession planning and identifying potential </li></ul><ul><li>promoting manager-subordinate dialogue </li></ul><ul><li>formal assessment of unsatisfactory performance </li></ul>
  4. 4. Perspectives on Appraisal : The Appraisee (Employee) <ul><ul><li>Want fair distribution of reward </li></ul></ul><ul><ul><li>Want performance feedback </li></ul></ul><ul><ul><li>Want constructive dialogue with ‘the organisation’ </li></ul></ul><ul><ul><li>BUT, conditional on the extent to which - </li></ul></ul><ul><ul><li>the appraisal is perceived as fair </li></ul></ul><ul><ul><li>has a good working (social?) relationship with the appraiser </li></ul></ul><ul><ul><li>impact of the assessment on their rewards and well-being </li></ul></ul>
  5. 5. Perspectives on Appraisal : The Appraiser (Immediate Superior) <ul><ul><li>Napier & Latham (1986) ‘Reluctance’ </li></ul></ul><ul><ul><li>why… </li></ul></ul><ul><ul><li>lack of agreement with target (appraisee) </li></ul></ul><ul><ul><li>lack of confidence in own ability to appraise </li></ul></ul><ul><ul><li>very high administrative workload </li></ul></ul><ul><ul><li>office politics </li></ul></ul><ul><ul><li>all leads to... </li></ul></ul><ul><ul><li>bias in appraisal ratings </li></ul></ul>
  6. 6. Common Practice : Aims of the Appraisal <ul><ul><li>Performance appraisal generally thought up by Personnel and/or senior management </li></ul></ul><ul><ul><li>NB1. Importance of setting realistic aims - conflicting perspectives on aims of appraisal (assessment vs motivation & development) </li></ul></ul><ul><ul><li>NB2. The aims of the appraisal will affect the nature and content of the scheme </li></ul></ul><ul><ul><ul><li>assessment : common dimensions </li></ul></ul></ul><ul><ul><ul><li>motivate & develop : emphasis on the individual </li></ul></ul></ul>
  7. 7. Content of Appraisal (for Assessment & Comparison) DESIGNING THE QUESTIONNAIRE <ul><ul><li>‘ Identify abilities that are central to good performance AND can discriminate between staff with varying levels of performance’. </li></ul></ul><ul><ul><li>How can we identify these job-related activities ? </li></ul></ul>
  8. 8. Identification of Job-Related Abilities (Assessment & Comparison) Techniques (I) <ul><ul><li>1 . Committee Method </li></ul></ul><ul><ul><li>Personnel and Snr Mgr/Exec. determine by discussion of ‘key’ abilities. </li></ul></ul><ul><ul><li>2. Diary Method </li></ul></ul><ul><ul><li>Job-holder keeps an hour-by-hour record </li></ul></ul><ul><ul><li>3. Direct Observation </li></ul></ul><ul><ul><li>HR and/or Occupational Psychologist observes job holder at work </li></ul></ul>
  9. 9. Identification of Job-Related Abilities (Assessment & Comparison) Techniques (II) <ul><ul><li>4. Questionnaire Methods (e.g. Position Analysis Questionnaire) : 187 items, 6 dimensions </li></ul></ul><ul><ul><ul><li>Information Input </li></ul></ul></ul><ul><ul><ul><li>Mental Processes </li></ul></ul></ul><ul><ul><ul><li>Work Output </li></ul></ul></ul><ul><ul><ul><li>Relationships with Others </li></ul></ul></ul><ul><ul><ul><li>Job Context </li></ul></ul></ul><ul><ul><ul><li>Other Characteristics </li></ul></ul></ul><ul><ul><li>5. Interviews with job holders & stakeholders (e.g.Critical Incident Technique) : Incidents of ‘very effective’ and ‘very ineffective’ performance. </li></ul></ul>
  10. 10. Rating Scale Format (Assessment and Comparison) <ul><ul><li>4 common formats for ratings scales : </li></ul></ul><ul><ul><li>1. Scales with verbally described intervals </li></ul></ul><ul><ul><li>2. Numerical/Alphabetical, with ‘low’-’high’ (intervals specified, but not described) </li></ul></ul><ul><ul><li>3. Graphic rating scales : extremes and mid-point specified, with detailed description of dimension of behaviour </li></ul></ul><ul><ul><li>4. Comparative scales : behaviour described relative to others. </li></ul></ul>
  11. 11. Why Use Rating Scales ? <ul><li>Advantages </li></ul><ul><ul><li>easily understood </li></ul></ul><ul><ul><li>encourage an analytic view of behaviour </li></ul></ul><ul><ul><li>provide quantitative data, so facilitates comparison </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>idiosyncratic rating errors (halo, restriction of range, leniency, central tendency, acquiesence) </li></ul></ul>
  12. 12. How to reduce idiosyncratic rating errors <ul><li>Train appraisers </li></ul><ul><li>Use forced distributions </li></ul><ul><li>Increase the number of raters </li></ul><ul><li>Use behaviourally based rating scales (e.g. BOS and BARS) </li></ul>
  13. 13. Content of Appraisal (to Motivate & Develop : Management By Objectives, ‘MBO’) DESIGNING THE QUESTIONNAIRE <ul><li>6 - 12 months, detailing : </li></ul><ul><li>key objectives </li></ul><ul><li>priority ranking </li></ul><ul><li>action needed (who and when) </li></ul><ul><li>extent to which objectives achieved </li></ul><ul><li>NB. </li></ul><ul><li>Very difficult to make any comparisons between people </li></ul><ul><li>not all jobs can be framed in terms of individual objectives </li></ul><ul><li>doesn’t help identify development needs </li></ul>
  14. 14. Content of Appraisal (Motivate & Develop : Competency Based) DESIGNING THE QUESTIONNAIRE <ul><li>‘ an underlying characteristic of a person which could be a motive, trait, skills, aspect of one’s self-image or social role or a body of knowledge which he/she uses .’ Boyatzis, 1982. </li></ul><ul><li>How to identify competencies : </li></ul><ul><li>(i) Traditional job analysis techniques, (ii) Rep Grid </li></ul><ul><li>(iii) Questionnaire methods (e.g. Generic Competency Questionnaire) </li></ul><ul><li>NB. Fletcher (1997). ‘competencies should not be equated with ratings of single job-related abilities - they are much more broader and complex. They should allow for progression and development’ </li></ul>
  15. 15. Training and the Implementation of Appraisal <ul><li>Fletcher & Williams (1982) : the effectiveness of performance appraisal is related to the training effort put into it </li></ul><ul><li>Traditionally, introduced ‘top-down’ </li></ul><ul><li>Background briefing - history of appraisal in the org., ‘selling’ the system, familiarise with the process </li></ul><ul><li>Train the Appraisers - train on Assessment Skills, Appraisal Interview Skills, offer an appraisal clinic. </li></ul><ul><ul><li>N.B. train for appraisal of diverse workforce </li></ul></ul><ul><li>Train the Appraisees - e.g. aims of scheme, how to prepare, reassure, how to respond. </li></ul>
  16. 16. Monitoring and Maintenance of Appraisals <ul><li>Short-Term Criteria </li></ul><ul><li>completion rate </li></ul><ul><li>action generated </li></ul><ul><li>quality of appraisal reports </li></ul><ul><li>attitudes and perceived value of the appraisal </li></ul><ul><li>equity </li></ul><ul><li>Long-Term Criteria </li></ul><ul><li>organisational performance </li></ul><ul><li>quality of staff </li></ul><ul><li>retention of staff </li></ul><ul><li>levels of employee commitment </li></ul>
  17. 17. Appraisal and Performance Management <ul><li>‘ a shared vision of the direction of the organisation, in which each individual employee recognises and accepts their contribution’ </li></ul><ul><li>The Process of PM </li></ul><ul><li>develop org. mission statement and objectives </li></ul><ul><li>develop a business plan </li></ul><ul><li>enhance communication within the organisation </li></ul><ul><li>clarify individuals’ responsibilities </li></ul><ul><li>define and measure individual performance </li></ul><ul><li>implement appropriate reward strategies </li></ul><ul><li>develop staff to improve performance further </li></ul>
  18. 18. How does Appraisal fit in to PM ? <ul><li>Appraisal is the vehicle by which : </li></ul><ul><li>org. goals and objectives are translated to individuals </li></ul><ul><li>individual needs are identified, and objectives agreed </li></ul><ul><li>NB </li></ul><ul><li>Individual vs team achievement </li></ul><ul><li>line driven appraisal </li></ul><ul><li>appraisal as part of a feedback loop </li></ul><ul><li>excessive bottom-line emphasis </li></ul>
  19. 19. Appraisal & Pay <ul><li>Merit Pay (PRP) : </li></ul><ul><li>3% -10% of salary (+ cost of living rises) </li></ul><ul><li>Issues </li></ul><ul><li>Meyer (1980 : on average, employees felt they performed better than 75% of their peers. </li></ul><ul><li>High performing individual, poor org. performance </li></ul><ul><li>Bevan & Thompson (1991) : PRP is not related to higher levels of org. performance. </li></ul><ul><li>Implications for appraisers (leniency in ratings) </li></ul>
  20. 20. Appraisal and Pay <ul><li>Alternatives </li></ul><ul><li>Direct and indirect links with merit pay </li></ul><ul><li>Wider (financial and non-financial) reward policies </li></ul><ul><ul><li>e.g. promotions, office décor, more holidays/flexible working practices, technology, ‘better’ work, conferences and training </li></ul></ul>
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