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Performance Appraisal

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A modern and differentiated view on a traditional HR tool that rarely works in an agile environment.

Published in: Business
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Performance Appraisal

  1. 1. Performance Appraisal Prof. Dr. Armin Trost HFU Business School
  2. 2. 2Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Traditional Performance Appraisal ObjectivesReview Overall Objectives  Between an employee and his/her immediate supervisor  Leads to decisions and judgments  Common approach across levels and functions  Supervisor is in the leading position  It‘s a system – not an event  Central system-owner (usually HR) Mid-year Review
  3. 3. 3Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Interfaces to other HR-related Processes Performance Appraisal Talent- management Compensatio n Learning Out- placement Balanced Scorecard Employee Retention
  4. 4. 4Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Focus on Tool versus Results Tool Design Conditions Results ? Results Conditions Tool Design
  5. 5. 5Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Intended Results Retain employees Motivate through objectives Management by objectives Develop employees Treat low- performers Identify potential Track suitability Offer perspectives Reward high- performers Learn through feedback Judgements & Decisions
  6. 6. 6Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Principal, Customer, and the Role of HR Ex E HR M A HR E Ex M B E Ex C HRM Ex M E HR D Executive Board (Ex), Manager (M), Employees (E)
  7. 7. 7Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de The man who gives Flowers to his Wife Intrinsically motivated behavior Policy Behavior Attribution to extrinsic motivation Behavior not valued
  8. 8. 8Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Relevand Conditions  Employee-Organization- Relationship  Employee-Supervisor- Relationship  Employee-Work- Relationship
  9. 9. 9Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Agility of Work low high lowhigh certainty of results certainty of process large project small B E D A C Scope
  10. 10. 10Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Task Interdependance D A B E C strong effect weak effect
  11. 11. 11Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Task Dynamics (Sensitivity Model) strong weak strongweak Reaction Influence reactive critical activebuffering neutral AB E D C
  12. 12. 12Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
  13. 13. 13Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de
  14. 14. 14Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Roles of supervisors Boss Enabler CoachPartner Employee
  15. 15. 15Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de „ The role of judge and the role of counselor are incompatible -- Douglas McGregor Source: McGregor, D. (1960). The human side of enterprise. New York: McGraw-Hill.
  16. 16. 16Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Social Judgement Process Criterion interpretation Recall relevant memory content Initial judgement Anticipation of consequences Judgement communication Required adjustment Judgement available? yes no
  17. 17. 17Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Employee-Organization-Relationship Autonomy/ self-control Professional independence Social collaboration
  18. 18. 18Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Employee-Organization-Relationship Autonomy/ self-control Professional independence Social collaboration A Autonomy/ self-control Professional independence Social collaboration B
  19. 19. 19Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Two extreme Worlds Hierarchy Agility Agility low high Dynamic low high Supervisor role Boss Partner/Coach Autonomy/self-control low (top-down) high (bottom-up) Social collaboration individual linked teams Professional independence low high
  20. 20. 20Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Traditional Performance Appraisal in both Worlds Hierarchy Agility Reward high-performers Tread low-performers Identify potential Track suitability Offer perspectives Learn through feedback Develop employees Management by objectives Motivate through objectives Retain employees
  21. 21. 21Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de From hierarchical to agile Design Hierarchy Agility All at once Focused & separated Individual Social Manager/HR-driven Customer/employee driven Long/annual cycles Short cycles Focus on company‘s requirements Focus on company‘s and employees‘ expectations Quantiative & structured Qualitative & open Owned by HR/executive board Owned by employees/teams
  22. 22. 22Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Performance Distribution Performance C B AFrequency
  23. 23. 23Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Learning individual learning from managers & trainers off-the-Job planned formal ordered long cycles requirements learning transfer social learning from and with others on-the-Job on demand informal employee driven short cycle curiosity & uncertainty work = learning Hierarchy Agility
  24. 24. 24Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Talent Identification Employee Target Position Decider Supervisor Talent Manager Employee Decider Target Position
  25. 25. 25Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Feedback in Hierarchies ... Client
  26. 26. 26Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Agile Feedback Customer Teams Enabler
  27. 27. 27Prof. Dr. Armin Trost Performance Appraisal www.armintrost.de Summary  It‘s a system – not an one-time incident  First, think about results – not about the tool  Be clear about who the customer is  Consider internal conditions – organization, supervision and work  Even under hierarchical conditions performance appraisal does did not fully work  In an agile environment traditional performance appraisal does not work  Agility requires focused, social, open approaches, driven by employees and customers

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