It is about the A,B,Cs of Performance Review

1. Human
Resources
Management
Performance Appraisal:
Best Practices

2. 2
Mohammad Fheili
“Over 30 years of Experience in Banking. Contact Details:
mifheili@gmail.com (961) 3 337175
 Mohammad has successfully delivered over 1,500 hours of training to professional
bankers.
 He served as an Economist at ABL, and Senior Manager at BankMed and
Fransabank: and he currently serves in the capacity of an Executive (AGM) at JTB
Bank in Lebanon.
 In addition, He worked as an Advisor to the Union of Arab Banks.
 Mohammad also served as Basel II Project Implementation Advisor to CAB and HBTF
Banks in Jordan.
 Mohammad received his college education (undergraduate & graduate) at Louisiana
State University (LSU), and has been teaching Economics and Finance for over 25
continuous years at reputable universities in the USA (LSU) and Lebanon (LAU).
 Finally, Mohammad published over 25 articles, of those many are in refereed
Journals (e.g., Journal of Money Laundering & Control; Journal of Operational Risk;
Journal of Law & Economics; etc.) and Bulletins.”

3. A System’s View Of HR Management
Recruitment
& Selection
Wages & Salaries
Administration
Training &
Development
Coaching &
Counseling
PERFORMANCE
APPRAISAL
Delegating &
Assigning Work
Career
Planning
Skills
Inventory
Breaking The HR Job Down
Into Its Performance
Indicators
Primarily The
Responsibility
Of HR
Specialists
Shared
Responsibility
Primarily The
Responsibility Of
Supervisors

4. Performance Appraisal (most powerful HR tool
when used right):
 Identifies
 Measures
 Evaluates
 Corrects
 Improves upon
 Encourages
 Rewards (Not necessarily monetary)
 Document Performance
Employee Performance

5. HR Operational Risk
Staff-Related
Operational Risk
Resignation
Adaptability Qualification
Motivation
Work Force
Measure
Recent
Joiners
Capture Warning Signals
(As Early As Possible,
and Ongoing)
Feeds
Continuous
Monitoring
Enables
Corrective Action
Increases
People ValueReduces
Leavers: Key People
or Otherwise
Existing
Staff

6. Operational Risk
 Perception of Inequity Breeds Turnover and
Dissatisfaction.
 Dissatisfaction Breeds Lack Of Productivity
 Turnover Results In Costly Replacement Of
“Key Leavers”.
 Turnover and Dissatisfaction Causes Down-
Time.
 Turnover Results In Costly Recruitment.

7. Measurements Used In Decision-making Processes Must
Be Reliable And Credible (Otherwise G.I.G.O. e.g., Postponing
decisions, Not taking decisions, Indecisiveness, Inequity, Etc.).
Perception Is Reality!
Perceived Inequity (of the PA System) Is As Bad As
Real Inequity!
This is not a “Chicken-Egg Problem”, We have to go to
the Root-Cause of the problem, and ensure that the
system produces equitable outcomes (i.e., perceived
equity in rewards and penalties)!

8. Performance Management
An Ongoing Communication Process (Send-N-
Receive), undertaken in partnership, between
an employee and his/her immediate supervisor.
This process involves establishing Clear
Expectations and Understanding of …

9. The Process …!
This is where your part as a
Line Manager Starts.
• Set Goals (Let Employees be Involved)
• Observe and Monitor
Performance (… Contributes to the
frequency of …)
• Share Observations with
Employees (How Often?!)
• Evaluate Annual (or more often)
Performance and Institute a
Plan to Develop Employee
Skills and Abilities
• Start all over: Set New Goals (The
Journey to the future is easier if you look forward
instead of backward)
This is where your part as a line
manager ends.
• Performance Appraisal
System Must Reflect an
“Ongoing Process”
• If You Fail To Plan; Then You
Have Planned For Failure!

10. The Cycle of Performance Management!The Cycle of Performance Management!
Planning
Monitoring & Control
Reviewing
Taking Action

11. The Outcome Of Performance Appraisal
Serves As Input Into A Number Of
Decision-making Processes
Administrative
• Compensation
• Promotion
• Dismissal
• Downsizing
• Layoffs
Developmental
• Identifying strength
• Identifying areas for growth
• Development Planning
• Coaching and Career
Planning

12. But Cause-and-Effect!
Productivity
(On-The-Job Expectations:
Qualifications vs.
Requirements, Clear and well
communicated to the
employee .. Goal Setting,
Etc.) Performance Appraisal
(Productivity is Evaluated Fairly, Objectively, Frequently, and
openly. Critiques are provided constructively)
Rewards
Punishment
It is a
“Work of Heart”,
and it
must be Credible!
Responsibilities Established
Accountability
Established
Credibility
Established
Reliability
Established
If not credible or reliable, the system will not produce any of its desired benefits. In fact, it
becomes a source of frustration! This is what we got right now.
Development

13. Best Fit!
People
Organization
Competencies &
Professional
Qualifications
Values &
Motives
Job Requirements
Behaviors &
Outcomes
Culture &
Values
Match Competency
With
Job Qualifications
Match Organization
With
Individual’s Values
Fit
With
Job
Fit
With
Culture
Entry-Level Position
For Career Planning & Higher
Managerial Positions

14. What Does An Employee Need From A Performance
Appraisal SYSTEM?
• Does The System Produce Information That Is Relevant
To The Job (And Consequently Legally Defendable)?
• How Accurate Is The System’s Approach In Measuring
Performance?
• Does The System Allow You To Compare Different
Individuals With The Same Job In Different Sites Within
The Organization?
• Will The System Enable Different Managers Presented
With The Same Observations Or Data To Reach The
Same Conclusions?
• How Useful Is The Information Produced By The System?
Can It Be Used To Coach Or Counsel An Employee, Or,
Otherwise, Improve Performance?
• Etc.

15. Performance Appraisal gives valuable
insight into:
 The WORK being done!
 The HOW the work is done!
 The WHO is doing it!
Anyone in a Supervisory capacity finds this to
be priceless!

16. If done correctly (Continuous, Timely, Anticipated, Credible,
Objective, and constructive):
 Performance Appraisals must give input on the Quality of
work being done.
 Employees can learn of their own strengths and weaknesses.
 Employees, with the help of their respective Supervising
Officer, can use Performance Appraisal to formulate an
action plan for self career development.
 Training needs will be effectively identified.
 New and appropriate goals and objectives can be agreed
upon.
 Employees must be made to feel as active participants in the
performance evaluation process (i.e., Taken seriously, the
Supervising Officer is truly concerned about their needs, the
relationship between supervisor and employee is taken to an
adult-to-adult level, etc.)

17. Performance Appraisal
File

18. The Components
 OBJECTIVES of Performance
Appraisal Management
 GUIDELINES for Supervisors
 Guidelines for Employees
 PA FORM: Must include
“required” and “optional”
criteria
 INSTRUCTIONS: Explain
clearly (a) How to complete the
Form, and (b) what each rating
means in performance related
terminology
 SELF APPRAISAL Form for
the employee
 Include a section for “free
expression” Include a section
for “FREE EXPRESSION”
 Include a section to allow for
free “EMPLOYEE
REACTION”
 Always, Juniors and Seniors
must be evaluated using
different criteria.
 … and everything else.

19. Juniors / Non-Managerial
Positions.
 Job Knowledge
 Quality Of Work
 Quantity Of Work
 Relationship With People
 Initiative
 Ambition
 Efficiency
 Appearance
 Personality
 Ability To Work Under Pressure
 Attendance And Punctuality
 Etc.
Seniors / Managerial Positions.
 Business Development
 Achievements
 Effectiveness Of Supervision
 People Management Skills
 Problem Solving Ability
 Leadership Skill
 Ability To Manage Under Pressure
 Ability To Adapt To New
Situations
 Decision Making Ability
 Planning
 Delegation
 Development Of A Deputy
 Etc.
Performance Criteria

20. Other Performance Criteria
 Cooperation
 Reliability
 Personal Drive
 Customer Service
Orientation
 Administrative Skills
 Analytical Skills
 Computer Skills
 Stress
Management
 Safety
Consideration
 Adaptability
 Team Orientation
 Multi-Tasking
 Etc.

21.  Self-Appraisal Form. This Form is designed for the
employee to use in preparing for the Performance
Appraisal Interview. It is not a formal part of the
performance appraisal process.
 “Self Appraisal” leaves the employee with a
perception of fairness!
 Break down jobs into Families to improve upon the
perception of fairness.
 Assign “weights” to stress the relative importance
of each criterion in the performance appraisal
form.
 As a result, the total score will be a weighted
average.
You May Do More …

22. PA Meeting
… it’s all about communication!

23. You Can Make It Work.
 If you treat performance
management as a complete
system,
 Not leaving out any of the
parts,
 And if you succeed with
performance planning, and
 Ongoing performance
communication,
 We can almost guarantee
success during the
performance appraisal or
review meeting.
If you work with employees
throughout the year in
performance planning and
communication, they’ll
understand more fully that:
 the appraisal process isn’t
something that “you are going
to do to them!” They’ll
understand it as a
partnership.
 There will be no surprises at
the appraisal meeting.

24. For Maximum Effectiveness, Supervisors are
encouraged to prepare well, …
 Study the employee’s “Self-
Appraisal” Form.
 Arrange the interview a week
in advance, if possible, in
order to five the employee the
opportunity to prepare.
 Allow ample time for
adequate discussion.
 Provide for privacy and
prevent interruptions.
 Because PA Meeting may be
the only opportunity for a
supervisor to have a
structured discussion with an
employee about
performance, it is also an
appropriate time to discuss
different related matters (e.g.,
Job Description, Career
Development, Training, etc.)

25. PA Meetings succeed under the following
conditions
 The Supervisor takes on the role
of helper and problem solver,
rather than primary evaluator.
 The employee is actively involved
in the partnership and engaged in
realistic self-evaluation.
 The supervisor uses appropriate
interpersonal skills to involve the
employee.
 The employee understands what
to expect, in terms of content and
process, before walking in the
door.
 The supervisor treats the meeting
as important, something that
should not be delayed or
rescheduled.
 Both parties understand the why
of performance appraisal – that is
not to punish, but to improve
performance so everyone wins.
 It isn’t the rating or actual
assessment that improves
performance. What matters is the
discussion between the supervisor
and the employee.
 Remember, if performance
diagnosis are off, then the
prescription will be off too.

26.  Accomplishments
 Areas for improvement, and development
 On the job duties & responsibilities
 Training courses to consider
 Career Goals
 Professional experience
 Degrees earned recently
 Strengths and Weaknesses.
 Concerns related to performance & relations with
colleagues
 Goal Setting
 Critical Incidence: Those that stand out!
 Etc. (Anything the employee deems worth discussing)
Topics To Discuss During the PA Meeting

27. Performance Diagnosisworth stopping at …
 Become aware of a performance gap: you can identify problems
through the data and information you collect
continuously/systematically …. Just by paying attention!
 Identify the nature of the gap and its seriousness: it helps to define
the problem as precisely as possible. … but not all problems are
serious enough to require intervention!
 Identify possible causes of the gap, both system-related and
employee-related
 Develop an action plan to address the cause of the gap
 Implement the action plan
 Evaluate whether the problem has been solved
 Start over, if necessary.
 Finally, be aware of the difference between “Blaming” and
“Diagnosing”.
 Before you get comfortable discussing Performance Gaps ask yourself
“Am I able to discuss this constructively at this time?”

28. Getting Results!
Whether Performance Appraisal Fails Or Succeeds It Is A
Question Of Communication (… And How Effective It
Has Been)

29. If what you want is result, then add this to the list of
things you must do in the process of performance
management
 Don’t procrastinate when performance problems come to
your attention. The earlier you deal with them, the more
likely you will be able to do so helpfully and without
anger.
 Always start with the helping role. If that doesn’t work,
you can apply consequences and move to more
unilateral decision making. Always use the least possible
force.
 Make sure you’ve done a proper diagnosis of the
reasons for the performance deficit (e.g., System- or
Employee-related).
 Any consequences you choose should be appropriate
and proportional to the performance problem.

30. Self-Appraisal
An Employee’s Self Appraisal Process helps the
employee (if and when taken seriously):
 In identifying weaknesses (…and may be take the
initiative to correct them, or seek help from
someone who knows how to!),
 In identifying areas for potential career
development.
 Understands the Supervising Officer’s feedback on
their performance.
 Get a Reality Check! (in case where potential is
overstated, or understated, etc.).
 In preparing for the Performance Appraisal
Interview (a very integral part of the process).

31. Setting Goals, how to approach the
process? Be SMART!
 Specific
 Measurable
 Attainable
 Result-focused
 Time-oriented
Goal Setting: The How To!

32. Goal Setting: An Integral Part of
Performance Management
The Advantages Of Goal Setting:
 A chance to communicate strategic objectives in an
operational capacity.
 Identification Of Critical Success Factors. … Re-orient
The Employee Into Becoming Result Oriented. Focus On
What Matters The Most!
 Effective Mobilization Of Individual And Organizational
resources (Over-utilization is as bad as under-utilization).
 Generate Commitment From Employees: if you work
together on setting goals, it will be relatively easy to get
a real positive commitment from the employee.
 Ultimately, Improve the Productivity of your business
unit.

33. Do (s)
 Prepare in Advance
 Focus on Performance and
Development
 Be specific about reasons for
ratings
 Decide on specific steps to be
taken for improvement
 Consider the Supervisor’s role in
the subordinate’s performance
 Reinforce desired behavior
 Focus on Future Performance
Don’t (s)
 Lecture the Employee
 Mix Performance Appraisal and
salary or promotion issues
 Concentrate only on the Negative
 Do all the talking
 Be overly critical or “harp on” a
failing
 Feel it is necessary that both
parties agree in all areas
 Compare the employee with
others
This is a communication Issue: Communicate your concerns, Communicate your
joys, etc … through the Performance Appraisal Interview!

34. Common Pitfalls!
 Inequities in assessments, whether real or perceived, generally anger
employees.
 What you are evaluating is performance, but not people! Don’t
compare one employee to another! Compare one employee’s
performance to well established and transparent standards.
 Don’t apply different standard for performance and different
expectations for employees performing similar jobs.
 Your are appraising performance, but allocating greater weights to
recent events! Don’t Evaluate what you’ve observed only recently!
 A manager’s value or prejudice distort the performance appraisal
process.
 Managers may rate an employee high on all job criteria because of
performance in one area. The opposite may be true.
 Sometimes managers are influenced by whether employees show the
same or different characteristics from them.
 Everyone is an average performer! Everyone is a good performer!

35. Common Pitfalls (Continues)
 Managers Set Poor Standards of Performance.
 Managers Fall Prey to Rating Biases.
 Managers Don’t Allow Sufficient Time for the Appraisal Process.
 Managers Spend More Time Talking Than Listening to the Employees
They Are Appraising.
 Managers Don’t Document Employees Performance. Or They Do Keep
Records, but They Aren’t Valid for Fair and Accurate Appraisals.
 Managers Rate Everyone’s Work As Satisfactory
 Managers base their appraisal of employees on what happened
recently instead of what was the performance during the relevant
period.
 Managers Don’t Include an Employee-development or Follow-up Plan.

36. Thank You
… at your service.