Performance management

1. CHAPTER 6
GATHERING
PERFORMANCE
INFORMATION

2. APPRAISAL
FORMS
MARKJOSEPHBADIANG
REPORTER

3. An is a document that managers
and human resources staff use to evaluate the
performance of employees. The form often
includes ratings and room for comments on
performance. On an appraisal form, managers
keep track of employees' achievements and
contributions during a specific period

4. Components of appraisal form:
This section of the form includes
basic employee information such as job title, division,
department and other work group information, employee
number, and pay grade or salary classification.
. If the organization
adopts a results approach, this section of the form would
include the name and description of each accountability,
objectives agreed upon by manager and employee, and the
extent to which the objectives have been achieved.

5. • Competencies and indicators. If the organization adopts a
behavior approach, this section of the form includes a definition
of the various competencies to be assessed, together with their
behavioral indicators.
• Major achievements and contributions. Some forms include a
section in which a rater is asked to list the two or three major
accomplishments of the individual being rated during the review
period. These could refer to results, behaviors, or both.
• Developmental achievements. This section of the form includes
information about the extent to which the developmental goals
set for the review period have been achieved. This can include
a summary of activities, such as workshops attended and
courses taken as well as results, such as new skills learned.

6. • Developmental needs, plans, and goals. This section of the
form is future oriented and includes information about specific
goals and timetables in terms of employee development.
• Stakeholder input. Some forms include sections to be filled out
by other stakeholders, such as customers with whom the
employee interacts.
• Employee comments. This section includes reactions and
comments provided by the employee being rated.
• Signatures. The final section of most forms includes a section
in which the employee being rated, the rater, and the rater’s
supervisor provide their signatures to show they have seen and
discussed the content of the form

9. CHARACTRISTICS OF
APPRAISAL FORMS
ROXINEBATULANON
REPORTER

10. ØWe should be aware that there is no such thing as a
universally correct appraisal form.
ØOne size does not fit all, and different components are
appropriate based on the purposes of the appraisal.

11. . Forms must be
easy to understand, easy to
administer, quick to complete,
clear, and concise.
Good forms include
information related directly to
the tasks and responsibilities of
the job; otherwise, they will be
regarded as an administrative
burden and not as a tool for
performance improvement.
Good forms
require that the raters provide
e v i d e n c e o f p e r f o r m a n c e
regardless of the performance
level.
. Good forms allow
managers in different functions
and departments to adapt them to
t h e i r p a r t i c u l a r n e e d s a n d
situations.

12. Good forms include all the major areas of
performance for a particular position for the entire review period.
. Desirable competencies and results are clearly
defined for all raters so that everyone evaluates the same
attributes.
. The meaning of each of the components of the
form must be successfully communicated to all people
participating in the evaluation process.
Good forms help clarify expectations about
performance. They address not only the past but also the future

13. DETERMINING
OVERALL RATING
MERJURYANNBAZAR
REPORTER

14. • After the form has been completed, there is usually
a need to compute an overall performance score.
• This is particularly necessary for making
administrative decisions such as the allocation of
rewards.
• Computing overall performance scores is also
useful in determining whether employees, and
groups of employees, are improving their
performance over time.

15. There are two main strategies used to obtain an
overall performance score for each employee:
Ø judgmental procedure
Ø mechanical procedure

16. Ø The judgmental procedure consists of considering every
aspect of performance and then arriving at a defensible
summary.
Ø The mechanical procedure consists of first considering the
scores assigned to each section of the appraisal form and
then adding them up to obtain an overall score.

18. Finally, you will notice that the form included in figure
6.3 includes sections labeled “comments”.
• These open-ended sections are common in most
appraisal forms. However, this infromation is typically
not used effectively.
t

19. Two chief reasons that comments are not used effectively:
Ø First, it is not easy to systematically categorized and
analyze such comments.
Ø Second, the quality length and content of these
comments may be more of a function of the culture of
the organization and the writing skills of the person
filling out the form than actual KSA’s of the employee
being rated.

20. Which strategy is the best: judgmental or mechanical?
Ø In most cases, the mechanical method is superior to the
judgmental method.
Ø A supervisor is more likely to introduce his or her own
biases in computing the overall performance score when no
clear rules exist regarding the relative importance of the
various performance dimensions and there is no direction
on how to combine the various performance dimensions in
calculating the overall score.
Ø As far as the computation of overall scores goes, the
mechanical method is superior to the judgmental method.

21. APPRAISAL PERIOD AND
NUMBER OF MEETINGS
ANGELMAECORSIGA
REPORTER

22. Ø Organizations with a performance management system
typically conduct an annual review; however, others
choose to conduct semiannual or even quarterly formal
reviews.
Ø Conducting only an annual review might not provide
sufficient opportunity for the supervisor and subordinate to
discuss performance issues in a formal setting.
Ø The recommendation then is to conduct a semiannual or
quarterly reviews.

23. When is the best time to complete the reviews?
Most organizations adopt one of two possibilities:
First, the appraisal form could be completed on or around
the annual anniversary date.
In the case of a semiannual reviews , the first review
would be six months before the annual anniversary date
and the second review would be on or around the
anniversary date.

24. The second choice is to complete the appraisal
forms toward the end of the fiscal year.
In the case a system including semiannual
reviews, one review would be completed halfway
throughout the fiscal year and the other one
toward the end of the fiscal year.

25. Performance management systems can include six formal
meetings between the subordinate and the supervisor:
Ø System inauguration
Ø Self-appraisal
Ø Classical performance review
Ø Merit/salary review
Ø Development plan
Ø Objective setting

26. System Inauguration
- includes a discussion of how the system works and the
identification of the requirements and responsibilities
resting primarily on the employee and on the supervisor
- this meeting is particularly important for new employees,
who should be introduced to the performance management
system as soon as they become the members of the
organization

27. Self-Appraisal
- involves the employee’s assessment of herself
- is informational in nature and, at this point, the
supervisor does not pass judgement on how the
employee regards her own performance
- this meeting provides an opportunity for the employee
to describe how she sees her own performance during
the period

28. Classical Performance Review
- during which employee performance is discussed,
includes both the perspective of the supervisor and that of
the employee
- this meeting is mainly past oriented and typically does
not focus on what performance should look like in the
future

29. Merit/Salary Review
- discusses what, if any, compensation changes will result
from the period’s performance
- it is useful to separate the discussion of rewards from
the discussion of performance so that the employee can
focus on performance first and then on rewards
- although these meetings are separate, supervisors
should explain clearly the link between the employee’s
performance, discussed in detail in a previous meeting,
and the rewards given

30. Development Plan
- discusses the employee’s developmental needs and
what steps will be taken so that performance will be
improved during the following period
- this meeting also includes information about what types
of resources will be provided to the employee to facilitate
the development of any required new skills

31. Objective Setting
- includes setting goals, both behavioral and result
oriented, regarding the following review period
- at this point, the employee has received very clear
feedback about her performance during the past review
period, knows what rewards will be allocated (if any),
understands developmental needs and goals, and knows
about resources available to help in the process of
acquiring any required skills

32. • Although these six meetings are possible, not all six take
place separately.
For example: the self-appraisal, classical performance
review, merit/salary review, development plan, and objective
setting meetings may all take place during one umbrella
meeting.
• Nonetheless, it is best to separate the various types of
information discussed so that the employee and the
supervisor will focus on each of the components separately.

33. WHO SHOULD PROVIDE
PERFORMANCE
EVALUATION?
GHIAMAECRUZ
REPORTER

34. 6.5.1 SUPERVISORS
Supervisors are often the main source of performance
information for employees. They are responsible for
monitoring and evaluating their direct reports' work
performance, providing feedback, and identifying areas
for improvement.

35. Advantages of Supervisors
as a Source of Performance
Information:
Ø best position to evaluate
performance in relation to
strategic organizational
goals.
Ø knowledgeable about
s t r a t e g i c i s s u e s ,
understand performance,
and are usually in charge
of managing employee
performance
D i s a d v a n t a g e s o f
Supervisors as a Source of
Performance Information:
Ø S u p e r v i s o r m a y n o t
observe her subordinates’
performance on a regular
basis
Ø Performance evaluations
given by the supervisor
may be biased

36. 6.5.2 PEERS
Peer as a source of performance information can be useful
because it provides insights into how well others in the
same industry or field are performing. This can help to set
benchmarks and goals for your own performance, and
identify areas where you may need to improve
Disadvantages of Peer Evaluations:
Ø friendship bias at work
Ø peers are less discriminating among
performance dimensions than are
supervisors
Ø context effects

37. 6.5.3 SUBORDINATES
Subordinates are a good source of performance information, as
they have the direct experience working with their supervisor and
can provide valuable insights into their leadership style,
communication skills, and overall effectiveness. This is the kind of
system where employees were given the responsibility to evaluate
the managers’ and supervisors of their leadership competencies,
including the delegation, organization, and communication.
Subordinates may be asked to rate their manager’s ability to:
Ø remove barriers that employees face
Ø shield employees from politics
Ø raise employees’ competence

38. 6.5.4 SELF
Self-evaluations can be a valuable source of performance
information, as they provide an opportunity for individuals to reflect
on their own strengths and areas for improvement.
Advantages of Self-Evaluations
Ø their acceptance of the resulting decision is likely to increase, and
their defensiveness during the appraisal interview is likely to
decrease
Ø employee is in a good position to keep track of activities during
the review period, whereas a supervisor may have to keep track
of the performance of several employees

39. Suggestions may improve the quality of self-appraisals:
Ø Use comparative as opposed to absolute
measurement systems.
Ø Allow employees to practice their self-rating skills.
Assure confidentiality.
Ø Emphasize the future.

40. 6.5.5 CUSTOMERS
Customers, and other key stakeholders in general,
provide yet another source of performance
information as they are the end-users of a product
or service and can provide direct feedback on its
quality, relevance and effectiveness.

41. 6.5.6 DISAGREEMENT ACROSS SOURCES: IS THIS A PROBLEM?
If performance information is collected from more than one
source, it is likely that there will be some overlap in the
dimensions measured (where it can lead to a redundancy
or duplication in the data collected, which can waste
resources and time). In addition to this, each source is
likely to evaluate performance dimensions that are unique
to each source. However, regardless of the final decision, it
is important that employees take an active role in deciding
which sources will rate which dimensions. Active
participation in the process is likely to enhance acceptance
of results and perceptions that the system is fair.

42. A MODEL OF RATER
MOTIVATION
JUDYANNDIVINAGRACIA
REPORTER

43. is likely to be
affected by biases that
di st or t t h e f o l l o w i n g
ratings.
m a y b e
i n t e n t i o n a l l y o r
unintentionally distorted
or accurate.
Ratings behaviors are
influenced by:
1. The motivation to
p r o v i d e a c c u r a t e
ratings
2. The motivation to
distort ratings

44. REASONS FOR RATING DISTORTION
RATING INFLATION
ØMaximize the merit raise/rewards
ØEncourage employees
ØAvoid creating a written record
ØAv o i d a c o n f r o n t a t i o n w i t h
employees
ØPromote undesired employees out
of unit
Ø Make manager look good to his
or her supervisor
RATING DEFLATION
Ø Shock employees
Ø Teach a rebellious employee a
lesson
Ø Send a message that employee
should consider leaving
Ø B u i l d a r e c o r d o f p o o r
performance

45. RECOMMENDATIONS TO INCREASE
ACCOUNTABILITY INCLUDE THE FOLLOWING:
Ø Have raters justify their ratings
Ø Have the raters justify their ratings in a face-to-face meeting

46. PREVENTING RATING DISTORTION
THROUGH RATER TRAINING
PROGRAMS

47. RATER TRAINING PROGRAMS have the overall
objective of providing raters with tools that will
allow them to implement the performance
management system effectively and efficiently.
These training programs also help prevent rating
distortion.

48. Training programs may cover the following topics:
Ø Reasons for implementing the performance management
system
Ø How to identify and rank job activities
Ø How to observe, record, and measure performance
Ø Information of the appraisal form and system mechanics
Ø How to minimize rating errors
Ø How to conduct an appraisal interview
ØHow to train, counsel, and coach

49. THANK YOU!!!
"Successful people are always looking for
o p p o r t u n i t i e s t o h e l p o t h e r s .
Unsuccessful people are always asking,
'What's in it for me?'" — Brian Tracy