What Do You Know About Performance Appraisals?(cont.)

Transcription

1 What Do You Know About Performance Appraisals? Performance appraisals need to be formal and highly-scripted affairs Employees need to be very involved in their performance appraisals Supervisors should start performance appraisal meetings with the bad news first Goal setting is a big part of performance appraisals Documentation is not a big part of performance appraisals Interactive Exercise: What Do You Think Discussion Start the presentation by discussing participants impressions of and expectations for performance appraisals what they can and cannot accomplish. The answers will get participants thinking hands-on about conducting appraisals. Display the questions one at a time to generate reactions on each point. For the record, the answers are F, T, F, T, and F, but this slide is intended as a discussion starter, so this isn t a right-wrong quiz. All these statements will be addressed throughout the presentation. Let s start by looking at some statements about performance appraisals and discussing whether they are true or false. We will cover all these topics throughout the presentation, so let s start thinking about them now. Performance appraisals need to be formal enough for meaningful and productive interaction, and the performance appraisal meeting should have a general agenda, but there also needs to be ample room for feedback and discussion. Employees definitely need to be involved to make performance appraisals as effective as possible. Always begin performance appraisals with the positives in performance and in purpose. Setting goals is a part of successful job performance from the first day on the job! Documenting performance appraisals is absolutely necessary to make them the most effective tool possible for everyone involved. 2

2 What Do You Know About Performance Appraisals?(cont.) You ll never have to do a performance appraisal for a former peer Performance measurements need to be specific and objective Raises always come directly from good performance appraisals Performance appraisals provide a useful tool for guarding against discrimination Interactive Exercise: What Do You Think Discussion Start the presentation by discussing participants impressions of and expectations for performance appraisals what they can and cannot accomplish. The answers will get participants thinking hands-on about conducting appraisals. Display question one at a time to generate reactions on each point. For the record, the answers are F, T, F, and T, but this slide is intended as a discussion starter, so this isn t a right-wrong quiz. All these statements will be addressed throughout the presentation. Doing a performance appraisal for former peers may be awkward, but it is not uncommon. In order for performance measurements to have meaning for employees, they need to be both specific and objective. Otherwise, they re just opinions. Pay is often linked to performance appraisals, but not all companies give raises directly after a performance appraisal meeting. Performance appraisals help companies guard against discrimination by focusing on and documenting performance. 3

3 Performance Appraisal Primer Performance appraisals offer an effective way to: Recognize accomplishments Guide progress Improve performance Bring your company s handbook and adapt this slide s overview of performance appraisals with your company s official policy on appraisals. For our organization to be successful, all of us need to be able to perform to the best of our abilities. We can only do so if we have adequate feedback and clearly defined goals. Performance appraisals are an essential tool for accomplishing these tasks. They offer a formal and official way to: Recognize accomplishments. Every company will define recognizable accomplishments differently, but it s important to have a reward system in place. Guide employee progress. Effective performance appraisals continue to refine the initial job description of what is expected of employees as they learn new skills and gain experience. Improve performance. Whether making good performance better or correcting poor performance, performance appraisals are an important step in identifying the situation and laying out the course for improvement. 4

4 Performance Appraisal Primer (cont.) Performance appraisal meetings allow employees to: Review performance Set goals Identify problems Discuss career advancement Bring your company s handbook and adapt this slide s overview of performance appraisals with your company s official policy on appraisals. Performance appraisal meetings provide the opportunity to: Review how well employees have met job requirements and goals. Set new performance goals, including additional responsibilities. Identify areas in which performance needs to be improved. Discuss career advancement, including training opportunities and promotion. 5

5 Performance Appraisal Benefits Appraisals offer companies: Documentation Employee development Feedback Legal protection Motivation system Interactive Exercise: Benefits Discussion Before revealing the bullets, ask participants to list the benefits of performance appraisals for companies. Performance appraisals offer many benefits to companies, including: Documentation of performance issues, disciplinary actions, written goals, etc., and all signed by the involved parties A system for providing employee development opportunities A regular outlet for providing performance feedback Legal protection should the company be involved in accusations of discrimination or illegal termination, etc. Morale boost to motivate employees through a recognized and defined reward system 6

6 Performance Appraisal Benefits (cont.) Appraisals offer employees: Direction Feedback Input Motivation Interactive Exercise: Benefits Discussion Before displaying the bullets, ask participants to list the benefits of performance appraisals for employees. Performance appraisals offer many of the same benefits to employees, including: Clear direction in their work regarding what s expected of them and of their role in the company s overall goals A regular outlet in which to receive feedback on performance and expectations A regular time in which to give input on their job, their department, or the company Motivation to perform their best because they know they will be recognized and/or rewarded 7

7 The Performance Appraisal Form Defines performance expectations Describes measurement tools Uses rating system Covers specific examples Sets measurable goals Bring your company s appraisal forms and customize the discussion to go over your forms. You may want to make copies to hand out to participants. In order to be most effective, performance appraisal forms need to be well constructed and easy to understand. Not all performance appraisals are alike, but they all need to contain some form of the following items. Well-defined performance expectations in areas that include: adaptability communication skills cooperation dependability initiative innovation job knowledge organization productivity quality of work Clearly described measurement tools Concrete rating system Space to write down specific job examples Section for setting timely, measurable goals 8

8 Measure Performance Measurement systems need to be: Specific Fair Consistent Clear Useful Continue to customize this slide to your own company s performance measurement system. There are many ways to measure performance, but the main thing to remember is that the more objective the measurement, the better. Use specific rating scales whether numbers or terms when assessing performance. Use a system that is fair and flexible in assessing workplace situations and performance. Be consistent in using the same measurement systems for all employees. Make sure the measurement system is clear about what is being measured. Also make sure it is understood by all employees. Measurements need to be a useful tool that enables supervisors to give a meaningful assessment as well as enabling employees to know exactly how their performance measures up. 9

9 Measure Performance (cont.) Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented Continue to customize this slide to your own company s performance measurement system. One of the most common rating scales is numerical because numbers are perceived to be the most objective. It s a good idea to also attach words describing what each number means, however, to make sure the numbers are used consistently. For example, on a 1 to 5 scale, 1 could mean well below standard, 3 means meets standards, and 5 means well above standard. Measurement terms can also be used as long as they are specific, meaningful, and distinct from one another. A typical spread goes from unsatisfactory through satisfactory to outstanding. Management by Objectives (MBO) is a system of ratings that measure how well an employee reached specific goals or objectives, such as producing x number of pieces per shift or making x number of calls per hour. Systems can also measure effort or results with behaviors you can observe and track, such as attendance or initiative. 10

10 Set Goals Based on job requirements Measurable Observable Challenging Flexible Prioritized Emphasize that goals are the centerpiece of an effective performance appraisal. They need to be realistic, practical, and achievable. They need to be agreed upon by supervisor AND employee. They need to evolve with time on the job. Since goal-setting is central to an effective performance appraisal, it s crucial to get them right. This pressure can be intimidating, but fortunately we don t have to start from scratch. We can start with the position s job description. In other words, meeting and exceeding whenever possible job requirements is the foundation of every goal. Make sure goals are measurable, which means that they are specific and practical. Goals also need to be observable in any number of areas, including time spent or results produced. Goals need to remain challenging. Once previous standards are met, raise the bar. Also make goals flexible if work situations or personnel change and job duties are adjusted, for example. Finally, make sure goals are clearly prioritized. 11

11 Get Involved Employees take an active role Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the performance appraisal meeting Again refer to your company s performance appraisal policy as it relates to employee involvement and be sure to emphasize the necessity of getting involved in your performance appraisal. For the performance appraisal process to be most effective, employees need to get involved from the beginning. They need to take an active role in: Setting their performance goals Designing the action plans to help them achieve their goals Identifying their professional strengths and weaknesses, and giving their input about how to improve these identified areas of their performance Employees also need to be very involved in the performance appraisal meeting from preparation through the final report. Employees are much more fully invested in their performance when they play a large part in designing and guiding it. 12

12 Prepare for the Performance Appraisal Meeting Employees Review performance and career goals Complete written appraisal Supervisors Complete written appraisal Schedule time and place Interactive Discussion: What Do You Do? Ask participants what they do to prepare for a performance appraisal meeting whether they re giving one or receiving one. Employees need to prepare for their performance appraisal meeting by reviewing their performance and, as objectively as possible, considering how well they have met their goals. Employees then need to prepare a written appraisal of their performance, using the company s appraisal form. Supervisors also need to objectively review employee performance and write their conclusions on the company appraisal form. In addition, supervisors need to schedule a time and place for the meeting and give employees ample notice of the meeting time so that employees have enough time to complete their report. 13

13 Start the Meeting Lay out agenda Talk about money Encourage input Give good news first Emphasize how important it is to get the meeting off on the right foot. Start the performance appraisal meeting by laying out a flexible agenda that includes plenty of time for feedback and discussion. Also set a positive tone with a few comments reminding employees that the purpose of the performance appraisal is to improve performance and not to find fault or cast blame. Talking about money is a sensitive area. Raises are often associated with performance appraisals, and employees may expect to receive a raise immediately after their performance appraisal, especially if they receive a good evaluation. It s very important, therefore, to make sure employees know company policy on raises preferably before you begin the performance appraisal meeting. If you re unsure whether employees know the policy, you may want to mention it at the beginning of the meeting so that employees can concentrate on performance issues separate from pay issues at this time. Encourage input right from the beginning by asking for employees understanding of every point of discussion. For example, ask employees for their own review of their performance and to give examples of their progress before you give your assessment. Give the good news first about employees successes, goals exceeded, and goals met. This process continues the positive and productive nature of the meeting. 14

14 Presentation Tips Focus on the professional Give objective examples Invite response Listen Create we mentality Interactive Exercise: Tips Ask participants for any tips they use when conducting performance appraisal meetings to make them as cooperative and productive as possible. As mentioned in the introduction, performance appraisals are considered one of the hardest topics on which to train. A major reason for this difficulty is the sensitive nature of being on review. Presentation of the issues during performance appraisal meetings, therefore, is very important. Make sure you always keep the conversation focused on professional behavior and performance. Don t get personal. Also stick to objective examples, especially when pointing out an area that needs improvement. Continue to invite response from employees throughout the meeting; never let it be one-sided. Listen actively by looking at employees, nodding, and using affirmative phrases such as okay and I see. Use all of these tips to create a we mentality, which shows that supervisor and employee are working together to help the employee give the best performance and have the best career opportunities that are available. 15

15 Conduct the Meeting Review performance Based on previous goals Noting strengths and accomplishments Identifying areas for improvement Set goals Based on company goals Building on areas that need improvement Customize this discussion about the flow of a performance appraisal meeting to your company s format or performance appraisal form. Go over your company s policy on raises and their relation to performance appraisals. Review performance specifically as it relates to the goals that were set at the last performance appraisal. Make note of strengths and accomplishments during the period so that employees know that you noticed. Also note where performance fell short, but do so along with encouragement and a listing of any resources, such as training or coaching, that can help employees meet their goals. Set goals for the next period based on company goals and employee performance. For example, if the company sets new production standards, create employee goals that help employees help the company meet its goals. Or if an employee has not met previous goals, reassert the goals but in a modified form that you and the employee agree is a realistic challenge. 16

16 End the Meeting Give good news last Lay out action plan Communicate outcome of goals not met Confirm understanding Bring an example of an effective action plan. It may be true that beginnings are easy and endings are hard, but an effective performance appraisal meeting MUST end on a high note in order to motivate employees to do their best. End on a positive note by letting employees know where they re doing a good job and encouraging them to take advantage of professional opportunities to improve their performance even more. Lay out a detailed action plan that includes measurable tasks and a timetable for accomplishing them. Confirm that employees know what will happen if they don t improve with specifics (i.e., failure to improve production within 30 days will result in discipline up to and including termination). Make sure employees understand what s expected of them in the action plan and are in agreement that the plan is realistic and challenging. 17

17 Continuous Feedback Frequency of performance appraisals Informal performance appraisals Keep the process going Go over your company s policy regarding frequency of performance appraisals, both formal and informal. Most companies do at least an annual review. Some do semiannual or even quarterly reviews. Some also have new employee probationary reviews. Not all of these performance appraisals are formal, however. Informal performance appraisals can be helpful, too, especially if a performance problem arises and the annual review is months away. Or if an employee makes an outstanding accomplishment that needs to be recognized and/or rewarded outside the regularly scheduled review. The main point is to keep the feedback flowing. Create an atmosphere of open communication between supervisor and employee so that performance issues can be discussed as they happen. With a climate of continuous feedback in place, formal performance appraisal meetings can be much more comfortable events. 18

18 Recognize Outstanding Performance Verbal Public Tangible Monetary Interactive Exercise: Reward Systems Ask participants for their opinions on what rewards are the most motivating. Positive reinforcement is a proven effective tool for encouraging outstanding performance, and there are many ways to accomplish this. The simplest and easiest is to verbally acknowledge a good job at the time it s accomplished. This can be in private or in the presence of co-workers and is a verbal pat on the back that gives anyone a lift. Public recognition of accomplishments is another, more formal and more important, reward for accomplishment. This can be done through an announcement at a companywide meeting, an article with photo in a company newsletter, or even a write-up in the local newspaper. Some companies have formal recognition programs that occur on a monthly or quarterly basis. Tangible rewards include time off, a new piece of equipment or an upgrade, or a move to a bigger office. Monetary rewards include more than raises. Gift certificates or bonuses are also valuable and motivating rewards. 19

19 Identify Poor Performance Act early Take the right approach Deal with employee reaction Handle continued poor performance Customize this discussion to cover your company s policy on poor performance. Early intervention is key to successfully dealing with sub-par performance. Act immediately when you see a performance problem don t wait for the next performance appraisal. Use tact when you approach an employee about performance problems, but be direct. Focus on the particular issue with specific examples of the behavior and with encouraging comments and a listing of resources to help the employee improve. Be prepared to deal with employees reactions to being criticized. Remain calm if employees get upset. Keep the discussion focused on ways to get performance back on track. Ask for the employees input on what help they need to improve performance. There may be occasions when performance does not improve. Whether it s because employees are unable or unwilling to improve, the written performance appraisal is a valuable tool that documents performance problems as well as plans for improvement. This document forms a basis from which to adapt im-provement plans for employees who are unable to meet certain goals. It also serves as formal, objective evidence of performance problems for employees who are unwilling to improve, and it can be the basis for discipline procedures. 20

20 Discipline Poor Performance Recognize problems Talk with employee Follow company policy Customize this discussion to cover your company s performance and discipline policies. The performance appraisal process helps identify and track problems. In most cases, the outcome is improved performance: Problem solved. But not always. The continuous feedback system will keep you in tune with employees so that you can recognize when problems continue. Talk with employees as soon as possible after you become aware of a continuing problem and encourage them with specific resources that are available to help them meet expectations. At the same time, be clear about company policy regarding performance. Follow your company s discipline policy. Talk with your human resources director to make sure you understand the steps to take. In fact, you may want to have a representative from HR present when you meet with employees. Typical disciplinary steps include, in order: Verbal warning Written warning Suspension or layoff without pay Discharge 21

21 Avoid Discrimination Discrimination laws are about performance Performance appraisals document performance Similar performance issues must be treated the same way for every employee You may want to briefly cover your company s discrimination policies to emphasize how performance appraisals can help avoid discrimination. There are many equal employment opportunity laws that are intended to provide fair and unbiased opportunities for all employees in the workplace. The following laws ensure that it s all about performance: Americans with Disabilities Act Telecommunications Act Fair Housing Act Rehabilitation Act Voting Accessibility for the Elderly and Handicapped Act National Voter Registration Act Architectural - Barriers Act Since performance appraisals are all about performance, too, they offer a valuable process for helping companies avoid discrimination. Effective performance appraisal systems promote fairness because they keep the focus on individual employees job descriptions, goals, and performance. Provide performance-based reasons and documentation for each raise, promotion, or other employment decision. Remember that preferential treatment often results in claims of discrimination. When evaluating performance or failure to perform, therefore, treat individual cases equally in terms of discipline, documentation, and opportunity given to improve. 22

22 Handle Hard Cases Reviewing emotional employees Rating former peers Interactive Exercise: Troubleshooting Discussion Ask participants who have given performance appraisals how they handled employees emotional response to negative feedback. Also ask how participants handle rating former peers. No one enjoys receiving negative feedback. That s why it s important to stick to the measurable details of a performance problem. But even with this approach, some employees may still react emotionally to being criticized. Reactions range from crying or revealing personal problems behind the poor performance to shouting or even threatening violence. If supervisors suspect such a reaction from employees, they may want to have a representative from Human Resources sit in on the performance appraisal meeting. It can also be uncomfortable to do a performance appraisal of former peers. Employees who used to be your co-workers may expect to automatically receive high ratings on their performance appraisal. But you owe it to the company and to them to give an honest assessment of their performance. Again, stick to the specifics of stated goals and assess progress in an objective manner. 23

23 Test What You Know 1. Performance appraisals offer an effective way to,, and. 2. Which of the following benefits do companies reap from performance appraisals? a. Legal protection c. Employee development b. Feedback d. All of the above 3. List three things effective appraisal forms should do. 4. Measurement systems need to be specific, fair, consistent, clear, and. We have provided this review as a Word file on the CD. You can go over the quiz on the slide only or print out copies and have participants take the review first before discussing the answers. Customize the speaker s notes on the basis of the method you choose. The review questions are designed to reemphasize the main points about the Americans with Disabilities Act and to clear up any lingering confusion about this important subject. We ve also included a Certificate of Completion file on the CD, which you can print out and hand out to participants who complete the session. Be sure to sign and date it. Let s review what we ve learned today about how the Americans with Disabilities Act helps employers provide equal opportunities when finding the right person for the job. 24

24 Test What You Know (cont.) 5. Performance goals should be based on an employee s. 6. What should supervisors do to prepare for performance appraisal meetings? 7. Supervisors should encourage employee right from the start of the meeting. 8. Meetings should focus on performance examples that show whether stated performance goals have been met. 25

25 Test What You Know (cont.) 9. List some effective reward systems for peak performers. 10. How do performance appraisals help companies avoid discrimination? 26

26 Test What You Know Answers 1. Performance appraisals offer an effective way to recognize accomplishments, guide progress, and improve performance. 2. What benefits do companies reap from performance appraisals? a. Legal protection c. Employee development b. Feedback d. All of the above 3. List three things effective appraisal forms should do. Define performance expectations, describe measurement tools, use rating system, cover specific examples, and set measurable goals. 27

27 Test What You Know Answers (cont.) 4. Measurement systems need to be specific, fair, consistent, clear, and useful. 5. Performance goals should be based on an employee s job description. 6. What should supervisors do to prepare for performance appraisal meetings? Write up a performance appraisal; schedule a time and place. 28

28 Test What You Know Answers (cont.) 7. Supervisors should encourage employee input right from the start of the meeting. 8. Meetings should focus on objective performance examples that show whether stated performance goals have been met. 9. List some effective reward systems for peak performers. Verbal, public, tangible, monetary 10. How do performance appraisals help companies avoid discrimination? They document performance. 29