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Performance Appraisal Optimization
- 1. Performance Appraisal Ben Dattner, Ph.D.
- 2. Performance appraisal Setting goals for the appraisal system Developing criteria for successful performance Creating metrics for evaluating performance Selecting reviewees and reviewers Considering the timing of feedback Organizing logistics for the report and meeting Giving candid and constructive feedback Following up to ensure that the system works © 2010 Dattner Consulting, LLC 2
- 3. Setting goals • Developing criteria Setting goals • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Well-designed Performance Appraisal systems: • Recognize and record an employee’s contributions • Give employees useful performance feedback • Enable a more effective and equitable reward system • Develop the professional capabilities of employees • Communicate the organization’s values and culture • Help the organization make evidence-based, legally defensible personnel decisions © 2010 Dattner Consulting, LLC 3
- 4. Setting goals • Developing criteria Setting goals • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Evaluation • Prediction of future performance based on past performance • Retention decisions and succession planning • Compensation Development • Assessment for training and development • Career planning © 2010 Dattner Consulting, LLC 4
- 5. • Setting goals Developing criteria Developing criteria • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Criteria should be: • Aligned with organizational goals • Relevant to given roles • Specific and measurable • Under employees’ control • Understood and accepted by participants © 2010 Dattner Consulting, LLC 5
- 6. • Setting goals Developing criteria Developing criteria • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Criteria can be based on: • Quantitative and/or qualitative factors • Competencies and/or performance • Effort and/or results • Frequency of behaviors © 2010 Dattner Consulting, LLC 6
- 7. • Setting goals • Developing criteria Creating metrics Creating Metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Ratings can be on the basis of: • General or specific standards or expectations • Improvement on past performance • Rankings or comparison to others © 2010 Dattner Consulting, LLC 7
- 8. • Setting goals • Developing criteria Creating metrics Creating Metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Rating scales differ in terms of: • Definition of ratings • Number of possible ratings • Presence or absence of a midpoint © 2010 Dattner Consulting, LLC 8
- 9. • Setting goals • Developing criteria Creating metrics Creating Metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Types of rating scales: • Graphic Rating Scales • Ranking • Forced Distribution • Behaviorally Anchored Rating Scales (BARS) © 2010 Dattner Consulting, LLC 9
- 10. • Setting goals • Developing criteria Selecting reviewees and reviewers • Creating metrics Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Following up Reviewees can be: • Everyone in the organization • Assigned by managers • Selected by level • Selected by division or department • Self-selected © 2010 Dattner Consulting, LLC 10
- 11. • Setting goals • Developing criteria Participants (Continued) • Creating metrics Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Follow up Reviewers can be designated by: • Manager • Human Resources • Reviewee © 2010 Dattner Consulting, LLC 11
- 12. • Setting goals • Developing criteria Participants (Continued) • Creating metrics Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback • Follow up Reviewers can include: • Reviewee • Manager • Peers • Subordinates • Clients or customers © 2010 Dattner Consulting, LLC 12
- 13. • Setting goals • Developing criteria Considering timing • Creating metrics • Selecting reviewees and reviewers Considering timing • Organizing logistics • Giving feedback • Following up Performance can be appraised: • After each project is completed • After a milestone is reached • Quarterly • Semi-annually • Annually © 2010 Dattner Consulting, LLC 13
- 14. • Setting goals • Developing criteria Organizing logistics • Creating metrics • Selecting reviewees and reviewers • Considering timing Organizing logistics • Giving feedback • Following up Data can be gathered by or in: • Written surveys • Intranet or internet • Individual discussions • Group meetings © 2010 Dattner Consulting, LLC 14
- 15. • Setting goals • Developing criteria Organizing logistics • Creating metrics • Selecting reviewees and reviewers • Considering timing Organizing logistics • Giving feedback • Following up The process can be coordinated by: • Employee • Manager • Human Resources • An outside vendor © 2010 Dattner Consulting, LLC 15
- 16. • Setting goals • Developing criteria Giving feedback • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics Giving feedback Feedback reports can include: • Following up • Attributed ratings and comments • Anonymous ratings and comments • Statistics and comparisons • Weighted or unweighted ratings • By competency • By reviewer • Competencies necessary for advancement © 2010 Dattner Consulting, LLC 16
- 17. • Setting goals • Developing criteria Giving feedback • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics Giving feedback • Following up Feedback reports can be (or not be): • Filtered or summarized by manager • For an employee’s file • Shared with others • Reviewed and approved by others • Inclusive of tables or graphics © 2010 Dattner Consulting, LLC 17
- 18. • Setting goals • Developing criteria Giving feedback • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics Giving feedback • Following up Feedback is least useful when it is: • Inaccurate or untrue • Biased due to favoritism or politics • Insensitive and unduly critical • Not specific or actionable • Constituted by orders or ultimatums © 2010 Dattner Consulting, LLC 18
- 19. • Setting goals • Developing criteria Giving feedback • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics Giving feedback Feedback is most useful when it is: • Following up • Candid and honest • Specific and actionable • Based on more than one incident or example • Based on more than one person’s view • Framed positively and constructively • Behaviorally based rather than personality based • Summarized and integrated into key themes © 2010 Dattner Consulting, LLC 19
- 20. • Setting goals • Developing criteria Giving feedback • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics Giving feedback • Following up Feedback meetings can include: • Discussion of • Strengths and development needs • Compensation • Team challenges and opportunities • Development and career planning • Goal setting for upcoming performance cycle • Upward feedback © 2010 Dattner Consulting, LLC 20
- 21. • Setting goals Following up • Developing criteria • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback Follow up for the individual can include: Following up • A written development plan with goals, timelines and responsibilities • Progress reports • Additional meetings with manager • Training to build on strengths and address needs • “Stretch” assignments or rotations • Coaching • Mentoring © 2010 Dattner Consulting, LLC 21
- 22. • Setting goals Follow up • Developing criteria • Creating metrics • Selecting reviewees and reviewers • Considering timing • Organizing logistics • Giving feedback Follow up for the organization: Following up • Use aggregated ratings for gap analysis and needs assessment • Track performance appraisal statistics to measure the success of the management development system • Train new hires and periodically retrain reviewers about how to evaluate reviewees and give useful feedback • Periodically survey reviewees and reviewers about the costs and benefits of the system • Ensure that the performance appraisal system is in alignment with evolving organizational and business goals © 2010 Dattner Consulting, LLC 22
- 23. Conclusion A well-designed performance appraisal system supports an integrated human resource strategy which enables the attainment of organizational and business goals © 2010 Dattner Consulting, LLC 23
- 24. Ben Dattner, Ph.D. ben@dattnerconsulting.com 212-501-8945 www.dattnerconsulting.com © 2010 Dattner Consulting, LLC 24