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1
Human Resource Management 2
Performance Management and
Appraisal interviewing
Nick Kinnie
2
Objectives
To recall why performance management is
important – in theory and practice
To understand the purpose and nature of the
appraisal interview in the performance
management process
To examine the different approaches and styles
of appraisal interviews
To give an opportunity to gain experience in the
practical aspects of appraisal interviewing
3
Performance Management and
Appraisal interviewing
Introduction – recall the uses, objectives and
problems of Performance Management
Performance appraisal - what is appraised?
Appraisal interviewing - styles, structure and
skills
Interviewing practice - some guidelines
Summing up
4
Introduction
Performance Management …
has a critical role to play in organisational
performance
is widespread (found in nine out of ten firms)
is vital to all employees
is increasingly carried out by line managers
is one of the most difficult tasks managers have to
carry out
(Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)
5
What do we mean by
performance management?
‘the policies, procedures and practices that focus on employee
performance as a means of fulfilling organisational goals and
objectives’
(Lowry (2002) in Marchington and Wilkinson (2005: 187-8))
‘establishing a framework in which performance by individuals can
be directed, monitored, evaluated and rewarded, and whereby
the links in the cycle can be audited’
(Mabey and Salaman (1995) in Torrington et al (2005: 261))
6
Performance Management:
why is it used?
Key role in linking the goals of the organisation
to the individual (vertical integration)
Gives a synergy with other HR practices eg
reward systems (horizontal integration)
Seeking to improve performance at an
organisational and individual level
Ritualistic aspects
7
How does a performance management
system look?
Organisational
objectives
Departmental/team
objectives
Individual
competencies
Setting of
performance standards
Monitoring and Assessment
Development Reward
Career
planning
8
Objectives of Performance
Management Systems
Set objectives and review performance
against objectives/standards
Personal development: identify training
and development needs and potential
Linking team and organisational
objectives
Source: Performance Management Survey Report September 2005 CIPD
9
Performance Management:
some problems
Conflicting purposes: judge/coach dilemma
Role of the appraiser: competence, motivation and values
Role of the appraisee: promotion and development
Appraiser/appraisee relationship: quality is key
Validity of the criteria: are they related to the job?
What is the quality of the data collected?
Impact of performance appraisal on performance
10
Conflicting aims
Organization
Seeking the
development of
individuals through
coaching
Seeking information
on which to base
reward and promotion
decisions
Individual
Seeking valid
performance
feedback for
development
Seeking rewards
and promotion
= conflict
11
Performance Appraisal: What is
appraised?
Non-criteria or evidence based – personal
evaluation
Rating traits – personal characteristics
Objectives – performance compared with
targets
Competencies/behaviours – displayed and
desired
12
Types of interaction
Enquiry
Selection
Attitude survey
Health screening
Exposition
Presentation
Lecture
Briefing
Joint problem solving
Appraisal
Counselling
Discipline
Conflict resolution
Negotiation
Arbitration
Torrington et al (2005: 71)
13
Performance Appraisal:
interviewing styles
Tell and sell: appraiser acts as a judge – tells
the appraisee the result and how to improve
Tell and listen: communicates outcomes and
listens to reactions
Problem solving: appraisee encouraged to
discuss problem areas and consider solutions
(Maier, N. (1976) The Appraisal interview – the three basic approaches)
14
Performance Appraisal:
interview structure
Preparation
Both parties need to prepare
Appraiser: What style to adopt? gather the evidence
from all parties
Appraisee: self assessment
Structure
Purpose and rapport – agree purpose and structure
Factual review – of the known facts
15
Appraisee views – comments on the last time period
(gone well/what could be improved/likes and
dislikes)
Appraiser views - asks questions, offers views and
comments
Problem solving – how can any differences be
resolved?
Objective setting – what actions should be taken, by
whom and on what time scale
(Torrington et al, 2005: 343)
16
Performance appraisal:
interviewing skills
Ask the right questions: open, probing, follow up
and reflective
Engage in active, careful listening to all forms of
communication
Provide feedback based on evidence and
examples
Avoid: a focus on failure, control by the
appraiser, ends with disagreement
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
17
Ideally an appraisal meeting is
where…
Appraisees do most of the talking
Appraisers listen actively and provide feedback
Scope for reflection and analysis – an exchange of
views
Performance is analysed not personalities
Whole period is reviewed not just isolated incidents –
evidence based
Achievement is recognised and reinforced
Identify areas for improvement – set agree objectives
Ends positively with agreed action plans to improve
performance
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
18
Summing up
Key strategic and individual role of performance
management – new developments
Key task for line managers but difficult to carry out
successfully
Powerful influence on behaviour – both positive and
negative
Requires careful support and implementation by line
managers
19
Features of Performance
Management Systems
% use % effective
Individual annual appraisal 65 83
Objective setting and review 62 82
Personal development plans 62 81
Career management 37 47
Coaching 36 46
Performance related pay 31 39
Competence assessment 31 39
Self appraisal 30 53
20
% use % effective
Twice yearly 27 38
360 degree 14 20
Continuous 14 20
Subordinate 11 17
Rolling 10 21
Peer 8 12
Competence related 7 11
Team 6 10
Contribution 4 6
Team pay 3 5
Source: Performance Management Survey Report September 2005 CIPD

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Hrm206performancemanagement

  • 1. 1 Human Resource Management 2 Performance Management and Appraisal interviewing Nick Kinnie
  • 2. 2 Objectives To recall why performance management is important – in theory and practice To understand the purpose and nature of the appraisal interview in the performance management process To examine the different approaches and styles of appraisal interviews To give an opportunity to gain experience in the practical aspects of appraisal interviewing
  • 3. 3 Performance Management and Appraisal interviewing Introduction – recall the uses, objectives and problems of Performance Management Performance appraisal - what is appraised? Appraisal interviewing - styles, structure and skills Interviewing practice - some guidelines Summing up
  • 4. 4 Introduction Performance Management … has a critical role to play in organisational performance is widespread (found in nine out of ten firms) is vital to all employees is increasingly carried out by line managers is one of the most difficult tasks managers have to carry out (Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)
  • 5. 5 What do we mean by performance management? ‘the policies, procedures and practices that focus on employee performance as a means of fulfilling organisational goals and objectives’ (Lowry (2002) in Marchington and Wilkinson (2005: 187-8)) ‘establishing a framework in which performance by individuals can be directed, monitored, evaluated and rewarded, and whereby the links in the cycle can be audited’ (Mabey and Salaman (1995) in Torrington et al (2005: 261))
  • 6. 6 Performance Management: why is it used? Key role in linking the goals of the organisation to the individual (vertical integration) Gives a synergy with other HR practices eg reward systems (horizontal integration) Seeking to improve performance at an organisational and individual level Ritualistic aspects
  • 7. 7 How does a performance management system look? Organisational objectives Departmental/team objectives Individual competencies Setting of performance standards Monitoring and Assessment Development Reward Career planning
  • 8. 8 Objectives of Performance Management Systems Set objectives and review performance against objectives/standards Personal development: identify training and development needs and potential Linking team and organisational objectives Source: Performance Management Survey Report September 2005 CIPD
  • 9. 9 Performance Management: some problems Conflicting purposes: judge/coach dilemma Role of the appraiser: competence, motivation and values Role of the appraisee: promotion and development Appraiser/appraisee relationship: quality is key Validity of the criteria: are they related to the job? What is the quality of the data collected? Impact of performance appraisal on performance
  • 10. 10 Conflicting aims Organization Seeking the development of individuals through coaching Seeking information on which to base reward and promotion decisions Individual Seeking valid performance feedback for development Seeking rewards and promotion = conflict
  • 11. 11 Performance Appraisal: What is appraised? Non-criteria or evidence based – personal evaluation Rating traits – personal characteristics Objectives – performance compared with targets Competencies/behaviours – displayed and desired
  • 12. 12 Types of interaction Enquiry Selection Attitude survey Health screening Exposition Presentation Lecture Briefing Joint problem solving Appraisal Counselling Discipline Conflict resolution Negotiation Arbitration Torrington et al (2005: 71)
  • 13. 13 Performance Appraisal: interviewing styles Tell and sell: appraiser acts as a judge – tells the appraisee the result and how to improve Tell and listen: communicates outcomes and listens to reactions Problem solving: appraisee encouraged to discuss problem areas and consider solutions (Maier, N. (1976) The Appraisal interview – the three basic approaches)
  • 14. 14 Performance Appraisal: interview structure Preparation Both parties need to prepare Appraiser: What style to adopt? gather the evidence from all parties Appraisee: self assessment Structure Purpose and rapport – agree purpose and structure Factual review – of the known facts
  • 15. 15 Appraisee views – comments on the last time period (gone well/what could be improved/likes and dislikes) Appraiser views - asks questions, offers views and comments Problem solving – how can any differences be resolved? Objective setting – what actions should be taken, by whom and on what time scale (Torrington et al, 2005: 343)
  • 16. 16 Performance appraisal: interviewing skills Ask the right questions: open, probing, follow up and reflective Engage in active, careful listening to all forms of communication Provide feedback based on evidence and examples Avoid: a focus on failure, control by the appraiser, ends with disagreement (CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
  • 17. 17 Ideally an appraisal meeting is where… Appraisees do most of the talking Appraisers listen actively and provide feedback Scope for reflection and analysis – an exchange of views Performance is analysed not personalities Whole period is reviewed not just isolated incidents – evidence based Achievement is recognised and reinforced Identify areas for improvement – set agree objectives Ends positively with agreed action plans to improve performance (CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
  • 18. 18 Summing up Key strategic and individual role of performance management – new developments Key task for line managers but difficult to carry out successfully Powerful influence on behaviour – both positive and negative Requires careful support and implementation by line managers
  • 19. 19 Features of Performance Management Systems % use % effective Individual annual appraisal 65 83 Objective setting and review 62 82 Personal development plans 62 81 Career management 37 47 Coaching 36 46 Performance related pay 31 39 Competence assessment 31 39 Self appraisal 30 53
  • 20. 20 % use % effective Twice yearly 27 38 360 degree 14 20 Continuous 14 20 Subordinate 11 17 Rolling 10 21 Peer 8 12 Competence related 7 11 Team 6 10 Contribution 4 6 Team pay 3 5 Source: Performance Management Survey Report September 2005 CIPD

Editor's Notes

  1. But outside work it’s been said we live in the audit society – greater emphasis on setting targets, collecting data, assessing performance against targets, constructing league tables – schools, hospitals, universities, best companies to work for – some say this an Anglo Saxon trait or an Anglo American trait Within this context lets have a look at PM
  2. To understand why performance management is important – in theory and practice To understand the role of the appraisal interview in the performance management process To examine the different approaches and styles of appraisal interviews To give an opportunity to gain experience in the practical aspects of appraisal interviewing
  3. Introduction – recall the uses, objectives and problems of Performance Management Performance appraisal - what is appraised? Appraisal interviewing - styles, structure and skills Interviewing practice - some guidelines Summing up
  4. Performance Management … has a critical role to play in organisational performance is vital to all employees – it involves giving and receiving feedback – this is a highly sensitive activity – the slightest word or turn of phrase can make a big difference is widespread Just over a third of these systems were new (developed since 1997) is increasingly carried out by line managers – as HR departments delegate this task to other managers – often unprepared for these roles sometimes have no training at all is one of the most difficult tasks that managers have to carry out
  5. Key role in linking the goals of the organisation to the individual Provides consistency with other HR practices eg reward systems Allows feedback to be communicated Ritualistic aspects
  6. Recall its widespread uses – 75% use PA in some form Randell Process whereby current performance in the job is observed and discussed for the purpose of adding value to that level of performance A&B appraisal has more top down connotations and review feels rather more joint Review past performance against objectives/standards – looking back over last period – often 12 months and considering performance against standards or against targets which were set
  7. Conflicting purposes – different parties may have different agendas – most basic of all is referred to as the judge coach dilemma – the same person who is coaching you and asking you to be open and honest about weaknesses etc is also judging you – perhaps for promotion or for a pay rise- this does not encourage openness Role of the appraiser – are they competent, motivated, what are their values, do they dislike the task, what are their own motives – get ‘their people’ promoted? – Halo, horns, stereotyping manipulating system to get rid of people doppleganger are they like me? Often ill prepared, they talk too much give information based on third party complaints rely on their gut feeling Role of the appraisee – seeking promotion, increase in pay or better job or wanting feedback for development and wanting someone to talk to openly – may systems will separate development – might be a mentor from appraisal Appraiser/appraisee relationship – quality of the relationship is key – must be consistent, how recent is the evidence, how trustworthy
  8. 3 types of criteria based systems – but most basic of all is where there are no criteria at all – staff are simply ranked by their manager without any criteria or evidence – these are my best people and I will reward then – either with payment or better jobs – simple, quick and informal but highly subjective, could be biased, discrimination and no evidence Traits – goes back to ideas that good leaders and managers have certain observable traits – not based on any evidence – often subjective assessment of performance Individual characteristics using tick boxes or comment boxes – how helpful, how reliable Ads simple cheap little training Disads No criteria or evidence, biased inconsistent is there a link to performance? ?
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  10. Tell and sell: appraiser acts as a judge – tells the appraisee the result and how to improve appropriate for junior or inexperienced staff who need guidance and are willing to accept this – dangers – will not listen – disagree – leads to argument and disaffection – assumes limited ability to reflect Tell and listen: communications outcomes and listens to reactions – better chance of commitment – may be used cynically – used for more reflective people – better for open ended jobs where Problem solving: appraisee encouraged to discuss problem areas and consider solutions – better chance of commitment to the problem and the solution, takes time, requires ability to reflect and consider consequences
  11. Preparation Form of the interview Self appraisal Gathering the evidence Structure Purpose and rapport Factual review Appraisee views
  12. Appraisee views Appraiser views Problem solving Objective setting
  13. Ask the right questions: open, probing, follow up and reflective Active, careful listening to all forms of communication Feedback based on evidence and examples
  14. Appraisees do most of the talking Appraisers listen actively and provide feedback Scope for reflection and analysis – an exchange of views Performance is analysed not personalities Whole period is reviewed not just isolated incidents – evidence based Achievement is recognised and reinforced Identify areas for improvement – set agree objectives Ends positively with agreed action plans to improve performance (CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
  15. Recent developments – more widespread use of PMS – very powerful but needs to be handled very carefully – cult of the amateur around – appraisers need to be trained and developed if it is to be a success. One of the ironies that as PM becomes more widely used we become more aware of its short comings – but in the right hands it can be a powerful tool for improving employees well being and performance at work, in the wrong hands can have a negative effect. Key strategic and individual role of performance management Key task for line managers but difficult to carry out successfully