Performance management handbook

http://4hrm.info/performance-management-handbook/

Overview about performance management

You can ref more information about performance appraisal by articles as below:

1. What is performance appraisal

2. Purpose of performance appraisal
3. Notes in performance appraisal
4. Performance appraisal overview
5. Objectives and policies of performance appraisal
6. The roles of job performance appraisal
7. Difference between performance appraisal and evaluation?
8. Performance appraisal criteria
9. Performance appraisal dictionary
10. Benefits of performance appraisal
11. Problems in performance appraisal
12. Why employees hates performance appraisal?
II. Methods of performance appraisal
These are 11 methods follows:

1. Critical incident method;

2. Weighted checklist method;
3. Paired comparison analysis;
4. Graphic rating scales;
5. Essay Evaluation method;
6. Behaviorally anchored rating scales;
7. Performance ranking method;
8. Management By Objectives (MBO) method;
9. 360 degree performance appraisal;
10. 10.Forced ranking (forced distribution);
11. Behavioral Observation Scales.

You can ref them in detail at:

1. Performance appraisal methods

2. 360 degree performance appraisal
III. Performance appraisal process
Stages of performance appraisal can include:

1. Setting up appraisal standards;

2. Appraisal plan;
3. Appraisal meeting;
4. Appraisal implementation;
5. Appraisal report;
6. Appraisal improvement.
You can ref them at:

1. Performance appraisal process

2. Performance appraisal interview
IV. Appraisal forms
You can use free over 50 forms of performance appraisal at:

• Performance appraisal examples

V. Appraisal improving

1. 5 advices on how to evaluate your employee’s performance

2. Roles of leaders in improving performance appraisal
3. 4 methods to improve performance appraisal
VI. Best performance appraisal resources
1. Phrases For Performance Appraisals. Benefits of this ebook include: A collection of hundreds of ready-to-use impactful
appraisal comments and phrases; Phrases to highlight your key strengths and achievements; Phrases to downplay your
weaknesses to soften the impact on your overall performance; A comprehensive list of phrases covering most of the categories of
KPIs used by many companies; Guidebook provided in Microsoft Word softcopy for your easy copy, paste and modify in your
appraisal form; Guidebook provided in Microsoft Excel spreadsheet so that you can use it also for your employees’ appraisals
and easy moderation! etc
2. Employee Performance Appraisals Forms. Benefits of this ebook include: Make your “fair” help good & make your
“good” help great; Improve efficiency; Save hours upon hours of time; Get what you want out of every hourly dollar you pay
your employees! Even your best employees need to know they are appreciated; Impress your boss or, if you are the boss,
motivate your staff by giving them the feedback they NEED to be a better employee etc
3. Employee Performance Review: Tips, Templates & Tactics. Contents of this ebook include: Probation policies and
templates, performance review tips, performance appraisal tips; Performance review tips, performance appraisal tips
performance review policies and templates; Performance review tips, performance appraisal tips learning & development
policies and templates; Performance review tips, performance appraisal tipspoor work performance policies and templates etc
4. Managers Guide to Performance. Contents of this ebook: How to deal with an employee who displays negative
behavior….help them deal with their own issues and change their behavior; How to coach an employee to higher
performance….employees want your leadership and will follow a strong manager; How to be clear about what you expect from
them….an employee always wants to know how to best perform; How to give your employees the opportunities to perform……if
they can’t or won’t, then how to let them go.
Author: Davi Ngo, hrvinet.com

Purpose of performance appraisal

Why you do performance appraisal? Purpose of performance appraisal include elements as follows:

1. Career Development

• This provides an opportunity for discussion of career objectives, and creation of a strategy designed to maximize
career potential.
• To provide an opportunity for career counseling
• To help in succession planning.
• To assess training needs
• To plan for career development
• To assess and develop individual abilities
• To provide an objective basis on which to base decisions about training and promotion

2. Feedback

• As well, feedback is encouraged in both directions: as such, employees are encouraged to prepare ratings of their
supervisors.
• To provide constructive feedback to the individual regarding how their performance is seen.
• This provides a structured format for the discussion of performance issues
• on a regular basis.
• Feedback either reinforces performance strengths, or provides the opportunity to discuss resolution of performance
deficiencies.

3. Administrative Uses of Performance appraisal

• Salary
• Promotion
• Retention/termination
• Recognition of performance
• Layoffs
• Identification of poor performers

4. Performance History

• This provides a performance history which is not dependent upon human memory, and which may be useful in the
full range of personnel decisions, including compensation decision-making.
• To review past and present performance, identifying strengths and weaknesses.

5. Organizational Goals

• To clarify, for the individual, organizational expectations

• This provides an opportunity to view one’s performance in the context of broader organizational goals.
• To assess future promotion prospects and potential
• To set objectives for the next period

6. Job Standards

This provides an opportunity for clearer articulation and definition of performance expectations.

7. Documentation use of of Performance appraisal

• Documentation for HR decisions

• Helping to meet legal requirements

Related documents

• Performance appraisal examples

• Performance appraisal procedure
• Performance appraisal methods
• Problems in performance appraisal
Author: Davi Ngo, hrvinet.com
Notes in performance appraisal
1. General rule

Generally, the staff will improve their way of work before performance appraisal and this will be recorded in the
appraisal. However, business should pay attention to that in the annual appraisal and appraise the whole process.
The staff’s working behavior will returned to their original status after performance appraisal is completed.

2. Concession in performance appraisal

Remember that concession in performance appraisal results in many troublesome problems. The concession will
offer the employees a highly appreciated result for mediocre work and they will be rewarded. However, the same
results will continue in their work because they are not assessed at their true worth, not recommended improvement.

3. Overlooking mistake

Overlooking mistake will also make mental troubles. The good staffs have less motivation to work because there no
difference between their rewards and that of bad staffs. Lack of strictness leads to concession. Once a high standard
is sustained, the appraisal accurately reflects the work of staff. The over-rigorous assessment reduces the
employee’s working motivation and makes them disappointed. They think that whatever they do, they also have not
got fit reward.

4. Consolidation of employee’s attitude

The consolidation of employee’s attitude focuses on the impact of working behavior. The manager plays a key role in
strengthening the staff’s current attitude and proving new working behavior.

Performance appraisal overview

Performance appraisal overview

What is performance appraisal

What is performance appraisal?
1. Definition of Performance appraisal of Wikipedia

Purpose of performance appraisal

Why you do performance appraisal? Purpose of performance appraisal include elements as follows:

March 23rd, 2010

Benefits of performance appraisal

Benefits of performance appraisal
I/ For the appraisee:

Problems in performance appraisal

PROBLEMS IN PERFORMANCE APPRAISAL
1. Problems with leniency and strictness:

March 21st, 2010

Performance appraisal criteria
Performance appraisal criteria
1. Appraisal criteria of top management

Performance appraisal dictionary

Performance appraisal glossary / dictionary / terms

March 25th, 2010

Difference between performance appraisal and evaluation?

First of all, We thank very much TALAT ZAHRA (email: sayyeds_zaidi@yahoo.com) about his contributions to this
site and our community.

August 11th, 2010

What is Performance improvement plan?

1. What is Performance improvement plan (PIP) in Performance Management System?

March 28th, 2010

Why employees hates performance appraisal?

Why employees hates performance appraisal

March 26th, 2010

5 advices on how to evaluate your employee’s performance

5 advices on how to evaluate your employee’s performance

Objectives and policies of performance appraisal

Objectives and policies of performance appraisal

1. Objectives of performance appraisal

• Improve performance effectiveness and feedbacks: the whole company.

• Plan human resources: promotion, especially in management, overtaking.

• Recruitment and selection: Score tabulation allows forecasting employee’s work accomplishment possibility and
measuring the effectiveness of tests.

• Development of human resources: Show the demand for training, education and development; identify employee’s
imperfections to be corrected.

• Career plan and development: Identify employee’s potential imperfections; help them to carry out the plan.

• Salary and treatment: Decision of salary increase, bonus increase.

• Inferior personnel tie: Promotion, reduction in grade, contract termination, work suspension, transfer.

• Employee potential appraisal: Based on employees’ work accomplishment, examine past activities to forecast future
performance. Common mistake is made when one of high professional capacity is promoted lacking leading capacity.
The evaluated object needs to be specified so that an objective appraisal is guaranteed.
2. Policies of performance appraisal

Specify in handbook or publicize at meetings. Managers must bring these in their minds.

• Maintaining encouragement of outstanding achievements.

• Maintaining leading quality improvement, bonus increase for those of good performance.

• Creating favorable conditions for employees to get involved in management decisions.

• Encourage employees’ integration and involvement in company’s structure and goals.

• Creating opportunities for employees to excel, demonstrate talent and potential.

• Managers support their employees, labor force.

• No breach of state laws and company’s disciplines, no bias.

Difference between performance appraisal and

evaluation?
First of all, We thank very much TALAT ZAHRA (email: sayyeds_zaidi@yahoo.com) about his contributions to this
site and our community.
1. Definitions of Wikipedia about performance appraisal and evaluation:
A performance appraisal, employee appraisal, performance review, or (career) development discussion[1] is a
method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and
time) typically by the corresponding manager or supervisor[2]. A performance appraisal is a part of guiding and
managing career development. It is the process of obtaining, analyzing, and recording information about the relative
worth of an employee to the organization.

This definition is used for both: performance appraisal and performance evaluation.

http://en.wikipedia.org/wiki/Performance_evaluation

http://en.wikipedia.org/wiki/Performance_appraisal

2. Performance appraisal definition of hr.unl.edu

hr.unl.edu/compensation/nuvalues/glossary.shtml

The method of evaluating an employee’s performance which involves tracking, evaluating and giving feedback on
actual performance based on key behaviors/competencies established in the goals that support the achievement of
the overall organizational mission.

3. Definition of job evaluation at wikipedia:

Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all
cases the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of
one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be
established.

4. Dheerajgoyal ‘s point of views:

I guess the basic difference is that once is a process & another an outcome .. An appraisal has to be preceded by
evaluation but the converse is not true .. An evaluation need not necessarily lead to appraisal , it may purely for
providing development opportunities or a basic snapshot/track down of the current level of performance ..

5. Samvedan ‘s point of views:

Both lead to your/organization’s judgement as to the performance of the individual in question. Appraisal sounds
more refined than the Evaluation, in that one is to “measure” against a yard-stick and the other is to judge (perhaps
even without “measuring”.)

In that sense Appraisal tend to be understood as more “objective” and the Evaluation” appears to be more
“subjective”. But this need not necessarily be so and how it will be depends upon the individual who appraises or
evaluates, his training, his competence on the job and his own personality strengths and weaknesses.

Performance appraisal dictionary

Performance appraisal glossary / dictionary / terms
1. Performance appraisal: also known as employee appraisal, is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of
career development.
2. Paired Comparison Method: Ranking employees by making a chart of all possible pairs of the employees for each
trait and indicating which is the better Employee of the pair.
3. Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in
various categories.
4. Graphic Rating Scale: A scale that lists a number of traits and a range of performance for each. The employee is
then rated by identifying the score that best describes his or her performance for each trait.
5. Alternation Ranking Method: Ranking employees from best to worst on a particular trait.
6. Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employee’s work-
related behavior and reviewing it with the employee at predetermined times.
7. Behaviorally Anchored Rating Scale (BARS): An appraisal method that aims at combining the benefits of narrative
and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor
performance.
8. Management By Objectives (MBO): Involves setting specific measurable goals with each employee and then
periodically reviewing the progress made.
9. Unclear Performance Standards: An appraisal scale that is too open to interpretation; instead, include descriptive
phrases that define each trait and what is meant by standards like “good” or “unsatisfactory.”
10. Halo Effect: In performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one
trait biases the rating of that person on other traits.
11. Central Tendency: A tendency to rate all employees the same way, avoiding the high and the low ratings.
12. Strictness / Leniency: The problem that occurs when a supervisor has a tendency to rate all subordinates either
high or low.
13. Bias: The tendency to allow individual differences such as age, race, and sex to affect the appraisal rates these
employees receive.
14. Appraisal Interviews: An interview in which the supervisor and subordinate review the appraisal and make plans
to remedy deficiencies and reinforce strengths.
Benefits of performance appraisal

I/ For the appraisee:

1. Increased motivation and job satisfaction.

2. Clear understanding of what is expected and what needs to be done to meet expectations.

3. Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations.

4. Improved working relationships with the superior.

5. Opportunity to overcome the weaknesses by way of counseling and guidance from the superior.

6. Increased sense of personal value as he too is involved in the appraisal process

II/ For the appraiser:

1. Opportunity to develop an overview of individual jobs.

2. Opportunity to identify strengths and weaknesses of appraisees.

3. Increased job satisfaction.

4. Opportunity to link team and individual objectives with department & organizational objectives.

5. Opportunity to clarify expectations that the manager has from teams and individuals.

6. Opportunity to re-prioritize targets.

7. Means of forming a more productive relationship with staff based on mutual trust and understanding.

8. Due to all above Increased sense of personal value

III/ For the company:

1. Improved performance throughout the organization due to:

• Increased sense of cohesiveness and loyalty.

• Managers are better equipped to use their leadership skills and to develop their staff.

• Effective communication of organization’s objectives and values.

2. Improved overview of tasks performed by each member of a group.

3. Identification of ideas for improvement.

4. Creation and maintenance of a culture of continuous improvement.

5. Communication to people that they are valued.

Problems in performance appraisal
1. Problems with leniency and strictness:

• The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates
consistently.
• Equally damaging one is assigning consistently low rates.

2. Problems with central tendency:

• Some raters appraise all the employees around the middle point of the rating scale and they avoid rating the people
higher or lower level.
• They follow play safe policy because of answer ability to management or lack of knowledge about the job and
person he is rating or least interest in his job.

3. Problems with personal prejudice:

If the rater dislikes any employee, he may rate them at the lower end and this may distort the rating purpose and
affect the career of these employees.

4. Problems with halo effect:

• To minimizing the halo effect, you should appraise all the employees by one trait before going to rate on the basis of
another trait.
• A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well,
even when such a rating is undeserved

5. Problems with recent performance effect:

In general, raters remember the recent appraisal of the employee and they usually follow appraisal results last time.

Why employees hates performance appraisal?

Why employees hates performance appraisal
I/ Why almost employees hates performance appraisal?

1. Lack of information about the purpose of appraisal

Many employees are not even aware that a good or bad appraisal can impact their career prospects.

2. Time consuming process:

The highly complex questions which they have no answers to or highly complex competencies which they have never
heard of confuse them.

3. Difficulty in writing appraisals:

Many employees have poor language skills and they are unable to communicate their performance in right language
and support with data.

4. Lack of faith in the appraisal process:

Employee think that his/her manager doesn’t write appraisals based on employee’s performance but bias his/her
decisions based on their personal relations with employees.

5. Lack of feedback after appraisal:

Many companies do not provide feedbacks to employees on their performance.

II/ How to decrease hating of employee?

1. HR manager should clearly define the purpose of appraisals to employees and to managers.

2. Train employees on writing appraisals: Another key to make employee appraisals effective is to provide training to
employees on appraisal writing skills.

3. Provide effective feedback: After an appraisal is done, let employees have a copy of the appraisal, then you let
them know how it impacted their salary, compensation and career.

4. Employees should be involved in appraisal process.