Chapter 9: Performance Leadership

• Performance Standards• Essentials of Performance

Evaluation• Making the Evaluation• The Appraisal Interview• Follow-Up• Legal Aspects of

Performance Evaluation

Performance Standards

• Each performance standard states 3 things about each unit of the job:– What the employee is to do.– How it is to be done. – To what extent it is to be done (how much, how well,

how soon).

• Job descriptions are often used in recruiting, evaluating applicants, & training. – They are also useful in assigning work, evaluating

performance, & deciding on disciplinary action.

Performance Standards

• If you develop a full set of performance standards for each job classification you:– have the basis for a management system for your people & the

work they do. – can use them to describe the jobs, to define the day’s work for

each job, & to train employee’s. – can use them as a basis for rewarding achievement. – can use them as diagnostic tools to pinpoint ineffective

performance. – can use them in disciplining workers.

Performance Standards:In Recruiting & Hiring

• Defines the job.

• Aids in planning & forecasting.

• Provides a method of testing skills.

• Defines a day’s work.

Performance Standards: In Training

• Provides blueprints for a training program.

• Sets a competency standard for job performance.

Performance Standards: Evaluating Performance

• Provides an objective evaluation method.

• Pinpoints needs for improvement.

• Identifies superior workers.

Performance Standards: In Your Job & Career

• Helps you to develop managerial skills.

• Reduces crisis management.

• Provides time for true management.

Setting up a Performance Standard System3 Essentials for Success:

1. Employee participation: better results, commitment, & morale.

2. Active supervisory leadership & assistance throughout: be in charge at all times but, work together.

3. Built in reward system: rewards linked to how well each worker meets the performance standards.

Defining the Purpose

• The first step is to define the purpose for which standards will be used.

• This should define a day’s work, set standards, develop training programs, & evaluate on the job performance.

Analyzing the Job

• The next step is to analyze the job & break it down into units.

• You & your crew identify units of work that are performed.

• List in order of performance all the tasks in the units-rate them according to value.

• Sometimes it is appropriate to define the 3 levels of performance:

1. Optimistic

2. Realistic

3. Minimum

Writing the Performance Standards

• Be specific, clear, complete,& accurate.

• Be measurable & observable.• Be attainable.• Conform to company policies,

goals, legal & moral restraints.• Certain kinds of standards

must have time limits set for achievement.

Developing Standard Procedures

• The next step is to develop standard procedures.

• These state what a person must do to achieve the results, they give spelled out instructions for the action.

• Functions: – To standardize procedures you want followed.– To provide a basis for training.

• Do not: – Get carried away on detail.– Make rigid rules when there is a choice on ho

things can be done.

Training Standards

• A training program should have a training objective for each standard.

• Training objective: a trainers’ goal- a statement, in performance terms, of the behavior that shows when training is complete.

Evaluating on the Job Performance

• The first evaluation is a test of both the workers & the system.

• If the workers meets all the standards- rewards are in order.

• This also indicates that standards & procedures are suitable & workable.

Implementing a Performance Standard System

• Keys to making it work:– Workers’ cooperation.– Gradual implementation.– An award or incentive

system.– Recognition & use of

workers potential.– Periodic review.

How a Performance Standard System Can Fail

• The standards are not clearly stated & communicated.• The supervisor is doing a poor job.• The supervisor neglects various follow up elements.• Employees find no challenges or rewards.• The supervisor becomes to pre-occupied with

maintaining the system.• The system is administered in a negative way.

Essentials of Performance Evaluation

• Performance evaluation: – A periodic review & assessment of each

employee’s performance during a given period.

– Are not always used for hourly workers in the hospitality industry (lack of time, workers do not stay long enough, etc.).

– Does not substitute in any way a informal evaluation.

Purpose & Benefits• To evaluate & give recognition.

• Get different perspectives by looking back over a long period of time.

• Documentation for the record.

• Let people know how thy are doing.

• Set improvement goals.

• Basis for salary increase.

• Identify workers for potential advancement.

• May be used by other managers.

• May be used by your boss to rate you/ provides feedback on your hiring & training.

• Provides a occasion to get feedback from employees.

Steps in the Performance Review Process

1. Prepare for the evaluation.

2. Making the evaluation.

3. Sharing it with the worker.

4. Providing a follow up.

Making the Evaluation

• Evaluations are typically formalized in an evaluation form.

• This form lists performance dimensions or categories in measurable or observable terms.

• Dimensions should be related to the job, & clearly defined in objective & observable terms.

Standards & Ratings

• There should be measurable or observable standards, wherever possible to make evaluation more objective.

• Many evaluation forms use a rating scale ranging from outstanding to unsatisfactory performance. – A common scale includes ratings of outstanding, above

average, average, needs improvement, & poor. – The major problem with ratings such as outstanding or

excellent is figuring out what they mean in performance terms.

– The more precise these descriptions are, the fairer & more objective the ratings will be (i.e. point values).

– No evaluation form solves all the problems of fairness & objectivity.

Pitfalls in Rating Performance• Form itself• Halo effect• Letting feeling bias judgment• Comparing one person to another• Supervisors feelings about evaluation process affects

ratings• Concern about consequences• Procrastination• Supervisor gives ratings for the effect they will have• Rating employees on most recent performance

Defense Against Pitfalls

• Evaluate performance, not the employee.

• Give specific examples.• Where there is substandard

performance ask WHY?– Use the rule of finger.

• Think fair & consistent.• Get others input.• Write down ideas & discuss with

the employee how to improve performance.

Employee Self Appraisal

• Employees evaluate themselves.

• May result in less employee defensiveness.

• May result in a more constructive performance appraisal interview.

• May improve motivation & job performance.

The Appraisal Interview

• A private face to face session between you & your employee.

• Plan: – Pick a place free of interruption at

an appropriate time, review the evaluation, & keep in mind your goal of a positive climate of communication & problem solving.

Conducting the Interview

• Start off with small talk.• Make sure the employee understands the

evaluation process.• Ask the employee to rate their performance.• Encourage the employee to comment on your

judgments.• Get the employee to do most of the talking.• Work with them on setting improvement

objectives.• Summarize the interview, end on a positive note.

Common Mistakes in Appraisal Interviews

• Authoritarian approach• Tell & sell approach• Criticizing & dwelling on past

mistakes• Failing to listen-arguing-

interrupting• Losing control- letting emotions

take over• Reducing standards for one

person

Follow-Up• 1st see that people receive the rewards they have coming to them.

• For people you have discovered need more training, arrange to provide it for them.

• For people you feel will improve themselves, follow their progress discreetly.

• There will be people who you are sure will make no attempt to improve, who will continue to get by with minimum performance, reassess them in your mind.

• There are 2 important facets of follow-up.

– Actually carrying it out.

– Use all you have discovered about your people & yourself to improve your working relationship with each person you supervise.

Legal Aspects of Performance Evaluation

• EEO laws effecting performance evaluation include:– Title VII of the Civil Rights

Act– Equal Pay Act– Age Discrimination in

Employment Act– Americans with Disabilities

Act

Fair & Legal Evaluations

• Evaluations should be based on standards obtained from job analysis.

• Use objective, observable, & measurable performance standards.

• Keep a positive rapport during the interview.• Do not discuss qualities of employee based on a

membership of a group.• Document frequently.• Employees should be given a way to appeal.

© 2010 John Wiley & Sons, Inc.