performance appraisal seminar 2009

Performance Evaluation for Department Supervisors and

Mid-Level Managers The Executive Suite Warren J. Rutherford

The Executive Suite 2010-copyright 2

Seminar Objectives Review the reasons to perform supervisory

evaluations, Identify evaluation prerequisites, Illustrate various evaluation models, Discuss training and communication

requirements, and Illustrate linking an evaluation to corporate

retention, advancement, and compensation systems.


Performance Evaluation and Performance Appraisal Terms are often used interchangeably. Evaluation – to determine the significance

or worth of, usually by careful appraisal and study.

Appraisal – to evaluate the worth, significance, or status of.


Evaluation Essentials Understand the reasons why performance

evaluations often fail, Learn how to perform an evaluation, Understand the elements to evaluation

(preparation, interview, rating, follow-up), Identify the evaluation cycle, and How to link performance to retention,

advancement, and compensation decisions.


Seminar Expectations Participants will learn to:

Identify the precursors to performance evaluation (goal & objective setting, communication, objectivity, training, supervisory and staff support, clarity of mission, and realistic expectations), and

Procedures to regularly evaluate the performance evaluation program itself


Why Conduct Performance Evaluations Communication:

Provide information & feedback about supervisor job performance to the supervisor, evaluator, & executive.

Key to retaining supervisors. Increase and enhance communication between

evaluator and supervisor. Provide the evaluator & supervisor a means to

discuss the supervisor’s job duties & responsibilities along with work circumstances and the work environment.


Why Conduct Performance Evaluations Measurement of performance:

Used to measure performance in relation to agreed goals.

Improve the supervisor’s job performance. Point out areas of acceptable and/or

outstanding work performance.


Why Conduct Performance Evaluations Improvement and training needs:

Identify areas that need improvement. Determine training needs for work unit. Re-evaluate job duties & outline specific objectives and

the means to achieve them. Supervisor development:

Develop supervisors for higher levels and more responsible positions.

To determine the level of compensation adjustment, if applicable.


Prerequisites to Effective Evaluation

Understand evaluator bias Bias is the inaccurate distortion of a measurement caused

when evaluator fails to remain emotionally detached while supervisor performance is evaluated.

Common Biases: Central tendency – Giving everyone the same average rating or

avoiding extremes. Leniency – Avoiding low ratings to avoid conflict or create a bad

reflection on the evaluator. Halo effect – High or low rating in one area influencing the whole

rating. Recency – Focusing on most recent examples rather than across

entire rating period.


Prerequisites to Effective Evaluation Understand evaluator bias

Common Biases: Constancy – Rank ordering supervisors rather than

measuring their performance. Personal prejudice – Evaluator’s dislike for a certain group or

class of people (race, age, culture, sex, appearance) may distort the ratings those people receive.

Length of service – Giving higher ratings to those with greatest length of service.

Previous ratings influence – Repeating the last rating instead of looking at the actual performance during the rating period.

Personal relationship conflict – Letting a personal relationship with the supervisor influence the appraisal.


Prerequisites to Effective Evaluation Observing and documenting supervisor

performance: Purpose – To record and communicate a supervisor’s work

performance during the rating period. Be accurate – use as a memory jogger Document facts, not opinions – open-minded, objective Don’t rely on memory – write down, use standard form Be consistent – Observe, document, communicate to all

supervisors Communicate and document positive and negative supervisor

performance Documentation should describe supervisor behavior not his/her

attitude – Be specific, point out specific performance incidents.


Prerequisites to Effective Evaluation Provide Feedback

Guidelines Communicate to supervisor at the time something positive or

negative occurs. Make sure supervisor understands the feedback, explain carefully. Show respect for the supervisor. Listen carefully to the supervisor’s explanation. Show you understand the supervisor’s point of view. Make sure the feedback is accurate.

Conduct meetings during the year (quarterly) to review progress and provide feedback; both evaluator and supervisor should document.


Performance Evaluation Models Formal appraisal 360° Self – Appraisal Competency-based appraisal Team/Work Unit appraisal Combinations of the above Linkages to merit pay, wage adjustments,

compensation matrices, bonus, incentive pay, or innovation pay


Performance Evaluation – Formal Appraisal Process Supervisor evaluated at established intervals

(2x year). Evaluator is a superior to supervisor. Common to all models:

Rating-based across different categories. Each category may be point-scored and/or

weighted. Final result is numerical, tied to performance grid.


Performance Evaluation – 360° Appraisal Program Supervisor performs self-evaluation AND is also

evaluated by subordinate(s) and superior(s). May/may not be anonymous. Emphasis on teamwork to overcome wounded

egos. Supervisor critically reviews evaluation

comments, prepares performance improvement plan, discusses confidentially with superior(s).


Performance Evaluation – Self Appraisal Process Supervisor completes self-appraisal form

requesting honest, objective assessment of performance during performance period.

Utilized most frequently as part of a formal, 360°, or team-based appraisal.

Enables supervisor to reflect on performance. Enables superior to understand the supervisor’s

point of reference.


Performance Evaluation – Team/Work Unit appraisal Work Unit (department, division, section, team)

evaluates performance for period under review. Each member of work unit completes appraisal

form that links to unit goals, objectives, strategies for performance period.

Unit performance results shared equally with all employees in unit.


Performance Evaluation – Competency-based Rewards superior performance that is linked to

organizational goals. Competencies for individual jobs tied to performance

measures. Usually limited to supervisory, management, and

professional group. Focus on better performance & career development. Reliance on job description to develop competencies for

development.


Commonly Shared Evaluation Categories Goals, Objectives Primary Duties Training/Support Needs Quality of Work Volume of Work Knowledge of Job, of

Field Work Effort/Initiative Working Relationships

Following Policies & Procedures

Cooperation & Communication

Dependability Customer Service Safety Planning & Organizing Decision Making Leadership


Competency Based Sample Categories

Establish focus Provide motivational support Foster teamwork Attention to communication Oral, written, & persuasive

communication Customer, entrepreneurial, & results

orientation Initiative Fostering innovation Building collaborative relationships Empowering, developing, & influencing

others

Diagnostic information gathering Analytical, forward, conceptual,

& strategic thinking Thoroughness Decisiveness Self-confidence Stress management Technical expertise Interpersonal awareness Managing performance Managing change Personal credibility


Rating Categories Qualitative – Numberless

rating system Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Exceeds Expectations Meets Expectations Below Expectations

Quantitative – Numbered rating system 4 – Outstanding 3 – Above Average 2 – Good 1 – Below Average 0 – Very Poor Can be weighted for

different categories Can be prioritized for

different categories


Purpose of Performance Evaluation

Enable joint planning and communication between an supervisor and evaluator on what the supervisor is expected to accomplish during the performance period.

Ensure that a supervisor’s performance is evaluated in terms of measurable results as well as how these results are achieved.

Establish clear and explicit performance goals and meaningful feedback, jointly established by the supervisor and evaluator, that are objective indicators of whether performance objectives are met, in order to maximize performance and customer service.

Facilitate ongoing, year-round communication concerning what the supervisor is expected to accomplish, how well s/he is meeting these performance objectives, and what steps need to be taken by both parties to ensure that the objectives are met.


Purpose of Performance Evaluation Identify a plan to promote the supervisor ’s professional

development that can include educational and training opportunities.

Identify corrective action that needs to be taken by the supervisor and evaluator in those instances where a supervisor has not accomplished a performance objective.

Identify the consequences when a supervisor has not accomplished a performance objective.

Establish a reliable and rational basis for determining pay based upon performance.


Training Requirements Supervisor and evaluator need to be “on the

same page.” Understand purpose of appraisal process. Understand roles & responsibilities of participants in the

appraisal process. Understand need to schedule sufficient time to fulfill the

process effectively. Practice (role-play) the steps in the process in group

setting, receive clarification on intent, raise and resolve “what-if” scenarios.

Understand need for objectivity.


The Evaluation Cycle

Performance Management CycleJ uly

August/ September

December/ J anuaryMarch-May

May/ J une

•Current fiscal year budget approved•Structure/ merit increases awarded

I ndividual goal settingand planning forcurrent fiscal year

Formal interim reviewAnnual evaluations

Merit recommendationsand supporting reviews due to HR

Ongoing Coachingand Feedback


The Elements to Evaluation

Pre-performance planning meeting Coaching Appraisal preparation Performance appraisal meeting Signatures and approvals Planning for the next performance planning meeting Reappraisal period for a “below expectations” appraisal

result Compensation decision


Evaluation Components Pre-performance Planning

Meeting Review expectations for

performance period Discuss/reach agreement on

expectations/standards for: Major position duties Major position objectives Competencies Action plans for further

professional development

Coaching Meet periodically during

performance period to discuss:

Actual compared to planned performance expectations

Review and/or make changes necessary to performance plan

Both parties take notes of coaching sessions


Evaluation Components Appraisal

Preparation Evaluator – Assess on

preliminary basis: Major position duties – rating and

comment Major position objectives – date

completed, rating and comments Competencies – rating and

comments Comments regarding supervisor’s

performance during the year Overall rating Action plans for further professional

development – results achieved

Supervisor The supervisor should, using the

original documents as adjusted during coaching session(s), conduct a self-appraisal of his/her own performance during the performance period.


Evaluation Components

Performance Appraisal Meeting The evaluator and the supervisor

should meet privately to discuss his/her performance using the evaluator’s preliminary evaluation and the supervisor ’s self-appraisal as a basis for the discussion. As a result of this discussion, the evaluator arrives at and documents the final appraisal on the Performance Planning and Appraisal Document.

Signatures & Approvals Evaluator signs and dates completed

form, noting any additional comments.

Supervisor signs and dates the form, has the opportunity to make comments.

The supervisor ’s signature confirms that he/she has discussed its contents with the evaluator and does not necessarily imply concurrence with all of the content of the appraisal.

The form is then referred to the next level of supervision (if any) for signature.

The form is finally placed on file in the supervisor ’s official record.


Evaluation Components Planning for the next

performance planning meeting After the process is

completed for the current performance period, the evaluator and supervisor should immediately schedule the planning meeting for the next performance period.

Reappraisal period for a “below expectations” appraisal result Reappraise within 90 days. Provide to superiors a

specific, measurable, and objective corrective action program

Seek to bring appraisal to at least “Meet Expectations” level.


Linking Results to… Employment decisions

Promotion, retention, probation, suspension, termination

Performance-based pay Increase, no adjustment, decrease

Organizational performance


Employment Decisions Promotion – Results assist

in qualification review for promotional opportunities

Retention – Results assist in retention decisions

Probation – Less than satisfactory results could place supervisor on limited probationary status with objective to change performance level to meets expectation level.

Suspension – Continued performance at a less than satisfactory results could place supervisor on suspension status with objective to change performance level to meets expectation level upon return.

Termination - Continued performance at a less than satisfactory results could cause the supervisor to be terminated from employment.


Performance-based Pay Merit pay increase (step-based) –

Usually provided for where a pay range (minimum/maximum) also has intermediary steps.

Average or better rating enables advancement in grade to next step level (preestablished %-age).

May or may not provide %-age adjustment for those at top of grade range (may also be a lump-sum payment).

Usually accompanied by annual wage adjustment (COLA). Below average rating may not receive merit adjustment and/or

annual wage adjustment until performance becomes average. Below average rating may cause step reduction after reappraisal

period if performance still below average.


Performance-based Pay Merit pay increase (percent-based) –

Usually provided for where a pay range is characterized by a minimum – maximum with no intermediary steps.

Usually not accompanied by annual wage adjustment (COLA). Percent increase based on overall performance rating. Percent increase can also be based on supervisor’s present placement in

the pay range (higher in range, less %-age merit). May or may not provide %-age adjustment for those at top of grade range

(may also be a lump-sum payment). Below average rating may not receive merit adjustment and/or annual

wage adjustment until performance becomes average. Below average rating may cause step reduction after reappraisal period if

performance still below average.


Organizational Performance Gain – Sharing pay

Requires specific and measurable workplan objectives (targets) on organizational and department basis that are tied to core values and workplans.

Usually, no more than 50% of funds saved are awarded as gain-sharing pay, other 50% savings eliminated from budgetary process (returned to taxpayers).

Self-funded, no additional funds. Pay incentive provided to team/work unit where innovation,

exemplary results accomplished in unit goals/objectives, or workplan. Results from savings achieved from innovation – unit members share

equally in savings.


Precursors to Evaluation Goal & objective setting – Specific, measurable, &

attainable. Communication…….both ways Objectivity………by both parties Training………with both parties present Supervisory and staff support – Equip the process with

the tools necessary to make it successful. Clarity of mission – Mutual understanding and

agreement Realistic expectations – Challenging but possible.


Why Evaluations Often Fail There is no face-to-face discussion. There is no preparation by either party. Evaluators do not really know what “performance” is or how

it should be appraised. Evaluators don’t know how to measure and/or rate

performance. Appraisal forms are too complicated and/or not understood. There is little identification of actual performance problems. There has been little communication about performance

during the period being appraised.


Why Evaluations Often Fail Evaluators’ ratings have been biased. There has been no relationship between the objectives set

and the appraisal form. Evaluators have been concerned only with bad performance. There has been no follow-up effort afterwards. Appraisal has just been a once-a-year event, not an ongoing

process. There is no linkage to compensation or other rewards-based

program.


Evaluating the Appraisal Program Need to assess effectiveness before it can be improved. Build evaluation of the program into the program. Evaluate new program after it has been implemented in

the first year, and every year thereafter. Design the evaluation process to be useful. Evaluate from 2 perspectives:

Are we doing things right? (i.e., are the process and rules being followed?)

Are we doing the right things? (i.e., what effect does the program have?)


Evaluating the Evaluation Program – Compliance Were appraisals done on time? Did everyone who was supposed to receive an appraisal

get one? Were supervisory performance plans issued timely? Were progress reviews conducted? Does senior management devote appropriate resources

and give priority to the effective maintenance and operation of the performance appraisal program?


Evaluating the Evaluation Program –Effect Are the stated objectives of the appraisal program being met? Are supervisors and evaluators satisfied with the equity, utility,

accuracy, etc. of the program? Do the benefits of the program outweigh the costs? Has there been an improvement in supervisor, unit, or

organizational performance? Has the attitude or the behavior of supervisors and/or evaluators

changed as desired? Are there signs of different treatment in the results of the

performance appraisal processes? Has there been an improvement in the efficiency or the

effectiveness of related human resource programs?


Evaluating the Evaluation Program – Checklist Is it possible to gather information about the question raised? If not,

don’t bother trying to answer. Is there only one possible answer to the question? Answer should

not be predetermined or loaded by the phrasing of the question. Do decision-makers feel they need the information? If no one will use

the results, don’t gather the data. Do decision-makers want the answers to the question for

themselves? Evaluation results are more useful when the information is desired.

Can decision-makers indicate how they would use the answer to the question? Knowing in advance how the evaluation information will be used increases the chance that the evaluation results will be utilized.


For more information, contact:Warren J. RutherfordThe Executive Suite129 Airport RoadHyannis, MA 02601508-778-7700508-771-1119 [email protected]

mailto:[email protected]

http://www.theexecutivesuite.com/

performance appraisal seminar 2009

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