Chapter 3 - Performance Appraisal

1)
HR basics is a series of short courses
0:10
designed to highlight what you need to
0:12
know about a particular human resource
0:14
management topic in today's HR basics we
0:17
explore performance appraisals focusing
0:19
on the development and management of
0:20
effective performance review tools
0:24
strong performance appraisals are the
0:26
backbone of effective performance
0:27
management so let's start with a couple
0:29
of definitions first performance
0:32
management refers to the processes that
0:34
ensures an organization connects mission
0:36
with the work of employees outcomes of
0:41
effective performance management include
0:42
clarifying job responsibilities and
0:45
expectations enhancing individual and
0:47
group productivity developing employee
0:49
capabilities through effective feedback
0:51
and coaching driving behavior to align
0:54
with an organization's values goals and
0:56
strategies providing the basis for
0:58
making human resource decisions and
1:00
improving communication between
1:02
employees and managers performance
1:07
appraisals also known as performance
1:09
reviews guide the process of determining
1:11
how well employees do their jobs
1:13
relative to a standard and communicate
1:15
that information to them performance
1:17
appraisals ensure effective outcomes of
1:19
performance management are realized for
1:24
the purposes of this course we'll look
1:26
at the development and management of
1:28
performance appraisals by development we
1:30
mean the process of creating performance
1:32
appraisal tools and by management we
1:34
mean the planning organizing and leading
1:36
of performance appraisals so let's start
1:41
with development when developing your
1:43
performance appraisal tools align your
1:45
organizational culture with the tool
1:47
that you design when developing a
1:51
performance evaluation form do your
1:53
homework
1:54
find evaluation forms from similar
1:56
organizations or organizations that
1:58
share your philosophy of performance
2:00
management use Google or other internet
2:02
research tools to find organizations or
2:05
professional associations that provide
2:07
good examples of what performance tools
2:09
should look like review these results or
2:11
forms for characteristics that fit
2:13
your needs get inspired through what
2:16
others are doing and consider how these
2:18
tactics might be applied in your
2:19
performance appraisal development
2:23
perhaps most importantly your
2:25
performance appraisal tool should be
2:27
easy to understand and use provide clear
2:29
instructions and examples so managers
2:31
and employees know exactly what
2:33
information is required in each section
2:35
make sure your evaluation form follows a
2:38
logical sequential order document design
2:41
is critical when creating your
2:42
evaluation form and avoid forms that
2:45
require a lot of jumping around or
2:46
cross-referencing well it's up to an
2:50
organization to decide which elements to
2:52
include in an appraisal there are six
2:54
recommended elements I'd like to explore
2:56
first demographic information second
2:59
rating methods third job application or
3:02
job relatedness fourth self evaluation
3:05
fifth smart goals and finally six
3:08
employee development tools these
3:10
standard elements will create a
3:12
user-friendly in useful appraisal tool
3:14
for your organization let's take a look
3:16
at each your performance tool should
3:20
include demographic information about
3:22
the employee people manager assessment
3:24
period and other pertinent information
3:26
to make the performance management
3:28
process run smoothly well a plethora of
3:32
research and data exists about the
3:34
usefulness of ranking scales and methods
3:36
the following is a simple summary of two
3:38
popular methods available for your
3:40
performance appraisals first a graphic
3:43
rating scale which is a scale that
3:45
allows a Raider to mark an employee's
3:46
performance on a continuum
3:48
I recommend no more than a five-point
3:50
scale second behaviorally anchored
3:53
rating scales which are scales that
3:55
describe specific examples of job
3:57
behavior which are measured against a
3:59
performance scale again no more than
4:01
five points as no single method is best
4:04
for every situation a method used in a
4:06
combination of approaches might be the
4:08
best solution for you
4:13
next your performance tools should be
4:15
job-related connecting the work an
4:17
individual does with organizational
4:19
mission and results your performance
4:21
appraisal tools should be directly
4:23
connected to an employee's job
4:24
description create different evaluation
4:27
forms for specific roles notably
4:29
distinguish non-supervisory and
4:31
supervisory roles
4:33
this might mean separate forms for job
4:35
groups classifications or types I
4:37
recommend a flexible form that
4:40
references the job description of an
4:42
employee when addressing role based
4:43
competencies including employee self
4:48
evaluation as part of your performance
4:50
management process gives employees an
4:52
active role to play done properly
4:54
employee self evaluations can provide
4:57
several key benefits to the organization
4:59
rather than simply being a recipient of
5:01
feedback from their manager the employee
5:04
is given a voice and can inform and
5:05
shape their performance appraisals and
5:07
ratings this active participation helps
5:10
them be more engaged with both their
5:12
performance and the review process
5:14
overall and a self-assessment allows the
5:17
manager to view performance through the
5:19
employees eyes include space for an
5:24
employee and people manager to develop
5:26
and assess performance related goals a
5:28
goal is a statement of desired outcomes
5:30
towards which effort is directed I
5:32
believe that well defined goals are
5:34
among the most effective communication
5:36
tools available to any leader in the
5:38
performance management process so
5:41
consider using smart criteria to craft
5:43
your goals to make your goal smart it
5:47
needs to conform to the following
5:48
criteria the smart criteria first a
5:52
specific goal is clear unambiguous and
5:54
focuses on one topic area it can be
5:57
communicated to others without confusion
5:59
because it's well defined and easily
6:01
understood a measurable goal has a
6:03
definable endpoint that's quantifiable
6:05
through numbers or percentages that can
6:08
easily be measured an achievable goal is
6:10
a goal that's possible to accomplish a
6:13
relevant goal is one that helps you
6:15
achieve your desired performance outcome
6:17
and it's important to you and the
6:19
organization finally a time-based goal
6:22
is a goal that has a scheduled
6:24
completion date
6:26
four employees a performance appraisal
6:29
can be the primary source of information
6:31
and feedback from a people manager by
6:33
identifying employee strengths
6:35
weaknesses potentials and training needs
6:38
through the performance appraisal
6:39
feedback process supervisors can inform
6:42
employees about their progress discuss
6:44
areas in which additional training may
6:46
be beneficial and outline future
6:48
development plans our second area of
6:52
focus highlights the importance of
6:54
managing your performance appraisal
6:55
process through training maintaining
6:58
high standards of feedback and strong
7:00
documentation most performance systems
7:04
can be improved by training supervisors
7:06
in how to do performance appraisals
7:08
since conducting appraisals is important
7:10
training should center around minimizing
7:12
rater errors providing great feedback
7:14
and giving raters details on documenting
7:17
performance information feedback is
7:21
essential to any strong performance
7:23
management system both positive and
7:25
constructive feedback should occur as
7:27
soon as possible no performance feedback
7:30
should be left to an annual performance
7:31
appraisal meeting I often say there
7:33
should be no surprises in performance
7:35
management it's critical to be specific
7:37
when providing performance feedback as a
7:42
matter of fact a recent Gallup study
7:43
shows the impact of different kind of
7:45
feedback on employees the most telling
7:48
conclusions from the studies include the
7:50
following managers giving little or no
7:53
feedback to employees result in four out
7:56
of ten workers being actively disengaged
7:58
at work employees receiving
8:00
predominantly negative feedback from
8:02
their manager are over 20 times more
8:04
likely to be engaged than those
8:06
receiving little or no feedback and
8:08
finally only 1% of employees who
8:11
received positive feedback were actively
8:13
disengaged compared to a whopping 40% of
8:16
those who didn't receive feedback at all
8:20
there's a simple acronym and model to
8:23
help you give great feedback the Earned
8:25
feedback process defines a method for
8:28
communicating feedback for maximum
8:30
clarity and development first event
8:33
provide your employee with the place and
8:35
time during which the action or behavior
8:37
which you're providing feedback was
8:38
observed
8:39
next action describe the specific action
8:42
or behavior that you're providing
8:44
feedback on result explain the impact or
8:47
consequence of the behavior or action
8:49
finally next steps provide a specific
8:52
request change or continue the
8:54
identified action or behavior or ask for
8:57
ideas on how to move forward HR
9:01
professionals recognize that strong
9:03
documentation is critical in performance
9:05
management their challenge is to teach
9:07
managers how to document performance
9:09
issues in appropriate manner the purpose
9:12
of documenting performance problems
9:14
isn't just to protect the employer in
9:16
the case that a worker files a lawsuit
9:17
it's also to show the steps that were
9:20
taken to help someone be successful at
9:23
work performance documentation must tell
9:25
a story rooted in fact painting a
9:28
descriptive picture of employee behavior
9:30
with words good documentation creates
9:35
credibility for the employer by showing
9:37
that employees are treated in a fair and
9:38
consistent manner however some common
9:42
mistakes and documentation are made
9:43
here's three first making vague unclear
9:47
statements about what the employee needs
9:49
to do to improve second adding personal
9:52
attacks or subjective comments and third
9:55
providing little or no evidence to
9:57
support decisions of discipline or
9:59
performance management intervention
10:03
regardless of the approach used managers
10:06
need to understand the intended outcome
10:08
of performance management systems when
10:10
performance management is genuinely used
10:12
to develop employees as resources it
10:15
works in its simplest form performance
10:18
appraisals are observation here your
10:20
strengths your weaknesses and here's a
10:22
way to develop for the future

2)
let's take a look at what managers need
0:10
to know about employee performance
0:12
appraisals performance appraisal is the
0:15
process of assessing how well employees
0:17
are doing in their jobs most employees
0:21
and managers intensely dislike the
0:24
performance appraisal process in fact
0:26
65% of employees are dissatisfied with
0:29
their performance appraisal process
0:31
likewise according to the Society for
0:33
Human Resource Management 95 percent of
0:36
human resource managers are dissatisfied
0:38
with their organisation's performance
0:39
appraisal systems indeed performance
0:44
appraisals are used for four broad
0:46
purposes making administrative decisions
0:48
providing feedback for employee
0:50
development evaluating human resource
0:53
programs and for documentation purposes
0:57
workers often have strong doubts about
0:59
the accuracy of their performance
1:01
appraisals and they might be right for
1:03
example it's widely known that Assessors
1:06
are prone to errors while rating worker
1:08
performance three of the most common
1:10
rating errors are central tendency halo
1:13
and leniency central tendency err occurs
1:17
when Assessors rate all workers as
1:19
average or in the middle of the scale
1:22
halo air occurs when Assessors rate all
1:24
workers as performing at the same level
1:26
good bad or average in all parts of
1:29
their jobs leniency air occurs when
1:33
Assessors rate all workers is performing
1:35
particularly well one of the reasons
1:40
managers make these airs is that they
1:42
often don't spend enough time gathering
1:44
or reviewing performance data Facebook
1:46
reduces appraisal errors by having
1:48
managers work together to finalize
1:50
performance ratings what can be done to
1:55
minimize rating errors and improve the
1:56
accuracy in which job performance is
1:58
measured in general two approaches have
2:01
been used improving performance
2:02
appraisal measures themselves and
2:04
training performance raters to be more
2:06
accurate one of the ways companies try
2:10
to improve performance appraisal
2:11
measures is to use as many a
2:13
objective performance measures as
2:15
possible objective performance measures
2:17
are measures of performance that are
2:19
easily indirectly counted or quantified
2:22
common objective performance measures
2:24
include output scrap waste sales
2:27
customer complaints and rejection rates
2:31
but when objective performance measures
2:33
aren't available and frequently they
2:35
aren't subjective performance measures
2:37
have to be used instead subjective
2:40
measures require that someone judge or
2:42
assess a workers performance the second
2:45
approach to improving the measurement of
2:47
workers job performance is rater
2:48
training the most effective is frame of
2:51
reference training in which groups of
2:53
trainees learn how to do performance
2:55
appraisals by watching a video of an
2:57
employee at work next they evaluate the
3:00
performance of the person in the video a
3:02
trainer an expert in the subject matter
3:04
then shares his or her evaluations and
3:07
trainees evaluations are compared with
3:09
the experts the expert that explains the
3:12
rationales behind his or her evaluations
3:14
the process is repeated until
3:16
differences in evaluations given by
3:19
trainees and evaluations by the expert
3:21
are minimized after gathering accurate
3:26
performance data the next step is to
3:28
share performance feedback with
3:30
employees unfortunately even when
3:32
performance appraisal ratings are
3:34
accurate the appraisal process often
3:36
breaks down at the feedback stage
3:39
employees will become defensive and
3:41
dislike hearing any negative assessments
3:43
of their work no matter how small
3:45
managers become defensive - and dislike
3:48
giving performance appraisal feedback as
3:50
much as employees like receiving it in
3:52
response many companies are asking
3:54
managers to ease up on harsh feedback
3:56
and instead articulate the positive by
3:59
focusing on employee strengths what can
4:03
be done to overcome the inherent
4:04
difficulties in performance appraisal
4:06
feedback first be mindful of being
4:08
overly critical and making employees so
4:10
defensive they quit listening also
4:12
because performance appraisal ratings
4:14
have traditionally been judgments of
4:16
just one person the boss another
4:18
possibility is to use 360-degree
4:21
feedback in this approach feedback comes
4:23
from four sources the boss subordinates
4:26
peer
4:27
coworkers and the employees themselves
4:30
the advantage of 360 degree feedback
4:33
programs is that negative feedback is
4:35
often more credible when it comes from
4:37
several people

3.)
Hi, today's Bite is all about performance appraisal,
0:13
what it is and how to implement it
0:15
by looking at AIHR's top five best practices, stay tuned.
0:19
What is a performance appraisal?
0:22
Performance appraisal is also referred to
0:24
as the performance review, performance evaluation,
0:27
and employee appraisal.
0:29
Performance appraisal is a method to regularly evaluate
0:32
an employee's job performance and overall contribution
0:35
to the company in an effort to improve that performance.
0:38
Performance appraisals help to provide feedback,
0:41
it is a formal moment intended to evaluate job performance.
0:44
It also helps in making key employee decisions
0:47
including giving bonuses, promotions, and firing.
0:50
A crucial element of the employee appraisal
0:52
is that it is a shared responsibility.
0:54
On the one hand, it is a shared responsibility
0:57
between the employee and manager.
0:59
While the manager has the lead in this process,
1:01
an active involvement of the employee creates the buy-in
1:04
that is necessary to make the improvements
1:06
that the performance appraisal is set up for
1:09
in the first place.
1:10
On the other hand, conducting performance management
1:13
is also a shared responsibility between the manager and HR.
1:17
The manager does the execution
1:18
but HR helps in guiding the performance appraisal process.
1:22
What are the five key success factors
1:24
of a performance appraisal?
1:25
Every company conducts
1:27
their performance appraisals differently,
1:29
however, there are several best practices
1:31
that every manager should know.
1:33
One, use a clear outline.
1:35
Both managers and employees may feel uncomfortable
1:37
during the performance appraisal.
1:39
It is arguably the most formal setting
1:41
they will be in all year and it doesn't happen often enough
1:44
to make it a common phenomenon.
1:45
Using a job performance evaluation form
1:48
or some other appraisal outline will be very helpful
1:51
for both the preparation of the meeting
1:53
and for doing the performance review itself.
1:55
We attach a link to a performance evaluation form below
1:58
as an example.
1:59
Two, involve the employee as much as possible.
2:02
One of the key challenges in employee appraisals
2:04
is creating buy-in from the employee.
2:06
This is backed up by science,
2:08
a meta-analysis found a strong correlation
2:11
between the participation of the employee
2:13
in the performance evaluation and their buy-in.
2:15
Employee participation is the extent to which employees
2:18
are able to participate
2:19
in the performance appraisal session.
2:21
Employees who participated in their performance review
2:24
were more satisfied, rated the session
2:26
as much more fair, useful,
2:28
and were much more motivated to improve.
2:30
The meta-analysis we mentioned previously
2:32
found that a high degree of employee participation
2:35
explained up to 40% employee satisfaction,
2:38
35% of perceived fairness, 30% in perceived usefulness,
2:43
and 19% in motivation to improve.
2:46
This shows that it definitely pays off
2:48
to involve the employee.
2:49
Three, start with the bad news.
2:52
Most of us have learned to start with good news
2:54
before delivering the bad news
2:55
and suggestions for improvement.
2:57
According to Daniel Pink, employees are more satisfied
3:00
when bad news is addressed early on in the interview.
3:03
Positive information is then saved until the end,
3:06
so the meeting will end on a positive note.
3:08
Four, employees want more regular feedback.
3:11
Getting feedback once a year is not something
3:14
that will drive performance.
3:15
Employees report they're looking
3:17
for regular continuous feedback to do their work better.
3:20
Find ways to let managers touch base
3:22
with employees continuously using technology.
3:24
Five, carefully document
3:26
your employee performance appraisal sessions.
3:28
Important decisions about whom to promote,
3:30
which salaries to raise, but also who to terminate
3:34
are based on performance management information.
3:37
Performance appraisal meetings should, therefore,
3:39
be meticulously documented.
3:41
Performance data should be assessed and reported
3:44
in a standardized way across the organization
3:46
and stored in a central database.
3:48
This is also important when you switch
3:50
to more continuous feedback.
3:52
This wraps up our Bite on the performance appraisal.
3:54
In this Bite, you learned what a performance appraisal is,
3:57
and five best practices to implement it
3:59
in your own organization.
4:01
If you want to know more about performance appraisal,
4:03
check out our in-depth written article
4:05
in the description link.
4:06
Remember to stay up-to-date with our Learning Bites
4:08
by subscribing to our channels,
4:09
and if you liked this video make sure you like and share it,
4:12
and I'll see you soon in our next Learning Bite.
4:15
(upbeat music)

4.)
when people make hiring decisions
0:09
certain biases can creep into the
0:11
process the same is true when it comes
0:13
to the performance management process
0:15
let's take a look at performance
0:17
evaluation errors bias is a
0:21
disproportionate weight in favor or
0:23
against one thing person or group
0:26
compared with another usually in a way
0:28
considered to be unfair a manager
0:32
commits that the halo air when his
0:34
overall positive view of an employee's
0:36
performance biases the rating he gives
0:39
the person on individual criteria that
0:41
make up his or her performance in
0:44
contrast a manager commits the horn air
0:47
when his overall negative view of an
0:49
employee biases ratings such that the
0:52
individual receives lower ratings on
0:54
specific performance dimensions than he
0:56
or she really merits the contrast effect
1:01
occurs when a manager artificially
1:03
inflates or deflates an employee's
1:05
rating after comparing the person to
1:07
another individual the primacy air
1:11
reflects situations in which a raters
1:13
earlier impressions of an individual's
1:15
bias his or her evaluations of the
1:18
person in contrast a recency air
1:23
reflects situations in which a Raider
1:25
narrowly focuses on an employee's
1:27
performance that occurs near the time of
1:29
the evaluation similar to me errors
1:34
occur when managers more highly rate
1:36
employees who resemble them in some way
1:41
some writers may also commit restriction
1:44
of range or distribution errors raters
1:47
often must evaluate individual
1:48
performance along some scale for example
1:51
raters may be asked to assess the extent
1:54
to which individual employees are poor
1:56
average or outstanding sometimes Raiders
1:59
have a tendency to commit leniency
2:02
strictness or central tendency errors
2:04
Raiders commit the leniency err when
2:07
they constantly rate employees on a
2:09
higher end of the scale that is rating
2:12
everyone on a
2:13
four or five of a five-point scale in
2:21
contrast they commit the strictness air
2:23
when they constantly rate employees on
2:26
the low end of the scale such as rating
2:28
someone a one or two on a five-point
2:30
scale when Raiders evaluate everyone is
2:34
average
2:34
regardless of their actual performance
2:36
level they commit the air of central
2:38
tendency which reflects the
2:40
unwillingness of Raiders to rate
2:42
individuals is very high or very low
2:46
there are several steps companies can
2:48
take to reduce the chances that these
2:50
biases will occur one approach is to
2:53
incorporate more specificity in our
2:55
rating formats defining more precisely
2:57
what is being evaluated helps raters
3:00
focus more on the relevant performance
3:02
dimensions
3:05
[Music]
3:10
you
English (auto-generated)

5.)
there are many possible sources of air
0:10
in the performance appraisal process one
0:12
of the major sources is the rater
0:14
let's take a look although completely
0:17
eliminating airs is impossible
0:19
making raters aware of potential airs
0:21
and biases helps to reduce them when
0:26
appraising employees a manager should
0:28
avoid applying different standards and
0:29
expectations to employees performing the
0:31
same or similar jobs such problems often
0:34
result from the use of ambiguous
0:36
criteria and subjective weightings by
0:38
supervisors the recency effect occurs
0:43
when a Raider gives greater weight to
0:45
recent events when appraising in the
0:46
individuals performance
0:48
examples include giving a customer
0:50
service representative a rating based on
0:52
phone calls taken during the week before
0:54
the appraisal or giving a drill press
0:56
operator a high rating even though the
0:58
operator made the assigned quota only in
1:00
the last two weeks of the rating period
1:04
another time related issue is the
1:06
primary effect which occurs when a
1:08
Raider gives greater weight to
1:09
information received first when
1:11
appraising an individual's performance
1:14
central tendency error occurs when the
1:16
Raider gives all employees a score with
1:18
a narrow range in the middle of the
1:20
scale leniency air occurs when ratings
1:24
of all employees fall at the high end of
1:26
the scale strictness air occurs when a
1:29
manager uses only the lower end of the
1:31
scale to rate employees when a raters
1:35
values or prejudice distort the rating
1:37
rater bias occurs such bias may be
1:40
unconscious or quite intentional the
1:43
halo effect occurs when a Raider scores
1:45
an employee high on all job criteria
1:47
because of performance in one area of
1:49
assigned work responsibilities for
1:51
example if a worker has few absences the
1:54
supervisor might give the worker a high
1:56
rating in all other areas of work
1:58
including quantity and quality of output
2:00
without really thinking about the
2:02
employees other characteristics
2:04
separately the opposite is the horns
2:08
effect which occurs when a low rating in
2:10
one characteristic leads to a low
2:12
overall rate
2:14
ratings should be done using established
2:17
standards one problem is the contrast
2:19
air which is the tendency to rape people
2:21
relative to others rather than against
2:24
performance standards
2:26
sometimes raters are influenced by
2:29
whether people possess characteristics
2:31
that are the same or different from
2:33
their own qualities it's known as
2:35
similar to me or different from the
2:37
heirs if the rater has seen only a small
2:41
sample of a person's work an appraisal
2:43
may be subject to the sampling error
2:46
many performance appraisal problems are
2:49
caused by a number of different rater
2:50
errors
2:55
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6.) WALA