AboutLeo Lingham Expertise In Hiring Employees, I can cover subjects like job analysis,
recruitment, selection, induction, interviews, performance analysis,
performance reviews, performance management, performance auditing.
Experience 18 years of working management experience covering business planning,
business development, marketing, strategic planning, management
service, personnel administration.
PLUS
24 years of management consulting which includes business planning,
strategic planning, marketing, product management, organization
development, training, business coaching.
Question Hello sir,
I have 2 questions
1)How do you differentiate the appraisal system in Small business and large firms?
2)What do you think is the draw back in the appraisal system from the small business perspective and how to overcome it?"
Answer VIVEKANAND,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
================================
THERE IS NO SIGNIFICANT DIFFERENCE IN THE
PA SYSTEM BETWEEN SMALL ORG. AND LARGE ORG.
IN LARGE ORGANIZATIONS
-the no. of people employed are large.
-the organization is lead by professional managers
who are well aware of PA/ ITS BENEFITS.
-it is not always possible to know everyone intimately.
-objective professionalism is accepted/ not subjective gut feelings.
etc.
-----------------------------------------------------
IN SMALL ORGANIZATIONS
-a few people are employed.
-the organization is often lead by owners / unprofessional managers.
who know very little about PA./ ITS BENEFITS.
-bosses know the staff intimately in most cases.
-very little professionalism.
etc
==================================
TO IMPROVE PA IN SMALL ORGANIZATIONS,
A HEAVY DOSE OF EDUCATION IS NEEDED.
-the PA system.
-ITS BENEFITS.
===============================
SETTING PERFORMANCE MANAGEMENT
SYSTEM USING 360 DEGREE.
1-organizational performance
-review the corporate plan.
-review the corporate objectives [ what are they ]
-review the corporate strategy
================================
2-organizational departments performance
. Align your department units with your corporate strategy. If your company has many department units, and , then alignment becomes critical
-OPERATION / SALES / MARKETING /HUMAN RESOURCE/FINANCE ETC
-review the THEIR planS.
-review the THEIR objectives [ what are they ]
-review the THEIR strategies
==================================================
3-organizational departments performance
-develop the department's functions/ responsibilities
-develop the department's KRA [ KEY RESULT AREAS]
-develop for each KRA , the KPI [ KEY PERFORMANCE INDICATORS]
-develop the core competencies for each department
===================================================
4- individual performance
-develop the individual's job descriptions / functions/ responsibilities
-develop the individual's KRA [ KEY RESULT AREAS] based on the job description
-develop for each KRA , the KPI [ KEY PERFORMANCE INDICATORS] for each individual.
-develop the core competencies for each individual
==================================================
5-reviewing performance
Aligning Employee Performance Management
and Development with a CORPORATE Strategic Direction Approach
1.Aligning employee performance management and career
development plans with the organisations strategic plan
2.Developing a future-oriented feedback system to build
the skills needed to meet emerging challenges
3.Initiating the culture change and holding supervisors and
managers accountable for employee performance
4.Managing high performance and underperformance in a
fair and equitable way
5.Translating Organisational Goals into Individual
Job Objectives
6.Performance management needs to operate at the
organisational, team and individual level if it is to be
effective. Correctly aligning the core goals of the
organisation with the objectives of the employees; whilst
keeping it within a solid performance management
framework has been THE prioritie.
7. Effective negotiation of a ‘performance management’
framework within the ORGANIZATION process
8.Implementing a new performance appraisal process
Incorporating a ‘competency based training and
assessment’ system
9.Identifying a framework for understanding and dealing
with non-performance
=================================================
USE THE 360 DEGREE PERFORMANCE SYSTEM,
USING A SOFTWARE PACKAGE.[ THIS IS AN OPTION ]
Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This multiple-input approach to performance feedback is sometimes
called “360-degree assessment” to connote that full circle.
There are no prohibitions in law or regulation
against using a variety of rating sources, in addition
to the employee’s supervisor, for assessing
performance. Research has shown assessment
approaches with multiple rating sources provide
more accurate, reliable, and credible information.
For this reason, the U.S. Office of Personnel
Management supports the use of multiple
rating sources as an effective method of assessing
performance for formal appraisal and other
evaluative and developmental purposes.
The circle, or perhaps more accurately the sphere, of
feedback sources consists of supervisors,
peers, subordinates, customers, and one’s self.
It is not necessary, or always appropriate, to include all of the feedback sources in a particular
appraisal program. The organizational culture and mission must be considered, and the purpose
of feedback will differ with each source. For example, subordinate assessments of a supervisor’s
performance can provide valuable developmental guidance, peer feedback can be the heart of
excellence in teamwork, and customer service feedback focuses on the quality of the team’s or
agency’s results. The objectives of performance appraisal and the particular aspects of performance
that are to be assessed must be established before determining which sources are appropriate.
The following pages discuss the contributions of each source of ratings and feedback. In addition,
precautions are listed to consider when designing a performance management program that includes
360-degree assessment.
Peer
Internal
Customer
Subordinate
Self Peer
External
Customer
Superior
==========================================================
DIRECT SUPERIORS
=================
Evaluations by superiors are the most traditional source of employee feedback.
This form of evaluation includes both the ratings of individuals by supervisors
on elements in an employee’s performance plan and the evaluation of programs and teams by senior
managers.
What does this rating source contribute?
¨ The first-line supervisor is often in the best position to effectively carry out the full cycle of
performance management: Planning, Monitoring, Developing, Appraising, and Rewarding.
The supervisor may also have the broadest perspective on the work requirements and be able
to take into account shifts in those requirements.
¨ The superiors (both the first-line supervisor and the senior managers) have the authority to
redesign and reassign an employee’s work based on their assessment of individual and team
performance.
¨ Most employees feel that the
greatest contribution to their performance feedback should come from their firstlevel
supervisors.
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What cautions should be addressed?
¨ Research demonstrates that appraisal programs that rely solely on the ratings of superiors are
less reliable and valid than programs that use a variety of other rating sources to supplement
the supervisor’s evaluation.
¨ Superiors should be able to observe and measure all facets of the work to make a fair
evaluation. In some work situations, the supervisor or rating official is not in the same
location or is supervising very large numbers of employees and does not have detailed
knowledge of each employee’s performance.
¨ Supervisors need training on how to conduct performance appraisals. They should be capable
of coaching and developing employees as well as planning and evaluating their performance.
This form of performance information is actually quite common but usually
used only as an informal part of the supervisor-employee appraisal feedback
session. Supervisors frequently open the discussion with: “How do you feel
you have performed?” In a somewhat more formal approach, supervisors ask employees to identify the key
accomplishments they feel best represent their performance in critical and non-critical performance elements.
What does this rating source contribute?
¨ The most significant contribution of self-ratings is the improved communication between
supervisors and subordinates that results.
¨ Self-ratings are particularly useful if the entire cycle of performance management involves the
employee in a self-assessment. For example, the employee should keep notes of task
accomplishments and failures throughout the performance monitoring period.
¨ The developmental focus of self-assessment is a key factor. The self-assessment instrument
(in a paper or computer software format) should be structured around the performance plan,
but can emphasize training needs and the potential for the employee to advance in the
organization.
¨ The value of self-ratings is widely accepted. Most employees feel that self-ratings would contribute “to a great or very great extent” to fair
and well-rounded performance appraisal.
¨ Self-appraisals should not simply be viewed as a comparative or validation process, but as a
critical source of performance information. Self-appraisals are particularly valuable in
situations where the supervisor cannot readily observe the work behaviors and task outcomes.
--------------------------------------------------------------------------
What cautions should be addressed?
¨ Research shows low correlations between self-ratings and all other sources of ratings,
particularly supervisor ratings. The self-ratings tend to be consistently higher. This
discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback
skills.
¨ Sometimes self-ratings can be lower than others’. In such situations, employees tend to be
self-demeaning and may feel intimidated and “put on the spot.”
¨ Self-ratings should focus on the appraisal of performance elements, not on the summary level
determination. A range of rating sources, including the self-assessments, help to “round out”
the information for the summary rating.
=================================================
PEERS
With reduced hierarchies in organizations, as well as the increasing use
of teams and group accountability, peers are often the most relevant evaluators of their
colleagues’ performance. Peers have a unique perspective on a co-worker’s job performance and
employees are generally very receptive to the concept of rating each other. Peer ratings can be used
when the employee’s expertise is known or the performance and results can be observed. There
are both significant contributions and serious pitfalls that must be carefully considered before
including this type of feedback in a multifaceted appraisal program.
What does this rating source contribute?
¨ Peer influence through peer approval and peer pressure is often more effective than the
traditional emphasis to please the boss. Employees report resentment when they believe that
their extra efforts are required to “make the boss look good” as opposed to meeting the unit’s
goals.
¨ Peer ratings have proven to be excellent predictors of future performance. Therefore, they are
particularly useful as input for employee development.
¨ Peer ratings are remarkably valid and reliable in rating behaviors and “manner of
performance,” but may be limited in rating outcomes that often require the perspective of the
supervisor.
¨ The use of multiple raters in the peer dimension of 360-degree assessment programs tends to
average out the possible biases of any one member of the group of raters.
¨ The increased use of self-directed teams makes the contribution of peer evaluations the central
input to the formal appraisal because by definition the supervisor is not directly involved in
the day-to-day activities of the team.
¨ The addition of peer feedback can help move the supervisor into a coaching role rather than
a purely judging role.
--------------------------------------------------------------
What cautions should be addressed?
¨ Peer evaluations are almost always appropriate for developmental purposes, but attempting to
emphasize them for pay, promotion, or job retention purposes (i.e., the rating of record) may not
be prudent. The possible exception is in an award program as opposed to performance appraisal.
Peer input can be effectively used for recognition and awards.
¨ There is a difference of opinion about the need for anonymity of the peer evaluators. Generally,
it is advised that the identities of the raters be kept confidential to assure honest feedback.
However, in close-knit teams that have matured to a point where open communication is part of
the culture, the developmental potential of the feedback is enhanced when the evaluator
is identified and can perform a coaching or continuing feedback role.
¨ It is essential that the peer evaluators be very familiar with the team member’s tasks and
responsibilities. In cross-functional teams, this knowledge requirement may be a problem. In these
situations, the greatest contribution the peers can make pertains to the behaviors and effort (input)
the employee invests in the team process.
¨ The use of peer evaluations can be very time consuming. When used in performance ratings, the
data would have to be collected several times a year in order to include the results in progress
reviews.
¨ Depending on the culture of the organization, peer ratings have the potential for creating tension
and breakdown rather than fostering cooperation and support. A very competitive program for
rewarding individuals in the agency will often further compromise the value of peer rating systems.
¨ Employees and their representatives need to be involved in every aspect of the design of appraisal
systems that involve peer ratings.
============================================
SUBORDINATES
An upward-appraisal process or feedback survey is among the most significant and yet
controversial features of a “full circle” performance evaluation program. Both managers being appraised
and their own superiors agree that subordinates have a unique, often essential, perspective. The
subordinate ratings provide particularly valuable data on performance elements concerning managerial
and supervisory behaviors. However, there is usually great reluctance, even fear, concerning
implementation of this rating dimension. On balance, the contributions can outweigh the concerns if the
precautions noted below are addressed.
What does this rating source contribute?
¨ A formalized subordinate feedback program will give supervisors a more comprehensive picture
of employee issues and needs. Managers and supervisors who assume they will sufficiently stay
in touch with their employees’ needs by relying solely on an “open door” policy get very
inconsistent feedback at best.
¨ Employees feel they have a greater voice in organizational decisionmaking and, in fact, they do.
Through managerial action plans and changes in work processes, the employees can see the direct
results of the feedback they have provided.
¨ The feedback from subordinates is particularly effective in evaluating the supervisor’s interpersonal
skills. However, it may not be as appropriate or valid for evaluating task-oriented skills.
¨ Combining subordinate ratings, like peer ratings, can provide the advantage of creating a composite
appraisal from the averaged ratings of several subordinates. This averaging adds validity and
reliability to the feedback because the aberrant ratings get averaged out and/or the high and low
ratings are dropped from the summary calculations.
--------------------------------------------------------------------------
What cautions should be addressed?
¨ The need for anonymity is essential when using subordinate ratings as a source of performance
feedback data. Subordinates simply will not participate, or they will give gratuitous, dishonest
feedback, if they fear reprisal from their supervisors. If there are fewer than four subordinates in
the rating pool for a particular manager, the ratings (even though they are averaged) should not be
given to the supervisor.
¨ Supervisors may feel threatened and perceive that their authority has been undermined when
they must take into consideration that their subordinates will be formally evaluating them.
However, research suggests that supervisors who are more responsive to their subordinates,
based on the feedback they receive, are more effective managers.
¨ Subordinate feedback is most beneficial when used for developmental purposes. It also can
be used in arriving at the performance rating of record, but precautions should be taken to
ensure that subordinates are appraising elements of which they have knowledge. For example,
if a supervisor’s performance plan contains elements that address effective leadership
behaviors, subordinate input would be appropriate. It may not be appropriate for the employee
to appraise the supervisor’s individual technical assignments .
¨ Only subordinates with a sufficient length of assignment under the manager (at least 1 year is
the most common standard) should be included in the pool of assessors. Subordinates
currently involved in a disciplinary action or a formal performance improvement period should
be excluded from the rating group.
¨ Organizations currently undergoing downsizing and/or reorganization should carefully balance
the benefits of subordinate appraisals against the likelihood of fueling an already tense
situation with distrust and paranoia.
Setting Customer Service Standards, requires organizations
to survey internal and external customers, publish customer service standards, and
measure organization performance against these standards. Internal customers are defined as users of
products or services supplied by another employee or group within the organization.
External customers are outside the organization and include customers,vendors and the general
public.
What does this rating source contribute?
¨ Customer feedback should serve as an “anchor” for almost all other performance factors.
Combined with peer evaluations, these data literally “round out” the performance feedback
program and focus attention beyond what could be a somewhat self-serving hierarchy
of feedback limited to the formal “chain of command.”
¨ Including a range of customers in the 360-degree performance assessment program expands
the focus of performance feedback in a manner considered absolutely critical to reinventing
organization. Employees, typically, only concentrate on satisfying the standards and
expectations of the person who has the most control over their work conditions and
compensation. This person is generally their supervisor. Service to the broader range of
customers often suffers if it is neglected in the feedback process.
---------------------------------------------------------------------
What cautions should be addressed?
¨ With few exceptions, customers should not be asked to assess an individual employee’s
performance. The value of customer service feedback is most appropriate for evaluating team
or organizational output and outcomes. This feedback can then be used as part of the appraisal
for each member of the team. The possible exceptions are evaluations of senior officials
directly accountable for customer satisfaction and evaluations of individual employees in key
“front line” jobs personally serving internal or external customers.
¨ Customers, by definition, are better at evaluating outputs (products and services) as opposed
to processes and working relationships. They generally do not see or particularly care about
the work processes, and often do not have knowledge of how the actions of employees are
limited by regulations, policies, and resources.
¨ Designing and validating customer surveys is an expensive and time-consuming process. The
time and money are best spent developing customer feedback systems that focus on the
organization or work unit as a whole.
===============================================
6-learning and development
THE DEVELOPMENT OF TRAINING/DEVELOPMENT/LEARNING
is an outcome of the performance appraisal.
===================================================
7-rewarding performance
RECOGNITION / REWARDS FOR PERFORMANCE.
=======================================
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
SHOW THE SMALL BUSINESS OWNERS/MANAGERS
THE BENEFITS OF ''PA SYSTEM''.
FOR THE ORGANIZATIONS.
At a macro level performance appraisals assists organisations to match outcomes with organization objectives. It provides a system for improving organization performance and outcomes, within the organization's policy framework, while maintaining good industrial relations. It generates benefits throughout organisational functions and processes.
Performance appraisal recognises that people are the organisation’s most valuable resource, and that people are the key to an innovative, professional and service-oriented public service. Performance management emphasises the relationship between the management and development of people and an effective organisation, and provides a fair and equitable environment for improving performance.
A performance appraisal system links achievements at all levels of the organisation with corporate, business and unit's objectives. It provides the framework for:
· clarifying expectations, roles, responsibilities and resources required to achieve goals;
· improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
· linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
· facilitating, encouraging and assessing performance;
· encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
· introducing an outcomes focused culture and increasing motivation;
· collecting data and information needed for management decision making or external review ;
· increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
· identifying performance which requires improvement; and
· recognising and acknowledging performance.
======================================================
How might each of these functions be used?
FOR INDIVIDUAL EMPLOYEES,
-an opportunity for self appraisal.
-an opportunity for the manager to appraise the staff.
-helps to determine the strengths of the employee.
-helps to determine areas for improvements
-helps to determine the employee training needs.
-helps to determine the types of training programs
-helps to determine the merit rewards for the employees.
-an opportunity to acknowledge / offer recognition for performance
-an opportunity to improve the employee's capability/competencies.
-helps to develop individual development plan.
etc etc
===================================================
FOR THE ORGANIZATION,
It can make the organization
-very market oriented.
-bench marking against the best in the market.
-skills training are targeted to achieve to be best in the market.
-company strategy oriented.
-result oriented approach.
=======================================
FOR THE SUPERVISORS/ MANAGERS
Appraisals are a very practical way to manage your staff effectively. They allow you to:
Know what your employees have achieved and can achieve
Know what your employees’ weaknesses are
Understand how each employee’s role fits into the overall business
Compare the efficiency of different staff members
Set realistic goals
Identify ways your business can be expanded or enhanced
They allow your staff to:
Feel valued
Understand what is expected of them
Understand the business they are involved in
Understand their weaknesses
Identify their strengths
Identify areas they need further training in
Offer opinions and insights that may improve the business as a whole
============================================
USING THE PERFORMANCE APPRAISALS FOR IMPROVEMENTS
The results of appraisals should play a major role in informing your business decisions. You need to react to both the positive and the negative to ensure that the business runs smoothly and staff morale is kept high.
The changes you introduce may be wide ranging and varied, major or minor. For example, they could include:
Salaries, bonuses and other benefits
Training programs and team-building events
New short meetings every Monday morning or every morning to motivate staff
Improvements in staff conditions, or changes in work space arrangements (i.e one group of staff may work better if they are closer together physically, or the office may benefit from new decorations or better equipment)
Changes in the hierarchy (one member of staff may be more effective in a managerial position, or forming a new team may necessary to improve efficiency).
Changes in job descriptions or responsibilities (some employees may benefit from extra duties or more specifically formulated tasks/responsibilities).
Remember that once you introduce such changes as a result of appraisals you need to monitor to see if overall staff and business performance is improved.
#############################################
each of these functions be used
· clarifying expectations, roles, responsibilities and resources required to achieve goals;
[PROVIDES THE BASIS FOR THE APPRAISAL LIKE -ROLES/RESPONSIBILITIES
AND STANDARDS, AGAINST WHICH THE APPRAISAL IS TAKEN.]
-----------------------------------------------------------------------------------------------------------
· improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
[PERFORMANCE APPRAISAL HELPS TO SET THE SCENE FOR
AN EFFECTIVE DIALOGUE BETWEEN MANAGER AND STAFF. ]
----------------------------------------------------------------------------------------------------------
· linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
[PROVIDES A VEHICLE FOR CONTINUOUS IMPROVEMENT
FOR THE INDIVIDUAL AND THE DEPARTMENT .]
----------------------------------------------------------------------------------------------------
· facilitating, encouraging and assessing performance;
[PROVIDES A MODE FOR FACILITATING AND ENCOURAGING
THE PERFORMANCE ASSESSMENT ]
------------------------------------------------------------------------------------------
· encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
[PROVIDES A STRUCTURED PLATFORM FOR PROVIDING THE
FEEDBACK TO THE STAFF.]
------------------------------------------------------------------------------------------
· introducing an outcomes focused culture and increasing motivation;
[PROVIDES AN OUTCOME FOR BOTH THE MANAGERS
AND THE STAFF, WHICH INCREASES THE MOTIVATION
OF BOTH THE PARTIES.]
-------------------------------------------------------------------------------------------
· collecting data and information needed for management decision making or external review ;
[PROVIDES INFORMATION FOR HUMAN RESOURCE PLANNING
ON PROMOTIONS / TRANSFERS/ TRAINING.]
------------------------------------------------------------------------------------------------
· increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
[ PROVIDES THE BASE FOR IMPROVING THE ORGANIZATION
CAPABILITY ]
------------------------------------------------------------------------------
· identifying performance which requires improvement; and
[ PROVIDES THE BASE INFORMATION FOR INDIVIDUAL
DEVELOPMENT PLANS.]
----------------------------------------------------------------------------------
· recognising and acknowledging performance.
[ PROVIDES INFORMATION FOR RECOGNITION
AND REWARDS FOR INDIVIDUALS.]
==========================================
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