Performance appraisal consists of the steps of:

• Observing and assessing employee performance

• Recording the assessment

• Providing feedback to employees.

During performance appraisal skillful managers give feedback and praise concerning the acceptable elements of the employee's performance. They also describe performance areas that need improvement.

To assess performance accurately, the dimensions of the job must be analyzed and a method determined to appraise each relevant dimension. The results of the appraisal must then be conveyed to the employee directly, through a third party (as a customer), or by indirect means.

When rating employees directly, two common problems occur:

• The Halo Effect -- a rater provides the same rating on all dimensions even if the performance varies and is good on some dimensions and poor on others.

• Homogeneity -- a rater gives all employees a similar rating regardless of individual differences in performance.

One tool to overcome this problem is the Behaviorally Anchored Rating Scale (BARS) that relates performance to specific job related incidents.

BARS Example

Job: Project Manager
Work Dimension: Work Scheduling

	9			Develops a comprehensive schedule, document, it, obtains required approvals, and distributes it to all concerned.
Plans, communicates, and observes target dates and updatse the status of operations relative to plans, making schedule modifications as quickly as necessary			8
	7			Experiences minor operational problems but still communicates effectively, laying out all parts of the job and schedules for each
Usually satisfies time constraints, with time and cost overruns coming up infrequently			6
	5			Makse list of due dates and revises them but is frequently surprised by unforeseen events.
Has a sound plan but neglects to keep track of target dates or to report schedule slippages or other problems as they occur			4
	3			Plans poorly, with ill-defined, unrealistic time schedules
Has no plan or schedule of work and no concept of realistic due dates			2
	1			Fails consistently to complete work on time because of no planning. Expresses no interest in how to improve.

 

The Performance Appraisal Interview

PPerformance appraisal interviews are often done annually. Too often the meeting between boss and subordinate does not stimulate better job performance. Managers may be unaware of the true causes of performance problems because they have not carefully observed employee job activities. Their useful ideas to help the subordinate improve may be rejected if the ideas are presented in a threatening manner.

Some suggestions to improve effectiveness are:

• Rater should be knowledgeable about the subordinates' jobs and performance levels.

• The rater should welcome employee participation during the interview. This is particularly true when the employee is knowledgeable and accustomed to participating with the supervisor. (In other words, the rater should not try to "tell and sell" their views by lecturing to the subordinate during the interview)

• A flexible approach to feedback based on the characteristics of the subordinate, the job, and his/her performance level is useful. For example, newer employees need more frequent feedback than other employees do.

• Training can help supervisors devise interview strategies for different situations. Role-playing involving practice appraisal interviews can help.

Guidelines for Effective Feedback

When giving feedback,

1. Be descriptive, not evaluative. Effective feedback describes the behavior rather than evaluates it. For example it is more effective to say, "You have interrupted me ten times during this meeting," rather than "You're loudmouthed and inconsiderate." The descriptive statement describes only the behavior ("You did …"). The evaluative statement attacks the individual ("You are …"). An individual will be less defensive in response to a valid description than he/she will to a personal attack.
2. Focus on the feelings the behavior evokes, not on a demand to change. For example, it is more effective to say, "When you interrupt me it makes me feel like you don't care about what I have to say." It is less effective to say, "You have to stop interrupting people." The second statement may more accurately reflect your feelings but probably will not help the individual change. Helpful feedback is given so the person can better understand the effect his/her behavior has on you. It is up to the person receiving the feedback to decide what to do about it, if anything.
3. Be specific, not general. Effective feedback gives specific examples of the behavior rather than general ones. For example, it is more effective to say, "You have interrupted me ten times during this meeting," rather than, "You always interrupt people." The more specific the feedback, the easier it is for the person receiving the feedback to understand exactly what you mean, to believe what you say, and to develop a plan for change.
4. Focus on what can be controlled, not on what is uncontrollable. Effective feedback concerns behavior the individual can do something about. Telling someone about something over which he/she has no control will only be frustrating and create resentment. For example, saying, "Your voice really gets on my nerves," is not helpful feedback.
5. Give timely feedback. Feedback is more effective when it is given as soon as possible after the occurrence. Of course, "as soon as possible" must be considered in light of your state of mind and with deference to the feelings of the individual to whom you wish to give feedback. It is not a good idea to give feedback when you are angry, when it might embarrass the receiver, or when the receiver is particularly vulnerable.
6. Focus on the effect of the behavior, not the reasons for it. Effective feedback focuses on the effect the behavior has on you. Analyzing the reasons for an individual's behavior is beyond the boundary of feedback; it belongs in a psychologist's office. It is helpful to assume that the target of your feedback has good intentions.
7. Give both positive and negative feedback. Both are important. Although there is a tendency to think of feedback in negative terms only, people are more likely to take negative feedback seriously if they believe that their positive behavior is also observed and acknowledged. People are also more likely to believe the positive feedback you give them if they know you are being honest with them in general. The ideal is to find a balance between positive and negative. This does not mean that every time you give someone negative feedback you must also strain to find something positive to say.
8. Make sure your motivation is to help, not to punish. Before you give feedback you should be honest with yourself about your motivation. Remember feedback is not a demand to change, nor should it ever be done to punish, win against, or dominate the other person. You should only give feedback if you can honestly tell yourself that your motivation is to help the other person or to strengthen your relationship.

When receiving feedback:

1. Elicit feedback, don't wait for it. Because people may not always be willing to take the risk to tell you about how your behavior is affecting them, you may get this valuable information only if you ask. This does not mean you should ask everyone you meet how they feel about you. It does mean that, when you have a question about how a behavior has been received -- the more specific the better -- you should take the chance and ask.
2. Concentrate on listening; don't let your mind wander. To be effective, feedback must be heard and understood. For this to happen it is important that you concentrate on what is being said to you. They may take some effort. Our minds tend to wander. It is common to spend the time when you should be listening formulating an appropriate response. Listening is the stage where communication most commonly breaks down. Therefore, when someone is giving you feedback -- whether you think he/she is right or wrong -- listen carefully and concentrate on understanding what is being said.
3. Check for understanding, don't assume. When you receive feedback, make sure that what you understand is what the giver means. We all hear things through a variety of different filters, which can distort meaning and cause misunderstanding. To avoid this, rephrase the feedback and ask the person giving you feedback whether this is what was meant.
4. Clarify unclear points, don't justify actions. One of the most common errors people make when receiving feedback is justifying, explaining, or defending their behavior. This is counterproductive. Your reasons are really irrelevant. You should be interested in the effect your behavior is having on the other person. Justifying, explaining, and defending often makes people reluctant to give you feedback in the future because they may feel they are wasting their time. Ask questions to maximize your understanding. These questions may involve the clarification of points that are not clear to you or a request for a specific example. When asking questions, it is important not to be challenging or defense. For example, it is a good idea to say, "It would help me understand what you mean if you could give me an example." It is not helpful to say, "I don't think I do that. Give me an example."
5. Ask others to confirm/disconfirm what you hear; don't discount it. Sometimes you will receive feedback that is inconsistent with your perceptions of your behavior. When this happens, it is easy to discount what you have heard. However, we are often the worst judge of the effects of our behavior on others. Rather than just automatically discounting incongruous feedback, elicit additional feedback from others by actively seeking it out.

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