Chapter 8 : Performance Management

Learning Objectives

After studying this chapter, you should be able to:

OUTCOME 1
•Explain what performance management is and how the establishment of goals, ongoing
performance feedback, and the evaluation process are part of it.
OUTCOME 2
•Describe the different sources of performance management information.
OUTCOME 3
•Explain the various methods used to evaluate the performance of employees.
OUTCOME 4
•Outline the characteristics of effective performance evaluation meetings and feedback sessions and
ways in which the performance of employees can be improved.
 Introduction

We have discussed some of the ways that you as a manager can acquire topnotch
employees and train and develop them. But how do you know if your
efforts are really paying off in terms of what the employees are contributing
once they are on the job?
 Performance Management Systems
Performance Management: Process of creating a work environment where employees can perform to their best
abilities to meet a company’s goals. It’s an entire work system that aligns with the company's objectives
Performance Evaluations: Also known as performance appraisals or reviews, they evaluate an employee's
performance relative to job requirements, aiming to identify areas for improvement
Purpose of Performance Management:
•Align employee goals with company goals.
•Provide continuous feedback.
•Encourage and reward employees for good performance.
•Maintain and enhance productivity toward strategic goals
Evaluation Frequency:
•Annually (76% of firms).
•Biannually (12% of firms).
•Quarterly reviews are becoming more common in some organizations.
Performance Management Systems
Performance Management Systems
 Performance Management Systems
Probationary Status:
•New employees may be evaluated at 30, 60, or 90 days as part of probation, with continued employment depending on performance.
Performance Management as a Whole: Performance evaluations are part of the overall performance management process, which
includes goal alignment, ongoing feedback, and development, similar to how tests and feedback work in education to motivate
improvement.
Purposes of Performance Management
•Administrative Purposes:
• Provides input for promotions, transfers, layoffs, and pay decisions.
• Supports "pay for performance" practices, where pay is linked to performance achievements.
• Helps maintain legal records for defending against discrimination claims regarding promotions, salaries, and terminations.
• Provides data for HR planning (HRP), job evaluation, recruitment, and selection validation.
Developmental Purposes:
•Provides feedback and discusses employee goals in alignment with the company’s objectives.
•Focuses on strengthening employees' skills, eliminating weaknesses, and furthering careers.
•Shifts the manager's role from "judge" to "coach."
 Performance Management Systems
Challenges in Performance Management
•Why Systems Fail:
• Discouraging teamwork: Focuses too much on individual performance, neglecting team or company achievements.
• Limited usefulness: Seen as helpful only for extreme cases (high/low performers), not for the average employee.
• Short-term focus: Evaluations often emphasize short-term achievements instead of long-term growth.
• Lack of feedback: Formal feedback is often infrequent, with many employees only receiving feedback during evaluations.
• Incomplete execution: In small businesses, employees may receive little to no feedback due to time constraints or resource
limitations.
Innovative Approaches
•Alternatives to Formal Evaluations:
• Some companies shift away from formal evaluations, opting for ongoing coaching and individual development plans.
•Crowdsourcing in Performance Management:
• Some companies use crowdsourcing for performance feedback through social recognition applications. Employees receive
real-time feedback, compliments, and recognition from coworkers.
• Examples: 3M, Marriott, Starwood Hotels, Eli Lilly are among companies using social recognition software to promote
teamwork and identify top performers.
Performance Management Systems
 Developing an Effective Performance
Management System

Developing an Effective Performance Management System

•HR’s Role:
HR typically oversees and coordinates the performance management system. However, managers from operating
departments should also help establish objectives to ensure alignment with company goals.
•Employee Involvement:
Employees are more likely to accept the system if they participate in its development, such as by helping to
identify important job behaviors.
Performance Standards
•Definition:
Standards should be job-related, specific, measurable, and written down to provide clear expectations.
•Example:
Instead of “ability to handle customer orders,” a more effective standard is “customer orders will be filled in 4
hours with 98% accuracy.”
Developing an Effective Performance
Management System
 Developing an Effective Performance
Management System

• Elements of Performance Standards

• Strategic Relevance:
Standards should align with organizational objectives (e.g., “95% of customer complaints must be resolved
within 1 day”).
• Criterion Deficiency:
Standards should capture all aspects of an employee’s job. Focusing only on quantifiable metrics like sales
revenues while ignoring customer service creates a gap in evaluation.
• Criterion Contamination:
External factors outside an employee’s control should not influence performance comparisons (e.g., using
newer machines vs. older ones in production).
• Reliability:
Ratings should be consistent over time and among different raters. Calibration meetings, where supervisors
discuss and standardize their evaluations, help ensure consistency.
 Developing an Effective Performance
Management System

Fairness and Acceptability

•Fairness:
Organizational politics, manager biases, and company culture can influence how employees are rated.
Involvement in the system’s design helps employees see it as fair.
•Acceptability:
The system should be easy to use and not overly time-consuming, or else it risks failing.
Legal Considerations
•Performance ratings must be job-related and developed through a job analysis.
•Employees should be provided with clear job standards in writing.
•Performance issues should be documented and discussed with employees.
•Supervisors should be trained on how to use evaluation forms properly to avoid discrimination or bias.
 Developing an Effective Performance
Management System
• Who Should Appraise Performance?
• Managers/Supervisors:
Traditionally, supervisors evaluate employees, though they may lack full observation due to time constraints.
• Self-Evaluations:
Employees assess their own strengths and weaknesses. These evaluations are often used for development rather than
administrative decisions.
• Peer Evaluations:
Coworkers evaluate each other’s leadership, interpersonal skills, and overall performance. This can provide more accurate
insights than manager evaluations alone.
• Subordinate Evaluations:
Subordinates can provide feedback on managerial leadership, delegation, and support. These evaluations are typically used
for development purposes and submitted anonymously.
• Team Evaluations:
Evaluations of a team’s collective performance are useful in environments where individual contributions are hard to
separate from team efforts.
• Customer Evaluations:
Both internal and external customers can provide feedback on employees. This is common in customer-facing roles like
sales and service.
 Developing an Effective Performance
Management System
Calibration Meetings
•A process in which managers discuss employee
performance to ensure consistency across the
organization.
•Helpful in situations such as mergers or when
training new managers.

Legal Guidelines for Performance Evaluations

•Evaluations must be job-related and documented.
•Supervisors must observe employee behavior and
have measurable standards for comparison.
•Employees should have a chance to appeal their
evaluations if they disagree with the ratings.
 Developing an Effective Performance
Management System
Putting It All Together: 360-Degree Evaluations
•Definition and Purpose:
• 360-Degree Evaluation: A comprehensive performance appraisal method that gathers feedback from multiple
sources around an employee, including supervisors, peers, subordinates, and customers.
• Objective: To provide a well-rounded and accurate view of an employee’s performance by incorporating
diverse perspectives.
•Advantages of 360-Degree Evaluations:
• Comprehensive Feedback: Captures a complete picture of employee performance from various angles.
• Enhanced Self-Awareness: Helps employees understand how they are perceived by different stakeholders.
• Improved Development: Identifies strengths and areas for improvement from multiple sources, facilitating
targeted development plans.
• Increased Accountability: Encourages a culture of continuous feedback and accountability.
 Developing an Effective Performance
Management System
• Disadvantages of 360-Degree Evaluations:
•Potential for Bias: Feedback may be influenced by personal relationships or conflicts.
•Time-Consuming: Collecting and compiling feedback from multiple sources can be resource-intensive.
•Confidentiality Concerns: Ensuring anonymity can be challenging, potentially leading to reluctance in providing honest
feedback.
•Overwhelming Feedback: Employees might receive conflicting feedback, making it difficult to prioritize improvements.
• Safeguards Implemented by Intel for 360-Degree Evaluations:
• Ensure Anonymity:
• Confidential Responses: Employees do not know who provided specific feedback, except for the supervisor’s
ratings.
• Promotes Honesty: Encourages honest and unbiased feedback without fear of repercussions.
Developing an Effective Performance
Management System
Developing an Effective Performance
Management System
Developing an Effective Performance
Management System
 Developing an Effective Performance
Management System
•Make Respondents Accountable: Supervisor Discussions: Supervisors review each evaluator’s input to ensure
appropriate use of rating scales.
•Reliability Checks: Supervisors assess the reliability of responses and compare them with other participants’ ratings
•Prevent “Gaming” of the System: Avoid Inflated or Deflated Ratings: Supervisors monitor for overly high or low
evaluations to prevent manipulation.
•Detect Collusion: Check for patterns where team members might give uniformly high or low ratings to each other.
•Validation: Supervisors verify the validity of responses to ensure genuine feedback.
•Use Statistical Procedures: Weighted Averages: Combine evaluations using quantitative methods to ensure balanced
results.
•Objective Data Handling: Avoid subjective interpretations that could undermine the evaluation’s integrity.
•Identify and Quantify Biases:Bias Detection: Analyze feedback for prejudices related to age, gender, ethnicity, or other
factors.
•Mitigation Strategies: Implement measures to reduce identified biases and ensure fair evaluations.
 Developing an Effective Performance
Management System
Benefits Observed by Companies Using 360-Degree Feedback:
•Canadian Tire Example: Demonstrated that 360-degree feedback can be an effective performance appraisal method when properly
implemented.
•Overall Success Factors:
• Effective Use of Information: Managers must utilize the feedback constructively to support employee development.
• Fair Treatment: Ensuring fairness in the evaluation process increases acceptance and effectiveness.
Training Appraisers
•Importance of Training:
• Accuracy and Usefulness: Proper training ensures that appraisers provide accurate and constructive feedback.
• Avoiding Destructive Feedback: Reduces the risk of harmful or demotivating evaluations.
Common Training Gaps:
•Lack of Evaluation of Evaluators: Over half of companies surveyed do little to evaluate how well supervisors conduct evaluations.
•Need for Continuous Improvement: Training should be an ongoing process to enhance appraisal skills.
 Developing an Effective Performance
Management System
•Strategies for Effective Training:
• Objective Observation: Teach managers to objectively observe and document employee performance without
bias.
• Feedback Skills: Equip managers with techniques to deliver feedback in a constructive and supportive manner.
• Evaluation Consistency: Standardize evaluation methods to ensure consistency across different raters and
departments.
Establishing an Evaluation Plan
•Systematic Training Process:
• Explain Objectives and Philosophy:
• Purpose Clarification: Define whether evaluations are for compensation, development, or both.
• Philosophical Alignment: Ensure raters understand the underlying philosophy of the performance
management system
 Developing an Effective Performance
Management System
•Define Evaluation Mechanics: Performance Records: Instruct managers on how to maintain and review performance
documentation.
•Evaluation Frequency: Specify how often evaluations should be conducted (e.g., annually, quarterly).
•Rater Responsibilities: Clarify who will conduct evaluations and their specific roles.
•Performance Standards: Detail the standards against which employees will be measured.
•Preparation Guidelines: Provide steps for managers to prepare effectively for evaluations.
•Address Weaknesses and Problems: Error Awareness: Educate raters on common evaluation pitfalls and how to avoid
them.
•Problem-Solving: Train managers to identify and mitigate issues during the evaluation process.
 Developing an Effective Performance
Management System
Eliminating Rating Errors
•Types of Rating Errors:
• Halo Error:
• Definition: When a manager’s overall impression of an employee skews their ratings of specific behaviors.
• Example: An employee is rated highly in all areas because of one outstanding trait.
• Horn Error:
• Definition: The opposite of halo error; one negative trait affects the overall evaluation.
• Example: A single area of poor performance leads to a generally low performance rating.
•Distributional Error: Central Tendency: Avoid rating all employees as average, neglecting top and bottom performers.
•Leniency Error: Giving overly high ratings to all employees.
•Strictness Error: Giving overly low ratings to all employees.
 Developing an Effective Performance
Management System
•Temporal (Recency) Error: Definition: Overemphasizing recent performance over the entire evaluation period.
•Example: An employee’s performance last month disproportionately affects their annual review.
•Contrast Error: Definition: An employee’s rating is influenced by the performance of others.
•Example: An average performer looks good compared to a poor performer but bad compared to a star performer.
•Similar-to-Me Error: Definition: Managers favor employees who are similar to themselves in some way.
•Example: Managers rate employees from the same hometown or alma mater more favorably.

•Strategies to Reduce Rating Errors: Calibration Meetings:

• Purpose: Ensure consistency and fairness in evaluations across different managers and departments.
• Process: Managers discuss and align their ratings to minimize individual biases and discrepancies.
• Benefits: Promotes uniform standards and reduces inconsistencies, especially in diverse or merged
organizations.
Developing an Effective Performance Management
System
 Developing an Effective Performance
Management System
•Clear Performance Anchors: Definition: Specific descriptions for each rating level to guide raters in making objective
assessments.
•Implementation: Provide detailed examples of behaviors corresponding to each rating category.
•Forced Distribution: Definition: Require a certain percentage of employees to fall into predefined performance
categories.
•Pros: Can address leniency and strictness errors by enforcing a balanced distribution.
•Cons: May create unhealthy competition, reduce morale, and lead to inaccurate representations if most employees
perform similarly.
•Examples of Abandonment: Companies like Ford, Goodyear, and Microsoft discontinued forced ranking due to
negative impacts.
•Documentation Practices: Performance Logs: Encourage managers to maintain ongoing records of employee
performance to provide balanced evaluations.
•Regular Updates: Use diaries or logs to track achievements and areas needing improvement throughout the
evaluation period.
 Developing an Effective Performance
Management System
Feedback Training
•Importance of Effective Feedback:
• Engagement: Employees seek meaningful feedback to understand their performance and growth
opportunities.
• Continuous Improvement: Ongoing feedback fosters a culture of continuous development rather than isolated
evaluations.
•Common Issues with Feedback:
• Nervousness: Managers may feel anxious about delivering feedback, leading to superficial or rushed
evaluations.
• Conflicting Purposes: Balancing performance improvement with compensation decisions can dilute the focus
of feedback sessions.
• Delayed Corrections: Waiting for formal evaluations to address performance issues can hinder timely
improvements.
 Developing an Effective Performance
Management System
• Key Areas for Feedback Training:
• Effective Communication:
• Clarity and Support: Train managers to communicate feedback clearly and supportively to gain employee buy-
in.
• Active Listening: Encourage managers to listen actively to employees’ responses and concerns during
feedback sessions.
• Diagnosing Root Causes:
• Problem Identification: Equip managers with skills to identify underlying causes of performance issues.
• Solution-Oriented Approach: Focus on addressing root problems rather than just symptoms.
•Setting Goals and Objectives: Collaborative Goal Setting: Work with employees to set realistic and achievable goals
for improvement.
•SMART Goals: Ensure goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
Developing an Effective Performance
Management System
 Performance Evaluation Methods
• Categories of Evaluation Methods:
• Trait Methods: Focus on individual characteristics like dependability and leadership.
• Behavioural Methods: Emphasize specific employee actions on the job.
• Results-Oriented Methods: Measure employee contributions to the organization through quantifiable
outcomes.
• Trait Methods:
• Trait methods evaluate personal qualities and characteristics that are important for job performance.
• Graphic Rating Scales:
• Description: Employees are rated on various traits using a scale (e.g., from 1 to 5).
• Variations: Differences in performance dimensions and definitions of rating points.
• Advantages: Easy to develop and use.
• Disadvantages: Subjectivity and bias if traits aren’t well-defined.
• Improvements: Can be made more objective with rater training and clearly defined scales.
Performance Evaluation Methods
 Performance Evaluation Methods
Mixed-Standard Scales:
•Description: Each trait has three levels of performance (superior, average, inferior), presented randomly.
•Evaluation: Supervisors indicate whether employee performance is better, equal, or worse than each level.
•Advantage: Reduces subjectivity.
•Disadvantage: Can be confusing and difficult to apply
Forced-Choice Method:
•Description: Raters choose between statements that seem equally favorable/unfavorable, but distinguish good vs. poor
performance.
•Advantage: Reduces bias since the correct response isn’t obvious.
•Disadvantages: Can be costly to develop and frustrating for raters.
Essay Method:
•Description: Appraiser writes a descriptive essay highlighting employee strengths, weaknesses, and recommendations.
•Advantages: Provides rich, descriptive feedback; highlights unique traits and abilities.
•Disadvantages: Time-consuming; subjective; depends on writing skills of the appraiser.
Performance Evaluation Methods
 Performance Evaluation Methods
• Behavioural Methods:
• These methods focus on observable and measurable actions or behaviors on the job.
• Critical Incident Method:
• Description: Supervisor keeps a log of employee actions, especially those resulting in success or failure.
• Use: Helps justify ratings and counsel employees on performance problems.
• Advantages: Increases objectivity; helps with ongoing feedback.
• Disadvantage: Can be time-consuming to track incidents
Behavioural Checklist Method:
•Description: Raters check off statements that describe employee behaviors (e.g., “questions customers about their
needs”).
•Advantage: Provides specific examples of behaviors to discuss with employees.
•Disadvantage: May lack depth if the checklist is poorly designed
 Performance Evaluation Methods
Behaviourally Anchored Rating Scale (BARS):
•Description: Each job dimension has a vertical scale anchored by specific behaviors (identified from critical
incidents).
•Development: Involves subordinates and managers, improving acceptance and content validity.
•Advantages: More accurate ratings; better acceptance by employees.
•Disadvantages: Time-consuming and complex to develop.

Behaviour Observation Scale (BOS):

•Description: Similar to BARS, but rates the frequency of observed behaviors.
•Advantages: Preferred for its objectivity and ability to provide constructive feedback.
•Disadvantages: Requires detailed observation and documentation.
Performance Evaluation Methods
 Performance Evaluation Methods
• Results-Oriented Methods:
• Results methods focus on the outcomes employees achieve, offering a more objective way to measure
performance.
• Productivity Measures:
• Description: Focuses on quantifiable results, such as sales volume, units produced, or revenue generated.
• Use: Commonly applied to salespeople, production workers, and executives.
• Advantages: Objective, aligns individual performance with organizational goals.
• Disadvantages:
• External factors (e.g., bad sales territories, supply chain issues) can affect results.
• Can encourage short-term focus over long-term performance.
Balancing Results and Behaviour:
•For service-oriented roles, focusing solely on results may be insufficient. Factors like adaptability, teamwork, and
initiative should be incorporated into the evaluation.
 Performance Evaluation Methods
• Management by Objectives (MBO):
• Overview of MBO:
• MBO is a management approach where employees set objectives in consultation with their superiors.
• Employees are evaluated based on how well they achieve these objectives.
• The MBO system functions as a cycle, starting from setting organizational objectives and returning to the
same step after evaluation.
• This system aligns goals at various levels: organizational, departmental, managerial, and individual.
• Steps in MBO Cycle:
• Organizational Goal Setting:
• The process begins with defining the organization’s common goals and objectives.
• Departmental Goal Setting:
• Departments within the organization establish goals that align with the broader organizational objectives.
Performance Evaluation Methods
 Performance Evaluation Methods
Individual Goal Setting:
•Individual managers and employees set their objectives, ensuring alignment with department and company goals.
Joint Review and Adjustment:
•Employees discuss their goals with supervisors, and both parties review and modify the objectives until they agree.
•A detailed action plan and metrics for success are established
Periodic Progress Reviews:
•The employee’s progress toward the goals is periodically reviewed.
•Goals and metrics may be adjusted based on new information.
Self-Evaluation:
•After a set period (usually six months to a year), employees conduct a self-evaluation of their progress.
•Documentation is provided to support their self-assessment
Final Supervisor Evaluation:
•The supervisor reviews the employee’s self-evaluation, and both discuss performance.
•The connection between individual performance and organizational goals is examined.
 Performance Evaluation Methods
Benefits of MBO:
•Goal Clarity: Helps employees focus clearly on what needs to be done.
•Regular Evaluation: Employees regularly compare their performance against set objectives.
•Learning and Development: Employees gain insights into areas of improvement as they evaluate progress.
Guidelines for MBO Success:
•Objectives should be quantifiable: Goals must be measurable, with clear steps to accomplish them.
•Results must be under the employee's control: Employees should have autonomy over the methods to achieve
their goals, with accountability for the outcomes.
Alignment across levels: Organizational, departmental, and individual goals must align for the system to work
effectively.
Set time frames for evaluation: Establish specific periods when goals will be reviewed and evaluated.
 Performance Evaluation Methods
• Balanced Scorecard (BSC):
• Overview of the Balanced Scorecard:
• The BSC evaluates performance in four key areas: financial measures, customer measures, process measures, and learning
measures.
• It can be used to evaluate individuals, teams, business units, and the overall organization.
• The BSC translates broad corporate goals into cascading divisional, departmental, team, and individual goals.
• Key Components of BSC:
• Financial Measures:
• Focus on financial objectives such as revenue, profit, cost management, etc.
• Customer Measures:
• Include customer satisfaction, retention rates, and delivery performance.
Process Measures:
•Focus on internal processes, ensuring operational efficiency and effectiveness.
Learning Measures:
•Aim to assess continuous improvement, employee development, and innovation.
Performance Evaluation Methods
 Performance Evaluation Methods
Steps in Implementing a BSC:
•Set clear objectives: The firm’s strategy is broken down into understandable and measurable goals for managers and
employees.
•Cascading Goals: Corporate-level objectives are translated into business unit, departmental, and individual employee goals.
•Attach measures to each objective: Each goal is measurable, and these measures are added to the scorecard.
•Provide performance feedback: Managers must regularly inform employees about their progress towards meeting goals,
identifying reasons for success or failure.
•Empower employees: Employees should be given the freedom to make improvements in their work methods.
•Reassess the strategy: Use performance data to refine and adjust the company’s strategy.
Benefits of BSC:
•Alignment of goals: Ensures all levels of the organization work towards common strategic objectives.
•Improved communication and learning: The BSC enhances communication between different parts of the organization and
fosters a learning environment.
•Focus on key areas: Balances focus on financial performance with customer satisfaction, process improvements, and
learning opportunities.
 Performance Evaluation Methods
• Recommendations for Successful BSC
Implementation:
Which Performance Evaluation
• Clear objectives: Ensure all objectives are Method Should You Use?
understandable and attainable.
• Measurable goals: Attach specific measures
to each objective.
• Continuous feedback: Provide ongoing
feedback on employee progress.
• Empowerment: Give employees the
authority to make necessary changes to
improve performance.
• Strategic adjustments: Use BSC feedback to
continuously reassess and adjust the
company’s strategy as needed.
 Performance Evaluation Methods
• Trait Approaches Behavior Approaches
•Strengths: •Strengths:
• Simplicity: Easy to implement and understand. • Actionable Feedback: Provides specific examples
• Quick to Administer: Can be completed in a of behaviors that can be improved.
short time frame.
• Objective Measurement: Based on observable
• Focus on Personal Characteristics: Evaluates behaviors, which can reduce subjectivity.
essential traits that may contribute to job
• Supports Development: Useful for guiding
success (e.g., dependability, initiative).
employee training and development initiatives.
•Weaknesses:
•Weaknesses:
• Subjectivity: Highly subjective, leading to
potential bias in evaluations. • Time-Consuming: May require extensive
preparation and documentation.
• Vagueness: Traits may be poorly defined, making
it hard to assess accurately. • Complexity: More sophisticated systems can
overwhelm both managers and employees.
• Limited Development Insights: Focus on traits
rather than actionable behaviors can hinder • Potential for Inconsistency: Different evaluators
employee development. might interpret behaviors differently
 Performance Evaluation Methods
Results Approaches
•Strengths:
• Objective Metrics: Focuses on quantifiable outcomes, reducing subjectivity.
• Alignment with Organizational Goals: Directly links employee performance to business objectives.
• Empowerment: Encourages employees to take ownership of their results and methods.
•Weaknesses:
• External Influences: Results can be affected by factors beyond an employee’s control, leading to unfair evaluations.
• Short-Term Focus: May encourage employees to prioritize immediate results over long-term goals.
• Potential Neglect of Qualitative Factors: Important behavioral or teamwork aspects may be overlooked.
Choosing the Right Performance Evaluation Method
•Consider Organizational Goals:
• Align the evaluation method with the organization’s strategic objectives and culture.
 Performance Evaluation Methods
•Evaluate Simplicity vs. Complexity:
• A simpler system may yield better engagement and usability than a complex one. Complexity can lead
to frustration and underutilization.
•Involve Employees and Managers:
• Use feedback from both managers and employees to assess the effectiveness of the current system and
make adjustments as necessary.
Conduct Regular Audits:
•Implement periodic audits using surveys to gather insights from both parties about the evaluation
process’s effectiveness. This can help identify areas for improvement.
Ensure Follow-Up:
•No evaluation system is effective if the results are not acted upon. Managers should use evaluations as a
basis for constructive discussions with employees about performance and development.
Flexibility:
•Be open to modifying the evaluation method as the organization evolves or as new best practices emerge.
 Performance Evaluation Meetings and Feedback Sessions
• Preparation for the Meeting
•Schedule in Advance: Schedule meetings 10 days to 2 weeks ahead to allow both parties to prepare adequately.
•Separation of Topics: Consider dividing the meeting into two sessions:
• Performance Review: Focus on past performance.
• Growth Plans: Discuss future development goals. This can reduce stress and defensiveness.
• Types of Feedback Formats
• Tell-and-Sell:
• Definition: The supervisor presents evaluations and persuades the employee to change behaviors.
• Skills Required: Persuasion and motivation.
• Limitations: Less communication from the employee; may be used when the employee resists change
• Tell-and-Listen:
•Definition: The supervisor shares strengths and weaknesses, then listens to the employee’s feelings.
•Benefits: Provides an opportunity for emotional expression and mutual understanding.
Performance Evaluation Meetings and Feedback Sessions
 Performance Evaluation Meetings and Feedback Sessions
• Problem Solving:
•Definition: Focuses on collaboration to address performance issues and agree on solutions.
•Characteristics: Active listening, acceptance of feelings, and engagement in finding solutions.
• Feed Forward Interview (Emerging Method):
•Focus: Encourages future-oriented discussion rather than past performance.
•Purpose: Aims to inspire positive changes in behavior and performance
Conducting the Meeting
•Self-Evaluation:
• Encourage employees to assess their own performance before the meeting.
• Enhances fairness and allows for discussion of differing perspectives.
Encourage Participation:
•Promote a two-way dialogue; managers should listen more than they speak (30-35% of the time).
•Active participation helps uncover root causes of performance issues.
 Performance Evaluation Meetings and Feedback Sessions
Express Appreciation:
•Start with positive feedback to motivate and reduce defensiveness.
•Avoid the “sandwich” method; instead, be genuine in praise.
Be Supportive:
•Ask how you can help the employee overcome obstacles.
•Demonstrate care for the employee’s success and well-being.
Minimize Criticism:
•Focus on the most significant performance issues; avoid overwhelming the employee with criticism.
•Use specific, factual statements; avoid exaggeration.
Establishing Goals
•Future Focus: Shift attention from past shortcomings to future performance improvement.
• Emphasize strengths to build upon.
• Limit improvement plans to a few key objectives with clear steps and resources.
 Performance Evaluation Meetings and Feedback Sessions
Follow-Up and Continuous Feedback
•Informal Check-Ins: Schedule regular, informal discussions to monitor progress and address ongoing issues.
•Coaching Role: Transition from being a judge to a coach, fostering ongoing dialogue and support.
Improving Performance
•Identify Underlying Issues:
• Assess three key factors: Ability, Motivation, and Environment.
• Understand that performance issues may arise from skill deficits, lack of motivation, or external
constraints.
Diagnosing Performance Problems:
•Compare performance measures to identify whether issues stem from ability, motivation, or situational factors.
•Utilize behavioral measures to discern actions from results.
Performance Evaluation Meetings and Feedback Sessions
Performance Evaluation Meetings and Feedback Sessions
 Performance Evaluation Meetings and Feedback Sessions
Managing Ineffective Performance
•Focus on Behavior, Not the Person:
• Separate the individual from their actions; address specific behaviors rather than personal traits.
• Communicate acceptable performance standards clearly.
•Action Steps:
• If performance doesn’t improve, consider training, role transfers, or disciplinary measures.
• Ensure all actions are fair, legal, and empathetic to the individual’s situation.
Conclusion
Effective performance evaluation meetings and feedback sessions require thoughtful preparation, clear
communication, and a focus on future improvement. By employing appropriate formats and engaging in open
dialogue, managers can foster a positive atmosphere that encourages employee growth and enhances overall
performance.
Performance Evaluation Meetings and Feedback Sessions
Performance Evaluation Meetings and Feedback Sessions
 Chapter Summary
Performance management is the process of fostering an environment where employees can excel in
achieving a company’s objectives. Central to this process are performance evaluations and feedback
sessions, which assess an employee's performance against job requirements and identify areas for
improvement. While some organizations question the effectiveness of performance evaluations,
most continue to use them, relying on the underlying philosophy, alignment with business goals, and
the skills of those administering the evaluations for success. Feedback on performance can be
gathered from various sources, including self-assessments, supervisors, peers, customers, and
subordinates, ensuring a comprehensive view of an employee's performance. It's essential that
performance management systems comply with legal standards, be job-related, and provide clear
performance criteria. Different evaluation methods—trait, behavioral, and results-based—offer
varying levels of objectivity and detail, with the choice depending on the evaluation's purpose.
Research indicates that involving employees in the evaluation process and setting collaborative goals
can enhance satisfaction and performance. Effective meetings should focus on discussing issues,
showing support, minimizing criticism, and recognizing achievements, ultimately leading to
constructive improvement plans.
 Learn The Terms

• 360-degree evaluation: Performance appraisal from supervisors, peers, subordinates, and clients.
• Behaviour Observation Scale (BOS): Measures frequency of specific job-related behaviors.
• Behaviourally Anchored Rating Scale (BARS): Links behaviors to numerical ratings.
• Calibration: Ensures consistency in performance evaluations.
• Contrast error: Comparing employees to others, not standards.
• Critical incident: Noting effective or ineffective behavior instances.
• Customer evaluation: Feedback from customers.
• Error of central tendency: Avoiding extreme ratings.
• Essay method: Written performance descriptions.
• Forced-choice method: Choosing performance statements.
• Forced distribution: Categorizing employees into performance groups.
 Learn The Terms
• Graphic rating scale method: Rating performance on criteria.
• Leniency or strictness error: Being overly lenient or strict.
• Management by Objectives (MBO): Setting measurable goals.
• Manager/supervisor evaluation: Direct manager assessment.
• Mixed-standard scale method: Comparing performance to different standards.
• Peer evaluation: Feedback from colleagues.
• Performance evaluation: Assessing performance against criteria.
• Performance management: Goal-setting, feedback, and development.
• Self-evaluation: Employees assessing own performance.
• Similar-to-me error: Favoring similar employees.
• Subordinate evaluation: Feedback from direct reports.
• Team evaluation: Assessing team performance.
• Temporal (recency) error: Weighting recent performance heavily.
 Link for Reference
Introduction to Performance Management
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Performance Management System
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Developing an Effective Performance Management System
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The Process Of Performance Appraisal - And the Debate
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What is 360-Degree Feedback?
[Link]
Types of Performance Appraisal Errors
[Link]
 Link for Reference
Methods of Performance Evaluation
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graphic rating scale method of performance appraisal
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Forced Choice Method
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Critical Incidents Method
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What is a Behaviorally Anchored Rating Scale (BARS)?
[Link]
Performance Behavioral Observations Training
[Link]
 Link for Reference
Results-Based Approaches of Performance
[Link]
Management by Objectives Method
[Link]
Balanced Scorecard (With A Step-by-Step Example) | From A Business Professor
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