BDO 329: UNIT 1.3: APPRAISING INTERVIEW

EFFECTIVE PERFORMANCE APPRAISAL SYSTEM

A performance appraisal system is the overarching framework that guides performance management in the organization.

It is a system that is put into place to provide direction and structure to performance management activities and is different from the appraisal process which only focuses on the act of appraising

STEPS FOLLOWED WHEB EFFECTIVE PERFORMANCE APPRAISAL SYSTEM

1. DESIGN INPUT: Steps for involving employees in the PA design or redesign project

2. TRAINING THE APPRAISER: Definition and practical example(Modern approaches, Impression management)

3. FORMAL AND INFORMAL (Definition, practical example, formal or informal)

4. APPRAISAL SYSTEM EVALUATION (Interviews and analyse employee records)

DESIGNING INPUT

Previously, it relied on HR department input, which changed to welcome and embrace employee involvement also HR does not dominate the entire process

C

Step 1:Group formation

Step 2:Objectives and concerns

Step 3:Dimensions of performance

Step 4: Policies and procedures

Step 1:Group formation

A cross-functional team should be assembled, The charge to this team from management should be clear. For instance, what are the required outputs, deadlines and responsibilities, if any, during implementation?

Step 2:Objectives and concerns

Team members should discuss their own goals and the problems they would like the new PA system to overcome. The team should generate a list of desired benefits of PA.

Step 3: Dimensions of performance

  identify the dimensions of performance that need to be evaluated. Dimension of performance must be directly observable, behavioural and job-related. Dimensions that are subjective personality traits, such as 'attitude' or 'personality' , should be eliminated.

Step 4: Policies and procedures

the team should prepare guidelines for implementing the new PA system that support the objectives established in Step 2. The team must decide such issues as how often the forms will be completed , who will receive copies, how formal the process will be and which appeals process will be available

Total quality management or systems approach

·        TQM advocates see PAs as harmful, blaming front-line employees instead of system issues.

·        TQM emphasises that quality is determined by the system, not individual differences.

·        System factors include raw material availability, leadership style, organisational culture, and manufacturing efficiency.

Recommendations for integrating PA with TQM:

o   Train raters in recognising both system and person factors.

o   Collect ratings from multiple perspectives and raters.

o   Use PA interviews to identify barriers to improvement (system/person).

o   Minimise differentiation between employees.

Training appraisers : Modern approaches

o   Information-based: Sessions, workbooks, videos, and discussions.

o   Skill-building: Practice exercises, case studies, and role-playing to provide deeper insight and practical application.

§  Training is essential while topics during training-there is debate about natural ability vs. learned skill, there is broad agreement that training improves rater performance in performance appraisals (PAs).

Training appraisers : Modern approaches (Core knowledge areas for training)

§  The purposes of performance appraisal.

§  Avoiding rating problems (e.g., halo effect, bias, central tendency).

§  Conducting non-discriminatory and ethical appraisals.

§  Conducting effective appraisal interviews.

§  Train them on impression management

Training appraisers : Impression management

impression management:

often disguise shortcomings and dramatise strengths to obtain higher performance appraisal (PA) ratings than their actual performance warrants

  Impression management is a shrewd political tool used to bias performance ratings..

Training appraisers: Impression management

o   Demotion-preventive strategies

§  (aimed at minimising responsibility or avoiding blame):

  Giving accounts or excuses (e.g., illness as a reason for unfinished work).

Apologies.

   Dissociation (distancing oneself from group errors).

o   Promotion-enhancing strategies

§  (aimed at minimising responsibility or avoiding blame):

Giving accounts or excuses (e.g., illness as a reason for unfinished work).

Apologies.

Dissociation (distancing oneself from group errors).

  Formal Methods

o   Conducted annually or bi-annually, often triggered by HR notifications (e.g., employee anniversary date).

o   Structured and standardised: use appraisal forms, ratings, and documentation.

o   Purpose: often linked to administrative decisions (e.g., pay increases, promotions).

o   Drawbacks:

§  Mechanical and rigid.

§  Focuses more on rating than developing employees.

§  Feedback is delayed and not continuous.

Informal methods (continuous methods)

o   Ongoing process: supervisors and employees exchange feedback regularly (e.g., weekly or monthly check-ins).

o   Developmental focus: helps employees understand how they are doing and how to improve.

o   Encourages two-way communication and coaching.

o   Includes frequent recognition of good work, boosting employee motivation.

HOW THESE COMPANIES EMPLOYED INFORMAL METHODS OF APPRAISALS.

ADOBE

DELOITTE

GNERAL ELECTRIC

ACCENTURE

CARGILL

ADOBE-Check-in’s

o   Abandoned annual appraisals in 2012.

o   Introduced “check-ins” aligned with work cycles.

o   Focus on both positive and constructive feedback.

o   Result: increased employee engagement.

DELOITTE-Frequent Check-in’s and coaching and mentoring

o   Discontinued yearly appraisals (360° reviews and cascading objectives).

o   Replaced with frequent employee-initiated check-ins supported by coaching and quarterly reviews.

GENERAL ELECTRIC-frequent feedback systems- app to record progress and facilitates feedback

o   Moved away from annual reviews and forced distribution curves

o   Introduced frequent feedback system supported by an app that tracks progress and facilitates feedback exchange.

o   Still conducts annual conversations, but with a developmental focus.

ACCENTURE-frequent feedback systems

o   Shifted from yearly reviews to frequent feedback systems and conversations.

o   Emphasis on developing performance, not just rating it.

Outcome: Employees focus on growth and actions that improve both individual and organisational performance

CARGILL-everyday performance management

o   Adopted “everyday performance management”.

o   Managers provide frequent, constructive on-the-job feedback.

o   Incorporates rewards, recognition, team accountability, and two-way communication (feedback and coaching).

APPRAISAL SYSTEM EVALUATIONS

INTERVIEWS

ANALYSIS OF EMPLOYEE RECORDS

ANALYSIS OF RELATIONSHIP BETWEEN THE EMPLOYEES AND THEIR RATINGS

ANALYSIS OF PA SYSTEMS IN COMPARABLE SETTINGS

APPRAISAL SYSTEM EVALUATIONS:INTERVIEWS

o   Managers from various departments were interviewed. Discussions focused on the strengths and weaknesses of the present system and on recommendations for improving the system.

APPRAISAL SYSTEM EVALUATIONS: ANALYSIS OF EMPLOYEE’S RECORDS

o   Examine to spot rater errors such as central tendency, leniency and the halo effect

APPRAISAL SYSTEM EVALUATIONS: ANALYSIS OF RELATIONSHIP BETWEEN THE EMPLOYEES AND THEIR RATINGS

o   Employee ratings were correlated with certain personal and work factors (such as age, tenure and race). Employees were asked whether appraisal results were discussed with them.

APPRAISAL SYSTEM EVALUATIONS:ANALYSIS OF PA SYSTEMS IN COMPARABLE SETTINGS

o   compare to the systems used by 39 similar organisations

THE PURPOSE OF CONDUCTING AN APPRAISAL INTERVIEW

Types of information the supervisor rater’s try to relay in PA:

▪  Performance improvement feedback

▪  Corporate goal feedback

▪  Salary/employee advancement information

Situational variables that contribute to supervisors’ failure to rate subordinates:

Have worked only for short period of time for the supervisor?

Subordinate had little job experience

Little trust between the supervisor and subordinate

Little structure from the supervisor

Less confidence in the appraisal system, supervisor was more likely to avoid performing the appraisal

Have worked only for short period of time for the supervisor?

How to address it: Use 360-degree feedback (input from previous supervisors, peers, and team members). Delay formal appraisal until sufficient observation time has passed, but hold an initial goal-setting discussion.

Subordinate had little job experience:

How to address it: Focus on developmental appraisal: set clear training goals, monitor progress, and provide coaching/mentorship instead of strict performance judgments

Little trust between the supervisor and subordinate:

How to address it: Build trust through continuous feedback rather than once-a-year reviews. Encourage transparency and two-way communication in the appraisal meeting.

Little structure from the supervisor

How to address it:  Provide clear performance criteria, KPIs(Key Performance Indicator), and expectations from the start. Train supervisors to use structured appraisal tools and standardized rating systems

Less confidence in the appraisal system, supervisor was more likely to avoid performing the appraisal

How to address it:   Improve system credibility: communicate purpose (development + recognition), ensure fairness and consistency, involve employees in setting goals, and link appraisal results to meaningful outcomes (training, promotions, rewards).

Psychological variables that contribute to supervisors failure to rate subordinates:

Playing god

Inability to give constructive criticism

Personality biases

Inability to give effective feedback

Playing  god

Managers feel conflicted between being a helper (supporting subordinates’ growth) and a judge (evaluating performance).

This dual role creates discomfort and undermines the interview.

Inability  to  give  constructive  criticism

  Many managers struggle to deliver criticism constructively.

  Many employees become defensive (around half do), and most believe they performed better than assessed.

  Criticism often leads to defensiveness and lower performance.

Personality biases

Supervisors sometimes act like “amateur psychologists,” trying to change an employee’s personality rather than focusing on job-related goals.

The main focus should be on performance and achievement of job related expectations

McGregor argues that setting objective, performance-based targets is a healthier approach.

Inability to give effective feedback

Feedback is often vague, subjective, or generic (e.g., “improve communication skills” or “change your attitude”).

  Effective appraisal requires specific, measurable, and clear expectations (e.g., “six unexcused absences in three months—must reduce to one per month”).

STEPS IN THE APPRAISAL INTERVIEW

STEP 1: PREPARE THE INTERVIEW

STEP 2: STATE THE PURPOSE OF THE INTERVIEW

STEP 3: INDICATE SPECIFIC AREAS OF GOOD PERFORMANCE AND AREAS THAT NEED PERFORMANCE IMPROVEMENT

STEP 4: INVITE PARTICIPATION

STEP 5: FOCUS ON DEVELOPMENT

STEPS IN THE APPRAISAL INTERVIEW:STEP 1: PREPARE THE INTERVIEW

Gather and review all relevant performance records (these include all data regarding work output and quality, absenteeism and tardiness etc.)

Support appraisal with facts and make notes of discussion items.

  Set a date in advance to allow the employee to prepare.

STEPS IN THE APPRAISAL INTERVIEW: STEP 2: STATE THE PURPOSE OF THE INTERVIEW

Clarify if it will cover compensation/staffing decisions (pay, promotion, transfer, merit increase ) and/or employee development.

  Avoid mixing pay/promotion discussions with development issues in the same session.

STEPS IN THE APPRAISAL INTERVIEW: STEP 3: INDICATE SPECIFIC AREAS OF GOOD PERFORMANCE AND AREAS THAT NEED PERFORMANCE IMPROVEMENT

Start with good performance (recognition and appreciation).

Then address areas needing improvement (specific, job-related, not personal).

Use HRIS records to assist in accuracy

STEPS IN THE APPRAISAL INTERVIEW: STEP 4: INVITE PARTICIPATION

·        Encourage/Allow the employee to comment, explain problems, and clear misunderstandings.

·        Helps reduce surprises if job goals and standards were communicated well.

STEPS IN THE APPRAISAL INTERVIEW: STEP 5: FOCUS ON DEVELOPMENT

 Set up a development programme linked to job skills and career growth.

Supervisors must ensure employee commitment by showing the connection between development and job success.

INTERVIEWING TECHNIQUES: TELL and SELL, TELL AND LISTEN AND PROBLEM SOLVING

OBJECTIVES

PSYCOLOGICAL ASSUMPTIONS

ROLE OF THE INTERVIEW

ATTITUDE OF THE INTERVIEWER

SKILLS OF INTERVIEWER

REACTION OF EMPLOYEE

EMPLOYEE’S MOTIVATION FOR CHANGE

POSSIBLE GAINS

RISKS OF INTERVIEWER

PROBABLE RESULTS

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING:OBJECTIVES

·        Tell and Sell=communication evaluation, persuade to improve

·        Tell and listen= release defensive feelings

·        Problem solving interview = stimulate growth and development

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING:PSYCOLOGICAL ASSUMPTIONS

·        Tell and Sell=employee wants to correct weakness if known. Superior is qualified to evaluate a subordinate

·        Tell and listen= people will change is defensive feelings are removed

·        Problem solving interview =growth can occur with correcting faults, discussing job related problems leads to improvement

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: ROLE OF THE INTERVIEWER

·        Tell and Sell=judge

·        Tell and listen- judge

·        Problem solving= helper

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: ATTITUDE OF THE INTERVIEWER

·        Tell and Sell= people profit from criticism and appreciate help

·        Tell and listen=one can respect the feelings of others if one understands them

·        Problem-solving=, discussion develops new ideas and mutual interests

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING:SKILLS OF INTERVIEWER

·        Tell and sell=sales ability and patience

·        Tell and listen= listening and reflecting feelings

·        Problem-solving=Listening and reflecting feelings, reflecting ideas, using exploratory questions and summarizing.

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: REACTION OF EMPLOYEE

·        Tell and Sell=suppress defensive behaviour

·        Tell and listen= express defensive behavior and feels accepted,

·        Problem solving interview =problem solving behavior

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: EMPLOYEE’S MOTIVATION FOR CHANGE

·        Tell and Sell=positive or negative incentives or both. Extrinsic motivation

·        Tell and listen= resistance to change is reduced, positive incentives, extrinsic and intrinsic motivation

·        Problem solving interview =increased freedom, responsibility, intrinsic motivation

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: POSSIBLE GAINS

·        Tell and Sell=success is probable when employee respects the interviewer

·        Tell and listen= success when employee develops favorable attitude towards interviewer

·        Problem solving interview=almost certain improvement in some aspects.

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: RISK OF INTERVIEWER

·        Tell and Sell=Loss of loyalty, Loss of independent judgement and Creates face-saving scenes.

·        Tell and listen= need for change may not be developed

·        Problem solving interview=employee may lack ideas. Change may be other than what superior had in mind.

INTERVIEWING TECHNIQUES: TELL, SELL, LISTEN AND PROBLEM SOLVING: PROBALE RESULTS

·        Tell and Sell=perpetuates existing practices and values

·        Tell and listen= permits interviewer to change views in light of employee's responses. Some upward communication.

·        Problem solving interview=both learn because experiences and views are pooled. Change is facilitated.