Attention: do not confuse
Reviewing Employee Performance
When monitoring and reporting the employee performance you are comparing
what the individual employee has achieved and
what the individual was supposed to achieve (on the basis of the agreed employee performance objectives.
When monitoring and reporting the project performance you are comparing:
what the
the expected achievement as stated in the project plan document.
.
Definitions:
Performance appraisal refers to the
identification (of the performance areas), measurement and management of employee performance in organizations.
Identification refers to .
Performance measurement means making managerial judgments about how “good” or “bad” a performance has been.
Performance management refers to providing feedback and to coaching employees to higher levels of performance so they achieve their potential.
Through the evaluation of the performance the manager will get the information she needs in order to Ensure that the team has adequate knowledge, Establish a Positive Team Environment and a Healthy Communication Climate, Work Properly and Ensure Accountability (thereby fulfilling the basic requirement for an employee empowering organization).
In a nutshell the employee's performance evaluation serves four key purposes:
improve employee performance,
reward superior performance,
discipline minimal performers,
gain information for future decisions about staffing.
Guideline:
Measures
Employee performance includes the employee’s work results such as
quality or quantity of outputs,
work behavior (such as punctuality)
job-related attributes (such as cooperation and initiative).
Managers should:
provide feedback to employees about how well they have performed on established goals.
provide feedback to employees about areas in which the subordinate is weak or could do better.
take corrective action to address problems with employees performing at or below the minimum expectations.
reward superior performers to encourage their continued excellence.
The most widely used performance review standard is the outcome appraisal where managers are asked to assess the results achieved by the employees. (See other Varieties of performance review standard)
The most
common form of outcome appraisa is
management by objectives, in which
employees and superiors set goals together for the upcoming evaluation period and then
measure the degree to which the employee achieved the goals. This method provides
unambiguous criteria that are not susceptible to biases. However, it also can lead
to a mentality of “results at any cost” or not reflect on-the-job problem
solving.
Immediate-supervisor review is the most common
form of appraisal. Many organizations assume that the immediate supervisor knows the
subordinate’s performance better than anyone else does. However, appraisals by
only the immediate supervisor may have drawbacks: The supervisor may lack interpersonal
communication skills or may intimidate the subordinate because the superior controls
rewards and punishments.
Self-review is a performance appraisal system in
which workers rate themselves. Many organizations that use management-by-objective
measurements have adopted the self-review as a way of having subordinates set goals in
hopes that they become more committed to the goals.
Peer review is a performance appraisal system in
which workers at the same level in the organization rate one another. Peer reviews
are particularly useful when the teamwork is important. They tend to be very
valuable because they often have more opportunities to observe employee performance than
supervisors do and they are perceived by employees as a credible source. However,
validity of peer reviews decreases if employees compete for rewards.
Subordinate review is a performance appraisal
system in which workers review their supervisors. It can be good evaluation
information for managers. Appraisals by subordinates may make supervisors more aware
of how they are perceived or if their instructions are unclear. The validity of
appraisals by subordinates is significantly diminished when they are not anonymous.
Appraisal by beneficiaries is appropriate in certain
contexts such as when beneficiary service is important. Beneficiary feedback
can be
important for learning.
Guideline:
Effective
communication skills for the appraisal interview
A growing trend is for organizations to use 360º feedback, which seeks feedback from all relevant sources such as supervisors, peers, team members, beneficiaries, suppliers and oneself
Two reasons have fueled the popularity of 360º performance appraisals.
First, as organizations have become flatter and have fewer managerial levels, more employees report to one supervisor. Therefore, the supervisor alone may not be able to assess every subordinate’s performance accurately.
Second, more organizations emphasize teamwork. When a organization encourages teamwork and embraces participative management, then it may be more appropriate to adopt 360º performance appraisals.
The shift to 360º feedback includes another benefit. An employee
may ignore feedback from only one person, but s/he cannot as easily discount feedback
from many sources.
Organizations
can save money and reduce the time required to complete a 360º appraisal by using an
online system for administering it. Computerizing the system saves time for
evaluators by making the process easier and quicker to complete. A organization that used a paper-and-pen system
needed three full-time employees for every 1,000 participants. After switching to an
online system, the organization needed only one employee for every 2,000 participants.
Organizations also can establish contracts with outside entities who specialize in
offering online systems for 360º appraisals, saving the time and money of developing a
program internally.
Challenges to
effective performance measurement
A
rater error is an error in performance
appraisals that reflects consistent biases on the part of the evaluator. One of the
most common rater errors is the halo effect,
the tendency to rate similarly across dimensions. When the halo effect occurs,
evaluators allow the rating that they give on one performance dimension to influence the
ratings they give on all other dimensions. Despite its positive-sounding name, the
halo effect can result in one performance dimension either pulling down or raising up the
evaluator’s ratings on other dimensions.
Restriction range of errors occurs when evaluators
restrict all their ratings to a specific portion of the scale. Three restriction
range types of errors exist. The
leniency
error is when the evaluator only uses the high portion of the rating scale. The
central tendency error is when the rater uses only
the middle section. And severity errors
are when the rater uses only the low portion.
A
supervisor’s personal bias also can cause
evaluation errors. An evaluator may systematically rate certain employees lower than
others on the basis of age, gender, race, sexual orientation or other factors.
The
influence of liking an employee can cause
errors in performance appraisals if supervisors allow their like or dislike to affect that
person’s evaluation. Research on the influence of liking continues. Rater
liking and performance ratings are correlated, according to research. However, the
correlation does not necessarily indicate biases. Evaluators may tend to like good
performers and dislike poor performers. Therefore, liking an employee would not have
influenced the objective measurements.
Exploring the cause
of performance problems
When
supervisors detect poor performance, they need to explore the causes of the
problems. Managers
should accurately identify the causes of poor performance because the determination
affects performance evaluations, can be a source of unspoken conflict and determines the
appropriate solution. A supervisor will evaluate an employee differently if the
supervisor realizes that poor performance in a specific instance resulted from the
employee not having the proper resources versus not trying hard enough. Furthermore,
tension can develop when employees and managers have significantly different perceptions
of why goals were not met.
See more in Underperforming Employees: Warning Signs and Management Responses
In
general, organizations signal what activities they want to encourage by rewarding
employees monetarily who demonstrate those activities. Monetary rewards can come in the
form of increased base pay or bonuses. Individual bonuses are similar to merit pay,
but they are a one-time payment that don’t increase an employee’s base pay
permanently. Awards are one-time rewards, but they often are given in the form of a
prize such as a sales representative receiving a vacation to
Organizations
also should recognize that different people value different rewards. Some workers
may prefer non-monetary options.
Paid time off has become especially valuable to
employees whose spouses also work. Married or single, employees can use paid time
off to tend to personal affairs. Time off also allows employees to rejuvenate,
returning to work refreshed and more productive.
Recognition not only acknowledges good
performance, but it also confers status to employees. Some workers prefer the
“social capital” of special attention for their good work more than money.
Recognition programs also tend to be inexpensive for organizations to implement.
Organizations also can reward good performance by investing in employee development. The organizations pay for the employee to develop knowledge and skills that not only help him or her perform the current job but also prepares him or her for future positions. organizations that rely on innovation particularly benefit from using employee development as a reward for good performance.
Reactions to Performance Appraisals
Some
managers and employees are ambivalent about the
performance appraisal interview and avoid providing negative feedback overtly.
Managers uncomfortable with providing criticism sometimes provide it between heavy doses
of positive feedback and make only vague comments. They also may bury in small talk
or humor, communicating negative feedback obliquely. The discomfort felt by the
evaluators manifests itself in avoidance behaviors that obscure the message and merely
skims the surface of performance appraisal.
When
receiving negative feedback, subordinates may become
defensive as they feel their
self-esteem threatened. They may try blaming their deficient performance
on others or on external factors. They may minimize the importance of the
appraisal, question the validity of the evaluation or may too readily agree to
the feedback while internally denying its accuracy.
The solution to managing reactions is to train managers how to conduct constructive feedback sessions. In an effective interview, the employee perceives the appraisal as fair, the manager as sincere and the climate as constructive. Therefore, the employee is more likely to leave the interview informed about his or her performance and how to improve and determined to correct deficiencies. When providing feedback, managers should focus on the employee’s behaviors, not personality. Summarizing an employee’s performance by labeling him or her as “lazy,” for example, is not helpful and will lead to defensiveness. It is more beneficial to focus on what a person does rather than what that person seems to be.
See also
Other resources:
Templates:
Other resources:
Oxfam: Performance Management; competency model;
Europe Aid: Institutional Assessment and Capacity Development
__________
Oxfam:
Oxfam’s principles for Performance Management are:
1. Every Oxfam employee has the right to have their performance managed as well as a responsibility for ensuring it is managed
2. Every manager has the right to manage his/ her employees’ performance as well as accountability for ensuring it is managed
3. Performance Management should always support Oxfam’s ways of working.
On going very managerial interaction involves a certain degree of performance evaluation. When the outcome of a normal interaction has a partticular relevance you can fill up the one-to-one meeting template form.
Besides these, there are formal steps to be taken regularly.
Interviews with the employee in a one-to-one meeting to discuss the ‘3 P’s’– progress, priorities and problems, on the basis of the monthly report (ca. 1 per month), i.e. issues communciated in the monthly report form that inlcude:
discussing the way you get your job done and whether it is meeting the standard agreed beforehand
reviewing your priorities
identifying problems and more effective ways of working
giving and receiving feedback
identifying poor performance and overcoming any obstacles hindering progress
Objective setting. Everyone employed by Oxfam sets and agrees to Agreed Objectives, along with your manager; i.e. key things you must accomplish in your role. They are related to your job description, which must be linked in with your team or department’s annual plan, which in turn will be part of Oxfam’s Strategic Plan. Responsibility for setting and agreeing objectives is . It includes:
Setting clear objectives with your manager so that you know what you’re expected to achieve, and where the focus of your activities should be (what is it that Oxfam employs me to do? or ‘what are my key responsibilities?)
Deliverables you expect to produce in order to achieve the agreed performance objectives
Plans on how to develop your existing skills, knowledge, or ways of working so that can help you achieve your performance objectives
Performance Review. Your Performance Review is the formal process by which you and your manager will look back at your progress through your previous year at Oxfam. It should comprise of both an interim and annual meeting. During the annual meeting you and your manager should discuss your final performance rating for the year. The annual Performance Review of every Oxfam employee takes place in May/June. Your performance against your objectives over the previous 12 months will be reviewed and you will be given an overall performance rating. There must be at least one interim performance review, preferably around the six-month mark (November for most). Several people can be involved in your annual review. Usually it will be yourself, your manager, and an overview manager (usually your manager’s manager). Each one has a different role to play before, during, and after your review:
the jobholder
Prepare for the review by looking back at and assessing the work you’ve accomplished during the year
Consider how you would rate your performance
Think about the progress made against personal development objectives
Share your views and evidence during the review conversation Ask for feedback and provide upwards feedback on your manager’s performance
Your manager will give you a performance rating, you can agree, or disagree with this decision.
The manager
Set a date, time, and venue for the review
Prepare for the review by looking back at, and objectively assessing the jobholder’s work over the year
Take into account any relevant factors and ensure any decisions are free from bias
Think about the progress made against personal development objectives
Consider a performance rating and discuss it with the overview manager prior to the review meeting
Facilitate the review meeting, encouraging the jobholder to share their views first and fully
Discuss the proposed rating with the jobholder and recommend a final rating
If the jobholder disagrees with their performance rating take advice from overview manager and HR.
Overview manager
Review the jobholder’s performance rating alongside others in her/ his area, checking for consistency and fairness
Override the manager’s decision where performance ratings have, in their opinion, been incorrectly recommended
Comment on and sign off the review once it has been agreed by all parties.
Other relevant managers If the jobholder has been involved in a specific project, is ‘matrix-managed’, or has spent part of the year on secondment to a different team, the relevant manager may be asked to give their assessment of the jobholder’s contribution and behaviour/style of working. The role HR department is:
overseeing the review process across the whole of Oxfam and plays a number of important roles:
Checking performance ratings across the organisation for consistency
Taking into account any relevant factors to ensure any decisions are free from bias
Analysing ratings by division, job, level, and diversity factors.
Getting the paperwork right by using the official form. Your manager will then complete the final version and you will both sign the form to formally agree the content that includes:
All your objectives
Your assessment of your performance to date
Your manager’s assessment including, if helpful, an interim performance rating
Progress against personal development objectives
A discussion about the work coming up in the next six months
Any help needed between now and the end of the review period.
The Performance Review ratings
What next?
You will be shown a copy of your final Performance Review form. You, your manager, and the overview manager will sign it. If you don’t think the copy fairly summarises the review meeting, youmay propose changes. If your manager disagrees with your comments, you can still register your concerns by inserting an appropriate comment in the box on the last page of the form – likewise if you disagree with your performance rating. You must still sign the form to indicate that you have seen and read it. You will be given a copy for your own records and a copy will be filed with your local HR team.
A summary of the performance ratings from across the whole organisation will be collected by HR and checked for consistency and fairness. If, for example, one division or team has an abnormally high (or low) number of ‘outstanding’ or ‘not fully proficient’ ratings, HR will follow it up with the managers concerned.
HR will also analyse the ratings by various factors, such as gender, and consider whether the distribution indicates any bias towards or against a particular group of people. This will help us to assess whether managers are taking into account Oxfam’s policies on diversity and equality of opportunity.
Dealing with disagreements
If, for whatever reason, you disagree with the rating or with specific comments your manager makes on your Performance Review form, there are a number of steps you can take.
Firstly, try to resolve the disagreement. Listen carefully and objectively to your manager’s point of view and make sure you understand how they have reached their conclusion.
Secondly, if you still disagree, explain clearly how you see the situation and try to identify where the difference of opinion lies. Does it involve a specific objective or competency? Is the issue more general than that? If it involves a competency, it might be useful to talk to key people who you’ve worked with. How would they have interpreted your behaviour? What’s your evidence?
If both parties follow this approach, an understanding and resolution should be reached. If you are still not satisfied with your manager’s response, you should talk to your overview manager. You may find that talking to him/ her gives you a wider perspective on the subject.
If, at the end of this process, you still don’t agree with your rating then you should speak to your HR department for advice and assistance. See Oxfam’s ‘Dealing With Problems At Work’.
Upward feedback and your manager’s Performance Review
As part of their own Performance Review, your manager should have at least one objective related to their management of their staff. So upwards feedback from you is important. Make sure you read ‘Giving and receiving feedback’
360° feedback is a tool that helps you become more effective by understanding how others see you, your performance, your behaviour and your attitude. It can be used to input into your performance review or to inform your performance development planning for the year ahead.
This is another way of establishing where your strengths lie, and which areas need to be developed further.
Below are answers to some frequently asked questions that arise around this area. For additional advice and guidance your HR Adviser will be able to help.
How does it work?
You and your manager will work together to identify people who you feel have been your main stakeholders (see below for examples of Stakeholders) over the performance year. You will be asking for feedback from them to help you and your manager gain a more complete picture of what you have been doing well and what you could do differently in the future.
What is a Stakeholder?
Stakeholders are the people who have an interest / involvement in your work.
Examples of your stakeholders are:
Your manager
Staff you manage
Colleagues that work with you on a regular basis
Partners you work with regularly
Members of the community that you have been working with
Suppliers that you work with
Is 360° feedback now an essential part of Oxfam’s Performance Management process?
360° feedback is not essential in all divisions but is increasingly being used on the request of both staff and managers because of the advantages it offers.
3600 feedback will become more widely used over the next couple of years within the international division and senior managers are being asked to model openness to receiving such feedback in the 07/08 performance process.
What are the benefits?
360° feedback is seen by many as a way of providing greater insight into the feedback element of Performance Management.
There can be a number of benefits to getting feedback from people other than your line manager. Here are just a few:
It can help to increase self-awareness (helping you become more familiar with how you and your work is perceived)
It can help identify development priorities
It increases communication between you and the people that you work with
It enables us to get feedback on the areas we want to hear more about
It increases understanding of both the skills and behaviours required to improve and progress.
It promotes an open and honest culture.
What happens if either my manager or me do not want to do it?
360° feedback can be carried out in a variety of ways, and where there are questions or concerns, discussing the approach that is planned together can often resolve these issues.
The final decision about whether or not the 360° feedback approach should be used will ultimately lie with the manager.
How do we decide who my stakeholders are?
Before starting the process of asking for feedback, you should agree with your manager which of your stakeholders you intend to ask.
You should keep in mind that this can be a time consuming process for those being asked to provide feedback so the recommendation is to ask between 3 – 5 people.
Your manager has the final decision on who should be approached.
How do we go about seeking the feedback?
There are a number of approaches you could choose to use. Whichever you choose, it should be agreed with you and your manager so that you are both clear and comfortable with the choice.
The key is to keep it simple:
Save any feedback you are sent in email or by letter, or note down and share any verbal feedback you receive throughout the year. You can share this with your manager in 1:1’s and revisit it at the Performance Review.
You / your manager could approach the identified stakeholders to get verbal feedback on your performance. Notes should be taken of these conversations so that they can be shared between you both and reflected on.
Feedback can be asked for in writing (via email). This is the most popular approach allowing your stakeholders to consider the points they want to make and put them in writing.
For more advice on different approaches, see the ‘Tools for 360° feedback’
Who sees the feedback written about me?
It is important to be clear with the person being asked to give feedback who they should send it to and who it will be shared with.
Ideally, feedback should be shared with both you and your manager. This is the most honest and transparent way to provide feedback.
Remember this may be difficult for the person providing the feedback and so they should be given very clear guidance as to the particular areas of performance you are looking for feedback on.
For feedback to be open and effective people should be encouraged to give as balanced a response as possible.
Please see the ‘Tools for 360° feedback’ for advice and suggestions on how to achieve this.
How much time does this take?
The thought and consideration that giving open and effective feedback takes can mean that it can be very time consuming.
So it is helpful to be clear about a number of aspects:
What particular areas of your performance would you and your manager like feedback on?
When would you like it returned to you by?
Who will see the feedback?
How will it be used?
Keep it simple. It is important to get to the core of the issues, but should not require a great amount of written work. The tools to support 360° feedback (link) provide simple, brief suggestions.
In order to make the process manageable, you should aim to ask 3 – 5 people to provide feedback to you.
What should I consider if I am asked to provide feedback on a colleague’s performance?
It is your responsibility to be open and honest. Oxfam aims to encourage a culture that allows you to do this, but if you have concerns or need advice, you should speak to your manager or HR Adviser.
Your colleague has asked you for feedback because they want to learn more about the quality of their work and how they are perceived as a work colleague. Although this can be difficult, it is important that we do this well in order for us as individuals and Oxfam to continue to develop.
Ensure that the feedback is ‘developmental’ and clearly explains the reasons why you would like the person to do something differently in the future and the impact that this will have.
Give examples to demonstrate the areas of behaviour / work that you are referring to so that their manager and the individual concerned are clear about the situations you are referring to.
This link will take you tips to consider when giving feedback.
If you have additional questions, please speak to your manager, HR Adviser or email the Learning and Development Team at learn@oxfam.org.uk
Guidelines of setting performace objectives
Make SMART Objectives. be Specific (clear about the outcome to be achieved and your contribution to it); Measurable (Know the criteria on which you’ll judge whether you’ve achieved your objectives); Achievable (Make sure you have the resources, skills, knowledge, and available time); Relevant (Your objectives must relate to your job and your division’s plan); Time-related (Set realistic dates to deliver your objectives)
Objetcives are set for 12 months but need to go through an interim review after 6 months
When you set objectives, consider other viewpoints and different perspectives to your own. Be prepared to have your assumptions challenged. For example, if an employee suggests an objective that you initially think is unrealistic, ask yourself ‘why?’ If your reasoning is sound, express your doubts. For more information, see Oxfam’s Diversity Strategy and Oxfam’s Equal Opportunities Policy
Understand your competencies, i.e. the knowledge, skills, and behaviours you need in to do our jobs. If objectives are ‘what’ we do – what we must achieve in order to do our jobs effectively – then competencies are ‘how’ we do it. Oxfam’s competencies are designed to encourage an open dialogue about how we work. See Oxfam's competency model as well as the ‘Competency Behaviours and Indicators’
Performance development
It’s that part of performance management which can give you new skills, improve old ones, or even open up new career prospects for you in the future. It does all this while pushing Oxfam forward in the fight against poverty. Performance development can help you to:
Be more effective in specific aspects of your job
Achieve better results on time, more frequently, and in the best way possible
Develop future career opportunities.
Performance enhancing stuff
Learning isn’t confined to training courses and other formal environments. Often on-the-job training that’s linked in with your current work can be the best way to learn.
In addition, it might be that one of these other ways of learning is more suited to you: coaching; mentoring; shadowing others; workshops; reading; visits; job swaps.
Details on all these approaches can be found on Learning through Experience
Talk about it…
Start by talking to your manager. They will need to agree that your ideas match your objectives – as well as those of Oxfam – and that the options identified are appropriate. You will need to record these under ‘Performance Development Needs’ on your objectives form. In agreeing these your manager is committing to provide any necessary resources. And remember, if your manager suggests an area for development that you had not thought about before, it’s not an accusation or a failure on your part – it’s about helping you learn. Performance development is for everyone.
Competency Scorecard
Achieving Results: Organisation to work effectively
Score how you are currently working
Example email for feedback
Input to <Insert name>’s Performance Review & Development
You have been requested by <insert name> to provide some feedback based on your experiences of working together over the past year.
The intention is that this feedback will help and support <insert name> in their ongoing performance and development, so please be as open, honest and constructive as possible.
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Five things that they do well?
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Five things that they should improve upon?
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Is there anything else that they could stop, start or continue doing to improve their performance?
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Stop |
Start |
Continue |
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Feedback provided by:
Date:
________________________________________________________________________
Please now rate their performance against each of the following headings.
Tick the relevant box against each of the behaviours listed...
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Lots |
Some |
Rarely |
Never |
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Example: Communication (how readily do they inform you about what is going on?) |
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<Insert relevant competencies/descriptors for which you would like to receive feedback> |
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<Insert relevant competencies/descriptors for which you would like to receive feedback> |
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<Insert relevant competencies/descriptors for which you would like to receive feedback> |
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See also
Guidelines:
See also Reporting project performance
Templates: