Performance Management Review & Skills

PERFORMANCE REVIEWS

The process of reviewing performance• Informal reviews are the process by which performance is

managed throughout the year. Performance is reviewed as it occurs by the individual as well as the manager, comparing what happened with what should have happened.

• Whenever appropriate, managers meet individual members of their teams to provide feedback, initiate coaching or other learning activities, and agree on revised goals or any corrective action required.

• The outcome of such meetings may not be formally documented unless action to deal with poor performance through a capability procedure is invoked.

• Formal reviews are meetings in which performance is analyzed more systematically. They include an overview and analysis of performance since the last review, comparing results with agreed expectations and plans.

• Formal reviews are usually documented on paper or recorded on a computer.

• They can provide the basis for decisions on performance pay, promotion, inclusion in talent management development programs, training, performance and development plans, and action to deal with poor performance (although the latter is best carried out at the time rather than waiting for an annual review).

• All this happens on a one-to-one basis – a get-together of the manager and the individual. This should be a conversation involving dialogue and joint analysis of performance.

The performance review process should:• have clear aims and measurable success criteria;• be designed and implemented with appropriate employee

involvement;• have its effective use core to all managers’ performance

goals;• allow employees a clear ‘line of sight’ between their

performance goals and those of the organization; focus on clarity and performance improvement;

• be closely allied to a clear and adequately resourced training and development infrastructure;

• make crystal clear the purpose of any direct link to reward and build in proper equity and transparency standards;

• be regularly and openly reviewed against its success criteria.

The formal performance review meeting• The formal performance review meeting is the means through

which the five primary performance management elements of agreement, measurement, feedback, reinforcement and dialogue can be put to good use.

• Individuals should be encouraged to assess their own performance and become active agents for change in developing that performance. Managers should be encouraged to adopt their proper enabling role: coaching and providing support and guidance.

• There should be no surprises in a formal review if performance issues have been dealt with as they should have been – as they arise during the year.

• This process also helps managers to improve their ability to lead, guide and develop the individuals and teams for whom they are responsible.

• It can be argued that formal reviews are unnecessary and that it is better to conduct informal reviews as part of normal good management practice to be carried out as and when required.

• Such informal reviews are valuable as part of the continuing process of performance management (managing performance throughout the year).

• But annual or half-yearly review sums up the conclusions reached at earlier reviews and provides a firm foundation for a new performance agreement and a framework for reviewing performance informally, whenever appropriate.

Problems with formal performance reviewsIn traditional merit rating or performance appraisal schemes the

annual appraisal meeting was the key event – in fact, in most cases the only event – in the system.

Three main sources of difficulty in conducting performance reviews were identified:

• the quality of the relationship between the manager and the individual – unless there is mutual trust and understanding the perception of both parties may be that the performance review is a daunting experience in which hostility and resistance are likely to emerge;

• the manner and the skill with which the interview is conducted;• the review process itself – its purpose, methodology and

documentation.

Preparing for formal review meetings

• The extent to which detailed preparation is needed will vary according to the type of review. More care would need to be taken for a formal annual review, and the approach suggested below is aimed at such occasions. But the same principles would apply, though less formally, to interim reviews.

Preparation should be concerned with: • the purpose and points to be covered at the meeting;• what evidence on performance the manager should get ready for the meeting;

• what the individual should do in the way of self-assessment.

Self-assessment• Self-assessment is a process in which individuals review their own performance, using a structured approach, as the basis for discussions with their managers in review meetings.

• Self-assessment involves analyzing performance and identifying successes and any problems in achieving goals. Individuals may attribute any problems to lack of skill or experience and should be encouraged to be specific so that a personal development plan can be prepared.

• The structure for self-assessment can be provided by a self-assessment check list that is given to individuals before the review meeting.

Conducting a formal performance review meeting• Be prepared. Managers should prepare by referring to a

list of agreed goals and their notes on performance throughout the year. They should form views about the reasons for success or failure and decide where to give praise, which performance problems should be mentioned and what steps might be undertaken to overcome them. Individuals should also prepare in order to identify achievements and problems.

• Work to a clear structure. The meeting should be planned to cover all the points identified during preparation.

• Create the right atmosphere.• Provide good feedback.

Conducting a formal performance review meeting• Use time productively. Time should be allowed for the

individual to express his or her views fully and to respond to any comments made by the manager.

• Use praise. If possible, managers should begin with praise for some specific achievement, but this should be sincere and deserved.

• Let individuals do most of the talking. Use open-ended questions

• Invite self-assessment• Discuss performance not personality

Conducting a formal performance review meeting• Encourage analysis of performance – Analyze jointly and objectively why things went well or badly and what can be done to maintain a high standard or to avoid problems in the future.

• Don’t deliver unexpected criticisms• Agree measurable objectives and a plan of action – the aim should be to end the review meeting on a positive note.

Giving Feedback•Main purposes:

• Help build confidence• Develop competence• Enhance involvement• Improve future performance

Prentice Hall, Inc. © 2006

Potential costs of failing to provide feedback:• Employees are deprived of chance to improve

their own performance• Chronic poor performance• Employees have inaccurate perceptions of how

their performance is regarded by others


To be effective, feedback should:• Be timely• Be frequent• Be specific• Be verifiable• Be consistent (over time and across employees)• Be given privately• Provide context and consequences• Describe first, evaluate second• Cover the continuum of performance• Identify patterns• Demonstrate confidence in employee• Allow for both advice and idea generation


Guidelines for Giving Praise• Be sincere – only give praise when it is deserved• Give praise about specific behaviors or results• Take your time• Be comfortable with act of praising• Emphasize the positive


Giving Negative FeedbackManagers avoid giving negative feedback due to:• Negative reactions and consequences• Negative experiences in the past• Playing “god”• Need for irrefutable and conclusive evidence


Negative feedback is most useful when it:• Identifies warning signs and performance

problem is still manageable• Clarifies unwanted behaviors and consequences• Focuses on behaviors that can be changed• Comes from a credible source• Is supported by data


Feedback Sessions should always answer:• How is your job going?• What can be done to make it better?

• Job• Product• Services

• How can you better serve your customers?• Internal• External


Performance Review Formal Meetings

Possible types of formal meetings:1. System Inauguration2. Self-Appraisal3. Classical Performance Review4. Merit/Salary Review5. Developmental Plan6. Objective Setting


Steps to take before meeting:• Give at least 2-weeks notice• Give sufficient time• Arrange to meet in a private location without

interruptions


Merged Performance Review MeetingComponents

1. Explanation of meeting purpose2. Employee self-appraisal3. Supervisor & employee share rating and

rationale4. Developmental discussion5. Employee summary6. Rewards discussion7. Follow-up meeting arrangement8. Approval and appeals process discussion9. Final recap

Possible defensive behaviors of employees• Fight response

• Blaming others• Staring at supervisor• Raising voice• Other aggressive responses

• Flight response• Looking/turning away• Speaking softly• Continually changing the subject• Quickly agreeing without basis• Other passive responses

To prevent/reduce defensive behaviors• Establish and maintain rapport• Be empathetic• Observe verbal and nonverbal cues• Minimize threats• Encourage participation


When defensiveness is unavoidable:

Recognize itAllow its expression

If situation becomes intolerableReschedule the meeting for a later time


Performance Management Review & Skills

Presentations & Public Speaking

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