Human Resource Management 2

Performance Management and

Appraisal interviewing

Nick Kinnie

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 Objectives
To recall why performance management is
important in theory and practice
To understand the purpose and nature of the
appraisal interview in the performance
management process
To examine the different approaches and styles
of appraisal interviews
To give an opportunity to gain experience in the
practical aspects of appraisal interviewing

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Performance Management and
Appraisal interviewing
Introduction recall the uses, objectives and
problems of Performance Management
Performance appraisal - what is appraised?
Appraisal interviewing - styles, structure and
skills
Interviewing practice - some guidelines
Summing up

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 Introduction
Performance Management
has a critical role to play in organisational
performance
is widespread (found in nine out of ten firms)
is vital to all employees
is increasingly carried out by line managers
is one of the most difficult tasks managers have to
carry out

(Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)

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 What do we mean by
performance management?
the policies, procedures and practices that focus on employee
performance as a means of fulfilling organisational goals and
objectives

(Lowry (2002) in Marchington and Wilkinson (2005: 187-8))

establishing a framework in which performance by individuals can

be directed, monitored, evaluated and rewarded, and whereby
the links in the cycle can be audited

(Mabey and Salaman (1995) in Torrington et al (2005: 261))

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 Performance Management:
why is it used?
Key role in linking the goals of the organisation
to the individual (vertical integration)
Gives a synergy with other HR practices eg
reward systems (horizontal integration)
Seeking to improve performance at an
organisational and individual level
Ritualistic aspects

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How does a performance management
system look?
Organisational
objectives
Departmental/team
objectives
Individual
competencies
Setting of
performance standards

Monitoring and Assessment

Career
Development Reward
planning
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 Objectives of Performance
Management Systems
Set objectives and review performance
against objectives/standards
Personal development: identify training
and development needs and potential
Linking team and organisational
objectives

Source: Performance Management Survey Report September 2005 CIPD 8

 Performance Management:
some problems
Conflicting purposes: judge/coach dilemma

Role of the appraiser: competence, motivation and values

Role of the appraisee: promotion and development

Appraiser/appraisee relationship: quality is key

Validity of the criteria: are they related to the job?

What is the quality of the data collected?

Impact of performance appraisal on performance

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 Conflicting aims
Organization Individual
Seeking the Seeking valid
development of performance
individuals through feedback for
coaching development

Seeking information
on which to base
reward and promotion Seeking rewards
decisions and promotion

= conflict

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 Performance Appraisal: What is
appraised?
Non-criteria or evidence based personal
evaluation

Rating traits personal characteristics

Objectives performance compared with

targets

Competencies/behaviours displayed and

desired
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 Types of interaction
Enquiry Exposition

Selection Presentation
Attitude survey Lecture
Health screening Briefing
Joint problem solving Conflict resolution

Appraisal Negotiation
Counselling Arbitration
Discipline 12
Torrington et al (2005: 71)
 Performance Appraisal:
interviewing styles
Tell and sell: appraiser acts as a judge tells
the appraisee the result and how to improve

Tell and listen: communicates outcomes and

listens to reactions

Problem solving: appraisee encouraged to

discuss problem areas and consider solutions
(Maier, N. (1976) The Appraisal interview the three basic approaches)

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 Performance Appraisal:
interview structure
Preparation
Both parties need to prepare
Appraiser: What style to adopt? gather the evidence
from all parties
Appraisee: self assessment
Structure
Purpose and rapport agree purpose and structure
Factual review of the known facts

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Appraisee views comments on the last time period
(gone well/what could be improved/likes and
dislikes)

Appraiser views - asks questions, offers views and

comments

Problem solving how can any differences be

resolved?

Objective setting what actions should be taken, by

whom and on what time scale

(Torrington et al, 2005: 343)

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 Performance appraisal:
interviewing skills
Ask the right questions: open, probing, follow up
and reflective
Engage in active, careful listening to all forms of
communication
Provide feedback based on evidence and
examples
Avoid: a focus on failure, control by the
appraiser, ends with disagreement
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)

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 Ideally an appraisal meeting is
where
Appraisees do most of the talking
Appraisers listen actively and provide feedback
Scope for reflection and analysis an exchange of
views
Performance is analysed not personalities
Whole period is reviewed not just isolated incidents
evidence based
Achievement is recognised and reinforced
Identify areas for improvement set agree objectives
Ends positively with agreed action plans to improve
performance
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)

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 Summing up
Key strategic and individual role of performance
management new developments

Key task for line managers but difficult to carry out

successfully

Powerful influence on behaviour both positive and

negative

Requires careful support and implementation by line

managers

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 Features of Performance
Management Systems
% use % effective

Individual annual appraisal 65 83

Objective setting and review 62 82
Personal development plans 62 81
Career management 37 47
Coaching 36 46
Performance related pay 31 39
Competence assessment 31 39
Self appraisal 30 53
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 % use % effective

Twice yearly 27 38
360 degree 14 20
Continuous 14 20
Subordinate 11 17
Rolling 10 21
Peer 8 12
Competence related 7 11
Team 6 10
Contribution 4 6
Team pay 3 5

Source: Performance Management Survey Report September 2005 CIPD

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