{"id":804,"date":"2019-08-13T21:44:25","date_gmt":"2019-08-13T21:44:25","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=804"},"modified":"2024-04-25T01:35:06","modified_gmt":"2024-04-25T01:35:06","slug":"steps-in-the-appraisal-process","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/steps-in-the-appraisal-process\/","title":{"raw":"Steps in the Appraisal Process","rendered":"Steps in the Appraisal Process"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the steps in the appraisal process<\/li>\r\n<\/ul>\r\n<\/div>\r\nThe appraisal process consists of six steps (see Figure 1). We'll dive into each step below.\r\n\r\n[caption id=\"attachment_1876\" align=\"aligncenter\" width=\"350\"]<img class=\"wp-image-1876\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23212914\/AppraisalProcess-495x1024.png\" alt=\"Step 1. \u0014Establish performance standards; Step 2. Communicate performance standards; Step 3. Measure performance; Step 4. Compare performance to standards; Step 5. Discuss the appraisal with the employee; Step 6. Implement personnel action.\" width=\"350\" height=\"724\" \/> Figure 1. Steps in the Appraisal Process[\/caption]\r\n<h2>Step 1: Establish performance standards<\/h2>\r\nPerformance standards are set to ensure achievement of departmental goals and objectives and the organization\u2019s overall strategy and objectives. Standards are based on the position, rather than an individual. In order to be clearly understood and perceived as objective, standards should adhere to the same rules that apply to goal-setting; that is, they should be \u201cSMART:\u201d specific, measurable, achievable, relevant and timebound.\r\n\r\nIndiana University\u2019s Human Resource department explains that \u201cwhile a list of major job duties tells the employee what is to be done, performance standards provide the employee with specific performance expectations for each major duty.\u201d[footnote]\"<a href=\"http:\/\/hr.iu.edu\/training\/performance_management\/define.htm\" target=\"_blank\" rel=\"noopener\">Define Performance Standards for Each Duty<\/a>.\" Indiana University Human Resources. Accessed August 15, 2019.[\/footnote] Performance standards include both observable behaviors\u2014the how\u2014and the expected results that comprise satisfactory job performance.\r\n<h2>Step 2: Communicate performance standards<\/h2>\r\nIn order to be effective, performance standards must be clearly communicated and understood to be expectations. Performance standards assume that an individual is competent, so initial and corrective training should be factored into the performance management process. If there is a specific training period after which an employee is assumed to be competent and performing to standards, that should be communicated as well.\r\n<h2>Step 3: Measure performance<\/h2>\r\nPerformance that is expressed in numeric terms\u2014for example, cost, quantity, quality, timeliness\u2014is relatively easy to measure. Performance in the area of soft skills\u2014for example, communication, customer service and leadership\u2014is more difficult to evaluate. DeCenzo, Robbins and Verhulst recommend using a variety of sources of information including personal observation, oral reports and written reports. They note, however, that what is measured is probably more critical than how an aspect is measured.[footnote]DeCenzo, David A., Stephen P. Robbins, and Susan L Verhulst. 2016. <em>Fundamentals of Human Resource Management.<\/em> New York, NY: John Wiley &amp; Sons.[\/footnote] The focus should be on measuring what matters rather than measuring what\u2019s easy to measure.\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Key Takeaways<\/h3>\r\nFocus measurement\u2014and, thus, employee effort\u2014on activities that make a significant contribution to organizational goals and objectives.\r\n\r\n<\/div>\r\n<h2>Step 4: Compare actual performance to performance standards<\/h2>\r\nIn this step of the appraisal process, actual performance is compared to the performance standards. Documentation should highlight actions and results. For example, \u201cAmir left confidential documents on the printer even after he had been warned to maintain control of confidential information.\u201d Or \u201cAmir\u2019s process improvement recommendations saved the department $3,500.\u201d\r\n\r\nIndiana University\u2019s Human Resource department identifies the following characteristics of effective documentation:[footnote]\"<a href=\"http:\/\/hr.iu.edu\/training\/performance_management\/document.htm\" target=\"_blank\" rel=\"noopener\">Document Job Performance.<\/a>\" Indiana University Human Resources. Accessed August 15, 2019.[\/footnote]\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Accurate<\/li>\r\n \t<li style=\"font-weight: 400;\">Specific<\/li>\r\n \t<li style=\"font-weight: 400;\">Consistent (covering the entire review period)<\/li>\r\n \t<li style=\"font-weight: 400;\">Factual (not based on conjecture)<\/li>\r\n \t<li style=\"font-weight: 400;\">Balanced, including instances of both positive and unsatisfactory performance<\/li>\r\n \t<li style=\"font-weight: 400;\">In writing<\/li>\r\n<\/ul>\r\n<h2>Step 5: Discuss the appraisal with the employee<\/h2>\r\nThis is generally the step in the process that is the most difficult for managers and employees alike and it can be a challenge to manage emotions and expectations. Even when performance is strong, there can be differences of opinion on the next action. A significant difference of opinion regarding performance can create an emotionally-charged situation. If the manager is providing feedback and coaching on a regular basis, this shouldn\u2019t be the case. Related point: If an employee has consistently poor performance, the issue should be addressed\u2014corrective action taken\u2014in a timely manner and not deferred to an annual review. To identify and prepare for differences of opinion, management can ask employees to complete and submit a self-evaluation prior to the appraisal meeting. A key point to keep in mind is that the manager\u2019s ability to remain calm and civil will have a significant impact on the employee\u2019s confidence, motivation and future performance.\r\n<h2>Step 6: Implement personnel action<\/h2>\r\nThe final step in the appraisal process is the discussion and\/or implementation of any next steps: a reward of some sort\u2014a raise, promotion or coveted development opportunity\u2014or corrective action\u2014a performance plan or termination. Note, however, that corrective action that might help an employee achieve expectations shouldn\u2019t be tabled until the next formal appraisal. As performance gaps are identified, supervisors and managers should take the time to identify why performance is not meeting expectations and determine whether the employee can meet expectations with additional training and\/or coaching. As mentioned above, if performance is such that termination is warranted, that action should be taken in a timely manner as well.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/fcfbdeaa-9c33-4c3c-8b58-706360310b55\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the steps in the appraisal process<\/li>\n<\/ul>\n<\/div>\n<p>The appraisal process consists of six steps (see Figure 1). We&#8217;ll dive into each step below.<\/p>\n<div id=\"attachment_1876\" style=\"width: 360px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1876\" class=\"wp-image-1876\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23212914\/AppraisalProcess-495x1024.png\" alt=\"Step 1. Establish performance standards; Step 2. Communicate performance standards; Step 3. Measure performance; Step 4. Compare performance to standards; Step 5. Discuss the appraisal with the employee; Step 6. Implement personnel action.\" width=\"350\" height=\"724\" \/><\/p>\n<p id=\"caption-attachment-1876\" class=\"wp-caption-text\">Figure 1. Steps in the Appraisal Process<\/p>\n<\/div>\n<h2>Step 1: Establish performance standards<\/h2>\n<p>Performance standards are set to ensure achievement of departmental goals and objectives and the organization\u2019s overall strategy and objectives. Standards are based on the position, rather than an individual. In order to be clearly understood and perceived as objective, standards should adhere to the same rules that apply to goal-setting; that is, they should be \u201cSMART:\u201d specific, measurable, achievable, relevant and timebound.<\/p>\n<p>Indiana University\u2019s Human Resource department explains that \u201cwhile a list of major job duties tells the employee what is to be done, performance standards provide the employee with specific performance expectations for each major duty.\u201d<a class=\"footnote\" title=\"&quot;Define Performance Standards for Each Duty.&quot; Indiana University Human Resources. Accessed August 15, 2019.\" id=\"return-footnote-804-1\" href=\"#footnote-804-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a> Performance standards include both observable behaviors\u2014the how\u2014and the expected results that comprise satisfactory job performance.<\/p>\n<h2>Step 2: Communicate performance standards<\/h2>\n<p>In order to be effective, performance standards must be clearly communicated and understood to be expectations. Performance standards assume that an individual is competent, so initial and corrective training should be factored into the performance management process. If there is a specific training period after which an employee is assumed to be competent and performing to standards, that should be communicated as well.<\/p>\n<h2>Step 3: Measure performance<\/h2>\n<p>Performance that is expressed in numeric terms\u2014for example, cost, quantity, quality, timeliness\u2014is relatively easy to measure. Performance in the area of soft skills\u2014for example, communication, customer service and leadership\u2014is more difficult to evaluate. DeCenzo, Robbins and Verhulst recommend using a variety of sources of information including personal observation, oral reports and written reports. They note, however, that what is measured is probably more critical than how an aspect is measured.<a class=\"footnote\" title=\"DeCenzo, David A., Stephen P. Robbins, and Susan L Verhulst. 2016. Fundamentals of Human Resource Management. New York, NY: John Wiley &amp; Sons.\" id=\"return-footnote-804-2\" href=\"#footnote-804-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> The focus should be on measuring what matters rather than measuring what\u2019s easy to measure.<\/p>\n<div class=\"textbox key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<p>Focus measurement\u2014and, thus, employee effort\u2014on activities that make a significant contribution to organizational goals and objectives.<\/p>\n<\/div>\n<h2>Step 4: Compare actual performance to performance standards<\/h2>\n<p>In this step of the appraisal process, actual performance is compared to the performance standards. Documentation should highlight actions and results. For example, \u201cAmir left confidential documents on the printer even after he had been warned to maintain control of confidential information.\u201d Or \u201cAmir\u2019s process improvement recommendations saved the department $3,500.\u201d<\/p>\n<p>Indiana University\u2019s Human Resource department identifies the following characteristics of effective documentation:<a class=\"footnote\" title=\"&quot;Document Job Performance.&quot; Indiana University Human Resources. Accessed August 15, 2019.\" id=\"return-footnote-804-3\" href=\"#footnote-804-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400;\">Accurate<\/li>\n<li style=\"font-weight: 400;\">Specific<\/li>\n<li style=\"font-weight: 400;\">Consistent (covering the entire review period)<\/li>\n<li style=\"font-weight: 400;\">Factual (not based on conjecture)<\/li>\n<li style=\"font-weight: 400;\">Balanced, including instances of both positive and unsatisfactory performance<\/li>\n<li style=\"font-weight: 400;\">In writing<\/li>\n<\/ul>\n<h2>Step 5: Discuss the appraisal with the employee<\/h2>\n<p>This is generally the step in the process that is the most difficult for managers and employees alike and it can be a challenge to manage emotions and expectations. Even when performance is strong, there can be differences of opinion on the next action. A significant difference of opinion regarding performance can create an emotionally-charged situation. If the manager is providing feedback and coaching on a regular basis, this shouldn\u2019t be the case. Related point: If an employee has consistently poor performance, the issue should be addressed\u2014corrective action taken\u2014in a timely manner and not deferred to an annual review. To identify and prepare for differences of opinion, management can ask employees to complete and submit a self-evaluation prior to the appraisal meeting. A key point to keep in mind is that the manager\u2019s ability to remain calm and civil will have a significant impact on the employee\u2019s confidence, motivation and future performance.<\/p>\n<h2>Step 6: Implement personnel action<\/h2>\n<p>The final step in the appraisal process is the discussion and\/or implementation of any next steps: a reward of some sort\u2014a raise, promotion or coveted development opportunity\u2014or corrective action\u2014a performance plan or termination. Note, however, that corrective action that might help an employee achieve expectations shouldn\u2019t be tabled until the next formal appraisal. As performance gaps are identified, supervisors and managers should take the time to identify why performance is not meeting expectations and determine whether the employee can meet expectations with additional training and\/or coaching. As mentioned above, if performance is such that termination is warranted, that action should be taken in a timely manner as well.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_fcfbdeaa-9c33-4c3c-8b58-706360310b55\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/fcfbdeaa-9c33-4c3c-8b58-706360310b55?iframe_resize_id=assessment_practice_id_fcfbdeaa-9c33-4c3c-8b58-706360310b55\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-804\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Steps in the Appraisal Process. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Image: Steps in the Appraisal Process. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-804-1\">\"<a href=\"http:\/\/hr.iu.edu\/training\/performance_management\/define.htm\" target=\"_blank\" rel=\"noopener\">Define Performance Standards for Each Duty<\/a>.\" Indiana University Human Resources. Accessed August 15, 2019. <a href=\"#return-footnote-804-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-804-2\">DeCenzo, David A., Stephen P. Robbins, and Susan L Verhulst. 2016. <em>Fundamentals of Human Resource Management.<\/em> New York, NY: John Wiley &amp; Sons. <a href=\"#return-footnote-804-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-804-3\">\"<a href=\"http:\/\/hr.iu.edu\/training\/performance_management\/document.htm\" target=\"_blank\" rel=\"noopener\">Document Job Performance.<\/a>\" Indiana University Human Resources. Accessed August 15, 2019. <a href=\"#return-footnote-804-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Steps in the Appraisal Process\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Image: Steps in the Appraisal Process\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"4068786d-3ed5-4f3b-b408-f56177898786, 4e3fa346-818f-4230-ba4f-39901560f96a","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-804","chapter","type-chapter","status-publish","hentry"],"part":798,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":12,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/804\/revisions"}],"predecessor-version":[{"id":3374,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/804\/revisions\/3374"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/798"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/804\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=804"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=804"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=804"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}