IMPLEMENTING A

PERFORMANCE
MANAGEMENT SYSTEM

MADE BY:
PRACHI JAIN
HARSHITA MEHTA

OVERVIEW

Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation

PREPARATION

Need to gain system buy-in through:

Communication plan regarding Performance
Management system
Including appeals process
Training programs for raters
Pilot testing system
Ongoing monitoring and evaluation

COMMUNICATION PLAN
A good communication plan answers the following
questions:
What is Performance Management (PM)?
How does PM fit in our strategy?
Whats in it for me?
How does it work?
What are our roles and responsibilities?
How does PM relate to other initiatives?

Even if a communication plan answers all or most of the

important questions,the fact that the information has been
made available does not necessarily mean the
communication plan will be successful in gaining
acceptance.
This is because people have cognitive biases that affect
what information is taken and how it is processed.
Specifically, there are 3 types of biases that affect the
effectiveness of a communication plan:
Selective exposure
Selective perception
Selective retention

Selective exposure - a tendency to expose our minds

only to ideas with which we already agree.
Selective perception - a tendency to perceive a piece
of information as meaning what we would like it to
mean even though the information, as intended by
the communicator, may mean the exact opposite.
Selective retention - a tendency to remember only
those pieces of information with which we already
agree.

Considerations to minimise the effects of communication

barriers
Involve employees
Understand employee needs
Strike first
Provide facts and consequences
Put in writing
Use multiple channels of communication
Use credible communicators
Say it, and then say it again

APPEALS PROCESS

The establishment of an appeal process helps in gaining

employee acceptance.
It allows employees to understand that, if there is a
disagreement regarding performance ratings or any
resulting decisions, such disagreements can be resolved
in an amicable and non-retaliatory way.
Employees can question 2 types of issues:
Judgemental issues (validity of evaluation)
Administrative issues (whether policies and
procedures were followed)

The appeals process begins with an employee filing

an appeal with the HR department,which serves as a
mediator between the employee and supervisor.This
is a Level 1 appeal.
If the appeal is not resolved, then an outside and
unbiased arbitrator makes a final and binding
resolution. This is a Level 2 appeal. The arbitrator
for a Level 2 appeal is usually a panel that includes
peers and managers.

TRAINING PROGRAMS FOR THE

ACQUISITION OF REQUIRED SKILLS
Training not only provides participants in the performance
management system with needed skills and tools to do a good
job implementing it but also helps increase satisfaction with
the system.
Content Areas that can be included in Rater Training Programs
Reasons for implementing the performance management system
Information on the appraisal form and system mechanics
How to identify and rank job activities
How to observe, record, and measure performance
How to minimise rating errors
How to conduct an appraisal interview
How to train, counsel, and coach

CHOICES OF TRAINING
PROGRAMS

Rater Error Training

Frame of Reference Training
Behavioral Observation Training
Self-Leadership Training

RATER ERROR TRAINING

(RET)

The goal of RET is to increase rating accuracy by

making raters aware of the unintentional errors they
are likely to make and strategies are made to
minimize the errors.
RET programs include definitions of the most typical
error and possible causes of those errors.
RET does not guarantee increased accuracy.

DIFFERENT TYPES OF
ERRORS
Similar to me error

Supervisors are more likely to give higher performance ratings to those employees who are
perceived to be more similar to them in terms of attitudes, preferences, personality etc.

Contrast error

Contrast error occurs when, even if an absolute measurement system is in place, supervisors
compare individuals with one another instead of against predetermined standards.

Leniency error

Leniency error occurs when raters assign high(lenient) ratings to most or all employees.
Leniency involves artificial rating inflation.

Severity error

Severity error occurs when raters assign low(severe) ratings to most or all employees.
Severity involves artificial rating deflation.

Central tendency error

Central tendency error occurs when raters use only the middle points on the rating scales
and avoid using the extremes.

Halo error

Halo error occurs when the raters fail to distinguish among the different aspects of
performance being rated.

Primacy error

Primacy error occurs when performance evaluation is influenced mainly by information

collected during the initial phases of the review period.

Recency error

Recency error occurs when performance evaluation is influenced mainly by information

gathered during the last portion of the review period.

Negativity error

Negativity error occurs when raters place more weight on negative information than on
positive or neutral information.

First impression error

First impression error occurs when raters make an initial favorable or unfavorable
judgement about an employee and then ignore subsequent information that does not
support the initial impression.

Spillover error

Spillover error occurs when scores from previous review periods unjustly influence current
ratings.

Stereotype error

Stereotype error occurs when a supervisor has an oversimplified view of an individuals

based group membership.

Attribution error

The attribution error takes place when a supervisor attributes poor performance to an
employees dispositional tendencies(e.g, personality, abilities) instead of features of
the situation (e.g., malfunctioning equipment)

FRAME OF REFERENCE TRAINING

Frame for reference training helps improve rater

accuracy by thoroughly familiarizing raters with the
various performance dimensions to be assessed.
Goal is to give raters skills so that they can provide
accurate ratings of each employee on each
dimension by developing a common frame of
reference.

TRAINING PROGRAM INCLUDE 6

STEPS
1)

Raters are told that they will evaluate the performance of three
employees on three separate performance dimensions.

2)

Raters are given an appraisal form and instructed to read it as the

trainer reads aloud the definition for each dimension and the scale.

3)

The trainer discusses various employee behaviors that illustrate

various performance levels for each rating scale included in the
form.

4)

Participants are shown a clip of behaviors related to the

performance dimensions being rated, and are asked to evaluate the
employees performance using the scale provided.

5. Ratings provided by each participant are shared with rest of the

group and discussed. The trainer seeks to identify which
behaviors participants used to decide on their assigned ratings
and to clarify any discrepancies among the ratings.
6. Trainers provides feedback to participants, explaining why the
employee should receive a certain rating on each dimension and
show discrepancies between the target score and the score given
by each trainee..

BEHAVIORAL OBSERVATION TRAINING

Behavioral observation(BO) training is another type of program implemented to

minimize unintentional rating errors.
BO training focuses on how raters observe, store, recall, and use information
about performance.
This type of training improves raters skills at observing performance.
These observational aids help raters record a preestablished number of
behaviors on each performance dimension.
Using these aids helps raters increase the sample of incidents observed and
recorded during a specific time period.

SELF-LEADERSHIP TRAINING

1.
2.

The goal of self leadership(SL) training is to improve a raters confidence in her

ability to manage performance.
SL training techniques include positive self-talk, mental imagery, and positive
beliefs and thought patterns.
SL training has become a popular tool in the context of performance
management systems and as a type of training program beneficial for
supervisors even when they are not necessarily involved in a performance
management system.
Designing an SL training program involves the following step:
Observe and record existing beliefs and assumptions, self-talk, and mental
imagery patterns.
Analyze the functionality and constructiveness beliefs, self-talk and imagery
patterns uncovered in step 1.

3. Identify

or develop more functional and constructive beliefs and assumptions,

self verbalizations, and mental images to substitute for dysfunctional ones.

4. Substitute

the more functional thinking for dysfunctional thoughts experienced

in actual situation.

5. Continue

monitoring and maintaining beliefs , self-verbalizations, and mental

images over time.
A related type of training program is labeled self-efficacy training for raters
(SET-R) and the goal of this type of training is to decrease a raters discomfort
of performance management and to enhance a managers belief that he has the
necessary skills to manage employees performance.

PILOT TESTING

Provides ability to discover potential problems and then to fix

them.
The most important aspect of the pilot test is that all participants
maintain records noting any difficulties they encountered , ranging
from problems with the appraisal form and how performance is
measured to the feedback received.
The pilot test allows for the identification and early correction of
any flaws before the system is implemented throughout the
organisation.

BENEFITS OF PILOT TESTING

Gain information from potential participants

Learn about difficulties/obstacles

Collect recommendations on how to improve all aspects of

system

Understand personal reactions to it

End users are likely to have a higher system acceptance rate

Provides crucial information before it is actually put into

place

ONGOING MONITORING AND EVALUATION

When the testing period is over and the performance management system has
been implemented, it is important to use clear measurements to monitor and
evaluate the system.
Evaluation data should include reactions to the system and assessment of the
systems operational and technical requirements.
MEASURES USED FOR MONITORING AND EVALUATION ARE:
No. of individuals evaluated
Distribution of performance rating
Quality of information
Quality of performance discussion meeting
System satisfaction
Overall cost/benefit ratio
Unit-level and organisation-level performance

THANK YOU