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The formal performance review is an integral part of the performance management process. Choosing the right tool to evaluate performance is half the battle.
After assessing the performance of your team members, the next step in the performance management process is completing the performance review form. The performance review form is commonly completed annually and documents performance strengths, weaknesses and the action plan towards improvement. It is the formal record of coaching conversations and incidents over the year. It helps to determine the goal(s) of the performance reviews before writing them. If you are clear on intent, it will help determine what content needs to be included in the review. Performance reviews can: 1) Strategize for performance improvements 2) Aid in compensation planning and adjustments (raises, bonus increases) 3) Help determine placement decisions (promotions, transfers, demotions) 4) Identify training and professional development needs 5) Give direction to career planning 6) Identify deficiencies in operational and HR policies and procedures 7) Identify job description and design errors 8) Help to avoid discrimination and reduce wrongful dismissal and other claims 9) Identify where other resources are needed (counseling, medical attention) There are as many performance review forms as there are companies. Some forms do a better job than others at being objective. Bias can occur when personality traits are measured over job related competencies. Legality comes into play if any comments could be seen as discriminatory (race, sex, color, religion, age or national origin). The commonly used techniques to evaluate performance are: Rating scales - an attribute is listed with a 3, 5 or more point scale and the evaluator is asked to choose a rating for each attribute. Disadvantage: The more vague the scale or the attribute, the greater the chance for biased evaluation. Forms that are used for all job descriptions and rate each attribute without clear definitions of the scale are bound to cause communication problems. Advantage: Quick to complete so can be completed quarterly giving timely feedback to employees. Results are quantifiable and so can be statistically analyzed. Best practice: Have different versions of the form and create a competency model or profile (skills and knowledge) for each job title. Ideally, clearly define what outstanding, average and poor performance (i.e. the rating scale) looks like for each competency. If you are using the same scale to rate multiple competencies, keep the rating scale to a 3-point scale to avoid the bias of supervisors not wanting to choose the extremes. Also include blank writing space where evaluators can document incidents that support the rating. Give the employee a copy of the form and ask them to self-assess for comparison with their supervisor's ratings. Examples: 1) Example of a rating scale form for general staff at the University of Tennessee 2) Competency Profile for mid-level manager Long answer questions - open-ended questions are asked and the evaluator is to write a narrative answer. Disadvantage: Intimidating and time consuming for evaluators. Many evaluators have difficulty completing the forms with objectivity. Standardization can also be an issue and the results can not be quantified overall. Advantage: Provides more qualitative information that can lead to a greater insight into how the employee views themselves, their role, the team they work with and the company. Best practice: Can be very effective in self-evaluative forms in preparation for a more formal performance review or for an interim review. Example: CURRENT RESPONSIBILITIES 1. Attach a current job description; if applicable, make note of any significant changes since last year's performance review. PERFORMANCE ASSESSMENT 2. Discuss and evaluate the employee's job performance. Base your evaluation upon the position requirements, achievement of the goals established during the past year, and your assessment of the employee's accomplishments. 3. Are there areas of exceptional performance that should be particularly noted? Provide specific examples. 4. Are there areas of performance needing more attention or improvement? Provide specific examples. 5. State and discuss the expectations and goals for the upcoming review period. Give examples of how these goals can be met (e.g., training). EMPLOYEE COMMENTS (Optional) 6. The employee may comment on the performance review in the space provided below. Excerpt from MIT Performance Review Form #2 Management-by-objectives or goal setting exercises - This is commonly used with sales teams or other departments that monitor performance by numbers. Here clearly stated goals are articulated by input from both the supervisor and the subordinate so that there is an overt commitment to the goal. Disadvantage: if either the supervisor or the subordinate are not clear on how to write goal statements that are specific and measurable it can lead to ambiguity and miscommunication around expectations. This method can also skew performance towards quantity not quality as numbers are the key indicators of success. Advantage: If the subordinate is engaged in the performance review process, there is a greater likelihood of performance improvement. Also, if the goals are clearly articulated and the measurements used (metrics) are easily understood, it can be a very powerful method of tracking ongoing performance and encouraging a continuum of performance coaching. Best practice: Train both supervisors and managers on goal setting techniques. Choose metrics that encourage both quality and quantity. Example: Sales Manager MBO's set: 1. Number of sales calls - target = x, actual = y, variance = +/- z 2. Number of new clients - target = x, actual = y, variance = +/- z 3. Sales of widgets - target = x, actual = y, variance = +/- z 4. Customer complaints - target = x, actual = y, variance = +/- z 5. Number of training courses completed - target = x, actual = y, variance = +/- z 6. Number of monthly reports submitted by deadline - target = x, actual = y, variance = +/- z 360-degree Feedback - this method of performance review attains feedback from the self, subordinate, superior and peer. It provides a more holistic view of the employee's performance. Disadvantage: it is costly and requires a time and energy commitment from the HR department. Outsourced vendors are required to customize and administer the survey software. Advantage: A good tool for matrix organizations as it is in line with the concept of a flat structure i.e. feedback comes from multiple sources of contact. Most software packages provide graphs to help compare results visually. Best practice: If used for senior managers and executives, its cost is justified considering the importance of their role especially in a matrix environment that is top management lean. It requires leadership that is open to obtaining various points of view on their performance. Example: Interactive demo of the 360-degree process If you have comments or suggestions on this article, please use the link below to start a discussion. If you liked this article, here are links to other performance management articles and blogs. Performance Management Article Series:Performance Management 1: Root Causes for Performance Issues: Lack of Skill or Motivation Performance Management 2: Coaching Performance Improvement: Skill or Motivation Problems Performance Management 3: Motivating Positive Performance: Understanding Motivational Needs Performance Management 4: Motivational Tasks and Incentives: Individual Motivational Needs Performance Management 6: Performance Conversation Tips: Effective Performance Coaching Blogs on Performance ManagementStress and Performance Reviews Copyright © 2006, Joni Rose and Suite 101. All rights reserved. Any unauthorized use will constitute an infringement of copyright.
The copyright of the article Performance Review Tools and Tips in Training/Professional Development is owned by Joni Rose. Permission to republish Performance Review Tools and Tips in print or online must be granted by the author in writing.
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