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FACILITATOR GUIDEUnit Standard 252034
TABLE OF CONTENTS
Welcome to the learning programme
Follow along in the guide as the training practitioner takes you through the material. Make notes and sketches that will help you to understand and remember what you have learnt. Take notes and share information with your colleagues. Important and relevant information and skills are transferred by sharing!
This learning programme is divided into sections. Each section is preceded by a description of the required outcomes and assessment criteria as contained in the unit standards specified by the South African Qualifications Authority. These descriptions will define what you have to know and be able to do in order to be awarded the credits attached to this learning programme. These credits are regarded as building blocks towards achieving a National Qualification upon successful assessment and can never be taken away from you!
Programme methodology
The programme methodology includes facilitator presentations, readings, individual activities, group discussions and skill application exercises.
Know what you want to get out of the programme from the beginning and start applying your new skills immediately. Participate as much as possible so that the learning will be interactive and stimulating.
The following principles were applied in designing the course:
Because the course is designed to maximise interactive learning, you are encouraged and required to participate fully during the group exercises
As a learner you will be presented with numerous problems and will be required to fully apply your mind to finding solutions to problems before being presented with the course presenter’s solutions to the problems
Through participation and interaction the learners can learn as much from each other as they do from the course presenter
Although learners attending the course may have varied degrees of experience in the subject matter, the course is designed to ensure that all delegates complete the course with the same level of understanding
Because reflection forms an important component of adult learning, some learning resources will be followed by a self-assessment which is designed so that the learner will reflect on the material just completed.
This approach to course construction will ensure that learners first apply their minds to finding solutions to problems before the answers are provided, which will then maximise the learning process which is further strengthened by reflecting on the material covered by means of the self-assessments.
Different role players in delivery process
Learner
Facilitator
Assessor
Moderator
What Learning Material you should have
This learning material has also been designed to provide the learner with a comprehensive reference guide.
It is important that you take responsibility for your own learning process; this includes taking care of your learner material. You should at all times have the following material with you:
Learner Guide
This learner guide is your valuable possession:
This is your textbook and reference material, which provides you with all the information you will require to meet the exit level outcomes.
During contact sessions, your facilitator will use this guide and will facilitate the learning process. During contact sessions a variety of activities will assist you to gain knowledge and skills.
Follow along in the guide as the training practitioner takes you through the material. Make notes and sketches that will help you to understand and remember what you have learnt. Take and share information with your colleagues. Important and relevant information and skills are transferred by sharing!
This learning programme is divided into sections. Each section is preceded by a description of the required outcomes and assessment criteria as contained in the unit standards specified by the South African Qualifications Authority. These descriptions will define what you have to know and be able to do in order to be awarded the credits attached to this learning programme. These credits are regarded as building blocks towards achieving a National Qualification upon successful assessment and can never be taken away from you!
Formative Assessment Workbook
The Formative Assessment Workbook supports the Learner Guide and assists you in applying what you have learnt.
The formative assessment workbook contains classroom activities that you have to complete in the classroom, during contact sessions either in groups or individually.
You are required to complete all activities in the Formative Assessment Workbook.
The facilitator will assist, lead and coach you through the process.
These activities ensure that you understand the content of the material and that you get an opportunity to test your understanding.
Different types of activities you can expect
To accommodate your learning preferences, a variety of different types of activities are included in the formative and summative assessments. They will assist you to achieve the outcomes (correct results) and should guide you through the learning process, making learning a positive and pleasant experience.
The table below provides you with more information related to the types of activities.
Types of Activities
You are required to complete these activities on your own.
These activities normally test your understanding and ability to apply the information.
Skills Application Activities
You need to complete these activities in the workplace
These activities require you to apply the knowledge and skills gained in the workplace
Natural Occurring Evidence
You need to collect information and samples of documents from the workplace.
These activities ensure you get the opportunity to learn from experts in the industry.
Collecting examples demonstrates how to implement knowledge and skills in a practical way
Learner Administration
Attendance Register
You are required to sign the Attendance Register every day you attend training sessions facilitated by a facilitator.
Programme Evaluation Form
On completion you will be supplied with a “Learning programme Evaluation Form”. You are required to evaluate your experience in attending the programme.
Please complete the form at the end of the programme, as this will assist us in improving our service and programme material. Your assistance is highly appreciated.
Assessments
The only way to establish whether a learner is competent and has accomplished the specific outcomes is through the assessment process. Assessment involves collecting and interpreting evidence about the learners’ ability to perform a task.
To qualify and receive credits towards your qualification, a registered Assessor will conduct an evaluation and assessment of your portfolio of evidence and competency.
This programme has been aligned to registered unit standards. You will be assessed against the outcomes as stipulated in the unit standard by completing assessments and by compiling a portfolio of evidence that provides proof of your ability to apply the learning to your work situation.
How will Assessments commence?
Formative Assessments
The assessment process is easy to follow. You will be guided by the Facilitator. Your responsibility is to complete all the activities in the Formative Assessment Workbook and submit it to your facilitator.
Summative Assessments
You will be required to complete a series of summative assessments. The Summative Assessment Guide will assist you in identifying the evidence required for final assessment purposes. You will be required to complete these activities on your own time, using real life projects in your workplace or business environment in preparing evidence for your Portfolio of Evidence. Your Facilitator will provide more details in this regard.
To qualify and receive credits towards your qualification, a registered Assessor will conduct an evaluation and assessment of your portfolio of evidence and competency.
Learner Support
The responsibility of learning rests with you, so be proactive and ask questions and seek assistance and help from your facilitator, if required.
Please remember that this Skills Programme is based on outcomes based education principles which implies the following:
You are responsible for your own learning – make sure you manage your study, research and workplace time effectively.
Learning activities are learner driven – make sure you use the Learner Guide and Formative Assessment Workbook in the manner intended, and are familiar with the workplace requirements.
The Facilitator is there to reasonably assist you during contact, practical and workplace time for this programme – make sure that you have his/her contact details.
You are responsible for the safekeeping of your completed Formative Assessment Workbook and Workplace Guide
If you need assistance please contact your facilitator who will gladly assist you.
If you have any special needs please inform the facilitator
Learner Expectations
Please prepare the following information. You will then be asked to introduce yourself to the instructor as well as your fellow learners
Your name:
The organisation you represent:
Your position in organisation:
What do you hope to achieve by attending this course / what are your course expectations?
UNIT STANDARD 252034
NQF Level
Purpose Of The Unit Standard 
This Unit Standard is intended for managers in all economic sectors. These managers would typically be second level managers such as heads of department, section heads or divisional heads, who may have more than one team reporting to them.
The qualifying learner is capable of:
Formulating performance standards for team members in a unit.
Establishing systems for monitoring performance of team members.
Preparing for a performance review of a team member.
Conducting performance review interview. 
Learning Assumed To Be In Place And Recognition Of Prior Learning 
It is assumed that learners are competent in:
Communication at NQF Level 4.
Mathematical Literacy at NQF Level 4.
Computer Literacy at NQF Level 4. 
Unit Standard Range 
The learner is required to apply the learning in respect of this/her own area of responsibility.
This Unit Standard relates to once-off projects and events that have to be planned and implemented in a unit.
Unit refers to the division, department or business unit in which the learner is responsible for managing and leading staff.
Entity includes, but is not limited to, a company, business unit, public institution, small business, Non-Profit Organisation or Non-Governmental Organisation. 
Specific Outcomes and Assessment Criteria: 
Specific Outcome 1 
Assessment Criteria 
Performance standards to be achieved by team members are formulated in relation to the unit's goals, objectives and deliverables. 
Performance standards are clear and concise and specify the activities to be performed and the standards to which they are to be performed. 
Feedback from team members is incorporated into the performance standards to promote the buy-in of team members in a unit. 
Performance standards are recorded and documented according to the entity's policies and procedures. 
Specific Outcome 2 
Assessment Criteria 
A variety of performance monitoring systems are identified and reviewed for possible use in a unit. 
The performance monitoring system selected is in line with the entity's policies and procedures for performance assessment. 
The performance monitoring system is communicated to team members to promote buy-in. 
The system for monitoring performance against standards is set up in accordance with the entity's policy and procedures. 
Specific Outcome 3 
Assessment Criteria 
The arrangements for the performance review are agreed with team member, including the time, place and nature of the review. 
Preliminary assessment of performance against the agreed standards is conducted using monitoring systems. 
Information gathered during the preliminary assessment is documented to be available for future reference. 
Methods for giving constructive feedback are identified that make provision for reporting positive and negative findings. 
Documents to be used during the review are prepared in accordance with the entity's policies and procedures. 
Specific Outcome 4 
Assessment Criteria 
The review is conducted in accordance with the arrangements previously agreed with the team member. 
Feedback provided to the team member is relevant and fair and communicated in a constructive and supportive manner. 
Findings on positive and negative aspects of the member's performance are recorded accurately, fairly and honestly for report back and follow-up. 
An action plan to address performance gaps and build on positive performance is agreed upon with the employee. 
Agreed actions are documented and signed by both parties. 
Unit Standard Accreditation And Moderation Options 
Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
Unit Standard Essential Embedded Knowledge 
Methods for formulating key result areas and performance standards.
Types of systems for monitoring performance.
Process for conducting performance reviews.
Methods of giving constructive feedback. 
Critical Cross-field Outcomes (CCFO): 
Unit Standard CCFO Identifying 
The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in relation to monitoring the performance of team members. 
Unit Standard CCFO Working 
The learner is able to work as a member of a team in planning, promoting and managing the implementation of a performance monitoring system. 
Unit Standard CCFO Organising 
The learner is able to organise and manage him/herself and his/her activities responsibly and effectively in planning and implementing a performance monitoring system. 
Unit Standard CCFO Collecting 
The learner is able to collect, organise and critically evaluate information and applying this in relation to the monitoring and measuring of the performance of team member. 
Unit Standard CCFO Communicating 
The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in communicating with all team members in relation to their performance. 
Unit Standard CCFO Demonstrating 
The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in applying knowledge of and insight into the managing of the performance of team members. 
1. FORMULATE PERFORMANCE STANDARDS FOR TEAM MEMBERS
Specific Outcome 1 
Assessment Criteria 
Performance standards to be achieved by team members are formulated in relation to the unit's goals, objectives and deliverables. 
Performance standards are clear and concise and specify the activities to be performed and the standards to which they are to be performed. 
Feedback from team members is incorporated into the performance standards to promote the buy-in of team members in a unit. 
Performance standards are recorded and documented according to the entity's policies and procedures. 
Formulating Performance Standards for Team Members
Performance management is a systematic review of an individual or a group's performance on the job.
Performance management can be defined as a systematic approach to managing the process according to which the performance and development of individuals and entities within the institution are actively managed to ensure that the strategy and vision of the organisation are achieved.
Performance management therefore entails:
The definition of the performance that is being managed (design);
The process of performance management (implementation); and
The management of the consequences of the performance (integration).
The purpose of Performance Management includes:
To help a leader decide what increases of pay shall be given on grounds of merit.
To determine the future of an employee e.g. whether the employee shall remain in his or her present job or be transferred, promoted, demoted or dismissed.
To indicate training needs i.e. areas of performance where improvements would occur if appropriate training could be given.
To motivate the employee to do better in his or her present job by giving the worker knowledge of results, recognition of merits and the opportunity to discuss work with his or her manager.
Performance management is the process of:
planning work and setting employee expectations
continually monitoring employee performance
periodically rating the employee's performance
rewarding good performance
An effective performance management system will comprise these elements in a systematic way.
The Performance Management System is an essential management system that helps structure internal resources and then monitor and evaluate their effectiveness. This provides the possibility for continuously improving the use of resources. Performance management fulfils the implementation management, monitoring and evaluation of the integrated development plans and broader activities of the organisation.
Formulate Performance Standards
In order for the manager to measure the performance of an employee, team, section, division or department effectively, performance standards need to be set that are agreed by both the employee and the manager, before performance can actually be measured.
Before we can set performance standards, we need to understand the difference between goals, objectives, priorities and tasks. Only then are we in a position to understand:
What we are doing?
What the end goal will be?
Goals
A goal is a statement of results which are to be achieved.
Goals describe:
(1) conditions that will exist when the desired outcome has been accomplished;
(2) a time frame in which the outcome is to be completed; and
(3) resources that Affinity is prepared to commit to ensure that the result is achieved
Objectives
To achieve a goal we must have a series of smaller goals or objectives that will help us to reach our goal (SMART)
Standards
A performance standard is an ongoing performance criteria that must be met
A performance standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organisational unit. It is usually expressed numerically and is set for quality, quantity and time
Priorities
Identify the urgency and the importance of the objectives and set them into a logical flow pattern to ensure that the objectives and the goal is achieved
Key Tasks
These derive from objectives and are the actions that must be taken to make the objectives happen
Organisations and employees that set challenging and measurable goals are more likely to be effective than those that do not set goals at all.
The goals and objectives of the individual employee, the team, section, division or department in the organisation must be:
in line with the core business of the organisation
aligned to achieving the vision, mission and overall goals of the organisation
challenging, but achievable and backed-up with employee buy-in
To establish performance expectations or goals that lead to effective results for the team / department, you should base the expectations of the employee on the following:
The organisational strategy (vision, mission)
The business objectives for the upcoming year (company goals)
The department’s objectives for the upcoming year
The skills and behaviours the company regards as important
Setting SMART Goals
SMART is an acronym for Specific, Measurable, Achievable, Realistic and Timely as can be seen below:
Specific
It is clear?
Measurable
How will the individual know when the task has been completed?
What evidence is needed to confirm it?
Have you stated how you will judge whether it has been completed or not?
Achievable
Are there sufficient resources available to enable this to happen?
Can it be done at all?
Realistic
Is it possible for the individual to perform the objective?
How sensible is the objective in the current business context?
Does it fit into the overall patter of this individual’s work?
Timely
Is it appropriate to do this work now?
Are there review dates?
The performance expectations that the manager has for the employee or that the employee has of himself/herself should be linked to performance standards. By setting motivational goals and standards, the team will benefit in the knowledge of what is expected of them and how they are doing.
The following fill-in-the-blank equation may be useful when writing an objective:
OBJECTIVE: To (+ action verb + single key result + target date)
All performance objectives should have the following criteria in order to be effective:
They should be attainable and realistic. Any objective should be achievable within the time frame.
They should require increased effort or performance. Thus, it should not be an already existing quality of the employee or a goal which requires little work to achieve.
They should be relevant and related to the job.
They should be well-defined and not to create confusion as to what should be achieved.
They should be measurable so it is possible to evaluate the employee's performance. To facilitate measurement, effort should be made to quantify, as much as possible, each goal and objective by using performance standards.
Defining performance targets / objectives for your employees could help you to:
ensure that every employee's contribution fits into the overall aims of the business
help individual employees better understand their aims and role within the business
help employees feel valued
create standards to measure the quantity and quality of employees' work
monitor the success of the business
identify ways to make the business run more efficiently
identify ways to expand the business
Performance Standards
A performance standard is an ongoing set of performance criteria that must be met time and time again. Standards are usually expressed in quantities of performance required. As with goals and objectives, performance standards are most effective when established with the employee’s buy-in. The performance standard is used to measure how well the objectives and goals have been achieved.
Performance standards are used to:
Provide a benchmark for performance - It answers the employee question: “What is expected of me?” It enables the leader to appraise objectively.
Define excellent behaviour - It eliminates any “guess” on the part of the employee and it alerts employees to the need for corrective action.
Provide an opportunity to improve performance - It allows managers to monitor employee skills after coaching and/or training. It is a guide to employees to evaluate how well they are doing and to clarify areas that need improvement.
The work performance standards expected from the employee must be:
Measurable
Attainable
Understandable
Observable
Communicated
Specify the Activities and Standards
Performance standards are determined and set in accordance with:
The business plan of the organisation and the team, department, section or department
The customer needs, expectations and requirements
The organisational expectations and requirements
In order to achieve the required performance, the manager and the employee therefore need to have a thorough understanding of:
The goals and objectives of the organisation
The goals and objectives of the team, department, section or department
The goals and objectives of the employee
The performance standards that need to be achieved by the employee in order to deliver what is expected
In order to set performance standards, the following needs to be explored:
What are the indicators of success?
How can the quantity or quality of each area (goal / objective) be measured?
Output
Quality
Procedures
Cost
Time taken to carry out the job function
In order to effectively define the performance standards, you need to define the:
(the “what”)
(the “how”)
(the “measurement”)
the accomplishments or outputs of such activities, and
the outcomes which are hoped to be achieved.
Activities
Activities are the actions taken to produce results and are generally described using verbs. Examples of activities include:
· filing documents
Accomplishments
Accomplishments (or outputs) are the products or services (the results) of employee and work unit activities and are generally described using nouns. Examples of accomplishments include:
· files that are orderly and complete
· a software programme that works
· accurate guidance to customers
Outcomes
Outcomes are the final results of an organisation's products and services (and other outside factors that may affect performance). Examples of outcomes could include:
· reduced number of bad debts
· improved customer retention
· increase in production levels.
Setting performance standards for individual employees:
Performance standards are set with the employee and not for the employee:
Schedule and hold a performance standard setting meeting with the employee.
Discuss the job description in detail and agree on each of the tasks and applicable performance standards.
Focus on the performance standards, not the employee or his character.
Ensure the employee understands why each task and performance standard is necessary and reasonable.
Request the employee’s input. Encourage open communication.
Check for understanding and agreement before proceeding to the next performance standard.
Address any concerns or fears of the employee.
Identify real or perceived barriers towards achieving the performance standards.
Identify and agree upon resources, training, guidance and coaching and review periods.
Be specific about your and the organisation’s expectations.
Document the performance standards that were agreed and provide the employee with a copy of it.
Setting performance standards for a group or team:
Performance standards are set with the team and not for the team:
Schedule and hold a short term objective setting and performance standard setting meeting with the team.
Discuss the goal and the objectives of the team. Allow negotiation in order to agree on each of the tasks, applicable performance standards and which team member takes accountability for delivering the required outcomes.
Focus on the tasks, the performance standards and accountability, not the team or team member’s character.
Ensure that the team members understand why each task and performance standard is necessary and reasonable.
Allocate tasks to team members according to strengths and weaknesses. Allow team members input and negotiate the process in order to have the best person performing the task
Agree on deadlines and timeframes. Encourage team members to use benchmarking, previous experience and realistic forecasting methods to set the deadlines and timeframes.
Request the team’s input. Encourage open communication.
Check for understanding and agreement before proceeding to the next goal, objective or performance standard.
Address any concerns or fears of the team members.
Identify real or perceived barriers towards achieving the performance standards
Identify and agree upon resources, training, guidance, coaching and review periods.
Be specific about your and the organisation’s expectations.
Document the agreed performance standards and provide the team members with a copy of the agreed standards.
When performance standards are set effectively, it benefits the organisation, the manager and the employee, as it will:
Clarify the expected results
Help focus individual efforts
Help all to identify and correct problems
Establish a climate of communication
The following six steps can be used as a guideline to implement the set performance standards:
Step 1: Develop written standards
To implement standards successfully, every person in the organisation should understand what they need to do and what the criteria for success is. It is important to create clear and concise standards that are aligned to the requirements of the organisation (vision, mission, business plan, etc.). Providing written standards also helps you ensure that everyone is working towards the same goal. After you have written standards, you need to integrate them into as many systems as possible. You should use the performance standards as a foundation for recruiting new employees, developing job descriptions, making performance related decisions and creating development plans.
Step 2: Train people to meet standards
Standards are only useful if they are achievable and realistic. Employees need to feel that they are able to do what is expected of them successfully. If an employee is unable to achieve a set standard, an assessment of the situation needs to be done in order to determine the reasons for non-achievement and to identify the training needs. Provide the employees with the opportunity to develop the required skills so that they feel comfortable in their ability to reach the set standards.
Step 3: Measure performance against standards
As part of the performance management process in the organisation, the performance of the employee is measured against the set and agreed performance standards (criteria). It is important that both the manager and the employee agree on the performance standards and measurement methods before actually measuring performance.
Use a performance rating scale, such as the example below of a 5-point scale to evaluate the performance:
Qualitative explanation
2
3
Sufficient performance
– the levels of performance that are acceptable (the target or objective)
4
Excellent performance
– the individual’s level of performance sometimes exceeds the determined target
5
Excellent performance
– the individual’s level of performance usually exceeds the determined target
Step 4: Give feedback
In order for employees to stay focussed on reaching their performance standards, objectives and goals, the manager needs to provide feedback to the employee. Keeping the employees informed about their performance, keeps them interested and motivates them towards achieving the set standards. Announcing progress towards achieving departmental or organisation goals helps employees see the impact that they have on the organisation’s overall success, e.g. business indicators such as sales statistics, call centre statistics, etc.
Step 5: Reward performance
Rewarding the success of your employees is crucial in motivating them to perform at the level specified by the performance standards. Congratulate and reward employees on successful results and encourage them to continue achieving. Positive reinforcement encourages the high performers to continue performing and it serves as a motivation for the average performers to increase their performance.
Step 6: Re-evaluate standards
After the performance standards have been implemented, you should adjust them regularly to maintain a high level of performance. Because the organisation’s business plan and requirements change, it is critical for your organisation to continue to analyse what you can do to satisfy your customers and provide them with excellent performance.
Incorporate Feedback into Performance Standards
An important part of a team leader's role is to encourage team members to develop effective performance goals and to commit to those goals on a daily basis.
The key to developing an effective team is participation. When people participate in setting goals and developing a plan, they buy into that plan. The plan becomes their own.
Team members need to participate in establishing specific, measurable, attainable, results-oriented, and time-framed performance goals. It then should lead to team member agreement and commitment to those performance goals. 
Record and Document Performance Standards
Once the performance standards have been agreed they must be documented.:
The terms for expressing performance standards are outlined below:
Quantity: specifies how much work must be completed within a certain period of time, e.g., enters 30 enrolments per day.
Quality: describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness, e.g., 95% of documents submitted are accepted without revision.
Timeliness: answers the questions, By when? , How soon? , or Within what period? , e.g., all work orders completed within five working days of receipt.
Effective Use of Resources: used when performance can be assessed in terms of utilization of resources: money saved, waste reduced, etc., e.g., the computer handbook project will be completed with only internal resources.
Effects of Effort: addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by, e.g., establish inventory levels for storeroom so that supplies are maintained 100% of the time.
Manner of Performance: describes conditions in which an individual's personal behaviour has an effect on performance, e.g., assists other employees in the work unit in accomplishing assignments.
Method of Performing Assignments: describes requirements; used when only the officially-prescribed policy, procedure, or rule for accomplishing the work is acceptable, e.g., 100A Forms are completed in accordance with established office procedures.
The format for presenting the performance standards must be agreed according to organisational policy and guidelines.
Formative Assessment 1: SO1 EEK1
2. ESTABLISH SYSTEMS FOR MONITORING PERFORMANCE
Specific Outcome 2 
Assessment Criteria 
A variety of performance monitoring systems are identified and reviewed for possible use in a unit. 
The performance monitoring system selected is in line with the entity's policies and procedures for performance assessment. 
The performance monitoring system is communicated to team members to promote buy-in. 
The system for monitoring performance against standards is set up in accordance with the entity's policy and procedures. 
Establishing Systems for Monitoring Performance
In order for the employee, team, section, division or department to effectively monitor performance, a monitoring system needs to be created. The monitoring system is used to
Determine if the set performance standards have been met
Modify the performance standards according to the changing needs in the organisation
A performance monitoring system will have:
Measurable outcomes: to measure the actual performance of the employee
Reporting system: that will provide the manager with a tool to report the findings in the performance management process and keep records of the employee’s performance
Processes: to ensure that the performance management system is fair and easy to follow
Timeframes: to adhere to the company’s performance management policies and procedures for managing and measuring the performance of employees. These timeframes would vary according to the needs in the organisation.
A performance monitoring system could use any of the following performance management or appraisal techniques:
Rating - A number of employee characteristics are rated on a scale which may range from 0 to 5 such as
5 points OUTSTANDING
1 point UNSATISFACTORY
0 point UNACCEPTABLE
Comparison with objectives (MBO – Management By Objectives) - Employees and their managers agree objectives. The appraisal is based on how far these objectives have been met
Critical incidents - The appraiser records incidents of employees' positive and negative behaviour during a given period
Narrative report - The appraiser describes the individual's work performance in his or her own words
Behaviourally Anchored Rating Scales - A group of rating scales is developed which is custom made for each job and is based on the employee’s behaviour
360 Degree Feedback - This multi-source feedback method provides a comprehensive perspective of employee performance by utilising feedback from the full circle of people with whom the employee interacts: leaders, employees and co-workers. It is effective for career coaching and identifying strengths and weaknesses.
Balanced Scorecard - The Balanced Scorecard views an organisation, individual or a team from four perspectives.
The BSC aligns all objectives to the overall vision and strategy of the business which sits at the centre point of the BSC model:
The financial perspective poses the question “To succeed financially, how should we appear to our stakeholders?”
The customer perspective considers the needs and expectations of both internal and external customers and poses the question “To achieve our vision, how should we appear to our customers?”
The internal business processes align to the financial and customer perspectives and poses the question “To satisfy our shareholders and customers, what business processes must we excel at?”
The learning and growth perspective focuses on innovation of new products and services and the development and improvement of resources to achieve the organisational vision
Performance Contracting: A performance contract is set up by referencing the employee’s job profile and the business unit scorecard. The performance contract then details areas of performance for the individual that are a priority to the business and that align to the achievement of the overall business objectives and company vision. The performance contract outlines the individuals Key Result Areas (KRA’s), associated objectives, measures and targets that are relevant to the business unit goals or scorecard.
Identify a Variety of Performance Monitoring Systems
W. Edwards Deming is known for his work on evaluating and criticising performance management systems and methods. Deming identified various problems with performance management systems and methods, using the following criteria:
The system nourishes short-term performance and stamps out long-term planning.
The system is destructive to the individual being reviewed. It leaves the subordinates feeling devastated, desolate, inferior and afraid to present a divergent viewpoint.
The system is detrimental to teamwork, because it fosters rivalry, politics and fear.
The system does not reward attempts to improve the system or take a risk. It rewards people who do well under the old system.
The measures used to evaluate performance are not meaningful because supervisors and subordinates are pressured to use numbers.
The measures discourage quality outputs.
Therefore performance management systems and methods should adhere to the following guidelines:
Performance management systems should be criterion-based (standards). People should be evaluated against standards and expectations. It is reasonable to include quality-related standards in the performance management system.
Performance management systems should cover as much of the job as possible. If an aspect of the job is important then it must be evaluated.
Performance management systems should be documented (reported) and records should be kept of employee performance.
Performance management systems should have a clear process, such as setting standards, measuring performance, interactive performance review session, feedback, documentation and reporting.
Performance management systems should be participative. Employees should play a role in developing the performance expectations / standards for their jobs.
Raters should be thoroughly trained to administer, provide feedback and monitor the system.
Balanced Scorecard
Performance management systems, such as The Balanced Scorecard, make use of indexes or Key Performance Indicators (KPIs) as part of the performance measurement system.
Key Performance Indicators (KPI) are financial and non-financial metrics used to quantify objectives to reflect the strategic performance of an organisation. KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organisation's strategy (as exemplified through techniques such as the Balanced Scorecard ).
The KPIs differ depending on the nature of the organisation and the organisation's strategy. They help an organisation to measure progress towards their organisational goals, especially difficult to quantify knowledge-based activities.
A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target and timeframe. For example: "Increase Average Revenue per Customer from R10 to R15 by Dec 2008", where 'Average Revenue Per Customer' is the KPI.
Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organisation. They will differ depending on the organisation. A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers. A school may focus its Key Performance Indicators on graduation rates of its students. A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute. A Key Performance Indicator for a social service organisation might be number of clients assisted during the year.
Whatever Key Performance Indicators are selected, they must reflect the organisation's goals, they must be key to its success and they must be quantifiable (measurable).
Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured does not change often. The goals for a particular Key Performance Indicator may change as the organisation’s goals change, or as it get closer to achieving a goal.
Key Performance Indicators Must Be Quantifiable. If a Key Performance Indicator is going to be of any value, there must be a way to accurately define and measure it. "Generate More Repeat Customers" is useless as a KPI without some way to distinguish between new and repeat customers. "Be The Most Popular Company" won't work as a KPI because there is no way to measure the company's popularity or compare it to others.
It is also important to define the Key Performance Indicators and stay with the same definition from year to year. For a KPI of "Increase Sales", you need to address considerations like whether to measure by units sold or by rand value of sales. Will returns be deducted from sales in the month of the sale or the month of the return? Will sales be recorded for the KPI at list price or at the actual sales price?
You also need to set targets for each Key Performance Indicator. A company goal to be the employer of choice might include a KPI of "Turnover Rate". After the Key Performance Indicator has been defined as "the number of voluntary resignations and terminations for performance, divided by the total number of employees at the beginning of the period" and a way to measure it has been set up by collecting the information, the target has to be established. "Reduce turnover by five percent per year" is a clear target that everyone will understand and be able to take specific action to accomplish.
In selecting Key Performance Indicators, it is critical to limit them to those factors that are essential to the organisation reaching its goals. It is also important to keep the number of Key Performance Indicators small just to keep everyone's attention focused on achieving the same KPIs.
That is not to say, for instance, that a company will have only three or four total KPIs in the company. Rather there will be three or four Key Performance Indicators for the company and all the units within it will have three, four, or five KPIs that support the overall company goals and can be "rolled up" into them.
If a company Key Performance Indicator is "Increased Customer Satisfaction", that KPI will be focused differently in different departments:
The Manufacturing Department may have a KPI of "Number of Units Rejected by Quality Inspection", while the Sales Department has a KPI of "Minutes A Customer Is On Hold Before A Sales Rep Answers". Success by the Sales and Manufacturing Departments in meeting their respective departmental Key Performance Indicators will help the company meet its overall KPI.
Examples of KPIs:
A gift manufacturer won a large order to produce fridge magnets for a chain of stores. The team worked flat out to meet the deadlines, but didn't notice an impending cashflow crisis resulting from a fall in repeat orders from existing customers combined with a jump in raw material costs.
To make matters worse, the new client kept changing its mind about designs, causing delays and increased production costs. The manufacturer had to negotiate a revised overdraft with its bank, reducing profit margins on the new order.
By the time the order was complete, the company had lost several of its existing customers. A downturn in the retail market meant that its new client didn't place any further orders.
Effective KPI targets could have prevented what occurred. The manufacturer would have recognised that customer retention was a business driver and set KPI targets on customer contacts and re-ordering. Cash flow forecasts would have highlighted the need to negotiate advances for the order.
A training company had acceptable levels of sales over its first few years of trading, but showed no marked improvement. The sales manager was excellent at bringing in new business, so this didn't seem to be the problem.
On closer inspection, it became apparent that repeat business per trainer was a key driver. Companies trained by two of its trainers had given them high volumes of repeat business, in stark contrast to the records for its three other trainers.
Monitoring was formalised, and targets were set against a key performance indicator (KPI) of repeat business per trainer per quarter. At the same time, the three trainers with the poorer performance figures agreed to undertake a train-the-trainer refresher course. Thereafter, overall sales increased to the point that they had to take on another trainer.
What do I do with Key Performance Indicators?
Once you have good Key Performance Indicators defined, ones that reflect your organisation's goals, ones that you can measure, what do you do with them?
You use Key Performance Indicators as a performance management tool. KPIs give everyone in the organisation a clear picture of what is important, of what they need to make happen. You use that to manage performance. You make sure that everything the people in your organisation do is focused on meeting or exceeding those Key Performance Indicators.
You also use the KPIs as a carrot. Post the KPIs everywhere: in the canteen, on the walls of every conference room, on the company intranet, even on the company web site for some of them. Show what the target for each KPI is and show the progress toward that target for each of them. People will be motivated to reach those KPI targets.
Once you have determined the KPIs for your department or business unit and ensured that they are aligned to the organisational goals, you can assign a numerical value to your team members’ performance in various categories, based on the pre-determined performance outcomes and criteria. This simplifies performance measurement and monitoring and ensures that you have a factual, objective and easily quantifiable basis to work from when giving the employee feedback on his/her performance.
Appraisal techniques
Essay appraisal
In its simplest form, this technique asks the manager to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, lecturers, or associates carry significant weight. The assumption seems to be that an honest and informed statement -either by word of mouth or in writing- from someone who knows a person well, is fully as valid as more formal and more complicated methods.
The biggest drawback to essay appraisals is their variability in length and content. Moreover, since different essays touch on different aspects of a person's performance or personal qualifications, essay ratings are difficult to combine or compare. For comparability, some type of more formal method, like the graphic rating scale, is desirable.
Graphic rating scale
This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his/her work (is s/he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.
For many purposes there is no need to use anything more complicated than a graphic scale supplemented by a few essay questions.
Field review
When there is reason to suspect manager bias, when some managers appear to be using higher standards than others, or when comparability of ratings is essential, essay or graphic ratings are often combined with a systematic review process. The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of managers from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-manager disagreement, (b) help the group arrive at a consensus, and (c) determine that each manager conceives the standards similarly.
This group-judgment technique tends to be more fair and more valid than individual ratings and permits the central staff to develop an awareness of the varying degrees of leniency or severity -as well as bias- exhibited by managers in different departments. On the negative side, the process is very time consuming.
Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party.
Although there are many variations of this method, the most common one asks managers to choose from among groups of statements those which best fit the individual being rated and those which least fit him/her.
The statements are then weighted or scored, very much the way a psychological test is scored. People with high scores are, by definition, the better employees; those with low scores are the poorer ones. Since the manager does not know what the scoring weights for each statement are, in theory at least, s/he cannot play favourites. S/he simply describes his/her people, and someone in the personnel department applies the scoring weights to determine who gets the best rating.
The rationale behind this technique is difficult to fault. It is the same rationale used in developing selection test batteries. In practice, however, the forced-choice method tends to irritate managers, who feel they are not being trusted. They want to say openly how they rate someone and not be second-guessed or tricked into making "honest" appraisals.
A few clever managers have even found ways to beat the system. When they want to give average employee Harry Smith a high rating, they simply describe the best employee they know. If the best employee is Elliott Jones, they describe Jones on Smith's forced-choice form. Thus, Smith gets a good rating and hopefully a raise.
An additional drawback is the difficulty and cost of developing forms. Consequently, the technique is usually limited to middle- and lower-management levels where the jobs are sufficiently similar to make standard or common forms feasible.
Finally, forced-choice forms tend to be of little value- and probably have a negative effect- when used in performance appraisal interviews.
Critical incident appraisal
The discussion of ratings with employees has, in many companies, proved to be a traumatic experience for supervisors. Some have learned from bitter experience what General Electric later documented; people who receive honest but negative feedback are typically not motivated to do better - and often do worse - after the appraisal interview. Consequently, supervisors tend to avoid such interviews, or if forced to hold them, avoid giving negative ratings when the ratings have to be shown to the employee.
One stumbling block has no doubt been the unsatisfactory rating form used. Typically, these are graphic scales that often include rather vague traits like initiative, cooperativeness, reliability, and even personality. Discussing these with an employee can be difficult.
The critical incident technique gives a supervisor actual, factual incidents to discuss with an employee. Supervisors are asked to keep a record, a "little black book," on each employee and to record actual incidents of positive or negative behaviour.
For example:
Bob Mitchell, who has been rated as somewhat unreliable, fails to meet several deadlines during the appraisal period. His supervisor makes a note of these incidents and is now prepared with hard, factual data:
"Bob, I rated you down on reliability because, on three different occasions over the last two months, you told me you would do something and you didn't do it. You remember six weeks ago when I. . ."
Instead of arguing over traits, the discussion now deals with actual behaviour. Possibly, Bob has misunderstood the supervisor or has good reasons for his apparent "unreliability." If so, he now has an opportunity to respond. His performance, not his personality, is being criticised. He knows specifically how to perform differently if he wants to be rated higher the next time. Of course, Bob might feel the supervisor was using unfairly high standards in evaluating his performance. But at least he would know just what those standards are.
There are, however, several drawbacks to this approach. It requires that supervisors jot down incidents on a daily or, at the very least, a weekly basis. This can become a chore. Furthermore, the critical incident rating technique need not, but may, cause a supervisor to delay feedback to employees. And it is hardly desirable to wait six months or a year to confront an employee with a misdeed or mistake.
Finally, the supervisor sets the standards. If they seem unfair to a subordinate, might s/he not be more motivated if s/he at least has some say in setting, or at least agreeing to, the standards against which s/he is judged?
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organisations are being asked to set - or help set - their own performance goals.
MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met.
Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to R250,000 by 30 June.
Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress.
Work-standards approach
Instead of asking employees to set their own performance goals, many organisations set measured daily work standards. In short, the work standards technique establishes work and staffing targets aimed at improving productivity. When realistically used, it can make possible an objective and accurate appraisal of the work of employees and supervisors.
To be effective, the standards must be visible and fair. Hence a good deal of time is spent observing employees on the job, simplifying and improving the job where possible, and attempting to arrive at realistic output standards.
The work-standards program provides each employee with a more or less complete set of his job duties. Therefore, it would seem only natural that supervisors will eventually relate performance appraisal and interview comments to these duties. The use of work standards should make performance interviews less threatening than the use of personal, more subjective standards alone.
The most serious drawback appears to be the problem of comparability. If people are evaluated on different standards, how can the ratings be brought together for comparison purposes when decisions have to be made on promotions or on salary increases? For these purposes some form of ranking is necessary.
Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful.
Instead, it is necessary to recognise that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this.
Comparing people in different units for the purpose of, say, choosing a service supervisor or determining the relative size of salary increases for different supervisors, requires subjective judgment, not statistics. The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking:
· Alternation ranking: In this method, the names of employees are listed on the left-hand side of a sheet of paper - preferably in random order. If the rankings are for salary purposes, a supervisor is asked to choose the "most valuable" employee on the list, cross his name off, and put it at the top of the column on the right-hand side of the sheet. Next, he selects the "least valuable" employee on the list, crosses his name off, and puts it at the bottom of the right-hand column. The ranker then selects the "most valuable" person from the remaining list, crosses his name off and enters it below the top name on the right-hand list, and so on.
· Paired-comparison ranking: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome.
Example:
To illustrate the method, let us say we have five employees: Mr. Abbott, Mr. Barnes, Mr. Cox, Mr. Drew, and Mr. Eliot. We list their names on the left-hand side of the sheet. We compare Abbott with Barnes on whatever criterion we have chosen, say, present value to the organisation. If we feel Abbott is more valuable than Barnes, we put a tally beside Abbott's name. We then compare Abbott with Cox, with Drew, and with Eliot. The process is repeated for each individual. The man with the most tallies is the most valuable person, at least in the eyes of the rater; the man with no tallies at all is regarded as the least valuable person.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes.
Select a Performance Monitoring System
The performance monitoring system that you select must be in line with the organisation's policies and procedures for performance assessment, so it is highly likely that you will have a preferred system with pro forma templates and appraisal documents which will guide you through each step of the process.
Communicate the Performance Monitoring Systems
Once you have good Key Performance Indicators defined, ones that reflect your organisation's goals, ones that you can measure, what do you do with them?
You use Key Performance Indicators as a performance management tool. KPIs give everyone in the organisation a clear picture of what is important, of what they need to make happen. You use that to manage performance. You make sure that everything the people in your organisation do is focused on meeting or exceeding those Key Performance Indicators.
You also use the KPIs as a carrot. Post the KPIs everywhere: in the canteen, on the walls of every conference room, on the company intranet, even on the company web site for some of them. Show what the target for each KPI is and show the progress toward that target for each of them. People will be motivated to reach those KPI targets.
Once you have determined the KPIs for your department or business unit and ensured that they are aligned to the organisational goals, you can assign a numerical value to your team members’ performance in various categories, based on the pre-determined performance outcomes and criteria. This simplifies performance measurement and monitoring and ensures that you have a factual, objective and easily quantifiable basis to work from when giving the employee feedback on his/her performance.
Set up the System for Monitoring Performance against Standards
Once the system for monitoring performance has been chosen, the standards have been agreed by the team members and these agreements have been documented, you need to formalize the agreements by putting the system in place according to your organisation’s policy and procedures.
Formative Assessment 2: SO2 EEK2 & 3
3. PREPARE FOR A PERFORMANCE REVIEW OF A TEAM MEMBER
Specific Outcome 3 
Assessment Criteria 
The arrangements for the performance review are agreed with team member, including the time, place and nature of the review. 
Preliminary assessment of performance against the agreed standards is conducted using monitoring systems. 
Information gathered during the preliminary assessment is documented to be available for future reference. 
Methods for giving constructive feedback are identified that make provision for reporting positive and negative findings. 
Documents to be used during the review are prepared in accordance with the entity's policies and procedures. 
Preparing for a Performance Review of a Team Member
Craig, Beatty and Baird (1986) suggest an eight-stage performance appraisal process[footnoteRef:1]: [1: Source: Adapted from www.fao.org/docrep/W7505E/w7505e06.htm]
Establish standards and measures
The first step is to identify and establish measures which would differentiate between successful and unsuccessful performances. These measures should be under the control of the employees being appraised.
The methods for assessing performance should be decided next. Basically, management wants to:
· Know the behaviour and personal characteristics of each employee
· Assess their performance and achievement in the job.
There are various methods available for assessing results, behaviour and personal characteristics of an employee. These methods can be used according to the particular circumstances and requirements.
Communicate job expectations
The second step in the appraisal process is communicating to employees the measures and standards which will be used in the appraisal process. Such communication should clarify expectations and create a feeling of involvement.
Plan
In this stage, the manager plans for the realisation of performance expectations, arranging for the resources to be available which are required for attaining the goals set. This is an enabling role.
Monitor performance
Performance appraisal is a continuous process, involving ongoing feedback. Even though performance is appraised annually, it has to be managed 'each day, all year long.' Monitoring is a key part of the performance appraisal process. It should involve providing assistance as necessary and removing obstacles rather than interfering. The best way to effectively monitor is to walk around, thus creating continuous contacts, providing first-hand information, and identifying problems, which can then be solved promptly.
Appraise
Feedback
After the formal appraisal stage, a feedback session is desirable. This session should involve verbal communication, listening, problem solving, negotiating, compromising, conflict resolution and reaching consensus.
Make decisions
On the basis of appraisal and feedback results, various decisions can be made about giving rewards (e.g., promotion, incentives, etc.) and punishments (e.g., demotion). The outcome of an appraisal system should also be used for career development.
Develop performance
The last stage of performance appraisal is 'development of performance,' or professional development, by providing opportunities for upgrading skills and professional interactions. This can be done by supporting participation in professional conferences, workshops, training course, through coaching, or by providing opportunities for further study. Such opportunities can also act as incentives or rewards to employees.
In 1984 the Institute of Personnel Management identified the following eight functions that performance reviews ought to fulfil:-
Evaluation - to enable the organisation to share out financial and other rewards 'fairly'
Auditing - to discover the work potential, both present and future, of individuals and departments
Constructing success plans - for human resources, departmental and corporate planning purposes
Discovering training needs - by exposing inadequacies and deficiencies which could be remedied by training
Motivating staff - to reach organisational standards and objectives
Developing individuals - by offering advice, information, praise or sanctions
Improving standards - and thus performance
Checking the effectiveness - of personnel procedures and practises
Effective performance reviews require both parties to come together in an atmosphere of openness and trust to work positively towards finding out:
What the member of staff has done over the period of time;
What improvements could take place;
What future ambitions both the organisation and the staff member have for the employee,
Where there are development needs, and
How to meet those development needs through a variety of options, one of which is formal training.
The key elements for an effective performance review / appraisal are:-
Preparation - by both the manager and the member of staff
Factual information and evidence - of past performance, both positive and negative
Privacy - uninterrupted discussion time
Create agreed action plans - for follow-up after the meeting
Agree main tasks and targets for the coming period
Once you have agreed a time, place and format for the performance review with the employee you can start to measure the actual performance.
Agree the Arrangements for the Performance Review
It is important to prepare for the performance review session. You need to agree with the employee:
a time
format for the performance review with the employee
When setting a date for an appraisal interview with a member of staff it is therefore important for the manager to state which of the above functions the interview will fulfil and where the emphasis of the discussion will be focused. It is unproductive if the manager wants to focus primarily on improving standards when the member of staff wants to talk about training needs. Both will end up frustrated at the outcome of the interview
Ensure that the employee fully understands the process and what is expected from him/her. An employee also needs to know the following:
what factors will be used in the performance appraisal
what standard will be used to measure his performance
who will conduct the appraisal
when the appraisal will be done
what kind of feedback can he expect
what training assistance the company will provide to help improve performance
if the employee can add his own comments to the appraisal and when
what recognition(s) exist for above average performance
Conduct the Preliminary Assessment of Performance
Leaders collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.
Computers give leaders direct access to real time, unaltered data and information. On line systems enable leaders to identify problems as they occur. Database programs allow leaders to query, spend less time gathering facts and be less dependent on other people. Leaders have access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualise and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic or computer-driven control systems. Impersonal measurements can count, time and record employee performance.
Compare Measured Performance against Established Standards
Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the leader to a problem.
The possible outcomes of the performance measurement would be:
Excellent performance: Excellent performance will be rewarded in terms of the stipulations of the organisation’s remuneration policy and strategy.
Sufficient performance: Reward for sufficient performance, if any, is determined by the organisation’s remuneration policy and strategy.
Insufficient performance: Insufficient performance is addressed by launching a formal process of corrective actions as prescribed in the Code of Good Practice and as contained in the Labour Relations Act. Your organisation will most likely have a complete policy and procedure for the management of poor performance
Document the Information Gathered in the Preliminary Assessment
This stage involves documenting performance through observing, recalling, evaluating, written communication, judgment and analysis of data. This is putting together an appraisal record.
Identify Methods for Giving Constructive Feedback
In preparing to give feedback to the employee, you would have to ensure that you understand the process of taking corrective action.
The leader must find the cause of deviation from standard. Then, he or she takes action to remove or minimise the cause. If the source of variation in work performance is from a deficit in activity, then a leader can take immediate corrective action and get performance back on track. Also, the leaders can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient, however basic corrective action is the more effective
While it is acceptable to provide positive feedback publicly, you should discuss negative performance in private to avoid embarrassing your employees.
Feedback is a vital portion of the coaching process. It can help an employee improve his or her performance and reinforce an individual’s positive actions. The best time to provide feedback is when you notice a poor or incorrect performance in progress or immediately after an employee’s positive action. You have a better opportunity to reinforce the behaviour by discussing it immediately rather than waiting for a later date.
Positive feedback
Positive feedback lets an employee know that others have noticed his or her quality work. When you provide positive feedback, you reward your employee with praise and reinforce the behaviour you want the employee to maintain.
Positive feedback can be presented during a review session, in a meeting, or after you observe your employee’s good performance. When providing the positive feedback, describe the behaviour you want to reinforce. While descriptive praise makes people feel good about themselves and their work, its primary purpose is to make sure the employee recognises and repeats the positive behaviour.
Constructive feedback
As a coach, it is your responsibility to provide constructive feedback to help an employee improve his or her performance. Constructive feedback should be presented immediately after a poor performance. The sooner you discuss the issue, the better chance the employee has to understand the problem and correct his or her behaviour.
Constructive feedback typically deals with an employee’s poor performance. Thoroughly explaining how the individual’s poor performance or behaviour is detrimental can help the employee take responsibility and understand exactly how he or she hindered productivity. You can then use your coaching skills to teach the employee how to improve performance or behaviour. Constructive feedback should be provided privately, so the employee will not feel embarrassed about his or her performance.
Prepare the Documents to be used during the Review Session
In most performance management systems both the employee and the manager would need to prepare the performance management / performance appraisal documentation before the performance review interview. Ensure that you and the employee both use the correct documentation and prepare for the interview effectively.
Paperwork is not an end in itself, but it is essential to have written records of the appraisal to provide a feedback to employees and to allow more senior managers to monitor the effectiveness of appraisals and the performance management system. The design of forms will depend on the nature of the organisation, the objectives of the system and the employees to be appraised. However, most performance management forms should contain provision for:
basic personal details such as; name, department, position, length of time in the job
job title
job description
a detailed review of the individual's performance against a set of job related criteria and standards
an overall performance rating
general comments by the manager doing the appraisal and a more senior manager
comments by the employee
Formative Assessment 3: SO3 EEK4
4. CONDUCT A PERFORMANCE REVIEW INTERVIEW
Specific Outcome 4 
Assessment Criteria 
The review is conducted in accordance with the arrangements previously agreed with the team member. 
Feedback provided to the team member is relevant and fair and communicated in a constructive and supportive manner. 
Findings on positive and negative aspects of the member's performance are recorded accurately, fairly and honestly for report back and follow-up. 
An action plan to address performance gaps and build on positive performance is agreed upon with the employee. 
Agreed actions are documented and signed by both parties. 
Conducting a Performance Review Interview
Most of us have at least second-hand experience of the poorer kinds of performance review meetings. Typically, these involve one-way imposition of a manager’s opinion on an employee, destructive rather than constructive criticism, and surprises in the form of unpleasant events being resurrected from the past or sudden decisions made about the future.
If employee development is even discussed it’s either minimal or prescriptive, the employee’s preoccupation being with getting a good rating rather than revealing learning needs. Clearly, whatever else it may achieve, this kind of performance review creates ambiguity and tension, blocks effective communication and numbs any sense of pride or achievement.
This situation is hardly desirable for an organisation that values effectiveness in its employees. Fortunately, it is possible to operate an performance review meeting that is virtually free of these failings. The purpose of this section is to give you the skills to avoid running a meeting that make performance reviews what one commentator in HR Magazine described as “a plague, an affliction to be purged from the Earth”!
The following guidelines could assist a manager in conducting an effective performance review interview:
Keep the appointment - Appointments for performance evaluation meetings should not be broken unless it is absolutely unavoidable. The employee should receive a full explanation when the meeting’s timing is changed.
Ensure that both you and the employee are prepared - From a manager’s standpoint, without effective preparation the performance review can meander through important issues without achieving the necessary results.
For the employee, the review meeting is not a time for surprises. He or she should already know about your concerns from day-to-day coaching and from your request that the employee prepare for the discussion.
Set aside plenty of time - Ensure that the time, date and location are mutually convenient. Be sure that you allocate sufficient time for the meeting. Most performance review meetings last at least one hour, while others can run as long as two hours or more. If you wince when reading this, consider that most people work at least 1,920 hours a year. Several hours a year for a major performance review is hardly a lot to expect!
It is undesirable to have to cut short a performance review meeting that runs long due to another commitment you have previously made. If the meeting must end, schedule a specific time to reconvene.
Do not allow interruptions - Ensure you select a meeting location in which you will not be disturbed. Make it clear to all other employees that interruptions are not permitted. Hold all phone calls or divert them to voice-mail. Constant interruptions only stress to an employee that you do not regard the meeting as particularly important.
Create a non-threatening atmosphere - Avoid public places that might discourage a free and open dialogue. Consider moving out from behind your desk and sit alongside the employee if this is possible. Alternatively, use a circular table. Both you and the employee will benefit from the positive and supportive atmosphere that something as simple as room set-up can create.
Conduct the Review in Accordance with the Agreed Arrangements
Prior to the appraisal review meeting, the employee and the leader should prepare written evaluations. The leader follows the steps in the performance review meeting.
Step 1: Communicate the evaluation. Begin with a quick review of the rating. Ratings should include results of performance, as well as motivation, effort and cooperation. Give enough attention to what went right. Start with exceeds. Emphasise where, how and why improvement is needed.
Step 2: Resolve any misunderstandings. Share the discussion with the employee. Give the employee the opportunity to respond to your appraisal. Listen without interruption. React to employee's feedback non-defensively. Use concrete examples to describe performance. Acknowledge that you are receptive to the employee's point of view. Make sure the employee understands your complaint before proceeding further.
Step 3: Seek acceptance of the rating. Ask the employee, "Can you accept this rating?"
Step 4: Identify areas for improvement. One of the goals of performance appraisal is to provide a means of giving feedback to a employee concerning ways to improve job performance. Discuss goals toward which the employee might work. Agree on specific targets to meet in the period ahead. Review what you can do to help.
Step 5: Secure commitment to future goals. Try to focus the employee on the future rather than on the past.
Step 6: Document all proceedings and submit a report if required.
Step 7: End on an Upbeat Note. Summarise the accomplishments of your discussion. Many evaluation meetings fail because the participants have differing perceptions about exactly what was achieved and agreed. Be positive about the future. For example:
“Let’s restate what we agreed upon...”
“I’m feeling good about what we discussed...”
Even if the employee has agreed to the goals, it is important to have them say so one last time. Ask, almost offhandedly, a question such as “Do you foresee any problems achieving what we have discussed?” This offers your employee one last chance to raise anything they feel uncomfortable over and you can negotiate again before the meeting ends.
Performance Interview Checklist
The following checklist can be used by the manager when doing the performance review interview:
Did I …
Purpose and structure of interview explained
Agenda agreed
Interviewer listening
Development/training needs identified
Action plan agreed
Key points summarised
Positive finish
Employee thanked
Making Performance Judgements
The performance appraisal represents a legal communication to an employee and should be supported by objective reasoning. Appraisal judgments can be objective or subjective:
Objective factors are observable and measurable results. They include quantities, errors and attendance records.
Subjective factors are opinions. They are difficult to measure or document and invite bias or charges of bias. Included, as subjective factors, are personality traits, such as dependability, initiative and perseverance.
To remain objective, the manager double checks ratings to be sure he or she doesn't favour one employee or make unsupported judgments. Supported judgements have documented critical incidents of employee performance to illustrate ratings.
Rater Errors
Several issues must be kept in mind by whoever is undertaking the measurement of employee performance, such as:
Unclear Standards: Whether performance is evaluated according to goal achievement, or value added, an ever-present problem is inconsistency of standards between raters. The problem lies in the way that different people define standards; “good”, “average” and “fair” do not mean the same things to everyone. The solution is to develop and include descriptive phrases that define the language the rater is required to use. This specificity results in performance evaluations that are more consistent and more easily explained.
Halo Effect: The halo effect occurs when a manager’s rating of a subordinate on one characteristic biases the way that other characteristics are rated, e.g. if the employee has successfully added value to the organisation through the development of higher skills, he may be rated satisfactory overall, even if he has not added value in other areas that were agreed upon. Likewise, failure in one area may negatively influence an overall rating. Being aware of this problem is a major step toward avoiding it.
Central Tendency: Some raters find it difficult or unpleasant to evaluate individual employees higher or lower than others, even though their job performance may reflect substantial differences. In this case, they may tend to rate everyone as average, resulting in a central tendency. This problem can also occur if leaders are unfamiliar with the work of the employee, if they lack leadership ability, or if they fear a reprimand for rating too leniently or too strictly. The solution to this problem lies in finding the reason for applying a central tendency and then counselling the leader.
Leniency or Strictness: Inexperienced leaders often appraise performance too leniently and rate en employee highly because they feel it is the easiest route to follow. In some cases the employees may not deserve the rating. In additions, some leaders may feel that they could gain in popularity if they use a lenient approach. However, there could be individuals in the department whose performance has been above average and who do deserve a higher rating. This could result in feelings that the evaluation has been unfair. Strictness could occur if the leader believes that no one has achieved the standards required. In both the above cases, counselling the leader is probably the best method of dealing with the problem.
Recency: Raters can easily be influenced by recent incidents in the employee’s performance. This tends to influence the leader’s overall perception of the individual’s performance. One way of combating this would be to hold more frequent and regular performance evaluations.
Bias: Leader bias may occur when the rater is influenced by characteristic