Which of the following is a developmental purpose of performance reviews?
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Share2 Nov 2022Performance reviews Understand the basics of performance reviews and how to ensure the process adds value to the organisation On this pageOn this page
IntroductionPerformance reviews, also called appraisals, form part of a holistic approach to managing performance. The value of annual reviews has increasingly been challenged in recent years in favour of more regular conversations, but even so, performance appraisal remains an important part of the performance management cycle. This factsheet outlines the elements of performance reviews and explores the role of line managers and the skills they require to carry out reviews. It looks at ways of measuring performance and the changing methods of gathering and giving feedback. See the full A-Z list of all CIPD factsheets. What is a performance review?Performance reviews are an important element in the broader set of processes that make up performance management. Their main purpose is to inform administrative decisions (such as on pay, bonuses, promotions or redundancy) and/or to support professional growth and improvement. They can also inform target setting. How are performance reviews changing?There’s been much debate over the last decade about whether ‘traditional’ approaches to appraisal are fit for purpose. Some have argued that performance management should be abandoned wholesale, but typically employers overhaul it rather than scrapping it entirely. Criticisms of traditional approaches to performance reviews are:
What is the evidence on performance reviews?Our evidence review Could do better? What works in performance management summarises the research. For example, there’s good evidence that it helps to give frequent and immediate feedback, and focus on strengths and development. The purpose of performance appraisalThere are two main uses of performance reviews:
Practitioners often assume that appraisal meetings should do both these things. However, research shows that they involve different cognitive processes and lead to different manager decisions, so it is best to focus on them separately. The purpose of a meeting or stage in the appraisal cycle should always be made clear. Assessing and measuring performancePerformance is often assessed through standardised metrics but can also draw on qualitative comments. Our evidence review People Performance explores how employers should understand and measure people performance at the individual and team level. The focus of performance measurementsSome jobs lend themselves much more readily to performance metrics than others. In some contexts, accurate and even real-time performance data are available on teams or individual employees: an example is a customer contact centre, where data on call length and outcomes can be recorded as the calls take place. In other contexts, what constitutes good performance may be defined more broadly and there may be longer timeframes – for example, in many project-based jobs. Not all measures focus on outcomes. They can also relate to employees’ behaviours and attitudes against an organisation’s values, or to their learning and development. Methods of assessing performanceIn some jobs, performance metrics can be calculated on an ongoing basis through management information systems. If reliable and relevant data can be collected, this can be a valuable source for performance reviews. Some employers go further, making this data available through real-time dashboards. An additional benefit of a live dashboard is that people or teams can adjust their effort or the focus of their work in response to changing demands, which is especially useful in time critical environments. A more subjective but sometimes more appropriate approach is for managers or their employees to given written feedback in their own words. This can be done through a questionnaire on aspects such as an employees’ contribution to the team, role development and effectiveness. See our evidence review People Performance for guidance. The right measures for the jobCollating data can be time consuming and distract from delivering work and making improvements. Performance measurements should thus be selected carefully to be relevant and useful. Employers should reflect on what types of performance they want to emphasise and managers should scope out what these constitute. There are three broad types:
Bias in performance ratingsPerformance measures need to be trustworthy as well as relevant if they are to be relied upon. Unfortunately, there’s a lot of potential for bias in performance ratings. For example:
A practice that is increasingly being stopped is ‘forced ranking’ or ‘guided distribution’ ratings – in which a fixed proportion of employees must be rated as high or low performers. Research suggests that it is likely to harm performance because employees tend to see them as unfair. Ratings accuracy can be increased in various ways, including:
Feedback and performance conversationsRegular feedback can support motivation and inform learning and development. It is vital that employees can contribute or respond to the feedback they receive, so it can make more sense to talk about ‘performance conversations’. These may go beyond employees’ recent performance to also cover challenges they have faced, practical support or development they need, and how their role and career may be developed. Feedback skillsOnce managers have their employees’ performance assessments, they should lead a two-way discussion with them of the results. Giving feedback requires well-developed people skills. These include:
The strengths-based approachA human tendency when considering how to improve is to focus on weaknesses or problem areas and try to fix them. However, as shown by our research Strengths-based performance conversations, it can be better to help employees build their strengths and replicate successes in other areas of their work. Strengths-based approaches tend to take a coaching style and be more future-focused, which may be part of the reason for their effectiveness. They don’t mean ignoring underperformance, but rather focusing on what’s already working well. A practical description of how managers can have strengths-based performance conversations is described by Kluger and Nir:
Check in: how useful was your appraisal?There’s strong evidence that it’s employees’ reactions to feedback, rather than the feedback itself, that influences future performance. So it’s crucial that employees see performance reviews as fair and useful. It is thus worthwhile checking in with employees afterwards to see if this is the case – either in a one-to-one conversation or a survey. 360 degree feedback360 degree or multisource feedback involves employees receiving ratings and feedback from a number of stakeholders, including colleagues and any reports they manage, as well as their own manager. This can give employees a fuller picture of their performance and a more objective basis for administrative decisions.
However, there is a risk that the process can be ‘gamed’. For example, reviewers may have an interest in showing colleagues in a good light, or alternatively have an axe to grind.
Some things that help are:
Further readingBooks and reportsARMSTRONG, M. (2017) Armstrong's handbook of performance management: an evidence-based guide to delivering high performance. 6th ed. London: Kogan Page. ASHDOWN, L. (2018) Performance management: a practical introduction. 2nd ed. HR Fundamentals. London: CIPD and Kogan Page. Visit the CIPD and Kogan Page Bookshop to see all our priced publications currently in print. Journal articlesCAPPELLI, P. and TAVIS, A. (2016) The performance management revolution. Harvard Business Review. Vol 94, No 10, October. pp58-67. Reviewed in In a Nutshell, issue 62. DENISI, A.S. and PRITCHARD, R.D. (2006) Performance appraisal, performance management and improving individual performance: a motivational framework. Management and Organization Review. Vol 2, No 2. pp253-77. HARARI, M.B. and RUDOLPH, C.W. (2017) The effect of rater accountability on performance ratings: a meta-analytic review. Human Resource Management Review. Vol 27, No 1, March. pp121-133. IQBAL, M.Z., AKBAR, S. and BUDHWAR, P. (2015) Effectiveness of performance appraisal: an integrated framework. International Journal of Management Reviews. Vol 17, No 4, October. pp510-533. KLUGER, A.N. and DENISI, A. (1996) The effects of feedback interventions on performance: a historical review, a meta-analysis, and a preliminary feedback intervention theory. Psychological Bulletin. Vol 119, No 2. pp254-284. CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR. Members and People Management subscribers can see articles on the People Management website. Download factsheet This factsheet was last updated by Jonny Gifford, Senior Adviser for Organisational Behaviour, CIPD A central focus of Jonny’s work is applying behavioural science insights to core aspects of people management. Recently he has led programmes of work doing this in the areas of recruitment, reward and performance management. Explore our related contentCIPD Learning Courses Learn how to effectively manage people to ensure organisational success in line with the principles championed by the CIPD. Our research explores the factors that make feedback effective in improving performance and how this can be put into practice by people professionals Factsheets Understand how to build an effective approach to performance management, including the tools that can support it Reports Our organisational field trial shows what difference strengths-based performance conversations can make in the UK public sector
People Management PM jobs Copyright © The Chartered Institute of Personnel and Development 2022. Incorporated by Royal Charter, Registered Charity no. 1079797 What is the main purpose of a performance review?A performance review is a formal assessment in which a manager evaluates an employee's work performance, identifies strengths and weaknesses, offers feedback, and sets goals for future performance.
What is the developmental purpose of a performance management process?The purpose of performance management—which is ultimately communication—is to improve your performance. Performance improves when individuals do good work that aligns to the business objectives. Individuals do good work when they know what is expected, and receive helpful feedback and critical resources.
What are the 4 purposes of performance appraisals?Increased job satisfaction, motivation and self-worth. Improved group performance. Opportunity to clarify expectations of individuals and teams, re-assess work goals and discuss what has worked well and what needs improvement. Improved quality of relationships with subordinates.
Which of the following is a purpose of performance appraisals quizlet?purpose of performance appraisal: Set performance standards (or goals) and communicate to the employee at the beginning of the appraisal cycle. Provide feedback to the employee.
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