In my corporate life I was very used to an annual grade on my performance appraisal. Indeed, many years on I can still remember some of the grades I got - I certainly don't remember my objectives or development plan items! The annual grade is very common but, of course, very controversial.
Commonly we see two sorts of grade. A numeric grade (1,2,3,4) or a narrative grade (Strong performer, Competent, Development required). What we see less commonality on is how this grade is determined.
In a forthcoming white paper on performance appraisals I will spend some time on the merits or otherwise of the annual grade. For now, I am simply looking to describe options for creating such a grade.
End of the form grade
Still the most common, there is a simple drop down box of options that the manager selects from.
Calulated average
Seemingly growing in popularity, we see grades calculated from other ratings on the annual performance review form, or built from grades in interim reviews across the year.
Suggested calculated average with override
A late entrant, but increasingly a request, is to calculate an average within the system and then give an option for the manager to override the calculation - normally with a forced narrative option to explain the discrepancy.
Forced distribution
All of the above options can be subject to a forced distribution (e.g. 20% of people will be an A, 40% will be a B, etc.). Some form of scoring drives this distribution which can be across the whole organisation or across departments.
360 degree feedback influenced
From scoring on 360 feedback, the annual performance review grade or evaluation is influenced or calculated.
Our view
I have to say our view is not set in stone here. In an ideal world I suspect we would avoid the annual grade - it can be distracting and it can be more controversial than it is useful. But, if you are going to run performance related pay (a debate in itself) then a grade is likely to form an element of the review process. I believe then that having followed a sensible process, managerial discretion is required on the grading. Whether that is assisted - through averaging - isn't actually that important.
With such an important topic area, training is the key to ensuring the managers' are able to apply the chosen process in a fair manner and in a way that achieves the performance appraisal process objectives.
Brendan
Commonly we see two sorts of grade. A numeric grade (1,2,3,4) or a narrative grade (Strong performer, Competent, Development required). What we see less commonality on is how this grade is determined.
In a forthcoming white paper on performance appraisals I will spend some time on the merits or otherwise of the annual grade. For now, I am simply looking to describe options for creating such a grade.
End of the form grade
Still the most common, there is a simple drop down box of options that the manager selects from.
Calulated average
Seemingly growing in popularity, we see grades calculated from other ratings on the annual performance review form, or built from grades in interim reviews across the year.
Suggested calculated average with override
A late entrant, but increasingly a request, is to calculate an average within the system and then give an option for the manager to override the calculation - normally with a forced narrative option to explain the discrepancy.
Forced distribution
All of the above options can be subject to a forced distribution (e.g. 20% of people will be an A, 40% will be a B, etc.). Some form of scoring drives this distribution which can be across the whole organisation or across departments.
360 degree feedback influenced
From scoring on 360 feedback, the annual performance review grade or evaluation is influenced or calculated.
Our view
I have to say our view is not set in stone here. In an ideal world I suspect we would avoid the annual grade - it can be distracting and it can be more controversial than it is useful. But, if you are going to run performance related pay (a debate in itself) then a grade is likely to form an element of the review process. I believe then that having followed a sensible process, managerial discretion is required on the grading. Whether that is assisted - through averaging - isn't actually that important.
With such an important topic area, training is the key to ensuring the managers' are able to apply the chosen process in a fair manner and in a way that achieves the performance appraisal process objectives.
Brendan
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