Evaluation Performance Appraisal

A performance appraisal, performance review, or (career) development

discussion is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor. A performance appraisal is a part of
guiding and managing career development. It is the process of obtaining,
analyzing, and recording information about the relative worth of an employee to
the organization. Performance appraisal is an analysis of an employee's recent
successes and failures, personal strengths and weaknesses, and suitability for
promotion or further training. It is also the judgment of an employee's
performance in a job based on considerations other than productivity alone.
In real life, neither the employees nor the managers like performance
appraisal. Some employees view performance appraisal as being more valued
by the top management than by themselves and their supervisors. Some
managers do not like to do performance appraisals because it makes them feel
guilty. As writers of performance appraisals, mangers are concerned that they
may be inaccurate, be criticized for written grammar and spelling, say something
illegal about the employee. Other managers are afraid of employees’ reactions to
ratings.

Purposes of Evaluation Performance Appraisal

The primary objectives of performance appraisal are to maintain or

improve employee performance to enhance the development of the employees.
As a result of the performance appraisal, the employee should know how he or
she has been performing and what he or she can expect in the coming months
(McConnell, 1993). The standards use to evaluate the performance must be
clear, objective and known in advance by the employees being evaluated.

Performance appraisal is a nurse manager’s most valuable tool in

controlling human resources and productivity. The performance appraisal
process can be used effectively to govern employee behavior in order to produce
goods and services in high quality and volume. Nurse mangers can also use the
performance appraisal process to govern corporate direction in selecting,
training, doing career planning for, and rewarding personnel. In addition to being
used for promotions, terminations, selections and compensation, performance
monitoring has been found to make employees effective. It is a managerial tool
that can facilitate performance levels that achieve the company’s mission and
objectives.

Appraisal systems are needed to meet legal requirements including those

for standardized forms and procedures clear and relevant job analysis and
trained raters. When they do not, disciplinary actions including termination do not
stand up in court.
Criteria for a Performance Appraisal System

The choice for a performance appraisal system for a health care facility is
a complex decision. The evaluation system that is selected must exhibit a
number of characteristics. It must be flexible and capable of balancing the
technical, social and environmental aspects of the organization and their
interaction with one another. By accomplishing this balance, the goals of the PAS
will assist in the achievement of the goals of the organization with respect to the
specific administrative goals, the appraisal system must accurately assess
employee performance to ensure that the following interrelated goals are
accomplished;

 All employees must be included in the system design and implementation

process.
 The system must produce equitable compensation and career
development decisions.
 The system must motivate the employees to perform well and develop
their capabilities.
 The system must be consistent with the rational planning of the human
resource requirement of the organization.
 The system must promote constructive communication between the
manager and employees.

All performance evaluation should be based on appraisal standards of

performance. This includes job descriptions or policies and procedures. Job
descriptions contain statements that describe the duties for which the employee
is responsible and should be up to date and clearly written to avoid ambiguous
interpretation. Policies and procedures should be taught as part of the employee
orientation processes and relate to patient care activities as well as to timeless
absenteeism and participation in agency committees.

Standards are authoritative statements that describe a level of care or

performance common to the profession of nursing by which the quality of nursing
practice can be judged and that reflect the values of the profession (Dochtman &
Grace, 2001, p. 235). Standards of practice reflect the expectations for the
behavior of professional organizations such as the American Nurses’
Association, Standards of Care, which reflect expected processes and outcomes
that should occur for individual patient may be developed by health care
agencies of by regulatory groups.

Characteristics of an Effective Performance Appraisal System

 The appraisal system has administrative support.

 Evaluation may be based on job description or other well defined criteria.
 Clear criteria exist for the evaluation used.
  Employees know who will be evaluating them.
 Evaluation procedures are consistently applied.
 Evaluations are conducted in a timely fashion.
 Evaluators are well trained in the use of appraisal system.
 The appraisal interview is a two way communication.
 All individuals know the related rewards or disciplinary action.
 The final disposition of the evaluation is known to the employee.

Steps in Conducting a Systematic Performance Appraisal

1. Identify Key performance Criteria

Development of key performance criteria should be based on a

comprehensive job description and undertaken in consultation with the workers.
Four dimensions of performance can be considered.

Competencies Knowledge, skills and abilities relevant

to performance
Behaviors Specific actions conducted and / or
tasks performed
Results and Outcomes Outputs, quantifiable results,
measurable outcomes and
achievements, objectives attained
Organizational citizenship behaviors Actions that are over and above usual
job responsibilities.

2. Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal

measures should be tailored to the specific job or “job family” (i.e., groups of
similar jobs). An evaluation of factors in the work environment which help or
hinder performance is also recommended. This ensures that realistic
expectations are set for workers’ performance, and is also likely to increase the
perceived fairness and acceptability of performance appraisals.

3. Collect performance information from different sources

Traditionally, it has been the sole responsibility of managers / supervisors

to assess performance. However, other organizational members (e.g., clients,
coworkers, subordinates) can be a valuable source of information as they are
likely to have exposure to different aspects of a worker’s performance. Collecting
information from multiple sources can increase the accuracy of performance
evaluation (i.e., reduce bias), and increase workers’ perceptions of fairness.
 3.1 Different types of performance appraisal

a. Manager / supervisor appraisals

Managers / supervisors play a central role in the appraisal process, and should
always be included as one of the main appraisers. In essence, managers and
supervisors have two roles in performance appraisal:

1. “Judge”: assessing performance

2. “Coach”: providing constructive feedback and identifying areas for
improvement.

Performing both roles simultaneously can be difficult. Workers may be

reluctant to admit areas for improvement if performance assessment is linked
with desired outcomes such as pay, promotion or opportunities to work in desired
areas. One solution is to separate the judge and coach roles by conducting
separate appraisal meetings.

b. Self appraisals
The process of evaluating one’s own performance can help to increase
workers’ commitment to the appraisal process, perceptions of appraisal fairness,
and satisfaction with the appraisal process. Self appraisal can also be useful for
identifying areas for development. Not surprisingly, self appraisals are usually
biased towards leniency. Strategies to increase the accuracy of self appraisals
include:

• Using clear definitions of performance criteria linked to specific,

observable behaviors
• Informing workers that their ratings will be checked and compared to
other sources of appraisal (i.e., for accuracy)
• Ensuring workers receive regular feedback on their performance.

It is recommended that self appraisals are used for professional

development purposes, rather than for making administrative decisions (i.e., pay
increases, promotion).

c. Coworker appraisals
Coworkers can provide valuable feedback on performance, particularly
where teamwork occurs. Coworkers are often aware of different aspects of a
worker’s performance that managers / supervisors may not have the opportunity
to observe. In addition, as there is usually more than one coworker who rates a
worker’s performance, their evaluations tend to be more reliable. Coworker
evaluations, however, may be biased towards those individuals most well-liked in
an organization (i.e., friendship bias). Furthermore, coworker appraisals may
have a negative impact on teamwork and cooperation if workers are competing
with one another for organizational incentives and rewards. It is recommended
that coworker appraisals are used for professional development rather than
administrative decisions.

d. Subordinate appraisals
Subordinates are a valuable source of information regarding particular
aspects of a supervisor or leader’s performance such as communication, team-
building or delegation. Subordinates can provide feedback to help managers /
supervisors develop their skills in these areas. The focus should be on aspects of
managerial performance that subordinates are able to comment upon. This
source of appraisal may only be appropriate in larger organizations where there
are sufficient subordinates to allow anonymity.

e. Client appraisals
Clients may also offer a different perspective on a worker’s performance,
particularly for jobs that require a high degree of interaction with people. For
example, client appraisals can be a valuable source of feedback regarding the
quality of service provision (e.g., the quality of interaction, degree of empathy,
level of support, degree of professionalism)

Different Tools used in performance appraisals

1. Critical incident method - The critical incidents for performance appraisal is a

method in which the manager writes down positive and negative performance
behavior of employees throughout the performance period.

2. Weighted checklist method - This method describe a performance appraisal

method where rater familiar with the jobs being evaluated prepared a large list of
descriptive statements about effective and ineffective behavior on jobs.

3. Paired comparison analysis - Paired comparison analysis is a good way of

weighing up the relative importance of options.
A range of plausible options is listed. Each option is compared against each of
the other options. The results are tallied and the option with the highest score is
the preferred option.

4. Graphic rating scales - The Rating Scale is a form on which the manager
simply checks off the employee’s level of performance.
This is the oldest and most widely method used for performance appraisal.

5. Essay Evaluation method - This method asked managers / supervisors to

describe strengths and weaknesses of an employee’s behavior. Essay evaluation
is a non-quantitative technique. This method usually use with the graphic rating
scale method.

6. Behaviorally anchored rating scales - This method used to describe a

performance rating that focused on specific behaviors or sets as indicators of
effective or ineffective performance.
It is a combination of the rating scale and critical incident techniques of employee
performance evaluation.

7. Performance ranking method - Ranking is a performance appraisal method

that is used to evaluate employee performance from best to worst.
Manager will compare an employee to another employee, rather than comparing
each one to a standard measurement.

8. Management By Objectives (MBO) method - MBO is a process in which

managers / employees set objectives for the employee, periodically evaluate the
performance, and reward according to the result.
MBO focuses attention on what must be accomplished (goals) rather than how it
is to be accomplished (methods)

9. 360 degree performance appraisal - 360 Degree Feedback is a system or

process in which employees receive confidential, anonymous feedback from the
people who work around them. This post also includes information related to
appraisal methods such as 720, 540, 180…

10.Forced ranking (forced distribution) - Forced ranking is a method of

performance appraisal to rank employee but in order of forced distribution.

4. Conduct an appraisal interview

The two central purposes of the appraisal interview are to:

4.1. Reflect on past performances to identify major achievements, areas

for further improvement, and barriers / facilitators to effective performance

4.2. Identify goals and strategies for future work practice.

The appraisal interview should be a constructive, two-way exchange

between the supervisor and worker, with preparation for the interview done by
both parties beforehand.

Performance Appraisal Interview: Guide for the Manager

Before the interview

• Help workers to become familiar and comfortable with talking about

their performance by engaging in regular, informal communication on work
progress, potential obstacles and issues, possible solutions and
assistance

• Encourage workers to prepare – workers should be encouraged to

 review their own performance before the interview

• Do your own preparation – plan ahead. Draft a list of the issues that you want to
address with the worker (i.e., strengths and weaknesses of performance,
strategies to improve performance). Give specific examples of the worker’s
performances that you want to highlight.

During the interview

• Encourage worker participation – start by inviting the worker to share their

views about their performance

• Begin with positive feedback to put the worker at ease

• Make it a two-way discussion

• Set goals mutually – ensure workers participate in determining specific,

challenging but attainable goals for future work performance.

• Ensure that there is a clear agreement on performance objectives and the

evaluation criteria for the next year.

• Keep written records of the appraisal interview on which both parties have
“signed off”.

After the interview

• Coach workers regularly – provide frequent feedback to help workers improve

their performance.

• Assess progress towards goals frequently – periodic reviewing of progress

towards goals helps keep behavior on track and enhances commitment to
effective performance.

• Relate rewards to performance – by linking appraisal results to employment

decisions such as promotions and salaries, workers are more likely to prepare
for, participate in, and be satisfied with the appraisal system.

5. Evaluate the appraisal process

The performance appraisal process should undergo regular review and

improvement. For example, focus groups or surveys could be conducted to
gauge workers’ perceptions of the appraisal process. A successful performance
appraisal process should demonstrate a change in both the ratings of workers’
performance and aspects of the work environment that impact upon work
performance.
Implementing and Maintaining a New Performance Appraisal
System

Implementation

1. Pilot Testing

A group should be selected that is large enough to provide a representative

sampling. A measure of the effectiveness of that group’s present appraisal
program should be developed to serve as a basis against which to evaluate to
test the program. After a reasonable time operating under the test program, an
evaluation should be made to determine if it is better than the prior one and what
happens changes, if any, should be made to improve it.

2. Announcing

When an acceptable program has been designed and tested, it needs to be

announced to all involved by top facility management. The announcement should
include communication with employees who will be covered by the new program
as well as managers who will be applying it.

3. Training

For a program to meet its objective, the managers need to be trained for its
use. In general, training would cover the basic procedures material and should
concentrate on the actual preparation of appraisals using the forms involved.
Trainings can greatly improve manager’s confidence in a program by giving them
an opportunity to see it in action and to discuss any reservation or
misconceptions that they may have.

Maintenance

Staff work is not complete with the implementation of the program. New
concepts are continually being developed on appraisal methods, and department
needs change. Therefore, to maintain a program that is current and that meet
departmental needs, some staff unit must assume responsibility for its
maintenance. An important part of this function will be to provide channels for
feedback from managers on problems encountered in working with the program.
From this information, modifications can be made that will result in a program
that meets departmental needs and is understood by both the managers and the
employees affected by it.
 Promotions

The word promote is derived from the Latin word “ promovere” meaning to
move forward. Promotion also refers to a change for better prospects from one
job to another. It refers to advancement in rank and status, usually accompanied
by increase in emoluments. The factors which are considered by employees as
implying promotion are:

a. an increase in job prestige

b. an increase in salary
c. an upward movement in the hierarchy of jobs
d. additional supervisory and responsibility
e. a better future

The presence of any or all of these factors is considered as promotion by

the employees. Whenever possible, career structure for all cadres should provide
the opportunity for all workers to gain promotion.

Career Ladder Mobility

Multirole Promotional Ladder

Most health care facilities have traditionally awarded promotional

opportunities only to those professional nurses who assumed administrative or
teaching roles. To overcome the inflexibilities of the traditional promotion
systems, the multi promotional ladder was developed and was based on the four
elements of professional nursing practice – clinical practice, administration,
research, and education.

In terms of the institution’s needs and the skill level brought to the job by
an individual nurse, it was still possible to classify all nurses with in their basic
system regardless of the job to be performed. Since the system depended not on
the job titles but rather on graduated levels of skills an infinite number of job
classifications could exist.

Dual Career Pathway

A dual career pathway allows the professional nurse to pursue a career in

either clinical or administrative nursing and receive equal recognition for
whichever option chosen. The clinical ladder concept rewards nurses for their
role in staff orientation, in service, and patient education by providing an
opportunity for clinical promotion instead of traditional administrative promotion.
Clinical Ladders

This program was designed by representatives from all levels of the

professional nursing staff. Based on the Benner Model, From Novice to Expert,
the five-step program focuses on the clinical practice of nurses and seeks to
designate nurses according to their competence and achievement. The program
reflects the professional commitment of staffs and recognizes their excellence in
providing quality nursing care.
Clinical ladders are also a horizontal development system based on
specific criteria used to develop, evaluate, and promote nurses desiring and
intending to remain at the bedside. A clinical ladder should:

1. Improve the quality of patient care.

2. Motivate staff in terms of:
a. Job proficiency and Expertise
b. Pursuit of education which is an important factor in mobility
c. Development of goals
3. Provide methods of objectives and measurable performance evaluation
and reward clinical competence for the purpose of advancement.
4. Promote retention in the clinical area and reduce turn over rates.

A clinical ladder program requires considerable deliberation and planning.

A nursing unit cannot develop clinical ladder program on isolation. The entire
nursing department and facility administration must be involved and committed to
its development and improvement.

Characteristics of Clinical Ladders

1. Clinical ladders have various levels and titles. There may be multiple
tracks that combine clinical and career ladder, concepts or there may be a
single track related to direct patient care. The tracks provide more that one
level and from level to level there are requirements for increasingly
complex skills and increasing use of the nursing process.
2. The nurse initiates the advancement process, requesting promotion and
review and gathering documents to support the claim of being able to
perform at the next level.
3. There must be a method of evaluation to assess performance at that level
based on established criteria. A mechanism must be included for
advancement, staying at the same level and being demoted.
4. There must be a reward system that offers incentives to enter a program.
5. Each level must be defined by behavioral objectives that are realistic and
achievable. Performance is measured by established criteria.
6. Advance must be by choice or opportunity.

Promotion System/ Procedure

 Each grade with in a career structure should have clearly laid down duties
and responsibilities in the job description together with a specification of the
qualification and experience required of the post holder. Promotions in all cases
should be based on whether the individual meets the requirements as specified
in the job description. Nurse manager should develop specific promotion policies
with input from all categories of professional nurses and the human resources
department. One method of overcoming biases in the promotion system is
employees can apply for promotion. This procedure can help the nursing director
to discover employees who are interested in advancement. It also allows staff
member to assess their own readiness for upper level positions. The system
should include the following:

1. All vacant positions are posted.

2. All interested applicants should apply for promotion through human
resource department or nursing service administration.
3. The administration should prepare promotion rosters. Best qualified
candidates should be on top of the list.
4. Applicants should be interviewed and rated by the same set of criteria.
5. The best qualified candidate should be selected for promotion.
6. The results of the promotion process should be announced. Those not
selected should be notified and counseled individually rather than learn
about being passed over by hearing about or seeing the list of those
promoted.
7. The promotion system must be fair and be perceived as fair by
professional nurses.

An effective promotion system will provide the same opportunity for proper
and equal ability when they apply and during their interviews. Non promoted
employees should be allowed to ventilate their disappointment.

Promotion Trauma
Promotions are becoming more competitive because of the increased
number of qualified competitors. This lack of future career opportunities causes a
great deal of stress to the employee.
Darling and McGrath wrote that nurses experience much trauma when
moving upward from clinical to managerial nursing. They are unaware of the
transition process involved in a promotion, including the fact that their social and
professional ties with other clinical nurses are cut. They take on more
responsibilities and burdens and soon feel isolated and alone. While they gain
visibility and prestige, they get complaints instead of appreciation from their staff.

Preventing Promotion Trauma

To prevent promotion trauma, supervisor can plan a transition program

that will alert promotees to the changes in relationship that will occur. Such a
program will help them from blaming their difficulties on personal failings. A
transition program should include clear role description and expectations, clear
job descriptions and classes in management to help gain the knowledge and
skills needed. A management development program will keep clinical nurses
promoted to manger positions from bailing out at the second stage.

Retirement

Retirement is the point where a person stops employment completely. A

person may also semi-retire by reducing work hours. Many people choose to
retire when they are eligible for private or public pension benefits, although some
are forced to retire when physical conditions don't allow the person to work any
more (by illness or accident) or as a result of legislation concerning their
position. In most countries, the idea of retirement is of recent origin, being
introduced during the 19th and 20th centuries.
Nowadays most developed countries have systems to provide pensions
on retirement in old age, which may be sponsored by employers and/or the state.
In many poorer countries, support for the old is still mainly provided through the
family. Today, retirement with a pension is considered a right of the worker in
many societies, and hard ideological, social, cultural and political battles have
been fought over whether this is a right. In many western countries this right is
mentioned in national constitutions.

Decisions for Retirement

There is a major focus in retirement research on factors that predict or

influences the decision to retire. For the individual, two variables that are
important in deciding to retire are important in the quality of retired life; health and
finances. With these, retirement can be a valuable and enjoyable time in life.
Without them it might be much more burdensome.

Retirement Rituals

Status transitions are often accompanied by initiation rituals. In the case of

retirement, these rituals focus less on the entry into a new life stage than on the
termination of work or career. This reverse focus of retirement rituals testifies to
the ambiguity of retirement as a status and its attendant roles. Roscow (1994)
characterized retirement as a roleless role. While it is certainly not correct to
assume that retirees are no longer productive or active, it is true that the content
of retirement activities remains largely undefined and prescriptions for the retire
role are few.

Retirement Transition Process

Retirement is commonly viewed as an abrupt transition from employment

to unemployment at the precise time individuals meet pension eligibility. Yet
evidences suggests are considerably more complex. They evolve from a variety
of contextual influences and follow divergent pathways. Nowadays the transition
process of retirement is viewed from a life course perspective.

Retirement Experience

How well individuals adapt to retirement has been a focus of interest to

researchers as well as to the popular media. Yet answers to this question remain
vague and limited. Early research concentrated on the roles of retirees and post
retirement act as well as on characteristics on attributes that predict post
retirement well being. Many of these studies are tainted y conceptual and
methodological limitation. More recent research is grounded in a life course
perspective that stresses contexts, pathways and interlinked life spheres (Elder &
John, 2003)

References
Books:

Adams, G. A.,Beehr, T. A.,(2003). Retirement: Reasons, Processes, and

Results. Springer Publishing Company

Basavanthappa, (2003). Nursing Administration. Barnes and Noble

Ellis, J. R.,Hartley, C. L.,(2004). Nursing in Today's World: Trends, Issues &

Management. Wolter’s Kluwer Health

Rowland, H. S., Rowland, B. L., (1997). Nursing Administration Handbook.

Missouri: Jones and Barlett Learning

Swansburg, R. C., (1996). Management and Leadership for Nurse Managers.

Jones and Barlett Learning

Online References:

http://www.nceta.flinders.edu.au/pdf/TIPS/08-Perf_Appraisal.pdf
http://www.humanresources.hrvinet.com/paired-comparison-analysis/