The appraisal interview. An instrument of human resource management

Table of contents

1. Introduction
1.1. Motivation and goal of the work
1.2 Structure of the paper

2. Theoretical foundations of the employee appraisal
2.1. Classification of terms employee appraisal
2.2. Objectives of the employee appraisal
2.3. Components of the employee appraisal
2.3.1.Exchange of target agreements
2.3.2. Review or assessment
2.3.3. Performance appraisal
2.3.4. Exchange on cooperation within the undertaking
2.3.5. Exchange on employee development and promotion
2.4. Procedure of the employee appraisal
2.4.1. Preparation and appointment
2.4.2. Implementation
2.4.3. Documentation
2.4.4. Follow-up
2.5. Benefits of the employee appraisal
2.5.1. Benefits for the employee
2.5.2. Benefits for managers
2.5.3. Benefits for the Organization

3. Basics of conversation for executives
3.1. The special interview situation in the employee appraisal
3.2. Questioning technique
3.3. Active listening
3.4. I Messages
3.5. Feedback
3.6. Praise and recognition
3.7. Criticism

4. Conclusion

Bibliography

1. Introduction

1.1. Motivation and goal of the work

"Take care of the people, then the results take care of themselves." ¹

At present, more and more companies recognize the importance of the employee as a necessary prerequisite for value-adding activities and attach greater importance to the promotion and motivation of their employees, as well as to a good cooperation with them. The annual employee appraisal is a management tool that should take these goals into account.

The present work aims to provide a condensed insight into the theory of employee appraisals, as well as into the most basic conversational techniques. In particular, as a future social pedagogue with the desire to work in social management, I wanted to take a closer look at the topic of employee appraisals. The focus of the work should be primarily on the theoretical foundations of the employee appraisal. Since the rules and techniques of conversation are already known to me in detail through the study of social work, they are touched on in the context of this work, but not treated in depth.

1.2 Structure of the paper

At the beginning of the work, the theoretical foundations of the employee appraisal will be shown. Initially, the concept of employee appraisal is to be defined in more detail here, as well as its objectives. Afterwards, the components of the employee appraisal will be discussed. In this regard, the discussion on target agreements, the location determination, the assessment and the development discussion, as well as the discussion about the cooperation are briefly explained. Subsequently, the course of the conversation, which is divided into the rough steps of preparation, implementation and follow-up, is shown. In the following, the benefits of a qualified and committed employee appraisal are explained. The work concludes with a presentation of the basics of conversation for managers. The following aspects are examined: the special conversation situation of an employee appraisal, questioning techniques, active listening, I messages, feedback, praise and recognition, as well as criticism. Finally, it should be noted that the topic of employee appraisal as an instrument of personnel management is very complex and it was only possible to give a compressed insight into the matter within the framework of this work.

2. Theoretical foundations of the employee appraisal

2.1. Classification of terms employee appraisal

The term employee appraisal implies all conversations that take place between the superior and the employee and are distinguished from routine everyday communication. In particular, they are characterized by the following characteristics:

- Employee appraisals usually take place between the employee and the direct superior. Only in individual cases do employees of the human resources department or a higher supervisor perform this task.
- Employee appraisals are usually private conversations and take place confidentially. Only in exceptional cases is it possible for the employee or the supervisor to involve another person. Furthermore, in certain cases specified by law, the employee may consult a member of the works council.
- Employee appraisals are structured conversations that follow clear basic rules of conversation.
- Employee appraisals always have a defined factual content and pursue a specific goal.²
- The responsibility for the tasks, measures and consequent actions decided in the employee appraisal lies with both the employee and the supervisor.³

Basically, a distinction is made between the event-related and the institutionalized employee appraisals. As occasion-related discussions, all conversations that take place on a specific occasion and above all serve to clarify current problems, questions and concerns are to be understood. These include, for example, the critical interview, the recruitment and termination interview. The institutionalized discussions are periodic, usually once a year, the contents of which are geared to the characteristic requirements of the company and can therefore differ greatly.⁴ These discussions include, among other things, the target agreement discussion, the assessment interview or the so-called employee annual meeting. In the further course of this work, the focus will be on the institutionalized discussions, in particular on the annual employee appraisal, which "[...] the central management instruments performance assessments, employee development and promotion as well as target agreement combined in a single discussion." ⁵ , received.

2.2. Objectives of the employee appraisal

From company to company, the content and the sequence of employee appraisals can be different. On the one hand, this depends on the goals associated with the implementation of these discussions and, on the other hand, on the corporate culture. Above all, the detailed formulation of the objectives plays an important role. If the intentions of the company, which they aim for with the employee appraisal, are not clearly defined, supervisors and employees usually react with dissatisfaction and discomfort, which can have a negative effect on the conduct of the interview. Consequently, the goals of employee appraisals should be made transparent and clearly communicated. The objectives of employee appraisals include:

- Establishment of a conversation culture that promotes a consistent, goal-oriented and successful cooperation between employee and manager.⁶
- Improving communication and collaboration between co-workers and superiors
- Feedback on strengths and weaknesses should be made possible
- Discussion of development and qualification needs of the employee
- Recognition of the individual performance of the employee
- if necessary, decide on the assignment of the employee in a new or expanded field of responsibility and the associated new and expanded responsibilities⁷
- sustainable improvement of process quality⁸

2.3. Components of the employee appraisal

The following components are characteristic of employee appraisals:

- Exchange on target agreements
- Review or assessment of the situation
- Assessment
- Exchange about cooperation within the company
- Exchange on the development and promotion of the employee⁹

2.3.1.Exchange of target agreements

In the discussion about the target agreements, concrete goals for the employee are derived and formulated from the strategic organizational goals. The prerequisite for this is a strategic planning process in the organization, which defines both the organizational goals and what the individual departments contribute to them. Against this background, the manager and the employee then discuss the specifications that the manager has received for their department, as well as the goals and tasks that result from this for the employee. Furthermore, the employee has the opportunity to present his own objectives, which he sees for his area of responsibility. Consequently, both parties agree on their target objectives, make them binding for a certain period of time, usually one year, discuss the criteria on the basis of which the achievement of the targets is determined and agree on the measures necessary to implement the objectives. In addition, the manager can discuss very precisely what result and performance expectations he has for the employee, as well as what room for manoeuvre and decision-making he or she has. The goals should always be clear, concrete and formulated in such a way that the employee understands them and, in addition, a measurement or review of these goals is possible in the course of the goal realization and after the final result has been achieved.¹⁰

2.3.2. Review or assessment

Both interlocutors get an overview of where the employee stands, to what extent he has already implemented or realized agreed tasks and goals, as well as which goals he could not fulfill. Furthermore, problems and difficulties that stand in the way of achieving the goal are identified and it is discussed how the employee should continue to behave or how problems can be solved. This makes it possible to reformulate the objectives and tasks of the employee if necessary or to reconsider whether the goal can be achieved in a different way than before.¹¹

2.3.3. Performance appraisal

The focus here is on assessing the performance of the employee. The prerequisite for this is that the manager and the employee agree in advance on which tasks and target agreements of the employee serve as a basis for the assessment. Both interlocutors initially present their view of the services provided so far, whereby the manager should definitely acknowledge and praise good achievements. If it is justified, criticism should be voiced, existing need for action identified, as well as possibilities for improvement should be presented and consequences drawn for the further procedure. Consequently, both parties take stock of the past period. In particular, it is important to show the strengths and successes of the employee, as well as to analyze which reasons have led to the non-achievement of agreed goals. As a result, a learning effect can be achieved and appropriate measures can be determined for the future. It is important that the feedback of the manager contains exact facts and concrete observations, as well as examples and is therefore comprehensible and well thought out for the employee. In practice, more and more people are being asked to let the employee make a self-assessment in advance of the employee appraisal, which he then hands over to the supervisor before the interview, so that he can include the employee's point of view in his own assessment and, if necessary, identify inconsistencies.¹²

2.3.4. Exchange on cooperation within the undertaking

In companies, there are hardly any areas of responsibility in which employees work alone without much contact with other colleagues. Accordingly, the communication and cooperation skills of the employee represent an important skill, which guarantees a smooth cooperation. As a result, the manager discusses content with the employee in the employee appraisal, which should contribute to improving the employee's cooperation with her, with other colleagues, as well as interface partners. Criticism about the cooperation, as well as suggestions of the employee to improve the cooperation can also be heard.¹³

2.3.5. Exchange on employee development and promotion

With a view to the operational possibilities, individual skills and wishes, the interlocutors discuss and agree on appropriate development measures for the employee. The aim is to compare the employee's ideas about his professional development with the assessment of the manager and the opportunities offered by the organization. A conversation about the development of the employee should on the one hand offer him a realistic and attractive professional perspective and on the other hand prevent the employee from developing a utopian view of his professional opportunities in the company. In addition, employees should be motivated and prevented from possibly applying in other companies. During the discussion, managers will gain an insight into the career planning of the employee.¹⁴

2.4. Procedure of the employee appraisal

2.4.1. Preparation and appointment

In order to conduct a successful and qualitative employee appraisal, both parties to the discussion should prepare carefully for it. In order to allow sufficient time for preparation, an appointment should be made early. It is advisable to set the date at least two weeks before the interview in order to ensure extensive preparation of the participants.¹⁵ For the success of the conversation, it is important that the manager as well as the employee prepare for the content of the conversation. In particular, the topics of cooperation, achievement and agreement of objectives, promotion and development measures, as well as tasks and working environments should be considered in advance. In several companies, materials such as question lists are made available for preparation. In addition to the content preparation, the manager should also create suitable framework conditions, as well as a pleasant and calm conversation atmosphere. It is recommended to reserve a meeting room if the necessary rest is not guaranteed in the office of the manager or the employee.¹⁶ The seating situation during the conversation should also be considered. It makes sense that managers and employees sit on an equal footing in a neutral position with each other.¹⁷ In practice, it has been shown that a pleasant and low-tension atmosphere contributes significantly to the achievement of the goal of the conversation. In addition, the supervisor should allow sufficient time for the conversation so that hectic or even a sudden termination can be avoided. In everyday life, it has proven itself when the conversation takes place at off-peak times of the day, for example in the late afternoon. So, if necessary, more time can be spent.¹⁸

2.4.2. Implementation

In many companies, the procedure, in particular the implementation of the employee appraisal, is specified by a guideline. However, managers should not stick rigidly to a predetermined procedure, but be open to spontaneous changes in order if the course of the conversation requires a different sequence. In the literature there are various suggestions on how an employee appraisal can be carried out. Accordingly, Hossiep, Bittner and Berndt, for example, divide the implementation into five phases: Start of the discussion, information phase, argumentation phase, decision-making phase and final phase¹⁹ At Winkler and Hofbauer, on the other hand, the employee appraisal is carried out in seven steps: Start of discussions, review and performance assessment, exchange about cooperation, development and agreement of future work goals, discussion and agreement of development goals, summary of the conversation, as well as conclusion of the interview.²⁰ In this work, the implementation of the employee appraisal is presented on the basis of the remarks of Winkler and Hofbauer.

Start of conversation

During this phase, the manager should create an open and harmonious atmosphere through a personal welcome and small talk. Furthermore, it should be authentic in its appearance in order to avoid mistrust on the part of the employee. This is particularly important for the further course of the conversation, as mistrust is difficult to overcome. Furthermore, the manager, especially if it is a new employee, should once again explain the basic rules, as well as the goals of the employee appraisal.

Review and performance appraisal

At the beginning, the employee should be given the opportunity to assess his work situation and performance himself, as well as to explain which work and framework conditions were in his view a hindrance to the achievement of the previously agreed goals. The manager then gives the employee feedback. Among other things, it assesses the tasks and goals implemented by the employee with regard to his performance, his strengths, as well as his need for improvement. This should be followed by an open exchange of views between the two parties to the talks, which will include the following topics: Where do the employee's assessments coincide with those of the manager? Where are there contradictions and what are the causes of them? What is the joint assessment of the work done?

Exchange on cooperation

The employee initially explains his perspective on cooperation with the manager, colleagues and interface partners. Afterwards, the supervisor illustrates his view of things. Afterwards, both sides discuss ways to improve cooperation and then agree on concrete measures to optimize it.

Development and agreement of future work objectives

The employee begins to propose his future goals. The manager then describes her objectives and possibly also targets. Both interlocutors then exchange their opinions and arguments and agree on goals, as well as measures to realize and review them.

Discussion and agreement of development goals

The employee explains his career plans and opportunities that he sees for his further professional development. The manager then evaluates the employee's potential and presents the appropriate development measures for him. Afterwards, the possible measures for the professional qualification of the employee are discussed and agreed upon.

Summary of the conversation

At the end of the employee appraisal, the manager and the employee should discuss open questions, suggestions and suggestions, as well as record all agreements made in writing.

[...]

¹ Dietz/ Kracht zit. after Holewa 2006, p. 5

² cf. Mentzel/ Grotzfeld/ Haub 2010, p. 12f

³ cf. Holewa 2006, p. 7

⁴ cf. Winkler/ Hofbauer 2010, p. 3

⁵ Von der Heyde/ Von der Linde 2009, p. 162

⁶ cf. Hochschule für Wirtschaft und Technik 2011, p. 2

⁷ cf. Winkler/ Hofbauer 2010, p. 74

⁸ cf. Holewa 2006, p. 7

⁹ cf. Winkler/ Hofbauer 2010, p. 81

¹⁰ cf. Winkler/ Hofbauer 2010, p. 81f

¹¹ cf. ibid., p. 86

¹² cf. Winkler/ Hofbauer 2010, p. 87ff

¹³ cf. ibid., p. 92

¹⁴ cf. Wnkler/ Hofbauer 2010, p. 94

¹⁵ cf. ibid., p. 98

¹⁶ cf. Hossiep/ Bittner/ Berndt 2008, p. 50ff

¹⁷ cf. Holewa 2006, p. 12

¹⁸ cf. Hossiep/ Bittner/ Berndt 2008, p. 50ff

¹⁹ cf. Hossiep/ Bittner/ Berndt 2008; p. 52ff

²⁰ cf. Winkler/ Hofbauer 2010, p. 100ff