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During a today’s presentation, the Euro-Centrum Science and Technology Park presented a project of passive building which will be developed in the area of the Park.
These are two different purposes and should be separated in the Performance Management process as they have a tendency to conflict with each other (Rudman, 2004).
Once you are satisfied with the competency list, a new Focus Team is formed to build the performance appraisal. Once the evaluation has been built, it is time to validate it by field-testing the instrument.
Immediately following completion of the trial program, refine and retrial the appraisal process. Leaders need to be evaluated by their seniors, peers, and subordinates (360 degree feedback). Setting goals should be performed by the person being rated, not the rater (although the rater should offer advice), as he or she need to feel a sense of ownership. Evaluating a leader's team accomplishments is more important than evaluating individual accomplishments. There is a tendency to judge more favorably those we perceive as similar to ourselves (Just-Like-Me Effect).
There is also a tendency to evaluate a person relative to other individuals rather than on the behavioral standards (Contrast Effect). Performance should be based on the entire evaluation period, rather than on the most recent performance.
There is sometimes a tendency to rate a person as good or bad on all characteristics, based upon the inappropriate emphasis on a single characteristic (the Halo or Horns effect). Do not rate a person on or close to the midpoint of a scale when performance clearly warrants higher or lower marks.
Specific - Base ratings on explicit performance and targeted to the area you are measuring. Measurable - When the performance or goal is charted over the rated time period, which direction is good and which direction is bad must clearly be distinguishable so that action can be taken to reverse, maintain, or grow the rating. Timely - The individual knows the time period for which he or she is accountable for and knows when goals must be completed. Although this guide was about implementing a leadership appraisal program, the same process can also be used for developing competency based appraisals throughout the organization. It is not the judging of others that is uncomfortable; rather it is the judging of BAD performance that is uncomfortable. The first step in performance planning is to determine the results that you want the performer to achieve.
Part of the problem might be with its name -- Performance Appraisal, which kind of has a judgmental sound to it; Performance Planning and Review might be a better term for it. What is interesting about all of this is that they have been bought three times (and NOT because they are losing money — they make more money per square foot of business than the average grocery store). Yet one of the arguments against scrapping appraisals is that ALL workers' pay should be aligned with the labor market — they do not deserve annual pay raises as it inflates the wage and salary structure. CLO Magazine has an article, Upgrading Performance and Targeting Learning, that relates to this.
This type of thinking shows up in a lot of industries as they view their workers' jobs as set roles, even though the world is rapidly changing. I do not think the real argument is about documenting or scrapping appraisals, but rather ensuring that once goals are set, how do we ensure that the roles are properly accounted for so that the target can indeed be met?

Are performance appraisals just for keeping worker's pay adjusted to the standard cost of living adjustments? There are about a dozen differences between effective and ineffective reviews (Bacal, 2004, pp7-17). That is, while there are several valid reasons for doing Performance Reviews, they should always have a clear purpose -- to improve performance; in addition, the review needs to be a process rather than just a yearly exercise in filling out a form. Richard Rudman (2004) notes that the research shows that employees are more satisfied with pay decisions that are directly linked with decisions about performance and development.
However, despite its popularity among both employers and employees, the effectiveness of performance pay is still a subject for debate as many still see it as not being performed correctly.
Tony Hope, a visiting professor at the French Business school INSEAD, spoke of rewards at the Institute of Personnel and Development's Compensation conference.
The project was showed in a presence of Park’s authorities, mayor Piotr Uszok, IBM managers and business representatives. Note that the old Focus Team may be used, however, there are a couple of pros and cons — using the old team allows them to feel a sense of competition and provides you with an experienced team, while a new team allows more people to get involved with the process and bring in fresh viewpoints. Trial the appraisal process by having senior raters, subordinates, and peers perform a rating of the leaders they work with. Continue this process until the team is satisfied with the results of the leadership appraisal process. While the leader's seniors determine if goals and objectives were met, only the leader's subordinates can determine if the person is a leader. For example, Bill Walsh, Tom Landry and Chuck Knoll each won several Super Bowls, but they also had the worst first-season records of any coach in the National Football League's history.
Just as employees should be given feedback throughout the rating period, and not just on an annual or semi-annual basis, goals should also be discussed and reevaluated frequently. Some of the best leaders are almost invisible because of the work they performed in guiding their team on to excellence. The more closely a person resembles our attitudes or background, the stronger our tendency to judge that individual favorably.
Rating in the middle of the scale is often used to avoid uncomfortable discussions for poor performance. Seniors often give higher marks for task accomplishments, while subordinates tend to give higher marks for good people skills. For example, if you measure a leader's ability to perform customer service, a good metric would be direct feedback from customers on how they feel about the employee.
A common downfall is to try measure everything, this in turn produces many meaningless results and becomes very time consuming.
I wonder if it would also help with profits if we lock in all CEOs' pay and pay all stockholders the same -- that way, all organizations would make huge profits. In his article, Buchen argues that traditionally, roles have remained the same while goals change. For example, some allow the worker to get a zero raise for poor performance; do it a second time and you are out of there. For example, it also helps to guide our development (learning) and growth within the company. However, there are actually some good managers out there that are good because they recognize and gain from using a tool correctly.
He believes that we need to stop this practice as trust and commitment cannot be fostered while cost-control imperatives dominate organizational thinking.

According to Euro-Centrum authorities construction works will start in September 2010 and conclude in 2012.
This is possible thanks to, among others, solar collectors placed on the roof and in front of the facility. Collect feedback on the validity of the rating factors, workloads impact (is it too big or complicated?), and clarity of instructions for performing the appraisal.
If it becomes too complicated and time consuming, then the effort required to perform the appraisal correctly will not put into it. Determining if a person has leadership skills is based upon the willingness of people to follow that person. Also, over half of the Fortune 500 CEOs had a C average in college, yet they went on to manage some of the best organizations in America. Development goals, such as for advancing in the organization, should be performed in other settings, preferably with a career counselor.
While the failure to give high ratings is often the inability to compliment people for great performance or not wanting to give someone a higher rating than they, themselves, have received. Tasks are important for the day-to-day survival of the organization, while developing people and teams are important for the long-term performance of the organization. Now of course you are not going to completely eliminate bad performances, however, with a little bit of planning they can be greatly reduced.
There are also not-so-good managers out there who would be much worse if not for the fact that the tool and processes that support it actually guides them into making some half-way decent performance management decisions. The building was designed by Slawomir Kostur in cooperation with Walter Brown who is known for a project of the biggest European passive building “Lu-teco” in Ludwigshafen, Germany.
The performance appraisal will closely resemble the leadership competency listing, except that it will have room for comments, goal setting, instructions, scoring, names, etc.
It is better to precisely evaluate a few key competencies than to perform an incomplete rush job on a lot of competencies.
Great leaders are both task and people orientated, while poor leaders become fixated on one, the other, or neither.
The few studies I have seen assume organizations are going to save a ton of money by stopping performance appraisals because nothing is needed to replace them. Although you might have determined that a lot of competencies are required, it might be better to start off with a few key ones that the raters can comfortably perform. My boss might think I am a leader because I am able to get things done, but having the authority to order people around does not qualify a person as a leader.
It would have been a huge loss if the potential were not recognized in these great individuals. His senior replied that they had just spent several million dollars training him and that they wanted him to learn from this experience. Once they have become adjusted to the rating scheme, then use their help in building on to the appraisal (baby steps).
If that is all an organization is getting out of a appraisals then I agree, do away with it. The office space is designed for companies which conduct business solutions in the area of research and development.

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