Escolar Documentos
Profissional Documentos
Cultura Documentos
1. LEARNING OBJECTIVE
2. INTRODUCTION
3. OBJECTIVE OF PERFORMANCE APPRAISAL
4. DEVELOPING THE PERFORMANCE APPRAISAL
SYSTEM
5. INTRODUCING & OPERATION OF PERFORMANCE
APPRAISAL SYSTEM
6. MONITORING & EVALUATING PERFORMANCE
APPRAISAL
7. PROCESS OF PERFORMANC APPRAISAL
8. PERFORMANCE CRITERIA
9. BENEFITS OF PERFORMANCE APPRAISAL
10.CONSTRAINTS
11.NEW TRENDS IN PERFORMANDE APPRAISAL SYSTEM
12. 360o APRAISAL SYSTEM OR FEEDBACK
13.NEW APPRAISAL SYSTEMS
LEARNING OBJECTIVES
This lesson is an insight into the following topics related to performance appraisal:
INTRODUCTION:-
Organizations are run and steered by people. It is through people that goals are
set and objectives realized. The performance of an organization is, thus, dependent
upon the sum total of the performance of its members. According to Peter Drucker, an
organization is like a tune. It is not constituted by individual sounds but by their
synthesis. The success of an organization, therefore, depends on its ability to accurately
measure the performance of its members and use it objectively to optimize them as vital
resources.
Performance appraisal (PA) refers to all those procedures that are used to
evaluate the personality, the performance and the potential of its group members.
Evaluation is different from judgment. The former is concerned with performance and
the latter is concerned with the individual. While evaluation deals with achievement of
goals, a judgment has an undercurrent of personal attack and is likely to evoke
resistance. Performance appraisal could be informal or formal. Informal performance
appraisal is a continuous process of feeding back information to the subordinates about
how well they are doing their work in the organization. The informal appraisal is
conducted on a day-today basis. For example, the manager spontaneously mentions
that a particular piece of work was well performed or poorly performed. It is due to the
close connection between the behavior and the feedback on it, the informal appraisal
quickly encourages desirable performance and discourages undesirable performance
before it becomes permanently ingrained. Therefore, informal appraisal should not be
perceived merely as a casual occurrence but as an important activity and an integral
part of the organization’s culture.
The formal performance appraisal occurs usually annually on formal basis and
involves appraise and appraiser in finding answers to the following questions:
When the employees have this type of information, they are aware of the following
specifications:-
Performance appraisal has been used for the following three purposes:
• Remedial
• Maintenance
• Development
A performance appraisal needs to cover all these three purposes with the same
focus. If any purpose predominates, the system becomes out of balance. For instance,
if remedial purpose is foremost, then the performance appraisal may become a
disciplinary tool, a form of a charge sheet and a tool of power instead of instrument of
evaluation. Sometimes maintenance becomes the main objective for an organization. In
this case, the process may become short, skimped and per functionary ritual. If there is
too much emphasis on development, then the focus falls on the future assignment
rather than on the current job.
5. Removing discontent—
Identifying and removing factors responsible for worker’s discontent
motivates them for performing better at work. Performance appraisal helps in
creating a positive and healthy work environment in the organization.
8. Exercising control—
Performance appraisal also provides a means for exercising control.
9. Improving communication—
Performance appraisal serves as a mechanism for communication
between superiors and subordinates.
DEVELOPING A PERFORMANCE APPRAISAL SYSTEM
4. Decide on whether the same approach should be adopted at each level. In most
cases, the essence of the approach is the same for all levels. The performance
measures vary for different levels.
5. Set up project team. Project teams consist of managers and other employees. The
human resources department or outside consultants are valuable means of getting
involvement and ownership.
6. Define role of human resource department. The role of human resource department
developing and implementing performance appraisal system is to convince top
management. They need to clarify to them that its introduction can make a significant
impact on the organizational performance.
7. Decide whether to use outside consultants. External consultants can be used for
seeking advice and introducing performance appraisal to run training programs. They
carry on evaluation studies including the conduct of attitude surveys. But as they are
costly, care should be taken in selecting consultants who have the required level of
experience and expertise.
9. Pilot test. The whole PA system cannot be pilot tested because the cycle lasts
generally for 12 months. Performance appraisal includes drawing up performance
agreements, objective setting, document completion etc. These can pilot tested. Based
on the experience gained, the system may be fine-tuned.
10. Plan implementation program. The implementation program should cover the
following:
TRAINING
The importance of thorough training for both appraisers and appraise, in the skills
required to carry out performance appraisal effectively, cannot be overemphasized.
Both parties in the performance appraisal process need guidance and training in the
preparation of the following:
• Select performance factors based on the job description. These are duly evaluated
and help in setting standards for achievement
• Set the performance review period
• Measure actual performance
• Compare performance with set standards and rate it with a suitable scale
• Communicate the rating to the appraisee
• Use the performance appraisal for the desired purpose
PERFORMANCE CRITERIA
• Workers
• Supervisors
• Managers
Performance appraisal is a formal exercise carried out for all executives and staff
members with respect to their contributions made toward the growth of the organization.
The aim is to measure the overall performance of an employee over a period of time.
This is usually one year. The procedure is carried out by the immediate supervisor who
inurn provides a feedback to the employees and helps in better management.
Performance appraisal does not merely measure the performance of the people but has
many other benefits. The benefits of a successful appraisal system can be summed up
as follows:
An appraisee, who meets it, gets higher assessment. Being subjective in nature,
there are certain pitfalls which need to be guarded against. The issue of performance
appraisal is very sensitive to the appraisee because it affects his/her present position
(status, and self esteem) and career growth. Performance appraisal system should not
only be fair, equitable and transparent, but it should be perceived to be so. This can
happen only if the system has in-built transparency. Some of the common pitfalls
encountered in performance appraisal are mentioned below:-
1. Shifting standards—
Managers differ in rating style. Some rate harshly whereas others are quite
lenient. This can be reduced by precise definition on the appraisal form. For instance,
dependability may be defined as the confidence you have in the employee to carry out
instructions and the extent to which you can rely on his/her ability, punctuality and
attendance. Subjectivity can also be moderated through a multi-layer appraisal system.
In this system, the immediate superior initiates the report which is reviewed by next the
higher authority.
3. Central tendency—
4. First impression—
Some raters may form an overall impression based on some specific qualities or
features of the ratee in the first meeting itself and carry it forward. Making assessment
on too short a time span and inadequate knowledge can sometimes prove incorrect.
5. Latest behavior—
At times, the appraisal is influenced by the most recent behavior, ignoring the
most commonly engendered behavior during the entire period. Thus, a usually sober
person may be treated as arrogant because he expressed his/her opinion.
6. Halo effect—
7. Horn effect—
Some raters have a standard mental picture about a person because of that
person’s sex, color, caste, religion, age, style of-clothing, political view etc. Stereotyping
results in an oversimplified view. Such assessments are based on false
assumptions/feelings, rather than facts. Discretion should not become discrimination.
There are other pitfalls such as taking too short appraisal interviews and failing to
support opinions with evidence, inadequate briefing of the appraisee and pre-judging
performance. In some organizations, such as PSUs, there is a system called CCR
(Character Confidential Rol1). East India Co started this system. Since it is confidential,
it can be manipulated. The corporate world soon realized its disadvantages and
introduced self-appraisal systems.
CONSTRAINTS
• Rating by superiors—
• Ranking method
• Paired comparison method
• Graphic rating scales method
• Forced choice list method
• Critical incidence method
• Forced distribution method
In this system, the appraisee is informed about his/her strong and weak points.
The person is given an opportunity to defend himself/herself in terms of constraints or
weaknesses. This system leads to greater satisfaction and higher work performance
due to participative approach. Meyer suggests that the goal of the appraisal should be
to improve the future performance of subordinates and, therefore, suggested that
performance appraisal should be made a continuous process rather than a yearly
feature.
In this technique, the appraiser goes to the field (e.g. shop floor) and
obtains the information about work performance of the employee by way of
questioning the said individual, the peer group and the superiors. The information
received about how he is performing helps the appraiser in defining the profile of the
employee. Rating by self and the peer group-- In this method, the employee appraisal
is done independently at the following three levels:
• The employee
• The peer group
• The superior
HRD department analyzes these appraisal reports and draws a profile based on
common aspects. 360o performance appraisal-- This is a new concept in performance
appraisal, where the feedback is collected from all around the employee, the superior,
the subordinates, the peer group and the customers. The evaluation is very
comprehensive in terms of the employee’s skills, abilities, styles and job-related
competencies. This system has the following advantages:
(a) Agree a time and date for the review well in advance and set aside at least an hour.
(b) Arrange for the location to be private and free from interruptions.
(c) Bring all relevant results and information concerning the appraisee’s performance in
his area of responsibility.
(d) Ask the appraisee for the following:-
• To review his/her performance in the work situation point by point
• About any problems which might have affected his/her performance
• About the implications of any problems or events and their effect on the
individual, the team and the work
• What needs to be done by either of them to help improve his/her future
Performance
(e) Decide on the key result areas.
(f) Manager and appraisee should jointly set standards of performance and the course
of action for the next review period.
(g) Close with a firm date for the next interim review.
NEW TRENDS IN PERFORMANCE APPRAISAL SYSTEM
In the emerging business environment, companies are learning a new rule for
benchmarking employee performance and deciding on the rewards. Customer
satisfaction, organizational prosperity and achieving the corporate goals should be the
ultimate arbiter to circumvent the above-mentioned problems. The appraisal and reward
systems, designed with the above framework, attract the best people, retain them and
motivate them to give their best. Translating the corporate objectives into specific,
quantifiable goals for every employee forms the corner stone of performance appraisal
systems leading to feedback on how close to or how far from those goals the employee
is at the end of appraisal period. The nature of goals emphasized by the performance
appraisal systems should not only be numbers-driven, sales or budget-oriented but also
the methods used to achieve those numbers. This shuns the employees from putting
company’s values, credibility and reputation at stake. Therefore, performance appraisal
systems should focus on behavior oriented dimensions. Performance appraisal systems
should also focus on teamwork which is increasingly gaining importance. In an age of
increased automation, employee productivity in general and managerial productivity in
particular has to be assessed and rewarded.
This is defined as the systemic collection and feedback of performance data for
an individual or a group. It is derived from a number of stakeholders in their
performance. It is done in a systematic way via questionnaires or interviews. This
formalizes judgment coming from people and through natural interactions employees
have with one another. There is both a collection and a feedback process. Data is
gathered and fed back to the individual participant in a clear way designed to promote
understanding, acceptance and ultimately changed behavior. Stakeholders are people
who are both affected by your performance and deal with you closely enough to be able
to answer specific questions about the way you interact with them. This feedback
system assesses managers in terms of the competence they possess or more
specifically through the detailed behavior that constitutes them. So far, 360o feedback
has concentrated on people who are at the more senior levels in an organization. This
includes directors, managers, senior executives in companies and partners or principals
in the profession. However, as organizations are beginning to appreciate the power and
value of such measurement, other jobholders find that their behavior also comes under
the microscope. Engineers, pilots, sales people, HR professionals, customer service
staff etc., have all participated in this assessment and feedback process. Certain
specific benefits of the 360o feedback system are as follows:
The 360o feedback system can be used in any organization for the above
purposes. It is believed that the impact of this feedback on an organization is very
beneficial. The technique presents feedback in a powerful way and can have impact on
the quantity or quality of performance data, communications, staff motivation and the
roles of those involved. However, this system is not a quick process.
The 3600 feedback has become popular recently because of a change in the
expectation that organizations have from their employees. This is through the increasing
emphasis on performance measurement, change in major management concepts and
more receptive attitudes.
The changing needs of the organization and the existing lacunae in the
performance appraisal systems have forced the organization to design their own
appraisal system. This system fulfills the organizational as well as individual needs. In
this regard, various new concepts of appraisal system have come into vogue. They are
briefly discussed as follows:
2. Team appraisals—
This concept focuses upon appraising the performance of the team rather than
an individual team member. The assessment of every team member is made
accordingly. Digital Corporation USA is currently using this system. The main features
of this system are as follows: