1 PERFORMANCE APPRAISAL AND CAREER STRATEGY Definition: It is the process by which organizations evaluate individual job performance.

. HR depth, supervisors, individual, and ultimately the organization benefit, by ensuring that individual efforts contribute to the strategic focus of the organization. It is the process of defining expectations for employee's performance, measuring, evaluating against these expectations and providing feedback. Objectives of performance appraisal: Performance appraisal is a key element in the use and development of an organization most vital resource i.e. employees. There are two types of objectives of performance appraisal: a. Evaluative Objective: Used for: Compensation decisions Staffing decision: Placement decision. Transfer, Promotion and demotion. Employees Selection Process. Job designing / Re-designing. Providing legal base for organization decisions b. Development Objective: Used for: Performance Feedback Direction For future Performance. Identify Training and Development Needs. Career Development. Elements of Performance Management System: A. Performance Standards: Standards are benchmarks and should relate to the desired results and critical behavior related to job. (Critical elements of job are identified in job analysis). B. Performance Measure: The performance evaluation requires dependable (Reliable and Valid) performance measures i.e. the rating used to evaluate performance.

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2 These measuring methods/ techniques should be: Easy to Understand and Use. Reliable. Valid. Cost-Effective. C. Facilitate performance: Solve hurdles and problems Provide adequate financial, physical and HR Resources Selection of suitable employees for required jobs.

D. Encourage performance: Reward deserving and capable employees timely and fairly E. Performance feedback. TYPES OF PERFORMANCE MEASUREMENT: Subjective measures: These Ratings are based on personal opinions of Raters/ Evaluators and are not verifiable by others. These are usually non-quantifiable. Objective measures: These are Ratings or performance measures, which are verifiable and quantitative. Direct observation: It occurs when the rater/evaluator actually sees the performance. It is more accurate. Indirect observation: The rater can evaluate only substitute for actual performance. These substitutes are called Constructs. Written test for telephone operators about their procedures is constructing.

Characteristics of performance measures Measures should be easy and practical. Measures should be reliable Measures should be verifiable Measures should report on critical behavior

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3 THE APPRAISAL PROCESS: Steps include:

1. Establish performance standards involving Employees (Performance Standards 2. 3. 4. 5. 6.

should be SMART). Mutually set dependable performance measurement methods. Measure Actual Performance. Gather accurate and reliable information, using various sources such as Oral and written reports & Personal observation. Comparison of actual performance with the performance standards. Discuss Appraisal with the Employee (conduct Feed back Interview). Identify Reasons and Take Remedial Actions.

GUIDELINES FOR EFFECTIVE PERFORMANCE INTERVIEW 1) Emphasize: Positive aspects of employee performance. 2) Tell each employee that purpose of the evaluation process is to improve performance, not to discipline or punish (Development objective of evaluation). 3) Conduct the evaluation interview in private with minimum interruptions. 4) Provide specific feedback on areas in need of improvement and avoid subjective and vague terms and phrases. 5) For example your communication skills need improvement" or "your absenteeism rate is too high". Supervisors should make the expected results/behavior very clear. 6) Focus/criticism on performance and job related behaviors only and not the personality characteristics. 7) Stay calm, listen carefully to him. Do not argue with the person being evaluated. 8) Identify specific actions; the employee can take for his improvement of performance. Provide him help to solve his problems and improve his performance. CREATING AN EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM: 1. USE BEHAVIOR-BASED MEASURES. Do employees possessing better traits like loyalty, initiative etc, perform better? Moreover traits are measured on judgmental basis. Specific behaviors related to job performance are the right approach for evaluation. COMBINE ABSOLUTE AND RELATIVE STANDARDS.

2.

3.

PROVIDE ONGOING FEEDBACK. (IN PROCESS APPRAISAL) Page of 4 3

4 Ongoing performance appraisal and feedback at regular basis provide opportunities to employees as well as supervisor to provide guidance and correct the performance timely and on regular basis. The annual review of performance is not only an in-effective method, but may create problems. The supervisor (Evaluator) should share with the employees both Expectations and Disappointment on a regular basis and should provide guidance and support for continuous improvement.

4. HAVE MULTIPLE RATERS: By moving employees about within the organization, to gain a number of evaluations carried out by different appraisers /supervisors. This increases the probability of more valid and reliable evaluations. 5. USE PEER EVALUATION: This method involves performance evaluation by his co-workers. Managers find it difficult to evaluate their employees performance, because they are not observing them every time. The main benefit of this method is that. There is tendency for coworkers to provide every constructive insight to each other so that each will improve as a unit. Their inputs and recommendations will be Job specific behaviors. The employees should be properly trained to assess each other, in addition to training of the supervisor. In Upward Appraisal, Employees evaluate their supervisors. 6 360- DEGREE APPRIASALS: It is an appraisal method, in which supervisors, co-workers, employees, customers and suppliers evaluate the individual on the basis of their feedback. The growth of project teams and employees involvement in todays organizations, places the responsibility of evaluation, where people are better able to make an accurate assessment. The process has some positive benefits for development concerns. Rating scale can be used to assess factors such as quantity and quality of work, job knowledge, cooperation, personality traits etc. 7. TRAIN APPRAISERS The evaluators need knowledge of the system and its purpose (either used for compensation or development). Formal training is the most effective way to prepare managers and supervision to conduct successful appraisals.

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