Performance Appraisal

Presented by
Ankush Goyal Harsha Malhotra Satyajeet Suman

Performance Appraisal By Ankush, Harsha, Satyajeet

According to Edwin Flippo, "Performance Appraisal is the systematic, periodic and impartial rating of an employee's excellence, in matters pertaining to his present job and Performance Appraisal also his potential for a better job. Rating, called as Performance
Employee Assessment, Employee Performance Review, Personnel Appraisal, Performance Evaluation, objective assessment of Employee Evaluation, Merit Rating

Its an an individuals performance against well defined benchmarks

Performance Appraisal By Ankush, Harsha, Satyajeet

Nature of Performance Appraisal

Job Knowledge Quality and quantity of output Initiative Leadership abilities

Supervision

Dependability

Co-operation

Judgement

Versatility

Health

Not just past performance

Performance Appraisal By Ankush, Harsha, Satyajeet

Performance Measurement
Performance Management refers to the entire process of appraising performances, giving feedback to the employees and offering rewards or punishments to them
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Relationship of Performance Appraisal and Job Analysis

Describe work and personnel reqt. of a particular job

Performance Standards
Translate job reqts. Into levels of acceptance or unacceptable performance

Describe jobrelevant strengths and weaknesses of each individual

Job Analysis

Performance Appraisal

Performance Appraisal By Ankush, Harsha, Satyajeet

Purpose of Performance Appraisal

To effect promotions based on competence & performance. To confirm the services of probationary employees upon their completing the probationary period. To assess the training and development needs of employees To decide upon a pay raise where regular pay scales have not been fixed. To let the employees know where they stand with respect to their performance. To assist them with constructive criticism and guidance for the purpose of their development.
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To improve communication and improve goals and concerns.

Performance Appraisal and Competitive Advantage

Strategy and Behaviour Values and Behaviour COMPETITIVE ADVANTAGE Minimising Dissatisfactio n and Turnover Ensuring legal Performance Appraisal By Ankush, Compliance Harsha,
Satyajeet

Improving Performance

Making Correct Decisions

Appraisal Process

Objectives of Performance Appraisal

Establish Job Expectations

Design an Appraisal Programme

Feedback
Appraisal Performance

Performance Interview

Performance Management
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Archive Appraisal Data

Performance Appraisal By Ankush, Harsha, Use Appraisal Data for Satyajeet

Appropriate Purposes

Objectives of Appraisal
This includes effecting promotions and transfers, assessing training needs, awarding pay increases, and like.
Traditional Guiding value Primary Goal Leadership practices Appraisal frequency Degree of formality Attribution to individual Control, documentation Directional evaluative Occasional High Systems Attribution to system Devt. , Problem solving Facilitative, Coaching Frequent Low Group Orientation

Performance Appraisal By Ankush, Harsha, 9 Reward Satyajeet practices Individual orientation

Establish Job Expectations

Includes informing the employee what is expected of him/her on the job

Discussion held for job description

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Performance Appraisal By Ankush, Harsha, Satyajeet

Design Appraisal Programme

Formal vs Informal What Methods? Whose Performance?

Individual? Workgroup? Organization ? Division? Immediate Superiors? Peers? Subordinat es? Committee s? Clients?

When to Evaluate?

Appraisal Design

Who are the Raters?

What to Evaluate?

What Problems?

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Performance Appraisal By Ankush, Harsha, Satyajeet

How to Solve?

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Performance Appraisal By Ankush, Harsha, Satyajeet

Paired Comparision Method

It is particularly useful where you do not have

objective data to base this on. It helps you to set priorities where there are conflicting demands on your resources. This makes it easy to choose the most important problem to solve, or select the solution that will give you the greatest advantage.

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Performance Appraisal By Ankush, Harsha, Satyajeet

Graphic Rating-Scale Method

The Rating Scale is a form on which the manager

simply checks off the employees level of performance. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job)

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Performance Appraisal By Ankush, Harsha, Satyajeet

Forced Distribution Method

Its a method of performance appraisal to rank

employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

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Performance Appraisal By Ankush, Harsha, Satyajeet

Essay Method
This method ask managers / supervisors to

describe strengths and weaknesses of an employees behavior. Its a non-quantitative technique. This method usually use with the graphic rating scale method.

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Performance Appraisal By Ankush, Harsha, Satyajeet

Input of Information Sources

Job knowledge and potential of the employee;

Employees understanding of the companys programs, policies, objectives, etc. Employees relations with co-workers and superiors. The employees general planning, organizing and controlling ability; The attitudes and perceptions of the employee, in general.

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Performance Appraisal By Ankush, Harsha, Satyajeet

Critical Incident Method

The manager writes down positive and negative

performance behavior of employees throughout the performance period. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance.

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Performance Appraisal By Ankush, Harsha, Satyajeet

MBO Process
Mmanagers set objectives for the employee,

periodically evaluate the performance, and reward according to the result. It focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods).

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Performance Appraisal By Ankush, Harsha, Satyajeet

Behaviorally Anchored Rating Scale (BARS)

A behavioral approach to

performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance.

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Performance Appraisal By Ankush, Harsha, Satyajeet

360 Degree appraisal Method

The performance of an employee will be

assessed based on ideas of many other different people, eg. customers, suppliers, peers and direct reports. Implemented by the manager of HR Dept. so that the subordinate reviewers are made sure that all their assessments on performance are kept anonymous.

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Main Contributors
Subordinates.

Peers/ Team Members

Managers (i.e. superior). Customers Suppliers/ vendors

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Performance Appraisal By Ankush, Harsha, Satyajeet

Domains of 360 degree method

360 degree measures manners and capacities.

360 degree improves such skills as listening,

planning and goal-setting. 360 degree concentrates on subjective areas, for example efficiencies of teamwork, character, and leadership. 360 degree supplies on the way others think about a specific staff.

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Performance Appraisal By Ankush, Harsha, Satyajeet

PERFORMANCE APPRAISAL SYSTEM

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Performance Appraisal By Ankush, Harsha, Satyajeet

EDWARD DEMMINGS VIEW ON PERFORMANCE APPRAISAL

Rewards people for manipulating the system rather

than improving it.

Is often self defeating.

Is inconsistent with team work.

Acts as a substitute for proper management. Is inherently unfair.
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Challenges to Appraisal
Create a culture of excellence that inspires every employee to improve and lend himself or herself to be assessed. Align organizational objectives to individual aspirations. Clear growth path for talented individuals. Provide new challenges to rejuvenate careers that have reached the plateau stage.

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Forge a partnership with people for managing their careers.

Empower employees to make decisions without fear of falling.

Embed teamwork in all operational processes. Debureaucratise the organisation structure for ease of flow of information

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4. Challenges to Appraisal
Errors and 1.a. Errors/Bias Bias

3. Politics c. Politics

Liking
b. Liking d. Legality

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Challenges: Errors and Biases

1. Halo 2. Recency 3. Primacy 4. Rating Tendencies 5. Escalation of Commitment 6. Anchoring and Adjustment
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1. Halo Error
Allowing a few behaviors of employees to influence the perception and rating of other behaviors.

Observation of specific behavior (s) (e.g., volunteers to work overtime) High ratings on other performance dimensions
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2. Recency Effect
Allowing the most recent behavior of an employee to overly influence the overall appraisal.
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3. Primacy Effect
Allowing first impressions of employees to overly influence subsequent perceptions of performance.

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4. Rating Tendencies

Leniency -rating everyone high.

_____ _____ _____ __ X ___ Average Excellent

_____ Very Poor

Strictness - rating everyone low.

_____ _____ _____ _____ Average Excellent

___ X__

Very Poor

Central tendency - rating everyone at the middle.

_____ ___ X __ Average _____ _____ Excellent

_____ Very Poor

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5. Escalation of Commitment
When supervisors use appraisals to support their views of and intentions toward employees e.g. to promote, dismiss, or punish.
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6. Anchoring and Adjustment Bias

When past ratings of employees overly influence their current appraisal.
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Challenges: Liking (individual favoritism)

Often, interpersonal attraction affects appraiser perceptions of employees. Events and actions are seen through rose colored lenses. Also referred to as favoritism.

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Challenges: Politics
Often, supervisors allow politics to affect their appraisals. For example, a lower than justified rating may be used to punish an employee, or supervisors may avoid a pattern of low ratings to hide poor supervisory practices.

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Challenges: Legality
How to ensure legal compliance in performance appraisal? Recent study of 295 federal court cases identified factors related to legality of appraisals:

Legally defensible appraisal procedures. Legally defensible appraisal content Legally defensible documentation of appraisal results

Legally defensible raters.

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360 Degree Appraisals

Supervisors

Peers

Outsiders

Subordinates
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360 Degree Appraisals

360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment. is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback , where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
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