Performance Appraisal

Performance Appraisal Defined



System of review and evaluation of job performance Assesses accomplishments and evolves plans for development

Performance Management


Process that significantly affects organizational success

Managers and employees work together to set expectations, review results and reward performance.

Purposes of Performance Mangement



Strategic


Aligning employee performance with organizational objectives

Administrative


Making employment-related decisions

Developmental


Aiding employee growth 4

Relationship between job analysis and performance appraisal:

Job analysis performance standards Translate job Into levels of To acceptable Or unacceptable performance performance appraisal Describes the Job relevant strengths and weakness of Each individual

Describes work & Personnel Requirement Of a particular job

Question arises?
  

Why do we measure performance? Effective performance appraisal systems How do we measure performance?

Characteristics
    

It is a step by step process It examines the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees

Needs and Objectives:

     

Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management

Appraisal Benefits


Appraisals offer employees:

 Direction  Feedback  Input  Motivation

Appraisal Benefits


Appraisals offer the company:

 Documentation  Employee  Feedback  Legal

Development

protection  Motivation system

Why Appraisals Are Important

Recognize accomplishments Guide progress Improve performance

Why Important (cont.)

   

Review performance Set goals Identify problems Discuss career advancement

Steps in performance appraisal

Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose

Process of PA
Taking corrective standards Setting performance standards Communicating standards

Discussing results Comparing standards

Measuring standards

Issues in appraisal system

Formal and informal What methods? Whose performance?

When to evaluate? Appraisal Design?

Who are the raters?

What to evaluate? How to solve?

What problems?

How PA contribute to firms competitive advantages

Improving performance Values and behavior Competitive advantage Minimizing dissatisfaction And turnover Ensuring legal competence Making correct decision

Problems in performance appraisal

1.

Errors In rating  Halo effects  Stereotyping  Central tendency  Constant error  Personal bias  Spill over effect

Problems in performance appraisal (Contd)

2. 3. 4. 5. 6.

Incompetence Negative approach Multiple objectives Resistance Lack of knowledge

Essentials of an effective appraisal system

         

Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal

Appraisal Forms
    

Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals

Measure Performance
     

Measurement systems need to be: Specific Fair Consistent Clear Useful

Measure Performance (cont.)

Systems can be:  Numerical  Textual  Management by Objective (MBO)  Behavior oriented

Document Performance
   

Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis

Set Goals.
     

Based on job requirements Realistic Measurable Observable Challenging Prioritized

Employee Input

Employees take an active role:

   

Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting

Preparation
Employees:  Review performance  Think about new goals

Preparation (cont.)

Supervisors:
   

Review performance Complete written appraisal Think about new goals Schedule time and place

During the Meeting

Review performance:  Based on previous goals  Noting strengths and accomplishments  Identifying areas for improvement

During the Meeting (cont.)

 

Set goals: Based on company goals Building on areas that need improvement

Continuous Feedback
  

Formal appraisals Informal appraisals Open communication

Recognize Good Performance

   

Verbal Public Tangible Monetary

Identify Poor Performance

   

Act early Take the right approach Deal with employee reaction Handle continued poor performance

Discipline Poor Performance

  

Recognize problems Talk with employee Follow company policy

Performance Appraisal Methods



Individual Evaluation Methods  Confidential report  Essay evaluation  Critical incidents  Checklists  Graphic rating scale  Behaviorally anchored rating scale  MBO  360 degree Evaluation

Critical Incident method

Ex: A fire, sudden breakdown, accident Workers A B C D E reaction informed the supervisor immediately Become anxious on loss of output tried to repair the machine Complained for poor maintenance was happy to forced test scale 5 4 3 2 1

Checklist method
Simple checklist method Weighted checklist method Forced choice method

Simple checklist method:

Is employee regular Is employee respected by subordinate Is employee helpful Does he follow instruction Does he keep the equipment in order Y/N Y/N Y/N Y/N Y/N

Weighted checklist method

weights Regularity Loyalty Willing to help Quality of work Relationship 0.5 1.5 1.5 1.5 2.0 performance rating (scale 1 to 5 )

Forced choice method

Criteria 1.Regularity on the job Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular Most Rating Least

BARS( behaviorally Anchored rating scale)

Step 1. Step 2. Step 3. Step 4. Step 5. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument

MBO Process
   

Set organizational goals Defining performance target Performance review Feedback

360 Degree Appraisal



360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal.

Performance Appraisal Methods



Group Appraisal
  

Ranking Paired comparison Forced distribution

Ranking method
Employee A B C D E Rank 2 1 3 5 4

Paired comparison method

A B C D E A + + B + C D + + + E Final Rank + 3 + + + 2 1 4 5

Post appraisals
    

Performance related training Promotions Incentives Job enrichment Other benefits to boost employee morale

Light Moments

Discussion
1. 2.

Caselet 1 Activity Evaluation

Thank You