Performance Appraisal

Performance Appraisal :

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members

Relationship between jab analysis and performance appraisal:Job analysis performance performance

standards appraisal

Describes work

& Personnel

Requirement

Of a particular

job

Translate job Into levels of To acceptableOr unacceptableperformance

Describes the Job relevant strengths and weakness ofEach individual

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 examine 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 (cont.)

Appraisals offer employees: Direction Feedback Input Motivation

Appraisal Benefits Appraisals offer the company:

Documentation Employee Development Feedback Legal 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 dataFor appropriate purpose

Process of PASetting

performancestandardsTaking corrective

standards

Discussingresults

Comparing standards

Measuringstandards

Communicatingstandards

Issues in appraisal system

Appraisal Design?

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?

What to evaluate? (Philip Model)

Problem children

Plannedseparation

stars

Socialcitizen

H

L H

L

Potential

Performance

How PA contribute to firm’s competitive advantages

Improving performance

Making correct decision

Ensuring legal competence

Minimizing dissatisfactionAnd turnover

Values and behavior

Competitive advantage

Problems in performance appraisal

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

2. Incompetence

3. Negative approach

4. Multiple objectives

5. Resistance

6. Lack of knowledge

Problems in performance appraisal (Cont’d)

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

Appraisals and Discrimination

Title VII ADA Other fair employment Laws

Discrimination (cont.) Failure to communicate standards Failure to give timely feedback Failure to allow employees to correct

performance Inconsistency in measuring

performance Failure to document performance

objectively

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

Start the Meeting

Lay out agenda Talk about money Encourage input Give good news first

During the Meeting

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

Presentation Tips

Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality

During the Meeting (cont.)

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

improvement

End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not

met Confirm understanding

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

Handle Hard Cases

Reviewing highly emotional employees Rating former peers

Key Points to Remember You must conduct objective appraisals on a

scheduled basis.

Appraisals tell employees how they’re doing and how they can improve.

Appraisals help create a system of motivation and rewards based on performance.

Performance Appraisal Methods Individual Evaluation Methods

Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO

Critical Incident methodEx: A fire, sudden breakdown, accident

Workers reaction scale

A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1

Checklist method

•Simple checklist method•Weighted checklist method•Forced choice method

Simple checklist method:Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N

Weighted checklist method

weights performance rating(scale 1 to 5 )

Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0

Forced choice method

Criteria Rating

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

Graphic Rating Scale• Continuous Rating Scale• Discontinuous Rating Scale

Employee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------

Exc. Good Acceptable Fair Poor 5 4 3 2 1 _

DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale

Discontinuous Rating Scale

Attitude

NoInterest

Indifferent

Interested

Enthusiastic

Veryenthusiastic

BARS( behaviorally Anchored rating scale)

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

MBO Process Set organizational goals Defining performance target Performance review feedback

Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review

technique

Performance Appraisal Methods

Ranking method

Employee Rank

A 2

B 1

C 3

D 5

E 4

Paired comparison method

A B C D E Final RankA - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Forced Distribution method

10% 20% 40% 20% 10%

poor Belowaverage

average good Excellent

No. of employees

Force distribution curve

Field review methodPerformance subordinate peers superior customerDimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^

Performance criteria for executives For top managers

Return on capital employed Contribution to community development Degree of upward communication from

middle-level executives Degree of growth and expansion of

enterprise.

For middle level managers

Departmental performance Coordination among employees Degree of upward communication from

supervisors Degree of clarity about corporate goals and

policies

For supervisors Quality and quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period