P 7 - Performance Appraisal System - 13.04.2013

7/30/2019 P 7 - Performance Appraisal System - 13.04.2013

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& Appraisal System

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PerformanceManagement &

Appraisal System

MBO

PerformanceManagementModel

Guideline

Source ofDrive

Uses ofPerformanceAppraisalsOutcomes

Tips forSuccessfulPA System

Why Performance Management & Appraisal System?

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.

MISSION

OBJECTIVES

STRATEGY

GOAL SETTING

PERFORMANCEAPPRAISAL

REWARDS

COACHING &

FEEDBACK

TRAINING

MOTIVATION

ROLE CLARITY

CAPABILITIES

AND TRAITS

RECRUITMANT

PERFORMANCE

ORGANIZATIONAL

POLICIESINDIVIDUAL LEVEL

FACTORS

VISION

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Organizational VisionDream of the founder, what the company should be?

MissionHow to allocate the resources to achieve the vision?

Objectives/ Goals

Long term objectives: Spread over more than one yearShort Term Objectives: Achievable within one year

Strategy1. The formulization of organizational Mission, Goals and

objectives as well as action plan for achievement, that

explicitly recognize the competition and impact of outsideenvironmental forces

2. An action plan that a company formulates to achieve theobjectives through superior performance

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Performance Appraisal SystemPerformance Appraisal (PA) is the process ofMeasuring, Evaluating and Recordingemployees performance relative to defined

expectations and providing feedback to theemployees.

It is an attempt to address thematter of appraising employeesperformance in a comprehensive manners.Innovation, Total Quality Management, High

Performance Work Teams and ParticipativeManagement Approach have an impact onthe performance of individuals.

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.

Evaluate onspecific

behaviors

Documentthe process

carefully

Attend tolegal

considerations

Appraisal

System

Use job analysis

for performance

standards

Develop a formal

appeal process

Use more than

one rater where

possible

Communicate

performance

standards

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Behavioral PA MethodsChecklist: It is the simplest form which includes a list

of descriptive statements of job related behaviors,such as:Quality of Work, Quantity of Work, Cooperation

with others, Job Knowledge, Dependability,Attendance & Punctuality, Knowledge of CompanyPolicies and Objectives, Initiative and Judgment,Supervisory or Technical Potential and HealthSafety & Environment etc.

This covers the 25% weightage in the performancerating.

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PA Against JDPerformance of the individual is evaluatedagainst the issued and agreed jobdescription. JD is set of interrelated tasks

assigned to the concerned. JD alsocommunicates the expectation level of theManagement from the individual.

It covers the 50% weight-age in thePerformance rating.

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Result Oriented PA MethodsManagement By Objectives MBO:

This method was introduced by Peter

Duckers. This approach has following threestages:

1. Setting Organizational Objectives2. Setting Individual Objectives

3. Appraising according to the results

This covers the 25% weightage in the PA rating.

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Guideline for Conducting a Result Oriented Performance Appraisal

1. PA should be based on a thoroughJob Analysisresultantly updatedJob Descriptions andJobSpecifications

2. Performance standards should be developed from theJob Analysis as input into the PA.

3. PA should be evaluated against specific behaviors asopposed to evaluating overall job performance usingone or few global measures.

4. The PA review discussion should be a two waycommunication between the evaluator and theemployee

5. The PA should be used not only as a mean of evaluatingperformance but also as a mean of motivating anddeveloping the employees.

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Guideline for Conducting a Result Oriented PerformanceAppraisal Contd

6. The purpose of the PA and the objective of the organizationmust be considered carefully before deciding a PA method.7. Training program should be implemented to:

Help raters avoid common perceptual errors in evaluating Help raters to improve their performance review skills

8. The link between PA System and organizational long termstrategic plans should be clearly defined.9. A successful PA System should be built around clearobjectives, have the support of both Management andemployees, be flexible enough to adopt the organizationalchanges and foster open discussion between evaluator /supervisors and employees.10. The validity of PA System should be examined at regularintervals.

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Performance appraisal process

1. Job analysis results can be used to2. Set performance standards / KPIs that can

be used to3. Design a performance appraisal systemthat is used to..

4. Assess performance through5. A performance review during which

participants6. Discuss a future plan of action.

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Tips for a successful performance review for raters:1. Give the employees fair notice when the review is

to be taken place.2. Ask the employees to think about and evaluate

their own performance prior to join the review

session.3. Get prepared for the review by examining

information available about the employeesperformance. Seek additional information ifrequired.

4. Begin the session positively to set the employees

on ease.5. Explain the format of the performance review

session.

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Tips for a successful performance review for raterscontd..

6. Make the employees aware of the uses of the PAresults such as T & D / Promotion / Transfer orfeedback decisions.

7. If needed set a second meeting the nonperformance related issues such as the salaryincrease, future goals or development suggestions

8. Review the key performance indicators KPIs9. Encourage the employees to participate, especially

when their performance differs with the

expectation / pre set goals.10. Make sure to praise the employees for theiraccomplishments during the evaluation period

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Tips for a successful performance review forraters contd..11. Highlight the areas in which performance

did not meet the standards.12. Discuss ways to improve performance in

the weak areas or resolve problems thathave caused the employee to be lesseffective then desired level.

13. Make sure that the employee fully

understand the appraisal system /objectives14. End the discussion on a positive note

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. Managers and SupervisorsTraditional source of appraisal informationPeers and Team Members

Best at identifying leadership potential and interpersonal skillsSubordinates

Provide feedback to supervisors 360 degreeInternal and External CustomersInternal customers include anyone inside the organization whodepends upon an employees work output

Self-appraisalsIncreases workers involvement in appraisal360 degree appraisalUses multiple sources to gain comprehensive perspective ofones performance

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Outcomes of performance appraisals may beused for:

1. Performance improvement

2. Compensation adjustment

3. Placement decisions

4. Training and development need assessment

5. Career planning and development

6. To highlight the staffing process deficiencies7. Feed back to the employees

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Thank You

[email protected] 946 8738

18AMJAD BHATTI

P 7 - Performance Appraisal System - 13.04.2013

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