2918255 PPTPerformance Appraisal

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 analysisperformanceperformancestandards appraisal

Describes work& Personnel RequirementOf a particularjobTranslate 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?

CharacteristicsIt is a step by step processIt examine the employee strengths and weaknessesScientific and objective studyOngoing and continuous processSecure information for making correct decisions on employees

Needs and Objectives:Provide feedback about employeesProvide databaseDiagnose the S & W of individualsProvide coaching, counseling, career planning to subordinatesDevelop positive relation and reduce grievanceFacilitates research in personnel management

Appraisal Benefits (cont.)Appraisals offer employees:DirectionFeedbackInputMotivation

Appraisal BenefitsAppraisals offer the company:DocumentationEmployee DevelopmentFeedbackLegal protectionMotivation system

Why Appraisals Are ImportantRecognize accomplishmentsGuide progressImprove performance

Why Important (cont.)Review performanceSet goalsIdentify problemsDiscuss career advancement

Steps in performance appraisalEstablishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal dataFor appropriate purpose

Process of PASetting performancestandardsTaking correctivestandardsDiscussingresultsComparing standardsMeasuringstandardsCommunicatingstandards

Issues in appraisal systemAppraisal Design?Formal and informalWhose performance?Who are the raters?What problems?How to solve?What to evaluate?When to evaluate?What methods?

What to evaluate? (Philip Model)Problem childrenPlannedseparationstarsSocialcitizenHLHLPotentialPerformance

How PA contribute to firms competitive advantages Improving performanceMaking correct decisionEnsuring legal competenceMinimizing dissatisfactionAnd turnoverValues and behaviorCompetitive advantage

Problems in performance appraisalErrors In ratingHalo effectsStereotypingCentral tendencyConstant errorPersonal bias Spill over effect

Problems in performance appraisal (Contd)IncompetenceNegative approachMultiple objectivesResistanceLack of knowledge

Essentials of an effective appraisal systemMutual trustClear objectivesStandardizationsTrainingJob relatednessDocumentationFeedback and participationIndividual differencesPost appraisal reviewReview and appeal

Appraisals and Discrimination

Title VIIADAOther fair employmentLaws

Discrimination (cont.)Failure to communicate standardsFailure to give timely feedbackFailure to allow employees to correct performanceInconsistency in measuring performanceFailure to document performance objectively

Appraisal FormsDefine performance expectationsDescribe measurement toolsUse a rating systemCover specific examplesSet measurable goals

Measure PerformanceMeasurement systems need to be:SpecificFairConsistentClearUseful

Measure Performance (cont.)Systems can be:NumericalTextualManagement by Objective (MBO)Behavior oriented

Document PerformanceMake sure documentation is objectiveDocument performance of all employeesProvide complete and accurate informationDocument performance on a regular basis

Set Goals.Based on job requirementsRealisticMeasurableObservableChallengingPrioritized

Employee InputEmployees take an active role:Setting goalsDesigning action plansIdentifying strengths and weaknessesEmployees participate in the PA meeting

PreparationEmployees:Review performanceThink about new goals

Preparation (cont.)Supervisors:Review performanceComplete written appraisalThink about new goalsSchedule time and place

Start the MeetingLay out agendaTalk about moneyEncourage inputGive good news first

During the MeetingReview performance:Based on previous goalsNoting strengths and accomplishmentsIdentifying areas for improvement

Presentation TipsFocus on the professionalGive objective examplesInvite responseListen activelyCreate we mentality

During the Meeting (cont.)Set goals: Based on company goalsBuilding on areas that need improvement

End the MeetingEncourage good performanceLay out action planCommunicate outcome of goals not metConfirm understanding

Continuous FeedbackFormal appraisalsInformal appraisalsOpen communication

Recognize Good PerformanceVerbalPublicTangibleMonetary

Identify Poor PerformanceAct earlyTake the right approachDeal with employee reactionHandle continued poor performance

Discipline Poor PerformanceRecognize problemsTalk with employeeFollow company policy

Handle Hard CasesReviewing highly emotional employeesRating former peers

Key Points to RememberYou must conduct objective appraisals on a scheduled basis.

Appraisals tell employees how theyre doing and how they can improve.

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

Performance Appraisal MethodsIndividual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scaleMBO

Critical Incident methodEx: A fire, sudden breakdown, accident

Workersreactionscale

Ainformed the supervisor immediately 5BBecome anxious on loss of output 4Ctried to repair the machine 3DComplained for poor maintenance 2Ewas happy to forced test 1

Checklist methodSimple checklist methodWeighted checklist methodForced choice methodSimple checklist method:Is employee regular Y/NIs employee respected by subordinateY/NIs employee helpfulY/NDoes he follow instruction Y/NDoes he keep the equipment in orderY/N

Weighted checklist methodweightsperformance rating(scale 1 to 5 )Regularity0.5Loyalty1.5Willing to help1.5Quality of work1.5Relationship2.0

Forced choice methodCriteriaRating

1.Regularity on the jobMostLeastAlways regularInform in advance for delayNever regularRemain absentNeither regular nor irregular

Graphic Rating ScaleContinuous Rating ScaleDiscontinuous Rating ScaleEmployee name_________Deptt_______Raters name ___________Date________------------------------------------------------------------------------Exc.GoodAcceptableFairPoor 5 4 3 2 1 _ DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale

Discontinuous Rating ScaleAttitudeNoInterestIndifferentInterestedEnthusiasticVeryenthusiastic

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 ProcessSet organizational goalsDefining performance targetPerformance reviewfeedback

Group AppraisalRanking Paired comparison Forced distribution Performance tests Field review technique

Performance Appraisal Methods

Ranking methodEmployeeRank

A2

B1

C3

D5

E4

Paired comparison methodABCDE Final RankA---++3

B+--++2C++-++1D----+4

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

Forced Distribution method10%20%40%20%10%poorBelowaverageaveragegoodExcellentNo. of employeesForce distribution curve

Field review methodPerformancesubordinatepeers superiorcustomerDimension

Leadership ^ ^

Communication ^^

Interpersonal skills ^^

Decision making^ ^ ^

Technical skills^ ^ ^

Motivation^ ^ ^

Performance criteria for executivesFor top managersReturn on capital employedContribution to community developmentDegree of upward communication from middle-level executivesDegree of growth and expansion of enterprise.

For middle level managersDepartmental performanceCoordination among employeesDegree of upward communication from supervisorsDegree of clarity about corporate goals and policies

For supervisorsQuality and quantity of output in a given period Labor cost per unit of output in a given periodMaterial cost per unit in a given periodRate of absenteeism and turnover of employeesNo of accidents in a given period

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