Performance appraisal

Performance Management and Appraisal

• Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards

• Performance management - process through which companies insure that employees are working toward organizational goals

• It includes practices through which the manager defines the employee’s goals and work, develops the employee’s capabilities, and evaluates and rewards the person’s efforts

Defining the employee’s goals and work

efforts

• Employee’s efforts should be goal-directed

• Manager should appraise the employee based on how that person did with respect to achieving the specific standards by which he expected to be measured.

Defining the employee’s goals and work efforts

• Manager should make sure that the employee’s goals and performance standards make sense in terms of the company’s broader goals.

• Employees should always know ahead of time how and on what basis you’re going to appraise them

• Set measurable standards for each expectation.

Effective goal-setting

Why Appraise Performance ?

1. Appraisals provide important input on which promotion and salary raise decisions can be made

Who Should Do the Appraising?

• The supervisor is usually in the best position to observe and evaluate subordinate’s performance and is also responsible for that person’s performance

Who Else can Do the Appraising?

• Sole reliance on supervisors’ ratings is not always advisable

• An immediate supervisor may be biased for or against the employee

Rating committee

• Usually composed of the employee’s immediate supervisor and three or four other supervisors

• Can help cancel out problems such as bias on the part of individual raters.

BASIC APPRAISAL METHODS

• Confidential Report(ACR)• Direct ranking

method(ranks)• Grading method(grades)• Graphic rating scale • Paired Comparison Method • Forced distribution method• Critical Incident Method • Check List method• Group appraisal

• 360 degree performance appraisal

• Assessment centre`s• Human Resource

accounting• MBO• BARS

DirectRanking Method

• Ranking employees from best to worst on a trait

• Alternates between highest and lowest until all employees to be rated have been addressed

Graphic rating scale

• Lists a number of traits and a range of performance for each

• Supervisor rates each subordinate by checking the score that best describes the subordinate’s performance for each trait

Paired Comparison Method

• Every subordinate to be rated is paired with and compared to every other subordinate on each trait

Critical Incident Method

• Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times

• Helps ensure that the supervisor thinks about the subordinate’s appraisal all during the year

• Includes : refused to accept instructions Helping the fellow employees Performing difficult tasks

Behaviorally Anchored Rating Scale

• (BARS) is an appraisal method that combines the benefits of narrative critical incidents and quantitative ratings by anchoring a quantified scale with specific narrative examples of good and poor performance

360-Degree Feedback  

• Performance information is collected from supervisors, subordinates, peers, and internal/external customers

• With multiple ratees and multiple raters, can be paperwork nightmares

Management By Objectives (MBO)

• Requires the manager to set specific measurable goals with each employee and then periodically discuss progress toward these goals

MBO

• Set the organization’s goals • Set departmental goals • Discuss departmental goals • Define expected results • Conduct performance reviews and

measure the results • Provide feedback

APPRAISAL FEEDBACK INTERVIEW

• Supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths

APPRAISAL FEEDBACK INTERVIEW

• Supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths

Preparing for the Appraisal Interview

• First, give the subordinate at least a week’s notice to review his or her work, and to read over his or her job description, analyze problems, and compile questions and comments.

Essentials of effective appraisal

• Mutual trust and confidence• Reliability• Standardization• Training to appraisers• Specific objectives• Feedback• Post appraisal interview• Review and appeals