Performance Appraisal

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Performance Performance AppraisalAppraisal

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Performance AppraisalPerformance Appraisal

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

Performance Appraisals are yearly or monthly Performance Appraisals are yearly or monthly evaluations given to employees.evaluations given to employees.

They evaluate the needs of the employee and They evaluate the needs of the employee and supervisor.supervisor.

Performance Appraisal is the process by which Performance Appraisal is the process by which organizations evaluate employee job performance.organizations evaluate employee job performance.

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Uses of Performance AppraisalUses of Performance Appraisal

Raises, Merit Pay, BonusesRaises, Merit Pay, Bonuses

Personnel Decisions (e.g. Personnel Decisions (e.g. promotion, transfer, dismissal)promotion, transfer, dismissal)

Identification of Training needsIdentification of Training needs

Research purposes (e.g. Research purposes (e.g. assessing the worth of selection assessing the worth of selection teststests

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Steps in performance appraisalSteps in performance appraisal

Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal dataFor appropriate purpose

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Objective of Performance Objective of Performance AppraisalAppraisal

To help better current performancesTo help better current performances

To help in development of the employee.To help in development of the employee.

To determine training and development To determine training and development needs.needs.

To give employee feedback and counsel To give employee feedback and counsel themthem

To review performance for salary To review performance for salary purposes.purposes.

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Process of Performance AppraisalProcess of Performance Appraisal

Setting performance

standardsTaking correctivestandards

Discussingresults

Comparing standards

Measuringstandards

Communicatingstandards

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Issues in appraisal systemIssues in appraisal system

Appraisal Design?

Formal and informal

What methods?

When to evaluate?

What to evaluate?

Whose performance?

Who are the raters?

What problems?

How to solve?

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Benefits of Performance Benefits of Performance AppraisalAppraisal

For the AppraiseeFor the Appraisee

For the ManagementFor the Management

For the OrganizationFor the Organization

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Benefits of Performance AppraisalBenefits of Performance Appraisal

For the AppraiseeFor the AppraiseeBetter understanding of his role in the organization – what is Better understanding of his role in the organization – what is expected and what needs to be done to meet those expected and what needs to be done to meet those expectationexpectation

Clear Understanding of his strengths & weaknesses to Clear Understanding of his strengths & weaknesses to develop himself into a better performer in futuredevelop himself into a better performer in future

Increased motivation, job satisfaction, and self – esteemIncreased motivation, job satisfaction, and self – esteem

Opportunity to discuss work problems and how they can be Opportunity to discuss work problems and how they can be overcomeovercome

Opportunity to discuss aspirations and any guidance, Opportunity to discuss aspirations and any guidance, support or training needed to fulfill those aspirationssupport or training needed to fulfill those aspirations

Improved working relationships with supervisorsImproved working relationships with supervisors

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For the ManagementFor the ManagementIdentification of performers and non-performers and their Identification of performers and non-performers and their development towards better performancedevelopment towards better performance

Opportunity to prepare employees for assuming higher Opportunity to prepare employees for assuming higher responsibilities responsibilities

Opportunity to improve communication between the Opportunity to improve communication between the employees and managementemployees and management

Identification of training and development needsIdentification of training and development needs

Generation of ideas for improvements Generation of ideas for improvements

Better identification of potential and formulation of career Better identification of potential and formulation of career plansplans

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For the OrganizationFor the OrganizationImproved performance throughout the organization Improved performance throughout the organization

Creation of a culture of continuous improvement and Creation of a culture of continuous improvement and successsuccess

Conveying the message that people are valuedConveying the message that people are valued

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Methods of Performance Methods of Performance AppraisalAppraisal

Individual Evaluation Individual Evaluation MethodsMethods

Multiple Person Multiple Person Evaluation MethodsEvaluation Methods

Other MethodsOther Methods

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Methods of Performance AppraisalMethods of Performance Appraisal Individual Evaluation MethodsIndividual Evaluation Methods

Confidential reportConfidential report

Essay evaluationEssay evaluation

Critical incidentsCritical incidents

ChecklistChecklist

Graphic rating scaleGraphic rating scale

Behaviorally anchored rating scale (BARS)Behaviorally anchored rating scale (BARS)

Forced choice methodForced choice method

Management by Objective (MBO)Management by Objective (MBO)

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Methods of Performance AppraisalMethods of Performance Appraisal Multiple Person Evaluation MethodsMultiple Person Evaluation Methods

RankingRanking

Paired comparisonPaired comparison

Forced distributionForced distribution

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Methods of Performance AppraisalMethods of Performance Appraisal Other MethodsOther Methods

Group AppraisalGroup Appraisal

Field review techniqueField review technique

3603600 0 Appraisal SystemAppraisal System

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Individual Evaluation MethodsIndividual Evaluation Methods

Confidential ReportConfidential Report

Descriptive report Descriptive report

Prepared at the end of the yearPrepared at the end of the year

Prepared by the employee’s immediate supervisorPrepared by the employee’s immediate supervisor

The report highlights the strengths and weaknesses of The report highlights the strengths and weaknesses of

employeesemployees

Prepared in Government organizationsPrepared in Government organizations

Does not offer any feedback to the employeeDoes not offer any feedback to the employee

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Essay EvaluationEssay Evaluation The rater is asked to express the strong as well as The rater is asked to express the strong as well as

weak points of employee’s behaviorweak points of employee’s behavior

The rater considers the employee’s :The rater considers the employee’s :

Job knowledge and potentialJob knowledge and potential

Understanding of company’s programs, policies, Understanding of company’s programs, policies,

objectives etcobjectives etc

Relation with co-workers and supervisorsRelation with co-workers and supervisors

Planning, organizing and controlling abilityPlanning, organizing and controlling ability

Attitude and perceptionAttitude and perception

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Critical IncidenceCritical Incidence

Manager prepares lists of statements of very effective Manager prepares lists of statements of very effective

and ineffective behavior of an employeeand ineffective behavior of an employee

These critical incidents represent the outstanding or These critical incidents represent the outstanding or

poor behavior of the employeespoor behavior of the employees

The manager periodically records critical incidents of The manager periodically records critical incidents of

employee’s behavioremployee’s behavior

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Checklist MethodChecklist MethodSimple checklist methodSimple checklist method

Weighted checklist methodWeighted checklist method

Forced choice methodForced choice method

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Checklist MethodChecklist MethodSimple Checklist MethodSimple Checklist Method

Is employee regular Is employee regular Y/N Y/N

Is employee respected by subordinate Y/NIs employee respected by subordinate Y/N

Is employee helpfulIs employee helpful Y/N Y/N

Does he follow instruction Does he follow instruction Y/N Y/N

Does he keep the equipment in orderDoes he keep the equipment in order Y/N Y/N

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Checklist MethodChecklist MethodWeighted Checklist MethodWeighted Checklist Method

weightsweights performance rating performance rating

(scale 1 to 5 )(scale 1 to 5 )

RegularityRegularity 0.50.5

LoyaltyLoyalty 1.51.5

Willing to helpWilling to help 1.51.5

Quality of workQuality of work 1.51.5

RelationshipRelationship 2.02.0

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Checklist MethodChecklist MethodForced Choice MethodForced Choice Method

CriteriaCriteria RatingRating

1.Regularity on the job1.Regularity on the job MostMost LeastLeastAlways regularAlways regular

Inform in advance for delayInform in advance for delay

Never regularNever regular

Remain absentRemain absent

Neither regular nor irregularNeither regular nor irregular

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Graphic Rating ScaleGraphic Rating Scale

A form is used to evaluate the performance of the A form is used to evaluate the performance of the

employeesemployees

A variety of traits may be used in this device, the most A variety of traits may be used in this device, the most

common being quality and quantity of workcommon being quality and quantity of work

Easy to understand and use.Easy to understand and use.

Permits statistical tabulation of scores of employeesPermits statistical tabulation of scores of employees

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Behaviorally Anchored Rating Scale (BARS)Behaviorally Anchored Rating Scale (BARS)Step 1.Step 1. Identify critical incidentsIdentify critical incidents

Step 2.Step 2. Select performance Select performance dimensiondimension

Step 3.Step 3. Retranslate the incidentsRetranslate the incidents

Step 4.Step 4. Assign scales to incidentsAssign scales to incidents

Step 5.Step 5. Develop final instrumentDevelop final instrument

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Forced Choice MethodForced Choice Method

This method uses several sets of paired phrases, two This method uses several sets of paired phrases, two

of which may be positive and two negativeof which may be positive and two negative

The rater is asked to indicate which of the four phrases The rater is asked to indicate which of the four phrases

is the most and least descriptive of a particular workeris the most and least descriptive of a particular worker

Favorable qualities earn plus credit and unfavorable Favorable qualities earn plus credit and unfavorable

ones earn the reverseones earn the reverse

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Management by objectives (MBO)Management by objectives (MBO)

MBO emphasizes collectively set goals that are tangible, MBO emphasizes collectively set goals that are tangible,

verifiable, and measurableverifiable, and measurable

Focuses attention on goals rather than on methodsFocuses attention on goals rather than on methods

Concentrates on Key Result Areas (KRA)Concentrates on Key Result Areas (KRA)

Systematic and rational technique that allows management Systematic and rational technique that allows management

to attain maximum results from available resources by to attain maximum results from available resources by

focusing on achievable goalsfocusing on achievable goals

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Management by objectives (MBO) - ContManagement by objectives (MBO) - Cont Key Element of MBOKey Element of MBO

Arranging organizational goals in a means-ends chainArranging organizational goals in a means-ends chain

Engaging in joint goal settingEngaging in joint goal setting

This process has the following steps:This process has the following steps:

Identify KRAsIdentify KRAs

Define expected resultsDefine expected results

Assign specific responsibilities to employeesAssign specific responsibilities to employees

Define authority and responsibility relationshipDefine authority and responsibility relationship

Conducting periodic progress reviewConducting periodic progress review

Conducting annual performance reviewConducting annual performance review

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Multiple Person Evaluation MethodsMultiple Person Evaluation MethodsRanking methodRanking method

The evaluator rates the employee from highest to lowest on some The evaluator rates the employee from highest to lowest on some

overall criteriaoverall criteria

Paired comparison methodPaired comparison method

Each worker is compared with all other employees in a groupEach worker is compared with all other employees in a group

For several traits paired comparisons are made, tabulated and then For several traits paired comparisons are made, tabulated and then

rank is assigned to each workerrank is assigned to each worker

This method is not applicable when the group is largeThis method is not applicable when the group is large

Forced Distribution MethodsForced Distribution Methods

The rater is asked to appraise the employee according to predetermined The rater is asked to appraise the employee according to predetermined

distribution scale.distribution scale.

The worker is placed between two extremes of “good” and “bad” performance.The worker is placed between two extremes of “good” and “bad” performance.

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Group AppraisalGroup Appraisal

Employee is appraised by a group of Employee is appraised by a group of

appraisers.appraisers.

The group consists of :The group consists of :

Immediate supervisor of the employeeImmediate supervisor of the employee

Other supervisors who have close contact with the Other supervisors who have close contact with the

employee’s work.employee’s work.

Manager or head of the departments.Manager or head of the departments.

Consultants or Clients Consultants or Clients

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Field Review TechniqueField Review Technique

The appraiser goes to the field and obtains the The appraiser goes to the field and obtains the

information about work performance of the employee by information about work performance of the employee by

way of questioning the said individual, his peer group, and way of questioning the said individual, his peer group, and

his superiorshis superiors

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36036000 Appraisal System Appraisal System360 Degree Performance : 360 Degree Performance : Combination of self, peer, supervisor, and Combination of self, peer, supervisor, and

subordinate performance evaluationsubordinate performance evaluation

It is a systematic collection and feedback of performance data It is a systematic collection and feedback of performance data

on an individual or group, derived from a number of on an individual or group, derived from a number of

stakeholders stakeholders

Data is gathered and fed back to the individual participant in a Data is gathered and fed back to the individual participant in a

clear way designed to promote understanding, acceptance and clear way designed to promote understanding, acceptance and

ultimately behaviorultimately behavior

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Appraisal Interview and Feedback - Let Appraisal Interview and Feedback - Let the Employee Know Where He Standsthe Employee Know Where He Stands

To help employees do a better job by clarifying what is To help employees do a better job by clarifying what is

expected of themexpected of them

To plan opportunities for development and growthTo plan opportunities for development and growth

To strengthen the superior-subordinate working To strengthen the superior-subordinate working

relationship by developing mutual agreement of goalsrelationship by developing mutual agreement of goals

To provide an opportunity for employees to express To provide an opportunity for employees to express

themselves on performance related issuesthemselves on performance related issues

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THANK YOUTHANK YOU

Any Any Questions??Questions??

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Performance Appraisal

Documents

performance appraisalraises

employee job performance

informalwhat methods

better performer

better performanceopportunity

employee feedback

job satisfaction

organization creation