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 standards performance appraisal

escribes wor! " Personnel Re#uirement $f a particular job

%ranslate job escribes the &nto levels of Job relevant %o acceptable $r unacceptable strengths and wea!ness of performance 'ach individual

Question arises?

(hy do we measure performance) 'ffective performance appraisal systems *ow do we measure performance)

Characteristics

&t is a step by step process &t e+amine the employee strengths and wea!nesses ,cientific and objective study $ngoing and continuous process ,ecure information for ma!ing correct decisions on employees

Needs and Objectives:

Provide feedbac! about employees Provide database iagnose the , " ( of individuals Provide coaching, counseling, career planning to subordinates evelop positive relation and reduce grievance -acilitates research in personnel management

Appraisal Benefits (cont.

Appraisals offer employees:

irection -eedbac! &nput .otivation

Appraisal Benefits

Appraisals offer the company:

ocumentation 'mployee evelopment -eedbac! /egal protection .otivation system

!h" Appraisals Are #mportant

Recognize accomplishments Guide progress Improve performance

!h" #mportant (cont.

Review performance ,et goals &dentify problems iscuss career advancement

$teps in performance appraisal

%stablishin& job standards 'esi&nin& an appraisal pro&ramme Appraise performance Performance intervie( )se appraisal data *or appropriate purpose

Process of PA
+a,in& corrective standards $ettin& performance standards Communicatin& standards

'iscussin& results Comparin& standards

-easurin& standards

#ssues in appraisal s"stem

*ormal and informal !hat methods? !hose performance? !ho are the raters?

!hen to evaluate? Appraisal 'esi&n?

!hat to evaluate? .o( to solve?

!hat problems?

!hat to evaluate? (Philip -odel

. Potential 0 0 Problem children Planned separation stars $ocial citi/en .

Performance

.o( PA contribute to firm1s competitive advanta&es

#mprovin& performance 2alues and behavior Competitive advanta&e -inimi/in& dissatisfaction And turnover %nsurin& le&al competence -a,in& correct decision

Problems in performance appraisal

01

'rrors &n rating *alo effects ,tereotyping 2entral tendency 2onstant error Personal bias ,pill over effect

Problems in performance appraisal (Cont1d

01 31 51 61 71

&ncompetence 4egative approach .ultiple objectives Resistance /ac! of !nowledge

%ssentials of an effective appraisal s"stem

.utual trust 2lear objectives ,tandardi8ations %raining Job relatedness ocumentation -eedbac! and participation &ndividual differences Post appraisal review Review and appeal

Appraisals and 'iscrimination

%itle 9&& A A $ther fair employment /aws

'iscrimination (cont.

-ailure to communicate standards -ailure to give timely feedbac! -ailure to allow employees to correct performance &nconsistency in measuring performance -ailure to document performance objectively

Appraisal *orms

efine performance e+pectations escribe measurement tools :se a rating system 2over specific e+amples ,et measurable goals

-easure Performance

.easurement systems need to be: ,pecific -air 2onsistent 2lear :seful

-easure Performance (cont.

,ystems can be: 4umerical %e+tual .anagement by $bjective (.;$) ;ehavior oriented

'ocument Performance

.a!e sure documentation is objective ocument performance of all employees Provide complete and accurate information ocument performance on a regular basis

$et 3oals4.

;ased on job re#uirements Realistic .easurable $bservable 2hallenging Prioriti8ed

%mplo"ee #nput

'mployees ta!e an active role:

,etting goals esigning action plans &dentifying strengths and wea!nesses 'mployees participate in the PA meeting

Preparation
'mployees: Review performance %hin! about new goals

Preparation (cont.
,upervisors:

Review performance 2omplete written appraisal %hin! about new goals ,chedule time and place

$tart the -eetin&

/ay out agenda %al! about money 'ncourage input <ive good news first

'urin& the -eetin&

Review performance: ;ased on previous goals 4oting strengths and accomplishments &dentifying areas for improvement

Presentation +ips

-ocus on the professional <ive objective e+amples &nvite response /isten actively 2reate =we> mentality

'urin& the -eetin& (cont.

,et goals: ;ased on company goals ;uilding on areas that need improvement

%nd the -eetin&

'ncourage good performance /ay out action plan 2ommunicate outcome of goals not met 2onfirm understanding

Continuous *eedbac,

-ormal appraisals &nformal appraisals $pen communication

5eco&ni/e 3ood Performance

9erbal Public %angible .onetary

#dentif" Poor Performance

Act early %a!e the right approach eal with employee reaction *andle continued poor performance

'iscipline Poor Performance

Recogni8e problems %al! with employee -ollow company policy

.andle .ard Cases

Reviewing highly emotional employees Rating former peers

6e" Points to 5emember

?ou must conduct objective appraisals on a scheduled basis1 Appraisals tell employees how they@re doing and how they can improve1 Appraisals help create a system of motivation and rewards based on performance1

Performance Appraisal -ethods

#ndividual %valuation -ethods 2onfidential report 'ssay evaluation 2ritical incidents 2hec!lists <raphic rating scale ;ehaviorally anchored rating scale .;$

Critical #ncident method

'+: A fire, sudden brea!down, accident (or!ers A ; 2 ' reaction informed the supervisor immediately ;ecome an+ious on loss of output tried to repair the machine 2omplained for poor maintenance was happy to forced test scale 7 6 5 3 0

Chec,list method
A,imple chec!list method A(eighted chec!list method A-orced choice method

$imple chec,list method:

&s employee regular &s employee respected by subordinate &s employee helpful oes he follow instruction oes he !eep the e#uipment in order ?B4 ?B4 ?B4 ?B4 ?B4

!ei&hted chec,list method

weights Regularity /oyalty (illing to help Duality of wor! Relationship C17 017 017 017 31C performance rating (scale 0 to 7 )

*orced choice method

2riteria 01Regularity on the job AAlways regular A&nform in advance for delay A4ever regular ARemain absent A4either regular nor irregular .ost Rating /east

3raphic 5atin& $cale

A A 2ontinuous Rating ,cale iscontinuous Rating ,cale 'mployee nameEEEEEEEEE epttEEEEEEE Rater@s name EEEEEEEEEEE ateEEEEEEEE FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF '+c1 <ood Acceptable -air Poor 7 6 5 3 0 E ependability &nitiative $verall output Attendance Attitude 2ooperation %otal score Continuous 5atin& $cale

#ndifferent
Attitude

%nthusiastic

No #nterest

#nterested

2er" enthusiastic

'iscontinuous 5atin& $cale

BA5$( behaviorall" Anchored ratin& scale

,tep 01 ,tep 31 ,tep 51 ,tep 61 ,tep 71 &dentify critical incidents ,elect performance dimension Retranslate the incidents Assign scales to incidents evelop final instrument

.;$ Process

,et organi8ational goals efining performance target Performance review feedbac!

Performance Appraisal .ethods

<roup Appraisal

Ran!ing Paired comparison -orced distribution Performance tests -ield review techni#ue

Ran!ing method
'mployee A ; 2 Ran! 3 0 5 7 ' 6

Paired comparison method

A ; 2 A F G G F ' F ; F F G F F 2 F F F F F G G G F F ' -inal Ran! G 5 G G G F 3 0 6 7

4o of Positive evaluation %otal no1 of evaluation H 0CC I employee superior evaluation

-orced istribution method

No. of emplo"ees 789 :89 ;89 :89 789 %<cellent poor Belo( avera&e &ood avera&e *orce distribution curve

-ield review method

Performance 'imension /eadership 2ommunication &nterpersonal s!ills ecision ma!ing %echnical s!ills .otivation subordinate peers J J J J J J J J J J J J J J superior customer J

Performance criteria for e+ecutives

-or top managers

Return on capital employed 2ontribution to community development egree of upward communication from middleFlevel e+ecutives egree of growth and e+pansion of enterprise1

-or middle level managers

epartmental performance 2oordination among employees egree of upward communication from supervisors egree of clarity about corporate goals and policies

-or supervisors

Duality and #uantity of output in a given period /abor cost per unit of output in a given period .aterial cost per unit in a given period Rate of absenteeism and turnover of employees 4o of accidents in a given period