& Appraisal System

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Why Performance Management & Appraisal System?

Performance Management Model

MBO

Source of Drive

Tips for Successful PA System

Performance Management & Appraisal System

Guideline

Uses of Performance Appraisals Outcomes

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GOAL SETTING

RECRUITMANT VISION MISSION OBJECTIVES STRATEGY MOTIVATION

TRAINING
ROLE CLARITY COACHING & FEEDBACK PERFORMANCE APPRAISAL REWARDS CAPABILITIES AND TRAITS

PERFORMANCE

ORGANIZATIONAL POLICIES

INDIVIDUAL LEVEL FACTORS

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Organizational Vision Dream of the founder, what the company should be? Mission Objectives / Goals Strategy
1.

How to allocate the resources to achieve the vision?

Long term objectives: Spread over more than one year Short Term Objectives: Achievable within one year The formulization of organizational Mission, Goals and objectives as well as action plan for achievement, that explicitly recognize the competition and impact of outside environmental forces An action plan that a company formulates to achieve the objectives through superior performance

2.

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Performance Appraisal System Performance Appraisal (PA) is the process of Measuring, Evaluating and Recording employees performance relative to defined expectations and providing feedback to the employees. It is an attempt to address the matter of appraising employees performance in a comprehensive manners. Innovation, Total Quality Management, High Performance Work Teams and Participative Management Approach have an impact on the performance of individuals.
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Develop a formal appeal process

Attend to legal considerations

Use job analysis for performance standards

Use more than one rater where possible Document the process carefully

Appraisal System

Communicate performance standards

Evaluate on specific behaviors

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Behavioral PA Methods

Checklist: 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 Company Policies and Objectives, Initiative and Judgment, Supervisory or Technical Potential and Health Safety & Environment etc. This covers the 25% weightage in the performance rating.
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PA Against JD Performance of the individual is evaluated against the issued and agreed job description. JD is set of interrelated tasks assigned to the concerned. JD also communicates the expectation level of the Management from the individual. It covers the 50% weight-age in the Performance rating.

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Result Oriented PA Methods Management By Objectives MBO: This method was introduced by Peter Duckers. This approach has following three stages:
1. Setting Organizational Objectives 2. 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.

2. 3.

4.

5.

PA should be based on a thorough Job Analysis resultantly updated Job Descriptions and Job Specifications Performance standards should be developed from the Job Analysis as input into the PA. PA should be evaluated against specific behaviors as opposed to evaluating overall job performance using one or few global measures. The PA review discussion should be a two way communication between the evaluator and the employee The PA should be used not only as a mean of evaluating performance but also as a mean of motivating and developing the employees.

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Guideline for Conducting a Result Oriented Performance Appraisal Contd

6.
7.

8. 9.

10.

The purpose of the PA and the objective of the organization must be considered carefully before deciding a PA method. Training program should be implemented to: Help raters avoid common perceptual errors in evaluating Help raters to improve their performance review skills The link between PA System and organizational long term strategic plans should be clearly defined. A successful PA System should be built around clear objectives, have the support of both Management and employees, be flexible enough to adopt the organizational changes and foster open discussion between evaluator / supervisors and employees. The validity of PA System should be examined at regular intervals.
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Performance appraisal process

1. 2. 3. 4. 5. 6.

Job analysis results can be used to Set performance standards / KPIs that can be used to Design a performance appraisal system that is used to.. Assess performance through A performance review during which participants Discuss a future plan of action.
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Tips for a successful performance review for raters:

1.
2.

3.

4.

5.

Give the employees fair notice when the review is to be taken place. Ask the employees to think about and evaluate their own performance prior to join the review session. Get prepared for the review by examining information available about the employees performance. Seek additional information if required. Begin the session positively to set the employees on ease. Explain the format of the performance review session.
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Tips for a successful performance review for raters

contd..

6.

7.

8. 9.

10.

Make the employees aware of the uses of the PA results such as T & D / Promotion / Transfer or feedback decisions. If needed set a second meeting the non performance related issues such as the salary increase, future goals or development suggestions Review the key performance indicators KPIs Encourage the employees to participate, especially when their performance differs with the expectation / pre set goals. Make sure to praise the employees for their accomplishments during the evaluation period

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Tips for a successful performance review for raters 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 that have caused the employee to be less effective then desired level. 13. Make sure that the employee fully understand the appraisal system / objectives 14. End the discussion on a positive note
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Managers and Supervisors Traditional source of appraisal information Peers and Team Members Best at identifying leadership potential and interpersonal skills Subordinates Provide feedback to supervisors 360 degree Internal and External Customers Internal customers include anyone inside the organization who depends upon an employees work output Self-appraisals Increases workers involvement in appraisal 360 degree appraisal Uses multiple sources to gain comprehensive perspective of ones performance AMJAD BHATTI

Outcomes of performance appraisals may be used 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 deficiencies 7. Feed back to the employees

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Thank You
fahad_mehran@hotmail.com
0300 946 8738

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