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Performance Management and Appraisal

Performance Management is the mechanism that


ensures that the employee achieves the objectives set
by the organization and the organization thereby
achieves the objectives that it has set itself in its
strategic plan.
Performance Appraisal is a process of evaluating an
employees past and current performances relative to
the persons performance standards in terms
requirements of the job for purpose of placement of
selection of promotion & providing financial rewards.

Why Appraisal performance
There are several reasons to appraise subordinates
performance.

At first appraisals play or should play an integrated role in the
employees performance management process it does little
good to translate the employees strategic goals into specific
employees goals and then train the employees if you dont
periodically review your employees performance.
Second, the appraisal lets the boss and subordinate
develop a plan any deficiencies the appraisal might
unearthed and to reinforce the things the subordinate does
correctly.
Thirdly, appraisals should serve a useful career planning
purpose by providing the opportunity to review the
employees career plans in light of his or her exhibited
strength and weaknesses.
And last but not least, the appraisal almost always affects
the employees salary raise and promotion decisions.

The Supervisors Role
Appraising performance is both a difficult and an essential
supervisory skill. Supervisors must therefore be familiar
with basic appraisal technique, understand and avoid
problems that can cripple appraisals, and know how to
conduct appraisals fairly.

The performance evaluation should be based on the
performance expectations as outlined in the employees
job description. The process includes the following

Develop a Learning and Self-Development Plan
Observe and document performance
Develop action plans to address gaps
Provide on-going coaching and development
Employee completes self-evaluation
Manager reviews the employees accomplishments, gaps
and development and self-evaluation
Manager completes evaluation and plans for meeting with
employee

Steps in Appraising performance

1. Identify the job
First make sure you define you employees job and
performance criteria. Define the job means making sure
that you and your subordinate agree on his or her duties
and job standards and appraisal method you will use.
2. Job Performance Evaluation
That is comparing the performance of the work of
employees with the standard model. In this step, it can use
many methods to assess different job performance such as:

Rated rotation, Compare the pair, Stored critical method,
Method of narrative form

3. Provide feedback:
Can be done once when job performance evaluation ends
or can do the job several times throughout the process of
evaluating the implementation of the work of employees,
this depends on the nature and characteristics of the job.

Behaviorally Anchored Rating Scales
Behaviorally anchored rating scales (BARS) are rating
scales whose scale points are defined by statements of
effective and ineffective behaviors.
The procedure for BARS is usually five steps:
1. Generate Critical Incidents
2. Develop Performance Dimensions
3. Reallocate Incidents
4. Scale of Incidents
5. Develop Final Instrument

Management by Objectives
Management by objectives (MBO) is a systematic and
organized approach that allows management to focus on
achievable goals and to attain the best possible results
from available resources.

The term MBO almost always refers to a comprehensive
organization-wide goal setting and appraisal program that
consist of six main steps:

1. Set the organizations goals.
2. Set departmental goals.
3. Discuss and allocate department goals.
4. Define expected results (set individual goals).
5. Performance review and measure the results.
6. Provide feedback.
Electronic Performance Monitoring
Electronic performance monitoring (EPM) means using
technology to monitor the activities of employees at work,
which includes the productivity output and how
effectively the employees have utilized the effective work
time.
It has had a negative effect on the employees like:

Increased stress levels
Physical problems like stiffness in the shoulders and back
pain
Reduced the job satisfaction in the employees
Other psycho-somatic illness complaints include anxiety,
fatigue or exhaustion and depression
Privacy intrusion (mails of the employee monitored by the
employer)
Low cost of quality and a low satisfaction rating
Workers are always at a pressure to perform better due to
the increased feelings of evaluation

Potential Appraisal Problems
Many performance appraisal methods have been severely
criticized. The potential problems are as follows:
1. Lack of Objectivity
2. Halo Error
3. Leniency/Strictness
4. Central Tendency
5. Recent Behavior Bias
6. Personal Bias
7. Manipulating the Evaluation
8. Ineffective organizational policies and practices


Five Guidelines for Holding Effective
Appraisals
Know the problems
Use the right appraisal tool
Keep a Diary
Get Agreement on plan
Be fair
Performance Appraisal versus Performance
Management

In comparing performance management and performance
appraisal, the distinction is the contrast between a year end
event the completion of the appraisal form and a process that
starts the year with performance planning and is integral to the
way people are through the year.

Additionally, whilst PM is intended to establish and nurture a
constant relationship between manager and individuals, PA is
based on forms designed and developed by the HR function
which, in many occasions, are destined to be forgotten in some
remote organizations archive.


Basic Building Blocks of Performance
Management
The company with an effective performance management
system will instead drive its strategic objectives right
through the organization down to the shop floor.
We can summarize performance managements basic
building blocks as follow:
1. Goal alignment
2. Ongoing performance monitoring
3. Ongoing feedback

Recommendations to improve performance
Management and Appraisal

The performance appraisal system has to be based on clearly
specified and measurable standards and indicators. Goals have to be
consistent and mutually decided by the employee and management.
Organization should follows some strategies to improve performance
Management and Appraisal

1. 360 Degree performance appraisal method
2. Management by objectives
3. Work standard approach
4. Work standard approach

Conclusion
Performance management is an effective way for a
company to achieve their goal also a good way to get
better performance from the employees.
Performance appraisals are one of the most essential
supervisory tools to communicate expectations, provide
feedback, plan work, acknowledge contributions, and help
employees gain the skills to be successful. As an
organization is committed to do away with disparity and
establish justice in the economy, trade, commerce and
industry, build socio economic infrastructure and create
employment opportunities.

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