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 Translate job Into levels of To acceptable Or unacceptable performance performance appraisal Describes the Job relevant strengths and weakness of Each individual

Describes work & Personnel Requirement Of a particular job

Question arises?

Why do we measure performance? Effective performance appraisal systems How do we measure performance?

Characteristics

It is a step by step process It examine the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees

Needs and Objectives:

Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management

Appraisal Benefits (cont.)

Appraisals offer employees:

Direction Feedback Input Motivation

Appraisal Benefits

Appraisals offer the company:

Documentation Employee Feedback Legal

Development

protection Motivation system

Why Appraisals Are Important

Recognize accomplishments Guide progress Improve performance

Why Important (cont.)

Review performance Set goals Identify problems Discuss career advancement

Steps in performance appraisal

Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose

Process of PA
Taking corrective standards Setting performance standards Communicating standards

Discussing results Comparing standards

Measuring standards

Issues in appraisal system

Formal and informal What methods? Whose performance? Who are the raters?

When to evaluate? Appraisal Design?

What to evaluate? How to solve?

What problems?

What to evaluate? (Philip Model)

H Potential L L Problem children Planned separation Performance stars Social citizen H

How PA contribute to firms competitive advantages

Improving performance Values and behavior Competitive advantage Minimizing dissatisfaction And turnover Ensuring legal competence Making correct decision

Problems in performance appraisal

1.

Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect

Problems in performance appraisal (Contd)

2. 3. 4. 5. 6.

Incompetence Negative approach Multiple objectives Resistance Lack of knowledge

Essentials of an effective appraisal system

Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal

Appraisals and Discrimination

Title VII ADA Other fair employment Laws

Discrimination (cont.)

Failure to communicate standards Failure to give timely feedback Failure to allow employees to correct performance Inconsistency in measuring performance Failure to document performance objectively

Appraisal Forms

Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals

Measure Performance

Measurement systems need to be: Specific Fair Consistent Clear Useful

Measure Performance (cont.)

Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented

Document Performance

Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis

Set Goals.

Based on job requirements Realistic Measurable Observable Challenging Prioritized

Employee Input

Employees take an active role:

Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting

Preparation
Employees: Review performance Think about new goals

Preparation (cont.)
Supervisors:

Review performance Complete written appraisal Think about new goals Schedule time and place

Start the Meeting

Lay out agenda Talk about money Encourage input Give good news first

During the Meeting

Review performance: Based on previous goals Noting strengths and accomplishments Identifying areas for improvement

Presentation Tips

Focus on the professional Give objective examples Invite response Listen actively Create we mentality

During the Meeting (cont.)

Set goals: Based on company goals Building on areas that need improvement

End the Meeting

Encourage good performance Lay out action plan Communicate outcome of goals not met Confirm understanding

Continuous Feedback

Formal appraisals Informal appraisals Open communication

Recognize Good Performance

Verbal Public Tangible Monetary

Identify Poor Performance

Act early Take the right approach Deal with employee reaction Handle continued poor performance

Discipline Poor Performance

Recognize problems Talk with employee Follow company policy

Handle Hard Cases

Reviewing highly emotional employees Rating former peers

Key Points to Remember

You must conduct objective appraisals on a scheduled basis. Appraisals tell employees how theyre doing and how they can improve. Appraisals help create a system of motivation and rewards based on performance.

Performance Appraisal Methods

Individual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO

Critical Incident method

Ex: A fire, sudden breakdown, accident Workers A B C D E reaction informed the supervisor immediately Become anxious on loss of output tried to repair the machine Complained for poor maintenance was happy to forced test scale 5 4 3 2 1

Checklist method
Simple checklist method Weighted checklist method Forced choice method

Simple checklist method:

Is employee regular Is employee respected by subordinate Y/N Is employee helpful Does he follow instruction Does he keep the equipment in order Y/N Y/N Y/N Y/N

Weighted checklist method

weights Regularity Loyalty Willing to help1.5 Quality of work Relationship 0.5 1.5 1.5 2.0 performance rating (scale 1 to 5 )

Forced choice method

Criteria 1.Regularity on the job Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular Rating Most Least

Graphic Rating Scale

Continuous Rating Scale Discontinuous Rating Scale Employee name_________ Deptt_______ Raters name ___________ Date________ -----------------------------------------------------------------------Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale

Indifferent
Attitude

Enthusiastic

No Interest

Interested

Very enthusiastic

Discontinuous Rating Scale

BARS( behaviorally Anchored rating scale)

Step 1. Step 2. Step 3. Step 4. Step 5. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument

MBO Process

Set organizational goals Defining performance target Performance review feedback

Performance Appraisal Methods

Group Appraisal

Ranking Paired comparison Forced distribution Performance tests Field review technique

Ranking method
Employee A B C D E Rank 2 1 3 5 4

Paired comparison method

A B C D E A + + B + C D + + + E Final Rank + 3 + + + 2 1 4 5

No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Forced Distribution method

No. of employees 10% 20% poor 40% 20% 10% Excellent Below average good average Force distribution curve

Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making Technical skills Motivation subordinate peers ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ superior customer ^

Performance criteria for executives

For top managers

Return on capital employed Contribution to community development Degree of upward communication from middle-level executives Degree of growth and expansion of enterprise.

For middle level managers

Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies

For supervisors

Quality and quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period