performanceappraisal group1b

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Group 1B.



PA is the method of evaluating thebehaviour of the employees in the

workplace, normally including

both quantitative and qualitative

aspect of the job.

How the employee is performing

How the employee can develop

What the superior can do to make it

happen

How the job is going

What is Performance Appraisal



Performance Appraisal :

refers to all those procedures that are

used to evaluate the personality,performance, potential, of its group

members



• Provide information about the performance ranks.

Decision regarding salary revision, confirmation,

promotion and demotions.

• Provide feedback about level of achievement and

behaviour of the subordinate.

• Provide information which helps to counsel the

employees.

• Provide information to diagnose the deficiency of the

employees.

• Provide training and development needs of the

employees.

WHY conduct a PerformanceAppraisal



• The performance review must occur atleastonce in a year. Some companies review twice in

a year.• However, as a part of Performance

Management , the performance review is acontinuing, ongoing activity.

WHEN to conduct a PerformanceAppraisal



• Establish a more effective two way communication

• Set performance objectives

• Help improve current performance

• Assess past performance

• Provide feedback on performance

• Identify training & development needs

• Allocate rewards

• Identify staff with promotional possibilities

• Assist in career planning decisions

OBJECTIVES of PerformanceAppraisal



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 decisionson employees



Needs and Objectives:

Provide feedback about employees Provide database

Diagnose the S & W of individuals

Provide coaching, counseling, career planning tosubordinates

Develop positive relation and reduce grievance

Facilitates research in personnel management



• Immediate Supervisor

• Higher Management

• Self-Appraisals

• Peers (Co-Workers)

• Evaluation Teams

• Customers

• “360° Appraisals

WHO are involved in Performance

Appraisal





•Regularity of theAttendance.

• Ability to work

individually or in group.

• Leadership skills.

• Initiative, Technical skills.

• Ability to grasp new things.

• Area of interest.

• Attitude.

• Job Knowledge.

Content of Performance Management

•Judgmental Skills.

• Area of improvement.

• Past Achievement.

• Honesty and sincerity.

• Innovativeness

• Cost & Time consciousness

• Communication



Appraisal Benefits

Appraisals offer the

company:

Documentation Employee Development

Feedback

Legal 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



Performance Appraisal Problems

Popularity Contest

Punitive Implications

Control Relinquishment

Stereotypes

Poor Training of Raters



Steps in performance appraisal

Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal data

For appropriate purpose



Process of PA

Setting

performance

standardsTaking corrective

standards

Discussing

results

Comparing

standards

Measuringstandards

Communicating

standards





Issues in appraisal system

Appraisal Design?

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?



What to evaluate? (Philip

Model)

Problem

children

Planned

separation

stars

Social

citizen

H

L H

L

Potential

Performance



How PA contribute to firm’s

competitive advantages

Improving

performance

Making correct

decision

Ensuring legal

competenceMinimizing dissatisfaction

And turnover

Values and behavior

Competitive

advantage



Problems in performance appraisal

1. Errors In rating

Halo effects

Stereotyping Central tendency

Constant error

Personal bias

Spill over effect



Problems in performance appraisal

(Cont’d)

2. Incompetence

3. Negative approach

4. Multiple objectives

5. Resistance

6. 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



Discrimination

Failure to communicate standards Failure to give timely feedback

Failure to allow employees to correct

performance Inconsistency in measuring performance

Failure to document performanceobjectively



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 regularbasis



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 andaccomplishments

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 notmet

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



Performance Appraisal Methods

Individual Evaluation Methods

Confidential report

Essay evaluation

Critical incidents

Checklists

Graphic rating scale

Behaviorally anchored rating scale

MBO



Group Appraisal

Ranking

Paired comparison

Forced distribution

Performance tests Field review technique





Traditionalmethods

1. Confidential report2. Essay evaluation3. Critical incidents4. Checklists

5. Graphic rating scale6. Straight Ranking

7. Paired comparison

8. Forced distribution

9. Grading system10.Field review technique

11.Nominations

12.Work samples




Modern methods

1. Assessment centre

2. Human resource accounting –

costs & contribution3. Behaviorally anchored rating scale4. MBO

5. 360º performance apparaisal



Traditional Methods of

Performance Appraisal. Graphic Rating Scales: This is the oldest andmost widely method used for performance

appraisal. The scales may specify five points, so a

factor such as job knowledge might be rated 1(poorly informed about work duties) to 5 (has

complete mastery of all phases of the job).



Quantity of work: Volume of work under normal workingconditions

Unsatisfatory(1)

Fair(2)

Satisfactory(3)

Good(4)

OutStading(5)

Quality of work: Neatness,thoroughness and accuracy of

work Knowledge of job A clear understanding of thefactors connected with the job

Attitude: Exhibits enthusiasmand cooperativeness on the job

Table: Typical Graphic Rating Scale

Employee Name................... Job title .................

Department ......................... Rate ...............

Data ..................................



Ranking Method

This is one of the oldest and simplesttechniques of performance appraisal. In thismethod, the appraiser ranks the employees

from the best to the poorest on the basis of their overall performance. It is quite useful fora comparative evaluation.



Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions forincreased sales and to have positive relationships with

customers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughoutthe year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by thesupervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roamaround purposelessly.



Paired Comparison Method

A better technique of comparison than thestraight ranking method, this method compares

each employee with all others in the group, one

at a time. After all the comparisons on the basisof the overall comparisons, the employees are

given the final rankings.

Forced distribution method



Forced distribution method

Forced ranking is a method of performanceappraisal to rank employee but in order of forced distribution.

Ch kli t M th d



Checklist Method

Another simple type of

individual evaluationmethod is the

checklist.Is the employee really interested in the task assigned? Yes/No

Is he respected by his colleagues (co-workers) Yes/No

Does he give respect to his superiors? Yes/No

Does he follow instructions properly? Yes/NoDoes he make mistakes frequently? Yes/No

Critical Incidence Method



Critical Incidence Method

Under this method, the manager prepares lists of statements of very effective and ineffective behavior of anemployee. These critical incidents or events represent theoutstanding or poor behavior of employees on the job .

July 20 – Mr. Paul patiently attended to the major customers complaint. He is polite, prompt, enthusiastic in

solving the customers’ problem. On the other hand the bad critical incident may appear asunder:

September 28 – Mr. Paul stayed 45 minutes over on hisbreak during the busiest part of the day. He failed toanswer the store manager’s call thrice.



Essay Method

This method asked managers / supervisors todescribe strengths and weaknesses of anemployee’s behavior.



Confidential Report

It is mostly used in government organizations. It

is a descriptive report prepared, generally at the

end of every year, by the employee’s immediate

superior. The report highlights the strengths andweaknesses of the subordinate.



Modern Methods



MBO

A process whereby the superior and

subordinates of the organization jointlyidentify its common objectives, define eachindividual’s major areas of responsibility.

1. Establishment of Goals

2. Setting the performance standard

3. Actual level of job attainment is comparedwith the goals agreed upon.

4. Establishing new goals and new strategies

for goals not previously attained.



PSYCHOLOGICAL APPRAISALS:

When psychologists are used for evaluations, they

asses an individual’s potential. The appraisal

consists of in-depth interviews, psychological

tests, discussions with supervisors and a review of other evaluations.



Assessment Centre

This not a technique of performance appraisal byitself. In fact, this is a system or organization

where assessment of several individual is done

by experts by using various techniques. Thesetechniques used role playing, case studies etc.



360 DEGREEFEEDBACK

Wh t i 360 DF?



What is 360 DF?

360 Degree Feedback is a multi - rater

feedback system where an individual is

assessed by a number of assessors including

his boss, direct reports, colleagues, internalcustomers and external customers

What is 360 DF?



InternalCustomers

“Boss”

Peers

External

Customers

TeamMembers

Self

Feedback

collected from

Using a specially

designed tool

Anonymously

C P bl A i t d ith C d ti



1. Halo/horn effect – employee’s

extreme competence in one

area “shines” over all others.

Conversely, employee does

poorly in one area and this

overshadows all areas.

2. Bias – own prejudices {race,

national origin, gender,

appearance, etc.} influence theappraisal

3. Comparison Rating –

contrasting one employee with

another

Common Problems Associated with Conductingthe Appraisal

Common Problems Associated with Conducting the



3. Central Tendency – rate everyone as average

4. Recency Effect – focusing on recent

performance instead of entire year

5. Personal Prejudice – If the rater dislikes onegroup or employees, he may rate them at the

lower end.

6. Favoritism – evaluating friends or those whodon’t make waves, etc. more favorably than

others

Common Problems Associated with Conducting the

Appraisal



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

Key Points to Remember



Key Points to Remember

You must conduct objective appraisals on a scheduledbasis.

Appraisals tell employees how they’re doing and how

they can improve.

Appraisals help create a system of motivation and

rewards based on performance.





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performanceappraisal group1b