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Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
%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
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
Process of PA
+a,in& corrective standards $ettin& performance standards Communicatin& standards
-easurin& standards
!hat problems?
Performance
'rrors &n rating *alo effects ,tereotyping 2entral tendency 2onstant error Personal bias ,pill over effect
.utual trust 2lear objectives ,tandardi8ations %raining Job relatedness ocumentation -eedbac! and participation &ndividual differences Post appraisal review Review and appeal
'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
'ocument Performance
.a!e sure documentation is objective ocument performance of all employees Provide complete and accurate information ocument performance on a regular basis
$et 3oals4.
%mplo"ee #nput
,etting goals esigning action plans &dentifying strengths and wea!nesses 'mployees participate in the PA meeting
Preparation
'mployees: Review performance %hin! about new goals
Preparation (cont.
,upervisors:
Review performance 2omplete written appraisal %hin! about new goals ,chedule time and place
/ay out agenda %al! about money 'ncourage input <ive good news first
Presentation +ips
-ocus on the professional <ive objective e+amples &nvite response /isten actively 2reate =we> mentality
,et goals: ;ased on company goals ;uilding on areas that need improvement
'ncourage good performance /ay out action plan 2ommunicate outcome of goals not met 2onfirm understanding
Continuous *eedbac,
Act early %a!e the right approach eal with employee reaction *andle continued poor performance
?ou must conduct objective appraisals on a scheduled basis1 Appraisals tell employees how they@re doing and how they can improve1 Appraisals help create a system of motivation and rewards based on performance1
#ndividual %valuation -ethods 2onfidential report 'ssay evaluation 2ritical incidents 2hec!lists <raphic rating scale ;ehaviorally anchored rating scale .;$
Chec,list method
A,imple chec!list method A(eighted chec!list method A-orced choice method
#ndifferent
Attitude
%nthusiastic
No #nterest
#nterested
2er" enthusiastic
.;$ Process
<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
Return on capital employed 2ontribution to community development egree of upward communication from middleFlevel e+ecutives egree of growth and e+pansion of enterprise1
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