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Performance and Potential

appraisal
The Appraisal Process
The evaluation of an employees current
and past performance relative to
performance standards

An appraisal involves:
Setting work standards
Assessing actual performance vs. these
standards
Providing feedback to the employee
Comparing Performance Appraisal and
Performance Management

Performance appraisal
Evaluating an employees current and/or past
performance relative to his or her
performance standards.
Performance management
The process employers use to make sure
employees are working toward organizational
goals.
An Introduction to Appraising
Performance

Why Appraise Performance?

1 Is basis for pay and promotion decisions.

2 Plays an integral role in performance management.

Helps in correcting deficiencies and reinforcing good


3
performance.

4 Is useful in career planning.


The Components of an Effective
Performance Management Process

Direction sharing
Role clarification
Goal alignment
Developmental goal setting
Ongoing performance monitoring
Ongoing feedback
Coaching and support
Performance assessment (appraisal)
Rewards, recognition, and compensation
Workflow and process control and return
Defining Goals and Work
Efforts
Guidelines for effective goals
Assign specific goals

Assign measurable goals

Assign challenging but doable goals

Encourage participation

SMART goals are:


Specific, and clearly state the desired results.

Measurable in answering how much.

Attainable, and not too tough or too easy.

Relevant to whats to be achieved.

Timely in reflecting deadlines and milestones.


Performance Appraisal
Roles
Supervisors
Usually do the actual appraising.
Must be familiar with basic appraisal
techniques.
Must understand and avoid problems that
can cripple appraisals.
Must know how to conduct appraisals fairly.
Performance Appraisal
Roles (contd)
HR department
Serves a policy-making and advisory role.
Provides advice and assistance regarding
the appraisal tool to use.
Prepares forms and procedures and insists
that all departments use them.
Responsible for training supervisors to
improve their appraisal skills.
Responsible for monitoring the system to
ensure that appraisal formats and criteria
comply with EEO laws and are up to date.
Define the Job
Steps in Appraising
Performance
Discuss
progress &
Make sure all
make plans
agree on duties

Compare
Appraise Provide
performance
Performance Feedback
to the standard
PERFORMANCE APPRAISSAL METHODS

Traditional Modern
a) Graphic Rating (Quality & a) BARS Behaviour
Qty, Num and Written) b) 360
b) Alternation Ranking Method
c) Team/Group Appraisal
c) Paired Comparison
d) Balanced Score Card
d) Forced Distribution
e) Assessment Centre
e) Critical Incident
f) MBO
g) Essay Appraisal
Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages


Graphic rating Simple to use; provides a Standards may be unclear; halo
scale quantitative rating for each effect, central tendency, leniency,
employee. bias can also be problems.

BARS Provides behavioral anchors. Difficult to develop.


BARS is very accurate.

Alternation Simple to use (but not as simple Can cause disagreements among
ranking as graphic rating scales). Avoids employees and may be unfair if all
central tendency and other employees are, in fact, excellent.
problems of rating scales.

Forced End up with a predetermined Employees appraisal results


distribution number or % of people in each depend on your choice of cutoff
method group. points.

Critical incident Helps specify what is right and Difficult to rate or rank employees
method wrong about the employees relative to one another.
performance; forces supervisor to
evaluate subordinates on an
ongoing basis.

MBO Tied to jointly agreed-upon Time-consuming.


performance objectives.
COMPONENTS OF APPRAISAL/EVALUATION
Who
What
Why
When
Where
How

PROBLEMS OF APPRAISAL
Halo Effect Primary Effect
Leniency or Strictness Tendency
Similarity Error
Stereotyping error
Miscellaneous Biases
Social Differentiation
Perceptual Set (over/under rating)
Appraising Teams
Set tangible targets for Determine intangible
each KRA. Incorporate parameters (like initiative),
Identify KRAs which indicate pockets of
stretch elements for each
critical to business individual excellence with
target. Fix the minimum
during the year the team
acceptable target

Evaluate Communicate Measure the


performance of the the results to performance of the
team against pre- ensure team (actual versus
determined targets transparency targets) every month

Identify individuals who have excelled.


Discount subjective factors by including
assessors from outside the team to
identify outstanding individuals.
How to Avoid Appraisal
Problems
Learn and understand the problems
Use the right appraisal tool
Train supervisors
Reduce outside factors: time constraints,
union pressures & turnover
Keep a diary of critical incidents
Who Does the Appraising?

Your
Boss You

Peers Subordinates

Rating
Committee
The Appraisal Interview

Appraisal interview - an interview in


which the supervisor and subordinate
review the appraisal and make plans to
remedy deficiencies and reinforce
strengths. Adequate preparation and
effective implementation are therefore
essential.
How to Insure
Improved Performance

Set improvement goals


Establish comfort
Allow employee influences
Provide constructive information

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