PERFORMANCE APPRAISAL

WHAT IS PA?
 Method of evaluating the behavior at the workplace.
 Both qualitative and quantitative aspects of job aspects.
 Systematic and objective method.
 Degree of accomplishment.
 Result oriented vs. effort oriented.
 In sync with organization culture.
WHY PA?
 Training and development needs.
 Reward the employees/comp+ben
 Motivation
 Feedback
 Personal development
 Transfers/promotions/career planning
 Succession planning
 Increase organizational effectiveness by increasing individual effectiveness.
HOW TO CARRY OUT PA?
 Establish standards of performance(OO+JD)
 Communicate
 Determine the components to be measured
 Actual measurement
 Compare actual with standards
 Communicate the result of the appraisal/feedback
 Action plan
 Plan implementation/effective use of appraisal
WHO EVALUATES?
 Self-appraisal
 Supervisors
 Peers
 Subordinates
 Customers/clients
 Consultants
METHODS
 Classified on the basis of
 Individual evaluation methods
 Multiple-person evaluation methods
 Other methods
 Traditional vs. modern methods
1. MBO OR GOAL SETTING (I/T)
 SMART goals set at individual level
 Participative manner
 In sync with org. goals and departmental goals
 Expected results defined
 Performance reviews and feedback-regularly
  Plan for contingencies
 Identify scope for improvement
 Employees must be suitably equipped and motivated
 Focus on goal accomplishment rather than how it is to be accomplished.
 - ve: sometimes qualitative aspects can be compromised upon (attitude, job sat)
 Goals must not be too easy or too difficult
 Coordination, democracy
 MBBO J L
2. GRAPHIC RATING SCALE(I/T)
 Appraised on factors like quantity and quality of work
 Also evaluates traits crucial to the job
 Includes numerical ranges as well as written descriptions
 Easy to understand, easy to use, permits statistical evaluation of the scores
 - ve: perceptions cause confusions and ‘not so important’ parameters might get more importance
3. ESSAY APPRAISAL(I/T)
 Describes the positives and negatives in written form
 Usually used along with GRS (substantiates)
 Provides details without constraints
 Not comparable in nature
 Can be inappropriate when/if:
 Subjective
 Inappropriate writing skills
 Rush-rush affair: NO!NO!
4. CRITICAL INCIDENT METHOD(I/T)
 Log maintained of incidents critical to the job
 Positive and negative behavior recorded which effects performance
 Objective
 Avoided:
 Negatives seem highlighted
 Close supervision not appreciated
 May be taken as just another task by the manager
 Not fruitful if the manager is complaining in nature (specially during performance review)
5. FORCED CHOICE METHOD(I/T)
 Ranks assigned to employee’s traits
 Either all positive statements or paired statements
 Weights assigned to each statement (appraiser unaware, no access to the scoring key)
 Subjectivity minimized, unique rank assigned
 Sometimes neither easy to rank not to convince the employee on the same
 Cannot be used for training since the manager himself doesn’t know how the evaluation happens.
 Managers feel frustrated rating ‘in the dark’
 Technicians frame the phrases; expensive
 In spite of the negatives, forced rating is quite popular
6. CONFIDENTIAL REPORT(I/T)
 Descriptive report made by the immediate supervisor
 Year on year
 Highlights the strengths and weaknesses
  Not made public, not discussed
 Wholly on the supervisor’s discretion
 Appraisee has no idea why and how has he been marked, how to rectify his mistakes
 No feedback
 Highly subjective
 Govt. organizations
7. WORK STANDARDS APPROACH(I/T)
 More suitable for manufacturing sector
 Goals are pre-determined work standards
 Either average output of a typical employee
 Or benchmarking against work standards of competitor in similar business
 Goals objective and quantifiable
 - ve: work standards for different job categories cannot be compared.
8. BARS(I/M)
 Behaviorally anchored rating scale
 Focuses on behavioral traits instead of actual performance
 Combo of rating scale and critical incident method
 Steps involved:
 Determine critical incidents
 Identify performance dimensions
 Reclassify the incidents
 Assign scale values on consensus
 Requires employee participation
 Acceptance is higher
 Job-specific; identifies observable and measurable behavior
 Time consuming and cumbersome
 Different forms for different job roles
 No great shake
9. RANKING METHOD
 Ranking of employee against another in the group
 Numerical ranks given
 Can also be ranked against another in the competitive group
 Highest to lowest on some overall criteria
 Easy to rank the best and the worst but difficult to rank the average
 Only talks about the position and not about how better or worse someone is!
 No systematic procedure….scope for snap judgments!
 PAIRED COMPARISON
 Each compared to all on every trait
 Employee rated the best max – best employee
 Number of comparisons made n(n-2)
 Not feasible for very large groups
 FORCED DISTRIBUTION
 Big organizations
 Predetermined distribution scale
 Basis of promotability also
 Eliminates rater bias(predetermined)
10. GROUP APPRAISAL
 Employee appraised by a group of appraisers
 Immediate supervisor, HOD, chairman etc (JD)
 Immediate supervisor acts as a coordinator
 Describes job role, standards of performance, demands
 The groups carries out the usual cycle
11. HRA
 Human resource as assets
 Compare investment made and value change
 Acquisition cost vs. replacement cost
 Contributions made measured
 Not fully developed – transitory stage
12. ASSESSMENT/DEVELOPMENT CENTRE
The students know it all!!!!!J
360-DEGREE FEEDBACK SYSTEM
 Performance information from multiple parties
 Fact-finding and self-correction technique
 Feedback from multiple sources
MERITS
 Evaluates methods applied to achieve targets
 Reveals strengths and weaknesses in management style
 Gets flexibility
 Creates an environment of teamwork
 Unearths truths about organizational culture and ambience
DEMERITS
 Ignores performance in terms of reaching goals
 Bias
 Assessees deny negative feedback
 System can be used to humiliate
 Linking findings to rewards can be unfair
APPRAISAL INTERVIEW
 Implementation of PA
 Starts with the employee himself
 Feedback about effectiveness and efficiency
 Recipient can also express
 Post interview the cycle is repeated
 Can be used to counsel, guide , help and suggest
Objectives:
 To know where the concerned stands
 Clarifying expectations
 Plan opportunities for development and growth
 Strengthen superior-supervisor relationship
 Employees can express themselves on perf-related issues
FEEDBACK
 Job related and work related
 Adequate preparation
  Describe behavior
 Acts, not attitudes
 Future-oriented
 Goal oriented
 Listen to the recipient
 Descriptive, not evaluative
 Data based feedback
 Suggestive
 Reinforcement
 Continuous/proper timing
 Need-based and solicited
CHALLENGES OF APPRAISAL INTERVIEW
 Organization culture
 Superior-subordinate relationship
 Maturity level of the individuals
 Apprehensive employee
 Wary appraiser
 Biased appraiser
 inexperience
PITFALLS
 Judgment errors:
 Halo effect
 Horn effect
 Leniency effect
 Primacy effect
 Central tendency effect
 Stereotyping
 Recency effect
 Stringency effect
 Perceptual set
 Poor appraisal forms
 Lack of rater preparedness
 Ineffective organizational policies
CHARATERISTICS OF AN EFFECTIVE APPRAISAL SYSTEM
 Reliability and validity
 Job relatedness
 Standardization
 Practical viability
 Legal sanction
 Training to appraisers
 Open communication
 Employee access to results
 Due process