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 performance
standards appraisal

Describes work
& Personnel
Requirement
Of a particular
job
Translate job
Into levels of
To acceptable
Or unacceptable
performance

Describes the
Job relevant
strengths and
weakness of
Each individual
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 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

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
standards
Taking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
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 firms
competitive advantages

Improving
performance
Making correct
decision
Ensuring legal
competence
Minimizing 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
2. Incompetence
3. Negative approach
4. Multiple objectives
5. Resistance
6. Lack of knowledge
Problems in performance appraisal
(Contd)
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 reaction scale

A informed the supervisor immediately 5
B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1
Checklist method
Simple checklist method
Weighted checklist method
Forced choice method
Simple checklist method:
Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N

Weighted checklist method
weights performance rating
(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0



Forced choice method
Criteria Rating

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

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
Discontinuous Rating Scale
Attitude
No
Interest
Indifferent
Interested
Enthusiastic
Very
enthusiastic
BARS( behaviorally Anchored rating scale)
Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument
MBO Process
Set organizational goals
Defining performance target
Performance review
feedback
Group Appraisal
Ranking
Paired comparison
Forced distribution
Performance tests Field review
technique

Performance Appraisal Methods
Ranking method
Employee Rank

A 2

B 1

C 3

D 5

E 4
Paired comparison method
A B C D E Final Rank
A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation
Forced Distribution method
10%
20%
40% 20%
10%
poor Below
average
average good Excellent
No.
of
employees
Force distribution curve
Field review method
Performance subordinate peers superior customer
Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^
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