Writa Bhattacharjee

y Understanding Performance Appraisal System y Types of Performance Appraisal Systems y Potential Appraisal

Section 1

y What gets measured, gets performed. y Part of the Performance Management Process y Evaluating an employee s current or past performance

relative to his or her performance standards and also against that of other employees. y Requirements of effective Appraisal systems:
y y y y y

Relevance Sensitivity Reliability Acceptability Practicality

ESTABLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH STANDARDS

DISCUSS THE APPRAISAL WITH THE EMPLOYEE

IF NECESSARY, INITIATE CORRECTIVE ACTION

y Setting Goals:
y SMART goals y Challenging but doable goals y Encourage participation

y Appraisal Interview
y Types: Satisfactory-Promotable, Satisfactory-Not

Promotable, Unsatisfactory-Correctable, UnsatisfactoryUncorrectable y How to conduct- Objective, Impersonal, Encourage to talk, Direct y Handling Defensive subordinates y Criticizing a subordinate

y What?- Factors Appraised y Who?- Who appraises y Why?- Objectives of PA system y When?- Frequency y How?- Methods

y Generic dimensions y Job s actual duties y Competencies/ behaviour

y Immediate supervisor y Peers y Rating committees y Self-ratings y Subordinates y Customers

y Role in PMS y Satisfactory performance level y Developmental plan y Career planning y Raise and promotion y Validation for hiring practices y Diagnose organizational problems

y Formal appraisal- traditionally- once or twice a year y Far too infrequent y Formal plu7s regular informal conversations y New employees- more frequent- confirmation

y Unclear standards y Halo Error y Contrast Error y Recency Error y Central Tndency y Leniency/strictness y Bias

Section 2

Traditional Methods
y Ranking y Paired comparison y Grading y Graphic or linear rating y y y y

Modern Methods
y Assessment Centre y BARS y MBO y 360 degree

scales Forced Distribution Method Checklist system Free form essay method Critical Incidents

y Each employee is compared on traits with every other y y y y

employee in pairs. Results for each employee are tallied and this yields the rank order for the entire group No. of comparisons given by [N(N-1)]/2, where N is the number of employees. Advantages-? Disadvantages-?

y Ranking employees from best to worst on a trait or y y y y y

traits or as the whole person Either Straight or Alternate Straight- From Best employee downwards to worst Alternate- Best employee, then worst, then secondbest, etc. Advantages-? Disadvantages-?

y Rater considers certain features or traits and marks

them according to a scale. y Attributes are established and carefully defined on a scale, with attached grades. y Advantages-? y Disadvantages-?

y Traits are listed with a range of performance values for

each trait, with numerical values assigned to each performance level. y Assigned values are then totalled. y Advantages-? y Disadvantages-?

y Similar to Grading y Place predetermined percentages of ratees into

performance categories y Advantages-? y Disadvantages-?

y Rater does not evaluate ratee- personnel department y y y y y

evaluates- rater provides report Yes/No options for behaviours displayed Values of questions- equal or weighted Use of Likert scale or descriptive options Advantages-? Disadvantages-?

y Free-form, open ended appraisal y Descriptive, qualitative y Detailed feedback y Advantages-? y Disadvantages-?

y Supervisor keeps a log of positive and negative

examples- critical incidents y Critical incidents basis of appraisal y Advantages-? y Disadvantages-?

y Not a place y Battery of tests to evaluate competencies y Multiple assessors, multiple tests y Advantages-? y Disadvantages-?

y Behaviourally Anchored Rating Scales y Combines Critical Inicdent and Graphic Rating Scales

methods y Scales with aligned critical incidents for distinct performance dimensions y Advantgaes-? y Disadvantages-?

y Setting specific, measurable goals with each employee

and then periodically reviewing the progress made y Measure of each employee s contribution to organization s performance y Advantages-? y Disadvantages-?

y All round collection of performance data y Appraisal by superiors, subordinates, peers and

customers y Compiled result y Advantages-? y Disadvantages-?

Section 3

y Potential is different from performance y Promote for potential y Problems of promoting for performance y Future organizational needs y Potential- latent qualities that manifest in concrete

terms while performing various jobs/tasks

y Assess capacity to work in future without being

overstretched y Assist organization in succession planning

y Role Descriptions y Qualities needed to perform the roles y Rating mechanisms:

y y y y

Rating by others Tests Games Records

y Organizing the system:

y Merit vs. seniority weightage y Weightage to managerial skills- T,I,C y Mechanisms for assessing on indicators, with reliability

y Feedback

y y y y

y y y y y

Analytical power Creative imagination Sense of reality Capability of taking holistic view from a detached position Effective leadership Conceptual skills Technical skills Commercial skills Communication skills

y Planning and organizing y y y y y y y y

ability Willingness to take additional responsibility Initiative Result orientation Teamwork and team building Subordinate development Negotiation skills Problem solving and decision making Process orientation

y Managing Human Resources- Wayne F. Cascio y Human Resource Management- Gary Dessler y A Textbook of Human Resource Management-

C.

B. Mamoria & S. V. Gankar y Human Resource Management- Biswajeet Pattanayak y www.openlearningworld.com

Questions?