Performance Management & Appraisal

Team members , George Mathew HANISH SONI Joseph George Jyoti Jain Ragini C SEKHAR Sowmya Ranjan syed Ali tejASWINI

CONTENTS
Introduction Performance Measures & Appraisal System Objectives of Performance Management System & Appraisal The Appraisal Process The Appraisers Performance Appraisal Methods The Appraisal Interview Pitfalls in Performance Appraisal
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INTRODUCTION
A formal definition of performance appraisal is:

It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. OR

Performance Appraisal (PA) refers to all those procedure that are used to evaluate the personality, the performance, and the potential of its group member.
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 PA are of two types 1.) Formal 2.) Informal. PA is used for basically three purposes Remedial, Maintenance, and Development. PA systems provides management an opportunity to recall as well as feedback to employees.
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Formal performance appraisal

It occurs usually annually on formalized basis that involves appraise & appraiser in finding answer to questions like:

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What performance was set to achieve during the period? Has it been achieved & how will we know that we have done it? What assistance can be expected to improve performance? What rewards & opportunities are likely to follow from the performance JOSEPH GEORGE 5

Informal performance appraisal

Informal performance appraisal is a continuous process of feeding back information to the subordinates about how well they are doing their work in the organization

Conducted on day to day basis

Informal appraisal quickly encourages desirable performance & discourages undesirable performance.

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Key Elements
Performance Appraisal Interview

Human Performance

Performanc e Measures & Criteria

Employee Records & HR Decisions

Employee Feedback

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JOSEPH GEORGE

Performance Measures
Direct Rater actually sees the employees performance Rater must evaluate substitutes for performance (constructs) Verifiable by others Usually quantitative Not verifiable by others Usually raters personal opinions
JOSEPH GEORGE 8

Indirect

Objective

Subjective
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Appraisal Systems
J b -re l te d o a
System evaluates critical behaviors that constitute job success

Practical
Understood and relatively simple

Performance standards
Related to the desired results of each job

Performance measures
Reports on critical behaviors
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OBJECTIVES OF PERFORMANCE APPRAISAL

Setting targets and goals as performance standards. To identify individuals with high potentials Evaluating & enhancing employees effectiveness Identifying employees training & development needs To Rewarding Performance Improving Performance & Communication
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B y m a ki g e ffe cti u se o f P e rfo rm a n ce n ve a p p ra i lsyste m , a n o rg a n i ti n m a y sa za o se e k to .

I p ro ve p ro d u cti ty m vi C re a te a p o si ve w o rk e n vi n m e n t ti ro S ti u l te re co g n i & re w a rd m a ze a ch i ve m e n ts e Provide objective measures of performance Furnish information for other HR sub systems
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Relationship between job analysis and performance appraisal:

Job analysis Performance Performance standards appraisal

Translate job Describes work Into levels of acceptable & Personnel Or Requirement unacceptable Of a particular performance
job
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Describes the Job relevant strengths and weakness of Each individual

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GEORGE MATHEW

Who are the Raters

A p p ra i e se
Possible in organizations where In self appraisal is an important component Consultants Help the employee to review and control his own performance Outside consultants may be involved in rating employees Superior

Clients/users servicee oriented organizat

Immediate superior would rate the performance of the subordinates Who report directly to them

..

Top management Peers

of superior (students will evaluate Colleagues will rate each others performance, the faculty) particularly where team 7/31/2009 HANISH SONI 13 work matters more

Subordinates He will rate the performance

What to evaluate? (Philip Model)

Low High

High

Potenti al
Stars

Work Horses

Performance
Low

Deadwood

Problem children

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 Stars are the people with high potential and high performance therefore they lead the organizations. Work Horses perform highly but normally it is due to threat or pressure since their potential is limited. Problem Children are those people who have immense potential but this is not properly channelized into performance for better development. Dead Wood is that kind of people who 7/31/2009 HANISH SONI neither have potential nor are able to 15

Steps in performance appraisal

Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose

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Process of PA

Taking corrective standards

Setting performance standards Communicating standards

Discussing results Comparing standards

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Measuring standards

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Performance Appraisal Methods

Point allocation method Essay evaluation Critical incidents Traditiona l methods Checklists Graphic rating scale Ranking methods Forced distribution Behaviorally anchored rating scale Modern 360 degree performance appraisal methods Balanced scorecard
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Point allocation method

The appraiser has to allocate points to different members in his team A specific number of point which is distribute to the members are based on their performance during the appraisal period Best performer gets the highest score and the last one gets the least. 7/31/2009 19

Essay Evaluation
The appraiser prepares a document describing the performance of the employee

Questions or guidelines are provided to the appraiser, based on which he analyses and describes the employee performance

Appraiser can express all his views and clear it on the employees performance

The writing skills, or lack of it, of the appraiser can make an inadequate performance seem 7/31/2009 20 to be adequate.

Critical Incident method

The appraiser makes a note of all the critical incidents that reflect the performance of the employee during the appraisal period.

Workers A B C D E

reaction

scale 5 4 3 2

informed the supervisor immediately Become anxious on loss of output tried to repair the machine Complained for poor maintenance was happy to forced test 1

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Checklist method
S i p l ch e ckl st m e th o d m e i W e i h te d ch e ckl st g i m e th o d Fo rce d ch o i m e th o d ce Simple checklist method : Is employee regular Y/N Is employee respected by subordinate Is employee helpful Y/N Does he follow instruction Y/N Does he keep the equipment in order

Y/N Y/N

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Weighted checklist method

w e i h ts g ra ti g n ( scale 1 to 5 ) R e g u l ri a ty 0 . 5 Lo ya l ty 1 .5 W i l n g to h e l 1 . 5 li p Q u a l ty o f w o rk 1 . 5 i R e l ti n sh i a o p 2 .0 p e rfo rm a n ce

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Forced choice method

C ri ri te a R a ti g n

1 . R e g u l ri o n th e j b a ty o Most Le a st A l a ys re g u l r w a I fo rm i a d va n ce fo r d e l y n n a N e ve r re g u l r a R e m a i a b se n t n N e i e r re g u l r n o r i g u l r th a rre a
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Graphic Rating Scale

The rater rates the employee on factors like:
Exc . 5 Dependability Initiative Overall output Attendance Attitude Cooperation Total score
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Good 4

Acceptable Fair 3 2 1

Poor _

Ranking method

E m p l ye e o A B C D E
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R ank 2 1 3 5 4

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Forced Distribution method

No . of employe es 10 % 20 %

40 %

20 %

10 %

poor Below average good Excellent average Force distribution curve

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Behaviorally anchored rating scale{BARS}

It concentrates on the behavioral traits demonstrated by the employee instead of his actual performance.
Step 1. Determine the relevant job dimensions Step 2. Step 3. Identify behavioral anchors Determine the scale

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360 degree performance appraisal Data/feedback/rating is collected from all sections of employee An employee is evaluated from all the angles Comprehensive. Reduces subjectivity.

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Balanced scorecard

Channelizes the effort of the employee. HR score card. Job assignment. Online feedback is given. COMP n BEN

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The Appraisal Interview

Self appraisal & self assessment. Identification of training & development inputs. Discusses with the supervisor. Future course of action.

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Supervisor evaluates subordinates. Feedback to employee. Training & development. Draw an action plan.
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Challenges

The organizational culture The maturity level of the individuals. An apprehensive employee. A wary appraiser. A biased appraiser. Inexperience.

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Dealing with challenges

Productive & constructive contributor. Dealing with inherent problems. Setting specific measurable goals. Training on process of PA interview. Chance to reflect.
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Pitfalls in performance appraisal.

Halo effect: The appraiser allows a single characteristics of the appraise to dominate. Leniency effect: Appraiser gives only +ve result Stringency effect: Opposite of the above. Regency effect: Occurs when the recent performance of the appraiser dominates the appraisal. Primacy effect: Beginning of the appraisal period dominates the
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Pitfalls contd..
Central tendency effect: Rating in the middle of the scale. Culture: Culture influences rater in a particular way. Stereotyping: Potential error in personality analysis. Perceptual set: exception of the performance level. Fundamental attribution error: performance affected due to some external factors.
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Conclusion
Measures the qualitative & quantitative aspects of job performance. To assess the past performance. To identify training needs. To set & agree on the future objectives. To facilitate the achievement of these goals. Acts as an audit.
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Bibliography
vHuman resource management - Biswajeet Pattnayak vHuman Resource Management -Gary Dessler vEssentials of HRM & Industrial Relations -P.Subba Rao vWIKIPEDIA vGOOGLE
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Thanking you all...

Our special thanks to

Prof. PRADEEP for his constant support & guidance.

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