Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
(HR planning)
(Recruitment)
Selection
Performance
Appraisal
Requirements
Development
Career planning & development Succession planning Training Job rotation Challenging Assignments Talent development
Performance Appraisal
Higher-level strategies and
objectives
Performance-based
compensation
Effort
Goal Setting
Performance Evaluation
Performance appraisal
The performance review must occur atleast once in a year. Some companies review twice in a year. However, as a part of Performance Management, the performance review is a continuing, ongoing activity.
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
Area of improvement.
Past Achievement.
Appraisal Benefits
Appraisals offer the company:
Documentation Employee Development Feedback Legal protection Motivation system
Process of PA
Taking corrective standards Setting performance standards Communicating standards
Measuring standards
When to evaluate?
Appraisal Design?
What to evaluate?
What problems?
How to solve?
Potential L L
Performance
Discrimination
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
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
Preparation
Employees: Review performance Think about new goals
Preparation (cont.)
Supervisors:
Review performance Complete written appraisal Think about new goals Schedule time and place
Presentation Tips
Focus on the professional Give objective examples Invite response Listen actively Create we mentality
Continuous Feedback
Formal appraisals Informal appraisals Open communication
Table: Typical Graphic Rating Scale Employee Name................... Job title ................. Department ......................... Rate ............... Data ..................................
Quantity of work: Volume of work under normal working conditions Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Unsatisfactory (1) Fair (2) Satisfacto ry (3) Good (4) Out Standi ng (5)
Ranking Method
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
Performance
Extremely good
Points
7
Behavior
Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good
Above average Average Below average Poor Extremely poor
6
5 4 3 2 1
Checklist Method
Another simple type of individual evaluation method is the checklist.
Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes/No Yes/No Yes/No Yes/No Yes/No
Essay Method
This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior.
Confidential Report
It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate.
Modern Methods
MBO
A process whereby the superior and subordinates of the organization jointly identify its common objectives, define each individuals major areas of responsibility. Establishment of Goals Setting the performance standard Actual level of job attainment is compared with the goals agreed upon. Establishing new goals and new strategies for goals not previously attained.
1. 2. 3. 4.
PSYCHOLOGICAL APPRAISALS:
When psychologists are used for evaluations, they asses an individuals potential. The appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations.
Assessment Centre
This not a technique of performance appraisal by itself. In fact, this is a system or organization where assessment of several individual is done by experts by using various techniques. These techniques used role playing, case studies etc.
Internal Customers
Boss
Peers
Self
External Customers
Team Members
2. Bias own prejudices {race, national origin, gender, appearance, etc.} influence the appraisal
3. Comparison Rating contrasting one employee with another
Common Problems Associated with Conducting the Appraisal 3. Central Tendency rate everyone as average 4. Recency Effect focusing on performance instead of entire year recent
5. Personal Prejudice If the rater dislikes one group or employees, he may rate them at the lower end. 6. Favoritism evaluating friends or those who dont make waves, etc. more favorably than others
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