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

In words of FlippoPA is a systematic ,periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job.

Characteristics

It is a step by step process It examine the employee strengths and weaknesses in terms of job. 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

Process of PA
Taking corrective Actions

Setting performance standards

Communicating standards

Discussing results Comparing standards

Measuring standards

Problems in performance appraisal

1.

Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect

Problems in performance appraisal (Contd)

2.
3. 4. 5. 6.

Incompetence Negative approach Multiple objectives Resistance Lack of knowledge

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

Methods of PA

Traditional method
Confidential Report Essay report Straight ranking method Man-to-man comparison Grading Graphic rating scale Paired Distribution
Forced Distribution Checklist Method Critical Incidents Group appraisal Field review

Modern methods
Assessment center Human resource Accounting BARS (Behaviorally anchored rating scale) MBO 360 degree appraisal

Straight Ranking Method

The evaluator assigns relative ranks to all the employees in the same work unit doing the same job. Employee Rank A 1 B 5 C 4 D 3

Checklist method
Simple checklist method Weighted checklist method Forced choice method

Simple checklist method:

Is employee regular Is employee respected by subordinate Is employee helpful Does he follow instruction Does he keep the equipment in order Y/N Y/N Y/N Y/N Y/N

Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers
A B C D E

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

scale
5 4 3 2 1

Weighted checklist method

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

Forced choice method

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

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

Indifferent
Attitude

Enthusiastic

No Interest

Interested

Very enthusiastic

Discontinuous Rating Scale

BARS( behaviorally Anchored rating scale)

Step 1. Step 2. Step 3. Step 4. Step 5. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument

MBO Process

Set organizational goals Defining performance target Performance review feedback

Paired comparison method

A
B A + B C D + + E Final Rank + 3 + 2

C
D

+
-

+
-

+
-

+
+

1
4

No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Forced Distribution method

No. of employees 10% 20% poor 40% 20% 10% Excellent

Below average good average Force distribution curve

Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making Technical skills Motivation subordinate peers superior customer ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^