Performance

Appraisal
Mamun Muztaba
AMC, BIM

Manage Irretrievable
resource
Do you know how a 70-year life is generally
spent?
On an average, 25 years in sleep, 8 years in study
and education,
6 years in rest and illness,
7 years in holidays and recreation,
5 years in commuting,
4 years in eating and
3 years in transition
i.e. getting ready to do all the Above activities.

Manage Irretrievable
resource
That leaves only 12 years for effective years.
Charles Schwab, an American millionaire, paid a
consultant US$25,000.00 in 1936 to advise him how
to best use this precious, irretrievable resource.
His advice, Start your day with a To Do list and
prioritize the vital few after picking them from the
trivial many.

Performance appraisal
Performance appraisal.
A

process of systematically evaluating

performance and providing feedback upon
which performance adjustments can be made.

Performance appraisal should be based on job

analysis, job description, and job specifications.

Functions of Performance
Appraisal
Define the specific job criteria against which

performance will be measured.

Measure past job performance accurately.
Justify rewards, thereby differentiating between

high and low performance.

Define ratees needed development experiences.

Objectives of Performance
Appraisal
According to:

Employee

Organization

concrete and tangible

measuring the efficiency
maintaining organizational
particulars about their
work
control.
assessment of
performance
Aims at:
mutual goals of the
Personal development
employees & the organization.
work satisfaction
growth & development
involvement in the
increase harmony &
organization.
enhance effectiveness

Main Purposes of
Performance Management
Individual Rewards (Base and Incentive)
Feedback for Sub-Ordinate (Plus and Minus)
Recognition of Superior Performance
Documentation of Weak Performance
Personnel Decision-Making
Future Goal Commitments (Planned
Achievements)

Primary Uses of
Performance Appraisals
Small
Organizations

Large
Organizations

All
Organizations

Compensation

80.2%

66.7%

74.9%

Performance
improvement

46.3%

53.3%

48.4%

Feedback

40.3%

40.6%

40.4%

Documentation

29.0%

32.2%

30.2%

Promotion

26.1%

22.8%

24.8%

Training

5.1%

9.4%

7.3%

Transfer

8.1%

6.1%

7.3%

Discharge

4.9%

6.7%

5.6%

Layoff

2.1%

2.8%

2.4%

Personnel research

1.8%

2.8%

2.2%

Manpower planning

0.7%

2.8%

1.5%

Who Performs the

Appraisal?
Immediate
Supervisor

Peers

Rating
Committee

Self-Rating

Potential
Appraisers

Subordinates

360-Degree
Feedback

Appraising
Performance Process
Three steps in performance appraisal process
1. Defining the job: making sure that supervisor and
the subordinate agree on his/her duties and job
standards;
2. Appraising performance: comparing subordinates
actual performance to the standards that have been
set; and
3. Feedback sessions: discuss subordinates
performance and progress and make plans for any
development required.

Taking corrective
standards

Setting
performance
standards

Discussing
results

Communicating
standards

Measuring
standards
Comparing
standards

What to Measure?
Employees performance may be measured in
terms of generic dimensions such as
Quality,
Quantity, and
Timeliness of work.
Or, employees performance may be
measured with respect to developing
Competencies, or
achieving his/her goals.

Methods of
Performance Appraisal
Traditional Methods
1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description
method
4. Forced Distribution
Method
5. Checks lists
6. Free essay method
7. Critical Incidents
8. Field Review Method
9. Confidential Report
10. Ranking

Modern Methods
1. Assessment
Center
2. Appraisal by
Results or
Management by
Objectives
3. Human Asset
Accounting
4. Behaviorally
Anchored Rating
scales

Paired Comparison
Method
Paired Comparison Method:
Ranking employee by making a chart of all possible
pairs of the employees for each trait and indicating
which is the better employee of the pair.
In paired comparison the supervisor compares each
employee with every other employee in the group and
rates each as either superior or weaker of the pair.
After all comparisons are made, each employee is
assigned a summary or ranking based on the number
of superior scores received.

Paired Comparison
Method

Graphic Rating Scale

Graphic rating scale method: it lists a number of traits
(communication, organizational know-how, teamwork,
etc.), and a range of performance for each. The employee
is then rated by identifying the score that best describe his
/her level of performance for each trait. Assigned values
for traits are then totaled.
Graphic Rating Scale. This method lists a set of
performance factors such as job knowledge, work quality,
cooperation that the supervisor uses to rate employee
performance using an incremental scale.

Graphic Rating Scale

Attitude
0
15

No interest
In work:
consistent
complainer

5
Careless:
In-different
Instructions

Decisivenes
s
0
20
Slow to
take
decisions

20

Take
decisions
after careful
consideration

10
Interested
in work:
Accepts
opinions &
advice of
others

5
Takes
decisions
promptly

Enthusiasti
c about job
&
fellowworkers

10
Take decisions
in
consultation
with others
whose views
he values

Enthusiasti
c opinions
& advice
sought by
others

15
Take
decisions
without
consultation

Forced Choice
Method
Forced Choice Method: in this, the rater is given a
series of statements about an employee. These
statements are arranged in blocks of two or more,
and the rater indicates which statement is most or
least descriptive of the employee.
This approach is known as the forced choice method
because the rater is forced to select statements
which are readymade.

Forced Choice
Method
Criteria
1.Regularity on the job
Always regular
Inform in advance for delay
Never regular
Remain absent
Neither regular nor irregular

Rating
Most

Least

Forced Distribution
Method
Forced Distribution Method: Similar to
grading
on
a
curve;
predetermined
percentages of ratees are placed in various
categories.
It is grading on a curve; predetermined
percentages of rates (top 10%, middle 80%
and bottom 10%)
are placed in various
performance categories. The proportions in
each category need not to be symmetrical.

Forced Distribution
Method

No.
of
employees

10% 20%
poor

40%

Below average
average

20%

10%

good

Excellent

Force distribution curve

Critical Incident
Method
Critical Incident Method: keeping a record of
unusually good or bad examples of an
employees work-related behavior and review
with the employee.
Critical Incidents. The supervisor's attention
is focused on specific or critical behaviors that
separate effective from ineffective
performance.

Critical Incident
Method
Ex: A fire, sudden breakdown, accident
Workers
A
B

Reaction
Informed the supervisor immediately
Become anxious on loss of output

scale
5
4

Tried to repair the machine

Complained for poor maintenance

Was happy to forced test

Essay Method
A trait approach to performance appraisal that
requires the rater to compose a statement
describing employee behavior.
Write a Behavioral Statement
Strengths versus Weaknesses
Describe Selected Traits
Evaluate Performance

Sample of Staff Assessment Form

[Descriptive Essay Type]
Staff Appraisal

Name . . . . . . .
Job Title . . . . . . .
Department . . . . . . . . . . . . Date of Review . . . . . . .
Age . . . . . .. . Years in present job
Section I

Appraisal Of Performance

Note to Appraiser
1.Appraisal must cover the period of the preceding 12 months
2.Consideration to every function & responsibility of the job
3.An objective factual assessment of an employees improvement or deterioration

Section II
Promotability & Potential
Promotability
1.Promotion now
2.Within 2 years
3.Within 5 years
4.Unlikely to qualify for promotion
Section III
Career Development
Section IV

Notes on Interview with employee

Section V

Comments on & Endorsement by Reviewing Authority

Field Review Method

Field Review Method: this is an appraisal by
someone outside the assesses own department,
usually someone from the corporate office or the HR
department. The outsider reviews employee records
and holds interviews with the ratee and his or her
supervisor.
The method is primarily used for making promotional
decisions at the managerial level. Field reviews are
also useful when comparable information is needed
from employees in different units or locations.

Field Review Method

Performance
Dimension

subordinate

peers superior

Leadership

Communication

Interpersonal skills

customer
^

Decision making

Technical skills

Motivation

Behaviorally Anchored
Rating Scale Method (BARS)
Behaviorally anchored rating scale method (BARS):
It aims at combining the benefits of narrative critical
incidents and quantified ratings by anchoring a
quantified scale with specific narrative examples of
good and poor performance. It requires five steps:
1.
2.
3.
4.
5.

Generate critical incidents

Develop performance dimensions
Reallocate incidents
Scale the incidents
Develop a final instrument.

Behaviorally Anchored
Rating Scale Method (BARS)
Performance

Extremely good

Points

Behavior

Can expect trainee to make valuable suggestions

for increased sales and to have positive
relationships with customers all over the country.

Good

Can expect to initiate creative ideas for improved

sales.
Can expect to keep in touch with the customers

throughout the year.

Can manage, with difficulty, to deliver the goods in

time.
Can expect to unload the trucks when asked by

Poor

the supervisor.
Can expect to inform only a part of the customers.

Extremely poor

Can expect to take extended coffee breaks & roam

Above average
Average
Below average

around purposelessly.

MBO (Management by
Objectives) Method
It was Peter F. Drucker who first gave the concept of MBO to the
world way back in 1954 when his The Practice of Management was
first published. Application of MBO in performance appraisal is a
recent thinking.
MBO (Management by Objectives) method: it involves setting specific
measurable organization-wide goals with each employee and then
periodically reviewing the progress made. It involves six steps:
1. Set the organizations goals
2. Set departmental goals
3. Discuss departmental goals
4. Define expected results
5. Performance reviews
6. Provide feedback

MBO (Management by
Objectives) Method
Evaluating the performance of managers and
professionals is management by objectives
1. Employee meets with his/her superior and agrees on a
set of goals to achieve during a specific period of time.
2. Throughout this period, progress toward the goal is
monitored, though the employee is left generally free
to determine how to go about meeting them.
3. At the end of the period, the employee and superior
again meet to evaluate whether the goals were
achieved and to decide together on a new set of goals.

360 Degree Performance

Appraisal

Assessment Centre
Method
An assessment Centre is a central location
where managers may come together to have
their participation in job related exercises
evaluated by trained observers.
Mostly used for executive hiring, assessment
centers are now being used for evaluating
executives or supervisory potential.

Appraising Performance:
Problems and Solutions

Potential Rating
Scale Appraisal
Problems

Unclear
Standards

Halo
Effect

Central
Tendency

Leniency or
Strictness

Bias

Appraising Performance:
Problems and Solutions
Potential rating scale appraisal problems:
Unclear standards: graphic rating scale could result in unfair
appraisals, as the traits and degrees of merit are ambiguous.
Halo effect: the influence of a raters general impression on
rating of specific qualities.
Central tendency: a tendency to rate all employees the same
way, such as rating all average.
Leniency or strictness: when a supervisor has a tendency to
rate all subordinate either high or low.
Bias: tendency to allow individual differences to affect the
appraisal rating.

Appraising Performance:
Problems and Solutions (cont.)

How to Avoid
Appraisal Problems

Know
Problems

Use the
Right Tool

Train
Supervisors

Control
Outside
Influences

Keep
a Diary

Appraising Performance:
Problems and Solutions (cont.)

Know limitations of the appraisal techniques: try to

understand the potential problems of the appraisal techniques
and probable solutions.
Use right appraisal techniques: use right appraisal
techniques. Each has its own pros and cons.
Train supervisors: train supervisors to reduce rating errors
such as halo, leniency/strictness, and central tendency.
Control outside influence: minimize trade union / political
pressure, and time constraints.
Keep a diary: keep a diary of employees performance over
the year.

The Appraisal Interview

SatisfactoryPromotable

SatisfactoryNot Promotable

Types of Appraisal
Interviews

UnsatisfactoryCorrectable

UnsatisfactoryUncorrectable

The Appraisal Interview

(Cont.)
Appraisal interview in which the supervisor and
subordinate review the appraisal and make plans
to remedy deficiencies and reinforce strengths.
Four basic types of appraisal interviews:
1. Satisfactory promotable,
2. Satisfactory not promotable (perhaps no vacant
post for promotion),
3. Unsatisfactory but correctable (action plan for
corrective actions), and
4. Unsatisfactory and uncorrectable (dismiss the
employee).

Guidelines for Conducting

an Interview
Preparation is essential.
Review the employees job description, compare
performance with the standards, and review
employees previous appraisals.
Guidelines for conducting the interview:
1.
2.
3.
4.

Talk in terms of objective work data

Dont get personal
Encourage the person to talk
Dont tiptoe around (make sure the employee knows
what he/she is doing right and doing wrong).

Guidelines for Conducting

an Interview (Cont.)

Guidelines for
Conducting an Interview

Talk in terms
of objective
work data.

Dont get
personal.

Encourage
the person
to talk.

Dont tiptoe
around.

End of Session

Thank You