Performance Management System

PMS Step 3 Reviewing Performance-Performance Appraisal

Goal setting

Coaching, Informal reviews

Self Appraisal

Perf. Appraisal Discussion

Rating by appraiser + Articulating the dev needs of the apppraisee

RewardsIncrements, Incentive etc

Finalization of ratings

Normalization

Training & Development Plan A typical Appraisal Process

Performance Appraisal RatingWhat to rate/measures ? 1. Quantity 2. Quality 3. Timeliness

4. Cost Effectiveness
5. Need for supervision 6. Interpersonal Impact

Some Rating MethodsGraphical Rating Scales Alternation Ranking Method Paired Comparison Method

Forced Distribution Method

Critical Incident Method BARS ACRs Finish-9th Feb-11 class-

Some trends:
360 degree Appraisal Rating Results vs. behaviors

Performance Appraisal RatingChallenges/Errors to be aware of 1.Leniency or Severity 2.Central tendency-playing safe 3.Halo/Horn effect 4.Rater effect- Favoritism, hostility, stereotyping 5.Recency Effects 6.Spill over effect- past overshadows 7.Similarity effect 8.Rating for retention 9.Friendships

Performance Appraisal RatingPossible Actions to avoid errors: Awareness of likely errors Train appraisers Control outside influences (e.g. union pressure, retention issues, time constraints, appraiser fatigue, need to justify ratings..) Keep a diary (CIT) Regular Reviews Right Tool

Structuring an Appraisal Interview

Agree on Broad Discussion Structure & Time Agree on Main Content of Discussion Recognize positive behavior and Strengths

Discuss alternatives for ineffective behavior / outcome

Explore any issues that subordinate wants to discuss Acknowledge Feelings Allow Expression Allow Silence Summarize & Close
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The Appraisal Interview Key Appraiser skills / Behavior

Active listening Ear for key words Questioning Paraphrasing Summarizing

Positive Body language

Appraisal Interview - Guidelines for Giving Feedback

Focus on behavior & consequence, not on person (your performance this year has been unsatisfactory rather than you are a failure) Be specific (your choice of words like ... may offend listeners rather than your communication is bad)

Choice of words & tonality

Seek views and clarifications if any, ensure understanding of the feedback Direct negative feedback towards behavior a person can control (Low performance due to sickness ....??)

Exercise- Role Play Appraisal

Directions: You are manager of a manufacturing plant. Consider yourself in following situation and display through a simulation/role play how will you handle this situation ?

1. Geeta is your best employee. She has performed very well & is expecting a well deserved promotion, but due to bad market condition, you can neither increase her salary or give her a promotion. You fear she may be disappointed & leave the company when she knows this.