Performance Appraisal

Amit Sharma B.Tech, MBA, SAP(HR), PHR|SHRM Er.aksharma@gmail.com

Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members

Relationship between jab analysis and performance Job analysis performance performance appraisal:
standards Describes work & Personnel Requirement Of a particular job appraisal Describes the Job relevant strengths and weakness of Each individual Translate job Into levels of To acceptable Or unacceptable performance

Question arises?

Why do we measure performance? Effective performance appraisal systems How do we measure performance?

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

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
Development

company:
Documentation Employee 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

Steps in performance appraisal

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

Process of PA
Taking corrective standards Setting performance standards Communicatin g standards Measuring standards Comparing standards

Discussing results

Issues in appraisal system

Formal and informal What methods? When to evaluate? What to evaluate? How to solve? Appraisal Design? Whose performance? Who are the raters? What problems?

What to evaluate? (Philip Model)

H Potenti al L L

Problem children Planned separatio n Performanc e

star s Social citize n H

How PA contribute to firms competitive advantages

Improving performanc e Values and behavior Competitiv e advantage

Making correct decision

Minimizing dissatisfaction And turnover

Ensuring legal competence

1.

Problems in performance appraisal

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

2. 3. 4. 5. 6.

Problems in performance appraisal (Contd) 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

Appraisals and Discrimination

Title ADA Other Laws

VII fair employment

Discrimination (cont.)
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

Define

performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals

Appraisal Forms

Measure Performance
Measurement

systems need to

be: Specific Fair Consistent Clear Useful

Measure Performance (cont.)

Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented

Make

sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis

Document Performance

Based

on job requirements Realistic Measurable Observable Challenging Prioritized

Set Goals.

Employee Input

Employees

take an active role:

Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting

Preparation
Employees: Review performance Think about new goals

Preparation (cont.)

Supervisors:
Review

performance Complete written appraisal Think about new goals Schedule time and place

Start the Meeting

Lay

out agenda Talk about money Encourage input Give good news first

During the Meeting

Review performance: Based on previous goals Noting strengths and accomplishments Identifying areas for improvement

Focus

on the professional Give objective examples Invite response Listen actively Create we mentality

Presentation Tips

During the Meeting (cont.)

Set

goals: Based on company goals Building on areas that need improvement

End the Meeting

Encourage

good performance Lay out action plan Communicate outcome of goals not met Confirm understanding

Continuous Feedback
Formal

appraisals Informal appraisals Open communication

Recognize Good Performance

Verbal Public Tangible Monetary

Identify Poor Performance

Act

early Take the right approach Deal with employee reaction Handle continued poor performance

Discipline Poor Performance

Recognize

problems Talk with employee Follow company policy

Handle Hard Cases

Reviewing

highly emotional

employees Rating former peers

Key Points to Remember

You

must conduct objective appraisals on a scheduled basis. tell employees how theyre doing and how they can improve. help create a system of motivation and rewards based on performance.

Appraisals

Appraisals

Performance Appraisal Methods

Individual

Evaluation Methods

Confidential

report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO

Critical Incident method

Ex: A fire, sudden breakdown, accident Workers reaction A B C D E scale

informed the supervisor immediately 5 Become anxious on loss of output 4 tried to repair the machine 3 Complained for poor maintenance 2 was happy to forced test 1

Checklist method
Simple checklist method Weighted checklist method Forced choice method

Simple checklist method: Is employee regular Y/N Is employee respected by subordinate Y/N Is employee helpful Y/N Does he follow instruction Y/N

Weighted checklist method

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

Forced choice method

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

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

Indifferen t
Attitud e

Enthusiasti c

No Interes t

Intereste d Discontinuous Rating Scale

Very enthusiast ic

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

Performance Appraisal Methods

Group

Appraisal

Ranking Paired

comparison Forced distribution Performance tests Field review technique

Ranking method

Employee Rank A B C D E 2 1 3 5 4

Paired comparison method

A B C D E Final Rank A - - - + + 3 B + + + 2 + + 1 + 4 5

C + + D E -

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

Forced Distribution method

No. of employee s

10% 20% poo r

40%

20%

10% Excellen t

Below averag goo averag e d e Force distribution curve

Field review method

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

Performance criteria for executives

For

top managers

Return

on capital employed Contribution to community development Degree of upward communication from middlelevel executives Degree of growth and expansion of enterprise.

For middle level managers

Departmental

performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies

For supervisors
Quality

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

and quantity of output in a given