1. performance appraisal

7/30/2019 1. Performance Appraisal

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PERFORMANCE APPRISAL & PERFORMANCE

MANAGEMENT


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PERFORMANCE APPRISAL SYSTEM


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Performance is what is expected tobe delivered by an individual or a

set of individuals within a time

frame.

What is expected to be delivered

could be stated in terms of results

or effort, tasks & quality with

specification of conditions underwhich it is to be delivered.

What is Performance


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Performance of an individual in anorganizational setting may

therefore be defined as the

output delivered by anindividual in relation to a givenrole during a particular period

of time under the set ofcircumstances operating atthat point of time.

What is Performance


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What is Performance

Maximum output is expected out of every role:

Previous performance of an individual in a

similar task.

Performance of any other comparable

individual or a standard available at that time.

Estimated performance of the individual

based on the competencies, needs of the time,

situational constraints etc.

Physical labour can be better measured than

managerial performance .

Managerial performance is highly

interdependent and dynamic


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Performance has many dimensions

Output or result dimension.

Input dimension.

Time dimension.

Focus dimension.

Quality dimension.

Cost dimension.

What is Performance


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Output or result dimension.

SMART-

Specific.

Measurable.

Acceptable.

Realistic.

Time-bound.

What is Performance


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Performance has manydimensions

Input dimension.

It deals with the activities or tasks tobe performed by an individual.

Input dimension constitutes the

nature of activities, the time frame,

quality of inputs etc.

Performance can be managed better

if nature of inputs required can well

envisaged, planned properly and

implemented efficiently.

What is Performance


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Time dimension.

Performance can be defined for a

day, week, month, year or a lifetime.

Hence performance management

is time bound and role specific.

What is Performance


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Focus dimension.

Based on company product, values, ethics,

culture etc the focus could vary to someextent.

One can not chase two rabbits and get both.

However multi-tasking is not uncommon.

Managers should delegate, guide and

manage more than doing it all by themselves.

Team work is critical. Focus should never be

lost.

What is Performance


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Quality dimension.

No one can stand a sub-standard

performer. Hence probation.

Quality is a relative term need

and situation based.

What is expected should be made

clear at the starting point.

Quality wins in the long run and

should never be compromised.

What is Performance


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Cost dimension.

All Organizations/companies are

cost conscious.

Too much and too less is not good.

Operation successful patient dead.

The final goal should be kept in

mind.

What is Performance


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PA is the method of evaluating thebehaviour of the employees in the

workplace, normally including

both quantitative and qualitative

aspects of the job.

How the employee is performing

How the employee can develop

What the superior can do to make it

happen

How the job is going

What is Performance Appraisal


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Provide information about the performance ranking.

Decision regarding salary revision, confirmation,

promotion and demotions.

Provide feedback about level of achievement and

behaviour of the subordinate.

Provide information which helps to counsel the

employees.

Provide information to diagnose the deficiency of the

employees.

Provide training and development needs of the

employees.

WHY conduct a PerformanceAppraisal


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The performance review must occur atleastonce in a year. Some companies review twice in

a year. However, as a part ofPerformance

Management, the performance review is acontinuing, ongoing activity.

WHEN to conduct a PerformanceAppraisal


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Establish a more effective two way communication

Set performance objectives

Help improve current performance

Assess past performance

Provide feedback on performance

Identify training & development needs

Allocate rewards

Identify staff with promotional possibilities

Assist in career planning decisions.

Provide opportunity for professional growth

OBJECTIVES of PerformanceAppraisal


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The Appraisee

The Appraiser

HR Department

WHO are involved in Performance

Appraisal


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Regularity of the

Attendance.

Ability to work

individually or in group.

Leadership skills.

Initiative, Technical skills.

Ability to grasp new things.

Area of interest.

Attitude.

Job Knowledge.

Content of Performance Management

Judgmental Skills.

Area of improvement.

Past Achievement.

Honesty and sincerity.

Innovativeness

Cost & Time consciousness

Communication

i l b h i l di i


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Planning ability.

Organizing ability

Coordination.

Supervision.

Leadership & Dynamism.

Initiative.

Resourcefulness (Oral &Written).

Creativity &

Imaginativeness.

Managerial & behavioural dimensionsused in Performance Management

Development of

subordinates.

Contribution to team

spirit.

Analytical abilities.

Delegation.

Public relations

Sociability

i l & b h i l di i d


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Self Confidence.

Decision making

Cooperativeness.

Flexibility.

Problem solving

Risk taking.

Ability to motivatesubordinates.

Conflict management.

Communication skills.

Managerial & behavioural dimensions usedin Performance Management

Perseverance.

Hard work/Smart work.

Integrity.

Drive

Empathy

Assertiveness

Originality

Data management


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PBS KUMAR

Traditional Methods of

Performance Appraisal.

Graphic Rating Scales: This is the oldest and

most widely method used for performance

appraisal. The scales may specify five points, so

a factor such as job knowledge might be rated 1(poorly informed about work duties) to 5 (has

complete mastery of all phases of the job).


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Quantity of work: Volume of workunder normal workingconditions

Unsatisfactory(1)

Fair(2)

Satisfactory

(3)

Good(4)

OutStandi

ng

(5)

Quality of work: Neatness,thoroughness and accuracy ofwork Knowledge of job

A clear understanding of thefactors connected with the job

Attitude: Exhibits enthusiasm andcooperativeness on the job

Table: Typical Graphic Rating Scale

Employee Name................... Job title .................

Department ......................... Rate ...............

Data ..................................


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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 onthe basis of their overall performance. It is

quite useful for a comparative evaluation.


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Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions forincreased sales and to have positive relationships withcustomers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughoutthe year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by thesupervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roamaround purposelessly.


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Paired Comparison Method

A better technique of comparison than the

straight ranking method, this method compares

each employee with all others in the group, one

at a time. After all the comparisons on the basisof the overall comparisons, the employees are

given the final rankings.


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PBS KUMAR

Forced distribution method

Forced ranking is a method ofperformance appraisal to rank

employee but in order of forced

distribution.


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Checklist Method

Another simple type

of individual

evaluation method is

the checklist.

Is the employee really interested in the task assigned? Yes/No

Is he respected by his colleagues (co-workers) Yes/No

Does he give respect to his superiors? Yes/No

Does he follow instructions properly? Yes/No

Does he make mistakes frequently? Yes/No


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Critical Incidence Method

Under this method, the manager prepares lists ofstatements of very effective and ineffective behavior of anemployee. These critical incidents or events represent theoutstanding or poor behavior of employees on the job .

July 20Mr. Timmaji patiently attended to the majorcustomers complaint. He is polite, prompt, enthusiastic in

solving the customers problem.

On the other hand the bad critical incident may appear asunder:

September 28Mr. Timmaji stayed 45 minutes over on hisbreak during the busiest part of the day. He failed toanswer the store managers call thrice.


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Essay Method

This method asked managers /

supervisors to describe strengths and

weaknesses of an employees behavior.


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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 andweaknesses of the subordinate.


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Modern Methods


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MBO

A process whereby the superior and

subordinates of the organization jointly

identify its common objectives, define

each individuals major areas of

responsibility.

1. Establishment of Goals

2. Setting the performance standard

3. Actual level of job attainment is

compared with the goals agreed upon.

4. Establishing new goals and newstrategies for goals not previously

attained.


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Assessment Centre

This not a technique of performance appraisal

by itself. In fact, this is a system or organization

where assessment of several individuals is done

by experts by using various techniques. Thesetechniques used role playing, case studies etc.


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360 DEGREEFEEDBACK


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What is 360 DF?

360 Degree Feedback is a multi - rater

feedback system where an individual is

assessed by a number of assessors including

his boss, direct reports, colleagues, internalcustomers and external customers


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InternalCustomers

Boss

Peers

External

Customers

Team

Members

Self

Feedback

collected from

Using a specially

designed tool

Anonymously

What is 360 DF?

Common Problems Associated with Conducting


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1. Halo/horn effect

employees extreme

competence in one area

shines over all others.

Conversely, employee does

poorly in one area and this

overshadows all areas.

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 Conductingthe Appraisal


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3. Central Tendency rate everyone as average

4. Recency Effect focusing on recent

performance instead of entire year

5. Personal Prejudice If the rater dislikes onegroup or employees, he may rate them at the

lower end.

6. Favoritism evaluating friends or those whodont make waves, etc. more favorably than

others

Common Problems Associated with Conducting the

Appraisal


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