Writa Bhattacharjee

PERFORMANCE AND POTENTIAL APPRAISAL

Understanding Performance Appraisal System

Types of Performance Appraisal SystemsPotential Appraisal

AGENDA

UNDERSTANDING PERFORMANCE APPRAISAL SYSTEMSSection 1

What gets measured, gets performed.Part of the Performance Management ProcessEvaluating an employee’s current or past

performance relative to his or her performance standards and also against that of other employees.

Requirements of effective Appraisal systems:RelevanceSensitivityReliabilityAcceptabilityPracticality

WHAT IS PERFORMANCE APPRAISAL?

PROCESS OF PERFORMANCE APPRAISAL

ESTABLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH STANDARDS

DISCUSS THE APPRAISAL WITH THE EMPLOYEE

IF NECESSARY, INITIATE CORRECTIVE ACTION

Setting Goals: SMART goalsChallenging but doable goalsEncourage participation

Appraisal InterviewTypes: Satisfactory-Promotable, Satisfactory-Not

Promotable, Unsatisfactory-Correctable, Unsatisfactory- Uncorrectable

How to conduct- Objective, Impersonal, Encourage to talk, Direct

Handling Defensive subordinatesCriticizing a subordinate

PROCESS OF PERFORMANCE APPRAISAL

What?- Factors AppraisedWho?- Who appraisesWhy?- Objectives of PA systemWhen?- FrequencyHow?- Methods

COMPONENTS OF PERFORMANCE APPRAISAL SYSTEM

Generic dimensionsJob’s actual dutiesCompetencies/ behaviour

FACTORS APPRAISED

Immediate supervisorPeersRating committeesSelf-ratingsSubordinatesCustomers

WHO APPRAISES

Role in PMSSatisfactory performance levelDevelopmental planCareer planningRaise and promotionValidation for hiring practicesDiagnose organizational problems

OBJECTIVES / PURPOSES OF PA

Formal appraisal- traditionally- once or twice a year

Far too infrequentFormal plu7s regular informal conversationsNew employees- more frequent- confirmation

FREQUENCY

Unclear standardsHalo ErrorContrast ErrorRecency ErrorCentral TndencyLeniency/strictnessBias

APPRAISAL ERRORS

TYPES OF PERFORMANCE APPRAISAL SYSTEMS

Section 2

Traditional MethodsRankingPaired comparisonGradingGraphic or linear rating

scalesForced Distribution

MethodChecklist systemFree form essay

methodCritical Incidents

Assessment CentreBARSMBO360 degree

TYPES OF PA METHODS

Modern Methods

Each employee is compared on traits with every other employee in pairs.

Results for each employee are tallied and this yields the rank order for the entire group

No. of comparisons given by [N(N-1)]/2, where N is the number of employees.

Advantages-?Disadvantages-?

PAIRED COMPARISON

Ranking employees from best to worst on a trait or traits or as ‘the whole person’

Either Straight or AlternateStraight- From Best employee downwards to

worstAlternate- Best employee, then worst, then

second-best, etc.Advantages-?Disadvantages-?

RANKING

Rater considers certain features or traits and marks them according to a scale.

Attributes are established and carefully defined on a scale, with attached grades.

Advantages-?Disadvantages-?

GRADING

Traits are listed with a range of performance values for each trait, with numerical values assigned to each performance level.

Assigned values are then totalled.Advantages-?Disadvantages-?

GRAPHIC OR LINEAR RATING SCALE

Similar to GradingPlace predetermined percentages of ratees

into performance categoriesAdvantages-?Disadvantages-?

FORCED DISTRIBUTION

Rater does not evaluate ratee- personnel department evaluates- rater provides report

Yes/No options for behaviours displayedValues of questions- equal or weightedUse of Likert scale or descriptive optionsAdvantages-?Disadvantages-?

CHECKLIST SYSTEM

Free-form, open ended appraisalDescriptive, qualitativeDetailed feedbackAdvantages-?Disadvantages-?

FREE FORM / NARRATIVE ESSAY

Supervisor keeps a log of positive and negative examples- critical incidents

Critical incidents basis of appraisalAdvantages-?Disadvantages-?

CRITICAL INCIDENT METHOD

Not a ‘place’Battery of tests to evaluate competenciesMultiple assessors, multiple testsAdvantages-?Disadvantages-?

ASSESSMENT CENTRE

Behaviourally Anchored Rating ScalesCombines Critical Inicdent and Graphic

Rating Scales methodsScales with aligned critical incidents for

distinct performance dimensionsAdvantgaes-?Disadvantages-?

BARS

Setting specific, measurable goals with each employee and then periodically reviewing the progress made

Measure of each employee’s contribution to organization’s performance

Advantages-?Disadvantages-?

MBO

“All round” collection of performance dataAppraisal by superiors, subordinates, peers

and customersCompiled resultAdvantages-?Disadvantages-?

MULTI-RATER OR 360 DEGREE

POTENTIAL APPRAISAL

Section 3

Potential is different from performancePromote for potentialProblems of promoting for performanceFuture organizational needsPotential- latent qualities that manifest in

concrete terms while performing various jobs/tasks

WHAT IS POTENTIAL APPRAISAL?

Assess capacity to work in future without being overstretched

Assist organization in succession planning

OBJECTIVES OF POTENTIAL APPRAISAL

Role DescriptionsQualities needed to perform the rolesRating mechanisms:

Rating by othersTestsGamesRecords

Organizing the system:Merit vs. seniority weightageWeightage to managerial skills- T,I,CMechanisms for assessing on indicators, with reliability

Feedback

STEPS IN POTENTIAL APPRAISAL

POTENTIAL ATTRIBUTESAnalytical powerCreative imaginationSense of realityCapability of taking

holistic view from a detached position

Effective leadershipConceptual skillsTechnical skillsCommercial skillsCommunication skills

Planning and organizing ability

Willingness to take additional responsibility

InitiativeResult orientationTeamwork and team

buildingSubordinate developmentNegotiation skillsProblem solving and

decision makingProcess orientation

Managing Human Resources- Wayne F. Cascio

Human Resource Management- Gary DesslerA Textbook of Human Resource Management-

C. B. Mamoria & S. V. GankarHuman Resource Management- Biswajeet

Pattanayakwww.openlearningworld.com

REFERENCES

Questions?

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