performance appraisal

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Performance Appraisal

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Performance Appraisal

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance and potential of its group members.Performance Appraisals are yearly or monthly evaluations given to employees.They evaluate the needs of the employee and supervisor.Performance Appraisal is the process by which organizations evaluate employee job performance.

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Steps in performance appraisal

Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal dataFor appropriate purpose

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Objective of Performance Appraisal

To help better current performancesTo help in development of the employee.To determine training and development needs.To give employee feedback and counsel themTo review performance for salary purposes.

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Process of Performance Appraisal

Setting performance

standardsTaking correctivestandards

Discussingresults

Comparing standards

Measuringstandards

Communicatingstandards

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Issues in appraisal system

Appraisal Design?

Formal and informal

What methods?

When to evaluate?

What to evaluate?

Whose performance?

Who are the raters?

What problems?

How to solve?

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Benefits of Performance Appraisal

For the AppraiseeFor the ManagementFor the Organization

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For the AppraiseeBetter understanding of his role in the organization – what is expected and what needs to be done to meet those expectationClear Understanding of his strengths & weaknesses to develop himself into a better performer in futureIncreased motivation, job satisfaction, and self – esteemOpportunity to discuss work problems and how they can be overcomeOpportunity to discuss aspirations and any guidance, support or training needed to fulfill those aspirationsImproved working relationships with supervisors

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For the ManagementIdentification of performers and non-performers and their development towards better performanceOpportunity to prepare employees for assuming higher responsibilities Opportunity to improve communication between the employees and managementIdentification of training and development needsGeneration of ideas for improvements Better identification of potential and formulation of career plans

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For the OrganizationImproved performance throughout the organization Creation of a culture of continuous improvement and successConveying the message that people are valued

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Methods of Performance Appraisal Individual Evaluation Methods

Confidential report

Essay evaluation

Critical incidents

Checklist

Graphic rating scale

Behaviorally anchored rating scale (BARS)

Forced choice method

Management by Objective (MBO)

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Methods of Performance Appraisal Multiple Person Evaluation Methods

Ranking

Paired comparison

Forced distribution

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Methods of Performance Appraisal Other Methods

Group Appraisal

Field review technique

3600 Appraisal System

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Individual Evaluation Methods

Confidential Report

Descriptive report

Prepared at the end of the year

Prepared by the employee’s immediate supervisor

The report highlights the strengths and weaknesses of

employees

Prepared in Government organizations

Does not offer any feedback to the employee

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Essay Evaluation– The rater is asked to express the strong as well as weak

points of employee’s behavior

– The rater considers the employee’s :

Job knowledge and potential

Understanding of company’s programs, policies, objectives

etc

Relation with co-workers and supervisors

Planning, organizing and controlling ability

Attitude and perception

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Critical Incidence

Manager prepares lists of statements of very effective

and ineffective behavior of an employee

These critical incidents represent the outstanding or

poor behavior of the employees

The manager periodically records critical incidents of

employee’s behavior

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Checklist MethodSimple Checklist Method

Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N

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Checklist MethodWeighted Checklist Method

weights performance rating (scale 1 to 5 )

Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0

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Checklist MethodForced Choice Method

Criteria Rating

1.Regularity on the job Most LeastAlways regularInform in advance for delayNever regularRemain absentNeither regular nor irregular

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Graphic Rating Scale

A form is used to evaluate the performance of the

employees

A variety of traits may be used in this device, the most

common being quality and quantity of work

Easy to understand and use.

Permits statistical tabulation of scores of employees

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Behaviorally Anchored Rating Scale (BARS)Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

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Forced Choice Method

This method uses several sets of paired phrases, two of

which may be positive and two negative

The rater is asked to indicate which of the four phrases

is the most and least descriptive of a particular worker

Favorable qualities earn plus credit and unfavorable

ones earn the reverse

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Management by objectives (MBO)

MBO emphasizes collectively set goals that are tangible,

verifiable, and measurable

Focuses attention on goals rather than on methods

Concentrates on Key Result Areas (KRA)

Systematic and rational technique that allows management to

attain maximum results from available resources by focusing

on achievable goals

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Management by objectives (MBO) - Cont• Key Element of MBO

Arranging organizational goals in a means-ends chain

Engaging in joint goal setting

This process has the following steps:

Identify KRAs

Define expected results

Assign specific responsibilities to employees

Define authority and responsibility relationship

Conducting periodic progress review

Conducting annual performance review

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Multiple Person Evaluation MethodsRanking method

The evaluator rates the employee from highest to lowest on some overall criteria

Paired comparison method

Each worker is compared with all other employees in a group

For several traits paired comparisons are made, tabulated and then rank is assigned to each worker

This method is not applicable when the group is largeForced Distribution Methods

The rater is asked to appraise the employee according to predetermined

distribution scale.

The worker is placed between two extremes of “good” and “bad”

performance.

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Other Methods

Group Appraisal

Employee is appraised by a group of

appraisers.

The group consists of :

Immediate supervisor of the employee

Other supervisors who have close contact with the

employee’s work.

Manager or head of the departments.

Consultants or Clients

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Other Methods

Field Review Technique

The appraiser goes to the field and obtains the information

about work performance of the employee by way of

questioning the said individual, his peer group, and his

superiors

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Other Methods

3600 Appraisal System360 Degree Performance : Combination of self, peer, supervisor, and subordinate

performance evaluation

It is a systematic collection and feedback of performance data on

an individual or group, derived from a number of stakeholders

Data is gathered and fed back to the individual participant in a

clear way designed to promote understanding, acceptance and

ultimately behavior

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Appraisal Interview and Feedback - Let the Employee Know Where He Stands

To help employees do a better job by clarifying what is

expected of them

To plan opportunities for development and growth

To strengthen the superior-subordinate working

relationship by developing mutual agreement of goals

To provide an opportunity for employees to express

themselves on performance related issues

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performance appraisal

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