Performance Appraisal II

Presented to,Dr. Nadeem Anwar

Presented by,Syeda Mehvish Dildar

According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.

Definitions

Performance appraisal According to Flippo, a prominent

personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job."

Customers Peers

Self Subordinates

Managers

Performance Criteria

Performance Criteria

First Phase: The origin of performance management can be traced in the early 1960’s when the performance appraisal systems were in practice. . During this period, Annual Confidential Reports (ACR’s)  was also known as Employee service Records were maintained for controlling the behaviors of the employees and these reports provided substantial information on the performance of the employees.

Second Phase: This phase continued from late 1960’s till early 1970’s, and the key hallmark of this phase was that whatever adverse remarks were incorporated in the performance reports were communicated to the employees so that they could take corrective actions for overcoming such deficiencies

Performance Criteria

Third Phase: In this phase the term ACR was replaced by performance appraisal. One of the key changes that were introduced in this stage was that the employees were permitted to describe their accomplishments in the confidential performance reports, several new components were considered by many organizations which could measure the productivity and performance of an employee in quantifiable terms such as targets achieved, etc.

Fourth Phase: This phase started in mid 1970’s and its origin was in India as great business tycoons like Larsen & Toubro, followed by State Bank of India .

Gaining a better understanding of their role

Understanding more clearly how and where they fit in within the wider picture

A better understanding of how performance is assessed and monitored

Getting an insightImproving understanding of their

strengths and weaknesses and developmental needs

Identifying ways in which they can improve performance

Opportunities to hear and exchange views and opinions

away from the normal pressure of workto identify any potential difficulties or

weaknessesto plan for and set objectives for the next

periodto think about and clarity their own roleto plan for achieving improved

performanceto plan for further delegation and

coachingto motivate members of the team

Pitfalls, Constraints

Performance Appraisal Failures:

Some times performance appraisal process do not satisfy the purpose for which it is conducted, that means it isfaced with some failures and there are certain reasons, these reasons are as under:

1. Manager lacks information2. Lack of appraisal skills3. Manager not taking appraisal seriously4. Manager not prepared5. Employee not receiving ongoing feedback6. Manager not being honest or sincere7. Ineffective discussion of employee development8. Unclear language9. Insufficient reward for performance

• If not done right, they can create a NEGATIVE EXPERIENCE. • Performance appraisals are very time consuming and can be

overwhelming to managers with many employees. • They are based on human assessment and are subject to rater

errors and biases. • They can create a very stressful environment for everyone

involved.

Issues in appraisal system

Appraisal Design

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?

Disadvantages

Advantages

New Trends in Performance Appraisal

Performance Appraisal Methods

The type of performance appraisal system utilized depends on its purpose. If the major emphasis is on selecting people for promotion, training, and merit pay increases, a traditional method such as rating scales may be most appropriate. Collaborative methods are designed to assist employees in developing and becoming more effective.

a. 360-Degree Feedback—Involves input from multiple levels within the firm and external sources as well.

b. Rating Scales—Rates employees according to defined factors. The factors chosen for evaluation are typically of two types: job related and personal characteristics.

c. Critical Incidents—Requires written records be kept of highly favorable and highly unfavorable work actions.

d. Essay—The rater simply writes a brief narrative describing the employee’s performance. This method tends to focus on extreme behavior in the employee’s work rather than routine day-to- day performance.

Harnessing New Technology

1. Use of technology to communicate with employees

Company intranets

E-Newsletters

Company emails

E.Newsletters

2. A move toward single software platforms

Integrated HRIS

PeopleSoft

SAP

Oracle

SAP SESoftware companySAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. SAP is headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices in 130 countries

PeopleSoftCompanyPeopleSoft, Inc. was a company that provided Human Resource Management Systems, Financial Management Solutions, Supply Chain Management, Customer Relationship Management, and Enterprise Performance .Founder: David DuffieldFounded: 1987Acquisition date: January 2005Parent organization: Oracle Corporation

Oracle CorporationComputer hardware companyThe Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood City, California, United States

Perhaps most significant development is the use of organizational intranets

An intranet is internal network that makes use of World Wide Web technology (browsers, servers, etc.) to gather and disseminate information within the firm

“A good process is the foundation of your success”