performance appraisal defined and tools chapter -1

Mahmood Qasim

PerformanceAppraisal

“Performance Appraisal is not an event but a process”

Mahmood Qasim

Performance appraisal is a systematic means of

ensuring that managers and their staff meet regularly to

discuss past and present performance issues, and to agree what future action is appropriate on both sides.

PerformanceAppraisalDefined

Mahmood Qasim

RegularPerformanceAgreeFuture

Key Words in the Definition

Mahmood Qasim

Assessment of performance is best when it is a continuous process and issues are dealt with

as they arise.

Regularity

Mahmood Qasim

Performance needs to be considered both in terms of results achieved and behavior demonstrated.Reviewing results in the context of actions and

behavior is necessary to develop a full

understanding of individual performance.

PerformanceResults and Behavior

Mahmood Qasim

Disciplinary IssuesAvoid discussing

disciplinary arena such as time-keeping appearance.

Such issues should be dealt with as and when the

occur. These points may only be discussed when they affect performance.

What not to appraise

Mahmood Qasim

Personality Appraising performance should be held to mean

literally that, and not appraising personality and

personal characteristics.

What not to appraise

Mahmood Qasim

Performance appraisal should be seen as an honest discussion. It

should promote agreement about how current performance

matches up to requirements and how the

future might be approached.

Agreement

Mahmood Qasim

Assessing performance is not appraising it. Assessment

concerns only with the past and present. Appraisal is encouraging them to look

ahead to improve effectiveness, utilize

strengths, redress weaknesses, and examine

how potential and aspirations match up.

Misconception

Mahmood Qasim

Pushing previously prepared reports across a desk,

cursorily inviting comments, and expecting it to be meekly

signed by the employees is not appraisal – this is merely a form filling exercise which

achieves little in terms of giving staff any positive

guidance and motivation.

Misconception

Mahmood Qasim

Douglas McGregor : Performance Appraisal plans are designed to

meet three needs:1. They provide systematic

judgment to back up salary increases,

promotions, transfers, sometimes demotions and transfers.

Performance Goals of

Appraisal

Mahmood Qasim

2. They are means to tell subordinates how they are doing and

suggesting needed changes in his

attitude, skills, behaviors, or job

knowledge’ they let him know ‘where he

stands,’ with the boss.


Appraisal

Mahmood Qasim

3. They are also being increasingly used as a basis for the coaching and counseling of the individual by the superiors.


Appraisal

Mahmood Qasim

Set performance objectives Assess past performance Help improve current performance Assess training and development needs Assess future potential Assist in career planning decision Assess and review the reward system Help develop counseling systems Facilitate review of employees Help develop committed employees Provide incentives to employees for self-development Establish channels of communication Meet psychological needs Know how well or otherwise the individual is performing Provide fair and systematic criteria for promotion and

transfer Develop human relation skills of the assessors.

Performance Necessity of

Appraisal

Mahmood Qasim

Performance Objectives of

Appraisal

Allocate resource

Implementation of

fairness

Trainingand

development

Equal opportunity

to all

Reward for

performance

Feedback

Mahmood Qasim

To conduct Performance Appraisal various factors

such as the organizational culture, financial status, level in

the hierarchy, job designing, job

specification and description should be

considered.

System MustNeed-Based

Be Planned

Mahmood Qasim

The success of Performance Appraisal

strictly depends on how well is it understood by

the employees. The better understanding employees have the

more confident they will have on the results.

RequiresSystem

Transparency

Mahmood Qasim

In every organization the job profile is different at

different level. Thus different techniques

must be used to assess the performance of the

people performing different jobs.

Techniques forDifferent

Different Jobs

Mahmood Qasim

The level of motivation is always high when an

employee is let to appraise his own

performance.

IsSelf-Evaluation

Necessary

Mahmood Qasim

Although over the year many modern techniques

have been introduced but the traditional techniques are still practiced in various

organizations as they still impart meaning to

performance appraisal.

Methods Traditional

Mahmood Qasim

The rater provides a subjective evaluation of

an individual. The evaluation is based on

the opinions of the rater, and in many cases the criteria are not directly

related to job performance

Rating Scales

Mahmood Qasim

The checklist method requites the rater to

select words or statement s that describe

the employee’s performance and

characteristics.

Checklists

Mahmood Qasim

Names of all the people are written randomly on

the left side. The appraiser simply selects

the most efficient person and write his name on the right side. Finally

ranking scale is used to highlight extremes.

Ranking Straight

Mahmood Qasim

An ideal scale is created to compare

man-to-man on various attributes. This

technique is also known as ‘factor

comparison’.

Comparing Person to Person

Mahmood Qasim

The person to be assessed are compared

with each other in pairs, one at a time for

different rating. The appraiser is required

to fix some criteria for making his

assessment.

Comparison By Way of Paired Ranking

Mahmood Qasim

The evaluator is required to give a printed form to

each employee with certain parameters in

graphic form which can be understood as the

characteristics required in an employee.

Assessment of Linear Rating Scale

Mahmood Qasim

The rating elements have a number of sets of

phrases and adjectives in pairs. In case four phrases

are given, the two sets would be positive and negative. The choice of

the rater is fixed and he is forced to choose the

most or the least descriptive phrases.

Forced Choice Method

Mahmood Qasim

It requires the rater to record statements that

describe extremely good or bad behavior related

to job performance. Recorded statements

include a brief explanation of what

happened.

Critical Incident Method

Mahmood Qasim

These are employee-produced listings of

accomplishments such as publications, speeches,

leadership roles, and other professionally

related activities.

Accomplishment Records

Mahmood Qasim

It identifies and evaluates relevant job-related

behaviors.

Behaviorally Anchored Rating Scales

Mahmood Qasim

Skilled HR representative goes into the “field” and assists supervisors with their ratings and solicits information about the

employee’s performance from the immediate

supervisor. Prepares and send the evaluation to

the supervisor for review.

Field Review Method

Mahmood Qasim

In limited number of jobs, performance appraisals

may be based on a test of knowledge or skills.

These tests are particularly appropriate when a company relies on a pay-for-knowledge

or pay-for-skills.

Performance Tests and Observations

Mahmood Qasim

It is a collection of different methods that compete one person’s

performance with that of coworkers.

Comparative Evaluation

Approaches

Mahmood Qasim

Ranking Method: Requires rater to place each employee in order from best to worst. This

method is subject to halo and recency effects,

although rankings by two or more raters can be

averaged to help reduce biases.


Approaches

Mahmood Qasim

Forced Distribution:It requires raters to sort

employees into different classifications, usually

with specified proportions in each

category.


Approaches

Mahmood Qasim

Point Allocation Method: This method requires the rater to allocate a fixed

number of points among employees in the group.

Good performers are given more points than

are poor performers.


Approaches

Mahmood Qasim

Paired Comparisons:It forces raters to

compare each employee with all other employees

in the same group.


Approaches

Mahmood Qasim

Evaluation is done on the fact as to how much an employee returns to the

organization against what is spent on him or her.

Evaluation of Employee Cost

Mahmood Qasim

Past-oriented approaches is like driving a car by looking through the

rearview mirror. Future-oriented appraisals focus on future performance by evaluating an employee’s potential or setting future

performance goals.

Modern Methods of

Appraisal

Mahmood Qasim

It can be a useful technique if the goal of evaluation is to further

self-development. It helps users set personal

goals. But the employees can be too lenient or

critical about his or her performance.

Self-appraisals

Mahmood Qasim

The set goals are objectively measurable and mutually agreed on

by the employee and the manager. Since the employee gets to

participate inn setting his or her goals they are

motivated to achieve it.

Management by Objectives

Mahmood Qasim

Process of MBO

Preparation of future objectives

Mutual setting of objectives by appraiser and

appraisee

Deciding criteria for measurement of

objectives by mutual agreement

Job performance

Need based intermittent review

of performance

Periodical review by appraiser and

appraisee

Mahmood Qasim

Psychologists assess individual’s future potential, not that

individual’s past performance. It is done

through interviews, psychological tests,

discussions with supervisors.

Psychological Appraisals

Mahmood Qasim

An individual is appraised by is boss, team members, peers,

customers, subordinates and by the subject

himself. It is used in various forms such as

540, 400, 0r 180 depending on its horizon.

Multi-level Multi-source Feed Back

System(360 Feedback)

Mahmood Qasim

Identification of developmental needs and

preparation of development plans more objectively in relation to current of future roles, to

facilitate performance improvements for an

individual or a group of individuals.

Objective of the360 Feedback

Mahmood Qasim

Provision of insights into the strong and weak

areas of a candidate in terms of the effective performance of roles,

activities, styles, traits, qualities, competencies,

etc.


Mahmood Qasim

Impact of knowledge, attitude and skills.


Mahmood Qasim

Reinforcement of other change management

efforts and interventions directed at organization effectiveness. Such as

TQM efforts, customer-focused or internal

customer satisfaction enhancing interventions,

cost-reducing interventions, etc.


Mahmood Qasim

Generation of data to serve as a more objective

basis for rewards and other personal decisions.


Mahmood Qasim

Alignment of individual and group goals with organizational vision,

values and goals.


Mahmood Qasim

Basis for performance-linked pay or

performance rewards.


Mahmood Qasim

Aid of in culture building, and leadership

development and team building.


Mahmood Qasim

Planning of internal customer satisfaction

improvement measures.


Mahmood Qasim

Increase in role clarity and accountability.


Mahmood Qasim

The job-related simulations are the main focus of this system. The technique aims to assess an employee’s potential for facilitating his rise in the hierarchy. Evaluation is done by giving rating in the form of acceptability.

Center of Assessment

Mahmood Qasim

In case of a manager the evaluators observe and

evaluate the performance of managers in several

situations by fixing benchmark criteria,

mainly in the field of planning, organizing, interpersonal skills,

creativity and decision making

Center of Assessment Technique

Mahmood Qasim

Techniques involved in this process are use of

the business game, group discussion and role-

playing incidents when there is no leader.

Therefore evaluators are managers with hands-on experience at different levels of management.

Center of Assessment Technique

Mahmood Qasim

It identifies potentials in employees to take higher

positions and responsibilities. It

informs employees about future prospects,

succession plans, training efforts, and provides

guidelines for improving their career prospects.

Potential Appraisal

Mahmood Qasim

Study Found ThatCriticism had a negative impact on

achievement of goals.Praise has little effect one way or they

otherPerformance increased most when

specific goals are establishedDefensives resulting from critical

appraisal produced poor performance.Coaching should be day to day, not

once in a year activity.Mutual goal setting, not criticism,

improves performances.

Electric andGeneral

Mills

Mahmood Qasim

Thank You

performance appraisal defined and tools chapter -1

Education