Performance Appraisal

A) Performance appraisal definition

B) Methods of performance appraisal

C) Link between Appraisal & the other HR functions

Eng Ashraf El-Tanany

Dr Haytham El Marghany

Dr Khaled Touny

Agenda

performance management

is the process of identifying, measuring, managing, and developing the performanceof the human resources in an organization.

Performance appraisalOn the other hand, is the ongoing process of identifying, observing, measuring,

and developing human performance in organization

soappraisal is just one piece of performance management.

Performance appraisal definition

responsibilities

Managers at all levels are responsible for

1- obtaining the skills required to implement the department's performance2- preparing l results-oriented objectives for each employee as well as

performance standards for each duty or expected result3-coaching employees on an ongoing basis by focusing on problem solving

and employee development4-providing employees with an annual performance review based on

established 5-involving employees in planning and assessing their performance6-problem-solving with employees who require corrective action to achieve

wholly

What is an employee's responsibility regarding performance?

Employees are responsible for:- performing work to standard to achieve the desired

results- asking for help in solving problems when necessary

and informing the manager of-barriers to achieving desired results and standards

participating in performance planning and preparing for performance discussions

- signing the annual review document and freely entering or attaching commentsDevelopment plan -completing any training and

1-Enhances dialogue and understanding2- skill level and performance of each employee

development of employees3-Supports continuous quality improvement4-Recognizes a job well doneimprovement 5- Identifies areas for training and6-to strengthen working relationships between

supervisor and employee7-to clarify job duties and responsibilities;8-to establish mutually understood standards for

measuring performance and9-to aid in promotion, retention and salary decisions.

OBJECTIVE

Methods of performance appraisal

• Performance appraisal methods include 11 methods as follows:

1) Critical incident methodin this method the manager writes down positive and negative performance behavior of employees throughout the performance period

2) Weighted checklistThis method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

3) Paired comparison analysisPaired comparison analysis is a good way of weighing up the relative importance of options.A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

4) Graphic rating scalesThe Rating Scale is a form on which the manager simply checks off the employee’s level of performance.This is the oldest and most widely method used for performance appraisal.

5) Essay EvaluationThis method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative techniqueThis method usually use with the graphic rating scale method.

6) Behaviorally anchored rating scalesThis method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

7) Performance ranking methodRanking is a performance appraisal method that is used to evaluate employee performance from best to worst.Manager will compare an employee to another employee, rather than comparing each one to a standard measurement .

8) Management By Objectives (MBO)MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

9) 360 degree performance appraisal360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

10)Forced ranking (forced distribution)Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

11)Behavioral Observation ScalesBehavioral Observation Scales is frequency rating of critical incidents that worker has performed

The link between performance appraisal and other human resources management functions

1)Appraisal and Human resources planningAppraisal has an administrative purposes that consider the use of performance data as a basis for personnel decision making, including human resources planning, for example compiling skills inventories, obtaining information regarding positions to be created, and developing succession plans.2)Performance appraisal and recruitment, selection, and placement

The effectiveness of these functions can be partially be measured by comparing employees’ performance appraisals with their test scores as job applicants. For example, management may find that applicants who scored about the same on selection tests show a significant difference in performance after one year on the job, thus the test may not accurately predict behavior. Thus performance appraisal carried out on new.

3)Appraisal and remunerationIf the decision is made to use a merit pay system which is based on performance appraisal results, then it follows that appraisal must be done and done very well even if performance appraisal results are not used for merit pay purposes.4)Appraisal and training and developmentEmployee performance appraisals are especially appropriate for identifying individual training and educational needs, because an appraisal is intended to determine how well an individual is performing his or her job. Deficiencies stemming from the lack of individual knowledge or skill are used to identify traditional training needsProficiencies are traditionally used to plan employee educational activities leading to promotion or other future career moves for individuals

5)Appraisal and promotionPerformance evaluation can be used to increase and to promote an individual as well as to improve employee performance and also improve employee motivation.Thus when conducting performance appraisal for promotion purposes subjectivity (leniency, halo error, central tendency) should be avoided so that any outcome of the appraisals will be perceived as fair by all employees who will be expecting promotion.6)Appraisal and dismissalsThe appraisal can establish that there is a serious performance gap between the desired and current performance. Corrective measures to make up for the performance gap should be instituted and this may include some form of training (on or off-the-job).lf performance has failed to match the required job performances, another job less challenging should be given to the employee after which failure to execute may call for the dismissal of an employee