Performance Appraisal

Performance Appraisal
Amit Sharma B.Tech, MBA, SAP(HR), PHR|SHRM [email protected]
Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
Relationship between jab analysis and performance Job analysis performance performance appraisal:
standards Describes work & Personnel Requirement Of a particular job appraisal Describes the Job relevant strengths and weakness of Each individual Translate job Into levels of To acceptable Or unacceptable performance
Question arises?
Why do we measure performance? Effective performance appraisal systems How do we measure performance?
Characteristics
It
is a step by step process It examine the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees
Needs and Objectives:

Provide
feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management
Appraisal Benefits (cont.)
Appraisals offer employees:

Direction Feedback Input Motivation
Appraisal Benefits
Appraisals
offer the
Development
company:
Documentation Employee Feedback Legal
protection Motivation system
Why Appraisals Are Important
Recognize accomplishments Guide progress Improve performance
Why Important (cont.)

Review
performance Set goals Identify problems Discuss career advancement
Steps in performance appraisal

Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
Process of PA
Taking corrective standards Setting performance standards Communicatin g standards Measuring standards Comparing standards
Discussing results
Issues in appraisal system

Formal and informal What methods? When to evaluate? What to evaluate? How to solve? Appraisal Design? Whose performance? Who are the raters? What problems?
What to evaluate? (Philip Model)
H Potenti al L L
Problem children Planned separatio n Performanc e
star s Social citize n H
How PA contribute to firms competitive advantages

Improving performanc e Values and behavior Competitiv e advantage
Making correct decision
Minimizing dissatisfaction And turnover
Ensuring legal competence
1.
Problems in performance appraisal

Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
2. 3. 4. 5. 6.
Problems in performance appraisal (Contd) Incompetence

Negative approach Multiple objectives Resistance Lack of knowledge
Essentials of an effective appraisal system

Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal
Appraisals and Discrimination

Title ADA Other Laws
VII fair employment
Discrimination (cont.)
Failure
to communicate standards Failure to give timely feedback Failure to allow employees to correct performance Inconsistency in measuring performance Failure to document performance objectively
Define
performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals
Appraisal Forms
Measure Performance
Measurement
systems need to
be: Specific Fair Consistent Clear Useful
Measure Performance (cont.)

Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented
Make
sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis
Document Performance
Based
on job requirements Realistic Measurable Observable Challenging Prioritized
Set Goals.
Employee Input
Employees
take an active role:
Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting
Preparation
Employees: Review performance Think about new goals
Preparation (cont.)
Supervisors:
Review
performance Complete written appraisal Think about new goals Schedule time and place
Start the Meeting

Lay
out agenda Talk about money Encourage input Give good news first
During the Meeting

Review performance: Based on previous goals Noting strengths and accomplishments Identifying areas for improvement
Focus
on the professional Give objective examples Invite response Listen actively Create we mentality
Presentation Tips
During the Meeting (cont.)

Set
goals: Based on company goals Building on areas that need improvement
End the Meeting

Encourage
good performance Lay out action plan Communicate outcome of goals not met Confirm understanding
Continuous Feedback
Formal
appraisals Informal appraisals Open communication
Recognize Good Performance

Verbal Public Tangible Monetary
Identify Poor Performance

Act
early Take the right approach Deal with employee reaction Handle continued poor performance
Discipline Poor Performance

Recognize
problems Talk with employee Follow company policy
Handle Hard Cases

Reviewing
highly emotional
employees Rating former peers
Key Points to Remember

You
must conduct objective appraisals on a scheduled basis. tell employees how theyre doing and how they can improve. help create a system of motivation and rewards based on performance.
Appraisals
Appraisals
Performance Appraisal Methods

Individual
Evaluation Methods
Confidential
report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO
Critical Incident method

Ex: A fire, sudden breakdown, accident Workers reaction A B C D E scale
informed the supervisor immediately 5 Become anxious on loss of output 4 tried to repair the machine 3 Complained for poor maintenance 2 was happy to forced test 1
Checklist method
Simple checklist method Weighted checklist method Forced choice method
Simple checklist method: Is employee regular Y/N Is employee respected by subordinate Y/N Is employee helpful Y/N Does he follow instruction Y/N
Weighted checklist method

weights performance rating (scale 1 to 5 ) Regularity 0.5 Loyalty 1.5 Willing to help 1.5 Quality of work 1.5 Relationship 2.0
Forced choice method

Criteria Rating 1.Regularity on the job Most Least Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular
Graphic Rating Scale

Continuous Rating Scale Discontinuous Rating Scale Employee name_________ Deptt_______ Raters name ___________ Date________ ----------------------------------------------------------------------Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation
Indifferen t
Attitud e
Enthusiasti c
No Interes t
Intereste d Discontinuous Rating Scale
Very enthusiast ic
BARS( behaviorally Anchored rating scale)

Step 1. Step 2. Step 3. Step 4. Step 5. Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument
MBO Process
Set
organizational goals Defining performance target Performance review feedback
Performance Appraisal Methods

Group
Appraisal
Ranking Paired
comparison Forced distribution Performance tests Field review technique
Ranking method
Employee Rank A B C D E 2 1 3 5 4
Paired comparison method

A B C D E Final Rank A - - - + + 3 B + + + 2 + + 1 + 4 5
C + + D E -
No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
Forced Distribution method
No. of employee s
10% 20% poo r
40%
20%
10% Excellen t
Below averag goo averag e d e Force distribution curve
Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making Technical skills Motivation subordinate peers ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ superiorcustomer ^
Performance criteria for executives

For
top managers
Return
on capital employed Contribution to community development Degree of upward communication from middlelevel executives Degree of growth and expansion of enterprise.
For middle level managers

Departmental
performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
For supervisors
Quality
period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period
and quantity of output in a given

Performance Appraisal

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What are the different types of performance appraisal methods discussed?

What are the different types of performance appraisal methods discussed?

What are some characteristics of an effective performance appraisal system?

What are some characteristics of an effective performance appraisal system?

Performance Appraisal

Amit Sharma B.Tech, MBA, SAP(HR), PHR|SHRM [email protected]

Needs and Objectives:

Appraisal Benefits (cont.)

Appraisals offer employees:

protection Motivation system

Why Appraisals Are Important

Recognize accomplishments Guide progress Improve performance

Why Important (cont.)

performance Set goals Identify problems Discuss career advancement

Steps in performance appraisal

Issues in appraisal system

What to evaluate? (Philip Model)

Problem children Planned separatio n Performanc e

star s Social citize n H

How PA contribute to firms competitive advantages

Making correct decision

Minimizing dissatisfaction And turnover

Ensuring legal competence

Problems in performance appraisal

Problems in performance appraisal (Contd) Incompetence

Essentials of an effective appraisal system

Appraisals and Discrimination

VII fair employment

be: Specific Fair Consistent Clear Useful

Measure Performance (cont.)

on job requirements Realistic Measurable Observable Challenging Prioritized

take an active role:

Start the Meeting

During the Meeting

During the Meeting (cont.)

goals: Based on company goals Building on areas that need improvement

End the Meeting

appraisals Informal appraisals Open communication

Recognize Good Performance

Identify Poor Performance

Discipline Poor Performance

problems Talk with employee Follow company policy

Handle Hard Cases

employees Rating former peers

Key Points to Remember

Performance Appraisal Methods

Critical Incident method

Weighted checklist method

Forced choice method

Graphic Rating Scale

Intereste d Discontinuous Rating Scale

BARS( behaviorally Anchored rating scale)

organizational goals Defining performance target Performance review feedback

Performance Appraisal Methods

comparison Forced distribution Performance tests Field review technique

Paired comparison method

No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Forced Distribution method