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Performance appraisal and training copy

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    Performance appraisal and training   copy Performance appraisal and training copy Presentation Transcript

    • Performance Appraisal andhapter III Training
    • Objectives of the chapter Performance Appraisal and Training Needs Meaning of Performance Appraisal Purpose of Performance Appraisal Significance of Performance Appraisal Objectives of Performance Appraisal Performance Appraisal Process Methods of Performance Appraisal Post Appraisal Interviews and Feedback
    • Performance Appraisal A successful performance appraisal process involves explaining the job, communicating expectations, observing and documenting behavior and providing frequent informal feedback. It means getting the job done through people.
    • Performance Appraisal contd… The continual process of evaluating an employee’s performance helps the supervisor and the employee to – Understand individual strengths and weaknesses of performance. Mutually understand expectations for performance. Form a basis for personnel action. Determine training and development needs of employees.
    • Performance Appraisal and Training Needs• If a supervisor uses good principles of performance appraisal system, then training and development can be a straight forward activity which almost always contributes to the organization’s bottom lines which are given below:• Review organizational goals to associate preferred organizational results in terms of units of performance, that is, quantity, quality, cost or timeliness.
    • Performance Appraisal and Training Needs contd… Specify desired results for the domain, give guidance and focus on results needed by other domains (for example, products or services needed by internal or external customers). The domain’s desired results directly contribute to the organization’s result. A good training plan must be geared to help the employee to produce specific results, which in turn, directly contribute to results needed by the organization.
    • Performance Appraisal and Training Needs contd… Weight, or prioritizing the range of results needed from the employee helps the supervisor and the employee to pick what training is needed and when. Identify measures to evaluate if and how well the domain’s desired results were achieved. This refinement of expected results from the employee helps the supervisor and the employee to ensure that training is highly focused on results for the employee and the organization.
    • Performance Appraisal and Training Needs contd… Identify standards for evaluating how well the desired results were achieved. Document a performance plan – including desired results, measures and standards. This is similar to developing the training plan, with preferred training goals and measures. Conduct ongoing observations and measurements to track performance of employees. The training plan is implemented and includes ongoing evaluation before, during and after carrying out training methods.
    • Performance Appraisal and Training Needs contd… Exchange of ongoing feedback about performance of employees gives the feedback between learners and trainer. Conduct a performance appraisal (sometimes called performance review). Effective training includes evaluation to judge the quality of the training itself and identify what results were achieved by learners.
    • Performance Appraisal and Training Needs contd… Ifperformance meets the desired performance standard, then reward performance (the nature of the reward depends on the domain). Hopefully, the learning experience includes time to acknowledge such success and the trainers’ and learners’ roles in such success.
    • Performance Appraisal and Training Needs contd… Ifperformance does not meet performance standards, develop or update a performance development plan. A good training plan will include measures for noting changes in the employee’s performance. If improvement is needed, a performance plan should be updated or started, and may include causes for more training.
    • Meaning of Performance Appraisal Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the demands of job. Some of the important features of performance appraisal may be captured thus – Performance appraisal is the systematic description of an employee’s job, relevant strengths and weaknesses. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement.
    • Meaning of Performance Appraisal contd…. Appraisal process is always systematic in the sense that it tries to evaluate performance in the same manner using the same approach. Appraisals are arranged periodically according to a definite plan. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to the job. Performance appraisal is a continuous process in every large-scale organization.
    • Purpose of Performance Appraisal  Purposes of performance appraisal are  Informational Purposes  To let employees know how their performance compares with job standards.  To provide a written record of employee performance.  To assist in identifying special talents and abilities.  To identify employees whose performance must improve or face disciplinary action, and make this a matter of record.
    • Purpose of Performance Appraisal contd…  Motivational Purposes  To establish closer supervisor-employee relationships and communicate to the employee the job requirements and standards of performance.  To provide recognition for a job well done.  To establish plans to solve performance problems.  To encourage initiative and develop a sense of responsibility.
    • Purpose of Performance Appraisal contd…  Developmental Purposes  To identify individual employee training needs.  To help the employee strengthen current performance and prepare for promotional opportunities.  To identify situations in which reassignment can be used to develop potential.
    • Significance of Performance Appraisal McGregor says, “Formal performance appraisal plans are designed to meet three needs, one is of the organization and the other two are of the individual,” namely – They provide systematic judgments to back up salary increases, transfers, demotions or terminations. They are the means of telling a subordinate, how he is doing, and suggesting needed changes in his behavior, attitudes, skills, or job-knowledge. They let him know ‘where he stands’ with the boss. They are used as a base for coaching and counseling the individual by the superior.
    • Objectives of Performance AppraisalObjectives of performance appraisal system of an organization are given below: To enable each employee to understand his role better and become more effective on-the- job. To understand his own strengths and weaknesses with respect to his role in the organization. To identify the developmental needs of each employee.
    • Objectives of Performance Appraisal contd… To improve relationship between the superior and the subordinate through the realization that each is dependent on the other for good performance and success. To serve as mechanisms for improving communication between the superior and his subordinates. To provide an opportunity to the employee for introspection, self-evaluation and goal setting so that he remains on the path of development.
    • Objectives of Performance Appraisal contd… To enable every employee to adopt the norms and values of the organization so that an organizational identity and commitment is developed throughout the organization. To prepare employees for higher jobs by continuously reinforcing development of behavior and qualities for these higher level positions.
    • Objectives of Performance Appraisal contd… To be an instrument for creating a positive and healthy climate in the organization that moves people to give their best and enjoy doing so. To help in a variety of personnel decisions by generating relevant data on each employee periodically.
    • Performance Appraisal Process The following are the steps in the performance appraisal process.i. Establishing Standards.ii. Communicating Standards to Employees.iii.Measuring Actual with Standards.iv. Comparing Actual Performance.v. Discussing Reports with Employees.vi. Taking Corrective Action.
    • Methods of Performance Appraisal  Traditional approach is also known as ‘traits approach’.  It is based on the evaluation of traits in a person.  This system considers both personal and work related characteristics.
    • Confidential Report Itis written for a unit of one year and relates to the performance, ability and character of the employee during that year. A very casual attitude is found among raters while filling confidential reports of the employees working under them. The report is not data based but subjective. No feedback is provided to the employee being appraised and therefore, its credibility is very low. The employee who is apprised never knows his weaknesses and the opportunities available for overcoming them.
    • Graphic Scale Method It is a simplest and most popular method for appraising performance. It consists of lists of traits and a range of performance values for each trait. The supervisor values each subordinate to describe his performance for each trait. The assigned values for each trait are then totaled. The selection of factors to be measured on the graphic rating scale is an important point under this system.
    • Graphic Scale Method contd… These are two types namely,(i) Characteristics such as initiative and dependability and(ii) Contribution such as quantity and quality of work. Since certain areas of job performance cannot be objectively measured, it is likely that graphic scale will continue to use a mixture of both characteristics and contribution.
    • Straight Ranking Method In this method every employee is judged as a whole without distinguishing the rates from his performance. A list is then prepared for ranking the workers in order to their performance on the job so that an excellent employee is at the top and the poor at the bottom.
    • Paired Comparison Method In this method every person is compared trait- wise, with other persons one at a time, the number of times one person is compared with others is tallied on a piece of paper. These numbers help in yielding rank orders of employees.
    • Grading System In this system the employees are given grades according to the judgment of the rater. The rater will consider certain features like analytical ability, cooperativeness, dependability, job-knowledge, etc.
    • Forced Distribution Method This system is based on presumption that all employees can be divided into five categories, viz. outstanding, above average, average, below average, and poor. The main idea in this system is to spread ratings in a number of grades. This method eliminates the room for subjective judgment on the part of the supervisors.
    • Checklist Method Itis a list of statements that describes the characteristics and performance of employees on the job. The rater checks to indicate whether the behavior of an employee is positive or negative to each statement. The performance of the employee is rated on the basis of numbers of positive checks.
    • Checklist Method contd… There are three types of checklists that can be used. They are – Simple, Weighted and Forced Choice methods. Simple ChecklistIn this method the supervisors are provided with printed forms containing descriptive questions about the performance of employees. The supervisor has the answer in Yes or No. After ticking these questions the forms are sent to Personnel Department where final rating is done.
    • Checklist Method contd… Weighted ChecklistIn this method, weights are assigned to different statements to indicate their relative importance. It involves a very lengthy and time consuming procedure. It is used particularly with the objective of avoiding scope for personal prejudices
    • Forced Choice Method Inthis method five statements are given for each traits, two most descriptive statements, two least descriptive statements, and one neutral statement. The rater is required to tick one statement each from the most descriptive and least descriptive ones. The aim of this method is to minimize the rater’s personal bias.
    • Critical Incident Method This method attempts to measure worker’s performance in terms of certain events or incidents that occur in the course of work. The assumptions of this method are that the performance of the employee on the happening of critical incidents determines his failure or success.
    • Critical Incident Method contd… The supervisor keeps a record of critical incidents at different times and then rates him on this basis. This method can increase the chances that the subordinates will improve because they learn precisely what is expected from them.
    • Free Essay Method In this method the supervisor writes a report about the employee which is based on his assessment. The supervisor continuously watches the subordinates and writes his assessment in the report. It is non-quantitative technique of appraisal.
    • Free Essay Method Itprovides a good deal of specific information about the employee and can reveal even more about the supervisor. This method may suffer from personal bias because of likings and disliking of the supervisor.
    • Group Appraisal Inthis appraisal method, employees are rated by an appraisal group, consists of supervisor, and three or four other persons who have some knowledge of their performance. This method is devoid of personal bias but only drawback is very time consuming.
    • Field Review Method In this method, an expert from the personnel department interviews line supervisors to evaluate their respective subordinates. The expert questions the supervisor and obtains all the important information on each employee and takes notes in his notebook. The employees are generally classified into three categories as outstanding, satisfactory and unsatisfactory.
    • Nomination In this method, appraisers are asked to identify the exceptionally good and exceptionally poor performances who are then singled out for special treatment.
    • Work Sample Tests In this method, employees are given, from time to time, work related testes which are then evaluated
    • Modern Methods ASSESSMENT CENTER It is a central location where the managers may come together to participate in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, by observing and later evaluating their behavior across a series of select exercises or work samples.
    • Assessment Center contd… Managers are asked to participate in in-basket exercises, role playing and similar activities, which require the same attributes for successful performance as on the actual job. After recording the observations, the raters meet to discuss these observations and decision regarding the performance of each manager is based upon the discussion of observations. It is time consuming and an expensive method.
    • Human Resource Accounting This method attaches money values to the value of a firm’s internal human resources and its external customer goodwill. Performance is judged in terms of costs and contributions of employees. Costs of human resources consist of expenditure on human resource planning, recruitment, selection, indication, training, etc.
    • Human Resource Accounting contd… Contribution of human resource is the money value of labor productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees.
    • Behaviorally Anchored Rating Scale It combines the benefits of critical incidents and graphic rating scale by anchoring a scale with specific behavioral examples of good or poor performance. It is time consuming and expensive method. The behaviors used are more activity oriented than result oriented. This technique is not biased by the experience and evaluation of the rater.
    • Management By Objectives (MBO)  It refers to comprehensive, organizational measurable goals for each employee and then periodically discusses his progress towards these goals.  It leads to greater satisfaction, greater agreement, greater comfort and less tension and hostility between the workers.
    • Management By Objectives (MBO) contd… It can be applied with great success if the performance appraisal program consists of the following elements. Detailed job descriptions. Superior should have trust in subordinates to establish goals. Emphasis should be on problem solving.
    • 360-Degree Performance Appraisals It is a systematic collection of performance data on an individual or group, derived from a number of stakeholders, team members, customers, peers, and self. It provides a broader perspective about an employee’s performance by facilitating self- development of employees. This appraisal is effective in identifying and measuring interpersonal skills, customer- satisfaction and team-building skills.
    • Post Appraisal Interviews and Feedback The post appraisal interview is an essential part of the performance appraisal system. The employee gets useful feedback information about how effectively and efficiently he is able to discharge the assigned duties. It also gives the opportunity to an employee to explain his views about the rating standards, rating methods, internal and external causes for low level of performance.
    • Post Appraisal Interviews and Feedback contd… It, serves to meet the following objectives. To let employees know where they stand. 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 a mutual agreement of goals. To provide an opportunity for employees to express themselves on performance related issues.
    • Summary of the chapter Performance Appraisal and Training Needs Meaning of Performance Appraisal Purpose of Performance Appraisal Significance of Performance Appraisal Objectives of Performance Appraisal Performance Appraisal Process Methods of Performance Appraisal Post Appraisal Interviews and Feedback