Problems with Appraisals - People - Process - Preparation
What is Performance Appraisal?
Why is it necessary?
What is the key to the effectiveness of PA?
Should PA be done or not? If so why?(State at least 3 reasons for either)
What is performance management? An ongoing communication process.
Key Definitions we will explore in Performance
What are they?
What is it?
Start with a good job description .
( Why does this job exist??)
What is this person to accomplish?
What is the person accountable for in the work process?
What results are achieved through the functions of THIS job?
What are the KEY performance expectations of THIS job?
Remember: Standards should reflect what a satisfactory employee can accomplish .
Only one aspect of the continuous Performance Management Process!!!
Should be linked to the Business Objectives
Should measure Results & Competencies
Standards are “Standard” or “Satisfactory” in our process
Don’t create a “zero sum game”-- Always strive for Win/Win situations
Ratings are not decided upon compared to other performers, but rather to your planned performance for the specific staff person
Look at behavior and results
OBTAIN INPUT FROM RECORDS & DISCUSSIONS WITH REVIEWING OFFICER .
RECORD RESULTS, PERFORMANCE, BEHAVIOR
RATE FACTORS ON ALL DIMENSIONS OF JOB FOR ENTIRE RATING PERIOD
RECORD THE RATINGS
DISCUSS WITH REVIEWING OFFICER
DISCUSS WITH EMPLOYEE
GUIDELINES FOR CONDUCTING PERFORMANCE EVALUATIONS
PREPARE FOR MEETING AND PROVIDE UNINTERRUPTED SESSION
SHOW KNOWLEDGE OF AND INTEREST IN EMPLOYEE
DISCUSS PERFORMANCE AND PROVIDE SPECIFICS
DISCUSS EMPLOYEE DEVELOPMENT
CONCLUDE ON POSITIVE
“ Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis for determining merit increases.”
“ OBSERVE and EVALUATE an employee in relation to PRE-SET performance standards.”
What objectives would you base PA upon ?
PA Objectives Documentation Organizational Maintenance Promotions Training and development Pay scales & Pay raise Constructive criticism and guidance Administrative uses HR programs Communication
Appraisal Process Establish job Expectations Design an Appraisal Programme Appraise Performance Performance Interview Objectives of Performance Appraisal Archive Appraisal Data Use appraisal data for appropriate purposes
THREE AND ONE
SUPERVISORS DO EVALUATIONS
COMPLETION OF JOB TASKS
ANNUALY FOR PERMANENT EMPLOYEES
NEW EMPLOYEES 3-6 MONTHS
SPECIAL CARE & RESPECT
Sources of Information
1) Supervisors (most common)
2) Co-Workers (Peers)
High level of accuracy
Best used as a source of feedback
Sources of Information (cont)
Lots of knowledge
Good preparation for performance appraisal meeting (conducive for dialog)
4 ) Subordinates
Biases (e.g., # of subordinates, type of job, expected evaluation from supervisor)
Good source of feedback
Methods of PA
Critical incident method
Weighted checklist method
Paired comparison analysis
Graphic rating method
Essay evaluation method
Behaviorally anchored rating scale
Performance rating method
Management by objective method
360 degree performance appraisal method
Forced ranking method
Behavioral observation scales
Forced ranking method
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.
Any critical incidents or Outstanding examples of success or failure of subordinates is recorded by supervisor.
It improve s the supervisor’s ability as an observer
Identifies Areas where counseling may be useful.
It is less Reliable and valid for many organizations.
Supervisor Comments (To be filled by the immediate supervisor in consultation with the employee)
How successful was your employee in achieving his/her KPI's in the appraisal period (give example)
He was able to achieve most of his KPIs but he had to be reminded to do something about it. For example the KPI of updating organograms, he has to be constantly reminded about updating them.
List top 1-3 strength of your employee. Comment on how these strengths can be used for the organizations' benefit?
1. Challenges status quo, questions processes, looks for better ways of doing things. 2. Ownership of projects: Finishes work assigned to him and takes responsibility for it. 3. People Management: He has really worked hard on his people management skills and gets along well with internal as well as external customers.
Management By objectives
“ Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives (KPI’s) and understand what they are.”
Largest user of MBO in Pakistan is the public sector but failure of it is lack of performance appraisal system.
Setting goals is difficult in MBO.
No. KPI's Progress % Completed 1 Updated organograms of all departments In process. Orgranograms were converted from Visio to Powerpoint. Constant update is required when there is a change in any department. 70 % 2 Assistance in annual appraisal 2009 In process. Initial lists of employees were finalized. Online appraisals are being done. Last date for submission of forms is June 30, 2009. There will be increment work after that. 70 % 3 Improve the SOPs for recruitment In process 70 % 4 Improve orientation SOP,orientation pack In process 50 % 5 Automation of attendance management system Completed. Successfully registered and trained 148 employees on the system. Generating attendance data through the system now. 100 % 6 Audit of employees' leave balances Completed 100 %
Five step MBO process
A GOAL –DIRECTED APPROACH TO PERFORMANCE APPRAISAL IN WHICH WORKERS AND THEIR SUPERVISORS SET GOALS TOGETHER FOR THE UPCOMING EVALUATION PERIOD
Employee is described in a number of broad categories like
Strengths and weakness
The strength of this method is the writing skills and analytical skills of the rater.
ROLE PLAY (Total Time: 75 min)
Groups of four
Each group to write 3-4 objectives (10 min)
Preparation for interview as per objectives (10 min)
Role play between Appraiser-Appraisee
One group to observe the other and then rotate
Each group to provide feedback on the other
Highlight strengths and weaknesses in the appraisal process of the other groups
Syndicate Discussion (5-7 min)
Points to Ponder
Determining the evaluation criteria
Lack of competence
Errors in rating and evaluation
ERRORS IN PERFORMANCE APPRAISAL, WAYS & MEANS TO REDUCE IT
Performance Appraisal and Other HRM Functions Performance appraisal validates selection function Selection Selection should produce workers best able to meet job requirements Performance appraisal determines training needs Training and Development Training and development aids achievement of performance standards Performance appraisal is a factor in determining pay Compensation Management Compensation can affect appraisal of performance Performance appraisal judges effectiveness of recruitment efforts Recruitment Quality of applicants determines feasible performance standards Performance appraisal justifies personnel actions Labor Relations Appraisal standards and methods may be subject to negotiation
Reasons Appraisal Programs Sometimes Fail
Lack of top-management information and support
Unclear performance standards
Too many forms to complete
Inadequate preparation on the part of the manager.
Employee is not given clear objectives at the beginning of performance period.
Overemphasis on uncharacteristic performance.
Organizational politics or personal
relationships judgments .
Manager may not be trained at evaluation or giving feedback.
No follow-up and coaching after the evaluation
Common Errors in the Appraisal Process Halo Error/ Horn Error First Impression Error Recency Error Leniency Error Severity Error Central Tendency Error Stereotyping Attribtion bias
Responsibility Commitment Initiative Sensitivity Judgment Communication Observation of specific behavior (s) (e.g., volunteers to work overtime) Halo Error/Horn Error : rating a single individual based on the interviewer’s general feeling toward the individual so that employee receives nearly identical ratings (usually high/low) on all performance areas High/low ratings on other performance dimensions
First Impression Error
Tendency of a rater to make an initial positive or negative judgment of an employee and allow that first impression to color or distort later information
give more positive ratings to employees than they deserve
evaluate employees more unfavorably than they deserve
Central Tendency Error
rating all employees near the mid-point of the performance scale
The tendency of minor events that have happened recently to have more influence on the rating than major events of many months ago.
The tendency to generalize across groups and ignore individual differences.
Improve Appraisal Formats Select the Right Raters Understand Why Raters Make Mistakes
Rater-error training to reduce psychometric errors
Performance dimension training
Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.
2) Use objective and uncontaminated data whenever they are available.
3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals.
4) Use more than one independent evaluator of performance.
5) Use a formal, standardized system for personnel decisions.
6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made.
7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
8) Provide documented performance counseling prior to performances-based termination decisions.
Prescriptions for Defensible Appraisal Systems
From a Performance Perspective ( An Exercise )
Read the given extract and jot down at least 8-10 key points (10 min)
Each group to present and share the key points (3 min per group)