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  • 1. Performance Appraisal
  • 2. Performance Appraisal :
    • Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
  • 3. Relationship between jab analysis and performance appraisal:
    • Job analysis performance performance
    • standards appraisal
    • Describes work
    • & Personnel
    • Requirement
    • Of a particular
    • job
    Translate job Into levels of To acceptable Or unacceptable performance Describes the Job relevant strengths and weakness of Each individual
  • 4. Question arises?
    • Why do we measure performance?
    • Effective performance appraisal systems
    • How do we measure performance?
  • 5. 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
  • 6. 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
  • 7. Appraisal Benefits (cont.)
    • Appraisals offer employees:
      • Direction
      • Feedback
      • Input
      • Motivation
  • 8. Appraisal Benefits
    • Appraisals offer the company:
      • Documentation
      • Employee Development
      • Feedback
      • Legal protection
      • Motivation system
  • 9. Why Appraisals Are Important
    • Recognize accomplishments
    • Guide progress
    • Improve performance
  • 10. Why Important (cont.)
    • Review performance
    • Set goals
    • Identify problems
    • Discuss career advancement
  • 11. Steps in performance appraisal Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
  • 12. Process of PA Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards
  • 13. Issues in appraisal system Appraisal Design? Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods?
  • 14. What to evaluate? (Philip Model) Problem children Planned separation stars Social citizen H L H L Potential Performance
  • 15. How PA contribute to firm’s competitive advantages Improving performance Making correct decision Ensuring legal competence Minimizing dissatisfaction And turnover Values and behavior Competitive advantage
  • 16. Problems in performance appraisal
    • Errors In rating
      • Halo effects
      • Stereotyping
      • Central tendency
      • Constant error
      • Personal bias
      • Spill over effect
  • 17.
    • Incompetence
    • Negative approach
    • Multiple objectives
    • Resistance
    • Lack of knowledge
    Problems in performance appraisal (Cont’d)
  • 18. 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
  • 19. Appraisals and Discrimination
    • Title VII
    • ADA
    • Other fair employment
    • Laws
  • 20. 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
  • 21. Appraisal Forms
    • Define performance expectations
    • Describe measurement tools
    • Use a rating system
    • Cover specific examples
    • Set measurable goals
  • 22. Measure Performance
    • Measurement systems need to be:
    • Specific
    • Fair
    • Consistent
    • Clear
    • Useful
  • 23. Measure Performance (cont.)
    • Systems can be:
    • Numerical
    • Textual
    • Management by Objective (MBO)
    • Behavior oriented
  • 24. Document Performance
    • Make sure documentation is objective
    • Document performance of all employees
    • Provide complete and accurate information
    • Document performance on a regular basis
  • 25. Set Goals….
    • Based on job requirements
    • Realistic
    • Measurable
    • Observable
    • Challenging
    • Prioritized
  • 26. Employee Input
    • Employees take an active role:
      • Setting goals
      • Designing action plans
      • Identifying strengths and weaknesses
      • Employees participate in the PA meeting
  • 27. Preparation
    • Employees:
    • Review performance
    • Think about new goals
  • 28. Preparation (cont.)
    • Supervisors:
    • Review performance
    • Complete written appraisal
    • Think about new goals
    • Schedule time and place
  • 29. Start the Meeting
    • Lay out agenda
    • Talk about money
    • Encourage input
    • Give good news first
  • 30. During the Meeting
    • Review performance:
    • Based on previous goals
    • Noting strengths and accomplishments
    • Identifying areas for improvement
  • 31. Presentation Tips
    • Focus on the professional
    • Give objective examples
    • Invite response
    • Listen actively
    • Create “we” mentality
  • 32. During the Meeting (cont.)
    • Set goals: Based on company goals
    • Building on areas that need improvement
  • 33. End the Meeting
    • Encourage good performance
    • Lay out action plan
    • Communicate outcome of goals not met
    • Confirm understanding
  • 34. Continuous Feedback
    • Formal appraisals
    • Informal appraisals
    • Open communication
  • 35. Recognize Good Performance
    • Verbal
    • Public
    • Tangible
    • Monetary
  • 36. Identify Poor Performance
    • Act early
    • Take the right approach
    • Deal with employee reaction
    • Handle continued poor performance
  • 37. Discipline Poor Performance
    • Recognize problems
    • Talk with employee
    • Follow company policy
  • 38. Handle Hard Cases
    • Reviewing highly emotional employees
    • Rating former peers
  • 39. Key Points to Remember
    • You must conduct objective appraisals on a scheduled basis.
    • Appraisals tell employees how they’re doing and how they can improve.
    • Appraisals help create a system of motivation and rewards based on performance.
  • 40. Performance Appraisal Methods
    • Individual Evaluation Methods
      • Confidential report
      • Essay evaluation
      • Critical incidents
      • Checklists
      • Graphic rating scale
      • Behaviorally anchored rating scale
      • MBO
  • 41. Critical Incident method Ex: A fire, sudden breakdown, accident Workers reaction scale A informed the supervisor immediately 5 B Become anxious on loss of output 4 C tried to repair the machine 3 D Complained for poor maintenance 2 E was happy to forced test 1
  • 42. 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 Does he keep the equipment in order Y/N
  • 43. 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
  • 44. 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
  • 45. Graphic Rating Scale
    • Continuous Rating Scale
    • Discontinuous Rating Scale
    Employee name_________ Deptt_______ Rater’s name ___________ Date________ ------------------------------------------------------------------------ Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale
  • 46. Discontinuous Rating Scale Attitude No Interest Indifferent Interested Enthusiastic Very enthusiastic
  • 47. BARS( behaviorally Anchored rating scale) Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument
  • 48. MBO Process
    • Set organizational goals
    • Defining performance target
    • Performance review
    • feedback
  • 49.
    • Group Appraisal
      • Ranking
      • Paired comparison
      • Forced distribution
      • Performance tests Field review technique
    Performance Appraisal Methods
  • 50. Ranking method Employee Rank A 2 B 1 C 3 D 5 E 4
  • 51. Paired comparison method A B C D E Final Rank A - - - + + 3 B + - - + + 2 C + + - + + 1 D - - - - + 4 E - - - - - 5 No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
  • 52. Forced Distribution method 10% 20% 40% 20% 10% poor Below average average good Excellent No. of employees Force distribution curve
  • 53. Field review method Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
  • 54. Performance criteria for executives
    • For top managers
      • Return on capital employed
      • Contribution to community development
      • Degree of upward communication from middle-level executives
      • Degree of growth and expansion of enterprise.
  • 55. For middle level managers
    • Departmental performance
    • Coordination among employees
    • Degree of upward communication from supervisors
    • Degree of clarity about corporate goals and policies
  • 56. For supervisors
    • Quality and quantity of output in a given 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