2Performance AppraisalPerformance Appraisal (PA) refers to all thoseprocedures that are used to evaluate the personality,performance and potential of its group members.Performance Appraisals are yearly or monthlyevaluations given to employees.They evaluate the needs of the employee andsupervisor.Performance Appraisal is the process by whichorganizations evaluate employee job performance.
4Steps in performance appraisalEstablishing job standardsDesigning an appraisal programmeAppraise performancePerformance interviewUse appraisal dataFor appropriate purpose
5Objective of PerformanceAppraisalTo help better current performancesTo help in development of the employee.To determine training and development needs.To give employee feedback and counsel themTo review performance for salary purposes.
6Process of Performance AppraisalSettingperformancestandardsTaking correctivestandardsDiscussingresultsComparingstandardsMeasuringstandardsCommunicatingstandards
7Issues in appraisal systemAppraisal Design?Formal and informalWhat methods?When to evaluate?What to evaluate?Whose performance?Who are the raters?What problems?How to solve?
8Benefits of Performance AppraisalFor the AppraiseeFor the ManagementFor the Organization
9Benefits of Performance AppraisalFor the AppraiseeBetter understanding of his role in the organization – what isexpected and what needs to be done to meet those expectationClear Understanding of his strengths & weaknesses to develophimself into a better performer in futureIncreased motivation, job satisfaction, and self – esteemOpportunity to discuss work problems and how they can beovercomeOpportunity to discuss aspirations and any guidance, support ortraining needed to fulfill those aspirationsImproved working relationships with supervisors
10Benefits of Performance AppraisalFor the ManagementIdentification of performers and non-performers and theirdevelopment towards better performanceOpportunity to prepare employees for assuming higherresponsibilitiesOpportunity to improve communication between the employeesand managementIdentification of training and development needsGeneration of ideas for improvementsBetter identification of potential and formulation of career plans
11Benefits of Performance AppraisalFor the OrganizationImproved performance throughout the organizationCreation of a culture of continuous improvement and successConveying the message that people are valued
12Methods of Performance AppraisalIndividual Evaluation MethodsConfidential reportEssay evaluationCritical incidentsChecklistGraphic rating scaleBehaviorally anchored rating scale (BARS)Forced choice methodManagement by Objective (MBO)
13Methods of Performance AppraisalMultiple Person Evaluation MethodsRankingPaired comparisonForced distribution
14Methods of Performance AppraisalOther MethodsGroup AppraisalField review technique3600Appraisal System
15Individual Evaluation MethodsConfidential ReportDescriptive reportPrepared at the end of the yearPrepared by the employee’s immediate supervisorThe report highlights the strengths and weaknesses ofemployeesPrepared in Government organizationsDoes not offer any feedback to the employee
16Individual Evaluation MethodsEssay Evaluation– The rater is asked to express the strong as well as weak points ofemployee’s behavior– The rater considers the employee’s :Job knowledge and potentialUnderstanding of company’s programs, policies, objectives etcRelation with co-workers and supervisorsPlanning, organizing and controlling abilityAttitude and perception
17Individual Evaluation MethodsCritical IncidenceManager prepares lists of statements of very effective andineffective behavior of an employeeThese critical incidents represent the outstanding or poorbehavior of the employeesThe manager periodically records critical incidents ofemployee’s behavior
18Checklist MethodSimple Checklist MethodIs employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N
19Checklist MethodWeighted Checklist Methodweights performance rating(scale 1 to 5 )Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0
20Checklist MethodForced Choice MethodCriteria Rating1.Regularity on the job Most LeastAlways regularInform in advance for delayNever regularRemain absentNeither regular nor irregular
21Individual Evaluation MethodsGraphic Rating ScaleA form is used to evaluate the performance of the employeesA variety of traits may be used in this device, the most commonbeing quality and quantity of workEasy to understand and use.Permits statistical tabulation of scores of employees
22Individual Evaluation MethodsBehaviorally Anchored Rating Scale (BARS)Step 1. Identify critical incidentsStep 2. Select performance dimensionStep 3. Retranslate the incidentsStep 4. Assign scales to incidentsStep 5. Develop final instrument
23Individual Evaluation MethodsForced Choice MethodThis method uses several sets of paired phrases, two of whichmay be positive and two negativeThe rater is asked to indicate which of the four phrases is themost and least descriptive of a particular workerFavorable qualities earn plus credit and unfavorable ones earnthe reverse
24Individual Evaluation MethodsManagement by objectives (MBO)MBO emphasizes collectively set goals that are tangible, verifiable, andmeasurableFocuses attention on goals rather than on methodsConcentrates on Key Result Areas (KRA)Systematic and rational technique that allows management to attainmaximum results from available resources by focusing on achievablegoals
25Individual Evaluation MethodsManagement by objectives (MBO) - Cont• Key Element of MBOArranging organizational goals in a means-ends chainEngaging in joint goal setting This process has the following steps: Identify KRAs Define expected results Assign specific responsibilities to employees Define authority and responsibility relationshipConducting periodic progress reviewConducting annual performance review
26Multiple Person Evaluation MethodsRanking methodThe evaluator rates the employee from highest to lowest on some overallcriteriaPaired comparison methodEach worker is compared with all other employees in a groupFor several traits paired comparisons are made, tabulated and then rankis assigned to each workerThis method is not applicable when the group is largeForced Distribution MethodsThe rater is asked to appraise the employee according to predetermineddistribution scale.The worker is placed between two extremes of “good” and “bad” performance.
27Other MethodsGroup AppraisalEmployee is appraised by a group of appraisers. The group consists of :Immediate supervisor of the employeeOther supervisors who have close contact with theemployee’s work.Manager or head of the departments.Consultants or Clients
28Other MethodsField Review TechniqueThe appraiser goes to the field and obtains the information aboutwork performance of the employee by way of questioning the saidindividual, his peer group, and his superiors
29Other Methods3600Appraisal System360 Degree Performance : Combination of self, peer, supervisor, and subordinateperformance evaluationIt is a systematic collection and feedback of performance data on anindividual or group, derived from a number of stakeholdersData is gathered and fed back to the individual participant in a clear waydesigned to promote understanding, acceptance and ultimately behavior
30Appraisal Interview and Feedback - Let theEmployee Know Where He StandsTo help employees do a better job by clarifying what is expectedof themTo plan opportunities for development and growthTo strengthen the superior-subordinate working relationship bydeveloping mutual agreement of goalsTo provide an opportunity for employees to express themselveson performance related issues