HR Knowledge: Performance Management and Appraisal - SHRM India

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Performance management:
Dynamic, continuous process.
Improves organizational effectiveness.
Strategic goals.

Performance appraisal:
Periodic (usually annual) event.
Formal review.
Last step in performance management process.

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HR Knowledge: Performance Management and Appraisal - SHRM India

  1. 1. Performance Management and Appraisal Myrna Gusdorf, MBA, SPHR 2009
  2. 2. Objectives <ul><li>At the end of this, you will: </li></ul><ul><ul><li>Relate individual performance appraisal to the organizationwide performance management process. </li></ul></ul><ul><ul><li>Identify a variety of appraisal methods. </li></ul></ul><ul><ul><li>Explain HR’s role in the performance management process. </li></ul></ul><ul><ul><li>Revise performance appraisal statements. </li></ul></ul><ul><ul><li>Practice performance appraisal interviewing techniques. </li></ul></ul><ul><ul><li>Have the skills necessary to use the performance appraisal process as a positive enhancement to employee performance. </li></ul></ul>©SHRM 2009
  3. 3. Performance Management and Performance Appraisal <ul><li>Performance management: </li></ul><ul><ul><li>Dynamic, continuous process. </li></ul></ul><ul><ul><li>Improves organizational effectiveness. </li></ul></ul><ul><ul><li>Strategic goals. </li></ul></ul><ul><li>Performance appraisal: </li></ul><ul><ul><li>Periodic (usually annual) event. </li></ul></ul><ul><ul><li>Formal review. </li></ul></ul><ul><ul><li>Last step in performance management process. </li></ul></ul><ul><ul><ul><li>Mondy, R. (2008). Human resource management , 10 th ed. New Jersey: Pearson Prentice Hall, 224-225. </li></ul></ul></ul>©SHRM 2009
  4. 4. Who’s Involved? What Are Their Needs? <ul><li>Organization: </li></ul><ul><ul><li>Information. </li></ul></ul><ul><ul><li>Documentation. </li></ul></ul><ul><li>Supervisor: </li></ul><ul><ul><li>Documentation. </li></ul></ul><ul><ul><li>Motivation. </li></ul></ul><ul><li>Employee: </li></ul><ul><ul><li>Feedback. </li></ul></ul><ul><ul><li>Support for career growth. </li></ul></ul><ul><ul><li>Increased compensation. </li></ul></ul>©SHRM 2009
  5. 5. Performance Management Goals <ul><li>Communication between supervisor and </li></ul><ul><li>employee. </li></ul><ul><li>Feedback on performance. </li></ul><ul><li>Documentation. </li></ul><ul><li>Development Goals. </li></ul><ul><li>Alignment with strategic planning goals. </li></ul>©SHRM 2009
  6. 6. HR’s Role in Performance Management <ul><li>Participate in strategic planning. </li></ul><ul><li>Conduct job analysis. </li></ul><ul><li>Support performance management. </li></ul><ul><li>Design appraisal system. </li></ul><ul><li>Train and support managers. </li></ul><ul><li>Maintain documents. </li></ul><ul><li>Provide employee due process. </li></ul><ul><li>Ensure integrity of the system. </li></ul><ul><li>Ensure compliance with nondiscrimination laws. </li></ul>©SHRM 2009
  7. 7. Performance Management Process <ul><li>1. Prerequisites. </li></ul><ul><li>2. Performance planning. </li></ul><ul><li>3. Performance execution. </li></ul><ul><li>4. Performance assessment. </li></ul><ul><li>5. Performance review. </li></ul><ul><li>6. Performance renewal and re-contracting. </li></ul>©SHRM 2009 Planning Execution Assessment Review Renewal
  8. 8. 1. Prerequisites <ul><li>Prerequisites: </li></ul><ul><ul><li>Strategic planning. </li></ul></ul><ul><ul><li>Job analysis. </li></ul></ul>©SHRM 2009
  9. 9. 2. Performance Planning <ul><li>Employees must have thorough knowledge of the performance management system. </li></ul><ul><li>Meeting between employee and manager. </li></ul><ul><li>Set SMART goals and measurement standards: </li></ul><ul><ul><li>Results. </li></ul></ul><ul><ul><li>Behavior. </li></ul></ul><ul><ul><li>Developmental plans. </li></ul></ul>©SHRM 2009
  10. 10. Writing SMART Performance Objectives <ul><li>Practice writing SMART performance objectives: </li></ul><ul><ul><li>S – Specific. </li></ul></ul><ul><ul><li>M – Measurable. </li></ul></ul><ul><ul><li>A – Attainable. </li></ul></ul><ul><ul><li>R – Realistic. </li></ul></ul><ul><ul><li>T – Timely. </li></ul></ul>©SHRM 2009
  11. 11. 3. Performance Execution <ul><li>Shared responsibility </li></ul><ul><ul><li>Employee responsibility: </li></ul></ul><ul><ul><ul><li>Commitment to established goals. </li></ul></ul></ul><ul><ul><ul><li>Communication and update with manager. </li></ul></ul></ul><ul><ul><li>Manager responsibility: </li></ul></ul><ul><ul><ul><li>Feedback, coaching and reinforcement. </li></ul></ul></ul><ul><ul><ul><li>Resource support. </li></ul></ul></ul><ul><ul><ul><li>Accurate observation and documentation. </li></ul></ul></ul>©SHRM 2009
  12. 12. 4. Performance Assessment and Appraisal <ul><li>Who should appraise? </li></ul><ul><ul><li>Supervisors. </li></ul></ul><ul><ul><li>Peers and team members. </li></ul></ul><ul><ul><li>Subordinates. </li></ul></ul><ul><ul><li>360 degree feedback. </li></ul></ul>©SHRM 2009
  13. 13. What About the Employee? <ul><li>Should employees do self-appraisals? </li></ul>©SHRM 2009
  14. 14. Performance Appraisal Methods <ul><li>Graphic rating scale. </li></ul><ul><li>Ranking method. </li></ul><ul><li>Forced distribution method. </li></ul><ul><li>Critical incident method. </li></ul><ul><li>Essay method. </li></ul><ul><li>BARS–behaviorally anchored rating scale. </li></ul><ul><li>MBO–management by objectives. </li></ul>©SHRM 2009
  15. 15. Performance Appraisal Problems <ul><li>Appraiser discomfort. </li></ul><ul><li>Strictness/leniency. </li></ul><ul><li>Bias and lack of objectivity. </li></ul><ul><li>Manipulating the evaluation. </li></ul><ul><li>Halo/horns effect. </li></ul><ul><li>Central tendency error. </li></ul><ul><li>Recent behavior. </li></ul><ul><li>Supervisor unable to observe behavior. </li></ul>©SHRM 2009
  16. 16. Writing the Appraisal Review Document <ul><li>Are your comments accurate and meaningful to the employee or just clichés? </li></ul>©SHRM 2009
  17. 17. Performance Management and Appraisal Session 2
  18. 18. Getting Ready for the Interview <ul><li>Before you start that interview, what do you need? </li></ul>©SHRM 2009
  19. 19. 5. Conducting the Performance Interview <ul><li>Explain the purpose of the interview. </li></ul><ul><li>Discuss self-appraisal. </li></ul><ul><li>Share ratings and explain rationale. </li></ul><ul><li>Discuss development plans. </li></ul><ul><li>Employee summary. </li></ul><ul><li>Rewards discussion (if appropriate). </li></ul><ul><li>Set follow-up meeting. </li></ul><ul><li>Employee signature. </li></ul><ul><li>Supervisor recap. </li></ul><ul><li>Appeals process. </li></ul>©SHRM 2009
  20. 20. 6. Performance Renewal and Re-Contracting <ul><li>Final step in performance management process. </li></ul><ul><li>Readjust based on insight from completed process. </li></ul><ul><li>Plan for next performance management cycle. </li></ul>©SHRM 2009
  21. 21. Problems With Assessment/Appraisal <ul><li>Tied to compensation. </li></ul><ul><li>Employees lack motivation. </li></ul><ul><li>Manager and employee don’t agree on results. </li></ul><ul><li>Management reluctance. </li></ul><ul><li>No performance documentation. </li></ul>©SHRM 2009
  22. 22. Issues With Performance Management <ul><li>Legal issues. </li></ul><ul><li>Untrained raters. </li></ul><ul><li>Rater errors. </li></ul><ul><li>Rater distortion. </li></ul><ul><li>No grievance procedure. </li></ul>©SHRM 2009
  23. 23. Poorly Implemented PM Systems <ul><li>False and misleading information. </li></ul><ul><li>Increased turnover. </li></ul><ul><li>Wasted time and money. </li></ul><ul><li>Damaged relationships. </li></ul><ul><li>Decreased motivation. </li></ul><ul><li>Job dissatisfaction. </li></ul><ul><li>Risk of litigation. </li></ul><ul><li>Unfair standards. </li></ul>©SHRM 2009
  24. 24. Performance Management Skills <ul><li>Communication. </li></ul><ul><li>Coaching. </li></ul><ul><li>Giving feedback. </li></ul><ul><li>Empathy. </li></ul><ul><li>Teamwork. </li></ul>©SHRM 2009
  25. 25. Let’s Practice Your Performance Appraisal Skills ©SHRM 2009
  26. 26. Thank You! For more on Indian HR industry, click here Resource made available by SHRM US

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