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7 perf apprsl & mgmt
 

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    7 perf apprsl & mgmt 7 perf apprsl & mgmt Presentation Transcript

    • Performance Appraisal and ManagementPerformance Appraisal: Process, Methods; Factors that distort appraisal  Performance Management: Process, Relationship to Performance Appraisal, Potential Appraisal and its relevance
    • Performance Appraisal Objective assessment on an individual’s performance against well defined benchmarks Assessment should not be confined to past performance alone Potential for future performance should also be assessed Other terms used for Performance Appraisal:  Performance rating, employee assessment, performance review, personnel appraisal, performance evaluation, employee evaluation, merit rating Closely linked to Job Analysis (Ref.Fig.10.1)
    • Objectives of Appraisal To effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where (as in the unorganised sector) regular pay scales have not been fixed.
    • Objectives of Appraisal (contd..) To let the employees know where they stand in terms of their performance and to provide constructive criticism and guidance to help them develop To improve communication Finally, performance appraisal can be used to determine whether HR programmes such as selection, training, and transfers have been effective or not.
    • Multiple Purposes of Appraisal General Applications Specific Purpose Identification of individual needs Performance feedbackDevelopmental Uses Determining transfer and job assignments Identification of individual strengths and developmental needs Salary Promotion Retention or terminationAdministrative Uses/Decisions Recognition of individual performance Lay-offs Identification of poor performers HR planning Determining organisation training needsOrganisational Evaluation of organisational goal achievementMaintenance/Objectives Information for goal identification Evaluation of HR systems Reinforcement of organisational development Criteria for validation researchDocumentation Documentation for HR decisions Helping to meet legal requirements
    • How Performance Appraisal can Contribute to Firm’sCompetitive Advantage Improving Performance Making Strategy and Correct Behaviour Decisions Competitive Advantage Ensuring Values and Legal Behaviour Compliance Minimising Dissatisfaction and Turnover
    • How Performance Appraisal can Contribute to Firm’s Competitive Advantage Improving performance:  By directing employee towards organizational goals  By monitoring employee behaviour to ensure that the goals are met Making correct decisions:  Appraisal is a critical input in making decisions on pay rise, promotion, transfer, training etc Ensuring legal compliance:  Fair appraisal systems help minimise performance-related litigation
    • How Performance Appraisal can Contribute to Firm’s Competitive Advantage Minimising dissatisfaction and turnover:  Fair and accurate appraisal results in high motivation and increased job satisfaction Consistency between organizational strategy and behaviour:  Employees want to be rewarded and hence they engage in behaviour that they perceive will be rewarded  Performance appraisal helps in judging this consistency  It helps in bringing to the fore any negative consequences of the strategy-behaviour link
    • Organizational Strategy andPerformance Appraisal Based on strategy, organizations can be grouped as defenders, prospectors and analysers Defender strategy:  Have a narrow and relatively stable product-market domain  Primary attention is to improve the efficiency of existing operation  Performance appraisal is used for identifying training needs and may be more behaviour-oriented
    • Organizational Strategy and Performance Appraisal Prospector strategy:  These organizations continuously search for different product and market opportunities  Emphasise on skills identification and acquisition of human resources from external sources  Performance appraisal is used to identify staffing needs; emphasis is on results  They focus on division and corporate performance evaluation as they compare with other companies during the same evaluation period
    • Organizational Strategy andPerformance Appraisal Analyser strategy:  Operate in two types of product-market domains: one is stable; other is changing  They watch their competitors closely and rapidly adopt the ideas that appear promising  Both skill building and skill acquisition are emphasised; training programmes are extensively employed  Both training and staffing needs are identified through appraisals  Appraisal systems are considered at individual, group and divisional levels  Examine current and past performance within the organization
    • The Performance AppraisalProcess Objectives of Performance Appraisal Establish Job Expectations Design an Appraisal Programme Feedback Appraise Performance Performance Interview Performance Management Archive Appraisal Data Use Appraisal Data for Appropriate Purposes
    • The Performance Appraisal Process:Objectives of Appraisal Individual approach: focus on correcting the problems  Effecting promotions and transfers, assessing training needs, awarding pay increase, lay offs etc Systems approach: focus on improving the performance  Appraisal system evaluates opportunity factors  Physical environment: noise, ventilation, lighting, available resources-human and computer assistance  Social processes: leadership effectiveness  Emphasis is on how the work system affects an individual’s performance
    • The Performance Appraisal Process:Establish Job Expectations Inform the employee what is expected of him or her on the job A discussion is held with the superior to review the major duties contained in the job description Individuals should not be expected to begin the job until they understand what is expected of them
    • The Performance Appraisal Process:Design Appraisal Programme Formal vs. informal appraisal Whose performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used?
    • The Performance Appraisal Process: DesignAppraisal Programme- Formal vs. informal Formal Appraisals:  Occur at specified time periods  Required by the organization for the purpose of employee evaluation  Most often used as primary evaluation Informal Appraisals:  Occur whenever the supervisor feels the need for communication  Discussions are held in private  Helpful for performance feedback  Should not replace formal appraisal Both can be used in combination
    • The Performance Appraisal Process: DesignAppraisal Programme- Whose performanceshould be rated? Is it individuals or teams?  Ratee may be defined as the individual, work group, division or organization  Ratee may be defined at multiple levels too  E.g. at the work group level for merit pay increases and at the individual level for training needs assessment Group-level appraisals may be necessitated by two conditions:  Group cohesiveness  Difficulty in identifying individual contributions
    • The Performance Appraisal Process: DesignAppraisal Programme- Who are the raters? Immediate supervisor Subordinates Peers Clients (internal or external) Rating committee: consists of immediate supervisor and few other supervisors who come in contact with the employee  Beneficial when employee has to perform a variety of tasks in different environments  Specific benefits:  Objectivity in rating as more than one rater is involved  Raters at different levels observe different facets of performance  Disadvantage:  Diminishes the role of the immediate supervisor
    • The Performance Appraisal Process: DesignAppraisal Programme- Who are the raters? 3600 system of appraisal: superiors, peers, subordinates and clients are involved  Developed at GE, US in 1992  Popular in India too: Reliance Industries, Wipro, Godrej Soaps etc. use this system Self appraisal: employee himself evaluates his performance  Provides the employee with an opportunity to participate in evaluation  Specifically so if combined with goal-setting (as in MBO)  Employees are less defensive  Best suited when executive development is the main purpose: managers clearly assess their areas of differences  May be more lenient, less viable, more biased and less in agreement with the judgement of others
    • The Performance Appraisal Process: DesignAppraisal Programme- Who are the raters? Two requisites that must be fulfilled by the rater:  Must be free from bias  Must have an opportunity to observe the full spectrum of activities and behaviour of the ratee over an extended time period
    • The Performance Appraisal Process: DesignAppraisal Programme- What are the Problems ofRating? Leniency or severity: Either of these makes the assessment subjective and defeats the purpose of appraisal  Requiring the ratings to conform to a forced distribution is one way to reduce this error Central tendency: Employees are incorrectly rated near the average or middle of the scale  The rater tries to play safe by doing this  Terms like ‘satisfactory’, ‘average’ etc. are used  Forced distribution can also create problems with accuracy; especially when most employees are performing above standard
    • The Performance Appraisal Process: DesignAppraisal Programme- What are the Problems ofRating? Halo error: One aspect of an individual’s performance influences the evaluation of the entire performance of the individual  Rating employees separately on each of a number of performance measures and encouraging raters to guard against the halo effect help in reducing the halo effect Rater effect: Favouritism, stereotyping and hostility Perceptual set: Rater’s assessment is influenced by previously held beliefs
    • The Performance Appraisal Process: DesignAppraisal Programme- What are the Problems ofRating? Primacy and recency effects: Ratings are heavily influenced by behaviour exhibited by the ratee  During the early stages of the review period (primacy)  Nearing the end of the review period (recency)  To avoid this error, the rater may be asked to consider the composite performance of the ratee  Rater must also be aware of the tendency of ratees to improve odds in their favour during the rating period Status effect: Overrating of employees in higher-level or higher-esteem jobs and underrating employees in lower-level or lower-esteem jobs
    • The Performance Appraisal Process: DesignAppraisal Programme- What are the Problems ofRating? Performance dimension order: Two or more dimensions on a performance instrument follow or closely follow each other  Both may describe similar qualities  Rater rates the first one accurately and rates the second similar to the first  Rating would differ if the dimensions had been arranged in a different order Spillover effect: allowing past ratings to unjustifiably influence current ratings Other Errors: Self study
    • The Performance Appraisal Process: DesignAppraisal Programme- Solving Rater’s Problems Provide training to raters This training should address real-life problems like union influences Video tapes are played and trainees are asked to rate Trainer gives the correct rating and illustrates the rating errors made Self Study: Factors that help improve accuracy, Factors that may lower accuracy, Abilities of right evaluators (Page 292-293)
    • What Should be Rated?
    • The Performance Appraisal Process: DesignAppraisal Programme- What Should be Rated? Objective measures: Quantifiable and highly useful in performance measurement  Quality  Quantity  Timeliness  Cost effectiveness Subjective criteria: Dependent upon human judgements; must be based on careful analysis of behaviours viewed as necessary for job performance  Need for supervision  Interpersonal impact  Community service – Employer Supported Volunteering (ESV). Eg: Standard Chartered Bank, IBM, Mindtree,HSBC  Corporate Social Sustainability (CSS) Potential appraisal -PHILIPS
    • The Performance Appraisal Process: DesignAppraisal Programme- When to Evaluate? Can be carried out once in three months, six months or a year Frequent assessment may be better  Helps in giving timely feedback and remedial measures  This helps the ratee to improve performance if there is a deficiency  Performance of trainees and probationers should be evaluated at the end of the respective programmes
    • Methods of Performance Appraisal MBO Future-oriented Cost Rating Accounting Scales Checklists Essay 360 Degree Appraisal Forced Assessment Centres ACRS Choice Appraisal Tests and Methods Forced Observations Distribution Critical Field Review Incident BARS Past-oriented Psychological Appraisals
    • Methods of Performance AppraisalPast Oriented: Rating scales Simplest and most popular technique Consists of several numerical scales each representing a job-related performance criterion  Dependability, initiative, output, attendance etc. Each scale ranges from excellent to poor Each criterion is rated and total numerical score is calculated Advantages: Adaptability, easy use, low cost Disadvantages: Rater’s biases, numerical scoring gives an illusion of precision that is really unfounded
    • Methods of Performance AppraisalPast Oriented: Checklist Checklist of statements on the traits of the employee and his job is prepared in two columns: “yes” and “no” Each item is ticked off and the list is forwarded by the rater to the HR department Rater only does the reporting; actual evaluation is done by the HR department Points are assigned to each “yes” ticked and total score is calculated based on this When points are assigned it is called a weighed checklist Advantages: economy, ease of administration, limited training of rater, standardisation Disadvantages: Rater’s bias, more use of personality than performance criteria, misinterpretation of checklist items, use of improper weights, relative ratings
    • Methods of Performance AppraisalPast Oriented: Forced Choice Method Rater is given a series of statements about the employee Rater is forced to select a statement which is most or least descriptive of the employee After selection by the rater, HR does the actual assessment Advantage: absence of personal bias Disadvantage: statements may not be properly framed
    • Please circle or highlight the response that best describesyour behaviour and least describes your behaviour Works in accordance with organisational policies and standards. 1.1. Personal appearance/grooming Well groomed Usually neat Pays attention but untidy Little attention
    • Methods of Performance AppraisalPast Oriented: Forced DistributionMethod This method seeks to overcome the problem of leniency Rater is compelled to distribute the ratees on all points on the rating scale This method operates under the assumption that the employee performance level conforms to a normal statistical distribution It assumes that employee performance levels conform to a bell shaped curve- this is also the main weakness of this method
    • Methods of Performance AppraisalPast Oriented: Forced DistributionMethod In organizations that select and retain only the good performers, this approach cannot be used If used it will result in reduces employee morale Error of central tendency: rater may resist placing an employee in the lowest or the highest group It is also difficult to convince the ratee as to why he has been placed in a particular group In small groups and in high ability groups, this method is generally not acceptable to raters and ratees
    • Methods of Performance AppraisalPast Oriented: Critical IncidentsMethod Focuses on certain critical behaviours of an employee that make all the difference between effective and non-effective performance of a job These incidents are recorded by the superiors as and when they occur Advantages: Evaluation is based on actual job behaviour It has descriptions in support of ratings; giving feedback is easy Increases the chances that the subordinates will improve as they learn more precisely what is expected of them
    • Methods of Performance AppraisalPast Oriented: Critical IncidentsMethod Limitations:  Negative incidents are more noticeable than positive ones  Recording of the incidents becomes a chore for the supervisor; he may put it off and may even forget  Overly close supervision may result  Managers may unload a series of complaints about incidents during an annual performance review session  Feedback may be too much at once and appear as a punishment to the ratee  Management should use incidents of poor performance as opportunities for immediate training and counselling
    • Methods of Performance Appraisal Behaviourally AnchoredPast Oriented:Rating Scales- BARS Rating scales whose scale points are determined by statements of effective and ineffective behaviours The scales represent a range of descriptive statements of behaviour varying from the least to the most effective Rater must indicate which behaviour on each scale best describes an employee’s performance
    • Methods of Performance Appraisal Behaviourally AnchoredPast Oriented:Rating Scales- BARS Features: Areas of performance to be evaluated are identified and defined by the people who will use the scales The scales are anchored by descriptions of actual job behaviour that represent specific levels of performance  Supervisors agree upon these  Dimensions and anchors are precisely defined All dimensions of performance to be evaluated are based on observable behaviour and are relevant to the job; BARS are tailor-made to the job Raters who use the scale are actively involved in the development process and hence they will be committed to the final product
    • Methods of Performance AppraisalPast Oriented: Field Review Method Someone outside the assessee’s own department- someone from corporate office or HR- does the appraisal The outsider reviews employee records and holds interviews with the ratee and his superior This method is primarily used for making promotional decisions at managerial levels This method is useful when comparable information is needed from employees in different locations Disadvantages:  Outsiders may not usually be familiar with conditions in work environment  No opportunity to observe employee behaviour or performance over a period of time
    • Methods of Performance AppraisalPast Oriented: Field Review Method Raters making field reviews generally receive training on how to conduct the interview and develop their writing skills They will be less biased in spite of biased information from supervisors The rater may be able to pinpoint areas requiring training and development assistance
    • Methods of Performance AppraisalPast Oriented: Performance Tests andObservations This applies to limited number of jobs Tests may be of the paper-and-pencil variety or an actual demonstration of skills Test must be reliable and validated Such tests are apt to measure potential more than actual performance For the test to be job related, observations should be made under circumstances likely to be encountered Cost of test development and administration should not be too high
    • Methods of Performance AppraisalPast Oriented: Confidential Records Confidential Record typically has 14 items:  Attendance  Self expression-written or oral  Ability to work with others  Leadership  Initiative  Technical ability (job knowledge)  Ability to understand new material  Ability to reason  Originality and resourcefulness  Areas of work that suit the person best  Judgement  Integrity  Responsibility  Indebtedness and memo served
    • Methods of Performance AppraisalPast Oriented: Confidential Records Twelve of these are filled on a four-point scale: excellent, good, fair and poor Justification is required for good or poor rating Overall rating on a five-point scale may be separately given: Outstanding, Very Good, Good, Average, Poor Justification is required for this too
    • Methods of Performance AppraisalPast Oriented: Essay Method Rater must describe the employee within a number of broad categories such as:  Rater’s overall impression of the employee’s performance  The promotability of the employee  The jobs that the employee is now able or qualified to perform  Training and development assistance required by the employee May be used independently or in combination with other methods Extremely useful in filling information gaps about employees that often occur in the better structured checklist method
    • Methods of Performance AppraisalPast Oriented: Essay Method Strength of this method depends on the writing skills and analytical ability of the rater Many raters do not have good writing skills- they become confused as to what to write Time consuming method and depends on the memory power of the rater A ‘high quality’ appraisal in this method may provide little useful information about the performance of the ratee
    • Methods of Performance AppraisalPast Oriented: Cost Accounting Method Evaluates performance from the monetary returns the employee yields to his or her company A relationship is established between the cost included in keeping the employee and the benefit the firm derives from him or her Performance is evaluated based on the established relationship between the cost and benefit
    • Methods of Performance AppraisalPast Oriented: Comparative EvaluationApproachesA collection of different methods that compare one worker’s performance with that of his co-workers Usually conducted by supervisors Can result in a ranking from best to worst Useful in deciding merit-pay increases, promotions and rewards There are two methods under this:  Ranking method  Paired-comparison method
    • Methods of Performance AppraisalPast Oriented: Comparative EvaluationApproaches- Ranking Method Superior ranks his subordinates in the order of merit- from the best to worst The HR department only knows that A is better than B- the ‘how’ and ‘why’ are not questioned or answered There is no fractionalisation into component elements Subject to halo and recency effects Rankings by two or more raters may be averaged to reduce biases Ease of administration and explanation are the advantages
    • Methods of Performance AppraisalPast Oriented: Comparative EvaluationApproaches- Paired Comparison Method Appraiser compares each employee with every other employee, one at a time The number of comparisons is calculated with the help of a formula: N(N-1) 2 N stands for the number of employees to be compared E.g. if there are 10 employees, the number of comparisons will be 45 The result is then tabulated and a rank is created from the number of time each person is considered to be superior
    • Methods of Performance AppraisalFuture-Oriented Appraisals It is not sufficient to assess the past performance alone How an employee can perform in the days to come is equally important For this one must focus on employee potential or setting future performance goals
    • Methods of Performance AppraisalFuture-Oriented: Management by Objectives Concept proposed by Peter Drucker in 1954 This management philosophy values and utilises employee contribution How MBO works:  First the goals each subordinate is to attain are established  It could be done by superiors alone or in consultation with the subordinates  These goals can then be used to evaluate performance  Next, performance standards for a particular time period are set  As they perform, the subordinates know fairly well what there is to do, what has been done and what remains to be done
    • Methods of Performance AppraisalFuture-Oriented: Management by Objectives How MBO works: (contd.)  In the third step, the actual level of goal attainment is compared with the goals agreed upon  Evaluator explores reasons for the goals not met and for the goals that were exceeded  Possible training needs can be assessed in this step  The superior may also be alerted to conditions in the organization that affect a subordinate but over which he has no control  Final step involves establishing new goals and new strategies for those not attained previously  Subordinates who successfully reach the previously established goals may be allowed to participate more in the new goal-setting process
    • Methods of Performance AppraisalFuture-Oriented: Management by Objectives Criticisms: It is not applicable to all jobs: those jobs with little flexibility are not compatible with MBO Can be used only for managerial personnel and employees who have a fairly wide range of flexibility and self-control When linked to rewards, employees may try to set easily accomplishable goals than challenging ones May lead to setting up of goals with short term horizons to the disadvantage of long term goals
    • Methods of Performance AppraisalFuture-Oriented: Psychological Appraisals Large organizations employ full-time industrial psychologists They are used for evaluations to assess future potential of employees Appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations Psychologist then writes an evaluation of the employee’s intellectual, emotional, motivational and other-related characteristics that suggest potential and may predict future performance The evaluation may be for a particular job opening, or a global assessment
    • Methods of Performance AppraisalFuture-Oriented: Assessment Centres Mainly used for executive hiring Now utilised for evaluating executive or supervisory potential Assessees are required to participate in exercises, activities etc which require the same attributes for performance as in the actual job After recording the ratee behaviours, raters meet to discuss these observations Decision regarding the performance of each assessee is based upon this discussion Self-appraisal and peer evaluation are also used for final rating
    • Methods of Performance AppraisalFuture-Oriented: Assessment Centres In spite of having trained observers and psychologists, measuring these over a few days’ span is difficult Very costly approach Raters may be influenced by the personality of the candidate; they may evaluate the individual’s social skills rather than quality of decisions Involves hazards: Good job performers may feel suffocated in the simulated environment
    • Methods of Performance AppraisalFuture-Oriented: 3600 Feedback Multiple raters are involved in evaluation It is a systematic collection of performance data on an individual or a group derived from a number of stakeholders- immediate supervisors, team members, customers, peers and self Provides a broader perspective about an employee’s performance Facilitates greater self-development through multi- source feedback Perceptions that the employee holds about himself can be compared with those held by the others Makes the employee feel accountable to his internal or external customers
    • Methods of Performance AppraisalFuture-Oriented: 3600 Feedback Technique is helpful in assessing soft skills Helps in identifying and measuring interpersonal skills, customer satisfaction and team building skills Receiving feedback from multiple sources can be intimidating; so the organizations must create a non- threatening environment by emphasising the positives Selection of rater, designing questionnaires and data analysis can be time consuming Getting a balanced objective feedback from multiple raters is difficult Separating honest observations from personal differences and biases could be difficult for raters Failure in India” Collectivism and Power distance
    • The Performance AppraisalProcess: Performance Management Performance appraisal provides feedback about employee job performance Performance management consists of three steps that are needed to complete the process:  Performance interview  Archiving performance data  Use of appraisal data Ref: Table 10.6: Appraisal and Management
    • The Performance Appraisal Process:Performance Management- PerformanceInterview Once the appraisal has been made, the raters have to discuss and review the performance with the ratees The main aim is giving feedback on where they stand Goals of performance interview:  To change behaviour of employees whose performance does not meet organizational requirements or their own personal goals  To maintain the behaviour of employees who perform in an acceptable manner  To recognise superior performance behaviours so that they will be continued
    • The Performance Appraisal Process:Performance Management- PerformanceInterview Tell and sell/Directive Interview:  Interviewer lets the assessee know how well he is doing and sells him on the merits of setting specific goals for improvement, if needed Tell and listen Interview:  Provides the subordinates with chances to participate and establish a dialogue with their superiors  Purpose: communicate the rater’s perception about ratee’s strengths and weaknesses and let the subordinates respond to these
    • The Performance Appraisal Process:Performance Management- PerformanceInterview Problem solving/Participative Interview:  An active and open dialogue is established between superior and subordinate  Perceptions are shared, solutions to problems are presented, discussed and sought Mixed Interview:  Combination of tell and sell and problem solving interviews Whatever be the approach, the aim should be counselling and development and not criticism, witch- hunting and buck passing Ref. Table 6.7: Guidelines for effective appraisal interview
    • How to conduct an interview:There are four things to keep in mind.• Be direct and specific. Talk in terms of objectivework data and concrete examples.• Don’t get personal. Do not directly attack theperson or compare directly.• Encourage the person to talk. Stop and listen tothe person. Give him a fair chance to justify hispoints.• Develop an action plan. Make sure that by theend of the day, the person knows his merits anddemerits and is willing to rectify.
    • Communication Skills for the Appraisal InterviewSkills Benefit Description ExampleNonverbal Suggests interest Rater sits with a slight While the ratee isAttending and active listening. forward, comfortable speaking, the rater lean of the upper body, looks at the person maintains eye contact, and gently nods head and speaks in a steady to signal interest. and soothing voice.Open and Appropriate use of —Open questions — Open questionsClosed open and closed encourage information start with words likeQuestions questions can sharing and are most “Could,” “Would,” ensure an effective appropriate early in an “How,” “What,” or flow of interview or in complex, “Why”. communication ambiguous situations. during an interview. —Closed question — Closed questions evoke short responses start with words like and are useful for “Did,” “Is,” or “Are.” focusing and clarifying.
    • Communication Skills for the Appraisal Interview (Cont.)Skills Benefit Description ExampleParaphrasing Paraphrasing can clarify A paraphrase is a You might begin by and convey to the ratee concise statement in saying “If I have this that you are listening your own words of what right…” or “What actively. someone has just said. you’re saying is…” and It should be factual and end with “Is that nonjudgmental. correct?” or “That’s what you are saying?”Reflection of Shows that you are Similar to paraphrase, a Start by sayingFeeling trying to understand the reflection of feeling is a something like “It emotional aspect of the factual statement of the sounds like you’re workplace. The empathy emotions you sense the feeling…” End as you and sensitivity of such other person is feeling. would a paraphrase reflection can open up Be cautious about using (“Is that right?”). communication and this technique allow the interview to insincerely or with those move more who need professional meaningfully to task- help. related issues.
    • Communication Skills for the Appraisal Interview (Cont.) Skills Benefit Description ExampleCultural Communication is more Pay attention to cultural When dealing withSensitivity effective when you are differences that may employees from a sensitive to the possible influence how another culture that is highly influence of cultural person communicates formal, avoid differences. and how you might addressing them in the communicate with workplace by their first others. names. Doing so may signal disrespect.
    • How to Determine and Remedy Performance ShortfallsCause Questions to Ask Possible RemediesAbility• Has the employee ever been • Train able to perform adequately? • Transfer • Can others perform the job • Redesign job adequately, but not this employee? • TerminateEffort • Is the employee performance • Clarify linkage between level declining? performance and rewards • Is performance lower on all • Recognize good tasks? performance •Situation Is performance erratic? • Streamline work process • Are performance problems • Clarify needs to suppliers showing up in all employees • Change suppliers even those who have adequate • Eliminate conflicting supplies and equipment? signals or demands • Provide adequate tools
    • The Performance Appraisal Process:Performance Management- ArchivingPerformance Data Refers to storing the appraisal data This facilitates future use These details are very important when employees raise issues regarding their promotions, pay hikes, confirmation, affirmative action etc.
    • The Performance Appraisal Process:Performance Management- Use ofAppraisal Data Remuneration administration Validation of selection programmes Employee training and development programmes Promotion, transfer and lay-off decisions Grievance and discipline programmes HR Planning (Read: Edward Deming on Performance Appraisal)