Appraising Performance=12
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  • 1. Appraising Performance
  • 2. Performance Appraisal
    • A process of determining how well employees do their jobs compared to a set of standards to improve their performance effectiveness.
    • Appraisal involves :
      • Setting work standards
      • Assessing actual performance vs set standards
      • Identifying conditions influencing performance
      • Discussing with the employees and giving feedback
  • 3. Why Appraise Performance?
      • Play an integral role in the employer’s performance management process.
      • Help in planning for correcting deficiencies and reinforce things done correctly.
      • Useful for career planning in identifying employee strengths and weaknesses.
      • Affect the employer’s salary raise decisions.
  • 4. Appraisal Objectives
    • Evaluative/ administrative purpose
      • Personnel decisions (promotion transfer, layoff, retention)
      • Motivational decisions (rewards, grades, incentives)
    • Developmental purpose
      • Assessment of personal/professional competency and potential
      • Identification of development needs
      • Training and development decisions
  • 5. Appraisal Process
    • Establish performance standards
    • Mutually set measurable goals
    • Measure actual performance
    • Compare performance with standards
    • Discuss the appraisal with employees
    • Initiate development/ corrective actions
  • 6. Performance Appraisal Methods
    • Topics for seminar
      • Graphic Rating Scale
      • Alternate Ranking
      • Paired comparison
      • Forced Distribution
      • Management By Objectives (MBO)
      • Behaviorally Anchored Rating Scale (BARS)
  • 7. Who does the appraising? Customers Rating Committee You Peers Boss Subordinates
  • 8. Designing an Appraisal System
    • Design decisions
      • Decide the nature of the system (uniform or differentiated; open or close; interactive or one-way)
      • Decide the purpose (evaluative, development or both)
      • Define the rater/ appraiser (single or multiple)
      • Define the appraisee (individual or group)
  • 9. Designing an Appraisal System
    • Develop measurement content
      • Focus of appraisal and relative weights
        • Person oriented (attributes and traits)
        • Work oriented (job functions/ results)
      • Aspects of performance value (quantity, quality, time, cost, supervision need, customer satisfaction)
      • Performance level anchors or measurement criteria
        • Adjectival anchors (eg: satisfactory, poor)
        • Behavioral anchors (eg: sends notice about meeting)
        • Result oriented anchors (eg: number of customer complaints)
  • 10. Designing an Appraisal System
    • Design measurement process
      • Types of measurement scale (ordinal/ranking; rating/interval)
      • Types of rating instruments
      • Accounting for situational constraints for performance
      • Score computation methods (judgemental or mathematical)
  • 11. Designing an Appraisal System
    • Administrative characteristics
      • Frequency and timing
      • Performance recording procedures
      • Information collection and processing procedures
      • Confidentiality and access
      • Methods of feedback
  • 12. Rating Errors
    • Primacy and recency effect
    • Halo and horn effect
    • Central tendency
    • Leniency/ strictness
    • Non-performance factor
    • Stereotyping
    • Hostility
    • Self-comparison/ compatibility
  • 13. Avoiding Rating Errors
    • Awareness of errors/ problems and their likely effects
    • Use of right appraisal tools
    • Training of appraisers
    • Use of diaries
  • 14. Effective Appraisal System
      • Use behaviour/ outcome based measures
      • Monitor and documents performance records
      • Provide on-going feedback
      • Avoid perceptual errors
      • Have both interactive (interview) and written (form) structure
      • Have multiple raters
      • Involve the employee in the appraisal process
      • Train appraisers
  • 15. Issues of Performance Appraisal in Nepal
    • Limited purpose (promotion-oriented) +lack of defined goals
    • Informal and subjective criteria
    • Lack of transparency in evaluation
    • Current performance-oriented (No consideration of potentialities o the performer)
    • Appraisal not as motivational tools
    • Poor infrastructure (e.g., lack of job description, goal setting, etc.)
    • Lack of performance-based reward and development system
    • Unfavorable organizational or administrative culture
    • Ritual practice