Performance appraisal ppt @ bec doms hr

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Performance appraisal ppt @ bec doms hr

  1. 1. PERFORMANCE APPRAISAL
  2. 2. Performance Appraisal Defined <ul><li>System of review and evaluation of job performance </li></ul><ul><li>Assesses accomplishments and evolves plans for development </li></ul>
  3. 3. Performance Management <ul><li>Process that significantly affects organizational success </li></ul><ul><li>Managers and employees work together to set expectations, review results and reward performance. </li></ul>
  4. 4. Purposes of Performance Mangement <ul><li>Strategic </li></ul><ul><ul><li>Aligning employee performance with organizational objectives </li></ul></ul><ul><li>Administrative </li></ul><ul><ul><li>Making employment-related decisions </li></ul></ul><ul><li>Developmental </li></ul><ul><ul><li>Aiding employee growth </li></ul></ul>
  5. 5. Appraiser Discomfort <ul><li>Performance appraisal process cuts into manager’s time </li></ul><ul><li>Experience can be unpleasant when employee has not performed well </li></ul>
  6. 6. Employee Anxiety <ul><li>Creates anxiety for appraised employee </li></ul>Rationale for Performance Appraisal Provides legal and other benefits for employers
  7. 7. Designing a performance management system <ul><li>Conduct job analysis </li></ul><ul><li>Set performance standards </li></ul><ul><li>Appraise performance </li></ul><ul><li>Feedback information to employee </li></ul>
  8. 8. Establish Performance Criteria <ul><li>Traits </li></ul><ul><li>Behaviors </li></ul><ul><li>Competencies </li></ul><ul><li>Goal Achievement </li></ul><ul><li>Improvement Potential </li></ul>
  9. 9. Responsibility for Appraisal <ul><li>Immediate supervisor </li></ul><ul><li>Subordinates </li></ul><ul><li>Peers </li></ul><ul><li>Rationale for evaluations conducted by team members </li></ul><ul><li>Self-appraisal </li></ul><ul><li>Customer appraisal </li></ul>
  10. 10. 360-Degree Valuation <ul><li>Multi-rater evaluation </li></ul><ul><li>Input from multiple levels with firm and external sources </li></ul><ul><li>Focuses on skills needed across organizational boundaries </li></ul><ul><li>More objective measure of performance </li></ul><ul><li>Process more legally defensible </li></ul>
  11. 11. Performance Measure Standards <ul><li>Strategic congruence </li></ul><ul><li>Reliability </li></ul><ul><li>Validity </li></ul><ul><li>Acceptability </li></ul><ul><li>Specificity </li></ul>
  12. 12. The Appraisal Period <ul><li>Prepared at specific intervals </li></ul><ul><li>Usually annually or semiannually </li></ul><ul><li>Period may begin with employee’s date of hire </li></ul><ul><li>All employees may be evaluated at same time </li></ul>
  13. 13. Appraisal categories and types <ul><li>Comparative </li></ul><ul><ul><li>Ranking (Simple, alternation) </li></ul></ul><ul><ul><li>Forced distribution </li></ul></ul><ul><ul><li>Paired comparison </li></ul></ul><ul><li>Attribute </li></ul><ul><ul><li>Graphic rating scale </li></ul></ul><ul><li>Behavioral </li></ul><ul><ul><li>Critical incidents </li></ul></ul><ul><ul><li>BARS </li></ul></ul><ul><ul><li>BOS </li></ul></ul><ul><li>Results </li></ul><ul><ul><li>MBO </li></ul></ul><ul><li>Quality </li></ul>
  14. 14. Problems in Performance Appraisal <ul><li>Lack of objectivity </li></ul><ul><li>Halo error </li></ul><ul><li>Leniency/strictness </li></ul><ul><li>Central tendency </li></ul><ul><li>Recent behavior bias </li></ul><ul><li>Personal bias </li></ul><ul><li>Manipulating the evaluation </li></ul>
  15. 15. Reasons for Intentionally Inflating or Lowering Ratings <ul><li>Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance. </li></ul><ul><li>Improve employee’s eligibility for merit raises. </li></ul><ul><li>Avoid airing department’s “dirty laundry.” </li></ul><ul><li>Avoid creating negative permanent record that might haunt employee in the future. </li></ul><ul><li>Protect good workers whose performance suffered because of personal problems. </li></ul><ul><li>Reward employees displaying great effort even when results were relatively low. </li></ul><ul><li>Avoid confrontation with hard-to-manage employees. </li></ul><ul><li>Promote a poor or dislike employee up and out of the department. </li></ul><ul><li>Scare better performance out of an employee. </li></ul><ul><li>Punish a difficult or rebellious employee. </li></ul><ul><li>Encourage a problem employee to quit. </li></ul><ul><li>Create a strong record to justify a planned firing. </li></ul><ul><li>Minimize the amount of merit increase a subordinate receives. </li></ul><ul><li>Comply with an organizational edict that discourages managers from giving high ratings. </li></ul>Inflating Ratings Lowering Ratings
  16. 16. Characteristics of an Effective Appraisal System <ul><li>Job-related criteria </li></ul><ul><li>Performance expectations </li></ul><ul><li>Standardization </li></ul><ul><li>Trained appraisers </li></ul><ul><li>Continuous open communication </li></ul><ul><li>Performance reviews </li></ul><ul><li>Due process </li></ul>
  17. 17. Legal Implications <ul><li>With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals </li></ul>
  18. 18. The Appraisal Interview <ul><li>Scheduling the interview </li></ul><ul><li>Interview structure </li></ul><ul><li>Use of praise and criticism </li></ul><ul><li>Employees’ role </li></ul><ul><li>Use of software </li></ul><ul><li>Concluding the interview </li></ul>

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