2. Performance Appraisal :
Performance Appraisal (PA) refers to all
those procedures that are used to
evaluate the personality, performance,
potential, of its group members
3. Relationship between jab analysis
and performance appraisal:
Job analysis performance performance
standards appraisal
Describes work
& Personnel
Requirement
Of a particular
job
Translate job
Into levels of
To acceptable
Or unacceptable
performance
Describes the
Job relevant
strengths and
weakness of
Each individual
4. Question arises?
Why do we measure performance?
Effective performance appraisal
systems
How do we measure performance?
5. Characteristics
It is a step by step process
It examine the employee strengths and
weaknesses
Scientific and objective study
Ongoing and continuous process
Secure information for making correct
decisions on employees
6. Needs and Objectives:
Provide feedback about employees
Provide database
Diagnose the S & W of individuals
Provide coaching, counseling, career
planning to subordinates
Develop positive relation and reduce
grievance
Facilitates research in personnel management
8. Appraisal Benefits
Appraisals offer the company:
Documentation
Employee Development
Feedback
Legal protection
Motivation system
9. Why Appraisals Are Important
•Recognize accomplishments
•Guide progress
•Improve performance
10. Why Important (cont.)
Review performance
Set goals
Identify problems
Discuss career advancement
11. Steps in performance appraisal
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose
13. Issues in appraisal system
Appraisal Design?
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
14. What to evaluate? (Philip Model)
Problem
children
Planned
separation
stars
Social
citizen
H
L H
L
Potential
Performance
15. How PA contribute to firm’s
competitive advantages
Improving
performance
Making correct
decision
Ensuring legal
competence
Minimizing dissatisfaction
And turnover
Values and behavior
Competitive
advantage
16. Problems in performance appraisal
1. Errors In rating
Halo effects
Stereotyping
Central tendency
Constant error
Personal bias
Spill over effect
17. 2. Incompetence
3. Negative approach
4. Multiple objectives
5. Resistance
6. Lack of knowledge
Problems in performance appraisal
(Cont’d)
18. Essentials of an effective appraisal system
Mutual trust
Clear objectives
Standardizations
Training
Job relatedness
Documentation
Feedback and participation
Individual differences
Post appraisal review
Review and appeal
20. Discrimination (cont.)
Failure to communicate standards
Failure to give timely feedback
Failure to allow employees to correct
performance
Inconsistency in measuring
performance
Failure to document performance
objectively
21. Appraisal Forms
Define performance expectations
Describe measurement tools
Use a rating system
Cover specific examples
Set measurable goals
24. Document Performance
Make sure documentation is objective
Document performance of all
employees
Provide complete and accurate
information
Document performance on a regular
basis
25. Set Goals….
Based on job requirements
Realistic
Measurable
Observable
Challenging
Prioritized
26. Employee Input
Employees take an active role:
Setting goals
Designing action plans
Identifying strengths and weaknesses
Employees participate in the PA meeting
38. Handle Hard Cases
Reviewing highly emotional employees
Rating former peers
39. Key Points to Remember
You must conduct objective appraisals on a
scheduled basis.
Appraisals tell employees how they’re doing and
how they can improve.
Appraisals help create a system of motivation
and rewards based on performance.
41. Critical Incident method
Ex: A fire, sudden breakdown, accident
Workers reaction scale
A informed the supervisor immediately 5
B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1
42. Checklist method
•Simple checklist method
•Weighted checklist method
•Forced choice method
Simple checklist method:
Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N
43. Weighted checklist method
weights performance rating
(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0
44. Forced choice method
Criteria Rating
1.Regularity on the job Most Least
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
51. Paired comparison method
A B C D E Final Rank
A - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation
52. Forced Distribution method
10% 20% 40% 20% 10%
poor Below
average
average good Excellent
No.
of
employees
Force distribution curve
53. Field review method
Performance subordinate peers superior customer
Dimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
54. Performance criteria for executives
For top managers
Return on capital employed
Contribution to community development
Degree of upward communication from
middle-level executives
Degree of growth and expansion of
enterprise.
55. For middle level managers
Departmental performance
Coordination among employees
Degree of upward communication from
supervisors
Degree of clarity about corporate goals and
policies
56. For supervisors
Quality and quantity of output in a given period
Labor cost per unit of output in a given period
Material cost per unit in a given period
Rate of absenteeism and turnover of employees
No of accidents in a given period