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Performance Appraisal Methods/Technequies

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  2. 2. PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job.  How the employee is performing  How the employee can develop  What the superior can do to make it happen  How the job is going What is Performance Appraisal
  3. 3. Performance Appraisal : Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
  4. 4. • Provide information about the performance ranks. Decision regarding salary revision, confirmation, promotion and demotions. • Provide feedback about level of achievement and behaviour of the subordinate. • Provide information which helps to counsel the employees. • Provide information to diagnose the deficiency of the employees. • Provide training and development needs of the employees. WHY conduct a Performance Appraisal
  5. 5. • The performance review must occur atleast once in a year. Some companies review twice in a year. • However, as a part of Performance Management, the performance review is a continuing, ongoing activity. WHEN to conduct a Performance Appraisal
  6. 6. • Establish a more effective two way communication • Set performance objectives • Help improve current performance • Assess past performance • Provide feedback on performance • Identify training & development needs • Allocate rewards • Identify staff with promotional possibilities • Assist in career planning decisions OBJECTIVES of Performance Appraisal
  7. 7. 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
  8. 8. • The Appraisee • The Appraiser • HR Department WHO are involved in Performance Appraisal
  9. 9. Steps in performance appraisal Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
  10. 10. Process of PA Setting performance standardsTaking corrective standards Discussing results Comparing standards Measuring standards Communicating standards
  11. 11. Performance Appraisal Methods • Individual Evaluation Methods • Confidential report • Essay evaluation • Critical incidents • Checklists • Graphic rating scale • Behaviorally anchored rating scale • MBO
  12. 12. •Group Appraisal • Ranking • Paired comparison • Forced distribution • Performance tests Field review technique Performance Appraisal Methods
  13. 13. Performance Appraisal Methods Traditional methods 1. Confidential report 2. Essay evaluation 3. Critical incidents 4. Checklists 5. Graphic rating scale 6. Straight Ranking 7. Paired comparison 8. Forced distribution 9. Grading system 10. Field review technique 11. Nominations 12. Work samples
  14. 14. Performance Appraisal Methods Modern methods 1. Assessment centre 2. Human resource accounting – costs & contribution 3. Behaviorally anchored rating scale 4. MBO 5. 360º performance apparaisal
  15. 15. Traditional Methods of Performance Appraisal. • Graphic Rating Scales: This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).
  16. 16. Quantity of work: Volume of work under normal working conditions Unsatisfac tory (1) Fair (2) Satisfac tory (3) Good (4) Out Standin g (5) Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: Exhibits enthusiasm and cooperativeness on the job Table: Typical Graphic Rating Scale Employee Name................... Job title ................. Department ......................... Rate ............... Data ..................................
  17. 17. Ranking Method • This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
  18. 18. Performance Point s Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks and roam around purposelessly.
  19. 19. Paired Comparison Method • A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
  20. 20. Forced distribution method • Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.
  21. 21. Checklist Method • Another simple type of individual evaluation method is the checklist. Is the employee really interested in the task assigned? Yes/No Is he respected by his colleagues (co-workers) Yes/No Does he give respect to his superiors? Yes/No Does he follow instructions properly? Yes/No Does he make mistakes frequently? Yes/No
  22. 22. Critical Incidence Method • Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job . • July 20 – Mr. Paul patiently attended to the major customers complaint. He is polite, prompt, enthusiastic in solving the customers’problem. On the other hand the bad critical incident may appear as under: • September 28– Mr. Paul stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager’s call thrice.
  23. 23. Essay Method • This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior.
  24. 24. Confidential Report It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employee’s immediate superior. The report highlights the strengths and weaknesses of the subordinate.
  25. 25. Modern Methods
  26. 26. MBO A process whereby the superior and subordinates of the organization jointly identify its common objectives, define each individual’s major areas of responsibility. 1. Establishment of Goals 2. Setting the performance standard 3. Actual level of job attainment is compared with the goals agreed upon. 4. Establishing new goals and new strategies for goals not previously attained.
  27. 27. PSYCHOLOGICAL APPRAISALS: When psychologists are used for evaluations, they asses an individual’s potential. The appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations.
  28. 28. Assessment Centre • This not a technique of performance appraisal by itself. In fact, this is a system or organization where assessment of several individual is done by experts by using various techniques. These techniques used role playing, case studies etc.
  29. 29. 360 DEGREE FEEDBACK
  30. 30. What is 360 DF? 360 Degree Feedback is a multi - rater feedback system where an individual is assessed by a number of assessors including his boss, direct reports, colleagues, internal customers and external customers
  31. 31. Internal Customers “Boss” Peers External Customers Team Members Self Feedback collected from Using a specially designed tool Anonymously What is 360 DF?
  32. 32. 1. Halo/horn effect – employee’s extreme competence in one area “shines” over all others. Conversely, employee does poorly in one area and this overshadows all areas. 2. Bias – own prejudices {race, national origin, gender, appearance, etc.} influence the appraisal 3. Comparison Rating – contrasting one employee with another Common Problems Associated with Conducting the Appraisal
  33. 33. 3. Central Tendency – rate everyone as average 4. Recency Effect – focusing on recent performance instead of entire year 5. Personal Prejudice – If the rater dislikes one group or employees, he may rate them at the lower end. 6. Favoritism – evaluating friends or those who don’t make waves, etc. more favorably than others Common Problems Associated with Conducting the Appraisal