DEFINITIONPerformance appraisal• According to Flippo, a prominentpersonality in the field of Humanresources, "performance appraisal isthe systematic, periodic and animpartial rating of an employee’sexcellence in the matters pertainingto his present job and his potentialfor a better job."
Provide a review of past work performance. Establish lines of communication. Create an opportunity to discuss professionaldevelopment goals and objectives.NEED OFPERFORMANCE EVALUATIONS
– Document employee performance.– Document corrective action necessary to improve workperformance.– It is the supervisor’s and manager’s responsibility tomonitor, evaluate and coach employees.
AIMS OF PERFORMANCEAPPRAISAL• Give employee feedback.• Identify employee training need• Document criteria.• Form a basis for personnel: salary increases,promotions, disciplinary actions, bonuses, etc.• Provide the opportunity for organizational diagnosis anddevelopment• Facilitate communication• Validate selection techniques and human resourcepolicies.
PURPOSES OFPERFORMANCE APPRAISAL• To review the performance of theemployees.• To judge the gap between theactual and the desiredperformance.• To help the management inexercising organizational control.• To diagnose the training anddevelopment needs of the future.
• Provide information to assist in the HRdecisions like promotions, transfers etc.• Provide clarity of the expectations andresponsibilities of the functions to beperformed by the employees.• To judge the effectiveness of the otherhuman resource functions.• To reduce the grievances of the employees.• Helps to strengthen the relationship andcommunication between superior –subordinates and management – employees.
WORK RELATED OBJECTIVES–To provide a control forwork done–To improve efficiency–To help in assigningwork and plan futurework assignment; and–To carry out jobevaluation
CAREER DEVELOPMENTOBJECTIVES– To identify strong and weak points andencourage finding remedies for weakpoints through training;– To determine career potential;– To plan developmental( promotional orlateral) assignments; and– To plan career goals
OBJECTIVES OF COMMUNICATION• To provide adequate feedback onperformance;• To clearly establish goals, i.e what isexpected of the staff members in termsof performance and future workassignments;• To provide counseling and jobsatisfaction through open discussion onperformance and• To let employees assess where theystand within the organization in terms oftheir performance.
ADMINISTRATIVE OBJECTIVES• To serve as a basis forpromotion or demotion;• To serve as a basis forallocating incentives;• To serve as a basis fordetermining transfers ; and• To serve as a basis fortermination in case of reductionof staff.
USE OF PERFORMANCEAPPRAISAL SYSTEMRaises, MeritPay, BonusesPersonnelDecisions(e.g.promotion,transfer,dismissal)Identificationof trainingneedsResearchpurposes
ELEMENTS OFPERFORMANCE APPRAISALSetting performancegoals and objectivesDetermining keycompetenciesMeasurement ofperformanceagainst the goalsand objectivesMeasurement ofperformanceagainst keycompetencies,Feedbackof results.Amendment togoals andobjectives
CHARACTERISTICS OF EFFECTIVEPERFORMANCE APPRAISAL• The philosophy, purpose, andobjectives of the organization areclearly stated so that performanceappraisal tools can be designed toreflect these.• The purposes of performanceappraisal are identified,communicated, and understood.• Job descriptions are written in sucha manner that standards of jobperformance can be identified foreach job.
• The appraisal tool used is suited tothe purposes for which it will beutilized and is accompanied by clearinstructions for its use.• Evaluators are trained in the use ofthe tool.• The performance appraisalprocedure is delineated,communicated and understood.• Plans for policing the appraisalprocedure and evaluating appraisaltools are developed andimplemented.
• Performance appraisal has the fullsupport of top management.• Performance appraisal is considered tobe fair and productive by all whoparticipate in it.
OBSTACLES TO EFFECTIVEPERFORMANCE APPRAISAL• Lack of support from topmanagement.
RESISTANCE ON THE PARTOF EVALUATOR BECAUSE:• Performance appraisal demandstoo much of supervisors effortsin terms of time, paperwork, andperiodic observation ofsubordinates’ performance.• Supervisors do not fullyunderstand the purposes andprocedures of performanceappraisal.
• Supervisors lack skills in appraisaltechniques.• Performance appraisal is notperceived as being productive.• Evaluator biases and rating errors.• Lack of clear, objective standards ofperformance.• Failure to communicate purposes and• Lack of suitable appraisal tool.• Failure to police the appraisalprocedure effectively.
WHEN ARE PERFORMANCEEVALUATIONS SUPPOSED TOHAPPEN
Step by step Guide to Performance AppraisalsDevelop performance standardsSetting goals and objectivesData collectionPerformance appraisal interviewFuture goals and objectivesFollow upRewarding performance
A.DEVELOP THE STANDARDSFOR EVALUATIONPerformance standards are:• Based on the position, not the individual• Observable, specific indicators of success• Meaningful, reasonable and attainable• Describe “fully satisfactory” performanceonce trained• Expressed in terms of quantity, quality,timeliness, cost, safety or outcomes
B. SETTING OBJECTIVES• Specific• Performance oriented• Realistic• Observable
C. DATA COLLECTION• Sources of performanceinformation– Personal observation– Reports, documentation,correspondence. Etc.– Feedback (internal and external)– Periodic discussions with employee
D. PERFORMANCEAPPRAISAL INTERVIEW• Review standards, documentationand job description as well as theappraisal form and various ratings.• Write the appraisal ( Complete thePerformance Appraisal Form).• Know the person’s recordthoroughly.• Prepare the employee in advance.
Guidelines for conducting theinterview• Establish a friendly, helpful, purposeful toneat the outset of the discussion. Be at ease.• Ask for the subordinate’s opinion of his orher performance since the last appraisal.• Recognize the staff nurse’s accomplishmentsand contributions to the hospital.• Be ready to suggest specific developmentalactivities suitable to each employee’s needs.• Make sure that the session is truly adiscussion.
• List disagreements: if possible, disagreementsshould be resolved before the end of theinterview.• Make certain that your employees fullyunderstand your appraisal of theirperformance.• Discuss the future as well as the past. Planwith the employee specific changes inperformance or specific developmentalactivities that will allow fuller use ofpotential.• End the discussion on a positive, future –improvement- oriented note.• Document the conclusions.
E. FUTURE GOALS ANDOBJECTIVES• At the end of the interview, the employer shouldallow some time to create a development plan.• The employer should record specific goals,targets or benchmarks that the employee willattempt to achieve.• Both employer and employee should agree onthe steps to be taken to achieve these targets,• Both should agree on how the employee’sprogress towards these objectives will bemeasured and set a defined timeframe, even ifthis is simply the next performance appraisal.
F. FOLLOW UP• Follow up means more than simplyconducting regular formal performancereviews once a year.• If employers review employees andprovide feedback as part of everydaymanagement, both employers and theemployee will learn much more abouttheir strengths, weaknesses and howemployers would prefer the job to bedone.
G. THE PERFORMANCEEVALUATION REPORT• Class specification and / or informal jobdescription.• Job standards, procedures and regulations.• Established goals, objectives andexpectations.• Knowledge and abilities to perform thejob.• Job relationships required for successfulperformance, i.e supervisors, co-workers,county employees and the public.
• Quality of work, including the natureand consequences of errors madeduring the evaluation period.• Production rate, if applicable.• Commendations awarded relative toemployee performance.• Use of job skills and efforts to enhanceskills.• Ability to work with others.• Attendance, use of sick leave,punctuality.
Questions to consider when preparingto write the performance report:• Did the employee meet or exceed quantity andquality standards?• Does the employee have the skills to perform thejob?• Has the employee increased skill level andestablished value to the organization?• If corrective action was instituted due to errors and/or complaints that damaged the efficiency oforganizational operations, was it effective?
• Has the employee demonstrated job relatedefficiency through special efforts andcapabilities?• Does the employee follow organizationalrules and standards of the department?• Does the employee utilize supervisoryguidance?
Guidelines for the writing of theEmployee Performance Report• Establishing objectivity in written performanceevaluations by avoiding vague subjectiveterminology.• Use specific job related terms and clearly defineintent of comments.• Avoid the use of personal “traits” such as integrity,loyalty, honesty, initiative, etc. Measure employeeperformance against the job specifications.
H. REWARDING PERFORMANCE• Rewarding performance meansproviding incentives to, andrecognition of, employees fortheir performance andacknowledging theircontributions to the agency’smission.
• Outstanding ( Level 5): Eligible for anindividual cash award up to 5% of base pay; aQuality Sleep Increase; Time Off Award ; orother appropriate equivalent recognition.Additionally, may be eligible for a salaryincrease of up to 5% from the Human ResourceFund or as per organization’s policy.• Exceeds Expectations (Level 4): Eligible foran individual cash award up to 3 % of base pay;Time –Off Award, non-momentary award orother appropriate equivalent recognition.
• Competent (Level 3): Eligible forawards such as monetary, non-momentary, Time –off, or otherappropriate equivalent recognition,given for reasons: other than sustainedperformance tied to the rating ofrecord.• Minimally Successful (Level 2):Ineligible for any performancerecognition.• Unsatisfactory (Level 1): Ineligiblefor any performance recognition.
1. Essay appraisal method This traditional form of appraisal, also knownas "Free Form method" involves a descriptionof the performance of an employee by hissuperior. The description is an evaluation of theperformance of any individual based on thefacts and often includes examples andevidences to support the information. A major drawback of the method is theinseparability of the bias of the evaluator.
2. Straight ranking method1. This is one of the oldest and simplest techniquesof performance appraisal.2. In this method, the appraiser ranks the employeesfrom the best to the poorest on the basis of theiroverall performance.3. It is quite useful for a comparative evaluation.
Professional Performance Standard 3:Education: The oncology nurse acquires andmaintains current knowledge in oncologynursing practice.Criteria: Rating1 2 31. Participates in ongoingeducational activities (includinginservices, continuing education,formal education, andexperientatil learning) to expandoncology knowledge ofprofessional issues2. Seeks experiences to develop& maintain clinical skills
3. Paired comparison• A better technique of comparison than thestraight ranking method, this methodcompares each employee with all others inthe group, one at a time.• After all the comparisons on the basis of theoverall comparisons, the employees aregiven the final rankings.
6. Checklist method• The rater is given a checklist of thedescriptions of the behaviour of theemployees on job.• The checklist contains a list ofstatements on the basis of which therater describes the on the jobperformance of the employees.
4. Critical incidents methods• In this method of Performanceappraisal the evaluator rates theemployee on the basis of criticalevents and how the employee behavedduring those incidents.• It includes both negative and positivepoints.• The drawback of this method is thatthe supervisor has to note down thecritical incidents and the employeebehavior as and when they occur.
5. Field review• In this method, a senior member ofthe Human Resource department or atraining officer discusses andinterviews the supervisors to evaluateand rate their respective subordinates.• A major drawback of this method isthat it is a very time consumingmethod.• But this method helps to reduce thesuperiors’ personal bias.
7. Graphic rating scale• In this method, an employee’s quality and quantityof work is assessed in a graphic scale indicatingdifferent degrees of a particular trait.• The factors taken into consideration include both thepersonal characteristics and characteristics related tothe on the job performance of the employees.• For example a trait like Job Knowledge may bejudged on the range of average, above average,outstanding or unsatisfactory.
8. Forced Distribution• To eliminate the element of bias from therater’s ratings, the evaluator is asked todistribute the employees in some fixedcategories of ratings like on a normaldistribution curve.• The rater chooses the appropriate fit for thecategories on his own discretion
1. Assessment centres• An assessment centre typically involves theuse of methods like social/informal events,tests and exercises, assignments being givento a group of employees to assess theircompetencies to take higher responsibilitiesin the future.• Generally, employees are given anassignment similar to the job they would beexpected to perform if promoted.• The trained evaluators observe and evaluateemployees as they perform the assigned jobsand are evaluated on job related
2. Behaviorally anchoredrating scales• Is a relatively new technique which combines thegraphic rating scale and critical incidents method.• It consists of predetermined critical areas of jobperformance or sets of behavioral statementsdescribing important job performance qualities asgood or bad.• In this method, an employee’s actual job behavior isjudged against the desired behavior by recording andcomparing the behavior with BARS.
3. Human resource accounting method• Human resources are valuable assetsfor every organization. Humanresource accounting method tries tofind the relative worth of these assetsin the terms of money.• In this method the Performanceappraisal of the employees is judgedin terms of cost and contribution ofthe employees.
• The cost of employees include all theexpenses incurred on them like theircompensation, recruitment and selectioncosts, induction and training costs etcwhereas their contribution includes thetotal value added (in monetary terms).• The difference between the cost and thecontribution will be the performance of theemployees.• Ideally, the contribution of the employeesshould be greater than the cost incurred onthem.
• 360 degree feedback, alsoknown as multi-raterfeedback, is the mostcomprehensive appraisalwhere the feedback aboutthe employees’performance comes fromall the sources that comein contact with theemployee on his job
• Clarity of goals – With MBO, camethe concept of SMART goals i.e.goals that are:SpecificMeasurableAchievableRealistic, andTime bound
ERRORS IN WRITINGPERFORMANCE EVALUATIONS• The “ halo effect”• The “pitchfork effect” or “ recencyeffect”.• “Stereotyping”• “Comparing”• “Mirroring”• Managers and supervisors want toavoid being the “ bad guy”.
EFFECTIVE MANAGEMENT OFPERFORMANCE APPRAISAL• The system should be simple, effective, efficient andadministratively feasible.• The procedures and uses of the system should beunderstood and agreed on by line management andthe employees being rated.• Factors to be rated should be measurable and agreedon by managers and subordinates.• Raters should understand the purpose and nature ofthe performance review.
• They should be taught to the use thesystem, observe, and write notes, includingcritical incident file, organize notes and writeevaluations that include examples ofevidence, edit their reports and conduct effectivereview interviews.• Raters should understand the meanings of thedimensions rated, including the dimensions’relative weights. Managers are reported to beable to distinguish among only three levels ofperformance: poor, satisfactory, and outstanding.• Criticism should promote warmth and thebuilding of self esteem for both rate and rater.
• The process should be organized and usedto manage employees on a daily basisaccording to their needs to be coached.• Praise or suggestions for improvementshould be done at the time of the event.• Standards of performance should be setand modified at the time of the event.• Performance standards should be valid,reliable and fair.• Managers should be rewarded for goodperformance evaluation skills.
QUALITIES OF A GOODAPPRAISALIt is FactualIt is FairIt describes the Whole PeriodIt describes the Whole JobIt has no Surprises
Benefit for the individual:• Gaining a better understanding of their role• Understanding more clearly how and where they fit inwithin the wider picture• A better understanding of how performance is assessedand monitored• Getting an insight• Improving understanding of their strengths andweaknesses and developmental needs• Identifying ways in which they can improve performance• Providing an opportunity to discuss and clarifydevelopmental and training needs• Understanding and agreeing their objectives for the nextyear• An opportunity to discuss career direction and prospects.
Benefit to the line/manager/supervisor/team leader:• Oppurtunities to– hear and exchange views and opinions awayfrom the normal pressure of work– to identify any potential difficulties orweaknesses– An improved understanding of the resourcesavailable– to plan for and set objectives for the next period– to think about and clarity their own role– to plan for achieving improved performance– to plan for further delegation and coaching– to motivate members of the team
Benefits to the organization• A structured means of identifying andassessing potential• Up-to-date information regarding theexpectations and aspirations ofemployees• Information on which to base decisionsabout promotions and motivation• An opportunity to review successionplanning
• Information about training needs which canact as a basis for developing training plans• Updating of employee records (achievements, new competencies, etc)• Career counseling• Communication of information
PERFORMANCE APPRAISAL FOREMPLOYEES AT DIFFERENT LEVELS• For top level management• Degree of organizational growth andexpansion• Extent of achievement of organizationalgoal• Contribution towards the society• Profitability and return on capitalemployed
• For middle level managers• Performance of the departments or teams• Co-ordination with other departments• Optimal use of resources• Costs Vs. revenues for a given period oftime• The communication with superiors andsubordinates
The following are the major discrepancies found inthe performance appraisal processes being followedat the government organizations.• Most of the indicators used for measuring the performancethe employees are not quantifiable in nature, making itdifficult to measure the performance.• Due to the lack of accountability and job security, mostgovernment employees have a laisser faire attitude towardstheir work.• Unavailability of the job descriptions for many employees
• For front line supervisors• Quantity of actual output against thetargets• Quality of output against the targets• Number of accidents in a given period• Rate of employee absenteeism
PERFORMANCE APPRAISAL INGOVERNMENT ORGANIZATIONS• The most common method of Performanceappraisal that is used in most of thegovernment organizations is Confidentialreport (popularly known as CR) written bythe superior of the employees.
• Most of the objectives in government organizations are unchallenging,unrealistic and not timely reviewed and updated.• It is difficult to measure the average performance of the governmentemployees.• Unprofessional and unstructured approach towards the process.• There is often a lot of bias and subjectivity involved in the ratingsgiven by the superiors.• Lack of complete information on appraisal forms due to expertise andrelevant training; often, the appraisals are not conducted on a regularbasis.
• In government organizations, team appraisalis often not possible.• Other HR decisions like rewards, training orpromotions are not directly linked to theresults of the performance appraisalprocess.
ROLE OF ADMINISTRATORIN PERFORMANCE APPRAISAL• Manage and supervise the work of others, directlyand through subordinate managers.• Appraise performance.• Counsel and train employees, directly and throughsubordinate managers.• Monitors smooth functioning of performanceappraisal in the department.
• Understand, interpret and apply laws, rules,regulations and policies related toPerformance appraisal.• Develop and implement disciplinary actionsas necessary.• Collect, interpret and evaluate narrative andother data pertaining to Performanceappraisal.
• Marshburn, D.M. et. Al. (2009) in her study, examined therelationship between 265 new nurse’s perceptions andmeasured performance based clinical competence in anacademic medical care centre in Greenville, usingDescriptive co-relational designs to examine therelationships. Performance based clinical competence wasmeasured by the Performance Based Development Systemdeveloped by Del Bueno (1990). She reported that nurse’swho scored high on perception scores also scored highperformance scales. There was a relationship between newnurse’s perceptions of clinical competence and aperformance based measures of clinical competence.
• Prepare complex reports and other writtenmaterials of Performance appraisal.• Analyze and resolve complex problems related toappraisal.• Communicate clearly and concisely, both orallyand in writing; present findings, of Performanceappraisal to employees.• Provide excellent interpersonal relations withemployees.• Maintains performance appraisal records andreports of all employees working under her/him.
RESEARCH RELATED TOPERFORMANCE APPRAISAL• Harcourt M. & Narcisse S.(2008) conducted a study on Employee FairnessPerceptions of performance appraisal. The researcher identified the essentialfactors which influence employees’ fairness perceptions of theirperformance appraisals, and determined the applicability of these factors tothe experiences of employees in a Saint Lucian public service organization.A qualitative case study method was used to gain understanding of employeeperceptions of the fairness of their performance appraisals. Data obtainedfrom both completed appraisal forms and interviews with 20 employees wastranscribed and assessed using a thematic analysis. Overall, results showedthat justice factors influence employee perceptions of fairness in theirappraisals. Results suggested that employees also consider four additionaljustice factors, the consistency in reward distribution,• appraisal frequency, job relevant criteria and rater and rate training.
THANK YOUA good process is the foundation ofyour success”