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Module 4.5.6
Performance Management and Appraisal
The concepts
Performance Management and Appraisal
Why review performance
Where to Development
Competitive Environment
Market Condition
Long Standing Search for Greater Productivity
Quality Products / Services
Globalization of Market
Administrative Purpose
Nature
Performance management:
– Dynamic, continuous process
– Improves organizational
effectiveness
– Strategic goals
Performance appraisal:
– Periodic (usually annual) event
– Formal review
– Last step in performance
management process
Importance
70% employers expect attrition after
appraisals
70% expect some employees to leave as a
result of dissatisfaction with appraisals
Reference: Times of India, 27th
March, 2013, page: 4
Understanding Performance
Productivity
Outcome
Quality
Efficiency
Effectiveness
Focused !!!!
SS Specific
MM Measurable
AA Aligned with org goals
RR Realistic and Result oriented
TT Time limited
PM advantage
Retention
Motivation
Image
Brand
Self Esteem
Behavior
Talent Management
Productivity
Performance Management Goals
Communication between supervisor and
employee
Feedback on performance
Documentation
Development Goals
Alignment with strategic planning goals
HR’s Role in Performance Management
Participate in strategic planning
Conduct job analysis
Support performance management
Design appraisal system
Train and support managers
Maintain documents
Provide employee due process
Ensure integrity of the system
Conditions for Performance ??
Management
Managers
Support system
Oppournity
Governance
What is performance measurement?
Performance measurement is the process of ….
measuring efficiency
effectiveness
capability
of an action or
a process or
a system
against given norm or target
Performance Management Process
1. Prerequisites
2. Performance planning
3. Performance execution
4. Performance assessment
5. Performance review
6. Performance renewal and re-contracting
Prerequisites:
– Strategic planning
– Goals
– Vision
– Mission
– Objectives
– Job analysis
– Job Study
– JD
Performance Planning
Employees must have thorough
knowledge of the performance
management system
Meeting between employee and
manager.
Set SMART goals and measurement
standards:
– Results
– Behavior
– Developmental plans
Practice writing SMART performance
objectives:
– S – Specific
– M – Measurable
– A – Attainable
– R – Realistic
– T – Timely
Performance Execution Shared
responsibility
– Employee responsibility:
• Commitment to established goals.
• Communication and update with
manager
– Manager responsibility:
• Feedback, coaching and
reinforcement
• Resource support
• Accurate observation and
documentation
Types and Who should appraise?
– 360 degree feedback
– Self
– Peer
– BARS
– Forced Paired
– Supervisors
– Peers and team members
– Subordinates
Should employees do self-appraisals?
Why
How
When
Where
How
Performance Appraisal Methods
Graphic rating scale
Ranking method
Forced distribution method
Critical incident method
Essay method
BARS–behaviorally anchored
rating scale
MBO–management by objectives
Essay BARS
Field 3600
Man to Man Trait Assessment
Group Appraisal Socio-gram approach
Personal Review Videotape
Graphic Assessment Centre
Checklist Critical Incidence Evaluation
Ranking MBO and Self
Performance Appraisal Problems
Appraiser discomfort
Strictness/leniency
Bias and lack of objectivity
Manipulating the evaluation
Halo/horns effect
Central tendency error
Recent behavior / recency
Supervisor unable to observe behavior
Other issues
Who is Appraising
What is Appraised
When to Appraise
Where to Appraise
How much to Appraise
Why to Appraise
Whom to Appraise
What not to appraise
Getting Ready for the Interview
Explain the purpose of the interview
Discuss self-appraisal
Share ratings and explain rationale
Discuss development plans
Employee summary
Rewards discussion (if appropriate)
Set follow-up meeting
Employee signature
Supervisor recap
Appeals process
Counseling and Guidance
Issues With Performance Management
Legal issues
Untrained raters
Rater errors
Rater distortion
No grievance procedure
Who is responsible for Performance
CEO
Top Management
Middle Management
The Team
Poorly Implemented PM Systems
False and misleading information
Increased turnover
Wasted time and money
Damaged relationships
Decreased motivation
Job dissatisfaction
Risk of litigation
Unfair standards
Performance Management Skills
Communication
Coaching
Giving feedback
Empathy
Team
Drafting
Editing
Writing
Attention to details
mm bagali...... HR...... HRM..... Productivity......Performance management

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mm bagali...... HR...... HRM..... Productivity......Performance management