3. Why review performance
Where to Development
Competitive Environment
Market Condition
Long Standing Search for Greater Productivity
Quality Products / Services
Globalization of Market
Administrative Purpose
4. 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
5. 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
9. Performance Management Goals
Communication between supervisor and
employee
Feedback on performance
Documentation
Development Goals
Alignment with strategic planning goals
10. 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
12. 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
15. 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
16. Practice writing SMART performance
objectives:
– S – Specific
– M – Measurable
– A – Attainable
– R – Realistic
– T – Timely
17. 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
18. Types and Who should appraise?
– 360 degree feedback
– Self
– Peer
– BARS
– Forced Paired
– Supervisors
– Peers and team members
– Subordinates
22. 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
24. 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
25. 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
27. 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
35. False and misleading information
Increased turnover
Wasted time and money
Damaged relationships
Decreased motivation
Job dissatisfaction
Risk of litigation
Unfair standards