This document discusses performance management and appraisal. It begins by defining performance measurement as assessing the efficiency, effectiveness, and capability of actions, processes, or systems against given norms or targets. Performance is the results and accomplishments achieved, while competency refers to the means used to achieve those ends. The document then lists several reasons for implementing formal performance management programs, such as improving organizational effectiveness, motivating employees, and linking pay to productivity. It also discusses characteristics of performance management systems, the HR role, conditions needed, and common appraisal methods like rankings and ratings scales. Issues that can arise include biases, recent behavior biases, and lack of objective metrics. The performance management process involves planning, execution, assessment, review,

1. Good morning !!!

2. Module 10
Performance Management and Appraisal

3. 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

4. Performance is the results and accomplishments achieved by a
person, group or organization
Too often the term performance is confused with competence
Performance as the end result and competency as the means to
the end
Thus, Performance is ……
Outcome
Delivered
Output
Value

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

6. Better planning Clarity about what to do
Better communication Better dialogues with manager and
colleagues
Improving managerial capabilities Better quality
Empowering the workforce More freedom to decide on the what and
how of performance
Focused development planning Structured frame work for developing
performance and potential
Better value for money Better recognition for doing good work
Improved performance at all levels An opportunity to meet expected
performance in a structured and
consistent way
Reasons for Performance Management
What is in it for us?
Organisation Individual

7. Reasons for Introducing Formal
Performance Management Programs
Reasons % Of organizations
with formal schemes
Improve effectiveness of organization 85
Motivate employees 57
Improve training and development 54
Change culture 54
Link pay to productivity 50
Attract and retain specialists 45
Support TQM 36
Link pay to skills development 16
Mange wage bill 14

8. Characteristics of PMS
Clear link
Relevant Performance dimensions
Practical
Best performer and the rest
Reliable
Ethical
Fair

9. 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

10. Conditions for Performance ??
Management
Managers
Support system
Oppournity
Governance

11. Performance Management System

12. Performance Management / Appraisal of
Students…. MBA @CMS

13. Performance Management / Appraisal of
Students…. MBA @CMS
Attendance
Organisational visits
Projects
Cases Writing / Or any write up
CEO Meet/ HR meet/ Corporate Letter to the Editor
Article Publication
Management Festival
Sports
CSR / NGO
Letter to Editor
Debate citywide / Quiz/ Discussion
Conference
Membership to Prof. Association
And the like……………..

14. Performance Appraisal Methods

15. Appraisal is the form of evaluating the already work/
performance of the person against the set goals…
.. KRA and KPA

16. Balanced Scorecard (BSC)is a strategy performance management tool
which outperforms the traditional methods of performance evaluation owing
to its ability to give an integrated view of the organisation, by incorporating
both financial and non-financial parameters.

17. Graphic rating scale
Ranking method
Forced distribution method
Critical incident method
Essay method
BARS–behaviorally anchored
rating scale
MBO–management by objectives

18. Performance Appraisal Problems

19. Appraiser discomfort
Strictness/leniency
Bias and lack of objectivity
Manipulating the evaluation
Halo/horns effect
Central tendency error
Recent behavior
Supervisor unable to observe behavior

20. Performance Management Process
1. Prerequisites
2. Performance planning
3. Performance execution
4. Performance assessment
5. Performance review
6. Performance renewal and re-contracting

21. Prerequisites:
– Strategic planning
– Goals
– Vision
– Mission
– Objectives
– Job analysis
– Job Study
– JD

22. 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

23. Practice writing SMART performance
objectives:
– S – Specific
– M – Measurable
– A – Attainable
– R – Realistic
– T – Timely

24. 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

25. Who should appraise?
– Supervisors
– Peers and team members
– Subordinates
– 360 degree feedback

26. Should employees do self-appraisals?
Why
How
When
Where
How

27. Getting Ready for the Interview

28. 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

29. Issues With Performance Management

30. Legal issues
Untrained raters
Rater errors
Rater distortion
No grievance procedure

31. Who is responsible for Performance

33. CEO
Top Management
Middle Management
The Team

34. Poorly Implemented PM Systems

35. False and misleading information
Increased turnover
Wasted time and money
Damaged relationships
Decreased motivation
Job dissatisfaction
Risk of litigation
Unfair standards

36. Performance Management Skills

37. Communication
Coaching
Giving feedback
Empathy
Team
Drafting
Editing
Writing
Attention to details

38. Thanks