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PERFORMANCE MGT _ APPRAISAL FOR EFFECTIVE PRACTICE
- 1. PERFORMANCE MANAGEMENT &APPRAISAL Lecturer Mupenzi Elisa
- 2. Expected Learning Outcomes •Explain the meaning and importance of performance management • Describe the process of performance management • Explain the meaning and uses of performance appraisal • Describe the methods/types/techniques of performance appraisal • Identify errors in performance appraisal and explain how these errors can be eliminated • How can you deal with poor performers?
- 3. Meaning of Performance management •Process of planning, monitoring and reviewing employee contribution to the organization
- 4. Evolution • In thepast performance management was construed to mean controlling behavior of employees • The negative feedback was not communicated to employees but kept it in files for future reference • Confidential performance reports were replaced by appraisals • Today emphasis is put on results-oriented, development, review & feedback
- 5. Summary of thePerformance Management Cycle Performance planning Performance monitoring and review/appraisal Performance outcomes management
- 6. Prerequisites of agood performance management • Clearly defined goals/targets • Top management support • Clearly defined roles • Employee participation • Open communication • Major performance indicators/parameters should be clearly defined and measurable • Consistency and fairness in application • Recognition of outstanding performance • Development based on identified improvement needs
- 7. Meaning of performanceManagement “the continuous process of identifying, measuring and developing the performance of individuals and teams and aligning their performance with the organization’s goals”
- 8. Performance Management process 1.Performance planning- set goals, objectives, targets 2. Performance and development agreement e.g. performance contract signing 3. Continuous monitoring and feedback by supervisor 4. Performance appraisal 5. Giving performance appraisal feedback to employee 6. Taking action on feedback– e.g. rewards, training, promotion
- 9. The Performance Cycle »Major Areas of Responsibility » Individual Priorities » Knowledge, Skills and Behaviors » Development plan » Reaching agreement » End-of-cycle review » Action taken » Training and development » Ongoing Feedback » Coaching » Interim reviews
- 11. Importance of performancemanagement • Improves performance • Helps in succession planning • Facilitates decision-making e.g. terminations • Useful for career development • Improve motivation and employee retention • Determines effectiveness of recruitment and selection • Performance related compensation
- 12. Meaning of performanceappraisal • The process through which an organisation measures how well an employee is doing his/her job • It is done periodically • Performance interview is the process of providing employees with information regarding their performance appraisal results. This can also be called giving performance feedback.
- 13. Importance of performanceappraisal • Determines compensation or rewards • Basis for staffing decisions e.g. demotion, retrenchment, promotion, transfer • Identification of training and development needs • Improves the performance • Career planning - it indicates an employees strengths and weaknesses • Succession planning – identify potential for promotion • Assess how effective recruitment and selection were • Motivate employees - need for achievement
- 14. Uses of PerformanceAppraisal
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- 16. Methods of performanceappraisal • Forced Distribution –the employees are placed in pre-determined performance categories e.g. in either top 20%, middle 60%, or bottom 20%.
- 17. Forced Distribution ona Bell-Shaped Curve
- 18. Methods of performance appraisal •Paired comparison method – every employee is compared with every other employee on a given trait and indicating who is the better than the other. • Then overall ranking of employees is done
- 19. Methods of performanceappraisal Alternate ranking method • Involves ranking employees from the best to the worst performer based on a set of traits • List all employees to be ranked • Then in a form, indicate who is the highest on the characteristics being measured and also the one who is lowest. • Then choose the next highest and the next lowest, alternating between highest and lowest until all employees have been ranked
- 20. Methods of performanceappraisal • Graphic Rating Scales – it lists traits that an ideal holder of the job is required to have, e.g. reliability, team work, communication, leadership, etc • There is a scale on which the traits are measured e.g. outstanding, average, below average. • The scores for all traits are summed up to get total score for employee
- 21. Methods of performanceappraisal • Critical Incidents – the employee’s performance is assessed based on recorded major incidents (both positive and negative incidents) of the employee’s behavior on the job • It may be used with a rating scale to enable comparison of employees performance
- 22. Methods of performanceappraisal • Behaviourally Anchored Rating Scales (BARS)– specific examples of good behavior are rated on a scale. Examples of poor performance may also be listed and rated.
- 23. Behaviorally-Anchored Rating Scale forCustomer Service Skills
- 24. Methods of performanceappraisal • Balanced score card – this is a tool of measuring performance by measuring performance in four aspects of a business: financial, customer focus, internal business processes and learning and growth. • Management by objectives – setting targets together with employees and later assessing performance based on attainment of those objectives, and giving feedback to employee
- 25. Who appraises theemployee? • Managers or immediate supervisor • Peer appraisal – these are fellow team members. • Upward appraisal – the junior employees assess their supervisor (upward feedback). • Self appraisal – self-assessment by the employee • Customer appraisal e.g. customer surveys, ‘mystery shopper’, etc • 360-degree feedback – this is a multi-rater method. What are its advantages and disadvantages?
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- 27. Errors in PerformanceAppraisal • Central tendency error i.e. the raters give mostly average scores • Strictness/leniency error – being very strict or lenient • Halo effect – rating employee high on one factor leads to the employee being rated highly on all other factors • Recency error- considering only recent performance • Bias – prejudice based on race, sex, due to stereotypes, misconceptions, favoritism • Similarity effect – favouring people who we perceive to be like us
- 29. For performance appraisalsto be effective • Record keeping throughout the period • Fairness and transparency in the evaluation • Evaluators should be skilled/trained • Expectations should be clearly defined and communicated • Effective communication and feedback between supervisors and the employees
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- 31. Managing Poor performance Toimprove poor performance, emphasize on: • Identify and agree on problem and reasons for it • Continual skills development • Monitor and give two-way feedback • Focus on goals/objectives/results • Facilitate employees- with resources, coaching • Agree on action to improve performance
- 32. Good vs BadPerformance Review Meeting Features of a good appraisal meeting • ? Features of a bad appraisal meeting • ?
- 33. 1. What arePerformance Improvement Plans (PIP)? 2. What are the components of a PIP?
- 34. 3. Discuss thecommon problems faced in performance management
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