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SEMINAR ON PERFORMANCE APPRAISAL

Performance appraisal is a method to evaluate an employee's job performance in terms of quality, quantity, cost, and time. It involves setting standards, collecting performance data, conducting appraisal interviews, setting future goals, and rewarding performance. There are traditional methods like essay, ranking, and checklists as well as modern methods like assessment centers, behaviorally anchored rating scales, and 360-degree feedback. An effective performance appraisal system should be simple, effective at improving performance, efficient to implement, and fair in its administration.

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INTRODUCTION • Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development
What is Performance Appraisal PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job.
PERFORMANCE APPRAISAL : Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
MeanIng Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
• P – purpose • E – empowerment • R – relationship • F – flexibility • O – optimal performance • R – recognition & rewards • M - morale
DEFINITION Performance appraisal • According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job."
defInItIons According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
WORK RELATED OBJECTIVES To provide a control for work done To improve efficiency To help in assigning work and plan future work assignment To carry out job evaluation
CAREER DEVELOPMENT OBJECTIVES To identify strong and weak points and encourage finding remedies for weak points through training To determine career potential To plan developmental( promotional or lateral) assignments To plan career goals
OBJECTIVES OF COMMUNICATION To provide adequat e feedbac k on perform ance To clearly establish goals To provide counseli ng and job satisfact ion To let employe es assess
ADMINISTRATIVE OBJECTIVES To serve as a basis for promotion or demotion To serve as a basis for allocating incentives To serve as a basis for determining transfers To serve as a basis for termination
CHARACTERISTICS Ongoing and continuous process Secure information Scientific and objective study It is a step by step process It examine the employee strengths and weaknesses
WHY CONDUCT A PERFORMANCE APPRAISAL/NEED OF PERFORMANCE APPRAISAL
Provide information about the performance ranks. Provide feedback about level of achievement and behaviour of the subordinate Provide information which helps to counsel the employees. Provide information to diagnose the deficiency of the employees
Provide training and development needs of the employees. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc Facilitate communication between employee and administraton
WHEN TO CONDUCT A PERFORMANCE APPRAISAL The performance review must occur atleast once in a year However, as a part of Performance Management, the performance review is a continuing, ongoing activity
PERSONS INVOLVED IN PERFORMANCE APPRAISAL
• The Appraisee
• The Appraiser
• HR Department
CONTENT OF PERFORMANCE MANAGEMENT
Regular ity of the Attenda nce Ability Initiativ e, Technic al skills Ability to grasp new things Area of interest. Job Knowle dge. Attitude .
Judgme ntal Skills Past Achieve ment Innovati veness Honesty and sincerit y Cost & Time conscio usness Area of improve ment Commu nication
BENEFITS OF PERFORMANCE APPRAISAL
Appraisals offer employees Direction Feedback Input Motivation
Benefit to the line/manager/supervisor/team leader Oppurtunities to • hear and exchange views and opinions away from the normal pressure of work • to identify any potential difficulties or weaknesses • An improved understanding of the resources available to plan for and set objectives for the next period
Contd… 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 and assessing potential Up-to-date information regarding the expectations and aspirations of employees Information on which to base decisions about promotions and motivation An opportunity to review succession planning
• Information about training needs which can act as a basis for developing training plans • Updating of employee records (achievements, new competencies, etc) • Career counseling • Communication of information
Important
STEPS IN PERFORMANCE APPRAISAL
Develop performa nce standards Setting goals and objectives Data collection Performa nce appraisal interview Future goals and objectives Follow up Rewardin g performa nce
A. DEVELOP THE STANDARDS FOR EVALUATION
Performance standards are • Based on the position, not the individual • Observable, specific indicators of success • Meaningful, reasonable and attainable • Describe “fully satisfactory” performance once 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 performance information Personal observati on Feedback Reports, document ation, correspon dence. Periodic discussio ns with employee
D. PERFORMANCE APPRAISAL INTERVIEW
Types of appraisal interview Appraisal interview Tell-and-sell method Tell-and- listen method Problem- solving method
Tell- and- Sell Interviews Purpose of this interview is • To let the employee to know how well he is doing. • To draw up a plan of improvement for him. • To gain the employees acceptance of the evaluation
Tell-and-Listen Interviews The objective of this interview is to communicate the evaluation to the employee and then listen sympathetically to his reactions. • Supervisor covers strengths/weaknesses for first half • Solicits employee’s feelings about comments • Deal with disagreement, non-defensively • Negotiate future concrete objectives
The Problem Solving Interview the aim is not appraisal but development of an employee • Discuss strengths &weaknesses since last review • Explore feelings of sub-ordinate • Listening, accepting &responding are essential • Stimulate growth (performance) job • Discuss problems, needs, innovations, satisfactions & dissatisfactions since last review • Listen & respond with goal of helping person
Contd… • Be ready to suggest specific developmental activities suitable to each employee’s needs. • Make sure that the session is truly a discussion. • List disagreements: if possible, disagreements should be resolved before the end of the interview. • Make certain that your employees fully understand your appraisal of their performance.
Guidelines for conducting the interview • Establish a friendly, helpful, purposeful tone at the outset of the discussion. Be at ease. • Ask for the subordinate’s opinion of his or her performance since the last appraisal. • Recognize the staff nurse’s accomplishments and contributions to the hospital.
Contd… • Discuss the future as well as the past. Plan with the employee specific changes in performance or specific developmental activities that will allow fuller use of potential. • End the discussion on a positive, future – improvement- oriented note. • Document the conclusions.
E. FUTURE GOALS AND OBJECTIVES • The employer should record specific goals, targets or benchmarks that the employee will attempt to achieve. • Both employer and employee should agree on the steps to be taken to achieve these targets, • Both should agree on how the employee’s progress towards these objectives will be measured and set a defined timeframe, even if this is simply the next performance appraisal
F. FOLLOW UP
G. THE PERFORMANCE EVALUATION REPORT Class specification and / or informal job description Job standards, procedures and regulations. Established goals, objectives and Knowledge and abilities to perform the job. Job relationships required for successful performance, i.e supervisors, co-workers, county employees and the public.
Contd… Quality of work, including the nature and consequences of errors made during the evaluation period. Production rate, if applicable. Commendations awarded relative to employee performance. Use of job skills and efforts to enhance skills. Ability to work with others. Attendance, use of sick leave, punctuality
Questions to consider when preparing to write the performance report • Did the employee meet or exceed quantity and quality standards? • Does the employee have the skills to perform the job? • Has the employee increased skill level and established value to the organization?
If corrective action was instituted due to errors and /or complaints that damaged the efficiency of organizational operations, was it effective? Has the employee demonstrated job related efficiency through special efforts and capabilities? Does the employee follow organizational rules and standards of the department? Does the employee utilize supervisory guidance?
Guidelines for the writing of the Employee Performance Report
• Establishing objectivity in written performance evaluations by avoiding vague subjective terminology. • Use specific job related terms and clearly define intent of comments. • Avoid the use of personal “traits” such as integrity, loyalty, honesty, initiative, etc. Measure employee performance against the job specifications
H. REWARDING PERFORMANCE Outstandi ng ( Level 5) Exceeds Expectatio ns (Level 4) Competen t (Level 3) •Minimall y Successful (Level 2) Unsatisfac tory (Level 1):
PROCESS OF PERFORMANCE APPRAISAL
Setting performance standard Communicatin g standard Measuring standards Comaparing standards Discussing results Taking corretive standards process
METHODS OF APPRAISING PERFORMANCE
Traditional methods 1. Paired comparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. Free essay method 7. Critical Incidents 8. Group Appraisal 9. Field Review Method 10.Confidential Report 11.Ranking Modern methods 1. Assessment Center 2. Appraisal by Results or Management by Objectives 3. Human Asset Accountin 4. Behaviorally Anchored Rating scales 5. 360 degree appraisal
Traditional methods of performance appraisal
1. Essay appraisal method • This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. • The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. • A major drawback of the method is the inseparability of the bias of the evaluator
2. Straight ranking method 1. This is one of the oldest and simplest techniques of performance appraisal. 2. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. 3. It is quite useful for a comparative evaluation.
3. Paired comparison • A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. • After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. Critical incidents methods • In this method of Performance appraisal the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. • It includes both negative and positive points • The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.
5. Field review • In this method, a senior member of the Human Resource department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. • A major drawback of this method is that it is a very time consuming method. • But this method helps to reduce the superiors’ personal bias.
6. Checklist method • The rater is given a checklist of the descriptions of the behaviour of the employees on job. • The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. Graphic rating scale • In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. • The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. • For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory
8. Forced Distribution • To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. • The rater chooses the appropriate fit for the categories on his own discretion
Modern methods of performance appraisal
Assessment centre • An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. • Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. • The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics
2. Behaviorally anchored rating scales • Is a relatively new technique which combines the graphic rating scale and critical incidents method. • It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad. • In this method, an employee’s actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS.
3. Human resource accounting method Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees.
The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
4. 360-Degree-performance - appraisal method self peer Top manage ment subordi nates custom ers
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job
360 degree appraisal has four integral components Self appraisal Superior’s appraisal Subordinate’s appraisal Peer appraisal.
5. “Management by Objectives‟ A process whereby the superior and subordinates of the organization jointly identify its common objectives, define each individual’s major areas of responsibility.
• With MBO, came the concept of SMART goals S M A R T Specific Measurable Achievable Realistic Time bound
ERRORS IN WRITING PERFORMANCE EVALUATIONS halo effect Horn effect pitchfork effect” or “ recency effect Comparing Favoritism Stereotyping Mirroring
EFFECTIVE MANAGEMENT OF PERFORMANCE APPRAISAL • The system should be simple, effective, efficient and administratively feasible. • The procedures and uses of the system should be understood and agreed on by line management and the employees being rated. • Factors to be rated should be measurable and agreed on by managers and subordinates.
• Raters should understand the purpose and nature of the performance review. • They should be taught to the use the system, observe, and write notes, including critical incident file, organize notes and write evaluations that include examples of evidence, edit their reports and conduct effective review interviews. • Raters should understand the meanings of the dimensions rated, including the dimensions’ relative weights. Managers are reported to be able to distinguish among only three levels of performance: poor, satisfactory, and outstanding.
• Criticism should promote warmth and the building of self esteem for both rate and rater. • The process should be organized and used to manage employees on a daily basis according to their needs to be coached. • Praise or suggestions for improvement should be done at the time of the event. • Standards of performance should be set and modified at the time of the event. • Performance standards should be valid, reliable and fair. • Managers should be rewarded for good performance evaluation skills.
OBSTACLES TO EFFECTIVE PERFORMANCE APPRAISAL
• Lack of support from top management • Resistance on the part of evaluator because: Performance appraisal demands too much of supervisors efforts in terms of time, paperwork, and periodic observation of subordinates’ performance. Supervisors do not fully understand the purposes and procedures of performance appraisal. Supervisors lack skills in appraisal techniques.
Overcoming these obstacles Appraisal should be based on standards Employee must know the standards in advance Employee must know the sources of data gathered for appraisal Employee should have input in to development of standards Appraiser should be someone who has observed employees work Appraiser should be someone who the employ trust and respects
Performance appraisal is not perceived as being productive. Evaluator biases and rating errors. Lack of clear, objective standards of performance. Failure to communicate purposes and Lack of suitable appraisal tool. Failure to police the appraisal procedure effectively.
Essentials of an effective appraisal system
PREPARATION
Employees: • Review performance • Think about new goals
Supervisors • Review performance • Complete written appraisal • Think about new goals • Schedule time and place
Start the Meeting Lay out agenda Talk about money Encourage input Give good news first
During the Meeting • Review performance: • Based on previous goals • Noting strengths and accomplishments • Identifying areas for improvement • Set goals: Based on company goals • Building on areas that need improvement
Presentation Tips • Focus on the professional. • Give objective examples. • Invite response. • Listen actively. • Create “we” mentality.
End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not met Confirm understanding
Continuous Feedback • Formal appraisals • Informal appraisals • Open communication
Recognize Good Performance Verbal Public Tangible Monetary
Identify Poor Performance Act early Take the right approach Deal with employee reaction Handle continued poor performance
Discipline Poor Performance
Handle Hard Cases Reviewing highly emotional employees Rating former peers
QUALITIES OF A GOOD APPRAISAL
Factual Whole Job Fair Whole Period no Surprises
Performance criteria for Executives
For middle level Managers Departmental performance Coordination among employees Optimal use of resources Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
For top managers Profitability and return on capital employed Contribution to community development Degree of upward communication from middle- level executives Degree of growth and expansion of enterprise. Extent of achievement of organizational goal
For supervisors Quality and quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period
Advantages Provide a record of performance over a period of time. Provide an opportunity for a manager to meet discuss performance. Provide the employee with their feedback about their performance Provide an opportunity for an employee to discuss issues and clarify expectations. Can be motivational with the support of a good reward and compensation
Disadvantages Very time consuming specially for manager If not done appropriately, can be a negative experience. If not done right it can be a complete waste of time Can be stressful for all involved. Subject to rater errors & bias.
Issues in appraisal system Whose performance? When to evaluate? Who are the raters? Formal and informal How to solve? Appraisal Design? What to evaluate? What methods?
ROLE OF ADMINISTRATOR IN PERFORMANCE APPRAISAL
Manage and supervis e Apprais e perfor mance Counsel and train employees Monitors Collect, interpret and evaluate Develop and implement Understa nd,interp ret and apply laws
ROLE OF THE NURSE MANAGE R Orientation Training Feedback Appraisal
discussion
Evidenced based practice
SEMINAR ON PERFORMANCE APPRAISAL
SEMINAR ON PERFORMANCE APPRAISAL

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SEMINAR ON PERFORMANCE APPRAISAL

  • 3.
    INTRODUCTION • Performance appraisal,also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development
  • 4.
    What is PerformanceAppraisal PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job.
  • 5.
    PERFORMANCE APPRAISAL : PerformanceAppraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
  • 6.
    MeanIng Performance appraisal isthe step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
  • 7.
    • P –purpose • E – empowerment • R – relationship • F – flexibility • O – optimal performance • R – recognition & rewards • M - morale
  • 8.
    DEFINITION Performance appraisal • Accordingto Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job."
  • 9.
    defInItIons According to Newstrom,“It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
  • 11.
    WORK RELATED OBJECTIVES Toprovide a control for work done To improve efficiency To help in assigning work and plan future work assignment To carry out job evaluation
  • 12.
    CAREER DEVELOPMENT OBJECTIVES To identifystrong and weak points and encourage finding remedies for weak points through training To determine career potential To plan developmental( promotional or lateral) assignments To plan career goals
  • 13.
  • 14.
    ADMINISTRATIVE OBJECTIVES To serveas a basis for promotion or demotion To serve as a basis for allocating incentives To serve as a basis for determining transfers To serve as a basis for termination
  • 15.
    CHARACTERISTICS Ongoing and continuous process Secure information Scientific and objective study It isa step by step process It examine the employee strengths and weaknesses
  • 16.
  • 17.
    Provide information aboutthe performance ranks. Provide feedback about level of achievement and behaviour of the subordinate Provide information which helps to counsel the employees. Provide information to diagnose the deficiency of the employees
  • 18.
    Provide training anddevelopment needs of the employees. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc Facilitate communication between employee and administraton
  • 19.
    WHEN TO CONDUCTA PERFORMANCE APPRAISAL The performance review must occur atleast once in a year However, as a part of Performance Management, the performance review is a continuing, ongoing activity
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
    Regular ity of the Attenda nce Ability Initiativ e, Technic al skills Ability tograsp new things Area of interest. Job Knowle dge. Attitude .
  • 26.
  • 27.
  • 28.
  • 29.
    Benefit to the line/manager/supervisor/teamleader Oppurtunities to • hear and exchange views and opinions away from the normal pressure of work • to identify any potential difficulties or weaknesses • An improved understanding of the resources available to plan for and set objectives for the next period
  • 30.
    Contd… to think aboutand clarity their own role to plan for achieving improved performance to plan for further delegation and coaching to motivate members of the team
  • 31.
    Benefits to theorganization
  • 32.
    A structured meansof identifying and assessing potential Up-to-date information regarding the expectations and aspirations of employees Information on which to base decisions about promotions and motivation An opportunity to review succession planning
  • 33.
    • Information abouttraining needs which can act as a basis for developing training plans • Updating of employee records (achievements, new competencies, etc) • Career counseling • Communication of information
  • 34.
  • 37.
  • 38.
  • 39.
    A. DEVELOP THESTANDARDS FOR EVALUATION
  • 40.
    Performance standards are •Based on the position, not the individual • Observable, specific indicators of success • Meaningful, reasonable and attainable • Describe “fully satisfactory” performance once trained • Expressed in terms of quantity, quality, timeliness, cost, safety or outcomes
  • 41.
  • 42.
    • Specific • Performanceoriented • Realistic • Observable
  • 43.
  • 44.
    Sources of performanceinformation Personal observati on Feedback Reports, document ation, correspon dence. Periodic discussio ns with employee
  • 45.
  • 46.
    Types of appraisalinterview Appraisal interview Tell-and-sell method Tell-and- listen method Problem- solving method
  • 47.
    Tell- and- SellInterviews Purpose of this interview is • To let the employee to know how well he is doing. • To draw up a plan of improvement for him. • To gain the employees acceptance of the evaluation
  • 48.
    Tell-and-Listen Interviews The objectiveof this interview is to communicate the evaluation to the employee and then listen sympathetically to his reactions. • Supervisor covers strengths/weaknesses for first half • Solicits employee’s feelings about comments • Deal with disagreement, non-defensively • Negotiate future concrete objectives
  • 49.
    The Problem SolvingInterview the aim is not appraisal but development of an employee • Discuss strengths &weaknesses since last review • Explore feelings of sub-ordinate • Listening, accepting &responding are essential • Stimulate growth (performance) job • Discuss problems, needs, innovations, satisfactions & dissatisfactions since last review • Listen & respond with goal of helping person
  • 50.
    Contd… • Be readyto suggest specific developmental activities suitable to each employee’s needs. • Make sure that the session is truly a discussion. • List disagreements: if possible, disagreements should be resolved before the end of the interview. • Make certain that your employees fully understand your appraisal of their performance.
  • 51.
    Guidelines for conductingthe interview • Establish a friendly, helpful, purposeful tone at the outset of the discussion. Be at ease. • Ask for the subordinate’s opinion of his or her performance since the last appraisal. • Recognize the staff nurse’s accomplishments and contributions to the hospital.
  • 52.
    Contd… • Discuss thefuture as well as the past. Plan with the employee specific changes in performance or specific developmental activities that will allow fuller use of potential. • End the discussion on a positive, future – improvement- oriented note. • Document the conclusions.
  • 53.
    E. FUTURE GOALSAND OBJECTIVES • The employer should record specific goals, targets or benchmarks that the employee will attempt to achieve. • Both employer and employee should agree on the steps to be taken to achieve these targets, • Both should agree on how the employee’s progress towards these objectives will be measured and set a defined timeframe, even if this is simply the next performance appraisal
  • 54.
  • 55.
    G. THE PERFORMANCE EVALUATIONREPORT Class specification and / or informal job description Job standards, procedures and regulations. Established goals, objectives and Knowledge and abilities to perform the job. Job relationships required for successful performance, i.e supervisors, co-workers, county employees and the public.
  • 56.
    Contd… Quality of work,including the nature and consequences of errors made during the evaluation period. Production rate, if applicable. Commendations awarded relative to employee performance. Use of job skills and efforts to enhance skills. Ability to work with others. Attendance, use of sick leave, punctuality
  • 57.
    Questions to considerwhen preparing to write the performance report • Did the employee meet or exceed quantity and quality standards? • Does the employee have the skills to perform the job? • Has the employee increased skill level and established value to the organization?
  • 58.
    If corrective actionwas instituted due to errors and /or complaints that damaged the efficiency of organizational operations, was it effective? Has the employee demonstrated job related efficiency through special efforts and capabilities? Does the employee follow organizational rules and standards of the department? Does the employee utilize supervisory guidance?
  • 59.
    Guidelines for thewriting of the Employee Performance Report
  • 60.
    • Establishing objectivityin written performance evaluations by avoiding vague subjective terminology. • Use specific job related terms and clearly define intent of comments. • Avoid the use of personal “traits” such as integrity, loyalty, honesty, initiative, etc. Measure employee performance against the job specifications
  • 61.
    H. REWARDING PERFORMANCE Outstandi ng( Level 5) Exceeds Expectatio ns (Level 4) Competen t (Level 3) •Minimall y Successful (Level 2) Unsatisfac tory (Level 1):
  • 62.
  • 63.
  • 64.
  • 65.
    Traditional methods 1. Pairedcomparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. Free essay method 7. Critical Incidents 8. Group Appraisal 9. Field Review Method 10.Confidential Report 11.Ranking Modern methods 1. Assessment Center 2. Appraisal by Results or Management by Objectives 3. Human Asset Accountin 4. Behaviorally Anchored Rating scales 5. 360 degree appraisal
  • 66.
    Traditional methods ofperformance appraisal
  • 67.
    1. Essay appraisalmethod • This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. • The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. • A major drawback of the method is the inseparability of the bias of the evaluator
  • 68.
    2. Straight rankingmethod 1. This is one of the oldest and simplest techniques of performance appraisal. 2. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. 3. It is quite useful for a comparative evaluation.
  • 69.
    3. Paired comparison •A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. • After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
  • 70.
    4. Critical incidentsmethods • In this method of Performance appraisal the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. • It includes both negative and positive points • The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.
  • 71.
    5. Field review •In this method, a senior member of the Human Resource department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. • A major drawback of this method is that it is a very time consuming method. • But this method helps to reduce the superiors’ personal bias.
  • 72.
    6. Checklist method •The rater is given a checklist of the descriptions of the behaviour of the employees on job. • The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
  • 73.
    7. Graphic ratingscale • In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. • The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. • For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory
  • 74.
    8. Forced Distribution •To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. • The rater chooses the appropriate fit for the categories on his own discretion
  • 75.
    Modern methods ofperformance appraisal
  • 76.
    Assessment centre • Anassessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. • Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. • The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics
  • 77.
    2. Behaviorally anchoredrating scales • Is a relatively new technique which combines the graphic rating scale and critical incidents method. • It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad. • In this method, an employee’s actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS.
  • 78.
    3. Human resourceaccounting method Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees.
  • 79.
    The cost ofemployees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
  • 80.
    4. 360-Degree-performance - appraisalmethod self peer Top manage ment subordi nates custom ers
  • 81.
    360 degree feedback,also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job
  • 82.
    360 degree appraisalhas four integral components Self appraisal Superior’s appraisal Subordinate’s appraisal Peer appraisal.
  • 83.
    5. “Management byObjectives‟ A process whereby the superior and subordinates of the organization jointly identify its common objectives, define each individual’s major areas of responsibility.
  • 84.
    • With MBO,came the concept of SMART goals S M A R T Specific Measurable Achievable Realistic Time bound
  • 85.
    ERRORS IN WRITING PERFORMANCEEVALUATIONS halo effect Horn effect pitchfork effect” or “ recency effect Comparing Favoritism Stereotyping Mirroring
  • 86.
    EFFECTIVE MANAGEMENT OF PERFORMANCEAPPRAISAL • The system should be simple, effective, efficient and administratively feasible. • The procedures and uses of the system should be understood and agreed on by line management and the employees being rated. • Factors to be rated should be measurable and agreed on by managers and subordinates.
  • 87.
    • Raters shouldunderstand the purpose and nature of the performance review. • They should be taught to the use the system, observe, and write notes, including critical incident file, organize notes and write evaluations that include examples of evidence, edit their reports and conduct effective review interviews. • Raters should understand the meanings of the dimensions rated, including the dimensions’ relative weights. Managers are reported to be able to distinguish among only three levels of performance: poor, satisfactory, and outstanding.
  • 88.
    • Criticism shouldpromote warmth and the building of self esteem for both rate and rater. • The process should be organized and used to manage employees on a daily basis according to their needs to be coached. • Praise or suggestions for improvement should be done at the time of the event. • Standards of performance should be set and modified at the time of the event. • Performance standards should be valid, reliable and fair. • Managers should be rewarded for good performance evaluation skills.
  • 89.
  • 90.
    • Lack ofsupport from top management • Resistance on the part of evaluator because: Performance appraisal demands too much of supervisors efforts in terms of time, paperwork, and periodic observation of subordinates’ performance. Supervisors do not fully understand the purposes and procedures of performance appraisal. Supervisors lack skills in appraisal techniques.
  • 91.
    Overcoming these obstacles Appraisalshould be based on standards Employee must know the standards in advance Employee must know the sources of data gathered for appraisal Employee should have input in to development of standards Appraiser should be someone who has observed employees work Appraiser should be someone who the employ trust and respects
  • 92.
    Performance appraisal isnot perceived as being productive. Evaluator biases and rating errors. Lack of clear, objective standards of performance. Failure to communicate purposes and Lack of suitable appraisal tool. Failure to police the appraisal procedure effectively.
  • 93.
    Essentials of aneffective appraisal system
  • 95.
  • 96.
  • 97.
    Supervisors • Review performance •Complete written appraisal • Think about new goals • Schedule time and place
  • 98.
    Start the Meeting Layout agenda Talk about money Encourage input Give good news first
  • 99.
    During the Meeting •Review performance: • Based on previous goals • Noting strengths and accomplishments • Identifying areas for improvement • Set goals: Based on company goals • Building on areas that need improvement
  • 100.
    Presentation Tips • Focuson the professional. • Give objective examples. • Invite response. • Listen actively. • Create “we” mentality.
  • 101.
    End the Meeting Encouragegood performance Lay out action plan Communicate outcome of goals not met Confirm understanding
  • 102.
    Continuous Feedback • Formalappraisals • Informal appraisals • Open communication
  • 103.
  • 104.
    Identify Poor Performance Actearly Take the right approach Deal with employee reaction Handle continued poor performance
  • 105.
  • 106.
  • 107.
    QUALITIES OF AGOOD APPRAISAL
  • 108.
  • 109.
  • 110.
    For middle levelManagers Departmental performance Coordination among employees Optimal use of resources Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
  • 111.
    For top managers Profitabilityand return on capital employed Contribution to community development Degree of upward communication from middle- level executives Degree of growth and expansion of enterprise. Extent of achievement of organizational goal
  • 112.
    For supervisors Quality andquantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period
  • 113.
    Advantages Provide a recordof performance over a period of time. Provide an opportunity for a manager to meet discuss performance. Provide the employee with their feedback about their performance Provide an opportunity for an employee to discuss issues and clarify expectations. Can be motivational with the support of a good reward and compensation
  • 114.
    Disadvantages Very time consumingspecially for manager If not done appropriately, can be a negative experience. If not done right it can be a complete waste of time Can be stressful for all involved. Subject to rater errors & bias.
  • 115.
    Issues in appraisal system Whose performance? When to evaluate? Whoare the raters? Formal and informal How to solve? Appraisal Design? What to evaluate? What methods?
  • 116.
    ROLE OF ADMINISTRATOR INPERFORMANCE APPRAISAL
  • 117.
  • 118.
  • 120.
  • 121.