Performance Appraisal


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Performance Appraisal

  1. 1. PerformanceAppraisal
  2. 2. Performance Appraisal :Performance Appraisal (PA) refers to allthose procedures that are used toevaluate the personality, performance,potential, of its group members
  3. 3. Relationship between jab analysisand performance appraisal:Job analysis performance performance standards appraisal Translate jobDescribes work Into levels of Describes the& Personnel To acceptable Job relevantRequirement Or unacceptable strengths and performance weakness ofOf a particular Each individualjob
  4. 4. Question arises? Why do we measure performance? Effective performance appraisal systems How do we measure performance?
  5. 5. Characteristics It is a step by step process It examine the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees
  6. 6. Needs and Objectives: Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management
  7. 7. Appraisal Benefits (cont.)  Appraisals offer employees:  Direction  Feedback  Input  Motivation
  8. 8. Appraisal Benefits Appraisals offer the company:  Documentation  Employee Development  Feedback  Legalprotection  Motivation system
  9. 9. Why Appraisals Are Important•Recognize accomplishments•Guide progress•Improve performance
  10. 10. Why Important (cont.) Review performance Set goals Identify problems Discuss career advancement
  11. 11. Steps in performance appraisal Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
  12. 12. Process of PA Setting performanceTaking corrective standards Communicating standards standards Discussing Measuring results standards Comparing standards
  13. 13. Issues in appraisal system Formal and informal What methods? Whose performance?When to evaluate? Appraisal Design? Who are the raters? What to evaluate? What problems? How to solve?
  14. 14. What to evaluate? (Philip Model) H Problem stars childrenPotential Social Planned separation citizen L L Performance H
  15. 15. How PA contribute to firm’s competitive advantages Improving performance Making correct Values and behavior decision Competitive advantageMinimizing dissatisfaction Ensuring legalAnd turnover competence
  16. 16. Problems in performance appraisal 1. Errors In rating  Halo effects  Stereotyping  Central tendency  Constant error  Personal bias  Spill over effect
  17. 17. Problems in performance appraisal(Cont’d)2. Incompetence3. Negative approach4. Multiple objectives5. Resistance6. Lack of knowledge
  18. 18. Essentials of an effective appraisal system  Mutual trust  Clear objectives  Standardizations  Training  Job relatedness  Documentation  Feedback and participation  Individual differences  Post appraisal review  Review and appeal
  19. 19. Appraisals and Discrimination Title VII ADA Other fair employment Laws
  20. 20. Discrimination (cont.)  Failure to communicate standards  Failure to give timely feedback  Failure to allow employees to correct performance  Inconsistency in measuring performance  Failure to document performance objectively
  21. 21. Appraisal Forms Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals
  22. 22. Measure Performance Measurement systems need to be: Specific Fair Consistent Clear Useful
  23. 23. Measure Performance (cont.)Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented
  24. 24. Document Performance Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis
  25. 25. Set Goals…. Based on job requirements Realistic Measurable Observable Challenging Prioritized
  26. 26. Employee Input Employees take an active role:  Setting goals  Designing action plans  Identifying strengths and weaknesses  Employees participate in the PA meeting
  27. 27. PreparationEmployees: Review performance Think about new goals
  28. 28. Preparation (cont.)Supervisors: Review performance Complete written appraisal Think about new goals Schedule time and place
  29. 29. Start the Meeting Lay out agenda Talk about money Encourage input Give good news first
  30. 30. During the Meeting Review performance:  Based on previous goals  Noting strengths and accomplishments  Identifying areas for improvement
  31. 31. Presentation Tips  Focus on the professional  Give objective examples  Invite response  Listen actively  Create “we” mentality
  32. 32. During the Meeting (cont.) Set goals: Based on company goals Building on areas that need improvement
  33. 33. End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not met Confirm understanding
  34. 34. Continuous Feedback  Formal appraisals  Informal appraisals  Open communication
  35. 35. Recognize Good Performance Verbal Public Tangible Monetary
  36. 36. Identify Poor Performance Act early Take the right approach Deal with employee reaction Handle continued poor performance
  37. 37. Discipline Poor Performance Recognize problems Talk with employee Follow company policy
  38. 38. Handle Hard Cases Reviewing highly emotional employees Rating former peers
  39. 39. Key Points to Remember You must conduct objective appraisals on a scheduled basis. Appraisals tell employees how they’re doing and how they can improve. Appraisals help create a system of motivation and rewards based on performance.
  40. 40. Performance Appraisal Methods Individual Evaluation Methods  Confidential report  Essay evaluation  Critical incidents  Checklists  Graphic rating scale  Behaviorally anchored rating scale  MBO
  41. 41. Critical Incident methodEx: A fire, sudden breakdown, accidentWorkers reaction scaleA informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1
  42. 42. Checklist method •Simple checklist method •Weighted checklist method •Forced choice methodSimple checklist method:Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N
  43. 43. Weighted checklist method weights performance rating (scale 1 to 5 )Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0
  44. 44. Forced choice methodCriteria Rating1.Regularity on the job Most Least •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
  45. 45. Graphic Rating Scale• Continuous Rating Scale• Discontinuous Rating ScaleEmployee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------ Exc. Good Acceptable Fair Poor 5 4 3 2 1 _DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale
  46. 46. Indifferent EnthusiasticAttitude No Interested Very Interest enthusiastic Discontinuous Rating Scale
  47. 47. BARS( behaviorally Anchored rating scale) Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument
  48. 48. MBO Process Set organizational goals Defining performance target Performance review feedback
  49. 49. Performance Appraisal Methods  Group Appraisal  Ranking  Paired comparison  Forced distribution  Performance tests Field review technique
  50. 50. Ranking method Employee Rank A 2 B 1 C 3 D 5 E 4
  51. 51. Paired comparison method A B C D E Final Rank A - - - + + 3 B + - - + + 2 C + + - + + 1 D - - - - + 4 E - - - - - 5 No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
  52. 52. Forced Distribution methodNo.ofemployees 10% 20% 40% 20% 10% poor Below average good Excellent average Force distribution curve
  53. 53. Field review methodPerformance subordinate peers superior customerDimensionLeadership ^ ^Communication ^ ^Interpersonal skills ^ ^Decision making ^ ^ ^Technical skills ^ ^ ^Motivation ^ ^ ^
  54. 54. Performance criteria for executives For top managers  Return on capital employed  Contribution to community development  Degree of upward communication from middle-level executives  Degree of growth and expansion of enterprise.
  55. 55. For middle level managers Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
  56. 56. 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