What does it mean?
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative & qualitative aspects of job performance. A process of systematically evaluating performance and
providing feedback upon which performance adjustments can be made.
Performance here refers to the degree of accomplishments of the tasks that make up an individual’s job Often the term is confused with effort. But performance is always measured in terms of results not efforts.
Functions of performance appraisal. Define the specific job criteria against which performance will be measured. Measure past job performance accurately. Justify rewards, thereby differentiating between high and low performance. Define ratee’s needed development experiences.
Purposes of performance appraisal. The four functions describe two general purposes of good
performance appraisal. Evaluation. Feedback and development.
Evaluative decisions. Concerned with issues regarding:
Promotions Transfers. Terminations. Salary increases.
When these issues are decided on the basis of performance, a
performance appraisal system is needed.
Feedback and development
decisions. Letting ratees know where they stand in
terms of expectations and performance objectives. Feedback should involve a detailed
discussion of the ratee’s strengths and weaknesses. Feedback can be used as a basis for
coaching and training by the manager.
Who does the performance appraisal? Ratee’s immediate superior. Ratee’s peers. Ratee’s subordinates. 360-degree evaluation.
Immediate supervisor Subordinates Peers Rationale for evaluations conducted by team members Self-appraisal Customer appraisal
Period Prepared at specific intervals Usually annually or semiannually Period may begin with employee’s date of hire All employees may be evaluated at same time
Criteria Traits Behaviors Competencies Goal
Achievement Improvement Potential
Difficulties in Performance Management Systems
Focus on the individual: Discussions of performance may elicit strong emotions and may generate conflicts when subordinates and supervisors do not agree.
Difficulties in Performance Management Systems
Focus on the process: Company policies and procedures may present barriers to a properly functioning appraisal process. Additionally, appraisers may be poorly trained.
The Performance Appraisal Process External Environment Internal Environment Plan the Performance Identify Performance Goals Communicate Goals Establish Performance Criteria Determine: Responsibility for Appraisal Appraisal Period Appraisal Method(s) Computer Software
Examine Work Performed Appraise the Results Conduct Appraisal Interview Take corrective action if necessary
Discuss Goals for Next Period
Anticipate and Consider Problems in PA Effective PA Systems
Management Support Coaching and T&D
The Appraisal Process
Establishment of performance standards
Derived from company’s strategic goals. Based on job analysis and job description.
Communication of performance standards to employee.
Trends in performance appraisal Item
Former Emphasis
Terminolo gy
Merit rating, Performance evaluation control Purpose Determine & the basis for wage increase, transfer, promotion, etc. Application layoff Four hourly paid/causal/temporary workers Factor Heavy emphasis on Rates personal traits Appraisers
Only supervisor
Present Emphasis Employee appraisal/ Performance appraisal Employee development, team building For technical, professional, and managerial employees Emphasis on results, accomplishment, performance Supervisor, subordinates, customers and
The Appraisal Process
Measurement of performance using information from:
personal observation statistical reports oral reports written reports
Comparison of actual performance with standards.
Managerial ethics A Manager Should Appraise on the basis of representative, sufficient, and relevant information Be honest, in assessing all the facts he has obtained Make it crystal-clear that this is only your personal opinion of the facts that can be dissemble, and as you perceive them
A Manager Should Not Appraise without knowing why the appraisal is needed Write one thing and say the sub-ordinates another Be biased in statements, presentation of information
The Appraisal Process
Discussion of appraisal with employee. Identification of corrective action where necessary.
Immediate action deals with symptoms. Basic corrective action deals with causes.
Uses of Performance Appraisal
Human resource planning Recruitment and selection Training and development Career planning and development Compensation programs Internal employee relations Assessment of employee potential
Performance Appraisal Methods
2 Part of the session nd
View & analyze the Performance Appraisal Form of Abdul Momen Ltd. (Igloo Ice Cream Plant)
Cont. Identify the problems or weak points of the PA form The performance appraisal form of Abdul Momen Limited is short and simple. Most of the indicators are subjective. The rating scales are from A to E. Which is not easy for calculation. The form does not include important indicators like:
Communication Skill Planning and organizing Results Problem solving Management Effectiveness Objectives for the next year
The appraisal is done by the immediate supervisor and the Department Head. No peers or subordinates
Recommendations
The appraisal should be done by him or herself, supervisor, subordinate or one employee of his/her own department, and two employees of other department allowing the employee 360° appraisal. Rating from 0 to 5 should be used instead of A to E for ease of calculations. Some objective (measurable) indicators should be included. The next years objectives should be included in the form to use as the bench-marks against which the performance should be evaluated. Other important indicators like communications skills, planning and organizing skills, management skills should be included. For every evaluation the appraiser should be able to give comments (if possible) to give a basis of the rating. There should be some flexibility for including or deducting any factors if necessary. Calculation should be weighted average method.
3rd Part of the session Development of a new Form
For your information: We try to develop a fully new concept in Performance Appraisal system. Let us discuss about that. There are three part of form-A, B, C Now let us see the Part-A
3rd Part: Cont.
Let us see the Part-B
3rd Part: Cont.
Let us see the Part-C
Discussion on new concept Let us see why this method is considered as something new & why it should be followed? CGPA Method
In other method there are 100 or 200 fixed marks. So if any criteria will not match with someone’s working environment than he or she will be miss evaluated. Flexibility to include or deduct any factor Always Grade Point is same: 5 Scale, but no chance for miss evaluation as it is calculated on average.
Single type of form can be used for
Discussion on new concept
Form A contains all the factor heading, but the rating method is overall, because this is an easy & widely used ways for judgment But as there is another form B in which the every segment of each factors are considered, no chance for miss measure or bias ness Calculation of average ensure measurement from two angels (over all & specific) Weighted average method ensures the evaluation more specific & justified Form B is not filled by peers as they may not know about the subhead of an
Discussion on new concept
50% weight is reserved for the annual objective as he or she is highly responsible for that Other 50% weight is distributed according to the job description. This indicates that the weight is not fixed for the PA. and this is changeable according to job nature There is some flexibility to HR department as there are two form-A & B. They can use only A or B if the purpose allows & time is short. We highly emphasis on Annual target so that every employee will also emphasis to perform their annual target smoothly. There is also previous year performance point on the indicator, so that every body can compare employee’s performance easily
4th & the last Part: Conclusion
We concentrated our best to give the highest effort for preparing an easily understandable, well accepted, useable for every purpose & bias less performance appraisal form. But there may be some error, so we request all of you to identify & evaluate the error & suggest us to recover that error as well as to make it more effective It will be highly appreciated if you send your valuable recommendations through the following email address:
[email protected]
Conclusion Cont.
At last we expect cooperation of our honorable instructor and of all the participants for submitting this new concept to BSHRM for the nation wide as well as world wide acceptance. We are grateful for your participation with us.
Vote of Thanks
Thanks a lot to everybody