Performance Appraisal

Aggarwal

Sukriti MBA (HR) 2008055

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System of review and

evaluation of job performance Assesses accomplishments and evolves plans for development 2

Process that significantly affects

organizational success Managers and employees work together to set expectations, review results and reward performance.

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Performance

appraisal process cuts into manager’s time Experience can be unpleasant when employee has not performed well 4

Human resource planning Recruitment and selection Training and development Career planning and development Compensation programs Internal employee relations Assessment of employee potential

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External:

Legislation requiring

nondiscriminatory appraisal systems Labor unions Factors within the internal

environment, such as type of corporate culture

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Traits Behaviors Competencies Goal Achievement Improvement

Potential 8

Immediate supervisor Subordinates Peers Rationale for evaluations conducted by

team members Self-appraisal Customer appraisal

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360-Degree

Forced Distribution

Valuation Rating Scales Critical Incidents Essay Work Standards Ranking Paired Comparisons

Behaviorally

Anchored Rating Scales (BARS) Result-Based Systems Assessment Centers

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Multi-rater evaluation Input from multiple levels with firm and

external sources Focuses on skills needed across organizational boundaries More objective measure of performance Process more legally defensible

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Rates according to

defined factors Judgments are recorded on a scale Many employees are evaluated quickly 12

Written records of highly

favorable and unfavorable work actions Appraisal more likely to cover entire evaluation period Does not focus on last few weeks or months 13

Brief narrative describing

performance Tends to focus on behavior Depends heavily on evaluator's writing ability Comparing essay evaluations might be difficult

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Compares performance to

predetermined standard Standards - normal output of average worker operating at normal pace Time study and work sampling used Workers need to know how standards were set

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All employees from group

ranked in order of overall performance Comparison is based on single criterion, such as overall performance

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Variation of ranking

method Compares performance of each employee with every other employee in the group 17

Rater assigns individual in

work group to a limited number of categories similar to a normal distribution Assumes all groups of employees have the same distribution 18

Combines traditional rating

scales and critical incidents methods Job behaviors derived from critical incidents described more objectively

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Manager and

subordinate agree on objectives for next appraisal Evaluation based on how well objectives accomplished 20

Adjunct to appraisal

system Predict employee potential for advancement

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Available in

recording appraisal data Reduces required paperwork

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Lack of objectivity Halo error Leniency/strictness Central tendency Recent behavior bias Personal bias Manipulating the evaluation

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Job-related criteria Performance expectations Standardization Trained appraisers Continuous open communication Performance reviews

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Create a culture of excellence that

inspires every employee to improve Align organizational objectives to individual aspirations Clear growth paths for talented individuals Provide new challenges Empower employees to make decisions without the fear of failing Embed teamwork in all operational process 25

Thanks

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