Performance Apprasial Ppt

Performance Appraisal

Perf orm anc e Appr ai sa l 

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the

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personality

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performance

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potential of its group members

Objec tive s of P erf orm ance Appr ai sa l Provide a basis for promotion/ transfer/ termination: Identify those employees who deserve promotion Or those who require lateral shift (transfer) or termination PA is used for career planning

Objec tive s of P erf orm ance Appr ai sa l •Enhance employees’ effectiveness by helping to identify their strengths and weaknesses and •Inform them about expected levels of performance • If employees understand their roles well, they are likely to be more effective on the job

Objec tive s of P erf orm ance Appr ai sa l

Identify training and development needs: Identifying training and development needs of employees is necessary to prepare them for meeting challenges in their current and future employment

Objec tive s of P erf orm ance Appr ai sa l

Aid in designing training and development programs: Identifying skills required to be developed would help in tailor- making training and development programs

Objec tive s of P erf orm ance Appr ai sa l

Remove work alienation: Counseling Employees corrects misconceptions which might result in work alienation

Objec tive s of P erf orm ance Appr ai sa l

Remove discontent: Identifying and removing factors responsible for workers’ discontent would motivate them for better work performance

Objec tive s of P erf orm ance Appr ai sa l

Develop inter-personal relationships: Relations between superior - subordinate can be improved through realization that each is dependent on the other for better performance and success

Objec tive s of P erf orm ance Appr ai sa l

Aid wage administration: Performance appraisal can help in development of scientific basis for reward allocation, wage fixation, incentives Improve communication: Performance appraisal serves as a mechanism for communication between superiors and subordinates

Pr oc ess of Perf orm ance Appr ai sa l

Establish Performance Standards ≈Performance standards serve as benchmarks against which performance is measured ≈Standards should relate to the desired results of each job

Pr oc ess of Perf orm ance Appr ai sa l Communicate the Standards

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Performance appraisal involves at least two parties, the appraiser who does the appraisal and the appraisee whose performance is being evaluated

Pr oc ess of Perf orm ance Appr ai sa l

Communicate the Standards ✠

The appraiser should prepare job descriptions clearly; help

appraisee set his goals and targets; analyse results objectively; offer coaching and guidance to appraisee whenever required and reward good results ✠

The appraisee should be very clear about what he is doing and

Pr oc ess of Perf orm ance Appr ai sa l

Measure Actual Performance ≈

Performance measures, to be helpful must be easy to use, reliable and must report on the critical behaviors that determine performance

Meas ure A ctual Pe rfo rm ance

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Performance measures may be objective or subjective

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Objective performance measures are indications of job performance that can be verified by others and are usually quantitative

Meas ure A ctual Pe rfo rm ance

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Subjective performance measures are ratings that are based on the personal standards or opinions of those doing the evaluation and are not verifiable by others

Co mpa re Ac tua l pe rform anc e with St anda rds and Dis cus s t he Appr ais al

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Actual performance may be better than expected and sometimes it may go off the track

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Whatever be the consequences, there is a way to communicate and discuss the final outcome

Ta king Cor rec ti ve Actio n

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Corrective action is of two types

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One puts out the fires immediately

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Other strikes at the root of the problem permanently

Pe rfo rm anc e Cr it eria 

In order to be effective, the criteria for performance appraisal should be genuinely related to success / failure in the job and should be amenable to objective judgement

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MBO is an example of performance-based appraisal approach that involves setting objectives and comparing performance against those objectives

Pe rfo rm anc e Cr it eria

Objectives give greater freedom to both management and the employees in deciding how performance is to be measured

Bene fit s of Perfo rma nc e Appra is al For the appraisee

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Better understanding of his role in the organization— what is expected and what needs to be done to meet those expectations

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Clear understanding of his strengths and weaknesses to develop himself into a better performer in future

For the appraisee 

Increased motivation, job satisfaction, and selfesteem

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Opportunity to discuss work problems and how they can be overcome

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Opportunity to discuss aspirations and any guidance, support or training needed to fulfil those aspirations

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Improved working relationships with supervisors

Bene fit s of Perfo rma nc e Appra is al For the Management 

Identification of performers and non-performers and their development towards better performance

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Opportunity to prepare employees for assuming higher responsibilities

For the Ma nagement

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Opportunity to improve communication between the employees and management

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Identification of training and development needs

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Generation of ideas for improvements

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Better identification of potential and formulation of career plans

Bene fit s of Perfo rma nc e Appra is al For the Organization 

Improved performance throughout the organization

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Creation of a culture of continuous improvement and success

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Conveying the message that people are valued

Pe rfo rm ance App rais al - Indi vidual Eval uatio n M ethod s 

Con fi dential re port

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Ess ay evaluati on

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Cri ti cal incidents

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Ch eck li sts

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Grap hi c r ati ng scale

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Behaviora lly anch ored ratin g sc al e

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Force d choi ce metho d

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MBO

Perf or manc e A ppr ai sa l - Mult ipl e Pers on Eval uatio n M ethod s

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Ran ki ng

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Pa ired comp ari son

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Force d distrib ution

Othe r metho ds 

Pe rf orm ance tes ts

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Field rev iew tec hniq ue

Conf iden tia l Re po rt

Descriptive report 

Prepared at the end of the year

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Prepared by the employee’s immediate supervisor

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The report highlights the strengths and weaknesses of employees

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Prepared in Government organizations

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Does not offer any feedback to the employee

Ess ay Eva lua tio n 

Th e ra ter is ask ed to exp ress t he str ong as wel l as weak po in ts of emp lo yee ’s beh avi or

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Th e ra ter co nsi de rs th e empl oyee ’s : 

Job kn ow ledg e and p oten tial

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Understa ndin g of comp any’ s pr ogr ams, p ol ici es, ob jec ti ves etc

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Rel ati on with co-work ers an d sup ervi sors

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Plan ni ng , org ani zi ng and contr ollin g abil ity

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Atti tud e and p ercepti on

Ess ay Eva lua tio n

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Thi s method h as t he f ollowin g li mi ta tions : 

Hig hly subject ive

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Sup erv is or may wri te bias ed es say

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Dif fi cu lt to fi nd eff ecti ve wri ters

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A busy app rai ser m ay wri te th e es say h ur ri edly withou t as ses sing prop erl y the actual p erf ormance o f the work er

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If th e ap pr aiser ta kes a lon g time it bec ome s uneconomi ca l fr om the vi ew poi nt of the fi rm

Cri ti cal Inc id ent T echnique

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Manager prepares lists of statements of very effective and ineffective behavior of an employee

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These critical incidents represent the outstanding or poor behavior of the employees

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The manager periodically records critical incidents of employee’s behavior

Crit ic al Inc ident Technique Example: 

July 20 - Sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers’ problem

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July 20 - The sales assistant stayed 45 minutes beyond his break during the busiest part of the day. He failed to answer store manager’s call thrice. He is lazy, negligent, stubborn and uninterested in work

Crit ic al Inc ident Technique Limi tat io n o f thi s tech niqu e are:

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Negati ve i ncid ents may be more n oticea ble th an pos itive inci den ts .

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Sup ervi sors have a tend ency to unl oad a se ri es of comp lai nts abou t in cid ents .

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Res ults i n very cl ose supervi sion which may not b e l iked by the employ ee.

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The re cord ing of i ncidents may be a chore for th e man ager concern ed who ma y be too bus y or for get to do it.

Che ckl is t

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A checklist is a set of objectives or descriptive statements about the employee and his behavior.

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Under weighted checklist, value of each question may be weighted.

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Example:

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Is the employee really interested in the task assigned? Yes / No

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Is he respected by his colleagues? Yes / No

Graphic Rat ing Sc ale 

A form is used to evaluate the performance of the employees

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A variety of traits may be used in this device, the most common being quality and quantity of work

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Easy to understand and use.

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Permits statistical tabulation of scores of employees

Behavi or ally Anc hored Ra ting Sc al e Co mbi nat io n of rat in g scal e and cr it ical incid en ce 

Steps: 

Col lect criti ca l in cid ents

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Identif y perf ormance d imens ion s

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Reclas sification of inci den ts

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Ass ig nin g sc al e values to in cid ent s

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Prod uci ng th e fin al ins tru men t

Forc ed Cho ic e Method

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This method uses several sets of paired phrases, two of which may be positive and two negative

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The rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker

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Favorable qualities earn plus credit and unfavorable ones earn the reverse

Mana ge ment by Objec tives (MBO) 

MBO emphasizes collectively set goals that are tangible, verifiable, and measurable

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Focuses attention on goals rather than on methods

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Concentrates on Key Result Areas (KRA)

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Systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals

Key El ement s Of MB O 

Arranging organizational goals in a means-ends chain

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Engaging in joint goal setting 

This process has the following steps: 

Identify KRAs

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Define expected results

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Assign specific responsibilities to employees

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Define authority and responsibility relationship

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Conducting periodic progress review

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Conducting annual performance review

Mult ip le Pers on E va luat ion Met hods

Ranking method 

The evaluator rates the employee from highest to lowest on some overall criteria

Paired comparison method 

Each worker is compared with all other employees in a group

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For several traits paired comparisons are made, tabulated and then rank is assigned to each worker

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This method is not applicable when the group is large

Forc ed Dis tri buti on Methods 

The rater is asked to appraise the employee according to predetermined distribution scale.

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Two criteria used for rating are: job performance and promotability.

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A five point performance scale is also used without mentioning any descriptive statements.

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The worker is placed between two extremes of “good” and “bad” performance.

Group Appra is al

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Emp loye e is ap pr aise d by a gr oup of app rai ser s.

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Th e gr oup co ns ist s o f 

Immed iate sup ervi sor of the emp loyee

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Other superv isors who hav e clos e contact wi th th e emp loy ee’s work.

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Ma nager or hea d of th e dep artments .

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Con sultan ts o r C li ents

Field Review Tec hn iqu e

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The appraiser goes to the field and obtains the information about work performance of the employee by way of questioning the said individual, his peer group, and his superiors

360 o Appr ais al Sys tem 

It is a systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders

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Data is gathered and fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately behavior

Appra is al Intervi ew and Fee dba ck - Le t the Empl oy ee Know Where He St ands 

To help employees do a better job by clarifying what is expected of them

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To plan opportunities for development and growth

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To strengthen the superior-subordinate working relationship by developing mutual agreement of goals

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To provide an opportunity for employees to express themselves on performance related issues