HRM QUESTION “Performance appraisal should be multifaceted. Supervisors should evaluate their employees and employees should be able to evaluate their supervisors and customers should eval…Full description
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Performance Appraisal
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Performance Appraisal
Performance Appraisal : Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
Relationship between jab analysis and performance appraisal: Job analysis
Describes work & Personnel Requirement Of a particular job
performance standards Translate job Into levels of To acceptable Or unacceptable performance
performance appraisal Describes the Job relevant strengths and weakness of Each individual
Question arises?
Why do we measure performance? Effective performance appraisal systems How do we measure performance?
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
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
Review performance Set goals Identify problems Discuss career advancement
Steps in performance appraisal Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
Process of PA Taking corrective standards
Setting performance standards
Discussing results
Communicating standards
Measuring standards Comparing standards
Issues in appraisal system Formal and informal What methods?
Whose performance?
When to evaluate? Appraisal Design?
Who are the raters?
What problems?
What to evaluate? How to solve?
What to evaluate? (Philip Model) H Potential L L
Problem children
stars
Planned separation
Social citizen
Performance
H
How PA contribute to firm’s competitive advantages Improving performance Values and behavior
Making correct decision
Competitive advantage Minimizing dissatisfaction And turnover
Ensuring legal competence
Problems in performance appraisal 1.
Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
Problems in performance appraisal (Cont’d) 1. 2. 3. 4. 5.
Incompetence Negative approach Multiple objectives Resistance Lack of knowledge
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
Appraisals and Discrimination
Title VII ADA Other fair employment Laws
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
Appraisal Forms
Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals
Measure Performance
Measurement systems need to be: Specific Fair Consistent Clear Useful
Measure Performance (cont.) Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented
Document Performance
Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis
Set Goals….
Based on job requirements Realistic Measurable Observable Challenging Prioritized
Employee Input
Employees take an active role:
Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting
Preparation Employees: Review performance Think about new goals
Preparation (cont.) 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
Presentation Tips
Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality
During the Meeting (cont.)
Set goals: Based on company goals Building on areas that need improvement
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
Recognize problems Talk with employee Follow company policy
Handle Hard Cases
Reviewing highly emotional employees Rating former peers
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.
Critical Incident method Ex: A fire, sudden breakdown, accident Workers
reaction
A B C D E
informed the supervisor immediately Become anxious on loss of output tried to repair the machine Complained for poor maintenance was happy to forced test
Simple checklist method: Is employee regular Is employee respected by subordinate Is employee helpful Does he follow instruction Does he keep the equipment in order
Y/N Y/N Y/N Y/N Y/N
Weighted checklist method weights Regularity Loyalty Willing to help Quality of work Relationship
0.5 1.5 1.5 1.5 2.0
performance rating (scale 1 to 5 )
Forced choice method Criteria 1.Regularity on the job •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
Employee name_________ Deptt_______ Rater’s name ___________ Date________ -----------------------------------------------------------------------Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale
Indifferent
Enthusiastic
Attitude
No Interest
Interested
Discontinuous Rating Scale
Very enthusiastic
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
MBO Process
Set organizational goals Defining performance target Performance review feedback
Performance Appraisal Methods
Group Appraisal
Ranking Paired comparison Forced distribution Performance tests Field review technique
Ranking method Employee
Rank
A
2
B
1
C
3
D
5
E
4
Paired comparison method A
A -
B -
C -
D +
E Final Rank + 3
B
+
-
-
+
+
2
C
+
+
-
+
+
1
D
-
-
-
-
+
4
E
-
-
-
-
-
5
No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
Forced Distribution method No. of employees 10% 20%
40%
20%
poor Below average good average Force distribution curve
10% Excellent
Field review method Performance Dimension
subordinate peers
Leadership
^
Communication
^
^
Interpersonal skills
^
^
superior
customer ^
Decision making
^
^
^
Technical skills
^
^
^
Motivation
^
^
^
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.
For middle level managers
Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
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
