performance appraisal. performance appraisal (pa) refers to all those procedures that are used to...
TRANSCRIPT
Performance AppraisalPerformance Appraisal
Performance Appraisal (PA) refers to all those Performance Appraisal (PA) refers to all those
procedures that are used to evaluate theprocedures that are used to evaluate the
personalitypersonality
performanceperformance
potential of its group memberspotential of its group members
Objectives of Performance AppraisalObjectives of Performance Appraisal
Provide a basis for promotion/ transfer/ termination: Provide a basis for promotion/ transfer/ termination:
Identify those employees who deserve promotionIdentify those employees who deserve promotion
Or those who require lateral shift (transfer) or Or those who require lateral shift (transfer) or
termination termination
PA is used for career planningPA is used for career planning
Objectives of Performance AppraisalObjectives of Performance Appraisal
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
Objectives of Performance AppraisalObjectives of Performance Appraisal
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
Objectives of Performance AppraisalObjectives of Performance Appraisal
Aid in designing training and development programs:
Identifying skills required to be developed would help
in tailor- making training and development programs
Objectives of Performance AppraisalObjectives of Performance Appraisal
Remove work alienation: Counseling Employees corrects
misconceptions which might result in work alienation
Objectives of Performance AppraisalObjectives of Performance Appraisal
Remove discontent: Identifying and removing factors
responsible for workers’ discontent would motivate
them for better work performance
Objectives of Performance AppraisalObjectives of Performance Appraisal
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
Objectives of Performance AppraisalObjectives of Performance Appraisal
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
Process of Performance AppraisalProcess of Performance Appraisal
Establish Performance Standards
Performance standards serve as benchmarks against
which performance is measured
Standards should relate to the desired results of each
job
Process of Performance AppraisalProcess of Performance Appraisal
Communicate the StandardsCommunicate the Standards
Performance appraisal involves at least two Performance appraisal involves at least two
parties, the appraiser who does the appraisal and parties, the appraiser who does the appraisal and
the appraisee whose performance is being the appraisee whose performance is being
evaluatedevaluated
Process of Performance AppraisalProcess of Performance Appraisal
Communicate the StandardsCommunicate the Standards
The appraiser should prepare job descriptions clearly; The appraiser should prepare job descriptions clearly;
help appraisee set his goals and targets; analyse help appraisee set his goals and targets; analyse
results objectively; offer coaching and guidance to results objectively; offer coaching and guidance to
appraisee whenever required and reward good resultsappraisee whenever required and reward good results
The appraisee should be very clear about what he is The appraisee should be very clear about what he is
doing and whydoing and why
Process of Performance AppraisalProcess of Performance Appraisal
Measure Actual PerformanceMeasure Actual Performance
Performance measures, to be helpful must be Performance measures, to be helpful must be
easy to use, reliable and must report on the easy to use, reliable and must report on the
critical behaviors that determine performancecritical behaviors that determine performance
Measure Actual PerformanceMeasure Actual Performance
Performance measures may be objective or Performance measures may be objective or
subjectivesubjective
Objective performance measures are Objective performance measures are
indications of job performance that can be indications of job performance that can be
verified by others and are usually quantitativeverified by others and are usually quantitative
Measure Actual PerformanceMeasure Actual Performance
Subjective performance measures are ratings Subjective performance measures are ratings
that are based on the personal standards or that are based on the personal standards or
opinions of those doing the evaluation and are opinions of those doing the evaluation and are
not verifiable by othersnot verifiable by others
Compare Actual performance with Compare Actual performance with Standards andStandards and Discuss the AppraisalDiscuss the Appraisal
Actual performance may be better than expected Actual performance may be better than expected
and sometimes it may go off the trackand sometimes it may go off the track
Whatever be the consequences, there is a way to Whatever be the consequences, there is a way to
communicate and discuss the final outcomecommunicate and discuss the final outcome
Taking Corrective ActionTaking Corrective Action
Corrective action is of two typesCorrective action is of two types
One puts out the fires immediately One puts out the fires immediately
Other strikes at the root of the problem Other strikes at the root of the problem
permanentlypermanently
Performance CriteriaPerformance Criteria
In order to be effective, the criteria for performance In order to be effective, the criteria for performance
appraisal should be genuinely related to success / failure appraisal should be genuinely related to success / failure
in the job and should be amenable to objective in the job and should be amenable to objective
judgementjudgement
MBO is an example of performance-based appraisal MBO is an example of performance-based appraisal
approach that involves setting objectives and comparing approach that involves setting objectives and comparing
performance against those objectivesperformance against those objectives
Performance CriteriaPerformance Criteria
Objectives give greater freedom to both Objectives give greater freedom to both
management and the employees in deciding management and the employees in deciding
how performance is to be measuredhow performance is to be measured
Benefits of Performance AppraisalBenefits of Performance Appraisal
For the appraiseeFor the appraisee
Better understanding of his role in the Better understanding of his role in the
organization—what is expected and what needs organization—what is expected and what needs
to be done to meet those expectationsto be done to meet those expectations
Clear understanding of his strengths and Clear understanding of his strengths and
weaknesses to develop himself into a better weaknesses to develop himself into a better
performer in futureperformer in future
For the appraiseeFor the appraisee
Increased motivation, job satisfaction, and self-Increased motivation, job satisfaction, and self-
esteemesteem
Opportunity to discuss work problems and how Opportunity to discuss work problems and how
they can be overcomethey can be overcome
Opportunity to discuss aspirations and any Opportunity to discuss aspirations and any
guidance, support or training needed to fulfil guidance, support or training needed to fulfil
those aspirationsthose aspirations
Improved working relationships with supervisorsImproved working relationships with supervisors
Benefits of Performance AppraisalBenefits of Performance Appraisal
For the ManagementFor the Management
Identification of performers and non-performers Identification of performers and non-performers
and their development towards better performanceand their development towards better performance
Opportunity to prepare employees for assuming Opportunity to prepare employees for assuming
higher responsibilitieshigher responsibilities
For the ManagementFor the Management
Opportunity to improve communication between Opportunity to improve communication between
the employees and managementthe employees and management
Identification of training and development needsIdentification of training and development needs
Generation of ideas for improvementsGeneration of ideas for improvements
Better identification of potential and formulation Better identification of potential and formulation
of career plansof career plans
Benefits of Performance AppraisalBenefits of Performance Appraisal
For the OrganizationFor the Organization
Improved performance throughout the Improved performance throughout the
organizationorganization
Creation of a culture of continuous improvement Creation of a culture of continuous improvement
and successand success
Conveying the message that people are valuedConveying the message that people are valued
Performance Appraisal - Individual Performance Appraisal - Individual Evaluation MethodsEvaluation Methods
Confidential reportConfidential report
Essay evaluationEssay evaluation
Critical incidentsCritical incidents
ChecklistsChecklists
Graphic rating scaleGraphic rating scale
Behaviorally anchored rating scaleBehaviorally anchored rating scale
Forced choice methodForced choice method
MBOMBO
Performance Appraisal - Multiple Performance Appraisal - Multiple Person Evaluation MethodsPerson Evaluation Methods
RankingRanking
Paired comparisonPaired comparison
Forced distributionForced distribution
Other methodsOther methods
Performance testsPerformance tests
Field review techniqueField review technique
Confidential ReportConfidential Report
Descriptive report Descriptive report
Prepared at the end of the yearPrepared at the end of the year
Prepared by the employee’s immediate supervisorPrepared by the employee’s immediate supervisor
The report highlights the strengths and The report highlights the strengths and
weaknesses of employeesweaknesses of employees
Prepared in Government organizationsPrepared in Government organizations
Does not offer any feedback to the employeeDoes not offer any feedback to the employee
Essay EvaluationEssay Evaluation
The rater is asked to express the strong as well The rater is asked to express the strong as well
as weak points of employee’s behavioras weak points of employee’s behavior
The rater considers the employee’s :The rater considers the employee’s : Job knowledge and potentialJob knowledge and potential
Understanding of company’s programs, policies, Understanding of company’s programs, policies,
objectives etcobjectives etc
Relation with co-workers and supervisorsRelation with co-workers and supervisors
Planning, organizing and controlling abilityPlanning, organizing and controlling ability
Attitude and perceptionAttitude and perception
Essay EvaluationEssay Evaluation
This method has the following This method has the following
limitations:limitations: Highly subjectiveHighly subjective Supervisor may write biased essaySupervisor may write biased essay Difficult to find effective writersDifficult to find effective writers A busy appraiser may write the essay hurriedly A busy appraiser may write the essay hurriedly
without assessing properly the actual performance without assessing properly the actual performance
of the workerof the worker If the appraiser takes a long time it becomes If the appraiser takes a long time it becomes
uneconomical from the view point of the firmuneconomical from the view point of the firm
Critical Incident TechniqueCritical Incident Technique
Manager prepares lists of statements of very Manager prepares lists of statements of very
effective and ineffective behavior of an employeeeffective and ineffective behavior of an employee
These critical incidents represent the outstanding These critical incidents represent the outstanding
or poor behavior of the employeesor poor behavior of the employees
The manager periodically records critical The manager periodically records critical
incidents of employee’s behaviorincidents of employee’s behavior
Critical Incident Technique Critical Incident Technique
Example:Example:
July 20 - Sales clerk patiently attended to the July 20 - Sales clerk patiently attended to the
customers complaint. He is polite, prompt, customers complaint. He is polite, prompt,
enthusiastic in solving the customers’ problementhusiastic in solving the customers’ problem
July 20 - The sales assistant stayed 45 minutes July 20 - The sales assistant stayed 45 minutes
beyond his break during the busiest part of the day. beyond his break during the busiest part of the day.
He failed to answer store manager’s call thrice. He is He failed to answer store manager’s call thrice. He is
lazy, negligent, stubborn and uninterested in worklazy, negligent, stubborn and uninterested in work
Critical Incident Technique Critical Incident Technique
Limitation of this technique are:Limitation of this technique are:
Negative incidents may be more noticeable than positive Negative incidents may be more noticeable than positive incidents.incidents.
Supervisors have a tendency to unload a series of Supervisors have a tendency to unload a series of complaints about incidents.complaints about incidents.
Results in very close supervision which may not be liked by Results in very close supervision which may not be liked by the employee.the employee.
The recording of incidents may be a chore for the manager The recording of incidents may be a chore for the manager concerned who may be too busy or forget to do it.concerned who may be too busy or forget to do it.
ChecklistChecklist
A checklist is a set of objectives or descriptive A checklist is a set of objectives or descriptive
statements about the employee and his behavior.statements about the employee and his behavior.
Under weighted checklist, value of each question may Under weighted checklist, value of each question may
be weighted.be weighted.
Example:Example:
Is the employee really interested in the task assigned?Is the employee really interested in the task assigned?
Yes / NoYes / No
Is he respected by his colleagues?Is he respected by his colleagues? Yes / NoYes / No
Graphic Rating ScaleGraphic Rating Scale
A form is used to evaluate the performance of the A form is used to evaluate the performance of the
employeesemployees
A variety of traits may be used in this device, the A variety of traits may be used in this device, the
most common being quality and quantity of workmost common being quality and quantity of work
Easy to understand and use.Easy to understand and use.
Permits statistical tabulation of scores of employeesPermits statistical tabulation of scores of employees
Behaviorally Anchored Rating ScaleBehaviorally Anchored Rating Scale
Combination of rating scale and critical Combination of rating scale and critical
incidenceincidence
Steps: Steps:
Collect critical incidentsCollect critical incidents
Identify performance dimensionsIdentify performance dimensions
Reclassification of incidentsReclassification of incidents
Assigning scale values to incidentsAssigning scale values to incidents
Producing the final instrumentProducing the final instrument
Forced Choice MethodForced Choice Method
This method uses several sets of paired phrases, two This method uses several sets of paired phrases, two
of which may be positive and two negativeof which may be positive and two negative
The rater is asked to indicate which of the four phrases The rater is asked to indicate which of the four phrases
is the most and least descriptive of a particular workeris the most and least descriptive of a particular worker
Favorable qualities earn plus credit and unfavorable Favorable qualities earn plus credit and unfavorable
ones earn the reverseones earn the reverse
Management by Objectives (MBO)Management by Objectives (MBO)
MBO emphasizes collectively set goals that are MBO emphasizes collectively set goals that are
tangible, verifiable, and measurabletangible, verifiable, and measurable
Focuses attention on goals rather than on methodsFocuses attention on goals rather than on methods
Concentrates on Key Result Areas (KRA)Concentrates on Key Result Areas (KRA)
Systematic and rational technique that allows Systematic and rational technique that allows
management to attain maximum results from management to attain maximum results from
available resources by focusing on achievable goalsavailable resources by focusing on achievable goals
Key Elements Of MBOKey Elements Of MBO
Arranging organizational goals in a means-ends Arranging organizational goals in a means-ends
chainchain Engaging in joint goal settingEngaging in joint goal setting
This process has the following steps:This process has the following steps: Identify KRAsIdentify KRAs Define expected resultsDefine expected results Assign specific responsibilities to employeesAssign specific responsibilities to employees Define authority and responsibility relationshipDefine authority and responsibility relationship
Conducting periodic progress reviewConducting periodic progress review Conducting annual performance reviewConducting annual performance review
Multiple Person Evaluation MethodsMultiple Person Evaluation Methods
Ranking methodRanking method The evaluator rates the employee from highest to The evaluator rates the employee from highest to
lowest on some overall criterialowest on some overall criteria
Paired comparison methodPaired comparison method Each worker is compared with all other employees in a Each worker is compared with all other employees in a
groupgroup
For several traits paired comparisons are made, For several traits paired comparisons are made,
tabulated and then rank is assigned to each workertabulated and then rank is assigned to each worker
This method is not applicable when the group is largeThis method is not applicable when the group is large
Forced DistributionForced Distribution MethodsMethods
The rater is asked to appraise the employee according to The rater is asked to appraise the employee according to
predetermined distribution scale.predetermined distribution scale.
Two criteria used for rating are: job performance and Two criteria used for rating are: job performance and
promotability.promotability.
A five point performance scale is also used without A five point performance scale is also used without
mentioning any descriptive statements.mentioning any descriptive statements.
The worker is placed between two extremes of “good” The worker is placed between two extremes of “good”
and “bad” performance.and “bad” performance.
Group Appraisal Group Appraisal
Employee is appraised by a group of Employee is appraised by a group of
appraisers.appraisers.
The group consists of The group consists of
Immediate supervisor of the employeeImmediate supervisor of the employee
Other supervisors who have close contact with the Other supervisors who have close contact with the
employee’s work.employee’s work.
Manager or head of the departments.Manager or head of the departments.
Consultants or Clients Consultants or Clients
Field Review Technique Field Review Technique
The appraiser goes to the field and obtains the The appraiser goes to the field and obtains the
information about work performance of the information about work performance of the
employee by way of questioning the said employee by way of questioning the said
individual, his peer group, and his superiorsindividual, his peer group, and his superiors
360360o o Appraisal SystemAppraisal System
It is a systematic collection and feedback of It is a systematic collection and feedback of
performance data on an individual or group, performance data on an individual or group,
derived from a number of stakeholders derived from a number of stakeholders
Data is gathered and fed back to the individual Data is gathered and fed back to the individual
participant in a clear way designed to promote participant in a clear way designed to promote
understanding, acceptance and ultimately behaviorunderstanding, acceptance and ultimately behavior
Appraisal Interview and Feedback - Let Appraisal Interview and Feedback - Let the Employee Know Where He Standsthe Employee Know Where He Stands
To help employees do a better job by clarifying what To help employees do a better job by clarifying what
is expected of themis expected of them
To plan opportunities for development and growthTo plan opportunities for development and growth
To strengthen the superior-subordinate working To strengthen the superior-subordinate working
relationship by developing mutual agreement of goalsrelationship by developing mutual agreement of goals
To provide an opportunity for employees to express To provide an opportunity for employees to express
themselves on performance related issuesthemselves on performance related issues