PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL
The performance is measured against such factors as Job knowledge Quality and quantity of output Initiative Leadership Abilities Supervision Dependability Co-operation Judgment Versatility Health
PERFORMANCE APPRAISAL
Assessment should not be confined to past performance alone. Potential of the employee for future performance must also be assessed
IMPORTANCE OF PERFORMANCE APPRAISAL
IMPORTANCE OF PERFORMANCE APPRAISAL
IMPORTANCE OF PERFORMANCE APPRAISAL
THE PERFORMANCE APPRAISAL PROCESS
Objectives of PA
Establish Job Expectations Design an Appraisal Programme Appraise Performance Performance interview
Archive Data
Use data for appropriate purposes
THE PERFORMANCE APPRAISAL PROCESS
1. Objectives of Appraisal Promotions and transfers Assessing training needs Pay increases
2. Establish Job expectation Informing employees what is expected of them
THE PERFORMANCE APPRAISAL PROCESS
3. Design Appraisal Programme 3.1 Formal versus informal appraisal Formal appraisal occurs once or twice in a year Informal appraisal occurs whenever the supervisor feels a need for communication.
3.2 Whose performance should be rated Individuals or teams
THE PERFORMANCE APPRAISAL PROCESS
3.3 Who are the Raters? Immediate supervisors Specialists from the HR department Subordinates Peers Committees Clients Self appraisal Combination of several
THE PERFORMANCE APPRAISAL PROCESS
360-degree appraisal
Clients
Superiors
Subordinates
Peers
THE PERFORMANCE APPRAISAL PROCESS
360-degree appraisal When appraisal is made by superiors, peers, subordinates and clients, it is called the 360-degree system of appraisal.
It was developed at General Electric, USA in1992.
THE PERFORMANCE APPRAISAL PROCESS
3. Design Appraisal Programme 3.3 Who are the Raters
THE PERFORMANCE APPRAISAL PROCESS
THE PERFORMANCE APPRAISAL PROCESS
3.5 Timing of Evaluation Once in three months Six months One year
3.6 Methods of Appraisal Past oriented methods Future-Oriented Methods
METHODS OF PERFORMANCE APPRAISAL
Past-Oriented Methods Rating Scales Checklist Forced Distribution Method Critical Incidents Method Behaviourally Anchored Rating Scales Field Review Method Future Oriented Methods Management by objectives Psychological Appraisals Assessment Centres 360-Degree Feedback
Performance Tests and Observations Confidential Records
Essay Method Cost Accounting Method Comparative Evaluation Approaches
METHODS OF PERFORMANCE APPRAISAL
RATING SCALE
Criteria Dependability Initiative Overall output Attendance Attitude Co-operation Excellent 5 Good 4 Acceptable 3 Fair 2 Poor 1
METHODS OF PERFORMANCE APPRAISAL
Advantages Economy Easy to administer Limited training of rater Standardisation Disadvantages Raters bias,
CHECKLIST
Yes Is the employee interested in the job? Do they obey orders? Do they observe safety precautions Do they report on time Do they complete the work on time? No
METHODS OF PERFORMANCE APPRAISAL
METHODS OF PERFORMANCE APPRAISAL
METHODS OF PERFORMANCE APPRAISAL
METHODS OF PERFORMANCE APPRAISAL
Developing a BARS
Identify important job dimensions Write short statements of job behaviors Assign statements (anchors) to job dimensions Set scales for anchors
BARS
PROBLEMS IN PERFORMANCE APPRAISAL
Appraiser discomfort Lack of objectivity Halo/horn error Leniency/strictness Central tendency Recent behavior bias Personal bias Manipulating the evaluation Employee anxiety
APPRAISER DISCOMFORT
Performance appraisal process cuts into managers time Experience can be unpleasant when employee has not performed well
LACK OF OBJECTIVITY
In rating scales method, commonly used factors such as attitude, appearance, and personality are difficult to measure Factors may have little to do with employees job performance Employee appraisal based primarily on personal characteristics may place evaluator and company in untenable positions
HALO/HORN ERROR
Halo error - Occurs when manager generalizes one positive performance feature or incident to all aspects of employee performance resulting in higher rating Horn error - Evaluation error occurs when manager generalizes one negative performance feature or incident to all aspects of employee performance resulting in lower rating
LENIENCY/STRICTNESS
Leniency - Giving undeserved high ratings Strictness - Being unduly critical of employees work performance Worst situation is when firm has both lenient and strict managers and does nothing to level inequities
CENTRAL TENDENCY
Error occurs when employees are incorrectly rated near average or middle of scale
May be encouraged by some rating scale systems requiring evaluator to justify in writing extremely high or extremely low ratings
RECENT BEHAVIOR BIAS
Employees behavior often improves and productivity tends to rise several days or weeks before scheduled evaluation Only natural for rater to remember recent behavior more clearly than actions from more distant past Maintaining records of performance
PERSONAL BIAS (STEREOTYPING)
Managers allow individual differences such as gender, race or age to affect ratings they give
Effects of cultural bias, or stereotyping, can influence appraisals Other factors Example: mild-mannered employees may be appraised more harshly simply because they do not seriously object to results
MANIPULATING THE EVALUATION
Sometimes, managers control virtually every aspect of appraisal process and are in position to manipulate system Example: Want to give pay raise to certain employee. Supervisor may give employee a undeserved high performance evaluation
EMPLOYEE ANXIETY
Evaluation process may create anxiety for appraised employee Opportunities for promotion, better work assignments, and increased compensation may hinge on results
CONDUCTING THE PERFORMANCE REVIEW
A special time should be set for formal discussion of employees performance
Withholding appraisal results is absurd Performance review allows them to detect any errors or omissions in appraisal, or employee may simply disagree with evaluation and want to challenge it
THE APPRAISAL INTERVIEW
Achilles heel of entire evaluation process
Scheduling interview
Interview structure Use of praise and criticism Employees role Use of software
Concluding interview
INTERVIEW STRUCTURE
Discuss employees performance
Assist employee in setting goals and personal development plans for next appraisal period Suggesting means for achieving established goals, including support from manager and firm
CONDUCTING SEPARATE INTERVIEWS
There is merit in conducting separate interviews for discussing (1) employee performance and development and (2) pay When the topic of pay emerges in interview, it tends to dominate conversation with performance improvement taking a back seat
USE OF PRAISE AND CRITICISM
Praise
is appropriate when warranted Criticism, even if warranted, is especially difficult to give Constructive criticism is often not perceived that way
EMPLOYEES ROLE
Should go through diary or files and make notes of every project worked on, regardless of whether they were successful or not
Information should be on appraising managers desk well before review
CONCLUDING THE INTERVIEW
Ideally, employees will leave interview with positive feelings about management, company, job, and themselves Cannot change past behavior, future performance is another matter
Should end with specific and mutually agreed upon plans for employees development
