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Performance

Appraisal

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Performance Appraisal

Performance Appraisal (PA) refers to all those

procedures that are used to evaluate the

personality, performance and potential of itsgroup members.

Performance Appraisals are yearly or monthly

evaluations given to employees.

They evaluate the needs of the employee andsupervisor.

Performance Appraisal is the process by which

organizations evaluate employee joberformance.

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PAS PMS PAS:

Emphasis is on relativeevaluation of individuals

Annual exercise

Rewards & recognition

of good performance

Designed & monitoredby HR department

Ownership is mostly with

the HR dept

PMS:

Emphasis is onperformance ofindividuals, team & orgn.

Continuous process

Performance rewardingmay or may not beintegral part

Designed by HR dept.

but monitored byrespective dept.

Ownership is with theline managers, HRfacilitates its

implementation

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Uses of Performance Appraisal

Raises, Merit Pay, Bonuses

Personnel Decisions (e.g.

promotion, transfer, dismissal)

Identification of Training needs

Research purposes (e.g.assessing the worth of selectiontests

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Objective of Performance

Appraisal

To review the performance of the employees over a given periodof time.

To judge the gap between the actual and the desiredperformance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication betweensuperiorsubordinates and management employees.

To diagnose the strengths and weaknesses of the individuals soas to identify the training and development needs of the future.

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Contd

To provide feedback to the employees regarding their pastperformance.

Provide information to assist in the other personal decisions in theorganization.

Provide clarity of the expectations and responsibilities of the functionsto be performed by the employees.

To judge the effectiveness of the other human resource functions of theorganization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

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Pre requisites- Success PA

The essential of an effective performance systems

are

Documentation: Documenting the performance

Standards/Goals: Should be according to SMART

Practical & Standard Format : Format of PA should be

simple and understandable

Evaluation Technique : Appropriate tool and methodologyshould be used

Communication : Indispensable part of the PA

Feedback : Should be development than judgmental

Personal Bias : Influence of Interpersonal relationship

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Process of Performance Appraisal

Setting

performance

standardsTaking corrective

standards

Discussingresults

Comparing

standards

Measuringstandards

Communicating

standards

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Steps in performance appraisal

Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal data

For appropriate purpose

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Issues in appraisal system

Appraisal Design?

Formal and informal

What methods?

When to evaluate?

What to evaluate?

Whose performance?

Who are the raters?

What problems?

How to solve?

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Benefits of Performance

Appraisal

For the Appraisee

For the Management

For the Organization

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Benefits of Performance Appraisal

For the AppraiseeBetter understanding of his role in the organization what is

expected and what needs to be done to meet those

expectation

Clear Understanding of his strengths & weaknesses todevelop himself into a better performer in future

Increased motivation, job satisfaction, and self esteem

Opportunity to discuss work problems and how they can be

overcome

Opportunity to discuss aspirations and any guidance,

support or training needed to fulfill those aspirations

Improved working relationships with supervisors

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For the ManagementIdentification of performers and non-performers and their

development towards better performance

Opportunity to prepare employees for assuming higher

responsibilitiesOpportunity to improve communication between the

employees and management

Identification of training and development needs

Generation of ideas for improvementsBetter identification of potential and formulation of career

plans

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For the OrganizationImproved performance throughout the organization

Creation of a culture of continuous improvement and

success

Conveying the message that people are valued

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Electronic Performance SupportSystem

Definitions In Electronic Performance Support Systems

- an integrated electronic environment that is

available to and easily accessible by each employee

and is structured to provide immediate,

individualized on-line access to the full range of

information, software, guidance, advice and

assistance, data, images, tools, and assessmentand monitoring systems to permit job performance

with minimal support and intervention by others.

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Other Definition A performance support system provides just-in-

time, just enough training, information, tools,

and help for users of a product or work

environment, to enable optimum performance

by those users when and where needed,

thereby also enhancing the performance of the

overall business.

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CHARACTERISTICS Computer-based

Provide access to the discrete, specific information and toolsneeded to perform a task at the time the task is to beperformed.

Data - The type of data may be textual or numeric(prices,locations, names), visual(photographs, graphics, video), or

audio(conversations, speeches, music). Instruction - The instruction may be the text of a list of steps

to take, a video showing a procedure, a simulation of a taskthat allows the user to practice, and so on.

Advice - The advice may be an expert system that asks the

user questions, then suggests the most appropriateprocedure or step to do next.

Tools- The tools provided may be a spreadsheet, adatabase, a statistical analysis package, an onlinecalculator, a program that controls industrial robots, and soon.

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ont Used on the job, or in simulations or other practice of the job

Controlled by the worker Reduce the need for prior training in order to accomplish the

task

Easily updated

Fast access to information

Irrelevant information excluded

Allow for different levels of knowledge in users

Allow for different learning styles of users

Integrate information, advice, and learning experiences

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Uses of EPSS Electronic performance support systems can help

an organization to reduce the cost of training staffwhile increasing productivity and performance.

It can empower employees to perform tasks with a

minimum amount of external intervention ortraining.

By using this type of system an employee,

especially a new employee, will not only be able to

complete his or her work more quickly andaccurately, but, as a secondary benefit, will also

learn more about the job and the employer's

business.

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Advantages Reducing the complexity or number of

steps required to perform a task

Providing the performance information an

employee needs to perform a task

Providing a decision support system that

enables an employee to identify the action

that is appropriate for a particular set ofconditions

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Methods of Performance

Appraisal

Individual Evaluation

Methods

Multiple Person

Evaluation Methods

Other Methods

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Methods of Performance AppraisalIndividual Evaluation Methods

Confidential report

Essay evaluation

Critical incidents

Checklist

Graphic rating scale

Behaviorally anchored rating scale (BARS)Forced choice method

Management by Objective (MBO)

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Methods of Performance AppraisalMultiple Person Evaluation Methods

Ranking

Paired comparison

Forced distribution

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Methods of Performance Appraisal

Other Methods

Group Appraisal

Field review technique

3600 Appraisal System

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Individual Evaluation MethodsConfidential Report

Descriptive report

Prepared at the end of the year

Prepared by the employees immediate supervisor

The report highlights the strengths and weaknesses of

employees

Prepared in Government organizationsDoes not offer any feedback to the employee

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Individual Evaluation MethodsEssay Evaluation

The rater is asked to express the strong as well as weak points

of employees behavior

The rater considers the employees :

Job knowledge and potential

Understanding of companys programs, policies, objectives etc

Relation with co-workers and supervisors

Planning, organizing and controlling ability

Attitude and perception

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Individual Evaluation MethodsCritical Incidence

Manager prepares lists of statements of very effective and

ineffective behavior of an employee

These critical incidents represent the outstanding or poor

behavior of the employees

The manager periodically records critical incidents of

employees behavior

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Individual Evaluation MethodsChecklist Method

Simple checklist method

Weighted checklist method

Forced choice method

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Checklist MethodSimple Checklist Method

Is employee regular Y/N

Is employee respected by subordinate Y/N

Is employee helpful Y/NDoes he follow instruction Y/N

Does he keep the equipment in order Y/N

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Checklist MethodWeighted Checklist Method

weights performance rating

(scale 1 to 5 )

Regularity 0.5

Loyalty 1.5

Willing to help 1.5

Quality of work 1.5

Relationship 2.0

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Checklist MethodForced Choice Method

Criteria Rating

1.Regularity on the job Most Least

Always regular

Inform in advance for delay

Never regular

Remain absent

Neither regular nor irregular

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Individual Evaluation MethodsGraphic Rating Scale

A form is used to evaluate the performance of the employees

A variety of traits may be used in this device, the most

common being quality and quantity of work

Easy to understand and use.

Permits statistical tabulation of scores of employees

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Individual Evaluation MethodsBehaviorally Anchored Rating Scale (BARS)

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

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Individual Evaluation MethodsForced Choice Method

This method uses several sets of paired phrases, two of which

may be positive and two negative

The rater is asked to indicate which of the four phrases is the

most and least descriptive of a particular worker

Favorable qualities earn plus credit and unfavorable ones earn

the reverse

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Individual Evaluation MethodsManagement by objectives (MBO) - Cont Key Element of MBO

Arranging organizational goals in a means-ends chain

Engaging in joint goal setting

This process has the following steps: Identify KRAs

Define expected results

Assign specific responsibilities to employees

Define authority and responsibility relationship

Conducting periodic progress review

Conducting annual performance review

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Multiple Person Evaluation Methods

Ranking method

The evaluator rates the employee from highest to lowest on

some overall criteriaPaired comparison method

Each worker is compared with all other employees in a group

For several traits paired comparisons are made, tabulated and

then rank is assigned to each worker

This method is not applicable when the group is large

Forced Distribution Methods

The rater is asked to appraise the employee according to

predetermined distribution scale.

The worker is placed between two extremes of good and bad

performance.

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Other MethodsGroup Appraisal

Employee is appraised by a group of appraisers.

The group consists of :

Immediate supervisor of the employee

Other supervisors who have close contact with the

employees work.

Manager or head of the departments.

Consultants or Clients

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Other MethodsField Review Technique

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

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Other Methods3600Appraisal System

360 Degree Performance : Combination of self, peer, supervisor, and

subordinate performance evaluation

It is a systematic collection and feedback of performance data on an

individual or group, derived from a number of stakeholders

Data is gathered and fed back to the individual participant in a clear way

designed to promote understanding, acceptance and ultimately behavior

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The potential appraisal

It refers to the appraisal i.e. identification of

the hidden talents and skills of a person. The

person might or might not be aware of them.

Potential appraisal is a future oriented

appraisal whose main objective is to identifyand evaluate the potential of the employees to

assume higher positions and responsibilities

in the organizational hierarchy. Many

organizations consider and use potential

appraisal as a part of the performance

appraisal processes.42

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Potential appraisal can serve

the following purposes

To advise employees about their overall

career development and future prospects

Help the organization to chalk outsuccession plans

Motivate the employees to further develop

their skills and competencies.To identify the training needs.

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Documents

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