EMPLOYEE APPRAISAL

HUMAN RESOURCE MANAGEMENT GOALS AND

FUNCTIONS

Develop an Effective Workforce

Training

Development

Appraisal

Maintain an Effective Workforce

Wage and salary

Benefits

Labor relations

Terminations

HRM planning

Job analysis

Recruiting

Selecting

Attract an Effective Workforce

CSO Strategy

HRM Environment

Legislation

Trends in society

International events

Changing technology

WHERE ARE WE NOW

1. Staffing

2. Training and development

3. Performance management

4. Compensation and benefits

5. Employee relations

6. Personnel policies

7. Compliance with laws

•Performance measures

•Performance appraisals

•Discipline

PERFORMANCE MANAGEMENT

AND MEASUREMENT

Performance management system - A process of

establishing performance standards and evaluating

performance in order to get to objective human

resource decisions and to provide documentation to

support personnel actions

• Performance Management – The process of

ensuring that employees’ activities and outputs

match the organization’s goals.

• Performance appraisal - evaluation of an

employee’s job performance

WHY PERFORMANCE MANAGEMENT?

• Appraisals play an integral role in the employer’s performance

management process.

• Appraisals help in planning for correcting deficiencies and reinforce things

done correctly.

• Appraisals, in identifying employee strengths and weaknesses, are useful

for career planning

• Appraisals affect the employer’s salary raise decisions.

• The belief that traditional performance appraisals are often not just

useless but counterproductive.

• The necessity in today’s competitive environment for every employee’s

efforts to focus on helping the company to achieve its strategic goals.

• A management philosophy that requires each employee to continuously

improve personal performance

WHO SHOULD DO THE APPRAISING?

Appraisal involves as minimum - the worker and a nominated

appraiser - the immediate supervisor

But also:

Peers

Rating committees

Self-ratings

Subordinates

360-Degree feedback is the most comprehensive

360-DEGREE PERFORMANCE REVIEW

• An appraisal device

that seeks feedback

from a variety of

sources

• Process that

gathers feedback

from a review panel

that includes co-

workers,

supervisors, team

members,

subordinates, and

sometimes

customers

PERFORMANCE APPRAISAL ROLES

Supervisors

Usually do the

actual appraising.

Must be familiar

with basic

appraisal

techniques.

Must understand

and avoid

problems that can

cripple appraisals.

Must know how to

conduct

appraisals fairly.

HR department

Serves a policy-making and advisory

role.

Provides advice and assistance

regarding the appraisal tools to use.

Prepares forms and procedures and

insists that all departments use them.

Responsible for training supervisors to

improve their appraisal skills.

Responsible for monitoring the system

to ensure that appraisal formats and

criteria comply with EEO laws and are

up to date.

PERFORMANCE APPRAISAL PROCESS

Process of observing and evaluating an employee’s

performance, recording the assessment, and providing

feedback to the employee

Steps

Developmental goal setting

Ongoing performance monitoring

Ongoing feedback

Observing and assessing performance

Providing feedback to employee - interview

Rewards, recognition, and compensation

Workflow, process control and return

DESIGNING THE APPRAISAL TOOL

Performance Appraisal Form

Graphic rating scales

Alternation ranking method

Group-order ranking

Individual ranking approach

Paired comparison approach

Management by Objectives (MBO)

Forced distribution method

Narrative Forms

Behaviorally anchored rating scale (BARS)

Critical incidents method

…

HOW TO CONDUCT THE APPRAISAL

INTERVIEWShare the appraisal form before

Prepare for the interview

Have the employee prepare, too

Be direct - Don’t tiptoe around

Be specific - talk in terms of objective work data

Don’t get personal

Don’t make the subordinate feel threatened during the interview.

Give the subordinate the opportunity to present his or her ideas and

feelings and to influence the course of the interview.

Be a helpful and constructive supervisor when conducting the

interview.

Offer the subordinate necessary support for development and

change.G.Dessler, 2003

EXERCISE

15’

Appraise one employee

PERFORMANCE EVALUATION

ERRORS

Stereotyping/bias

Halo/horns effect

Primacy/recency effect

Motivations for soft (less-

than-candid) appraisals

Central tendency

Leniency/strictness

Blind spot

Subjectivity

…

THE MOST COMMON MISTAKES Appraisal comes as a surprise

– no announcements, no preparation

The mark comes as a surprise – no feedback until the end

•Untrained staff

•Unskilled appraisers

•No consequences for any mark

•Poorly designed system or not

at all

•Incomparable marks – no

standards

•No privacy

•No recording system to base

marks on

•Misused marks

HOW TO AVOID APPRAISAL PROBLEMS

Learn and understand the potential problems, and the solutions

for each.

Develop and use the right appraisal tool. Each tool has its own

pros and cons.

Train supervisors to reduce rating errors such as halo, leniency,

and central tendency.

Have raters compile positive and negative critical incidents as

they occur.

Have managers effectively use the performance appraisal

interview to provide feedback that reinforces good performance

and motivate employee development

…

THE APPRAISAL MARKS

Types of appraisal interviews

Satisfactory—Promotable

Satisfactory—Not promotable

Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

What to do with them?

WHEN PERFORMANCE FALLS SHORT

Remove performance impediments

Mismatched skills

Inadequate training

Employee’s personal problems

Discipline

Actions taken by a manager to enforce an organization’s standards and regulations

Employee counseling

A process designed to help employees overcome performance-related problems

Employee training and development

A process designed to help employees gain necessary skills related to performance problems

Thank you for your attention!