Performance Appraisalhttp://studygalaxy.com/

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 analysisperformanceperformancestandards appraisal

Describes work& Personnel RequirementOf a particularjobTranslate job Into levels of acceptableOr unacceptableperformance

Describes the Jobs relevant strengths and weakness ofEach individual

Question arises?Why do we measure performance? Effective performance appraisal systems How do we measure performance?

CharacteristicsIt is a step by step processIt examine the employee strengths and weaknessesScientific and objective studyOngoing and continuous processSecure information for making correct decisions on employees

Needs and Objectives:Provide feedback about employeesProvide databaseDiagnose the S & W of individualsProvide coaching, counseling, career planning to subordinatesDevelop positive relation and reduce grievanceFacilitates research in personnel management

Appraisal Benefits Appraisals offer employees:DirectionFeedbackMotivation

Appraisal BenefitsAppraisals offer the company:DocumentationEmployee DevelopmentFeedbackLegal protectionMotivation system

Why Appraisals Are ImportantRecognize accomplishmentsGuide progressImprove performance

Why Important (cont.)Review performanceSet goalsIdentify problemsDiscuss career advancement

Steps in performance appraisalEstablishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal dataFor appropriate purpose

Process of PASetting performancestandardsTaking correctivestandardsDiscussingresultsComparing standardsMeasuringstandardsCommunicatingstandards

Issues in appraisal systemAppraisal Design?Formal and informalWhose performance?Who are the raters?What problems?How to solve?What to evaluate?When to evaluate?What methods?

How PA contribute to firms competitive advantages Improving performanceMaking correct decisionEnsuring legal competenceMinimizing dissatisfactionAnd turnoverValues and behaviorCompetitive advantage

Problems in performance appraisalErrors In ratingHalo effectsStereotypingCentral tendencyPersonal bias

Set Goals.Based on job requirementsRealisticMeasurableObservableChallenging

During the MeetingReview performance:Based on previous goalsNoting strengths and accomplishmentsIdentifying areas for improvement

End the MeetingEncourage good performanceLay out action planCommunicate outcome of goals not metConfirm understanding

Continuous FeedbackFormal appraisalsInformal appraisalsOpen communication

Recognize Good PerformanceVerbalPublicTangibleMonetary

Performance Appraisal MethodsIndividual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scaleMBO

Critical Incident methodEx: A fire, sudden breakdown, accident

Workersreactionscale

Ainformed the supervisor immediately 5BBecome anxious on loss of output 4Ctried to repair the machine 3DComplained for poor maintenance 2Ewas happy to forced test 1

Checklist methodSimple checklist methodForced choice methodSimple checklist method:Is employee regular Y/NIs employee respected by subordinateY/NIs employee helpfulY/NDoes he follow instruction Y/NDoes he keep the equipment in orderY/N

Forced choice methodCriteriaRating

1.Regularity on the jobMostLeastAlways regularInform in advance for delayNever regularRemain absentNeither regular nor irregular

Graphic Rating ScaleContinuous Rating ScaleEmployee name_________Deptt_______Raters name ___________Date________------------------------------------------------------------------------Exc.GoodAcceptableFairPoor 5 4 3 2 1 _ DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale

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 ProcessSet organizational goalsDefining performance targetPerformance reviewfeedback

Group AppraisalRanking Paired comparison Performance tests Field review technique

Performance Appraisal Methods (cont.)

Ranking methodEmployeeRank

A2

B1

C3

D5

E4

Paired comparison methodAppraiser compares each employee with every other employee , one at a time.

For ex:

there are 5 employees A,B,C,D,ESo the performance of a will A compared with B & decision will be taken on whose performance is betterthen A is compared with rest all one by one.

Field review methodPerformancesubordinatepeers superiorcustomerDimension

Leadership ^ ^

Communication ^^

Interpersonal skills ^^

Decision making^ ^ ^

Technical skills^ ^ ^

Motivation^ ^ ^

Performance criteria for executivesFor top managersReturn on capital employedContribution to companies developmentDegree of growth and expansion of employees

For middle level managersDepartmental performanceCoordination among employeesDegree of clarity about corporate goals and policiesAchievement of standards

For supervisorsQuality and quantity of output in a given period Labor cost per unit of output in a given periodMaterial cost per unit in a given periodRate of absenteeism and turnover of employeesNo of accidents in a given period

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