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Performance Management and Appraisal
Submitted to: Sir Ahmad Tisman Pasha
Submitted by:Submitted by:
Maimoona Ali Maimoona Ali
Roll # 07-14 Roll # 07-14
BS(IT) #3 BS(IT) #3rdrd sem sem
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Performance Management Performance Management Processes used to identify, encourage, Processes used to identify, encourage, measure, evaluate, improve, and reward measure, evaluate, improve, and reward employee performanceemployee performance
Provide information to employees about Provide information to employees about their performance.their performance.Clarify organizational performance Clarify organizational performance expectations.expectations.Identify the development steps that are Identify the development steps that are needed to enhance employee performance.needed to enhance employee performance.Document performance for personnel Document performance for personnel actions.actions.Provide rewards for achieving Provide rewards for achieving performance objectives.performance objectives.
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The Nature of Performance The Nature of Performance ManagementManagement
Effective Performanc
e Managemen
t System
Make clear what the organization
expects
Provide performance
information to employees
Document performance for
personnel records
Identify areas of success and
needed development
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FIGURE 11-1
Performance Management Linkage
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Performance Management versus Performance Management versus Performance AppraisalPerformance Appraisal
Performance Management
Processes used to identify, encourage, measure,
evaluate, improve, and reward employee
performance
Performance Appraisal
The process of evaluating how well employees
perform their jobs and then communicating that information to the
employees
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FIGURE 11-2 Components of a Performance-Focused Culture
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Identifying and Measuring Identifying and Measuring Employee PerformanceEmployee Performance
Common Performan
ce Measures
Quantity of Output
Quality of Output
Timeliness of Output
Presence at Work
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Identifying and Measuring Employee Identifying and Measuring Employee Performance (cont’d)Performance (cont’d)
• Job DutiesJob Duties Important elements in a given job as identified from Important elements in a given job as identified from
job descriptions.job descriptions. What an organization pays an employee to do.What an organization pays an employee to do.
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FIGURE 11-3 Types of Performance Information
Subjective
Objective
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FIGURE 11-4 ACTFL Performance Standards for Speaking Proficiency
Source: Adapted from American Counsel on the Teaching of Foreign Languages (ACTFL)Oral Proficiency Interview Tester Training Manual (Stamford, CT: ACTFL Inc., 2006), 81–109.
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Performance Metrics Performance Metrics in Service Businessesin Service Businesses
Common Sources of Performance
Differences
Regional Labor Cost Differences
Service Agreement Differences
Equipment/ Infrastructu
re Differences
Work Volume
Performance that is measured can be managed.
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FIGURE 11-5 Conflicting Uses for Performance Appraisal
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Decisions About the Performance Decisions About the Performance Appraisal ProcessAppraisal Process
Designing Appraisal Systems
Appraisal Responsibilit
ies
Informal vs. Systematic Processes
Timing of Appraisals
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Legal Concerns and Performance Legal Concerns and Performance AppraisalsAppraisals
Legally Defensible Performance Appraisal System:
• Appraisal criteria based on job analysis (i.e., job-related)
• Absence of disparate impact and evidence of validity
• Formal evaluation criterion that limit managerial discretion
• Formal rating instrument linked to job duties and responsibilities
• Personal knowledge of and contact with ratee
• Training of supervisors in conducting appraisals
• Review process to prevent undue control of careers
• Counseling to help poor performers improve
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FIGURE 11-6 Typical Division of HR Responsibilities: Performance Appraisal
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Who Conducts Appraisals?Who Conducts Appraisals?
Supervisors rating their employees
Employees rating their superiors
Multisource, or 360°, feedback
Outside sources rating
employees
Team members rating each
other
Employees rating
themselves
Sources of Performance Appraisals
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Employee Rating of ManagersEmployee Rating of Managers
Advantages Disadvantages
• Helps in identifying competent managers
• Serves to make managers more responsive to employees
• Contributes to the career development of managers
• Negative reactions by managers to ratings
• Subordinates’ fear of reprisals may inhibit them from giving realistic (negative) ratings
• Ratings are useful only for self-improvement purposes
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Team/Peer RatingTeam/Peer Rating
Advantages Disadvantages
• Helps improve performance of lower-rated individuals
• Peers have opportunity to observe other peers
• Peer appraisals focus on individual contributions to teamwork and team performance
• Can negatively affect working relationships
• Can create difficulties for managers in determining individual performance
• Organizational use of individual performance appraisals can hinder the development of teamwork
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FIGURE 11-7
Performance Management Linkage
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FIGURE 11-8 Multisource Appraisal