Unit 2

Performance Appraisal System Implementation

Defining Performance Performance Management system include measures of both BEHAVIOURS and RESULTS . The definition of the performance does not include the results of an employee’s behaviors, but only the behavior themselves.

Performance is about behavior or what employees do, not about what employees produce or the outcomes of their work.

Characteristics of the Behaviors : -

Evaluative ( Can be judged as Negative, neutral and positive) Multidimensional ( have the capacity to advance the organizational goals)

Consider set of behaviors that can be grouped under the general label “ Contribution to effectiveness of others in the work unit” (What this means)

Works within and outside the unit and helps to improve their effectiveness; shares information and resources; develops effective working relationships; builds consensus; constructively manages conflict.

Cont..Defining Performance

Anchors - It’s a scale to measure demonstrating various levels of competence.

Anchors could be words and phrases such as –

Outstanding Significantly exceeds standards Fully meets standards Unacceptable

Determinants of Performance What factors cause an employee to perform at a certain level ?Why do certain individuals perform better than others?

Below combination of three factors allows some people to perform at higher levels than others.

Declarative knowledge Procedural Knowledge Motivation

•Facts•Principles•Goals

•Cognitive skill•Psychomotor skill•Physical skill•Interpersonal skill

• Choice to perform • Level of efforts• Persistence of efforts

Performance = Declarative knowledge X Procedural Knowledge X Motivation

If any of the determinants has a value of 0, then performance also has value of 0.

Deliberation practice

Deliberation practice involves 5 steps :

Approach performance with goal of getting better and better As you performing focus on what's happening and why you

are doing things the way you do Once your task is finished , seek performance feedback from

expert sources, the more sources the better Build and psychological models of your job, your situation,

your organization Repeat steps 1-4 continuously and on an on going basis

Implications for addressing performance problems

In order to address performance problems properly, managers must take following measures:

1. Find out information that allow you to understand the source of problem (Declarative knowledge)

2. Analyse the level of motivation an employee has. (If motivation is low, send him to a sponsored training programs)

By doing this, it will help the manager not only in measuring performance but also provides information about the source of any performance deficiencies.

Some of the Factors influencing determinants of performance are: Employee (their ability & past experience) HR practices Work environment Training

Performance Dimensions

Performance is multidimensional To understand performance, one has

to understand different types of behavior an employee exhibits in due course of work.

In the broader sense, there are two types of behavior or performance facet:

1. Task performance2. Contextual performance

What is Task performance?

Activities that transform raw materials into goods and services that are produced by an organisation.

Activities that help with the transformation process by replenishing the supply of raw materials, distributing finished goods etc

What is Contextual performance?

All those behaviors that contribute to the organisation’s effectiveness by providing a good environment in which task performance can occur.

It includes behaviors such as1. Persisting with enthusiasm and exerting extra effort

as necessary to complete one’s own task successfully

2. Volunteering to carry out task that are not a part of job

3. Helping & cooperating with others4. Following organisation rules & procedures5. Endorsing, supporting & defending organisational

objectives

Difference b/n Task & Contextual performance

Task performance

1. Varies across jobs

2. Likely to be role prescribed

3. Background : abilities & skills

Contextual performance

1. Fairly similar across jobs

2. Not likely to be role prescribed

3. Background: personality

Which type of performance behavior is required? Many org now realise that there is a need to

focus on both types of performance behaviors. Organizations cannot perform effectively with

minimum dose of any one of types. Global competition is raising the levels of

effort required of employees. Many organizations are forming employees

into teams. The need to offer outstanding customer

service. Employee level of satisfaction will be high.

Approaches to measuring performance

There are 3 approaches that can be used to measure performance. They are:

1. Trait approach

2. Behavior approach

3. Results approach

Trait approach The trait approach emphasizes the individual performer

and ignores the specific situation , behavior and results

Emphasis on individual• Evaluate stable traits▪ Cognitive abilities▪ Personality

• Based on relationship between traits & performance

Appropriate if• Structural changes planned for organization

Disadvantages• Improvement not under individual’s control• Trait may not lead to ▪ Desired behaviors or

▪ Desired results

Behavior Approach

Appropriate if

• Employees take a long time to achieve desired outcomes

• Link between behaviors and results is not obvious

• Outcomes occur in the distant future• Poor results are due to causes beyond

the performer’s control

Not appropriate if above conditions are not present

Result Approach

Advantages:• Less time • Lower cost • Data appear objective

Most appropriate when:• Workers skilled in necessary behaviors• Behaviors and results obviously related• Consistent improvement in results over time• Many ways to do the job right