Transcript Document

Performance
Appraisal
By Naveed Chiragh
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 analysis
Describes work
& Personnel
Requirement
Of a particular
job
performance
standards
Translate job
Into levels of
To acceptable
Or unacceptable
performance
performance
appraisal
Describes the
Job relevant
strengths and
weakness of
Each individual
Question arises?
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Why do we measure performance?
Effective performance appraisal
systems
How do we measure performance?
Characteristics
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It is a step by step process
It examine the employee strengths and
weaknesses
Scientific and objective study
Ongoing and continuous process
Secure information for making correct
decisions on employees
Needs and Objectives:
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Provide feedback about employees
Provide database
Diagnose the S & W of individuals
Provide coaching, counseling, career
planning to subordinates
Develop positive relation and reduce
grievance
Facilitates research in personnel management
Appraisal Benefits (cont.)
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Appraisals offer
employees:
 Direction
 Feedback
 Input
 Motivation
Appraisal Benefits
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Appraisals offer the company:
 Documentation
 Employee
Development
 Feedback
 Legal
protection
 Motivation system
Why Appraisals Are Important
•Recognize accomplishments
•Guide progress
•Improve performance
Why Important (cont.)
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Review performance
Set goals
Identify problems
Discuss career advancement
Steps in performance appraisal
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose
Process of PA
Taking corrective
standards
Setting
performance
standards
Discussing
results
Communicating
standards
Measuring
standards
Comparing
standards
Issues in appraisal system
Formal and informal
What methods?
Whose performance?
When to evaluate? Appraisal Design?
Who are the raters?
What problems?
What to evaluate?
How to solve?
What to evaluate? (Philip Model)
H
Potential
L
L
Problem
children
stars
Planned
separation
Social
citizen
Performance
H
How PA contribute to firm’s
competitive advantages
Improving
performance
Making correct
decision
Values and behavior
Competitive
advantage
Minimizing dissatisfaction
And turnover
Ensuring legal
competence
Problems in performance appraisal
1.
Errors In rating
 Halo effects
 Stereotyping
 Central tendency
 Constant error
 Personal bias
 Spill over effect
Problems in performance appraisal
(Cont’d)
2.
3.
4.
5.
6.
Incompetence
Negative approach
Multiple objectives
Resistance
Lack of knowledge
Essentials of an effective appraisal system
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Mutual trust
Clear objectives
Standardizations
Training
Job relatedness
Documentation
Feedback and participation
Individual differences
Post appraisal review
Review and appeal
Appraisals and Discrimination
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Title VII
ADA
Other fair employment
Laws
Discrimination (cont.)
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Failure to communicate standards
Failure to give timely feedback
Failure to allow employees to correct
performance
Inconsistency in measuring
performance
Failure to document performance
objectively
Appraisal Forms
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Define performance expectations
Describe measurement tools
Use a rating system
Cover specific examples
Set measurable goals
Measure Performance
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Measurement systems need to be:
Specific
Fair
Consistent
Clear
Useful
Measure Performance (cont.)
Systems can be:
 Numerical
 Textual
 Management by Objective (MBO)
 Behavior oriented
Document Performance
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Make sure documentation is objective
Document performance of all
employees
Provide complete and accurate
information
Document performance on a regular
basis
Set Goals….
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Based on job requirements
Realistic
Measurable
Observable
Challenging
Prioritized
Employee Input
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Employees take an active role:
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Setting goals
Designing action plans
Identifying strengths and weaknesses
Employees participate in the PA meeting
Preparation
Employees:
 Review performance
 Think about new goals
Preparation (cont.)
Supervisors:
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Review performance
Complete written appraisal
Think about new goals
Schedule time and place
Start the Meeting
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Lay out agenda
Talk about money
Encourage input
Give good news first
During the Meeting
Review performance:
 Based on previous goals
 Noting strengths and accomplishments
 Identifying areas for improvement
Presentation Tips
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Focus on the professional
Give objective examples
Invite response
Listen actively
Create “we” mentality
During the Meeting (cont.)
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Set goals: Based on company goals
Building on areas that need
improvement
End the Meeting
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Encourage good performance
Lay out action plan
Communicate outcome of goals not
met
Confirm understanding
Continuous Feedback
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Formal appraisals
Informal appraisals
Open communication
Recognize Good Performance
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Verbal
Public
Tangible
Monetary
Identify Poor Performance
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Act early
Take the right approach
Deal with employee reaction
Handle continued poor performance
Discipline Poor Performance
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Recognize problems
Talk with employee
Follow company policy
Handle Hard Cases
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Reviewing highly emotional employees
Rating former peers
Key Points to Remember
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You must conduct objective appraisals on a
scheduled basis.
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Appraisals tell employees how they’re doing and
how they can improve.
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Appraisals help create a system of motivation
and rewards based on performance.
Performance Appraisal Methods
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Individual Evaluation Methods
 Confidential report
 Essay evaluation
 Critical incidents
 Checklists
 Graphic rating scale
 Behaviorally anchored rating scale
 MBO
Critical Incident method
Ex: A fire, sudden breakdown, accident
Workers
reaction
A
B
C
D
E
informed the supervisor immediately
Become anxious on loss of output
tried to repair the machine
Complained for poor maintenance
was happy to forced test
scale
5
4
3
2
1
Checklist method
•Simple checklist method
•Weighted checklist method
•Forced choice method
Simple checklist method:
Is employee regular
Is employee respected by subordinate
Is employee helpful
Does he follow instruction
Does he keep the equipment in order
Y/N
Y/N
Y/N
Y/N
Y/N
Weighted checklist method
weights
Regularity
Loyalty
Willing to help
Quality of work
Relationship
0.5
1.5
1.5
1.5
2.0
performance rating
(scale 1 to 5 )
Forced choice method
Criteria
1.Regularity on the job
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
Rating
Most
Least
Graphic Rating Scale
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Continuous Rating Scale
Discontinuous Rating Scale
Employee name_________
Deptt_______
Rater’s name ___________
Date________
-----------------------------------------------------------------------Exc. Good Acceptable Fair Poor
5
4
3
2
1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score
Continuous Rating Scale
Indifferent
Enthusiastic
Attitude
No
Interest
Interested
Discontinuous Rating Scale
Very
enthusiastic
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 Process
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Set organizational goals
Defining performance target
Performance review
feedback
Performance Appraisal Methods
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Group Appraisal
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Ranking
Paired comparison
Forced distribution
Performance tests Field review
technique
Ranking method
Employee
Rank
A
2
B
1
C
3
D
5
E
4
Paired comparison method
A
A
-
B
-
C
-
D
+
E Final Rank
+
3
B
+
-
-
+
+
2
C
+
+
-
+
+
1
D
-
-
-
-
+
4
E
-
-
-
-
-
5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation
Forced Distribution method
No.
of
employees
10% 20%
poor
40%
20%
Below average good
average
Force distribution curve
10%
Excellent
Field review method
Performance
Dimension
subordinate peers
Leadership
^
Communication
^
^
Interpersonal skills
^
^
superior
customer
^
Decision making
^
^
^
Technical skills
^
^
^
Motivation
^
^
^
Performance criteria for executives
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For top managers
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Return on capital employed
Contribution to community development
Degree of upward communication from
middle-level executives
Degree of growth and expansion of
enterprise.
For middle level managers
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Departmental performance
Coordination among employees
Degree of upward communication from
supervisors
Degree of clarity about corporate goals and
policies
For supervisors
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Quality and quantity of output in a given period
Labor cost per unit of output in a given period
Material cost per unit in a given period
Rate of absenteeism and turnover of employees
No of accidents in a given period