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? Why do we measure performance? Effective performance appraisal systems How do we measure performance? Characteristics 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: 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.) Appraisals offer employees: Direction Feedback Input Motivation Appraisal Benefits 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.) 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 Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal Appraisals and Discrimination Title VII ADA Other fair employment Laws Discrimination (cont.) 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 Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals Measure Performance 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 Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a regular basis Set Goals…. Based on job requirements Realistic Measurable Observable Challenging Prioritized Employee Input Employees take an active role: 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: Review performance Complete written appraisal Think about new goals Schedule time and place Start the Meeting 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 Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality During the Meeting (cont.) Set goals: Based on company goals Building on areas that need improvement End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not met Confirm understanding Continuous Feedback Formal appraisals Informal appraisals Open communication Recognize Good Performance Verbal Public Tangible Monetary Identify Poor Performance Act early Take the right approach Deal with employee reaction Handle continued poor performance Discipline Poor Performance Recognize problems Talk with employee Follow company policy Handle Hard Cases Reviewing highly emotional employees Rating former peers Key Points to Remember You must conduct objective appraisals on a scheduled basis. Appraisals tell employees how they’re doing and how they can improve. Appraisals help create a system of motivation and rewards based on performance. Performance Appraisal Methods 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 • • 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 Set organizational goals Defining performance target Performance review feedback Performance Appraisal Methods Group Appraisal 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 For top managers 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 Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies For supervisors 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