Performance Management and Appraisal

Performance appraisal means evaluating an employees current and/or past performance relative to his or her performance standards

 Performance management - process through which companies insure that employees are working toward organizational goals It includes practices through which the manager defines the employees goals and work, develops the employees capabilities, and evaluates and rewards the persons efforts

Defining the employees goals and work efforts

Employees efforts should be goaldirected Manager should appraise the employee based on how that person did with respect to achieving the specific standards by which he expected to be measured.

Defining the employees goals and work efforts

Manager should make sure that the employees goals and performance standards make sense in terms of the companys broader goals.

 Employees should always know ahead of time how and on what basis youre going to appraise them Set measurable standards for each expectation.

Effective goal-setting

Why Appraise Performance ?

1. Appraisals provide important input on which promotion and salary raise decisions can be made

Who Should Do the Appraising?

The supervisor is usually in the best position to observe and evaluate subordinates performance and is also responsible for that persons performance

Who Else can Do the Appraising?

Sole reliance on supervisors ratings is not always advisable An immediate supervisor may be biased for or against the employee

Rating committee
Usually composed of the employees immediate supervisor and three or four other supervisors Can help cancel out problems such as bias on the part of individual raters.

BASIC APPRAISAL METHODS

Confidential Report(ACR) Direct ranking method(ranks) Grading method(grades) Graphic rating scale Paired Comparison Method Forced distribution method Critical Incident Method Check List method Group appraisal 360 degree performance appraisal Assessment centre`s Human Resource accounting MBO BARS

DirectRanking Method
Ranking employees from best to worst on a trait Alternates between highest and lowest until all employees to be rated have been addressed

Graphic rating scale

Lists a number of traits and a range of performance for each Supervisor rates each subordinate by checking the score that best describes the subordinates performance for each trait

Paired Comparison Method Every subordinate to be rated is paired with and compared to every other subordinate on each trait

Critical Incident Method

Keeping a record of uncommonly good or undesirable examples of an employees work-related behavior and reviewing it with the employee at predetermined times Helps ensure that the supervisor thinks about the subordinates appraisal all during the year Includes : refused to accept instructions Helping the fellow employees Performing difficult tasks

Behaviorally Anchored Rating Scale

(BARS) is an appraisal method that combines the benefits of narrative critical incidents and quantitative ratings by anchoring a quantified scale with specific narrative examples of good and poor performance

360-Degree Feedback
Performance information is collected from supervisors, subordinates, peers, and internal/external customers With multiple ratees and multiple raters, can be paperwork nightmares

Management By Objectives (MBO)

Requires the manager to set specific measurable goals with each employee and then periodically discuss progress toward these goals

MBO
Set the organizations goals Set departmental goals Discuss departmental goals Define expected results Conduct performance reviews and measure the results Provide feedback

APPRAISAL FEEDBACK INTERVIEW

Supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths

APPRAISAL FEEDBACK INTERVIEW

Supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths

Preparing for the Appraisal Interview First, give the subordinate at least a weeks notice to review his or her work, and to read over his or her job description, analyze problems, and compile questions and comments.

Essentials of effective appraisal

Mutual trust and confidence Reliability Standardization Training to appraisers Specific objectives Feedback Post appraisal interview Review and appeals