Performance

Appraisal

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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
performanceperformance
standards
Describes work
& Personnel
Requirement
Of a particular
job

appraisal

Translate job
Into levels of
acceptable
Or unacceptable
performance

Describes the
Jobs 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

Appraisals offer employees:

Direction
Feedback
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?

How PA contribute to firms

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
Personal bias

Set Goals.

Based on job requirements

Realistic
Measurable
Observable
Challenging

During the Meeting

Review performance:
Based on previous goals
Noting strengths and accomplishments
Identifying areas for 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

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
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

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

Employee name_________
Deptt_______
Raters name ___________
Date________
-----------------------------------------------------------------------Exc. Good Acceptable
Fair Poor
5
4
3
2
1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score
Continuous Rating Scale

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

Group Appraisal

Ranking
Paired comparison
Performance Appraisal Methods
Performance tests Field review
(cont.)technique

Ranking method
Employee

Rank

Paired comparison method

Appraiser compares each employee with every other
employee , one at a time.
For ex:
there are 5 employees A,B,C,D,E
So the performance of a will A compared with B & decision
will be taken on whose performance is betterthen A is
compared with rest all one by one.

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 companies development
Degree of growth and expansion of
employees

For middle level managers

Departmental performance
Coordination among employees
Degree of clarity about corporate goals and
policies
Achievement of standards

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