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Basic Performance Appraisal Process

Conduct a Job Analysis (e.g., specify tasks and KSAs)

Develop Performance Standards (e.g., define what is superior, acceptable, and poor job performance)

Develop or Choose a Performance Appraisal System

Subjective Appraisal Methods (can be used with any type of job)


Relative Methods

1) Ranking
1st _____ 2nd_____ 3rd _____

2) Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.

Both are difficult to use with a large number of subordinates

Subjective Appraisal Methods


Absolute Methods 1) Narrative essay Unstructured (e.g., content, length) Affected by the writing ability of supervisors and time availability

2) Graphic Rating Scale (most common) _____ _____ _____ _____ _____ Very Average Excellent Poor

Common Rating Scale Errors


1) Leniency (positive bias) X
_____ Very Poor _____ _____ _____ _____ Average Excellent

2) Severity (negative bias)


_____ Very Poor

_____

_____ _____ _____ Average Excellent

All lead to a restriction in the range of performance scores

3)Central Tendency (midpoint) X


_____ Very Poor _____ _____ _____ _____ Average Excellent

Halo Error
Responsibility Commitment Initiative Sensitivity

Judgment
Communication

High ratings on other performance dimensions

Observation of specific behavior (s) (e.g., volunteers to work overtime)

Objective Appraisal Data


1) Production Data (e.g., sales volume, units produced) When observation occurs (timing), and how data is collected Fairness and relevancy issue Potential limited variability Limitations regarding supervisory personnel

2) Personnel Data
Absenteeism (excused versus unexcused) Tardiness Accidents (fault issue)

Performance Appraisal Training


1) Frequent observation of performance and feedback (both positive and negative) 2) Recordkeeping (ongoing if possible) 3) Encourage self-assessment of employees 4) Focus on behaviors (not traits) 5) Use specific behavioral criteria and standards 6) Set goals for employees (specific and challenging ones) 7) Focus on how to observe job behaviors and provide incentives to do so

Legally Defensible Appraisal Systems


1) Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.

2) Use objective and uncontaminated data whenever they are available.


3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals. 4) Use more than one independent evaluator of performance. 5) Use a formal, standardized system for personnel decisions. 6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made. 7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude. 8) Provide documented performance counseling prior to performance,-based termination decisions.

Prescriptions for Legally Defensible Appraisal Systems (cont)


9) Communicate specific performance standards to employees. 10) Provide raters with written instructions on how to complete performance evaluations. 11) Evaluate employees on specific work dimensions, rather than on a single overall or global measure. 12) Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings. 13) Base the content of the appraisal form on a job analysis. 14) Provide employees with an opportunity to review their appraisals. 15) Educate personnel decision-makers regarding laws on discrimination.

Performance Appraisal System


REFERENCE:Indian Bank Association

Reference:Indian Bank Association The situations prevailing in public sector banks.

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Performance Appraisal System

Although Indian Banking has come off age in recent times, human resource management continues to remain a neglected one. The role of Human Resource Managers remain limited to fire fighting.
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Performance Appraisal System Areas like capability assessment, including capability gaps and training needs, placement of right people in the right places, career plan, employee motivation etc. are areas receiving scant or no attention.

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Performance Appraisal System Most HR Managers go through the performance appraisal in a rather mechanical way and treat them as they treat the plethora of statements that are prepared by banks for submission to various authorities.

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Performance Appraisal System

Presently HR Manager in banks, if there are any, are clearly not in the know-how of what all uses a performance appraisal, if done in a scientific way, can be put to.

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Performance Appraisal System Presently in most banks, employees are required to submit their performance appraisal only when a promotion process is undertaken.

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Performance Appraisal System Only a few banks have put in place mechanisms to identify key responsibility areas for the purpose of designing their performance appraisal forms.

Target setting is virtually non-existent.


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Performance Appraisal System The aims and objectives of the organization, the contribution of individuals/the departments towards these objectives are certain key elements missing in the present day performance appraisal systems.

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Performance Appraisal System The process takes a bottom-up approach with virtually no interaction between the appraisee and the appraiser. A critical assessment of the appraisee and review of the performance over a reporting period are virtually nonexistent.
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Performance Appraisal System As a result the employees development suffers and valuable human resources wasted.

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Performance Appraisal System

Nowadays various tools are available for evaluating employee performance. Some organisations have even taken to 360 degree evaluation techniques.

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Performance Appraisal System Till such time managing human resources gives way to Human Resource Management in banks, performance management systems including 360 degree evaluation techniques shall remain a distant dream.
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Performance Appraisal System If only banks are to tweak the performance appraisal systems they have to make it a more meaningful one thereby contributing to the development of the individual and the organisation as a whole, they will be taking a giant step forward.
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Performance Appraisal System It is in this context that one should look at revamping the performance appraisal systems in public sector banks. As a first step of course, one should be clear as to what purposes it should serve.
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Performance Appraisal System In general a performance appraisal system should serve as a tool for workperformance judgemental and provide a basis for reward allocation (none at present in public sector banks), promotions, transfers, lay-offs etc.

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Performance Appraisal System It should help the organisations to identify high potential employees developmental, fostering work improvement, identifying training and development opportunities and develop ways to overcome obstacles and barriers.
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Performance Appraisal System It should serve as a medium for translating organisational goals into individual job objectives, communicating expectations regarding employee performance.

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Performance Appraisal System.)


A well designed performance appraisal should give employees answers to questions such as What am I expected to do How well am I doing What are my strengths and weaknesses How can I do a better job and How can I contribute more towards the organizational goal.
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THANK YOU!!

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