Performance Appraisal:

The ugly truth . . . most employees dread receiving them almost as much as managers hate giving them".

Performance Appraisals
It is formal system of periodic review and evaluation of an individuals or team Job performance. Appraisals involves: Setting work standards Assessing the actual performance with standards Providing feedback

Use of Performance Appraisals

Human Resource Planning Recruitment and Selection Training and Development Career Planning and Development Compensation and Benefits Internal Employee Relations Assessment of Employee Potentials

Objective of Performance Appraisal:

Help employee improve their performance, Generate adequate feedback and guidance, Help employee development through realistic goal setting, Provide input to reward system, Help identifying employee for training and development.

Main Components of Performance Appraisal System:

Identification of Key Performance Areas, Identification of Behavioral Dimensions that are critical for managerial effectiveness, Periodic review of Performance, Review of format of PA system with employee and experts, Identification of Development needs and development of action,

Methods of Performance Appraisals

Graphic Ranking Scale

The factors chosen are typically of two types:1. Job related i.e. quantity and quality of work 2. Personal factors i.e. initiative, adaptability, dependability, cooperation, team sprit etc.

Graphic Ranking Scale

Widely used technique that rates employee according to defined factors, Very Popular because this permits many employees to be evaluated quickly. The scale is divided into categories normally (1-5) or (1-10) by adjectives such as outstanding, average, or unsatisfactory.

Alternative Ranking Method

This method is used to rank all the employee from the best to the worst with certain criteria such as work itself, personal behavior etc.

Paired Comparison
This is the ranking method in which chart of all possible pairs of the employee for each trait and indicating which is the better employee of the pair

Forced Distribution Method

In this method appraisers are given two or more specific statement from which the appraisers has to choose one i.e. The employee is Better while working Good while working Well while working Worst while working

Critical incident method

A performance appraisals method that focuses on the key behaviors that makes the difference between doing Job effectively or ineffectively, i.e. Supermarket Sales person Does he approach to customer promptly--------Does he shows good interpersonal skills with the customer-------------Is he able to convince the customer to buy the product--------------------

Behaviorally Anchored Rating Scale

A methods that combines elements of traditional rating scale such as graphic rating scale, and critical incidents methods.

Problems in Performance appraisals

Unclear standards:Especially qualitative standards are very difficult to measure such as creativity, attitude, quality etc.

Halo Effect
A problems occurs when supervisor rating of a subordinate on one trait which biases the rating of that person on other traits.

Central Tendency
This problems occurs when the raters has got the tendency to rate the employee on average, i.e. if the rating scale ranges from 1-10 many supervisor rate the subordinates on average such as 5, 6 etc.

Leniency or Strictness
The problems that occurs when a supervisor has a tendency to rate all subordinates either high or low,

Appraisal interview
An interview in which supervisor and subordinates review the appraisal and make plans to remedy deficiencies.

The outcomes of appraisal interview:

1. If performance is outstanding- employee promotable make development plans, 2. Satisfactory- Maintain or improve performance, 3. Unsatisfactory- Plan correction. is

Things to be considered while doing performance appraisal interview

Be direct and specific, Dont get personal, Encourage the person to talk, Make sure that what the person is doing right and wrong.

Performance management:
Last decade shift from performance appraisal to performance management system, More importance to focus on defining, planning, and managing performance than merely appraising.

Performance appraisals Vs Performance Management:

Performance Appraisals Focus on generation of rating Annually-generally periodic review Emphasis on rating and evaluation Designed and monitored by HR department Ownership with HR department Performance Management Focus on performance management Continuous with quarterly review
Emphasis on planning, analysis, review, developments and improvement of performance

Designed by HR department but monitored by respective department Line manager but HR is facilitator

Linked to promotions, reward training etc. Linked with performance improvements.

Performance development:
General definition :a record of an individual, team, or organizations accomplishments. This can be broken down into several more specific definitions, as follows:
It is the outcome of work done. (output)

It is, not only the outcome, but also the execution and carrying out of tasks.
It is likewise the behavior or set of behaviors attributed to the individual upon executing, carrying out, and accomplishing given tasks.

Reasons to Develop Performance:

Performance development is necessary because of the increased competition among career-oriented individuals. If a person does not keep up with the rest, he will be left behind, Competent individuals, equipped with the necessary knowledge, skills, and attitudes (KSA) will stay ahead and keep organization ahead.