Professional Documents
Culture Documents
Topics covered y y y y y y y y y y y
What is Performance Appraisal? Need for Performance Appraisal Steps involved in Performance Appraisal Employee Review System What is Performance? Conditions for establishing effective PMS Types of Appraisal Methods Individual Evaluation Methods Multiple person Evaluation Methods 360 Appraisal Benefits of Performance Appraisal
evaluate employee performance and ensure its alignment to organizational goals. y To offer the employee rewards and incentives as motivation to start giving or to continue giving desired results.
3. 4. 5.
DEVELOP PMS (Performance Management System) by HR. PERFORM Standard & Expectations communicated to Employee and performance measured. ASSESS Evaluation of employee performance in lieu of expectations. REVIEW Evaluation results discussed with employee PLAN Next step of action for the employee
What is PERFORMANCE?
y It is a record of the
outcomes or results
produced on a specific job function or activity
reduce different interpretations 4. Practicality Ease of use Should reduce paper work Time-efficient
3.
fr
i s
Obj cti
personal characteristics, loyalty, communication skills, level of initiative & decision making. Used in Service Industry y BEHAVIOUR-based Appraisal to assess what an employee does on the job i.e. how he/she behaves and gets his/her work done. Used in Hospitality Industry. y RESULT-based Appraisal to assess the objective result of work i.e. measures the success at the job. Used in collaboration with the above methods.
evaluate employee performance. y Commonly used traits Quality & Quantity of Work y Easy to understand y Permits statistical tabulation of scores of the employee.
Forced Choice
y Uses several set of paired
phrases usually both +ve and -ve. y The rater has to indicate which choices are most & least indicative of an employee. y Favourable qualities plus credit Unfavourable ones negative credit
Essay Evaluation
y The rater is asked to give
strong as well as weak points of the employee s behaviour. y Rater considers following traits: 1. Job knowledge & potential 2. Understanding of company goals 3. Ability to plan, organize 4. Relation with co-workers & supervisors 5. Attitude and perception
MBO (contd.)
Key elements of MBO
Arranging organizational goals in a means-ends
chain. Engaging in joint goal setting. The following steps are involved Identifying KRAs Defining expected results Assigning specific responsibilities to employees Define authority and responsibility relationship Conducting periodic progress review Conducting annual performance review
statements in instances of very effective & ineffective behaviour of employee. y These critical incidents represent employee s outstanding or poor behaviour. y Periodic record of critical incidents is maintained.
Sales clerk patiently attended to customers complaints. He is polite, prompt and enthusiastic to solve their problems. OR July 20 Sales assistant stayed 45 minutes beyond his break during the busiest part of the day. He failed to answer store manager s calls thrice. He is lazy, negligent, stubborn and uninterested in work.
Checklists &
Weighted Checklists
Its is a set of
descriptive statements about the employee and his behaviour. Under weighted checklists, value of each question is weighted.
Ranking Method
y Evaluator rates the
employees from highest to lowest on some overall criteria. y Not recommended for groups of more than 20. y First the top and bottom performers are identified and then the rest are arranged towards the middle.
360 Appraisal
y It is a systematic
collection of performance data about an individual or a group from a number of stakeholders. y The data gathered is fed back to the individual in a clear way designed to promote understanding, acceptance & ultimately behaviour.
Superiors
Contributions
y First-line manager is in the best position to
effectively carry out full performance review. y Superiors have the authority to redesign and reassign an employee s work based on their individual or team assessment.
Superiors (contd.)
Cautions to be addressed
y Appraisal systems solely relying on this form of
feedback are less reliable than other methods. y Superiors should make an evaluation only if they have a detailed knowledge of each employee s performance. y Managers should be trained on conducting appraisals
Self Assessment
Contribution
y Improves communication between managers & y y y y
subordinates. Are useful if the employee carries out self assessment in the entire cycle of performance management. Focus can be placed on development of employee through trainings according to potential and needs. Value of self-ratings are widely accepted. Critically valuable in case managers can t readily observe work behaviours & work outcomes.
especially superior ratings. May cause alienation if feedback isn t provided skillfully. y Lower self-ratings may indicate low self-esteem & should be addressed to ensure proper growth of his/her personality. y Self-ratings should focus on appraisal of performance elements & not on summary level determination and rating of the employee s performance
Peers
Contribution
y Influence of peer approval & peer pressure is often
y y y y
more effective than the traditional emphasis to please the boss. Peer ratings are proven predictors of future performance & are useful for employee development. Peer ratings have higher correlation with other accepted performance measuring methods. Multiple raters help average out biases. Proper feedback helps manager coach rather than just judge.
Peers (contd.)
Cautions to be addressed
y Emphasizing peer ratings for pay, promotions etc. is not prudent except at award ceremonies. y Unless the group is close knit and matured, the identity of the raters should be kept hidden to ensure honest feedback. y Peer evaluators should be familiar with team member s tasks and responsibilities to give proper feedback. y Peer rating should not be used for competitive ratings to avoid tensions at the workplace. y Employees need to be involved in every aspect of design in peer rating
Subordinates
Contribution
y Formalized subordinate feedback gives managers a clearer picture of employee needs. y Employees feel they are represented better in organizational decision making. y Feedback of subordinates is effective in evaluating the manager s interpersonal skills but may not be valid for evaluating task-oriented skills. y Combined with other ratings, it adds validity and reliability to the feedback by averaging out biases from summary rating.
Subordinates (contd.)
Cautions to be addressed
y Need for anonymity is essential when using subordinate rating as a source of feedback data due to risk of biased/dishonest feedback or lack of participation. y Managers may feel threatened & perceive it as their authority being undermined. y Subordinates should have sufficient length of assignment under the manager and should only appraise elements of which they have knowledge to ensure accurate assessment. y Should be used carefully by organizations during downsizing.
customer personally, customers should not be asked to assess the individual employee s or team performance for appraisal. y Customers are better at evaluating outputs rather than processes & working relationships & thus do not have knowledge on how to correctly rate employee. y Designing & validating customer reviews are expensive & time consuming. This time should be spent on developing better feedback systems focusing on organization as a while.
appraisal are threepronged 1. Benefits for the appraisee. 2. Benefits for the appraiser. 3. Benefits for the organization.
job-satisfaction & selfesteem. y Opportunity to discuss work problems & how to overcome them. y Opportunity to discuss aspirations & seeking trainings or guidance under supervisors. y Improving work relations.
communication between the employees & management. y Identification of training & development needs. y Generation of ideas. y Better identification of potential & developing employee career plans.
throughout the organization. y Creation of culture of continuous improvement & success. y Conveying message that people are valued.