BRIEF INTRODUCTION ON

PERFORMANCE APPRAISAL SYSTEM

Content
Introduction Org model of Appraisal process
Source for information Rater errors PA & competitive

performance management PA process Criteria to measure Approaches to measure performance Methods of PA Appraisal design

advantage Performance feedback Implement system summary

Performance management
concept through which managers ensure that

employee's activities and outputs are congruent with the organizations goals. Components
Job analysis
Performance appraisal Feed back

Reasons for Performance Appraisals

Benefits to Employees: Provides a chance for employees to ask questions and tell you their sense of what theyve accomplished Lets employee know his/her strengths and areas that need improvement Allows employees to take responsibility for their performance Lets employees know whats expected of them; creates mutual understand of job duties

Reasons for Performance Appraisals

Benefits to Employers: Helps to improve employee relations and productivity Serves as an effective retention tool Provides a paper trail for addressing performance or disciplinary problems Demonstrates organizations commitment to employee success Provides valuable feedback for managers

The Personnel-Management Cycle

Job Description

The Performance Appraisal

Ongoing Feedback and Training

How is Your Personnel-Management Cycle?

Do you have accurate and current job descriptions for all

of your employees? Do your employees have the resources, training and information they need? Are you aware of problems that your employees have right now, for which they need help? Are you giving regular informal feedback?

 Job analysis the process of getting detailed

information about jobs. Performance appraisal process through which an organisation gets information on how well an employee is doing his job. Performance feedback process of providing employees information regarding their performance effectiveness.

PERFORMANCE APPRAISAL PROCESS

Appraisal design
Formal vs informal
Whose

How to solve
What to evaluate

performance Who are raters What problems

When to

evaluate What methods

Performance appraisal process

1. Objective of PA
2. Establish job

expectations 3. Design an appraisal program 4. Appraise performance

Performance interview Archive appraisal data Use appraisal data for appropriate purpose

Performance Appraisals:
Employee Expectations

Be informed and kept in the loop Receive due credit Receive constructive feedback Awareness of appraisal points prior to appraisal completion Opportunities for advancement Honest input regarding opportunities for advancement Employment in a motivating environment Freedom to discuss discrepancies

Performance Appraisals:
Employee Expectations (contd)

Identify and eliminate performance problems Recognize and motivate quality performance Opportunities for baseline performers to improve contributions Document and support employment decisions

Performance Appraisals:
Implementing Meaningful Performance Appraisals
I.
II.

Gather documentation
Develop the written appraisal

III.

Conduct the appraisal review session

Performance Appraisals:
Implementing Meaningful Performance Appraisals (contd)
I.

Gather Documentation
a) b)

c)

d)

e)

Personal observation Observe actual performance and judge results (Halo or Horn) Feedback documentation Use performance notes made throughout the year Personnel File Examine past performance reviews, discipline records, and awards Measurement tools Check documents that support performance rating. Examples: Time clock reports for attendance and tardiness, etc. Others observations Review supervisor, manager, co-worker comments

Performance Appraisals:
Implementing Meaningful Performance Appraisals (contd)
II.

Develop Appraisal Guidelines for writing appraisals

a) b)

c) d) e)

f)

Set aside dedicated time Gather performance documentation and eliminate interruptions Evaluate performance based on expectations Review established expectations, job description, performance goals Rate how well expectations were met Give honest ratings acknowledge strengths and address ongoing problems Provide specific examples Avoid generalities, note specific contributions and accomplishments Avoid personal and subjective statements No exaggerations, no character attacks

Performance Appraisals:
Implementing Meaningful Performance Appraisals (contd)
III.
a) b) c) d)

Conducting the Appraisal Review session Common Mistakes

Manager is ill-prepared Employee is not given adequate notice Discussion is rushed or interrupted Employee is not given the opportunity to comment Managers tone is punitive or condescending

e)

Performance Appraisals:
Implementing Meaningful Performance Appraisals (contd)
III.

Conducting the Appraisal Review session - Maximizing the review

1)
o o o

Be prepared
Determine discussion direction Anticipate objectives Gather supportive documentation

2)
o

Set the right tone

Establish a supportive environment
o o o o Private location Maintain confidentiality Quiet and undisturbed eliminate distractions Level playing field Avoid superiority Timing choose a quiet time

o
o o o o

Demonstrate Respect
Timeliness Conduct reviews by due date Appointments Dont act like the employees time is less valuable Advance notice Allow the employee to be prepared Icebreaker Start on a friendly and relaxed note

Performance Appraisals:
Implementing Meaningful Performance Appraisals (contd)
III.

Conducting the Appraisal Review session - Maximizing the review

o
o o o o

Have the best mindset

Tone Professional and supportive Focus Future goals and objectives Open-mindedness Seek explanations Emotions Calm and centered

3)

Communicate Effectively
Avoid communication roadblocks Vague, evasive, derisive or derogatory language, poor listening skills, strong emotions, one-way conversation Improve communication skills be clear and concise, be honest, not brutal, be an active listener and natural

Performance Appraisals:
During the Appraisal Process
IV.
a) b) c) d)

Potential Emotional Reactions

Emotional Distress Hostility Defensiveness Denial

Performance Appraisals:
During the Appraisal Process (contd)
IV.
a)

Potential Emotional Reactions Emotional Distress - employee becomes tearful or angry, but not aggressive
o

How can you handle it?

o o o o Be patient Offer privacy Suggest rescheduling Other ideas?

Performance Appraisals:
During the Appraisal Process (contd)
IV.
b)

Potential Emotional Reactions Hostility - employee channels his/her emotions into aggression
o

How can you handle it?

o o o o Be patient Offer privacy Suggest rescheduling Other ideas?

Performance Appraisals:
During the Appraisal Process (contd)
IV.
c)

Potential Emotional Reactions Defensiveness - employee makes excuses

o

How can you handle it?

Listen objectively Be compassionate Reinforce expectations Other Ideas?

Performance Appraisals:
During the Appraisal Process (contd)
IV.
d)

Potential Emotional Reactions Denial - employee insists your evaluation is incorrect

o

How can you handle it?

Listen objectively Investigate as necessary Provide supportive documentation Other ideas?

Performance Appraisal Procedures

1.
2. 3. 4. 5. 6. 7.

8.
9.

Instruct employees to complete self-evaluation (interactive PDF form via HR website) Employees have maximum of ONE WEEK to complete and submit self-evaluation Complete Performance Appraisal First-line supervisors shall meet with Director or Dean for appraisals review prior to meeting with employee Schedule meeting with employee Conduct formal meeting with employee. Review Appraisal and determine goals, timelines, etc. You and employee sign the completed Performance Appraisal form after the meeting Forward copy to employee and turn in completed ORIGINAL form to Human Resources (ATTN: Frank Gomez) by February 15, 2008 If you have any questions please call me (956) 872-3646

Successful Meeting Checklist

o Discuss each goal or objective established
o

o
o o o

for the employee Explore areas of agreement and disagreement Cover positive skills, traits, accomplishments and growth potential Reinforce employees accomplishments Discuss employees potential Cover areas in which change is required, expected, demanded or desired

Successful Meeting Checklist (contd)

o
o o o o

Provide employee goals to correct deficiencies within a specified time period Make training/development recommendations Discuss consequences of non-compliance where applicable Set objectives for next performance appraisal (or specific timeline) Have employee sign appraisal to acknowledge having read it, and give employee an opportunity to comment in it in writing Thank employee for his/her efforts

Org model of PM
Org strategy Short & long term Goals, values Individual attributes Skills & abilities Individual behaviors Objective results

Situational constraints Org culture & eco. cond

Criteria for performance measures

Strategic congruence

Validity
Reliability Acceptability specificity

Strategic congruence
The extent to which the performance

management system elicits job performance that is consistent with the organization's strategy, goals and culture. How nonfinancial measures linked to strategic goals & remodeling of it Identification of key performance measures Draw relationship between performance measures and financial outcomes.

Validity
The extent to which a performance measure assesses all

the relevant and only the relevant aspects of job performance. Its between job performance measure & true / actual job performance Never includes contamination / deficiency Often called as content validity.

Reliability
It refers to the consistency of a performance measure.

Internal consistency reliability & test retest reliability

Among individuals Inter rated reliability Intra rated reliability

Acceptability
The extent to which performance measure is deemed to

be satisfactory or adequate by those who use it.

Specificity
The extent to which a performance measure gives

detailed guidance to employees about what is expect of them and how they can meet theses expectations.

Approaches measuring performance

Comparative approach

Attribute approach
Behavioral approach Results approach Quality approach

Comparative approach
Ranking - highest to poorest

Forced distribution group method ( highly acceptable

to not acceptable) Paired comparison one is compared with every one in work group

Attribute approach
Graphic rating scales various domains rated 0- 5.

Specialty Traits are included Strength / weakness identified Viewing as a whole abolished Identifications of error / training need

Behavioral approach
Critical incidents ex complaint satisfaction in

first attempt of service BARS behaviourally anchored rating scales ( no of critical incidents develop this) BOS behavioural observation scale
effective usage of performance and discard of others

and combination of no of behaviours to achieve them It accounts performance of individual rather his behaviour.

 OBM- organisational behaviour modification. It is through

the formal system of behavioural feedback and reinforcement Looked at 3 phases

Baseline period Interview period Intervention period

Assessment centers a process which multiple raters

evaluated employees performance on no of exercises. 360- degree feedback Multi rater system

360- degree feedback Multi rater system

It is a technique understood as systematic collection of

performance data on an individual or group, derived form a number of stake holders. Immediate supervisor, team members, customers, peers, and self. One has information how an employee does the job can be an appraiser. Formalized operations are taken for account. Ex- Ones interaction with customers. Transparent and known to others.

360- degree feedback

Enables employee to have relative comparison of

perception of others and self. Numerous questionnaires, raters, analysis method to be formulated. Positive impact should be made before launch. Balanced & objective feedback is strength and weakness of this system. Supervisors and lateral raters may vary in evaluation.

Results approach
MBO ( Booz org- Allen & Hamilton) management by

objectives. It has 3 components specific, difficult and objective goals. ProMES productivity measurement and evaluation system
Identification of products Define indicators of products Contingencies between indicators and level of evaluation A feedback system

Quality approach new gen.

Customer orientation & prevention of errors 2

fundamental characteristics of this approach.

Emphasis on both system & individual factors Emphasis on managers & employee work together to

solve problem Involves both internal & external customers setting the standards Use multiple sources to measure individual & system.

Methods of Performance appraisal

Source for performance information

Managers

Peers
Subordinates self customers

Performance appraisal & competitive advantage

Improving performance Strategy & Behaviour Competitive advantage Values & behaviour Minimise dissatisfaction & turnover Ensure legal compliance Make correct decisions

Performance feedback
Finding & keeping best employee

Managers role in effective performance & marginal

employee High motivation to low motivation levels

Managers role

Feedbacks more frequently Create right context for discussion Ask individual to rate self Encourage participation of subordinates Recognise through praise Focus on solving problems Focus on results/ behaviour not on person Minimise criticism Agree specific goals and set a date for review

Implement system
Implement system

Follow legal guidelines , regulations.

Common Problems
Failure to prepare for the interview Failure to listen (80-20 ratio) Failure to maintain objectivity

Failure to provide feedbackpositive and/or

corrective Failure to follow-up Failure to document performance both good and bad

Common Problems
Misusing the performance evaluation process to

address a disciplinary problem Element of surprise Relying on impressions/rumors, rather than facts Inconsistent application of performance evaluation criteria Interpersonal issues Holding employees responsible for events/problems beyond their control

Common Rater Biases

Halo/horns effect
Contrast effect First impressions Similar-to-me effect Negative and positive leniency tendency Spillover effect Recency effect

Reference
Human Resource Management Raymond, John, Barry

& Patrick, 5th edn, McGraw hill company, Pages 326375. Human resource management K.Aswattppa, 5th edition, McGraw hill company, pages 238-281. Performance appraisal, South Texas college, 2008-09. Web article.

Any questions???!!!!!

Thank You.