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Performance Appraisal and Management Performance Appraisal: Process, Methods; Factors that distort appraisal Performance Management: Process, Relationship to Performance Appraisal, Potential Appraisal and its relevance

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Page 1: 7 perf apprsl & mgmt

Performance Appraisal and Management

Performance Appraisal: Process, Methods; Factors that distort appraisal

Performance Management: Process, Relationship to Performance Appraisal, Potential Appraisal and its

relevance

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Performance Appraisal

Objective assessment on an individual’s performance against well defined benchmarks

Assessment should not be confined to past performance alone

Potential for future performance should also be assessed

Other terms used for Performance Appraisal: Performance rating, employee assessment, performance

review, personnel appraisal, performance evaluation, employee evaluation, merit rating

Closely linked to Job Analysis (Ref.Fig.10.1)

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Objectives of Appraisal

To effect promotions based on competence and performance.

To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

To assess the training and development needs of employees.

To decide upon a pay raise where (as in the unorganised sector) regular pay scales have not been fixed.

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To let the employees know where they stand in terms of their performance and to provide constructive criticism and guidance to help them develop

To improve communication Finally, performance appraisal can be used to determine whether HR

programmes such as selection, training, and transfers have been effective or not.

Objectives of Appraisal (contd..)

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Multiple Purposes of AppraisalGeneral Applications Specific Purpose

Developmental Uses

Identification of individual needs

Performance feedback

Determining transfer and job assignments

Identification of individual strengths and developmental needs

Administrative Uses/Decisions

Salary

Promotion

Retention or termination

Recognition of individual performance

Lay-offs

Identification of poor performers

Organisational Maintenance/Objectives

HR planning

Determining organisation training needs

Evaluation of organisational goal achievement

Information for goal identification

Evaluation of HR systems

Reinforcement of organisational development

Documentation

Criteria for validation research

Documentation for HR decisions

Helping to meet legal requirements

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How Performance Appraisal can Contribute to Firm’s Competitive Advantage

Improving Performance

Strategy and Behaviour

Making Correct

Decisions

Values and Behaviour

Ensuring Legal

Compliance

Competitive Advantage

Minimising Dissatisfaction and Turnover

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How Performance Appraisal can Contribute to Firm’s Competitive Advantage

Improving performance: By directing employee towards organizational goals By monitoring employee behaviour to ensure that the

goals are met Making correct decisions:

Appraisal is a critical input in making decisions on pay rise, promotion, transfer, training etc

Ensuring legal compliance: Fair appraisal systems help minimise performance-related

litigation

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How Performance Appraisal can Contribute to Firm’s Competitive Advantage

Minimising dissatisfaction and turnover: Fair and accurate appraisal results in high motivation and

increased job satisfaction Consistency between organizational strategy and

behaviour: Employees want to be rewarded and hence they engage in

behaviour that they perceive will be rewarded Performance appraisal helps in judging this consistency It helps in bringing to the fore any negative consequences

of the strategy-behaviour link

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Organizational Strategy and Performance Appraisal Based on strategy, organizations can be grouped as

defenders, prospectors and analysers Defender strategy:

Have a narrow and relatively stable product-market domain

Primary attention is to improve the efficiency of existing operation

Performance appraisal is used for identifying training needs and may be more behaviour-oriented

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Organizational Strategy and Performance Appraisal

Prospector strategy: These organizations continuously search for different

product and market opportunities Emphasise on skills identification and acquisition of

human resources from external sources Performance appraisal is used to identify staffing needs;

emphasis is on results They focus on division and corporate performance

evaluation as they compare with other companies during the same evaluation period

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Organizational Strategy and Performance Appraisal Analyser strategy:

Operate in two types of product-market domains: one is stable; other is changing

They watch their competitors closely and rapidly adopt the ideas that appear promising

Both skill building and skill acquisition are emphasised; training programmes are extensively employed

Both training and staffing needs are identified through appraisals

Appraisal systems are considered at individual, group and divisional levels

Examine current and past performance within the organization

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The Performance Appraisal Process

Objectives of Performance Appraisal

Establish Job Expectations

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use Appraisal Data for Appropriate Purposes

Feedback

Archive Appraisal Data

Performance Management

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The Performance Appraisal Process: Objectives of Appraisal Individual approach: focus on correcting the problems

Effecting promotions and transfers, assessing training needs, awarding pay increase, lay offs etc

Systems approach: focus on improving the performance Appraisal system evaluates opportunity factors

Physical environment: noise, ventilation, lighting, available resources-human and computer assistance

Social processes: leadership effectiveness

Emphasis is on how the work system affects an individual’s performance

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The Performance Appraisal Process: Establish Job Expectations Inform the employee what is expected of him

or her on the job A discussion is held with the superior to

review the major duties contained in the job description

Individuals should not be expected to begin the job until they understand what is expected of them

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The Performance Appraisal Process: Design Appraisal Programme Formal vs. informal appraisal Whose performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used?

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The Performance Appraisal Process: Design Appraisal Programme- Formal vs. informal Formal Appraisals:

Occur at specified time periods Required by the organization for the purpose of

employee evaluation Most often used as primary evaluation

Informal Appraisals: Occur whenever the supervisor feels the need for

communication Discussions are held in private Helpful for performance feedback Should not replace formal appraisal

Both can be used in combination

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The Performance Appraisal Process: Design Appraisal Programme- Whose performance should be rated? Is it individuals or teams?

Ratee may be defined as the individual, work group, division or organization

Ratee may be defined at multiple levels too E.g. at the work group level for merit pay

increases and at the individual level for training needs assessment

Group-level appraisals may be necessitated by two conditions: Group cohesiveness Difficulty in identifying individual contributions

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The Performance Appraisal Process: Design Appraisal Programme- Who are the raters? Immediate supervisor Subordinates Peers Clients (internal or external) Rating committee: consists of immediate supervisor

and few other supervisors who come in contact with the employee Beneficial when employee has to perform a variety of

tasks in different environments Specific benefits:

Objectivity in rating as more than one rater is involved Raters at different levels observe different facets of

performance Disadvantage:

Diminishes the role of the immediate supervisor

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The Performance Appraisal Process: Design Appraisal Programme- Who are the raters? 3600 system of appraisal: superiors, peers,

subordinates and clients are involved Developed at GE, US in 1992 Popular in India too: Reliance Industries, Wipro, Godrej

Soaps etc. use this system Self appraisal: employee himself evaluates his

performance Provides the employee with an opportunity to participate

in evaluation Specifically so if combined with goal-setting (as in MBO) Employees are less defensive Best suited when executive development is the main

purpose: managers clearly assess their areas of differences

May be more lenient, less viable, more biased and less in agreement with the judgement of others

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The Performance Appraisal Process: Design Appraisal Programme- Who are the raters?

Two requisites that must be fulfilled by the rater: Must be free from bias Must have an opportunity to observe the full

spectrum of activities and behaviour of the ratee over an extended time period

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The Performance Appraisal Process: Design Appraisal Programme- What are the Problems of Rating? Leniency or severity: Either of these makes the

assessment subjective and defeats the purpose of appraisal Requiring the ratings to conform to a forced distribution

is one way to reduce this error

Central tendency: Employees are incorrectly rated near the average or middle of the scale The rater tries to play safe by doing this Terms like ‘satisfactory’, ‘average’ etc. are used Forced distribution can also create problems with

accuracy; especially when most employees are performing above standard

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The Performance Appraisal Process: Design Appraisal Programme- What are the Problems of Rating? Halo error: One aspect of an individual’s

performance influences the evaluation of the entire performance of the individual Rating employees separately on each of a

number of performance measures and encouraging raters to guard against the halo effect help in reducing the halo effect

Rater effect: Favouritism, stereotyping and hostility

Perceptual set: Rater’s assessment is influenced by previously held beliefs

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The Performance Appraisal Process: Design Appraisal Programme- What are the Problems of Rating? Primacy and recency effects: Ratings are heavily

influenced by behaviour exhibited by the ratee During the early stages of the review period (primacy) Nearing the end of the review period (recency) To avoid this error, the rater may be asked to consider

the composite performance of the ratee Rater must also be aware of the tendency of ratees to

improve odds in their favour during the rating period Status effect: Overrating of employees in higher-level

or higher-esteem jobs and underrating employees in lower-level or lower-esteem jobs

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The Performance Appraisal Process: Design Appraisal Programme- What are the Problems of Rating? Performance dimension order: Two or more

dimensions on a performance instrument follow or closely follow each other Both may describe similar qualities Rater rates the first one accurately and rates

the second similar to the first Rating would differ if the dimensions had been

arranged in a different order Spillover effect: allowing past ratings to

unjustifiably influence current ratings Other Errors: Self study

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The Performance Appraisal Process: Design Appraisal Programme- Solving Rater’s Problems

Provide training to raters This training should address real-life

problems like union influences Video tapes are played and trainees are

asked to rate Trainer gives the correct rating and illustrates

the rating errors made Self Study: Factors that help improve

accuracy, Factors that may lower accuracy, Abilities of right evaluators (Page 292-293)

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What Should be Rated?

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The Performance Appraisal Process: Design Appraisal Programme- What Should be Rated?

Objective measures: Quantifiable and highly useful in performance measurement Quality Quantity Timeliness Cost effectiveness

Subjective criteria: Dependent upon human judgements; must be based on careful analysis of behaviours viewed as necessary for job performance Need for supervision Interpersonal impact Community service – Employer Supported Volunteering

(ESV). Eg: Standard Chartered Bank, IBM, Mindtree,HSBC Corporate Social Sustainability (CSS)

Potential appraisal -PHILIPS

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The Performance Appraisal Process: Design Appraisal Programme- When to Evaluate?

Can be carried out once in three months, six months or a year

Frequent assessment may be better Helps in giving timely feedback and remedial

measures This helps the ratee to improve performance if

there is a deficiency Performance of trainees and probationers

should be evaluated at the end of the respective programmes

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AppraisalMethods

Methods of Performance Appraisal

Rating Scales

Cost Accounting

Essay

ACRS

Tests and Observations

Field Review

BARS

Critical Incident

Forced Distribution

Forced Choice

Checklists

MBO

Ass

essm

ent

Cen

tres

Psychological Appraisals

360 Degree A

ppraisal

Future-oriented

Past-oriented

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Simplest and most popular technique Consists of several numerical scales each

representing a job-related performance criterion Dependability, initiative, output, attendance etc.

Each scale ranges from excellent to poor Each criterion is rated and total numerical score is

calculated Advantages: Adaptability, easy use, low cost Disadvantages: Rater’s biases, numerical scoring

gives an illusion of precision that is really unfounded

Methods of Performance AppraisalPast Oriented: Rating scales

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Methods of Performance AppraisalPast Oriented: Checklist Checklist of statements on the traits of the employee and his job

is prepared in two columns: “yes” and “no” Each item is ticked off and the list is forwarded by the rater to the

HR department Rater only does the reporting; actual evaluation is done by the

HR department Points are assigned to each “yes” ticked and total score is

calculated based on this When points are assigned it is called a weighed checklist Advantages: economy, ease of administration, limited training of

rater, standardisation Disadvantages: Rater’s bias, more use of personality than

performance criteria, misinterpretation of checklist items, use of improper weights, relative ratings

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Methods of Performance AppraisalPast Oriented: Forced Choice Method Rater is given a series of statements about

the employee Rater is forced to select a statement which is

most or least descriptive of the employee After selection by the rater, HR does the

actual assessment Advantage: absence of personal bias Disadvantage: statements may not be

properly framed

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Please circle or highlight the response that best describes your behaviour and least describes your behaviour

Works in accordance with organisational policies and standards.

1.1. Personal appearance/grooming Well groomed Usually neat Pays attention but untidy Little attention

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Methods of Performance AppraisalPast Oriented: Forced Distribution Method This method seeks to overcome the problem

of leniency Rater is compelled to distribute the ratees on

all points on the rating scale This method operates under the assumption

that the employee performance level conforms to a normal statistical distribution

It assumes that employee performance levels conform to a bell shaped curve- this is also the main weakness of this method

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Methods of Performance AppraisalPast Oriented: Forced Distribution Method In organizations that select and retain only the good

performers, this approach cannot be used If used it will result in reduces employee morale Error of central tendency: rater may resist placing an

employee in the lowest or the highest group It is also difficult to convince the ratee as to why he

has been placed in a particular group In small groups and in high ability groups, this

method is generally not acceptable to raters and ratees

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Methods of Performance AppraisalPast Oriented: Critical Incidents Method Focuses on certain critical behaviours of an employee

that make all the difference between effective and non-effective performance of a job

These incidents are recorded by the superiors as and when they occur

Advantages: Evaluation is based on actual job behaviour

It has descriptions in support of ratings; giving feedback is easy

Increases the chances that the subordinates will improve as they learn more precisely what is expected of them

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Methods of Performance AppraisalPast Oriented: Critical Incidents Method Limitations:

Negative incidents are more noticeable than positive ones

Recording of the incidents becomes a chore for the supervisor; he may put it off and may even forget

Overly close supervision may result Managers may unload a series of complaints about

incidents during an annual performance review session Feedback may be too much at once and appear as a

punishment to the ratee Management should use incidents of poor performance

as opportunities for immediate training and counselling

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Methods of Performance Appraisal

Past Oriented: Behaviourally Anchored Rating Scales- BARS Rating scales whose scale points are

determined by statements of effective and ineffective behaviours

The scales represent a range of descriptive statements of behaviour varying from the least to the most effective

Rater must indicate which behaviour on each scale best describes an employee’s performance

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Methods of Performance Appraisal

Past Oriented: Behaviourally Anchored Rating Scales- BARS Features: Areas of performance to be evaluated are identified

and defined by the people who will use the scales The scales are anchored by descriptions of actual job

behaviour that represent specific levels of performance Supervisors agree upon these Dimensions and anchors are precisely defined

All dimensions of performance to be evaluated are based on observable behaviour and are relevant to the job; BARS are tailor-made to the job

Raters who use the scale are actively involved in the development process and hence they will be committed to the final product

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Methods of Performance Appraisal

Past Oriented: Field Review Method Someone outside the assessee’s own department-

someone from corporate office or HR- does the appraisal

The outsider reviews employee records and holds interviews with the ratee and his superior

This method is primarily used for making promotional decisions at managerial levels

This method is useful when comparable information is needed from employees in different locations

Disadvantages: Outsiders may not usually be familiar with conditions in

work environment No opportunity to observe employee behaviour or

performance over a period of time

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Methods of Performance Appraisal

Past Oriented: Field Review Method

Raters making field reviews generally receive training on how to conduct the interview and develop their writing skills

They will be less biased in spite of biased information from supervisors

The rater may be able to pinpoint areas requiring training and development assistance

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Methods of Performance Appraisal

Past Oriented: Performance Tests and Observations This applies to limited number of jobs Tests may be of the paper-and-pencil variety or an

actual demonstration of skills Test must be reliable and validated Such tests are apt to measure potential more than

actual performance For the test to be job related, observations should be

made under circumstances likely to be encountered Cost of test development and administration should

not be too high

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Methods of Performance Appraisal

Past Oriented: Confidential Records Confidential Record typically has 14 items:

Attendance Self expression-written or oral Ability to work with others Leadership Initiative Technical ability (job knowledge) Ability to understand new material Ability to reason Originality and resourcefulness Areas of work that suit the person best Judgement Integrity Responsibility Indebtedness and memo served

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Methods of Performance Appraisal

Past Oriented: Confidential Records

Twelve of these are filled on a four-point scale: excellent, good, fair and poor

Justification is required for good or poor rating

Overall rating on a five-point scale may be separately given: Outstanding, Very Good, Good, Average, Poor

Justification is required for this too

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Methods of Performance Appraisal

Past Oriented: Essay Method Rater must describe the employee within a number of

broad categories such as: Rater’s overall impression of the employee’s

performance The promotability of the employee The jobs that the employee is now able or qualified to

perform Training and development assistance required by the

employee May be used independently or in combination with

other methods Extremely useful in filling information gaps about

employees that often occur in the better structured checklist method

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Methods of Performance Appraisal

Past Oriented: Essay Method

Strength of this method depends on the writing skills and analytical ability of the rater

Many raters do not have good writing skills- they become confused as to what to write

Time consuming method and depends on the memory power of the rater

A ‘high quality’ appraisal in this method may provide little useful information about the performance of the ratee

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Methods of Performance Appraisal

Past Oriented: Cost Accounting Method

Evaluates performance from the monetary returns the employee yields to his or her company

A relationship is established between the cost included in keeping the employee and the benefit the firm derives from him or her

Performance is evaluated based on the established relationship between the cost and benefit

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Methods of Performance Appraisal

Past Oriented: Comparative Evaluation Approaches A collection of different methods that

compare one worker’s performance with that of his co-workers

Usually conducted by supervisors Can result in a ranking from best to worst Useful in deciding merit-pay increases,

promotions and rewards There are two methods under this:

Ranking method Paired-comparison method

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Methods of Performance Appraisal

Past Oriented: Comparative Evaluation Approaches- Ranking Method Superior ranks his subordinates in the order of merit-

from the best to worst The HR department only knows that A is better than

B- the ‘how’ and ‘why’ are not questioned or answered

There is no fractionalisation into component elements Subject to halo and recency effects Rankings by two or more raters may be averaged to

reduce biases Ease of administration and explanation are the

advantages

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Methods of Performance Appraisal

Past Oriented: Comparative Evaluation Approaches- Paired Comparison Method Appraiser compares each employee with every other

employee, one at a time The number of comparisons is calculated with the

help of a formula: N(N-1)

N stands for the number of employees to be compared

E.g. if there are 10 employees, the number of comparisons will be 45

The result is then tabulated and a rank is created from the number of time each person is considered to be superior

2

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Methods of Performance AppraisalFuture-Oriented Appraisals

It is not sufficient to assess the past performance alone

How an employee can perform in the days to come is equally important

For this one must focus on employee potential or setting future performance goals

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Methods of Performance AppraisalFuture-Oriented: Management by Objectives

Concept proposed by Peter Drucker in 1954 This management philosophy values and utilises

employee contribution How MBO works:

First the goals each subordinate is to attain are established

It could be done by superiors alone or in consultation with the subordinates

These goals can then be used to evaluate performance Next, performance standards for a particular time

period are set As they perform, the subordinates know fairly well what

there is to do, what has been done and what remains to be done

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Methods of Performance AppraisalFuture-Oriented: Management by Objectives

How MBO works: (contd.) In the third step, the actual level of goal attainment is

compared with the goals agreed upon Evaluator explores reasons for the goals not met and

for the goals that were exceeded Possible training needs can be assessed in this step The superior may also be alerted to conditions in the

organization that affect a subordinate but over which he has no control

Final step involves establishing new goals and new strategies for those not attained previously

Subordinates who successfully reach the previously established goals may be allowed to participate more in the new goal-setting process

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Methods of Performance AppraisalFuture-Oriented: Management by Objectives

Criticisms: It is not applicable to all jobs: those jobs with little

flexibility are not compatible with MBO Can be used only for managerial personnel and

employees who have a fairly wide range of flexibility and self-control

When linked to rewards, employees may try to set easily accomplishable goals than challenging ones

May lead to setting up of goals with short term horizons to the disadvantage of long term goals

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Methods of Performance AppraisalFuture-Oriented: Psychological Appraisals

Large organizations employ full-time industrial psychologists

They are used for evaluations to assess future potential of employees

Appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations

Psychologist then writes an evaluation of the employee’s intellectual, emotional, motivational and other-related characteristics that suggest potential and may predict future performance

The evaluation may be for a particular job opening, or a global assessment

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Methods of Performance AppraisalFuture-Oriented: Assessment Centres

Mainly used for executive hiring Now utilised for evaluating executive or supervisory

potential Assessees are required to participate in exercises,

activities etc which require the same attributes for performance as in the actual job

After recording the ratee behaviours, raters meet to discuss these observations

Decision regarding the performance of each assessee is based upon this discussion

Self-appraisal and peer evaluation are also used for final rating

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Methods of Performance AppraisalFuture-Oriented: Assessment Centres

In spite of having trained observers and psychologists, measuring these over a few days’ span is difficult

Very costly approach Raters may be influenced by the personality of the

candidate; they may evaluate the individual’s social skills rather than quality of decisions

Involves hazards: Good job performers may feel suffocated in the simulated environment

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Methods of Performance Appraisal

Future-Oriented: 3600 Feedback Multiple raters are involved in evaluation It is a systematic collection of performance data on

an individual or a group derived from a number of stakeholders- immediate supervisors, team members, customers, peers and self

Provides a broader perspective about an employee’s performance

Facilitates greater self-development through multi-source feedback

Perceptions that the employee holds about himself can be compared with those held by the others

Makes the employee feel accountable to his internal or external customers

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Methods of Performance AppraisalFuture-Oriented: 3600 Feedback Technique is helpful in assessing soft skills Helps in identifying and measuring interpersonal

skills, customer satisfaction and team building skills Receiving feedback from multiple sources can be

intimidating; so the organizations must create a non-threatening environment by emphasising the positives

Selection of rater, designing questionnaires and data analysis can be time consuming

Getting a balanced objective feedback from multiple raters is difficult

Separating honest observations from personal differences and biases could be difficult for raters

Failure in India” Collectivism and Power distance

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Performance appraisal provides feedback about employee job performance

Performance management consists of three steps that are needed to complete the process: Performance interview Archiving performance data Use of appraisal data

Ref: Table 10.6: Appraisal and Management

The Performance Appraisal Process: Performance Management

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The Performance Appraisal Process: Performance Management- Performance Interview Once the appraisal has been made, the raters have

to discuss and review the performance with the ratees

The main aim is giving feedback on where they stand Goals of performance interview:

To change behaviour of employees whose performance does not meet organizational requirements or their own personal goals

To maintain the behaviour of employees who perform in an acceptable manner

To recognise superior performance behaviours so that they will be continued

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The Performance Appraisal Process: Performance Management- Performance Interview Tell and sell/Directive Interview:

Interviewer lets the assessee know how well he is doing and sells him on the merits of setting specific goals for improvement, if needed

Tell and listen Interview: Provides the subordinates with chances to

participate and establish a dialogue with their superiors

Purpose: communicate the rater’s perception about ratee’s strengths and weaknesses and let the subordinates respond to these

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The Performance Appraisal Process: Performance Management- Performance Interview Problem solving/Participative Interview:

An active and open dialogue is established between superior and subordinate

Perceptions are shared, solutions to problems are presented, discussed and sought

Mixed Interview: Combination of tell and sell and problem solving

interviews Whatever be the approach, the aim should be

counselling and development and not criticism, witch-hunting and buck passing

Ref. Table 6.7: Guidelines for effective appraisal interview

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How to conduct an interview:

 There are four things to keep in mind.

  Be direct and specific. Talk in terms of objective work data and concrete examples.

 Don’t get personal. Do not directly attack the person or compare directly.

      Encourage the person to talk. Stop and listen to the person. Give him a fair chance to justify his points.

       Develop an action plan. Make sure that by the end of the day, the person knows his merits and demerits and is willing to rectify.

 

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Communication Skills for the Appraisal Interview

Nonverbal Attending

Open and Closed Questions

Suggests interest and active listening.

Appropriate use of open and closed questions can ensure an effective flow of communication during an interview.

Rater sits with a slight forward, comfortable lean of the upper body, maintains eye contact, and speaks in a steady and soothing voice.

—Open questions encourage information sharing and are most appropriate early in an interview or in complex, ambiguous situations.

—Closed question evoke short responses and are useful for focusing and clarifying.

While the ratee is speaking, the rater looks at the person and gently nods head to signal interest.

— Open questions start with words like “Could,” “Would,” “How,” “What,” or “Why”.

— Closed questions start with words like “Did,” “Is,” or “Are.”

Skills Benefit Description Example

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Communication Skills for the Appraisal Interview (Cont.)

Paraphrasing

Reflection of Feeling

Paraphrasing can clarify and convey to the ratee that you are listening actively.

Shows that you are trying to understand the emotional aspect of the workplace. The empathy and sensitivity of such reflection can open up communication and allow the interview to move more meaningfully to task-related issues.

A paraphrase is a concise statement in your own words of what someone has just said. It should be factual and nonjudgmental.

Similar to paraphrase, a reflection of feeling is a factual statement of the emotions you sense the other person is feeling. Be cautious about using this technique insincerely or with those who need professional help.

You might begin by saying “If I have this right…” or “What you’re saying is…” and end with “Is that correct?” or “That’s what you are saying?”

Start by saying something like “It sounds like you’re feeling…” End as you would a paraphrase (“Is that right?”).

Skills Benefit Description Example

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Communication Skills for the Appraisal Interview (Cont.)

Cultural Sensitivity

Communication is more effective when you are sensitive to the possible influence of cultural differences.

Pay attention to cultural differences that may influence how another person communicates and how you might communicate with others.

When dealing with employees from a culture that is highly formal, avoid addressing them in the workplace by their first names. Doing so may signal disrespect.

Skills Benefit Description Example

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How to Determine and Remedy Performance Shortfalls

Cause Questions to Ask

Ability

Effort

Situation

Possible Remedies

•Has the employee ever beenable to perform adequately?

•Can others perform the jobadequately, but not this employee?

• Is the employee performance level declining?

• Is performance lower on all tasks?

• Is performance erratic?•Are performance problemsshowing up in all employeeseven those who have adequatesupplies and equipment?

•Train•Transfer•Redesign job•Terminate•Clarify linkage betweenperformance and rewards

•Recognize good performance

•Streamline work process•Clarify needs to suppliers•Change suppliers•Eliminate conflicting signals or demands

•Provide adequate tools

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The Performance Appraisal Process: Performance Management- Archiving Performance Data Refers to storing the appraisal data This facilitates future use These details are very important when

employees raise issues regarding their promotions, pay hikes, confirmation, affirmative action etc.

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The Performance Appraisal Process: Performance Management- Use of Appraisal Data Remuneration administration Validation of selection programmes Employee training and development

programmes Promotion, transfer and lay-off decisions Grievance and discipline programmes HR Planning (Read: Edward Deming on Performance

Appraisal)