7 perf apprsl & mgmt
TRANSCRIPT
Performance Appraisal and Management
Performance Appraisal: Process, Methods; Factors that distort appraisal
Performance Management: Process, Relationship to Performance Appraisal, Potential Appraisal and its
relevance
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)
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.
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..)
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
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
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
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
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
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
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
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
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
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
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?
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
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
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
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
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
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
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
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
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
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)
What Should be Rated?
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.
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
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
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
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
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.
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)