appraising the performance
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What is performance appraisal?
A performance appraisal,
employee appraisal, performance
review, or (career) development
discussion is a method by which
the job performance of an
employee is evaluated (generally
in terms of quality, quantity, cost,and time) typically by the
corresponding manager or
supervisor.
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Why performance appraisal?
Major use is for pay decisions
Identify candidates for promotion and
reassignment
Determine needs for training anddevelopment
Give feedback for improvement
Administer rewards and discipline
Motivation tool for improved
productivity
Goal setting for future accomplishments
and measure attainment
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Types of performance appraisal
systems Rating scale
Ranking system
Critical incident technique
Behavior checklists
Management by objective
360 degree feedback
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Stages of Performance Appraisal:
Specified performance criteria
Identify the appraisers
Deciding on the frequency of
appraisal
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Performance Appraisal Criteria
Traits
Behavior Outcomes
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Traits:
Traits such as leadership,
judgment, initiative and
dependability are positivelycorrelated with job performance
but may be difficult to measure
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Behavior:
This criteria focuses on tasks to be
performed but performance of
expected criteria do notnecessarily lead to success on the
job if other criteria is not met.
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Outcomes:
Focuses on measurable results
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Who are appraisers?
Immediate managers Leaders at the parent and host
location
Team members Clients
Self appraisal
In most MNCs, appraisal system havea combination of these appraisers,
which provides fair and balanced
approach.
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Frequency of Appraisal:
Refers to, how frequently an
appraisal is done or how much gap
is left before each appraisal.
It may be once in 3months,
6months or once in a year
Usually it is done once in a year.
Newer recruits are assessed more
than the experienced ones.
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Issues in performance management
Performance
Management
Culture &
Performance
management
Rewarding
performance
Under
performers
Virtual
Teams
Subsidiary
performance
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CultureImplication:Individual collective
Level of achievement Provide direct feedback -Feedback should considerindividuals role
- Feedback should consider
group harmony
Feedback approachProvide opportunity for
individual to participate in
assessment
Focus on top-downcommunication
-Avoid perception by
lessening the managerial
participation
Communication styleFeedback communicationshould be direct
-Consider surroundingcontext of the feed back
-Pay close attention to the
body language of
individual
-Be indirect in
communicating feedback
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Three Ways in which cultural
differences impact PMS
1. Goal commitment and
participation2. Feedback - Performance
3. Feedback seeking behavior
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Rewarding performance
Provide annual performance
awards.
It could be unit wise, subsidiary
wise or in global forum.
Such awards motivates and makes
sure that achievements are in
alignment with the global value
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Managingunderperformers:
Stage 1: Setting expectations and monitoring
performance, clear communication of the non -
performance parameter shared with the
employee, showing evidence for the same.
Stage 2: Discussing and documenting problem
performance. made sure the employee is
communicated fully regarding the area of under
performance.
Stage 3: Establishing and implementing
consequences to poor performance. this stage
occurs when problem continues even after one
or more performance discussion.
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Managingunderperformers:
The performance is then rated as
"unsatisfactory", in which case
the employee is placed on
probation for a month or two, afterbeing given a written notification
about the area of
underperformance. If the probationis not satisfactorily completed, the
employee is terminated or asked to
resign.
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Virtual assignment:
In order to raise up the
competency level of the
individuals, virtual
assignments are given and see
how the individuals perform.
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Subsidiary assessment:
Though the performance of
individual expatriates is
important, the performance of the
subsidiary as a whole is even
more important, therefore it is
more important to assess the
growth of the subsidiary as awhole.
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Difficulties in Assessment:
Balancing HQ and Home unit
performance
Attention to external forces
Vagaries of the international
environment
Significance of time and distance
Variable level of maturity
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