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Performance Appraisal
By Naveed Chiragh
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Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
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Relationship between jab analysis and performance appraisal:Job analysis performance performance
standards appraisal
Describes work
& Personnel
Requirement
Of a particular
job
Translate job Into levels of To acceptableOr unacceptableperformance
Describes the Job relevant strengths and weakness ofEach individual
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Question arises?
Why do we measure performance? Effective performance appraisal
systems How do we measure performance?
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Characteristics It is a step by step process It examine the employee strengths and
weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct
decisions on employees
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Needs and Objectives: Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career
planning to subordinates Develop positive relation and reduce
grievance Facilitates research in personnel management
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Appraisal Benefits (cont.)
Appraisals offer employees: Direction Feedback Input Motivation
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Appraisal Benefits Appraisals offer the company:
Documentation Employee Development Feedback Legal protection Motivation system
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Why Appraisals Are Important
•Recognize accomplishments•Guide progress•Improve performance
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Why Important (cont.)
Review performance Set goals Identify problems Discuss career advancement
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Steps in performance appraisal
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal dataFor appropriate purpose
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Process of PASetting
performancestandardsTaking corrective
standards
Discussingresults
Comparing standards
Measuringstandards
Communicatingstandards
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Issues in appraisal system
Appraisal Design?
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
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What to evaluate? (Philip Model)
Problem children
Plannedseparation
stars
Socialcitizen
H
L H
L
Potential
Performance
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How PA contribute to firm’s competitive advantages
Improving performance
Making correct decision
Ensuring legal competence
Minimizing dissatisfactionAnd turnover
Values and behavior
Competitive advantage
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Problems in performance appraisal
1. Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
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2. Incompetence
3. Negative approach
4. Multiple objectives
5. Resistance
6. Lack of knowledge
Problems in performance appraisal (Cont’d)
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Essentials of an effective appraisal system
Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal
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Appraisals and Discrimination
Title VII ADA Other fair employment Laws
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Discrimination (cont.) Failure to communicate standards Failure to give timely feedback Failure to allow employees to correct
performance Inconsistency in measuring
performance Failure to document performance
objectively
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Appraisal Forms Define performance expectations Describe measurement tools Use a rating system Cover specific examples Set measurable goals
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Measure Performance Measurement systems need to be: Specific Fair Consistent Clear Useful
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Measure Performance (cont.)
Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented
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Document Performance
Make sure documentation is objective Document performance of all
employees Provide complete and accurate
information Document performance on a regular
basis
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Set Goals….
Based on job requirements Realistic Measurable Observable Challenging Prioritized
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Employee Input
Employees take an active role: Setting goals Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting
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Preparation
Employees: Review performance Think about new goals
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Preparation (cont.)
Supervisors: Review performance Complete written appraisal Think about new goals Schedule time and place
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Start the Meeting
Lay out agenda Talk about money Encourage input Give good news first
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During the Meeting
Review performance: Based on previous goals Noting strengths and accomplishments Identifying areas for improvement
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Presentation Tips
Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality
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During the Meeting (cont.)
Set goals: Based on company goals Building on areas that need
improvement
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End the Meeting Encourage good performance Lay out action plan Communicate outcome of goals not
met Confirm understanding
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Continuous Feedback
Formal appraisals Informal appraisals Open communication
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Recognize Good Performance
Verbal Public Tangible Monetary
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Identify Poor Performance
Act early Take the right approach Deal with employee reaction Handle continued poor performance
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Discipline Poor Performance
Recognize problems Talk with employee Follow company policy
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Handle Hard Cases
Reviewing highly emotional employees Rating former peers
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Key Points to Remember You must conduct objective appraisals on a
scheduled basis.
Appraisals tell employees how they’re doing and how they can improve.
Appraisals help create a system of motivation and rewards based on performance.
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Performance Appraisal Methods Individual Evaluation Methods
Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO
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Critical Incident methodEx: A fire, sudden breakdown, accident
Workers reaction scale
A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1
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Checklist method
•Simple checklist method•Weighted checklist method•Forced choice method
Simple checklist method:Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N
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Weighted checklist method
weights performance rating(scale 1 to 5 )
Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0
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Forced choice method
Criteria Rating
1.Regularity on the job Most Least•Always regular•Inform in advance for delay•Never regular•Remain absent•Neither regular nor irregular
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Graphic Rating Scale• Continuous Rating Scale• Discontinuous Rating Scale
Employee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor 5 4 3 2 1 _
DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale
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Discontinuous Rating Scale
Attitude
NoInterest
Indifferent
Interested
Enthusiastic
Veryenthusiastic
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BARS( behaviorally Anchored rating scale)
Step 1. Identify critical incidents
Step 2. Select performance dimension
Step 3. Retranslate the incidents
Step 4. Assign scales to incidents
Step 5. Develop final instrument
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MBO Process Set organizational goals Defining performance target Performance review feedback
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Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review
technique
Performance Appraisal Methods
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Ranking method
Employee Rank
A 2
B 1
C 3
D 5
E 4
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Paired comparison method
A B C D E Final RankA - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
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Forced Distribution method
10% 20% 40% 20% 10%
poor Belowaverage
average good Excellent
No. of employees
Force distribution curve
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Field review methodPerformance subordinate peers superior customerDimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
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Performance criteria for executives For top managers
Return on capital employed Contribution to community development Degree of upward communication from
middle-level executives Degree of growth and expansion of
enterprise.
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For middle level managers
Departmental performance Coordination among employees Degree of upward communication from
supervisors Degree of clarity about corporate goals and
policies
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For supervisors Quality and quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period