PAD214PAD214INTRODUCTION TO PUBLIC INTRODUCTION TO PUBLIC

PERSONNEL ADMINISTRATIONPERSONNEL ADMINISTRATION

LESSON 9PERFORMANCE APPRAISAL &

PROMOTION

INTRODUCTION

One of the importance issue that normally faced by any organization is how to maintain and measure employees competencies. Developing an effective performance appraisal system has been a high priority for human resource management. Performance appraisal can be used for many purposes and the primary goal of an appraisal system is to improve individual employee and organizational performance.

OBJECTIVES OF THIS LECTUREUpon completing this chapter student should be

able to:• Understand the concept performance appraisal• Describe the purpose of performance appraisal• Describe performance appraisal criteria• Describe the methods used to evaluate

employee performance• Understand the problems in evaluating

employee performance

Definition

• Performance appraisal is the HRM activity that is used to determine the extent to which an employee is performing the job effectively

• Performance appraisal is a continuing assessment of an individual employee’s effectiveness or adequacy in the work performed and his potential for the future.

• Performance appraisal is the systematic, periodic evaluation of employee’s effectiveness or adequacy in the work performed and his potential for the future.

The purposes of performance appraisal

• Development – used to determine which employee need training

• Compensation adjustment – used to decide who should receive pay raises and bonuses

• Motivation –used to develop a sense of responsibility and stimulate effort to performance better

• Placement decision – used to determine promotion, transfer and demotion decisions

• Employment planning – used to prepare HRP• Job design – used to restructuring the job

Performance appraisal criteria• Quantity of work – volume of acceptable work• Quality of work – neatness and accuracy of work• Knowledge of job – clear understanding of the facts

pertinent to the job• Personal qualities – personality , leadership• Cooperation – ability and willingness to work with

associates• Dependability – ability to work independently • Initiative – extra effort • Earnestness in seeking increased responsibility

The methods for evaluating employee performance

• The 360-degree evaluationA multi-rater evaluation that involves input from multiple levels within the firm and external sources as well.

• Graphic Rating ScaleGraphic Rating Scale requires the evaluator to provide an objective evaluation of individual’s performance along a scale from low to high. It uses standard format of appraisal form. The evaluator rates employee according to defined factors.

• Narrative MethodSubjective evaluation and requires a long written analysis

• Ranking MethodIt is a job evaluation method in which the evaluator simply places all employees from a group in rank order of overall performance.

The problems• Appraiser Errors

– Leniency and harshness– Central tendency errors– Halo effect– Personal bias– Bias and favouritism

• System design and Operating Problems– Poorly designed– Some evaluation techniques take a long time to carry out– Require extensive written analysis

• Employees’ problem– Employees do not understand the system – Employees are not work-oriented– Evaluation may be below the employees’ expectations

TUTORIAL– Explain the objective of performance appraisal– Briefly describe each of the following methods

of performance appraisal• Rating scale• Critical incidents• Essay• Work standard• Ranking• Force distribution• Result-based system• 360-degree feedback

PROMOTION

• Promotion is a process of upgrading of an employee from a job to another position that is higher in pay, responsibility and organizational level.Eg: from Assistant Manager to Manager

The purposes of promotion

• As a recognition of an employee’s past performance

• As a reward of an employee’s achievement• As a method to motivate employee to strive

for excellent or a method of a career development program

• As a method to fill job vacancies ( higher post)

The principles of promotion

• MERIT-BASED PROMOTIONMerit –based promotion is used when an employee is promoted because of superior performance in the current job. When promotion is mostly “reward” for past effort and success.

• The problem of merit-based promotion– Whether decision makers can objectively distinguish

strong performers and weak ones.– Peter Principle – in a hierarchy people to raise their

level of incompetence.– Difficulties in measuring the merits.

• SENIORITY-BASED PROMOTIONSeniority-based promotions use the principle that the most senior employee or the employee who has the longest length of service with the employer gets the promotion

• The advantages of seniority-based promotion– Objective – compare the seniority records of the

candidates to determine who should be promoted– Eliminates biased promotions– Eliminates frustration among senior employees

• The disadvantage of seniority-based promotions is that it de-motivate new and active employees. “Waiting the dead men’s shoes”

THAT ALL FOR TODAY

SEE YOU AGAIN NEXT LECTURE

LESSON 10 COMPENSATION