performance and potential appraisal
TRANSCRIPT
Writa Bhattacharjee
PERFORMANCE AND POTENTIAL APPRAISAL
Understanding Performance Appraisal System
Types of Performance Appraisal SystemsPotential Appraisal
AGENDA
UNDERSTANDING PERFORMANCE APPRAISAL SYSTEMSSection 1
What gets measured, gets performed.Part of the Performance Management ProcessEvaluating an employee’s current or past
performance relative to his or her performance standards and also against that of other employees.
Requirements of effective Appraisal systems:RelevanceSensitivityReliabilityAcceptabilityPracticality
WHAT IS PERFORMANCE APPRAISAL?
PROCESS OF PERFORMANCE APPRAISAL
ESTABLISH PERFORMANCE STANDARDS
COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES
MEASURE ACTUAL PERFORMANCE
COMPARE ACTUAL PERFORMANCE WITH STANDARDS
DISCUSS THE APPRAISAL WITH THE EMPLOYEE
IF NECESSARY, INITIATE CORRECTIVE ACTION
Setting Goals: SMART goalsChallenging but doable goalsEncourage participation
Appraisal InterviewTypes: Satisfactory-Promotable, Satisfactory-Not
Promotable, Unsatisfactory-Correctable, Unsatisfactory- Uncorrectable
How to conduct- Objective, Impersonal, Encourage to talk, Direct
Handling Defensive subordinatesCriticizing a subordinate
PROCESS OF PERFORMANCE APPRAISAL
What?- Factors AppraisedWho?- Who appraisesWhy?- Objectives of PA systemWhen?- FrequencyHow?- Methods
COMPONENTS OF PERFORMANCE APPRAISAL SYSTEM
Generic dimensionsJob’s actual dutiesCompetencies/ behaviour
FACTORS APPRAISED
Immediate supervisorPeersRating committeesSelf-ratingsSubordinatesCustomers
WHO APPRAISES
Role in PMSSatisfactory performance levelDevelopmental planCareer planningRaise and promotionValidation for hiring practicesDiagnose organizational problems
OBJECTIVES / PURPOSES OF PA
Formal appraisal- traditionally- once or twice a year
Far too infrequentFormal plu7s regular informal conversationsNew employees- more frequent- confirmation
FREQUENCY
Unclear standardsHalo ErrorContrast ErrorRecency ErrorCentral TndencyLeniency/strictnessBias
APPRAISAL ERRORS
TYPES OF PERFORMANCE APPRAISAL SYSTEMS
Section 2
Traditional MethodsRankingPaired comparisonGradingGraphic or linear rating
scalesForced Distribution
MethodChecklist systemFree form essay
methodCritical Incidents
Assessment CentreBARSMBO360 degree
TYPES OF PA METHODS
Modern Methods
Each employee is compared on traits with every other employee in pairs.
Results for each employee are tallied and this yields the rank order for the entire group
No. of comparisons given by [N(N-1)]/2, where N is the number of employees.
Advantages-?Disadvantages-?
PAIRED COMPARISON
Ranking employees from best to worst on a trait or traits or as ‘the whole person’
Either Straight or AlternateStraight- From Best employee downwards to
worstAlternate- Best employee, then worst, then
second-best, etc.Advantages-?Disadvantages-?
RANKING
Rater considers certain features or traits and marks them according to a scale.
Attributes are established and carefully defined on a scale, with attached grades.
Advantages-?Disadvantages-?
GRADING
Traits are listed with a range of performance values for each trait, with numerical values assigned to each performance level.
Assigned values are then totalled.Advantages-?Disadvantages-?
GRAPHIC OR LINEAR RATING SCALE
Similar to GradingPlace predetermined percentages of ratees
into performance categoriesAdvantages-?Disadvantages-?
FORCED DISTRIBUTION
Rater does not evaluate ratee- personnel department evaluates- rater provides report
Yes/No options for behaviours displayedValues of questions- equal or weightedUse of Likert scale or descriptive optionsAdvantages-?Disadvantages-?
CHECKLIST SYSTEM
Free-form, open ended appraisalDescriptive, qualitativeDetailed feedbackAdvantages-?Disadvantages-?
FREE FORM / NARRATIVE ESSAY
Supervisor keeps a log of positive and negative examples- critical incidents
Critical incidents basis of appraisalAdvantages-?Disadvantages-?
CRITICAL INCIDENT METHOD
Not a ‘place’Battery of tests to evaluate competenciesMultiple assessors, multiple testsAdvantages-?Disadvantages-?
ASSESSMENT CENTRE
Behaviourally Anchored Rating ScalesCombines Critical Inicdent and Graphic
Rating Scales methodsScales with aligned critical incidents for
distinct performance dimensionsAdvantgaes-?Disadvantages-?
BARS
Setting specific, measurable goals with each employee and then periodically reviewing the progress made
Measure of each employee’s contribution to organization’s performance
Advantages-?Disadvantages-?
MBO
“All round” collection of performance dataAppraisal by superiors, subordinates, peers
and customersCompiled resultAdvantages-?Disadvantages-?
MULTI-RATER OR 360 DEGREE
POTENTIAL APPRAISAL
Section 3
Potential is different from performancePromote for potentialProblems of promoting for performanceFuture organizational needsPotential- latent qualities that manifest in
concrete terms while performing various jobs/tasks
WHAT IS POTENTIAL APPRAISAL?
Assess capacity to work in future without being overstretched
Assist organization in succession planning
OBJECTIVES OF POTENTIAL APPRAISAL
Role DescriptionsQualities needed to perform the rolesRating mechanisms:
Rating by othersTestsGamesRecords
Organizing the system:Merit vs. seniority weightageWeightage to managerial skills- T,I,CMechanisms for assessing on indicators, with reliability
Feedback
STEPS IN POTENTIAL APPRAISAL
POTENTIAL ATTRIBUTESAnalytical powerCreative imaginationSense of realityCapability of taking
holistic view from a detached position
Effective leadershipConceptual skillsTechnical skillsCommercial skillsCommunication skills
Planning and organizing ability
Willingness to take additional responsibility
InitiativeResult orientationTeamwork and team
buildingSubordinate developmentNegotiation skillsProblem solving and
decision makingProcess orientation
Managing Human Resources- Wayne F. Cascio
Human Resource Management- Gary DesslerA Textbook of Human Resource Management-
C. B. Mamoria & S. V. GankarHuman Resource Management- Biswajeet
Pattanayakwww.openlearningworld.com
REFERENCES
Questions?
THANK YOU