ASSIGNMENT NO: 2

PERFORMANCE APPRASIAL

HUMAN RESOURCE MANAGEMENT (MGMT2013)

ASSIGNED BY: PROF. GHULAM QAMBAR

ASSIGNED TO:

Fatima Mehmood L1 F09MBAM0037

Beenish Sattar L1F09MBAM2031

Punjab College of Business Administration (PCBA)

University Of Central Punjab (UCP)

Lahore

APPRAISAL:

A valuation by an authorized person; an appraisement.

Or

An assessment or estimation of the worth, value, or quality of a person or thing

Methods of Performance Appraisal:

Graphic Rating Scale Behaviourally Anchored Rating Scale Narrative

Forms

Graphic Rating Scale:

A scale that lists a number of traits and a range of performance for each that is used to identify thescore that best describes an employee’s level of performance for each trait.

The Rating Scale is a form on which the manager simply checks off the employee’s level of performance.

This is the oldest and most widely method used for performance appraisal.

Behaviorally Anchored Rating Scale:

This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.

It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

Methods of Performance Appraisal

Graphic Rating Scale

Behaviourally Anchored Rating Scale Narrative Forms

Narrative Forms:

In this method Supervisors can write a summary, which accurately describes their employee's performance.

PERFORMANCE APPRAISAL OF A FINANCE MANAGER

Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance.

There are two primary purposes of performance appraisal: evaluative and developmental.

The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance.

The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development.

The purpose of performance appraisal must be clearly communicated both to raters and rates, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.

WHY DO WE DO PERFORMNCE APPRASIAL?

Finding out the level of te performance of the employee and deciding and awarding appropriate motivated packages to the employee.

Finding out the competency gaps of the employee as compared the competencies they should have.

Identify the area of strength and weakness and working out appropriate interventions for employee training and development.

Helps in employee’s effectiveness and efficiency.

GRAPHIC RATING METHOD:

The Rating Scale is a form on which the manager simply checks off the employee’s level of performance.This is the oldest and most widely method used for performance appraisal.

PERFORMANCE RATING FORM

Employee name: Khalid Ismail Title: Finance Manager

Department: Finance Employee payroll number: 0006

Immediate supervisor: Abdullah Omar Grade: 19

Reasons for review

Annual Promotion

Salary IncreaseEnd Of Probation Period

Date of appraisal:

Last Appraisal Date: _______________ Current Appraisal Date _______________________

Rating identification:

1) O----Outstanding:

Performance is exceptional in all areas and is recognizable as being for superiors to others.

2) V-----Very Good:

Results clearly exceed most position requirements. Performance is of high quality and is achieved on a consistent basis.

3) G------Good:

Competent and dependable level of performance. Meets performance standards of the job

4) I ------Improvement Needed:

Performance is deficient in certain areas. Improvement is necessary.

5) U-----Unsatisfactory:

Results are generally unacceptable and require immediate improvement. No merit increase should be granted to individuals with this rating.

6) N-----Not Rated:

Not applicable or too soon to rate.

GENERAL FACTORS RATING SCALE SUPPORTIVE DETAILS OR COMMENTS

1).Quality-the accuracy, thoroughness and acceptability of work performed

O VGIU

√ 100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Develops and implements new solutions, procedures and concepts 92

2).Productivity- the quantity and efficiency of work produced in a specified period of time

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Completes assignments on time and to specifications√

85

3).Job knowledge-the practical/technical skills and information used on the job

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Maintains up-to-date job related information√

83

4).Reliability- the extent to which an employee can be relied upon regarding task completion and follow up

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Complete the task √

82

5).Adaptability-Efficiency with which employee works under stress and responds to change.

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Shows poise and courtesy in tough situationsReceptive to change/new ideas

√87

6).Motivation-Degree to which the employee pursues

O V

100 – 9090 – 80

Points Demonstrate self confidence and positive attitude towards

goals with commitment and takes pride in accomplishment.

GIU

80 – 70 70 – 60 Below 60

74 self and others Works steadily and actively

√

7).Attendance-The extent to which the employee can be depended upon to be available for work and to fulfill position responsibilities

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Communicates schedule changes promptly to supervisorReports to work on time

74√

8).Communication-Extent to which the employee effectively listens conveys and receives ideas, information and direction.

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Makes oral and written communication clear and easy to understand72√

9).Creativity-Extent to which employee generates innovative ideas, concepts and techniques.

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Looks for new solutions to old problems√

89

10).Customer Focus-degree to which the employee takes the initiative to meet internal and external customer needs in a timely manner

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Examines customer requests to properly identify and resolve customer concerns

√82

11).Customer Service-degree to

O 100 – 90 Points Responds to customer requests on contact date or within 24 hours

Which the employee represents the university community in a positive, professional manner.

VGIU

√90 – 8080 – 70 70 – 60 Below 60

75

12).Dependability/Initiative- The extent to which an employee effectively accomplishes assignments with minimal supervision.

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Independently contributes ideas and projects

65√

13).Judgment-Ability to analyze problems or procedures, evaluate alternatives, and select best course of action

O VGIU

100 – 9090 – 8080 – 70 70 – 60 Below 60

Points Uses of logic and common sense in decision makingMakes appropriate decisions

√85

14).Time ManagementThe ability to adhere to one's responsibilities in a timely manner.

O VGI

√ 100 – 9090 – 8080 – 70 70 – 60

Points Meets deadlines

92

U Below 60

Teacher Signature: Date:

Observer/Evaluator Signature: Date:

Advantages of the rating scales

• Graphic rating scales are less time consuming to develop.• They also allow for quantitative comparison

Disadvantages of the rating scales

• Different supervisors will use the same graphic scales in slightly different ways.• One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed.• More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors.

NARRATIVE FORM OF PERFORMANCE APPRAISAL

In this method of appraisal we narrate the performance instead of applying weights.

Job knowledge He Acts as a resource person and provides the

professional leadership necessary for achieving

the goal.

He is able to answer difficult questions

He effectively learns new skills

He maintains up-to-date job related

information

He implements new techniques, when

necessary and Anticipates need for new

policies and takes appropriate action to ensure

Its development.

Quality of work He develops and implements new solutions, procedures and concepts

He demonstrates accuracy, thoroughness, and reliability

He shows completeness

He pays attention to detail

He tries to consistently delivers what is required

Productivity He attains conclusive measurable results

He maintains control and work pace

He completes assignments on time and to specifications

Reliability He is a reliable finance manager.

He works cooperatively and effectively with others to achieve goals

His sincerity level is very good. He is very sincere to his work.

Motivation He is not confident to takes initiative

He often demonstrates orientation to achieve results

His behavior towards work reflects a desire to excel on the job

He tries to demonstrates self-confidence and positive attitude towards self and others

Adaptability He demonstrates the ability to meet special

needs or address specials situations within

guidelines or policies.

He shows courtesy in tough situations

He possesses ability to modify behavioral

style and approach to goal

Communication He seeks to confirm unfamiliar or vague terms and instructions

He makes oral and written communication clear and easy to understand

Attendance He reports work on time

He communicates schedule changes promptly to supervisor

He maintains regular attendance but sometimes late

.

Creativity/ innovations He also attempts to simplify procedures and techniques

He looks for new solutions to old problems

He is Receptive to learning and applying new

ideas.

He also suggests improved approaches to the

job.

Time Management He does not differentiate between priorities

and as a result operates in a

Perpetual crisis atmosphere.

He tries to meets deadlines

Judgment He uses logic and common sense in decision making

BEHAVIORALLY ANCHORED RATING SCALE METHOD

ADVANTAGES AND DISADVANTAGES:

• This method are very useful and exactly.• It is very difficult to develop this method because you need to identify what is “good level” etc.

Developing BARS:

Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument

In this method we are rating the factors from 1 to 9 and taking these factors as Dimensions for

the Critical incident and the points are given out of 100 in accordance to the performance level

and with the help of these we can evaluate the performance of the employee for the period.

RATING FACTORS DESCRIPTION POINTS

9 Job knowledge job knowledge is the

most important factor

so it is on the highest

rank

83*9=747

8.5 Punctuality/

attendance

It is the second most

important factor

74*8.5=629

8 Communication skills He must have good

communication skills

to interact with others

72*8=576

both externally and

internally

7 Quality of work He must produce

quality work

92*7=644

7.5 Innovations/creativity The finance manager

should be innovative

89*7.5=667.5

7 Reliability The manager should

be reliable

82*7=574

8 Productivity He should be able to

complete assignment

on time

85*8=680

6.7 Customer Focus Customer focus is

important for goal

attainment

82*6.7=549.4

7 Motivation He should be able to

motivate its sub-

ordinates

74*7=518

7 Adaptability A manager should be

able to adapt things

87*7=609

8 Time management Time management for

finance manager is

very important

92*8=736

Total points 6929.9 out of 8370

Overall Performance:

Overall performance in BARS Scale method is 82.79% which indicates that the employee’s

overall performance is very good.