Performance Appraisal

1. Performance Appraisal ByNaveed Chiragh

2. Performance Appraisal : Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members

3. 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 acceptable Or unacceptable performance Describes the Job relevant strengths and weakness of Each individual

4. Question arises? • Why do we measure performance? • Effective performance appraisal systems • How do we measure performance?

5. 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

6. 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

7. Appraisal Benefits (cont.) • Appraisals offer employees: • Direction • Feedback • Input • Motivation

8. Appraisal Benefits • Appraisals offer the company: • Documentation • Employee Development • Feedback • Legal protection • Motivation system

9. Why Appraisals Are Important • Recognizeaccomplishments • Guide progress • Improve performance

10. Why Important (cont.) • Review performance • Set goals • Identify problems • Discuss career advancement

11. Steps in performance appraisal Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose

12. Process of PA Setting performance standards Taking corrective standards Communicating standards Discussing results Measuring standards Comparing standards

13. Issues in appraisal system Formal and informal Appraisal Design? What methods? Whose performance? When to evaluate? Who are the raters? What problems? What to evaluate? How to solve?

14. What to evaluate? (Philip Model) H Problem children stars Potential Social citizen Planned separation L L H Performance

15. How PA contribute to firm’s competitive advantages Improving performance Making correct decision Values and behavior Competitive advantage Ensuring legal competence Minimizing dissatisfaction And turnover

16. Problems in performance appraisal • Errors In rating • Halo effects • Stereotyping • Central tendency • Constant error • Personal bias • Spill over effect

17. Problems in performance appraisal (Cont’d) • Incompetence • Negative approach • Multiple objectives • Resistance • Lack of knowledge

18. 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

19. Appraisals and Discrimination • Title VII • ADA • Other fair employment • Laws

20. 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

21. Appraisal Forms • Define performance expectations • Describe measurement tools • Use a rating system • Cover specific examples • Set measurable goals

22. Measure Performance • Measurement systems need to be: • Specific • Fair • Consistent • Clear • Useful

23. Measure Performance (cont.) Systems can be: • Numerical • Textual • Management by Objective (MBO) • Behavior oriented

24. Document Performance • Make sure documentation is objective • Document performance of all employees • Provide complete and accurate information • Document performance on a regular basis

25. Set Goals…. • Based on job requirements • Realistic • Measurable • Observable • Challenging • Prioritized

26. Employee Input • Employees take an active role: • Setting goals • Designing action plans • Identifying strengths and weaknesses • Employees participate in the PA meeting

27. Preparation Employees: • Review performance • Think about new goals

28. Preparation (cont.) Supervisors: • Review performance • Complete written appraisal • Think about new goals • Schedule time and place

29. Start the Meeting • Lay out agenda • Talk about money • Encourage input • Give good news first

30. During the Meeting Review performance: • Based on previous goals • Noting strengths and accomplishments • Identifying areas for improvement

31. Presentation Tips • Focus on the professional • Give objective examples • Invite response • Listen actively • Create “we” mentality

32. During the Meeting (cont.) • Set goals: Based on company goals • Building on areas that need improvement

33. End the Meeting • Encourage good performance • Lay out action plan • Communicate outcome of goals not met • Confirm understanding

34. Continuous Feedback • Formal appraisals • Informal appraisals • Open communication

35. Recognize Good Performance • Verbal • Public • Tangible • Monetary

36. Identify Poor Performance • Act early • Take the right approach • Deal with employee reaction • Handle continued poor performance

37. Discipline Poor Performance • Recognize problems • Talk with employee • Follow company policy

38. Handle Hard Cases • Reviewing highly emotional employees • Rating former peers

39. 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.

40. Performance Appraisal Methods • Individual Evaluation Methods • Confidential report • Essay evaluation • Critical incidents • Checklists • Graphic rating scale • Behaviorally anchored rating scale • MBO

41. Critical Incident method Ex: A fire, sudden breakdown, accident Workers reaction scale A informed the supervisor immediately 5 B Become anxious on loss of output 4 C tried to repair the machine 3 D Complained for poor maintenance 2 E was happy to forced test 1

42. Checklist method • Simple checklist method • Weighted checklist method • Forced choice method Simple checklist method: Is employee regular Y/N Is employee respected by subordinate Y/N Is employee helpful Y/N Does he follow instruction Y/N Does he keep the equipment in order Y/N

43. Weighted checklist method weights performance rating (scale 1 to 5 ) Regularity 0.5 Loyalty 1.5 Willing to help 1.5 Quality of work 1.5 Relationship 2.0

44. 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

45. 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 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale

46. Discontinuous Rating Scale Indifferent Enthusiastic Attitude No Interest Very enthusiastic Interested

47. 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

48. MBO Process • Set organizational goals • Defining performance target • Performance review • feedback

49. Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review technique Performance Appraisal Methods

50. Ranking method Employee Rank A 2 B 1 C 3 D 5 E 4