Pa3
- 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 Recognize accomplishments 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 Discussing results Comparing standards Measuring standards Communicating standards
- 13. 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?
- 14. What to evaluate? (Philip Model) Problem children Planned separation stars Social citizen H L H L Potential Performance
- 15. How PA contribute to firm’s competitive advantages Improving performance Making correct decision Ensuring legal competence Minimizing dissatisfaction And turnover Values and behavior Competitive advantage
- 16. Problems in performance appraisal Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
- 17. Incompetence Negative approach Multiple objectives Resistance Lack of knowledge Problems in performance appraisal (Cont’d)
- 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 Attitude No Interest Indifferent Interested Enthusiastic Very enthusiastic
- 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
- 51. Paired comparison method A B C D E Final Rank A - - - + + 3 B + - - + + 2 C + + - + + 1 D - - - - + 4 E - - - - - 5 No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
- 52. Forced Distribution method 10% 20% 40% 20% 10% poor Below average average good Excellent No. of employees Force distribution curve
- 53. Field review method Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
- 54. 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.
- 55. For middle level managers Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
- 56. 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