Principles of Management - Performance Appraisal methods
- 1. Denin P Davis Roll No. : 12
- 2. Performance Appraisal Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Performance appraisal, is the ongoing process of evaluating employee performance.
- 3. Performance Appraisal Performance appraisal deals with how organizations evaluate and measures its employees achievements and behaviors. It is an employee review by his manager where his work performance is evaluated and strengths and weaknesses are identified so that the employee knows his improvement areas.
- 4. Performance Appraisal Methods • Individual Evaluation Methods • Multiple Person Evaluation Methods • Other Methods
- 5. Confidential report Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc.
- 6. Confidential report • Prepared at the end of the year • Prepared by the employee’s immediate supervisor • The report highlights the strengths and weaknesses of employees • Prepared in Government organizations • Does not offer any feedback to the employee
- 7. Confidential report The system is highly secretive and confidential. Feedback to the assesse is given only in case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like promotions etc.
- 8. Essay evaluation method In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staff’s behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method graphic rating scale.
- 9. Essay evaluation method • Job knowledge and potential of the employee Input of info. sources • Employee’s understanding of the company’s programs, policies, objectives, etc. • The employee’s relations with co-workers and superiors • The employee’s general planning, organizing and controlling ability • The attitudes and perceptions of the employee, in general
- 10. Essay evaluation method • Manager / supervisor may write a biased essay • A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker. • If rater takes a long time, this becomes uneconomical from the view point of the firm, because the time of rater is costly. • Some evaluators may be poor in writing essays on employee performance. Disadvantages
- 11. Critical incidents This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period.
- 12. Critical incidents • Identifying and describing specific incidents • Manager maintains logs on each employee • Periodically records critical incidents of employee’s behavior • It is based on logs that in the evaluation form • Evaluates the worker performance at end of rating period • Critical incidents file reflect all data about employee performances
- 13. Critical incidents Disadvantages • Negative incidents may be more noticeable than positive incidents • Results in very close supervision which may not be liked by the employee • Managers may be too busy or forget to record incidents
- 14. Checklist method • Simple checklist method • Weighted checklist method • Forced choice method
- 15. 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
- 16. Weighted checklist method Performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs.
- 17. Weighted checklist method • HR department and Managers / Supervisors will set up checklist for each position. • If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. Process
- 18. Weighted checklist method Pros and cons • Helps to evaluate the performance of the employee. • Rater may be biased • This method is expensive and time consuming • Difficult for the manager to assemble, analyze
- 19. 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
- 20. BARS Behaviorally anchored rating scales is formatted performance appraisal which is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff.
- 21. BARS Each behavior can rate at one of 7 scales as follows • Extremely poor (1 points) • Poor (2 points) • Below average (3 points) • Average (4 points) • Above average (5 points) • Good (6 points) • Extremely good (7 points) Rating scales
- 22. Graphic rating scales This method is considered as the oldest and most popular method to assess the employee’s performance. In this style of performance appraisal, the management just simply does checks on the performance levels of their staff.
- 23. Graphic rating scales • Dependability • Attitude, Initiative • Neatness and accuracy of work Content of appraisal • Volume of work under normal working conditions • Willingness & ability to work with others for achieving goals
- 24. Graphic rating scales Rating scales can include 5 elements as follows Unsatisfactory Fair Satisfactory Good Outstanding Rating scales
- 26. Graphic rating scales • Graphic rating scales are less time consuming to develop • They also allow for quantitative comparison • Different supervisors will use the same graphic scales in slightly different ways • More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors Content of appraisal
- 27. Management by Objective (MBO) MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them.
- 28. Management by Objective (MBO) Classification of Objectives • Corporate objectives • Functional objectives • Individual objectives
- 29. Management by Objective (MBO) • It is based on the assumption that the individual (employee) knows more than anyone else about her/his own capabilities, needs, strengths, weaknesses and goals. • A further advantage of MBO is that the emphasis is on the future rather than on the past. Advantages
- 30. Forced ranking method In this style of performance appraisal, employees are ranked in terms of forced allocations. For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one.
- 31. Forced ranking method • They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group. • They create and sustain a high performance culture in which the workforce continuously improves. Advantages
- 32. Forced ranking method • They increase unhealthy cut-throat competitiveness • They discourage collaboration and teamwork • They harm morale Disadvantages
- 33. Thanks