toupload.pptx performance appraisal in management
- 2. Introduction People have different abilities and aptitudes, leading to variations in performance. Differences exist in the quality and quantity of the same work completed by different individuals. Performance Appraisal is a method to evaluate employee performance in terms of quality, quantity, cost, and time.
- 3. Definition • According to Newstrom “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’. • Performance Appraisal (PA) is a systematic, periodic evaluation of an employee's job performance and productivity based on pre-established criteria and organizational goals.
- 4. OBJECTIVES Reflection and Feedback: Create opportunities for employee-supervisor discussions on performance and work environment. Performance Recognition: Acknowledge and encourage above-standard performance. Obstacle Removal: Identify and eliminate distractions and ineffective behaviors. Growth Areas: Pinpoint development opportunities for employees and the organization.
- 5. Principles Clear Objectives: Ensure appraisal objectives are communicated to all parties involved. Understanding of Results: Ensure appraisal results are clearly comprehended. Collaborative Development: Involve employees at all levels in creating appraisal processes and tools. Supervisor Training: Provide supervisors with education and training on the appraisal process and tools.
- 6. Principles Organizational Value: Ensure the appraisal process is recognized and valued by the organization. Consistency: Maintain a consistent approach to the appraisal process. Observe Work Activities: Review a representative sample of the employee's job activities to ensure a comprehensive evaluation of their job behavior. Prioritize Improvement Areas: Highlight and prioritize key job areas requiring improvement.
- 7. Principles Compare Evaluations: Align the supervisor’s evaluation with the employee’s self-assessment. Provide Specific Examples: Use specific instances of satisfactory and unsatisfactory performance to substantiate evaluation statements in the performance appraisal
- 8. Purpose Provide data for salary adjustments, promotions, transfers, or terminations. Assess the effectiveness of hiring and employment tests. Offer constructive feedback to improve work performance. Reconcile employee aspirations with organizational objectives. Acknowledge and celebrate employee accomplishments.
- 9. Process of Performance Appraisal Establishing Performance Standards Communicatin g Standards and Expectation Measuring the actual performance Comparing with Standards Discussing results and Providing Feedback Decision making and taking corrective actions
- 10. Establish Performance Standards Define clear benchmarks aligned with desired job outcomes. Ensure criteria are clear to both appraiser and appraisee. Develop standards based on thorough job analysis. Write measurable goals with specific time and cost parameters.
- 11. Communicate the Standards Clearly define and share job descriptions with the appraisee. Assist the appraisee in setting goals and targets. Analyze results objectively and provide coaching as needed. Recognize and reward good performance.
- 12. Communicate the Standards Ensure the appraiser understands the purpose and process of appraisal. Gather initial feedback from the appraisee on the standards. Revise or modify standards when necessary.
- 13. Measure Actual Performance • Use reliable and easy-to-use performance measures. • Focus on critical behaviors affecting performance. • Utilize four key information sources: Personal Observation Statistical Reports Oral Reports Written Reports
- 14. Compare Actual Performance with Standards • Evaluate if performance meets, exceeds, or falls short of expectations. • Recognize the complexity and emotional impact of assessing others. • Avoid reliance on subjective criteria to ensure fairness. • Minimize negative outcomes by providing constructive and balanced feedback.
- 15. Discuss Differences Identify major gaps between actual performance and standards. Review differences with management. Discuss discrepancies with the employee or team.
- 16. Corrective Action • Immediate Action: Resolves issues quickly to get performance back on track. • Basic Corrective Action: Addresses root causes of performance deviations and implements permanent adjustments. • Focus on identifying how and why performance deviates.
- 17. Performance Appraisal Team HR Manager / HR Representative Direct Supervisor Employee (Self-Appraisal) Peer Evaluators Appraisal Coordinator
- 18. Role of Performance Appraisal Team • HR Manager / HR Representative • Oversees the entire performance appraisal process, ensuring it aligns with organizational policies and goals. • Ensure the process is fair, unbiased, and transparent. • Collect, analyze, and interpret appraisal data. • Maintain records of appraisals for future reference and promotions.
- 19. Role of Direct Supervisor • Directly involved in evaluating the employee's performance, providing feedback, and making decisions • Assess the employee's job performance based on predefined criteria. • Provide constructive feedback on strengths and areas for improvement. • Set performance goals and action plans. • Discuss career development with employees.
- 20. Employee (Self- Appraisal) • Conduct a self-assessment to reflect on strengths and areas for improvement. • Complete a self-appraisal to evaluate performance. • Highlight personal achievements, challenges, and learning experiences. • Set goals for growth and development. • Share insights into the work environment and challenges faced.
- 21. Peer Evaluators • Gather insights from colleagues who work closely with the employee. • Provide feedback on the employee’s teamwork and collaboration. • Highlight strengths and weaknesses unnoticed by the manager. • Assess the employee’s interpersonal and professional skills.
- 22. Appraisal Coordinator • Coordinate the appraisal process: Ensure timely completion and consistency • Gather feedback: Collect appraisal forms and input from relevant stakeholders. • Meet deadlines: Ensure appraisals are completed within set timelines. • Analyze and improve: Track performance trends and recommend process improvements.
- 24. Traditional Methods Essay method Graphic rating scale Checklist Critical incidents Field review Rating Ranking
- 25. Essay method • The evaluator writes a paragraph or more about employee • Highlights the employee's strengths and potential. • Focus on performance in relation to their job description. • Include relevant personal characteristics (e.g., teamwork, motivation for growth). • Ensure the content reflects their overall impact and contributions.
- 26. Essay method • Advantages • In depth analysis of performance • Identifies training & development needs & problem areas • Disadvantages • Time consuming • Vary greatly in length and content • Difficult to combine and compare
- 27. Graphic rating scale • A numerical value is assigned to each dimensions of performance • Indicates judgments ranging from satisfactory to unsatisfactory • Advantages • More consistent & reliable than essay • Acceptable to raters • Easy to construct
- 28. Graphic rating scale • Disadvantages • No in depth of information
- 29. Checklist • A method of recording whether a characteristic is present or absent • An action is taken or not • A simple Yes or No • Advantages • Evaluation of large number of employees
- 30. Checklist • Disadvantages • Difficult to construct
- 31. Field review • The appraiser visits the field to assess employee performance. • Information is gathered through direct questioning. • Sources include the employee, their peers, and their supervisor. • Focus is on obtaining a comprehensive view of work performance.
- 32. Field review •Advantages • Group judgment seems to be more fair • Disadvantages • Time consuming
- 33. Rating method • The rater selects statements that best fit and least fit the individual being rated. • Statements are grouped for easier selection. • Each statement is assigned a weight or score. • Ratings are calculated based on the weighted scores.
- 34. Rating method •Advantages • Reduce bias since the rater does not know the scoring value for each statement • Disadvantages Costly to develop
- 35. Critical incidence method • Supervisors collect and record critical instances of employee performance. • Focus is on actions crucial to job success or failure. • Instances are documented over time. • Reviewed with employees during scheduled feedback sessions.
- 36. Critical incidence method Advantages • Performance is rated instead of personality traits. • Enables supervisors to provide more effective coaching. • Facilitates clear communication of appraisal results to subordinates.
- 37. Critical incidence method • Disadvantages Difficult to accomplish Time consuming
- 38. Ranking method •The two most common ranking methods are:- Alternation ranking Paired comparison ranking
- 39. Ranking method Alternation ranking • Employee names are listed randomly on the left side of a sheet. • The supervisor selects the most valuable employee and places their name at the top of the right column. • The least valuable employee is placed at the bottom of the right column. • The process continues with the most and least valuable from the remaining list. • Results in an order of merit ranking.
- 40. Ranking method Paired Comparison ranking • Employee names are listed on the left side. • Employees are compared based on specific criteria. • Tally marks are recorded for each employee during comparisons. • The employee with the most tallies is deemed the most valuable. • The employee with no tallies is considered the least valuable.
- 41. Ranking method Advantages • Useful for decisions on salary administration, promotion, and selection. • Particularly effective when conducted independently by multiple raters. • Results from different raters are combined for a comprehensive assessment. Disadvantages • Time consuming
- 42. Modern Appraisal Methods • 360-degree appraisal method • 720-degree appraisal Method • Psychological appraisal • Management by objectives (MBO) • Assessment Centre Method • Behaviorally anchored rating scale bars • Human Resource appraisal methods
- 43. 360-degree Feedback • Evaluates employees using feedback from various sources, including managers, peers, customers, and clients. • Ensures unbiased reviews by considering multiple perspectives. • Provides a comprehensive understanding of the employee’s skills, behaviors, and abilities. • Helps identify areas for employee growth and training needs.
- 44. 360-degree Feedback Advantages • Employees are aware that their performance is monitored by stakeholders. • Motivates employees to engage in career and self-development. • Enhances employee engagement and commitment.
- 45. 360-degree Feedback Disadvantages: • Lack of planning • Cultural differences • Competitiveness • Delay or misguided feedback
- 46. 720-degree Method • Involves feedback from internal and external stakeholders (investors, clients, suppliers). • Analyzes the company's overall success. • Promotes synergy and teamwork in the workplace. • Enhances organizational productivity.
- 47. 720-degree Method Advantages: • Enables better analysis of performance across multiple elements. • Provides accurate and constructive feedback. • Builds a cooperative and high-performing team. • Encourages transparency in the appraisal process.
- 48. 720-degree Method Disadvantages: • Majority of reviewers thinks this is the tedious method. • Focus more on weaknesses instead of strengths.
- 49. Psychological Appraisals • Analyzes employees’ performance based on various elements: Intellectual Traits Interpersonal Skills Personality Traits Cognitive Abilities Leadership Skills Emotional Quotient (EQ) • Uncovers untapped strengths and abilities. • Emphasizes predicting and enhancing future success.
- 50. Psychological Appraisals Advantages: • Extracts measurable data to identify employee potential alongside performance. • Easy to deploy and provides a platform for introverted employees to showcase their strengths. Disadvantages: • The process is slow and complex. • Need involvement of psychologist to conduct various tests.
- 51. Management by Objectives (MBO) •Staff and managers work together to identify, organize, and communicate objectives. •Objectives are validated using the SMART method: clear, achievable, time-sensitive, measurable, and realistic. •Managers periodically check progress and assess the feasibility of achieving goals.
- 52. Management by Objectives (MBO) •Employees are reviewed based on results; success leads to rewards (salary hikes/promotions), while failure leads to further training. •The performance evaluation process focuses on aiding employee performance in a constructive, non-punitive manner.
- 53. Management by Objectives Advantages: • Improves employees’ commitment towards the business • Increase probability for goal accomplishments • Make employees future-ready • It avoids the problem of criticism by employees that are being judged by unfairly high standards. • It encourages employees’ participation in setting their own work goals.
- 54. Management by Objectives Disadvantages: • Less involvement of senior management • Un-measurable and unclear objectives • Employee’s goals may not coincide with management. • Employees may not always want to be involved in their goal setting.
- 55. Assessment Centre Method •Introduced in 1930 and updated to fit modern work culture. •Employees gain insight into how others perceive them, impacting their performance. •Evaluates current performance and predicts future job performance. •Employees participate in social-simulation activities to assess success in the role.
- 56. Assessment Centre Method •Primarily used to evaluate the potential of supervisors and executives. •Reviewed by senior management, with support from HR and psychologists. •Employees engage in exercises, simulations, work groups, and role- playing crucial to actual job success. •Reviewers provide feedback on strengths and weaknesses based on gathered information.
- 57. Assessment Centre Method Advantages: • Enhance employee’s thought process and boost employee efficiency • Tailored to fit different business needs and different roles • Improves an individual’s personality and skills • Minimum chance for biasedness
- 58. Assessment Centre Method Disadvantages: • Difficult to carry out! • Cost and time intensive process • Discourage poor performers • Creates unhealthy competition at the workplace
- 59. Behaviorally Anchored Rating Scales (BARS) •Provides both quantitative and qualitative benefits for performance appraisal. •Involves statements describing common employee behaviors to measure performance against predefined standards. •Offers more equitable appraisals compared to other methods.
- 60. Behaviorally Anchored Rating Scales (BARS) •Follows five steps:
- 61. Behaviorally Anchored Rating Scales (BARS) Advantages: • Clear standards are defined, analyze performance accurately and enhanced feedback process. • Focus more on observable and specific behaviors instead of irrelevant variance rating. • Eliminate chances of biased reviews and keep the process fair and transparent!
- 62. Behaviorally Anchored Rating Scales (BARS) Disadvantages: • Difficult to make decisions regarding promotion and salary increments • Time-consuming and demands more from seniors
- 63. Human Resource Accounting Method • Analyzes employee performance based on the monetary benefits they contribute to the organization. • Considers factors such as quality, interpersonal relationships, overhead costs, and more. • Links performance to tangible business outcomes, helping assess the overall impact of employees.
- 64. Human Resource Accounting Method Advantages: • Accurately calculates the value employees bring to the company. Disadvantages: • This method is money-consuming and need good memory and strong analytical skills of the reviewer.
- 65. ADVANTAGES OF PERFORMANCE APPRAISAL • Promotion • Compensation • Employees Development • Selection Validation • Communication • Building Trust • Improving Relationships • Boosting Morale
- 66. DISADVANTAGES OF PERFORMANCE APPRAISAL • One Sided Input • Forms Only Give Quantitative or Qualitative Data • Once-a-Year Raises • Halo Effect • Horn effects • Central Tendency error
- 67. OBSTACLES TO EFFECTIVE PERFORMANCE • Lack of Top Management Support • Time-consuming process. • Lack of understanding of goals and procedures. • Insufficient appraisal skills. • Biases and Errors • Poor Communication • Inadequate Tools
- 68. Conclusion Performance appraisal justice enhances employee job performance, with work engagement and organizational identification acting as mediators. Fair appraisals foster stronger organizational identification and higher engagement, leading to improved performance. Organizations can boost employee productivity and achieve long-term success by ensuring a fair appraisal system.
- 69. Conclusion- Performance appraisal plays a vital role in HR management, directly influencing nurses' job satisfaction. 70% believed it supports career goals, and 67% saw it as a platform for constructive criticism. Additionally, 69% reported improved performance post-appraisal, while 68% felt it enhanced job satisfaction and motivation. The Ministry of Health should establish clear policies and strategies to enhance appraisal effectiveness and job satisfaction.
- 71. Conclusion • Performance appraisal is an established management practice that assesses employees based on their work rather than personal traits. Unlike traditional merit rating, which ranks individuals based on qualities like initiative and dependability, modern appraisal systems focus on measurable performance. Evaluations can be conducted by supervisors, peers, subordinates, or through self-assessment.