PAD214 INTRODUCTION TO PUBLIC PERSONNEL ADMINISTRATION LESSON 9 PERFORMANCE APPRAISAL & PROMOTION

INTRODUCTION One of the importance issue that normally faced by any organization is how to maintain and measure employees competencies. Developing an effective performance appraisal system has been a high priority for human resource management. Performance appraisal can be used for many purposes and the primary goal of an appraisal system is to improve individual employee and organizational performance.

OBJECTIVES OF THIS LECTURE Upon completing this chapter student should be able to: Understand the concept performance appraisal Describe the purpose of performance appraisal Describe performance appraisal criteria Describe the methods used to evaluate employee performance Understand the problems in evaluating employee performance

Definition Performance appraisal is the HRM activity that is used to determine the extent to which an employee is performing the job effectively Performance appraisal is a continuing assessment of an individual employee’s effectiveness or adequacy in the work performed and his potential for the future. Performance appraisal is the systematic, periodic evaluation of employee’s effectiveness or adequacy in the work performed and his potential for the future.

The purposes of performance appraisal Development – used to determine which employee need training Compensation adjustment – used to decide who should receive pay raises and bonuses Motivation –used to develop a sense of responsibility and stimulate effort to performance better Placement decision – used to determine promotion, transfer and demotion decisions Employment planning – used to prepare HRP Job design – used to restructuring the job

Performance appraisal criteria Quantity of work – volume of acceptable work Quality of work – neatness and accuracy of work Knowledge of job – clear understanding of the facts pertinent to the job Personal qualities – personality , leadership Cooperation – ability and willingness to work with associates Dependability – ability to work independently Initiative – extra effort Earnestness in seeking increased responsibility

The methods for evaluating employee performance The 360-degree evaluation A multi-rater evaluation that involves input from multiple levels within the firm and external sources as well. Graphic Rating Scale Graphic Rating Scale requires the evaluator to provide an objective evaluation of individual’s performance along a scale from low to high. It uses standard format of appraisal form. The evaluator rates employee according to defined factors.

Narrative Method Subjective evaluation and requires a long written analysis Ranking Method It is a job evaluation method in which the evaluator simply places all employees from a group in rank order of overall performance.

The problems Appraiser Errors System design and Operating Problems Leniency and harshness Central tendency errors Halo effect Personal bias Bias and favouritism System design and Operating Problems Poorly designed Some evaluation techniques take a long time to carry out Require extensive written analysis Employees’ problem Employees do not understand the system Employees are not work-oriented Evaluation may be below the employees’ expectations

TUTORIAL Explain the objective of performance appraisal Briefly describe each of the following methods of performance appraisal Rating scale Critical incidents Essay Work standard Ranking Force distribution Result-based system 360-degree feedback

PROMOTION Promotion is a process of upgrading of an employee from a job to another position that is higher in pay, responsibility and organizational level. Eg: from Assistant Manager to Manager

The purposes of promotion As a recognition of an employee’s past performance As a reward of an employee’s achievement As a method to motivate employee to strive for excellent or a method of a career development program As a method to fill job vacancies ( higher post)

The principles of promotion MERIT-BASED PROMOTION Merit –based promotion is used when an employee is promoted because of superior performance in the current job. When promotion is mostly “reward” for past effort and success. The problem of merit-based promotion Whether decision makers can objectively distinguish strong performers and weak ones. Peter Principle – in a hierarchy people to raise their level of incompetence. Difficulties in measuring the merits.

SENIORITY-BASED PROMOTION Seniority-based promotions use the principle that the most senior employee or the employee who has the longest length of service with the employer gets the promotion The advantages of seniority-based promotion Objective – compare the seniority records of the candidates to determine who should be promoted Eliminates biased promotions Eliminates frustration among senior employees The disadvantage of seniority-based promotions is that it de-motivate new and active employees. “Waiting the dead men’s shoes”

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