1 Unit 4 Managing Employee Performance and Performance Appraisal

2 Introduction  An employee performance management system is a means to ensure that every employee works in a manner which is alligned with organizational goals and which ensures tat the employee reaches his maximum potential on the job.

3 Continue.. Employee performance management systems must take into account  Recruitment of workers as only workers with the right attitudes and abilities can perform well.  Training, which ensures employees have the skills and knowledge the need to do a good job  Reward system which encourage workers to continue o perform well month after month, year after year

4 Continue..  Managing the performance of individual employees is the job of managers and supervisors.  Every manager is responsible to manage the performance of his subordinates.  As for HRD in an organization to design the system which will achieve this goal.

5 Basic concepts Performance Management And Appraisal  Performance Appraisal Setting work standards assessing performance,and providing feedback to employees to motivate, correct and continue their performance.  Performance Management An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims.

6 Benefits Of An Employee Performance Management And Appraisal System  It is normal to appraise or evaluate workers performance.  Its natural for managers to have opinions concerning which of their workers are indispensable, which are reasonable performers and which are underachievers.  It is natural process and makes it more transparent.

7 Continue …  Some companies introducing a performance management and appraisal system.  Organizations interest in best practice are constantly and actively looking for ways to improve employees performance and motivate individual employees to achieve the best they can.

8 Continue.. A systematic appraisal of employees makes it possible to achieve the following benefits.  Encourage quality performance by rewarding those who do well  Improve current performance by giving workers feedback  Identify training needs  Initiate fair disciplinary proceedings  Provide a channel of communication between managers and their subordinates.

9 An Employee Performance Management System Consists Of These Components.  The preparation of organizational plans, including the setting of objectives which are establish for all levels down to the individual worker.  The implementation of the work by the individual worker, accompanied by appropriate forms of monitoring by the workers manager or supervisor.

10 Continue …  The appraisal of the work of the individual workers.  Follow up action taken after the appraisal. The nature of the follow up action depends upon the quality of performance of the individual worker.

11 Designing An Appraisal System  It is the responsibility of the HRD to choose an appropriate system of performance appraisal, train individual managers in its use and ensure proper implementation of the system.

12 Continue … Effective appraisal systems have certain characteristic.  They are integrated into performance management system.  They receive top management support.  They are customized to the needs of the organization.  They are acceptable and understandable.  They are reliable and unbiased as far as possible.

13 Bias in Performance Appraisal  Recency effect  Halo effect  Central/ Leniency /Strictness Tendency  Prejudice and Stereotyping  Fatigue

14 Parties Involved in Performance Appraisal  The Employees Manager  The Employees Co- worker  The Employees Subordinates  Customers, Client And Other Parties

15 Frequency of Appraisal Formal Appraisals need to be conducted 1. Before a new employee completes a probation period 2. After an employee is promote 3. If the quality of an employee's performance is declining and he has been warned to improve 4. On a Regular Basis

16 Appraisal Method  There are a number of different appraisal methods commonly used.  The three most common methods are:- 1. Comparative procedures 2. Trait rating scales 3. Essay technique

17 Continue …  Comparative Appraisal systems are easy to administer and tie to rewards but may not provide information to help employees improve their performance. 1. To compare his subordinates 2. List the best and the weakest 3. Top performer received the highest financial rewards, bonus or increment, the second received lesser rewards and so on.

18 Continue …  Trait Rating Scales can be used to measure personality traits, behaviour or output.  The five point scale would give frequencies such as 1. Almost never (0) 2. Seldom (1) 3. Sometimes (2) 4. Frequently (3) 5. Almost always (4)

19 Continue …  Essay Technique where the appraiser may be asked to write down answer to certain open ended questions about the performance of their subordinates.

20 Implementing An Appraisal System  Once the system has been chosen and decisions have been made as to 1. Who should get invovled 2. How often the appraisal should be done 3. The method to be used and appropriate from designed  Two Important Steps need to be taken to ensure successful implementation.

21 Continue …  First, appraiser must understand the system and are made aware of the performance factors (The Key performance Indicator) or KPI which will affect their appraisal rating.  No authorized personnel may not be given access to individual employees files. Strictly confidential.  KPI forms will be given.  Appraisal must be signed by the employee are evidence that he was informed about any weaknesses in his performance.

22 Continue …  Secondly, all managers must be trained in how to implement the appraisal system, particularly the appraisal interview or discussion, which is a key part of the system.

23 Continue … An appraisal discussion or review session should have an orderly structured. Opening;  Remind employee of purpose of discussion and welcome input from employee Begin Discussion;  Discuss employee's self evaluation  Reach agreement on achievement in time period under discussion  Set objective for next time period  Discuss action plan to overcome weaknesses

24 Counseling Employees with Problems  Managers are called on to counsel employees in a variety of situation, including appraisal discussions such as; 1. Disciplinary interviews 2. Retrenchment exercise 3. Career development interview 4. Pre-retirement programmes

25 Continue … Managers need to offer a range of services to employees in order to promote productivity. Helping employees perform satisfactorily may require a combination of: 1. Non directive counseling 2. Advice giving 3. Information giving 4. Teaching and coaching

26 After the Appraisal Interview  After a discussion has been held between the supervisor and each of his subordinates, they should have appropriate follow up action must be taken.  High performs should be rewarded with bonuses or increment.  If the employee performance was below standard, the manager will decide him to have training or retraining.

27 Continue …  Dealing with employee’s poor performance is an attempt must be made to improve the employee performance.  Firing the ineffective employee may seem to be a simple decision but it is also costly.  Continuing to employ poor performers is bad for the morale of the employee himself, his supervisor and his colleagues.

28 Summary  An effective appraisal scheme will make on employee identify which area that has not meet the standard required.  Once managers pin point these deficiencies, he can look for reasons why the employee never had appropriate training for the task or if he did.

29 Summary  Organizations have performance management systems to ensure each and every worker performs to the best of his ability.  A performance management system includes a number of components including the setting of objectives for the individuals worker, training of the worker, monitoring of the worker’s performance, taking of appropriate follow up action after the worker’s performance has been appraised.

30 Summary  Appraisal system must be developed which minimize appraiser bias as far as possible.  Appraisal must be based on accurate information about the worker’s performance, which can be obtained from a variety of sources.

31 Summary  Formal appraisal should be held at least once a year although feedback on the worker performance must be given to him or her regularly.  When an employee is appraised as having performed well, he or she must be appropriately rewarded.  If an employee is not performing satisfactorily, disciplinary action may have to be taken.