1. Performance Management

2. Performance Management
The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark. Michelangelo

3. Performance is essentially what an employee does or does not do
What Is Performance
Performance is essentially what an employee does or does not do
Common elements to performance
Quality of output
Quantity of output
Timeliness of output
Presence at work
Cooperativeness

4. Factors That Influence Performance

5. Performance Management
A process that consolidates:
Goal setting
Performance Appraisal
Development of a common system
the aim of which is to ensure that employee performance is supporting the company's strategic aims

6. Purposes for Performance Management
Strategic
Administrative
Developmental

7. Purposes for Performance Management
STRATEGIC
Link between employee activity and organizational goals
Define the SKA’s necessary for implementing the strategy
Develop measurement and feed back system
communicate corporate culture and values

8. Performance Appraisal
Performance appraisal is the identification, measurement and management of human performance in organization
Identification: knowing what behaviors lead to performance
Measurement: anchored tools to provide consistent assessment of performance
Management: feedback and goal setting

9. Difference between Performance Management & Performance Appraisal
Efforts to align employee performance with the firm goals
Defines performance
Facilitates performance
Encourages performance
Performance Appraisal:
Efforts to determine the extent to which an employee performs work effectively
Measure performance
Evaluate performance
Feedback on performance

10. What is in Performance Appraisal System
What is measured
Who measure performance
When is it measured
How is it measure

11. What is Measured
Traits
Behavior
Task Outcome

12. Who Measure Performance
Supervisor
Team
Peers
Self
Customers
Subordinates

13. When is it Measured On demand when required generally as follow
Annually
Quarterly
Monthly
Task Oriented

14. How is it Measure Absolute Standards Relative Standards MBO
360 Degree system

15. Performance Appraisal Methods
Absolute Standards
Relative Standards

16. Measuring an employees performance against some established Standards
ABSOLUTE STANDARDS
Measuring an employees performance against some established Standards
Essay Appraisal
Critical Incident Appraisal
Checklist Appraisal
Adjective Rating Scales
Behaviorally Anchored Rating Scales

17. ABSOLUTE STANDARDS Essay Appraisal
It is the simplest method of performance appraisal whereby the appraiser write a narrative describing an employee’s strength, weakness, past performance, potential & suggestion for improvement the weakness of this method is that it is much dependant on rater’s writing skills and provide only the qualitative data

18. Sample Essay Appraisal
Name:
Position:
Department:
Date started on job:
Date of last rating:
Date of this rating:
Appraisal of Performance: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Suggestions for development
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Prepared By: Position:
Manager’s signature: Employee’s signature:

19. ABSOLUTE STANDARDS Critical incident Appraisal
A performance appraisal method that focus on those critical or key behaviors that makes the difference between doing a job effectively or ineffectively. Critical incidents, with their focus on behaviors, judge performance rather then personalities. The weakness of this method is that it require regular incidents writing and on the other hand it suffer the same comparison problem in essay (i.e) Quantification

20. Sample Critical Incident Appraisal
Continuing Duties
Targets
Critical Incidents
Schedule production for plant
90% utilization of personal and machinery in plant: orders delivered on time
Instituted new production scheduling system; decreased late orders by 10%
Supervise procurement of raw materials and inventory control
Minimize inventory costs while keeping adequate supplies on hand
Let inventory storage costs rise 15% last month
Ordered parts A and B by 20% under ordered C by 30%
Supervise machinery maintenance
No shutdowns due to faulty machinery
Instituted new preventative maintenance system for plant, no break downs

21. ABSOLUTE STANDARDS Checklist Appraisal
A performance appraisal type in which a rater check off those Behaviors of an employee that apply

22. ABSOLUTE STANDARDS Graphic/Adjective Trait Rating Scale
One of the oldest and most popular methods of appraisal is the adjective rating scale in which a rating scale list traits (such as quality, quantity, job knowledge & integrity etc) and range of performance values (from unsatisfactory to outstanding for each traits.
The strength of this system is that it provide qualitative analysis that is useful for comparison purpose.

24. ABSOLUTE STANDARDS Behaviorally Anchored Rating Scales BARS
These scales combine major elements from the critical incident and adjective rating scale approaches. The appraiser rates the employees based on items along a continuum, but the points are example of actual behavior on the given job rather then general description or traits

25. ABSOLUTE STANDARDS Behaviorally Anchored Rating Scales BARS
Although the development of Bars is time consuming and technical but it give more accurate gauge and clear standards

26. BARS Dimensions Quality of Group member input
Group Member has read all agreed upon material
Group Member participate in discussion, through not always prepare
Group members does little work & offer no valuable ideas or feedback 5 4 3 2 1
Effective
Ineffective
BARS Dimensions
Quality of Group member input

27. BARS for Supervision Effective 5 Can train and develop subordinates 4
Criticize of personnel in front of others
Sets a poor example 5 4 3 2 1
Effective
Ineffective
BARS for Supervision
Exhibits respect towards subordinates
Does not lead by example

28. RELATIVE STANDARDS
Evaluating an employee’s performance by comparing the employee performance with other employees.
Group Order Ranking
Individual Ranking
Paired Comparison

29. RELATIVE STANDARDS Group Order Ranking/Forced Distribution
The group order ranking method or forced distribution method is similar to grading on a curve and it requires the evaluator to place employee into a particular classification e.g
15 – High Performers
20 – High Average Performer
30 - Average Performer
20 - Low average Performer
15 – Low Performer

30. RELATIVE STANDARDS Group Order Ranking
The main advantage of this method is that it’s avoid the problems of inflating performance in average column but some times when dealing to a small group times excellent performer may be forced to keep in low category

32. RELATIVE STANDARDS Paired Comparison
In paired comparison method for every traits (quality of work, quantity of work, creativity etc) you pair and compare very subordinate. This method become unwieldy when large numbers are being compared

34. Management by Objective (MBO)
MBO involves setting specific measurable goals with each employee and then periodically reviewing the progress made

35. Performance Appraisal under an MBO Program
Management by Objectives

36. 360 Degree Performance Appraisal
360 Degree Performance. Combination of self, peer, supervisor, and subordinate performance evaluation
Definition Degree Performance Appraisal

38. Benefits of Performance Appraisal
For the Management
Identification of performers and non-performers and their development.
Opportunity to prepare employees for assuming higher responsibilities.
Opportunity to improve communication between the employees and the management.
Identification of training an development needs.
Generation of ideas for improvements.
Better identification of potential and formulation of career plans
For the Appraisee
Better understanding of his role
Clear understanding of strengths and weaknesses by employees
Increased motivation, job satisfaction, and self-esteem.
Opportunity of open discussion regarding work problems & how to overcome them
Improved working relationships with the superiors.

39. Benefits of Performance Appraisal
For the Organization
Improved performance throughout the organization.
Creation of a culture of continuous improvement and success.
Conveyance of message that people are valued.

40. Common Problems in Appraisal Methods
Leniency Error
A means by which performance appraisal can be destroyed by evaluating employees against one’s own value system
Halo & Horn Effect
The tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits
Central Tendency.
The tendency of rater to give average ratings

41. Common Problems in Appraisal Methods
Stereotyping (Rater Biased)
A standard mental picture about a person based on person’s Sex, color, caste, age, style of clothing, political view etc
Recency Error
Recent behavior at evaluation time

42. Performance Appraisal Interview
An interview in which the supervisor and subordinate review the appraisal and make plans to remedy defensives and reinforce strength