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Performance Appraisal By Naveed Chiragh
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Performance Appraisal :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
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Relationship between jab analysis and performance appraisal:
Job analysis performance performance standards appraisal Describes work & Personnel Requirement Of a particular job Translate job Into levels of To acceptable Or unacceptable performance Describes the Job relevant strengths and weakness of Each individual
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Question arises? Why do we measure performance?
Effective performance appraisal systems How do we measure performance?
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Characteristics It is a step by step process
It examine the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees
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Needs and Objectives: Provide feedback about employees
Provide database Diagnose the S & W of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management
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Appraisal Benefits (cont.)
Appraisals offer employees: Direction Feedback Input Motivation
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Appraisal Benefits Appraisals offer the company: Documentation
Employee Development Feedback Legal protection Motivation system
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Why Appraisals Are Important
Recognize accomplishments Guide progress Improve performance
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Why Important (cont.) Review performance Set goals Identify problems
Discuss career advancement
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Steps in performance appraisal
Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose
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Process of PA Setting performance standards Taking corrective
Communicating standards Discussing results Measuring standards Comparing standards
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Issues in appraisal system
Formal and informal Appraisal Design? What methods? Whose performance? When to evaluate? Who are the raters? What problems? What to evaluate? How to solve?
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What to evaluate? (Philip Model)
Problem children stars Potential Social citizen Planned separation L L H Performance
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How PA contribute to firm’s competitive advantages
Improving performance Making correct decision Values and behavior Competitive advantage Ensuring legal competence Minimizing dissatisfaction And turnover
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Problems in performance appraisal
Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
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Problems in performance appraisal (Cont’d)
Incompetence Negative approach Multiple objectives Resistance Lack of knowledge
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Essentials of an effective appraisal system
Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal
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Appraisals and Discrimination
Title VII ADA Other fair employment Laws
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Discrimination (cont.)
Failure to communicate standards Failure to give timely feedback Failure to allow employees to correct performance Inconsistency in measuring performance Failure to document performance objectively
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Appraisal Forms Define performance expectations
Describe measurement tools Use a rating system Cover specific examples Set measurable goals
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Measure Performance Measurement systems need to be: Specific Fair
Consistent Clear Useful
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Measure Performance (cont.)
Systems can be: Numerical Textual Management by Objective (MBO) Behavior oriented
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Document Performance Make sure documentation is objective
Document performance of all employees Provide complete and accurate information Document performance on a regular basis
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Set Goals…. Based on job requirements Realistic Measurable Observable
Challenging Prioritized
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Employee Input Employees take an active role: Setting goals
Designing action plans Identifying strengths and weaknesses Employees participate in the PA meeting
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Preparation Employees: Review performance Think about new goals
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Preparation (cont.) Supervisors: Review performance
Complete written appraisal Think about new goals Schedule time and place
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Start the Meeting Lay out agenda Talk about money Encourage input
Give good news first
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During the Meeting Review performance: Based on previous goals
Noting strengths and accomplishments Identifying areas for improvement
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Presentation Tips Focus on the professional Give objective examples
Invite response Listen actively Create “we” mentality
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During the Meeting (cont.)
Set goals: Based on company goals Building on areas that need improvement
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End the Meeting Encourage good performance Lay out action plan
Communicate outcome of goals not met Confirm understanding
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Continuous Feedback Formal appraisals Informal appraisals
Open communication
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Recognize Good Performance
Verbal Public Tangible Monetary
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Identify Poor Performance
Act early Take the right approach Deal with employee reaction Handle continued poor performance
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Discipline Poor Performance
Recognize problems Talk with employee Follow company policy
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Handle Hard Cases Reviewing highly emotional employees
Rating former peers
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Key Points to Remember You must conduct objective appraisals on a scheduled basis. Appraisals tell employees how they’re doing and how they can improve. Appraisals help create a system of motivation and rewards based on performance.
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Performance Appraisal Methods
Individual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO
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Critical Incident method
Ex: A fire, sudden breakdown, accident Workers reaction scale A informed the supervisor immediately 5 B Become anxious on loss of output 4 C tried to repair the machine D Complained for poor maintenance 2 E was happy to forced test
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Checklist method Simple checklist method: Simple checklist method
Weighted checklist method Forced choice method 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
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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
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Forced choice method Criteria Rating
1.Regularity on the job Most Least Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular
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Graphic Rating Scale Continuous Rating Scale
Discontinuous Rating Scale Employee name_________ Deptt_______ Rater’s name ___________ Date________ Exc. Good Acceptable Fair Poor _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score Continuous Rating Scale
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Discontinuous Rating Scale
Indifferent Enthusiastic Attitude No Interest Very enthusiastic Interested Discontinuous Rating Scale
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BARS( behaviorally Anchored rating scale)
Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument
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MBO Process Set organizational goals Defining performance target
Performance review feedback
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Performance Appraisal Methods
Group Appraisal Ranking Paired comparison Forced distribution Performance tests Field review technique
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Ranking method Employee Rank A 2 B 1 C 3 D 5 E 4
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Paired comparison method
A B C D E Final Rank A B C D E No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
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Forced Distribution method
No. of employees 20% 40% 20% 10% 10% poor Below average average good Excellent Force distribution curve
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Field review method Performance subordinate peers superior customer
Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
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Performance criteria for executives
For top managers Return on capital employed Contribution to community development Degree of upward communication from middle-level executives Degree of growth and expansion of enterprise.
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For middle level managers
Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies
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For supervisors Quality and quantity of output in a given period
Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period
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