1. PERFORMANCE APPRAISAL 1

2. Performance Appraisal Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance and potential of its group members. Performance Appraisals are yearly or monthly evaluations given to employees. They evaluate the needs of the employee and supervisor. Performance Appraisal is the process by which organizations evaluate employee job performance. 2

3. Uses of Performance Appraisal Raises, Merit Pay, Bonuses Personnel Decisions (e.g. promotion, transfer, dismissal) Identification of Training needs Research purposes (e.g. assessing the worth of selection tests 3

4. Steps in performance appraisal 4 Establishing job standards Designing an appraisal programme Appraise performance Performance interview Use appraisal data For appropriate purpose

5. Objective of Performance Appraisal To help better current performances To help in development of the employee. To determine training and development needs. To give employee feedback and counsel them To review performance for salary purposes. 5

6. Process of Performance Appraisal 6 Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards

7. Issues in appraisal system 7 Appraisal Design? Formal and informal What methods? When to evaluate? What to evaluate? Whose performance? Who are the raters? What problems? How to solve?

8. Benefits of Performance Appraisal For the Appraisee For the Management For the Organization 8

9. Benefits of Performance Appraisal For the Appraisee Better understanding of his role in the organization – what is expected and what needs to be done to meet those expectation Clear Understanding of his strengths & weaknesses to develop himself into a better performer in future Increased motivation, job satisfaction, and self – esteem Opportunity to discuss work problems and how they can be overcome Opportunity to discuss aspirations and any guidance, support or training needed to fulfill those aspirations Improved working relationships with supervisors 9

10. Benefits of Performance Appraisal For the Management Identification of performers and non-performers and their development towards better performance Opportunity to prepare employees for assuming higher responsibilities Opportunity to improve communication between the employees and management Identification of training and development needs Generation of ideas for improvements Better identification of potential and formulation of career plans 10

11. Benefits of Performance Appraisal For the Organization Improved performance throughout the organization Creation of a culture of continuous improvement and success Conveying the message that people are valued 11

12. Methods of Performance Appraisal Individual Evaluation Methods Multiple Person Evaluation Methods Other Methods 12

13. Methods of Performance Appraisal Individual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklist Graphic rating scale Behaviorally anchored rating scale (BARS) Forced choice method Management by Objective (MBO) 13

14. Methods of Performance Appraisal Multiple Person Evaluation Methods Ranking Paired comparison Forced distribution 14

15. Methods of Performance Appraisal Other Methods Group Appraisal Field review technique 360 0 Appraisal System 15

16. Individual Evaluation Methods Confidential Report Descriptive report Prepared at the end of the year Prepared by the employee’s immediate supervisor The report highlights the strengths and weaknesses of employees Prepared in Government organizations Does not offer any feedback to the employee 16

17. Individual Evaluation Methods Essay Evaluation The rater is asked to express the strong as well as weak points of employee’s behavior The rater considers the employee’s : Job knowledge and potential Understanding of company’s programs, policies, objectives etc Relation with co-workers and supervisors Planning, organizing and controlling ability Attitude and perception 17

18. Individual Evaluation Methods Critical Incidence Manager prepares lists of statements of very effective and ineffective behavior of an employee These critical incidents represent the outstanding or poor behavior of the employees The manager periodically records critical incidents of employee’s behavior 18

19. Individual Evaluation Methods Checklist Method Simple checklist method Weighted checklist method Forced choice method 19

20. Checklist 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 20

21. Checklist Method Weighted Checklist Method weights performance rating (scale 1 to 5 ) Regularity0.5 Loyalty1.5 Willing to help1.5 Quality of work1.5 Relationship2.0 21

22. Checklist Method Forced Choice Method CriteriaRating 1.Regularity on the jobMostLeast Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular 22

23. Individual Evaluation Methods Graphic Rating Scale A form is used to evaluate the performance of the employees A variety of traits may be used in this device, the most common being quality and quantity of work Easy to understand and use. Permits statistical tabulation of scores of employees 23

24. Individual Evaluation Methods Behaviorally Anchored Rating Scale (BARS) 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 24

25. Individual Evaluation Methods Forced Choice Method This method uses several sets of paired phrases, two of which may be positive and two negative The rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker Favorable qualities earn plus credit and unfavorable ones earn the reverse 25

26. Individual Evaluation Methods Management by objectives (MBO) MBO emphasizes collectively set goals that are tangible, verifiable, and measurable Focuses attention on goals rather than on methods Concentrates on Key Result Areas (KRA) Systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals 26

27. Individual Evaluation Methods Management by objectives (MBO) - Cont Key Element of MBO Arranging organizational goals in a means-ends chain Engaging in joint goal setting This process has the following steps: Identify KRAs Define expected results Assign specific responsibilities to employees Define authority and responsibility relationship Conducting periodic progress review Conducting annual performance review 27

28. Multiple Person Evaluation Methods Ranking method The evaluator rates the employee from highest to lowest on some overall criteria Paired comparison method Each worker is compared with all other employees in a group For several traits paired comparisons are made, tabulated and then rank is assigned to each worker This method is not applicable when the group is large Forced Distribution Methods The rater is asked to appraise the employee according to predetermined distribution scale. The worker is placed between two extremes of “good” and “bad” performance. 28

29. Other Methods Group Appraisal Employee is appraised by a group of appraisers. The group consists of : Immediate supervisor of the employee Other supervisors who have close contact with the employee’s work. Manager or head of the departments. Consultants or Clients 29

30. Other Methods Field Review Technique The appraiser goes to the field and obtains the information about work performance of the employee by way of questioning the said individual, his peer group, and his superiors 30

31. Other Methods 360 0 Appraisal System 360 Degree Performance : Combination of self, peer, supervisor, and subordinate performance evaluation It is a systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders Data is gathered and fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately behavior 31

32. Appraisal Interview and Feedback - Let the Employee Know Where He Stands To help employees do a better job by clarifying what is expected of them To plan opportunities for development and growth To strengthen the superior-subordinate working relationship by developing mutual agreement of goals To provide an opportunity for employees to express themselves on performance related issues 32

33. THANK YOU 33 Any Questions???