53323648 performance appraisal hrm

7/31/2019 53323648 Performance Appraisal HRM

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Performance Appraisal

Formal system of review and evaluation of

individual or team task performance

2008 Prentice Hall, Inc. All rightsreserved.

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Types of Performance Information

Behavior-based: focuses on specific behaviors

related to job success.

Verbal communication skills for sales personnel.

Timeliness of responses.

Results-based: focuses on employees

accomplishments Sales made during rating period.

Reduction of grievances


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Conflicting Roles for Performance Appraisal

Figure 11

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Basic Concepts in Performance

Management and Appraisal


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Performance Appraisal:

Setting work standards, assessingperformance, and providingfeedback to employees to

motivate, correct, and continuetheir performance.

Performance Management:

An integrated approach toensuring that an employees

performance supports andcontributes to the organizations

strategic aims.

ComparingPerformance Appraisal

andPerformance Management


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Performance Appraisal ProcessIdentify Specific Performance

Appraisal Goals

Establish Performance Criteria

(Standards) and Communicate

Them To Employees

Examine Work Performed

Appraise the Results

Discuss Appraisal with

Employee


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Who Conducts Appraisals

Supervisors

Subordinates

Team members who rate each other Outside sources( clien

Employees self-appraisal

Multisource (360 feedback) appraisal


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Graphic Rating Scales(Category Ratings)

Graphic Rating Scales- performance israted along a Likert scale.

Makes Sound Decision:

Poor Below Average Average Above Average Outstanding

Problem:What does outstanding mean?

1 2 3 4 5


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Terms Defining Standards on One Company

Figure 11

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Cons:

Use of same format in every dept. may includeratings on factors quite irrelevant to his or her

job profile

Use of double negatives leads to confusion

e.g. never goes beyond the time limits and

come on time


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Example: Graphic Rating Scale (Cleanup)Childs Name:Date:

Circle One: Indoors/outside (playground)Rate child on each of the following by marking appropriate spot on line next to eachnumbered phrase.

Always* Often* Occasionally** Seldom*** Never

1. blocks efforts to clean up __|______|________|_________|_______|__2. does not stop playing unless

teacher (T) requests firmly __|______|________|_________|_______|__3. does not participate __|______|________|_________|_______|__4. cleans up only with T supervision__|______|________|_________|_______|__5. cleans up w/o T supervision __|______|________|_________|_______|__

*Often: at least four times for period observed**Occasionally: two or three times for period observed***Seldom: only one time for period observed


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Critical Incident Method

record of highly favorable and unfavorable

employee actions.

Observes and records the subordinates effective

and ineffective behaviors throughout the appraisal

period


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Critical Incident Method(Narrative )

Critical IncidentDate__________Name________________________

Location &Time____________________________________________________________Description ofIncident________________________

________________________________________________________________________________________________Corrective Action_______________________


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Pros:

Provides factual records for subsequent discussions anddecision making

For developmental purpose, discussion about the

corrective actions

No recency effect

Cons:

Time involved in documenting employee actions

Impossible to catch all employee actions

no quantification is done

No compensation


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Alternative Ranking method

Listing of all employees from highest to lowest in

performance

Drawbacks:

Does not show size of differences in

performance between employees

Implies that lowest-ranked employees areunsatisfactory performers.

Becomes a difficult process if the group to be

ranked is large.


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Forced Distribution

Performance appraisal method in which ratings of

employees are distributed along a bell-shaped curve

Drawbacks:

Assumes a normal distribution of performance. Creates team equities (high and low performing

teams)

Organization with w good selection process Is not readily applicable to small groups of

employees.


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Forced Distribution on a Bell-Shaped Curve

Figure 11

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Paired Comparison method

No. of comparisons = N(N-1)/2

Where N is no. of employees to be compared


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Annual Confidential report method

by immediate supervisor

for promotion and transfer purpose

Generally maintained in Govt. Departments

Four point grade: Excellent, good, fair, poor

High secrecy


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Cons:

Not data based

Impressionistic

No feedback is given to the ratee

Greater stress is given on evaluation rather development


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Management by Objectives

Concept given by Peter F. Drucker,1954

Introduced in 1970 in India by Madura Coats

Specifying the performance goals that an individual

and his or her manager agree to try to attain within

an appropriate length of time.


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Steps in MBO

Set the organizational goals Set the departmental goals

Discuss departmental goals with all the subordinates and

ask them to develop their individual goals

Define the expected results (Dept. head and their

subordinates set short term perfo. Targets)

Performance reviews: measure the results, compare

with the expected results

Provide feedback via periodic meetings


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Pros:

Performance based method of appraisal

Enhances superior-subordinate relationships

Improve communication between them

High top management commitment

Increased individual commitment


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Cons:

Difficult to compare the level of performance of different

employees

Setting objectives jointly with subordinates (tug of war)

Emphasis on target may neglect the other interpersonal

trait measurement

No emphasis on employees development

Time consuming method


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Behaviorally Anchored Rating Scales (BARS)

Step 1. Collect critical incidents (effective and ineffective

behaviors related to job dimension)Step 2. Identify the job/performance dimension (Inventory

control, also called anchors)

Step 3. Reclassification of critical incidents (developingvarious level of performances)

Step 4. Assigning scale values to the incidents (1 to 7 or 1to 9 depending upon how well it represents theperformance dimension, called vertical point scales)

Step 5. Producing the final instrument (BARS instrument)


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Pros:

Accurate

Clear standards: the critical incidents along with the

scales help to clarify what is very good, good andpoor performance

Automatic feedback through critical incidents


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Problems:

Expensive.

Time consuming and requires considerable effort

Must be customized to each job.

Cumbersome in firms with numerous positions.


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360 degree feedback

Obtaining feedback from the manager's keycontacts. These would normally include:

o The manager him/herselfo Subordinates (employees who work for

the manager)

o Peers (fellow managers)

o Managers (senior management)

o Customers

o Suppliers


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Cons:

Consume a lot of time (raters, designing questionnaires,

data analysis)

Source of confusion (Conflicting opinions)

Requires a lot of training in implementing the process

Costly process


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Self Appraisal

Development is self-directed

Identifying their own developmental needs

Can record his own success and failures while performing

different functions Helps in preparing his own developmental plans

Cons: Usually rate higher than they are rated by supervisors

More biased


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Problems in Performance Appraisal

Halo/horn error

Leniency/strictness

Central tendency

Recent behavior bias

Personal bias

Contrast effect

Manipulating the evaluation

Similar to me/dissimilar to me

Constant error


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The Appraisal Interview

Scheduling interview

Interview structure (discuss the performance)

Use of praise and criticism

Employees role

Concluding interview (mutually agreed actionplan )


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The Appraisal Interview


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SatisfactoryPromotable

SatisfactoryNot Promotable

UnsatisfactoryCorrectable

UnsatisfactoryUncorrectable

Types of AppraisalInterviews


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The Appraisal Interview (contd)

2008 Prentice Hall Inc All rights 935

Talk in termsof objective

work data

Action PlanDont get

personal.

Encouragethe person to

talk.

Guidelines forConducting an Interview

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