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Human Resource Human Resource ManagementManagement
Lecture-26
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Performance Appraisal
The ongoing process of evaluating and managing both the behavior and outcomes in the workplace.
Its goal is to provide an accurate picture of past and / or future employee performance.
To achieve this, performance standards are established.
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Organization...Organization...
•WHYWHY is performance is performance measured? (use)measured? (use)
•WHATWHAT is measured? is measured? (criteria)(criteria)
•HOWHOW is it measured? is it measured?
•WHOWHO measures measures performance? performance?
•WHENWHEN is it is it measured? (timing)measured? (timing)
•WHYWHY is performance is performance measured? (use)measured? (use)
•WHATWHAT is measured? is measured? (criteria)(criteria)
•HOWHOW is it measured? is it measured?
•WHOWHO measures measures performance? performance?
•WHENWHEN is it is it measured? (timing)measured? (timing)
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Objectives of Performance Appraisal
Evaluation Developmental
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Evaluating Objectives
Staffing decisionsCompensation decisionsEvaluate selection system
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Developmental Objectives
Performance feedback.Decision for future
performance.Identify training &
development needs.
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What to evaluate?
TraitsBehaviorsTask Outcomes
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Performance Standards
Expected levels of performanceBenchmarksGoalsTargets
Should relate back to the job description details
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Characteristics of Well-defined Standards
RealisticMeasurableClearly understood
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Appraisal process
Determine performance requirements.
Choose an appropriate appraisal method.
Train supervisors.
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Discuss methods with employees.Appraise according to Job
standards.Discuss appraisal with employees.Determine future performance
goals.
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Performance Appraisal methods
Rating ScalesGraphic Scales
Comparative MethodsRankingForced DistributionPaired Comparison
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Critical Incidents Annual ReviewChecklistBehaviorally Anchored Rating Scale (BARS)
EssayMBOCombination Methods
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Graphic Rating Scale
1(Low) 2 3 4 5 6 7 (High)
Quantity of WorkX
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Simple Ranking
1. Aziz Ahmad
2. Summer Abbas
3. Arshad Butt
4. Hamid Ali
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Forced Distribution on a Bell-Shaped Curve
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Forced Distribution
Lowest Next Lowest Middle Next Highest Lowest Next Lowest Middle Next Highest
10% 20% 10% 20% 40% 20% 10% 40% 20% 10%
5 5 10 10 20 20 10 10 5 5
employeesemployees employees employees employees employees employees employees employees employees
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BARS Dimension: Quality of Group Member Input
Effective
Ineffective
Group member has read all agreed-uponmaterial
Group member participates in discussions,though not always prepared
Group member does little work and offersno valuable ideas or feedback
5
4
3
2
1
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Management-By-Objectives
GoalSetting
Planning Evaluation
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Model of the MBO Process
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Step 1: Setting Goals
Step 2: Developing Action Plans
Step 3: Reviewing Progress
Corporate Strategic Goals Departmental Goals Individual Goals
Step 4: Appraising Overall Performance
Appraisal of Overall Performance
Corrective Action
Review Progress
Action Plans
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Be Supportive
Follow Up Day by Day
Establish Goals
Focus on Problem Solving
Minimize Criticism
Invite Participation
Express Appreciation
Ask for Self- Assessment
Change the Behavior, not
the Person
Appraisal Interviews
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Who Should Do the Rating?
SupervisorsPeer
EvaluationCustomer/
Client Evaluation
Self RatingReverse
AppraisalTeam
AppraisalMultiple (360)
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Supervisor
Subordinates
Peers
Team
CustomersSelf
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superiors
subordinates
peers customers
self-ratingoutsideobservers
employee
360 Degree Feedback
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Common Rater Errors in PA’s
Supervisory Bias
Halo EffectCentral
TendencyLeniency
StrictnessRecencyOverall
Rating