p 7 - performance appraisal system - 13.04.2013
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& Appraisal System
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PerformanceManagement &
Appraisal System
MBO
PerformanceManagementModel
Guideline
Source ofDrive
Uses ofPerformanceAppraisalsOutcomes
Tips forSuccessfulPA System
Why Performance Management & Appraisal System?
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MISSION
OBJECTIVES
STRATEGY
GOAL SETTING
PERFORMANCEAPPRAISAL
REWARDS
COACHING &
FEEDBACK
TRAINING
MOTIVATION
ROLE CLARITY
CAPABILITIES
AND TRAITS
RECRUITMANT
PERFORMANCE
ORGANIZATIONAL
POLICIESINDIVIDUAL LEVEL
FACTORS
VISION
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Organizational VisionDream of the founder, what the company should be?
MissionHow to allocate the resources to achieve the vision?
Objectives/ Goals
Long term objectives: Spread over more than one yearShort Term Objectives: Achievable within one year
Strategy1. The formulization of organizational Mission, Goals and
objectives as well as action plan for achievement, that
explicitly recognize the competition and impact of outsideenvironmental forces
2. An action plan that a company formulates to achieve theobjectives through superior performance
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Performance Appraisal SystemPerformance Appraisal (PA) is the process ofMeasuring, Evaluating and Recordingemployees performance relative to defined
expectations and providing feedback to theemployees.
It is an attempt to address thematter of appraising employeesperformance in a comprehensive manners.Innovation, Total Quality Management, High
Performance Work Teams and ParticipativeManagement Approach have an impact onthe performance of individuals.
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Evaluate onspecific
behaviors
Documentthe process
carefully
Attend tolegal
considerations
Appraisal
System
Use job analysis
for performance
standards
Develop a formal
appeal process
Use more than
one rater where
possible
Communicate
performance
standards
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Behavioral PA MethodsChecklist: It is the simplest form which includes a list
of descriptive statements of job related behaviors,such as:Quality of Work, Quantity of Work, Cooperation
with others, Job Knowledge, Dependability,Attendance & Punctuality, Knowledge of CompanyPolicies and Objectives, Initiative and Judgment,Supervisory or Technical Potential and HealthSafety & Environment etc.
This covers the 25% weightage in the performancerating.
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PA Against JDPerformance of the individual is evaluatedagainst the issued and agreed jobdescription. JD is set of interrelated tasks
assigned to the concerned. JD alsocommunicates the expectation level of theManagement from the individual.
It covers the 50% weight-age in thePerformance rating.
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Result Oriented PA MethodsManagement By Objectives MBO:
This method was introduced by Peter
Duckers. This approach has following threestages:
1. Setting Organizational Objectives2. Setting Individual Objectives
3. Appraising according to the results
This covers the 25% weightage in the PA rating.
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Guideline for Conducting a Result Oriented Performance Appraisal
1. PA should be based on a thoroughJob Analysisresultantly updatedJob Descriptions andJobSpecifications
2. Performance standards should be developed from theJob Analysis as input into the PA.
3. PA should be evaluated against specific behaviors asopposed to evaluating overall job performance usingone or few global measures.
4. The PA review discussion should be a two waycommunication between the evaluator and theemployee
5. The PA should be used not only as a mean of evaluatingperformance but also as a mean of motivating anddeveloping the employees.
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Guideline for Conducting a Result Oriented PerformanceAppraisal Contd
6. The purpose of the PA and the objective of the organizationmust be considered carefully before deciding a PA method.7. Training program should be implemented to:
Help raters avoid common perceptual errors in evaluating Help raters to improve their performance review skills
8. The link between PA System and organizational long termstrategic plans should be clearly defined.9. A successful PA System should be built around clearobjectives, have the support of both Management andemployees, be flexible enough to adopt the organizationalchanges and foster open discussion between evaluator /supervisors and employees.10. The validity of PA System should be examined at regularintervals.
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Performance appraisal process
1. Job analysis results can be used to2. Set performance standards / KPIs that can
be used to3. Design a performance appraisal systemthat is used to..
4. Assess performance through5. A performance review during which
participants6. Discuss a future plan of action.
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Tips for a successful performance review for raters:1. Give the employees fair notice when the review is
to be taken place.2. Ask the employees to think about and evaluate
their own performance prior to join the review
session.3. Get prepared for the review by examining
information available about the employeesperformance. Seek additional information ifrequired.
4. Begin the session positively to set the employees
on ease.5. Explain the format of the performance review
session.
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Tips for a successful performance review for raterscontd..
6. Make the employees aware of the uses of the PAresults such as T & D / Promotion / Transfer orfeedback decisions.
7. If needed set a second meeting the nonperformance related issues such as the salaryincrease, future goals or development suggestions
8. Review the key performance indicators KPIs9. Encourage the employees to participate, especially
when their performance differs with the
expectation / pre set goals.10. Make sure to praise the employees for theiraccomplishments during the evaluation period
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Tips for a successful performance review forraters contd..11. Highlight the areas in which performance
did not meet the standards.12. Discuss ways to improve performance in
the weak areas or resolve problems thathave caused the employee to be lesseffective then desired level.
13. Make sure that the employee fully
understand the appraisal system /objectives14. End the discussion on a positive note
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. Managers and SupervisorsTraditional source of appraisal informationPeers and Team Members
Best at identifying leadership potential and interpersonal skillsSubordinates
Provide feedback to supervisors 360 degreeInternal and External CustomersInternal customers include anyone inside the organization whodepends upon an employees work output
Self-appraisalsIncreases workers involvement in appraisal360 degree appraisalUses multiple sources to gain comprehensive perspective ofones performance
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Outcomes of performance appraisals may beused for:
1. Performance improvement
2. Compensation adjustment
3. Placement decisions
4. Training and development need assessment
5. Career planning and development
6. To highlight the staffing process deficiencies7. Feed back to the employees
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Thank You
[email protected] 946 8738
18AMJAD BHATTI