performance appraisal ch 10

8/8/2019 Performance Appraisal Ch 10

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09/04/09 Sugandha Agarwal 1

Performance Appraisal

Chapter- 10


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Definition

Performance appraisal can be defined

as the process of evaluating theperformance of an employee andcommunicating the results of theevaluation to him for the purpose of

rewarding or developing the employees.


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Objectives

Setting targets and goals as

performance standards Evaluating employee performance

Identifying training and development

needs Rewarding performance

Improving performance


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The process

Determination of standards or

performance based on theorganizational objectives and the jobdescription.

Measurement of performance againstthe pre-determined goals andstandards.

Matching the performance with the

standards


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The appraisers

Self appraisal

Supervisors Peers

Customers

Subordinates


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Performance Appraisals

Method

Traditional method

Modern Method


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Traditional Method Management by Objective

Graphic Rating Scale Work standards approach

Essay appraisal

Critical incident method

Forced choice rating method

Ranking method

Checklist


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Critical Incident methodEx: 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 3

D Complained for poor maintenance 2

E was happy to forced test 1


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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/NIs employee helpful Y/N

Does he follow instruction Y/N

Does he keep the equipment in order Y/N


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Weighted checklistmethod

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 choicemethod

Criteria Rating

1.Regularity on the job Most Least

Always regular

Inform in advance for delay

Never regular

Remain absentNeither regular nor irregular


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Graphic Rating Scale Continuous Rating Scale

Discontinuous Rating Scale

Employee name_________ Deptt_______

Raters name ___________ Date________ ------------------------------------------------------------------------

Exc. Good Acceptable Fair Poor

5 4 3 2 1 _

Dependability

InitiativeOverall output

Attendance

Attitude

Cooperation

Total score Continuous Rating Scale


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Discontinuous Rating Scale

Attitude

No

Interest

Indifferent

Interested

Enthusiastic

Very

enthusiastic


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BARS( behaviorally Anchored

rating scale)

BARS are said to be behaviorallyanchored as the scales represent arange of descriptive statements of behavior varying from the least to themost effective.

A rater is expected to indicate whichbehavior on each scale best descries anemployees performance.


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MBO Process

Set organizational goals

Defining performance target Performance review

feedback


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Group Appraisal

Ranking Paired comparison

Forced distribution

Performance tests Field reviewtechnique

Performance Appraisal

Methods


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Ranking method

Employee Rank

A 2

B 1

C 3

D 5

E 4


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Paired comparisonmethod

A B C D E Final Rank

A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5

No of Positive evaluation

Total no. of evaluation * 100 = employee superior evaluation


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Forced Distribution method

10% 20% 40% 20% 10%

poor Below

average

average good Excellent

No.

of

employees

Force distribution curve


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Field review methodPerformance subordinate peers superior customer

Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^


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Balance ScorecardThe two basic features of the balanced

scorecard are:

A balanced set of measures based on. thefour perspectives of balanced scorecard

Linking the measures to EmployeePerformance


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The four Perspectives recommended by Kaplan and Norton

for the managers to collect information are:

The financial measures The financial measures includethe results like profits, increase in the market share,return on investments and other economic measures as

a result of the actions taken. The customers measures - These measures help to geton customer satisfaction, the customers perspectiveabout the organization, customer loyalty, acquiring newcustomers. The data can be collected from the frequencyand number of customer complaints, the time taken to

deliver the products and services, improvement inquality etc.


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The internal business measures These are the measuresrelated to the organizations internal processes which help toachieve the customer satisfaction. It includes the infrastructure,

the long term and short term goals and objectives,organizational processes and procedures, systems and thehuman resources.

The innovation and learning perspective. The innovation andlearning measures cover the organization's ability to learn,

innovate and improve. They can be judged by employee skillsmatrix, key competencies, value added and the revenue peremployee.


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360 degree feedback

The 360 degree technique is

understood as systematic collection ofperformance data on an individual orgroup, derived from a number of stakeholder- the stakeholder being the

immediate supervisor, team members,customer, peers, and self.


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Common Rating Errors Halo Effect

A person outstanding in one area tends to

receive outstanding or better than averageratings in other areas as well, even whensuch a rating is undeserved

Negative Effect

A low rating in one area yields lower thandeserved ratings for other accomplishments Central Tendency

Assigning an average rating for all qualities


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Confrontation Avoidance

Discomfort with giving negative feedback

Initial Performance

Rating an employee based solely on initialimpressions of performance

RecencyRating an employee based solely on mostrecent performance which overshadows theentire years performance


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performance appraisal ch 10

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