performance appraisal ppt
DESCRIPTION
Performance Management PPT(Summary)TRANSCRIPT
Performance Appraisal
Amit SharmaB.Tech, MBA, SAP(HR), PHR|[email protected]
PERFORMANCE APPRAISAL :
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members
RELATIONSHIP BETWEEN JAB ANALYSIS AND PERFORMANCE APPRAISAL:Job analysis performance
performancestandards
appraisal
Describes work& Personnel RequirementOf a particularjob
Translate job Into levels of To acceptableOr unacceptableperformance
Describes the Job relevant strengths and weakness ofEach individual
QUESTION ARISES?
Why do we measure performance? Effective performance appraisal
systems How do we measure performance?
CHARACTERISTICS It is a step by step process It examine the employee strengths and
weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct
decisions on employees
NEEDS AND OBJECTIVES:
Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career
planning to subordinates Develop positive relation and reduce
grievance Facilitates research in personnel
management
APPRAISAL BENEFITS (CONT.)
Appraisals offer employees:DirectionFeedbackInputMotivation
APPRAISAL BENEFITS Appraisals offer the company:DocumentationEmployee DevelopmentFeedbackLegal protectionMotivation system
WHY APPRAISALS ARE IMPORTANT
•Recognize accomplishments
•Guide progress• Improve performance
WHY IMPORTANT (CONT.)
Review performance Set goals Identify problems Discuss career advancement
STEPS IN PERFORMANCE APPRAISAL
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal dataFor appropriate purpose
PROCESS OF PA
Setting performance
standardsTaking correctivestandards
Discussingresults
Comparing standards
Measuringstandards
Communicatingstandards
ISSUES IN APPRAISAL SYSTEM
Appraisal Design?
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
WHAT TO EVALUATE? (PHILIP MODEL)
Problem children
Plannedseparation
stars
Socialcitizen
H
L H
L
Potential
Performance
HOW PA CONTRIBUTE TO FIRM’S COMPETITIVE ADVANTAGES
Improving performance
Making correct decision
Ensuring legal competence
Minimizing dissatisfactionAnd turnover
Values and behavior
Competitive advantage
PROBLEMS IN PERFORMANCE APPRAISAL1. Errors In rating
Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect
PROBLEMS IN PERFORMANCE APPRAISAL (CONT’D)
2. Incompetence3. Negative approach4. Multiple objectives5. Resistance6. Lack of knowledge
ESSENTIALS OF AN EFFECTIVE APPRAISAL SYSTEM
Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal
APPRAISALS AND DISCRIMINATION
Title VII ADA Other fair employment Laws
DISCRIMINATION (CONT.) Failure to communicate standards
Failure to give timely feedback Failure to allow employees to correct performance
Inconsistency in measuring performance
Failure to document performance objectively
APPRAISAL FORMS Define performance expectations
Describe measurement tools Use a rating system Cover specific examples Set measurable goals
MEASURE PERFORMANCE Measurement systems need to be:
Specific Fair Consistent Clear Useful
MEASURE PERFORMANCE (CONT.)
Systems can be: Numerical Textual Management by Objective (MBO)
Behavior oriented
DOCUMENT PERFORMANCE Make sure documentation is objective
Document performance of all employees
Provide complete and accurate information
Document performance on a regular basis
SET GOALS…. Based on job requirements Realistic Measurable Observable Challenging Prioritized
EMPLOYEE INPUT
Employees take an active role:Setting goalsDesigning action plans Identifying strengths and weaknessesEmployees participate in the PA meeting
PREPARATION
Employees: Review performance Think about new goals
PREPARATION (CONT.)
Supervisors: Review performance Complete written appraisal Think about new goals Schedule time and place
START THE MEETING
Lay out agenda Talk about money Encourage input Give good news first
DURING THE MEETINGReview performance: Based on previous goals Noting strengths and accomplishments
Identifying areas for improvement
PRESENTATION TIPS
Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality
DURING THE MEETING (CONT.)
Set goals: Based on company goals
Building on areas that need improvement
END THE MEETING Encourage good performance
Lay out action plan Communicate outcome of goals not met
Confirm understanding
CONTINUOUS FEEDBACK
Formal appraisals Informal appraisals
Open communication
RECOGNIZE GOOD PERFORMANCE
Verbal Public Tangible Monetary
IDENTIFY POOR PERFORMANCE
Act early Take the right approach Deal with employee reaction Handle continued poor performance
DISCIPLINE POOR PERFORMANCE
Recognize problems Talk with employee Follow company policy
HANDLE HARD CASES
Reviewing highly emotional employees
Rating former peers
KEY POINTS TO REMEMBER You must conduct objective appraisals on a
scheduled basis.
Appraisals tell employees how they’re doing and how they can improve.
Appraisals help create a system of motivation and rewards based on performance.
PERFORMANCE APPRAISAL METHODS Individual Evaluation Methods
Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale
MBO
CRITICAL INCIDENT METHOD
Ex: A fire, sudden breakdown, accident
Workers reaction scale
A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1
CHECKLIST METHOD
• Simple checklist method• Weighted checklist method• Forced choice method
Simple checklist method:Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N
WEIGHTED CHECKLIST METHOD
weights performance rating(scale 1 to 5 )
Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0
FORCED CHOICE METHOD
Criteria Rating
1.Regularity on the job Most Least• Always regular• Inform in advance for delay• Never regular• Remain absent• Neither regular nor irregular
GRAPHIC RATING SCALE• Continuous Rating Scale• Discontinuous Rating Scale
Employee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor 5 4 3 2 1 _
DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale
DISCONTINUOUS RATING SCALE
Attitude
NoInterest
Indifferent
Interested
Enthusiastic
Veryenthusiastic
BARS( BEHAVIORALLY ANCHORED RATING SCALE)
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
MBO PROCESS Set organizational goals Defining performance target Performance review feedback
Group AppraisalRanking Paired comparison Forced distribution Performance tests Field review technique
PERFORMANCE APPRAISAL METHODS
RANKING METHOD
Employee Rank
A 2
B 1
C 3
D 5
E 4
PAIRED COMPARISON METHOD
A B C D E Final RankA - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
FORCED DISTRIBUTION METHOD
10% 20% 40% 20% 10%
poor Belowaverage
average good Excellent
No. of employees
Force distribution curve
FIELD REVIEW METHODPerformance subordinate peers superior customerDimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
PERFORMANCE CRITERIA FOR EXECUTIVES For top managers
Return on capital employedContribution to community developmentDegree of upward communication from
middle-level executivesDegree of growth and expansion of
enterprise.
FOR MIDDLE LEVEL MANAGERS Departmental performance Coordination among employees Degree of upward communication
from supervisors Degree of clarity about corporate
goals and policies
FOR SUPERVISORS Quality and quantity of output in a
given period Labor cost per unit of output in a
given period Material cost per unit in a given
period Rate of absenteeism and turnover of
employees No of accidents in a given period