principles of management - performance appraisal methods

Performance AppraisalPrinciples of Management

Denin P DavisRoll No. : 12

Performance Appraisal

Performance management is the process of identifying, measuring,

managing, and developing the performance of the human resources in

an organization.

Performance appraisal, is the ongoing process of evaluating

employee performance.

Performance Appraisal

Performance appraisal deals with how organizations evaluate and

measures its employees achievements and behaviors. It is an employee

review by his manager where his work performance is evaluated and

strengths and weaknesses are identified so that the employee knows

his improvement areas.

Performance Appraisal Methods

• Individual Evaluation Methods

• Multiple Person Evaluation Methods

• Other Methods

Confidential report

Mostly used by government departments, however its application in

industry is not ruled out. Here the report is given in the form of Annual

Confidentiality Report (ACR) and may record ratings with respect to

attendance, self expression, team work, leadership, initiative,

technical ability, reasoning ability, originality and resourcefulness etc.

Confidential report

•Prepared at the end of the year•Prepared by the employee’s immediate supervisor•The report highlights the strengths and weaknesses

of employees•Prepared in Government organizations•Does not offer any feedback to the employee

Confidential report

The system is highly secretive and confidential. Feedback to the assesse is

given only in case of an adverse entry.

Disadvantage is that it is highly subjective and ratings can be manipulated

because the evaluations are linked to HR actions like promotions etc.

Essay evaluation method

In this style of performance appraisal, managers/ supervisors are

required to figure out the strong and weak points of staff’s

behaviors. Essay evaluation method is a non-quantitative

technique. It is often mixed with the method graphic rating scale.


• Job knowledge and potential of the employee

• Employee’s understanding of the company’s programs, policies, objectives,

etc.

• The employee’s relations with co-workers and superiors

• The employee’s general planning, organizing and controlling ability

• The attitudes and perceptions of the employee, in general

Input of info. sources


• Manager / supervisor may write a biased essay

• A busy rater may write the essay hurriedly without properly assessing the

actual performance of the worker.

• If rater takes a long time, this becomes uneconomical from the view point of

the firm, because the time of rater is costly.

• Some evaluators may be poor in writing essays on employee performance.

Disadvantages

Critical incidents

This format of performance appraisal is a method which

is involved identifying and describing specific incidents

where employees did something really well or that needs

improving during their performance period.

Critical incidents

• Identifying and describing specific incidents

• Manager maintains logs on each employee

• Periodically records critical incidents of employee’s behavior

• It is based on logs that in the evaluation form

• Evaluates the worker performance at end of rating period

• Critical incidents file reflect all data about employee

performances

Critical incidents

• Negative incidents may be more noticeable than positive

incidents

• Results in very close supervision which may not be liked

by the employee

• Managers may be too busy or forget to record incidents

Disadvantages

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/N• Is employee helpful Y/N•Does he follow instruction Y/N•Does he keep the equipment in order Y/N

Weighted checklist method

Performance appraisal is made under a method where

the jobs being evaluated based on descriptive

statements about effective and ineffective behavior on

jobs.


• HR department and Managers / Supervisors will set up checklist

for each position.

• If the rater believes strongly that the employee possesses a

particular listed trait, he checks the item; otherwise, he leaves

the item blank.

Process


• Helps to evaluate the performance of the employee.

• Rater may be biased

• This method is expensive and time consuming

• Difficult for the manager to assemble, analyze

Pros and cons


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

BARS

Behaviorally anchored rating scales is formatted performance

appraisal which is based on making rates on behaviors or sets of

indicators to determine the effectiveness or ineffectiveness of

working performance. The form is a mix of the rating scale and

critical incident techniques to assess performance of the staff.

BARS

Each behavior can rate at one of 7 scales as follows

• Extremely poor (1 points)

• Poor (2 points)

• Below average (3 points)

• Average (4 points)

• Above average (5 points)

• Good (6 points)

• Extremely good (7 points)

Rating scales

Graphic rating scales

This method is considered as the oldest and most popular method

to assess the employee’s performance.

In this style of performance appraisal, the management just simply

does checks on the performance levels of their staff.


• Dependability

• Attitude, Initiative

• Neatness and accuracy of work

• Volume of work under normal working conditions

• Willingness & ability to work with others for achieving goals

Content of appraisal


Rating scales can include 5 elements as follows

Unsatisfactory

Fair

Satisfactory

Good

Outstanding

Rating scales


• Graphic rating scales are less time consuming to develop

• They also allow for quantitative comparison

• Different supervisors will use the same graphic scales in slightly different ways

• More validity comparing workers ratings from a single supervisor than

comparing two workers who were rated by different supervisors

Content of appraisal

Management by Objective (MBO)

MBO is a method of performance appraisal in which managers or

employers set a list of objectives and make assessments on their

performance on a regular basis, and finally make rewards based on

the results achieved. This method mostly cares about the results

achieved (goals) but not to the way how employees can fulfill them.


Classification of Objectives

• Corporate objectives

• Functional objectives

• Individual objectives


• It is based on the assumption that the individual (employee) knows more than

anyone else about her/his own capabilities, needs, strengths, weaknesses

and goals.

• A further advantage of MBO is that the emphasis is on the future rather than

on the past.

Advantages

Forced ranking method

In this style of performance appraisal, employees are ranked in terms of forced

allocations.

For instance, it is vital that the proportions be shared in the way that 10 or 20 %

will be the highest levels of performances, while 70 or 80% will be in the middle

level and the rest will be in the lowest one.


• They force reluctant managers to make difficult decisions and

identify the most and least talented members of the work group.

• They create and sustain a high performance culture in which the

workforce continuously improves.

Advantages


• They increase unhealthy cut-throat competitiveness

• They discourage collaboration and teamwork

• They harm morale

Disadvantages

Thanks

principles of management - performance appraisal methods

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