PERFORMANCE APPRAISAL

OBJECTIVE
After studying this session you should be able to:

Define Performance Management Identify major determents of individual performance Identify criteria for effective performance management system. Identify the strength and common short falls of most performance appraisal system. Conduct an effective performance feedback session.

PERFORMANCE APPRAISAL
What is Performance Appraisal Any procedure that involve: Setting work standards Assessing the employees actual performance relative to these standard , and Providing feed back to the employee with the aim of motivating that person to eliminate performance deficiencies or continue to perform above par.

PERFORMANCE APPRAISAL
DEFINITION
Performance Appraisal is a process by which organization evaluate individual job performance Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and potential for development.

WHY PERFORMANCE APPRAISAL

Appraisal provide, information upon which promotion and salary decisions can be made
It provides an opportunity for you and your subordinate to review the subordinates workrelated behavior Help you to develop a plan for correcting any deficiencies the appraisal might have unearthed.

WHY PERFORMANCE APPRAISAL

Appraisal should be central to you firms career planning process because it provides a good opportunity to review the persons career plan in light of his or her exhibited strengths and weakness

USE OF PERFORMANCE APPRAISAL

Performance Improvement
Performance feedback allows the employee and the manager with appropriate action to improve Compensation Adjustment Performance Appraisal helps to determine who should receive pay raises. Placement Decisions Promotion ,Transfer and Demotion are usually based on past performance.

USE OF PERFORMANCE APPRAISAL

Training and Development Needs
Poor performance may indicate a need for retraining like wise good performance may indicate un tapped potential.

Career Planning and Developments

Performance feedback guides career decisions about Career paths one should investigate.

ELEMENT OF PERFORMANCE APPRAISAL SYSTEMS

Performance Standard
Appraisal Systems require performance standards which serve as benchmarks against which performance is measured. Performance Measure Performance Evaluation requires dependable performance measure .

PERFORMANCE APPRAISAL PROCESS

Link directly to business priorities and support target accomplishment

Be user friendly

Be consistent and integrated with organizational career development and remuneration system

PERFORMANCE APPRAISAL PROCESS

Emphasizes continuous improvement

Link one year to another Plans and assesses progress

Stresses joint responsibilities The manager The assessor

Focuses on priorities for improvements

TARGET SETTING VS PERFORMANCE ASSESSMENT

TARGET SETTING

What is expected

The way it is expected to be done

PERFORMANCE ASSESSMENT What has been achieved The way it has been achieve

REVIEW OF RESULTS ACHIEVED

Where the target met
On time, mostly, fully, exceeded

What other key event impacted on the results What was the quality of the result achieved How well were the unanticipated issues managed

APPROACH TO MEASURE PERFORMANCE

One can manage performance by focusing on employee attributes, behaviors or results.

APPROACH TO MEASURE PERFORMANCE The Attributes Approach

The attribute approach to performance management focuses on the extent to which individuals have certain attributes (Characteristic or Traits) believed to be desirable for the company success. The techniques that use this approach tends to define a set of traits such as initiative leadership and competitiveness.

APPROACH TO MEASURE PERFORMANCE

Behavioral Approach
This approach attempt to define the behaviors an employee must exhibit to be effective on the job.

RESULT APRROACH
This approach focuses on managing the objective measurable results of a job or work-group. This approach assume that subjectivity can be eliminated from the measurement process and that results are the closed indicator of ones contribution to organisational effectiveness.

PERFORMANCE APPRAISAL CHLLENGE

RATER BIASES
The Halo Effect
When the raters personal opinion of the employee influence the measurement of performance.

The Error of Central Tendency

Some raters do not like to rate employees as effective or ineffective and so they distort the ratings to make each employee appear average. .

PERFORMANCE APPRAISAL CHLLENGE

RATER BIASEScont
Leniency and Strictness Bias
The leniency bias results when rater tend to be easy in evaluating the performance of employees. The strictness bias is the opposite it results from raters being too harsh in their evaluation.

PERFORMANCE APPRAISAL CHLLENGE

RATER BIASES

Cultural Biases When the raters apply their culture expectations to some one who has a different set of beliefs or behaviors. Personal prejudice Some raters who do not like a group or class of people distort the rating of those people.

The recency effect

When one uses subjective performance measures. The rating are affected strongly by the employee's most recent actions.

Ranking methods
The simple ranking method requires the manager to rank in order form: top to bottom or best to worst each member of a particular work group or department . the individual ranked is first presumed to be the top performer, the individual ranked second is presumed to be the second best performer , and so forth the basis for the ranking is generally global or overall performance.

Rating methods
One of the most popular and widely used methods is graphic rating scale, which consists simply of a statement or question about some aspect of an individuals job performance. Following the statement or question in series of answer or possible responses form which the rater must select the one that fits.

FUTURE ORIENTED APPRAISAL

Future oriented approach focus on future performance by evaluating an employees potential or setting future performance goal.

Four common approaches are:

Self Appraisal. Management by Objectives. Psychological Appraisal. Assessment Centers.

Self Appraisal.
Getting employee to conduct a self appraisal is a useful evaluation technique. The important dimension of self appraisal is the employees involvement in and commitment to the improvement process.

Management by Objectives.

It consists of goals that are objectively measurable and mutually agreed by the employee and the manager.

Assessment Centers.

It is a form of standardized employee appraisal that relies on multiple types of evaluation and multiple raters.

summary

Performance appraisal is a critical activity of HR management .Its goal is to provide an accurate picture of past and/or future employee performance. To achieve this, performance standards are established. Actual performance is measured directly or objectively. The appraisal process is usually designed by the HR department.

Industry Example
Pick any industry of your choice like ,
Banking Industry ( Local) Banking Industry (MNC), Pharma Industry, National (/MNC), FMCG Company (National / MNC), Educational Institutions ( Universities)

Submitted a Group Report as Project assignment.

THANK YOU

Q&A