Professional Documents
Culture Documents
A.V.Raman
Do you want your employee to be like this? The worlds purportedly most
haunted painting.
What is performance appraisal?
Per f o rma n c e Appr a isa l is a sy s tem a tic e v alu a tio n of
present potential capabilities of personnel by their
superior or by a superiors superior or by a
professional from outside.
Per f o rma n c e Appr a isa l se ts-
1 Wo r k S t a n d a r d s
2 A s s e s s e s Wo r k P e r f o r m a n c e
3 P r o v i d e s Re g u l a r F o c u s e d Fe e d b a c k t o a n
Employee
Per f o rma n c e Appr a isa l is ba sis f o r pro m otio n or pay
RA I S E .
What is performance appraisal based
upon?
Per f o rma n c e Appr a isa l is organ i z ed in a cco rda n ce w it h
and aligned with the goals set by management and is the
management by objectives.
Per f o rma n c e Appr a isa l is a tw o w ay stre e t.
One it comprises of performance set up by managerial
authority
Tw o i t c o m p r i s e s o f p e r f o r m a n c e a c h i e v e d o r
i d e n t i fi c a t i o n o r i n t i m a t i o n o f g a p s a c h i e v e d b y a n
individual or group.
Per f o rma n c e Appr a isa l an d C om pe n sa tio n a re in se par a ble
twins.
Setting
performance
Evaluation goals
Establishing
performance
criteria
Actual Evaluation
of Employee
Performance
Post- Evaluation
interview with
employee
Evaluator for Conducting Performance Evaluation
Immediate supervisor,
Peer group,
Employees,
Committees,
Self and
Customers
Performance and Potential Appraisal
Per f o rma n c e Appr a isa l is a sy s tem a tic pro ce ss
I t i s n o t d o n e i n fi t s a n d s t a r t s b u t d o n e p e r i o d i c a l l y
in accordance with a plan
It is not a past oriented activity but looks into the
future.
Per f o rma n c e Appr a isa l is n o t j ob e va lu a tio n or
p e r t a i n s t o o n l y fi n d i n g f a u l t s .
Per f o rma n c e Appr a isa l ma y b e ei th e r th ro u gh a
formally systematized process or through informal
means.
Where does Performance Appraisal cast its spotlight
on?
Mastering competencies
Specific
Measurable
Attainable
Relevant
Timely
PA Measurement An overview
The graphic rating scale method is the simplest and most
popular performance appraisal technique. First, a scale is
used to list a number of traits and a range of performance for
each. Then the employee is rated by identifying the score that
best describes his/her performance level for each trait.
Timeliness 1 2
3
evaluating a paper you have turned in. A benefit of narrative ratings is that
Such comments can also be very helpful for improving future performance but
suffer from individual bias, the raters may write it in a hurry and there is no
way to compare high and low employees in order to ascertain compensation.
PA Measurement is a mix of group and
individual assessments.
Ranking Method-Ranking of an employee in a work group is done
against another employee and the relative position of each
employee is expressed in his relative rank.
The Paired Comparison Method on the other hand entails ranking
employees by making a chart of all possible pairs of employees for
each trait. The manager then indicates which one is the better
employee of the pair.
Critical Incident Analysis
Critical Incident Method A supervisor keeps a record of
uncommonly good and/or undesirable examples of an employees
work-related behavior. The supervisor then reviews the record with
the employee at predetermined times.
PA Measurement
Forced Rankings
A rater is required to rank all employees. For example, an office manager might be
asked to rank the offices five secretaries in order from highest performer to lowest
performer. The forced ranking technique eliminates central tendency error and
provides clear guidance for organizations that want to give promotions and pay
raises to top performers.
Least Most
_______________________________________________________________________
Can be a leader A
provide feedback
Having a conversation is focused on stretched goals and career interests there are
no ratings.
Behaviourally Anchored Rating Scale
Do not judge or thrust your opinion. Allow the employee to speak what she or he feels listen but do not
react.
Recognize that defensive behavior is normal. Never attack or belittle a persons defenses; they are
legitimate to him or her. Defer action as appropriate and recognize your own limitations. Break any bad
news gently.
When required, criticize in a private and constructive manner that lets the person maintain his/her
dignity and sense of worth.
Written warnings should identify the standards by which the employee is judged, make it clear that the
employee was aware and informed of the standard. Point out the violation of the standard, and show that
the employee had an opportunity to correct the behavior. You may place this in his or her permanent
personnel file. If circumstances warrant, you may remove the warning after a specified amount of time, say
90 days or longer.
Be realistic and honest when giving an appraisal. It is important that a manager be blunt when a
subordinate is underperforming. Focus on specifics and allow opportunities to improve.
Organizational Development Process
Flaws that can creep into PA measurement
If standards are unclear, ambiguous traits and degrees of merit can result in
an unfair appraisal.
The influence of a raters general impression on ratings of specific qualities is
known as the halo effect.
Central tendency occurs when supervisors stick to the middle of the rating
scales, thus rating everyone average like an examiner trying to push people
up and not taking difficult decision.
Leniency or strictness occurs if supervisors have a tendency to rate everyone
either high or low. Effects involve letting what the employee has done recently
blind the manager to the employees performance over the entire year. A poor
first impression may disproportionality influence the raters behavior.
Similarly a poor perception of one trait of an employee may spill over to all
attributes that seek to be evaluated. Bias is a tendency to allow individual
differences such as age, race, and sex affect employee appraisal ratings.
The Challenges in Performance Management