Performance Appraisal

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Information about Performance Appraisal
Business & Mgmt

Published on January 21, 2014

Author: pratibhatrivedi



This ppt is for all those who have interest in Performance management. Let it be employee or employer.
Every employee waits whole year in dreams of getting of good appraisal next year . He should be well prepared for it in advance.
Similarly people how are in HR department or Management should be also very much prepared to face question, and answer the query without any ego or attitude in benefit of organization.

Performance Appraisal By Pratibha Mishra

“Performance is your personality. Forget everything else”

Definition • Performance Appraisal is the approach to the management of people using performance, planned goals and objectives, measurement, feedback and recognition to motivate people to realise their maximum potential. • Performance appraisal involves the setting of clear quantifiable goals and objectives and assessing individual performance against these measures.

Is Appraisal Just Carrot for Employee

Objective Employee Organization • Increasing Role Clarity • Training and Development • Compensation and Reward • Career Planning • Enhance Corporate Values • Measure efficiency • Manage the organizational control • Growth and planning • Increase Harmony and effectiveness • Mutual goal of the employee & organization

Stages of Performance Management System 1st week 2nd week 3rd -4th week 4th week 1st week of next month

Conducting performance Appraisal Before Appraisal Process Keep good records Both praise and criticism are most meaningful when supported by factual records . Review Previous Goals Use previous goals to evaluate progress Get input from Other’s Seek feedback from others who work with the appraise in areas they will have objective knowledge of and get examples where available Prepare Carefully Prepare in advance so that you can deliver the message that you intend to Prepare administrative details • Agree on a time - set aside at least one hour. Avoid postponing the appointment, and give the employee full attention. • Select a location - office or conference room is best. • Ask employee to prepare - ask the employee to review his/her goals, and come prepared with questions.

Conducting performance Appraisal During Appraisal Process Explain the meeting agenda Outline what is about to happen in session Encourage communication • • • • • Stay focused listen encourage two-way communication ask for ideas on how they can improve their performance ask for how they feel you can help them ask for feedback on the appraisal section Keep the session focused on past and future performance, summaries discussion issues often to ensure agreement Communicating shortcomings The employee expects and should know what he/she needs to improve Be open Be versatile and open-minded if you hear things that cause you to change your opinion

Conducting performance Appraisal During Appraisal Process Evaluation process • • • Begin with the positive things that were well done Follow this with areas that need improvement and a plan on how to address them Conclude with a reinforcement of your desire to help the person grow and improve Making promises Don’t make promises you do not have control over (e.g. salary increments, promotions, transfers etc) Review goals Concentrate on a few areas- things that make a difference. Try to encourage continuation and growth in the areas of strength. Set up “smart” goals that will build strength in areas needing attention

Conducting performance Appraisal Administration • After the Appraisal • • Complete the paperwork required for the results of the appraisal Make sure the appraisee signs on the bottom line Mark the calendar on when your next appraisal session with the person will be Follow-up Follow-up on agreements made during the appraisal Learning Review what you have learnt about the employee, your records and systems, yourself, the appraisal process and your management style

Methods of Performance Appraisal Individual Evaluation Methods • Multiple Person Evaluation Methods Other Methods 11

Methods of Performance Appraisal Individual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklist Graphic rating scale Behaviorally anchored rating scale (BARS) Forced choice method Management by Objective (MBO) 12

Methods of Performance Appraisal Multiple Person Evaluation Methods Ranking Paired comparison Forced distribution 13

Methods of Performance Appraisal Other Methods Group Appraisal Field review technique 3600 Appraisal System 14

Individual Evaluation Methods Confidential Report Descriptive 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 15

Individual Evaluation Methods Essay Evaluation – The rater is asked to express the strong as well as weak points of employee’s behavior – The rater considers the employee’s : Job knowledge and potential Understanding of company’s programs, policies, objectives etc Relation with co-workers and supervisors Planning, organizing and controlling ability Attitude and perception 16

Individual Evaluation Methods Critical Incidence Manager prepares lists of statements of very effective and ineffective behavior of an employee These critical incidents represent the outstanding or poor behavior of the employees The manager periodically records critical incidents of employee’s behavior 17

Individual Evaluation Methods Checklist Method Simple checklist method Weighted checklist method Forced choice method 18

Checklist 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 19

Checklist Method Weighted Checklist Method weights performance Regularity Loyalty Willing to help Quality of work Relationship rating (scale 1 to 5 ) 0.5 1.5 1.5 1.5 2.0 20

Checklist Method Forced Choice Method Critera Rating 1. Regularity on job Most Least •Always Regular •Inform in advance for delay •Never Regular •Remain absent •Neither regular nor irregular 21

Individual Evaluation Methods Forced Choice Method This method uses several sets of paired phrases, two of which may be positive and two negative The rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker Favorable qualities earn plus credit and unfavorable ones earn the reverse 22

Individual Evaluation Methods Graphic Rating Scale A form is used to evaluate the performance of the employees A variety of traits may be used in this device, the most common being quality and quantity of work Easy to understand and use. Permits statistical tabulation of scores of employees 23

Individual Evaluation Methods Behaviorally Anchored Rating Scale (BARS) 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 24

Individual Evaluation Methods Management by objectives (MBO) MBO emphasizes collectively set goals that are tangible, verifiable, and measurable Focuses attention on goals rather than on methods Concentrates on Key Result Areas (KRA) Systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals 25

Individual Evaluation Methods Management by objectives (MBO) - Cont • Key Element of MBO Arranging organizational goals in a means-ends chain Engaging in joint goal setting  This process has the following steps:  Identify KRAs  Define expected results  Assign specific responsibilities to employees  Define authority and responsibility relationship Conducting periodic progress review Conducting annual performance review 26

Multiple Person Evaluation Methods Ranking method The evaluator rates the employee from highest to lowest on some overall criteria Paired comparison method Each worker is compared with all other employees in a group For several traits paired comparisons are made, tabulated and then rank is assigned to each worker This method is not applicable when the group is large Forced Distribution Methods The rater is asked to appraise the employee according to predetermined distribution scale. The worker is placed between two extremes of “good” and “bad” performance. 27

Other Methods Group Appraisal Employee is appraised by a group of appraisers.  The group consists of : Immediate supervisor of the employee Other supervisors who have close contact with the employee’s work. Manager or head of the departments. Consultants or Clients 28

Other Methods Field Review Technique The appraiser goes to the field and obtains the information about work performance of the employee by way of questioning the said individual, his peer group, and his superiors 29

Other Methods 3600 Appraisal System 360 Degree Performance : Combination of self, peer, supervisor, and subordinate performance evaluation It is a systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders Data is gathered and fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately behavior 30

Common Rating Errors A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well, even when such a rating is undeserved

Common Rating Errors Negative Effect: A low rating in one area yields lower than deserved ratings for other accomplishments

Common Rating Errors Central Tendency Assigning an average rating for all qualities

Common Rating Errors Confrontation Avoidance Discomfort with giving negative feedback

Common Rating Errors Initial Performance Rating an employee solely on initial impression or performance

Common Rating Errors Recency Rating an employee based solely on most recent performance which overshadows the entire year’s performance

Using the Appraisal Form The appraisal form covers the following key areas: • • • • • • • • Assessment of performance Employee’s growth and development - strengths and areas for improvement Training requirements Achievements Goals and targets (for managers and executives) Review with staff (for managers and executives) Recommendations Management review- Review by Countersigning Authority

Completing the Appraisal Form Key performance Indicator (Examples) Core Value For Manager/ Executives / Staff Customer Customer Focus •Maintain high priority in achieving customer satisfaction by quickly responding to customers need •Is effective in dealing and negotiating with internal and external customers Employee •Staff Training and Welfare: Actively provides guidance and helps staff in their career development •Interpersonal/ Facilitation of Teamwork: Promotes and develops good working relationships with other staff •Communication Skill: Speaks, listens and writes clearly and logically to share information and skills Product and services •Job Knowledge •Work Attitude •Quality Mindset •Safety Management •Problem Solving •Leadership •Goal Orientation

Common Evaluation (A) Total Evaluation The final score is the average score, calculated as follows Total Scores X 100 % Number of Questions Answered X 5

Common Evaluation (B) Grading The appraisee is then graded according to the level of his/her performance in each category according to the final score: (1) Outstanding : Performance is exceptional and far exceeds expectations. Consistently demonstrates excellent standards in all job requirements. (2) Very Good: Performance is consistent, and exceeds expectations in all situations. (3) Good: Performance is consistent. Clearly meets essential requirements of job. (4) Fair : Performance is satisfactory. Meets requirements of the job. (5) Needs Improvement: Performance is inconsistent. Meets requirements of the occasionally. Supervision and training is required for most problem areas. (6) Unsatisfactory :Performance does not meet the minimum requirements of the job. job

Achievement through Appraisal • • Growth and Development : In this section, describe how the appraisee demonstrates their strengths and areas for improvement by providing specific examples. In particular, training requirements can be identified for the areas that can be enhanced or developed through training. Training requirements refer to the skill set required by the employee to either successfully fulfill current job responsibilities or to prepare the employee for greater responsibility. • Achievement :This section allows any additional responsibilities outside of the appraisee’s job scope (e.g. ISO 9002 Steering Committee) to be acknowledged. • Goals Achievement: Appraisals for Executives and Managers, contain a section for goal setting and goal achievement assessment. • Recommendations : The appraiser provides recommendations for the career development for the employee. These may include: confirmation, extension of probation, promotion, increments, termination, etc. • Review by Director: The Managing Director will provide comments prior to filing with the Administration Department.

Writing Performance Targets and Goals Objectives of Writing Performance Targets and Goals – Specific and measurable targets and goals define what is expected from a job holder – The performance targets and goals serve as standards by which performance can be accurately measured

“SMART” Performanc Goals

“SMART” Performanc Goals To ensure that the objectives are properly defined, each of the following questions must be answered positively:• • • • • Does the statement of performance targets/goals limit the results to one specific area? Are the results well defined in terms of what is expected of the job holder? Are the objectives measurable and observable? Were objectives quantified whenever possible? Was a time frame specified? Are the performance targets/goals reasonable and within the reach of the job holder?

• • • Performance management guidebook

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