- Slides: 52
Tentative Time Management • • Warm up 5 minutes Theory part 45 minutes Interactions 45 Minutes Wrap-up 5 minutes
Performance appraisal • is the process of obtaining, analyzing and recording information about the relative worth of an employee. • The focus of the performance appraisal is measuring and improving the actual performance of an employee and also the future potential of the employee. Its aim is to measure what an employee does. • http: //www. naukrihub. com/appraisals/definition -concept. html
The concept of performance appraisal • Organization --- Goals- Achievements. • Performance assessment of staff • In order to identify the overall efficiency of the staff, • To identify aspects of the development in performance
Performance Appraisal • • • Determining the performance of the employee, How it should perform its work, Design plan for the development group, Assess the performance, Influence the level of performance in the future.
Performance Appraisal • Systematic evaluation of the performance of employees. • Understand the abilities of a person for further growth and development, • Generally done in systematic ways.
Performance Appraisal Meaning : • the act of examining someone or something in order to judge their • qualities, • success, or • needs • • http: //dictionary. cambridge. org/dictionary/english/appraisal
PERFORMANCE APPRAISAL(PA) Different names of PA • Merit rating, • Behavioral assessment, • Staff assessment • Employee evaluation, • Personnel review, • Progress report, • Service rating and • Fitness report (Bhatta : 267)
Performance Appraisal Performance assessment of staff, Through specific methods, By Supervisors, To identify the overall efficiency of the staff, To identify aspects of the development in performance and • To influence the level of performance in the future. • • • "http: //www. tvet-ortal. net/forum/showthread. php? 1898 -Theconcept-of-performance-appraisal
Performance Appraisal • A systematic evaluation of the performance of employees, • To understand the abilities of a person for further growth and development, • The supervisors measures, • Compare it with targets and plans, • The supervisor analyses the factors behind work performances of employees, • The employers guide the employees for a better performance
Performance appraisal • Rating individual employee's behaviour and accomplishments, • Rating for a fixed time period, • Systematic and objective way of judging, • The relative worth of ability of an employee in performing task(Gyawali and Aryal: 183).
Definition of Performance Appraisal • Review of the job-relevant strengths and weaknesses of an individual or a team in an organization. –Wayne F. Cascio. • The systematic evaluation of individuals with respect to their performance on the job and their potential for development. - Dale S. Beach. (Agrawal, 2009: 266)
Definition of Performance Appraisal • The personnel/HR management activity that is used to determine the extent to which an employee is performing the job effectively. - Ivancevich and Glueck (Adhikari : 259) • Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contribution and potential of group members. -Dale yoder(Bhatta: 268)
Characteristics of Performance Appraisal • • • Systematic process. Rates actual performance. Focuses on job performance. On going process. Judges actual performance. Initiate corrective actions.
Objectives Of Performance appraisal: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and other developmental needs in future.
Objectives Of Performance appraisal To provide feedback to the employees regarding their past performance. Provide information to assist in the other personnel decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. http: //www. naukrihub. com/appraisals/definitionconcept. html
Developing Performance Appraisal Consider the following : • Job Analysis : Identify the duties and tasks of the job. • Determining performance standards : Expected level of performance. • Fixing performance criteria: Creativity, attitudes and accomplishment.
Developing Performance Appraisal • Performance evaluators: Immediate supervisors, peer, rating committees, self rating, appraisal by sub-ordinates, Multiple ratters. • Selecting performance evaluating methods: • Deciding on performance evaluation interview : Who is to be involved in interview.
Developing Performance Appraisal • Understanding expected problems at the time of performance appraisal : Evaluators have to be familiar with the rules and regulations of appraisal. • Linking result of appraisals to administration and development purpose : Reward and punishment. Linking with hold upward position.
Criteria of effective Performance appraisal Should be: • Relevant : Related with the job outputs as close as possible. • Unbiased : To evaluate job characteristics of a person. • Significant : Close relation between appraisal criteria and organizational strategy. • Practical : understandable and useful to measure the performance of employees by evaluators.
Process of performance Appraisal • The performance appraisal process generates that permits the organization to access the state of its human capital ( Tiwari : 211)
Process of performance Appraisal • Set performance standards: quantity, quality, time and cost. • Communicate performance standards: expected in terms of performance • Measure actual performance: personal observation, internal reports and specialist report. • Find deviations: magnitude, nature , causes and incidence of performance. • Discuss appraisal with employees : Comparison of actual results with agreed standards. • Initiative corrective actions: correct deviations back on
Methods of performance appraisal Depends upon: • Job nature, • Organization climate • Cost of evaluation and implementation facilities
Methods of performance appraisal There are three Performance appraisal methods: 1. Job standard-oriented method 1. 1 Essay Method : The rater writes narrative essay describing an employee’s performance: Strength and weaknesses. Job performance. Leadership ability. promotional potential. Training needs. suggestion for improvement.
Methods Performance appraisal • 1. 2 Checklist method : 1. 2. 1 Simple checklist: descriptive statements of employee behaviour and characteristics. § Follows supervisor’s orders § Helpful to customers § Sincere § Punctual § Takes responsibility § Helps other employees 1. 2. 2 weighted check list :
Methods Performance appraisal 2. 3 Forced choice method: The rater is forced to choose between two or more behaviour-related statements that are most or least descriptive of employee being appraised.
Methods Performance appraisal 2. 4 Critical incident method: Bank Continuing Target critical incident duties 1. Deposit 1 o lakh mobilized 11 mobilization lakh 2. Customer 5 minutes for deposit 15 minutes for deposit 3. Service 10 minutes for one hour for withdrawal
Methods Performance appraisal 2. 5 Graphic rating scales : The rater provides a subjective evaluation of an employee’s performance and traits along scale. § quality and quantity of work, § Attendance § Attitude § co- operation § Initiative
Methods Performance appraisal 2. 6 Behaviorally anchored rating scale: combination of incident and graphic rating scale method. • collect critical incidents. • reclassify incidents
Methods Performance appraisal 3. Comparison oriented (relative standards) 3. 1 Ranking: (a) Simple ranking: the evaluator ranks each employee separately on the basis of performance. (b) Alternative ranking : only one employee can be the best or worst. 3. 2 Paired comparison: compares each employee with pairs.
Methods of performance appraisal 3. 3 Management by objectives : Based on objectives, Time bound accomplished. collaborative goal setting by manager and subordinates. Action planning : Activities for goal achievement, time and resource requirements performance review : monitor and review own performance. Performance evaluation : feed back :
Advantages of Performance Appraisal • Promotion: To chalk out the promotion programmes for efficient employees. • Compensation: . For bonus, high salary rates, extra benefits, allowances. • Employees Development: To analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. Helps in framing future development programmes.
Advantages of Performance Appraisal • Selection Validation: The strengths and weaknesses of selection procedure. Future changes in selection methods. • Communication: -The employers can understand accept skills of subordinates. -The subordinates can also understand create a trust and confidence in superiors. -It also helps in maintaining cordial and pleasant labour management relationship. -It develops the spirit of work and boosts the morale of employees. • Motivation: Motivate employees for better job and helps them to improve their performance in the future.
Appraisal Interviewer • Appraisal interview is face to face discussion and review of performance appraisal with the employee. • It provides performance feedback to employee. • It is conducted after performance appraisal is done.
Appraisal Interview Objectives of AI : • To change behavior of employee who is under appraisal standards. • To maintain behaviour of employees who meet the appraisal standards. • Reinforce behaviour of the employees whose performance is above the performance standards.
Problem in performance rating • • • Changing standards, Different patterns, Role conflict , Time gap, Rater biasness Depends upon rater’s skill, Organizational indifference, Human error, Lack of linkage with reward, punishment and development.
Factors distorting Performance appraisal Leniency Error - a rater's bias that occurs because of the rater rating an individual too positively. Halo effect or error -a cognitive bias refers to an observer's overall impression of a person. Central tendency Similarity error Political influence Nature of work
Effective performance appraisal system Comprises: • Relevance: the condition of being relevant • Sensivity (Distinguish the effective performer) • Reliability : reliability is the "consistency" • Acceptability • Practicability
Challenges to effective Performance Appraisal • Qualified rater, • Limit all evaluation in formally designed methods • Rating too many employees, • Emphasis on person
Performance appraisal in Nepal • Promotion oriented purpose. • Subjective
Performance appraisal in civil service • Immediate supervisor 25 • Reviewer 10 • Review committee 05 • Total 40
Performance appraisal –Result oriented administration • Result oriented administration also involves analysis of the past performance and assumption about the future. (Acharya : 307)
A rating scale is Outstanding Good Fair Poor Supervisor 25 21 17 13 Reviewer 10 8 6 4 Review committee 5 3. 75 2. 5 1. 25
System of Performance contracts • The government has started to sign performance contracts with the chief executives of the State-owned enterprises and heads of national priority projects and senior government officials, in accordance with Good Governance Act which provides for "departmental action" and compensation for non-compliance (Acharya : 30 )
Performance appraisal in Nepal • Performance appraisal in Nepal has remained Ritualistic, unsystematic and ineffective. Personal biases and judgment of evaluators tend to be pronounced. The system has not motivated employees towards higher performance (Agrawal, 2013 : 147)
• Performance contracts with results-based performance indicators will be made with all Secretaries of the Government of Nepal, and a system of performance evaluation implemented(http: //nnfsp. gov. np/Publication Files/ed 81 a 152 -ef 28 -4 f 09 -81 dee 2 e 223 dbcb 7 b. pdf pp 131)
Conclusion • Performance appraisal is an important aspect of Human Resource Management. It is human resource who makes possible to achieve organizational goals. Performance appraisal should be handled in a very efficient way by which in one hand organization can be benefitted and on the other hand the personnels can develop their better career.
References • Acharya, Madhu Raman (2013), Business of Bureaucracy, Vidyarthi Pustak Bhandar, Kathmandu. • Adhikari, Dev Raj (2011) Human Resource Management, Buddha Academic Publishers and Distributors Pvt. Ltd, Kathmandu, Nepal. • Agrawal, Govind Ram (2013), Human Resource Development in Nepal, M. K. Publishers and Distributors, Kathmandu, Nepal. • .
References • Agrawal, Govind Ram (2009), Human Resource Management in Nepal, M. K. Publishers and Distributors, Kathmandu, Nepal. • Gyawali Achyut and Aryal Surendra (2065), Reliance Publication House Pvt. Ltd. Kathmandu, Nepal.
References Nepali : • Bhatta, Bhim Dev (2008) Personnel Administration, Ms. Shashi Bhatta, USA. • Kanun Kitab byabasta samiti (2072 B. S. )Nijamati Sewas Ain, 2049 Tatha Nijamati Sewa Niyamawali, 2050. • Tiwari Madhu Nididhi (2061 B. S. ) Ms. Kanti twari, Dillibazar, Kathmandu, Nepal.
web • http: //dictionary. cambridge. org/dictionary/en glish/appraisal • http: //nnfsp. gov. np/Publication. Files/ed 81 a 15 2 -ef 28 -4 f 09 -81 de-e 2 e 223 dbcb 7 b. pdf pp 131) • http: //www. tvetortal. net/forum/showthread. php? 1898 -Theconcept-of-performance-appraisal • http: //www. naukrihub. com/appraisals/definitio n-concept. html