Performance Management WHAT IS APPRAISAL n Performance appraisal

Performance Management

WHAT IS APPRAISAL? n Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual, semi -annual…), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.

WHAT IS APPRAISAL? n Effective performance appraisal systems contains two basic systems operating in conjunction: n n an evaluation system and a feedback system The aim of the evaluation system is to identify the performance gap (if any). The aim of the feedback system is to inform the employee about the quality of his or her performance.

Comparing Performance Appraisal and Performance Management n Performance appraisal n n Evaluating an employee’s past performance relative to his or her performance standards. Performance management n The process employers use to facilitate that employees are working toward organizational goals.

WHY APPRAISAL? n Performance Appraisal can be viewed from two different point of views viz: n Employee Viewpoint: From the employee viewpoint, the purpose of performance appraisal is four-fold: n n (1) (2) (3) (4) Tell me what you want me to do Tell me how well I have done it Help me improve my performance Reward me for doing well.

WHY APPRAISAL? n Organizational Viewpoint: n n n One of the most important point for an organization to have performance appraisal is to establish the principle of accountability. The objective is to align responsibility and accountability at every organizational level. It provides an opportunity for one-on-one discussion of the employee and the supervisor on important work related topics that may not have been discussed otherwise. Performance appraisal can have a profound effect on levels of employee motivation and satisfaction.

PROCESS OF PERFORMANCE APPRAISAL Objectives of Performance Appraisal Establish Job Expectations Design an Appraisal program Appraisal of Performance Interview Use Appraisal Data for Appropriate Purposes

OBJECTIVES OF APPRAISAL( Advanced) n n n Correlate with the organization's philosophies and mission Cover assessment of performance as well as potential for development Look after the needs of both the individual and the organization

OBJECTIVES OF APPRAISAL n n Help create a clean environment Link rewards to achievements Generate information for personnel development and career planning Suggesting appropriate person-task matching

JOB EXPECTATIONS n Here, the job expectations we are talking about are not just about what an employee wants from the company but also what exactly in terms does the company wants from the employee.

DESIGNING APPRAISAL n 1. 2. 3. 4. A program to monitor the performance of the organization’s employees is carefully designed keeping in mind the following; Formal Vs Informal Appraisal? Who is to be appraised? Who are the raters? Evaluation Criteria?

THE APPRAISAL n n This is the step where actually the performance of the employee is measures and marked. The role of the counselor is of prime importance at this step as his observations are closely linked to the appraisal of the employee.

THE APPRAISAL n 1. 2. 3. 4. 5. Some of the points kept in mind while appraisal are: Quantity of output Quality of output Punctuality of output Presence at work Cooperativeness

METHODS OF PERFORMANCE APPRAISAL

WRITTEN ESSAY n n In the essay method approach, the appraiser prepares a written statement about the employee being appraised. Describes specific strengths and weaknesses in job performance. Suggest remedy as well. It is the simplest method of appraisal as it is a narrative describing employees strengths, weaknesses, past performances, potential and suggestions for improvement.

GRAPHIC RATING SCALE n n n It is the oldest and most popular methods of evaluation. In this method a set of performance factors like quantity and quality of work, depth of knowledge, cooperation, loyalty, attendance, honesty and initiative are listed. The appraiser has to mark them each on a scale of 1 to 5 where 1 is poorly informed and 5 shows complete mastery of all phases of work.

RESULT METHOD n n MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. After that They are expected to monitor their own development and progress

BEHAVIOURALLY ANCHORED RATING SCALE n BARS combine elements from critical incident and graphic rating scale approaches. n The appraiser rates the employees based on items along a continuum, but the points are the examples of actual behavior rather than general traits or descriptions.

Graphic rating scales: BARS improvement n Behaviorally Anchored Rating Scales (BARS) n n Use critical incidents as anchors Involves multiple groups of employees in development n n Identify important job elements Describe critical incidents at various levels of performance.

Behaviorally Anchored Rating Scales (BARS) = Has behavior anchors 1. List critical incidents 2. Critical incidents retranslated to dimensions. 3. Cluster Dimensions 4. Critical incidents rated on 5, 7, 9 (? ) point scale

The Balanced Scorecard

IMPROVING APPRAISAL n n n Emphasize Behavior Rather Than Traits Recording Performance Behavior Periodically Using Multiple Evaluators Provide employees with Due process information and details Appraiser Credibility 360 Degree Feedback.

PERFORMANCE INTERVIEW In performance interview, the raters meet the concerned employee and discuss and review his performance so that they will receive feedback about where they stand in the eyes of their superiors and will give feedback on the facilitating and inhibiting factors.

PERFORMANCE INTERVIEW n (i) (iii) Performance interview has 3 main goals. To change behavior that does not meet organizational requirements or employee’s personal goals. To maintain the behavior of employees who has performed in an acceptable manner. To recognize superior performance behaviors so that they will be continued.

APPRAISAL DATA 1. 2. 3. 4. 5. 6. Remuneration administration Validation of selection programs Employee training and development programs Promotion, transfer and lay-off decisions Grievance and discipline programs HR planning

CASE n n n n n Mr. Jackie Shroff – is a new recruit in a factory, Shroff’s given confirmation letter, He has filled out the necessary forms Taken to the Personnel Manager for a formal welcome. HR tells Jackie Shroff that in case he ever has a problem, he can come to the former. Monthly review meetings: Jackie Shroff’s progress. The production team feels he is very responsible and a committed workman Takes initiative in leading teams and coming up with good Kaizens. He is proving to be a good sportsman too, proved in a match.

CASE 2 months later: n Production officers say that Jackie Shroff has started lessening his involvement n While he is still doing an excellent job on the shop-floor, somehow his motivation seems to have decreased. n Weekly review meeting n Personnel Manager delegates this job to you. n HR manager calls Mr. Jackie Shroff and ask him what is wrong. His answer was nothing. n You speak to a few informers on the shop-floor and find out that some workmen have been telling Jackie to behave like the rest of them and not show-off to the management as being extra smart. n Being new, he feels scared to take initiative and has decided to be like the rest of them. You decide to counsel him, explain the steps and approach you will follow.

Problem Needs to perform well Drive Self esteem, Social needs Barrier Goal Co workers pressure Frustration Defense Mech. • Withdrawal from motivation • Compromise

SOLUTION

n SOLUTION Counseling of Mr. Jackie Acts as a role model Leads to better performance Of other team members Counseling of other Team members Appraisal of other Team members