Performance Management and

Appraisal

Performance Management

A process that consolidates goal

setting, performance appraisal, and
development into a single, common
system, the aim of which is to
ensure that employees
performance is supporting the
companys strategic aim.

Performance Appraisal
{

The process by which employees

are assessed for purposes of
enhancing their development or
formulating an administrative
decision

Goal Setting

SMART
At the end of the previous cycle
Broad guidelines by the superior after feedback
on previous appraisal
Targets set by the appraisee in consultation with
the superior
Documenting clearly in the P-MAP

Goals
Expected Results
Expected Dates
Ways/Actions to Achieve Results
Resources/Support Needed

Balanced Scorecard
The balanced scorecard tracks key elements of
a companys strategy and gives managers a
fast but comprehensive view of the business.

Includes
not
only
the
financial
measures but also the operational
measures.
Is future-oriented.
Shows not only what results are
achieved but also how they were
achieved.

Translating Vision and Strategy: Four Perspectives

FINANCIAL
To succeed
Objectives Measures
financially,
how should we
appear to our
shareholders?

Targets

To satisfy our INTERNAL BUSINESS PROCESS

shareholders
Objectives Measures
Targets
Initiatives
& customers,
what business
processes
must we excel
at?

CUSTOMER

To achieve
Objectives
our vision,
how should
we appear to
our
customers?

Measures

Targets

Initiatives

To achieve
our vision,
how will we
sustain our
ability to
change &
improve?

Initiatives

VISION &
STRATEGY

LEARNING & GROWTH

Objectives

Measures

Targets

Initiatives

Defining the Employees Goals and work Standards

{

Assign Specific Goals

Assign Measurable Goals

Assign Challenging but Doable Goals

Encourage Participation

The Appraisal Method

{

Graphic Rating Scale Method

z

A scale that lists a number of traits and a range of performance

for each. The employee is then rated by identifying the score that
describes his/her level of performance for each trait.

Alternative Ranking Method

Ranking employees from best to worst on a

particular trait, choosing highest, then lowest,
until all are ranked.

Paired Comparison Method

{

Ranking employees by making a chart of all

possible pairs of employees for each trait and
indicating which is the better employee of the
pair.

Forced Distribution Method

Similar to grading on a curve,

predetermined percentages of ratees
are placed in various performance
categories.

Other Forms of Performance Appraisal

{

Narrative Forms

Annual Confidential Report (ACR)

Critical Incident Method

Behaviorally Anchored Rating Scales

BAR : Participation and contribution to team Projects

Make an extra effort and put in extra time to help team finish a project
Initiate team discussion on how to solve problems

Participate in problem solving by sharing good ideas

Friendly and cooperative while working with others

Socialize while other team members are working

Developing a BARS typically requires five steps:

{

General critical incidents

Develop performance dimensions

Reallocate incidents

Scale the incidents

Develop a final instrument.

Advantages of BARS
{

A more accurate gauge

Clearer standards

Feedback

Independent dimensions

Consistency

Management by Objectives
MBO generally refers to a comprehensive and formal organization
wide goal setting and appraisal program consisting of six steps:
{

Set the organizations goals

Set departmental goals

Discuss departmental goals

Management by Objectives [Contd.]

Define expected results

Performance reviews

Provide feedback

Appraising Performance: Problems

{

Potential Rating Scale Appraisal Problems

z

Unclear Standards

Halo Effect
{

In performance appraisal the problem that occurs

when a supervisors rating of a subordinate on one
trait biases the rating that person on other traits.

Appraising Performance: Problems [Contd.]

{

Potential Rating Scale Appraisal Problems

z

Central Tendency
{ A tendency to rate all employees the same way, such as
rating them all average.

Leniency or Strictness
{ The problem that occurs when a supervisor has a tendency
to rate all subordinates either high or low.

Bias
{ The tendency to allow individual differences such as age,
race, and sex to affect the appraisal ratings employees
receive.

How to Avoid Appraisal Problems

{

Know problems

Use Right Tool

Train Supervisors

Control Outside Influences

Keep a Diary

Who Should Do the Appraising?

{

The Immediate Supervisor

Peer Appraisals

Rating Committees

Self- Ratings

Appraisal by Subordinates

360 Degree Feedback

Performance Counseling

What it is?
{

The help provided by a manager to

his/her subordinates in analyzing their
performance and other job behaviors in
order to increase their job effectiveness.

Performance counseling essentially

focuses on the job, and identification of
training needs for further improvement.

Performance Counseling

Relationship
Superior

Counselee

Mutuality & Confidentiality

Conditions for Effective Counseling

{

General climate of openness and mutuality

General helpful and empathic attitude of
management
Sense of uninhibited participation by the
subordinates in the performance review process
Dialogic relationship in goal setting and performance
review

Conditions for Effective Counseling

{

Focus on work oriented behaviour

Focus on work oriented problems
and difficulties
Avoidance of discussion of salary
and other rewards

What constitutes counseling?

{

Counseling is given by one who is

senior to the other person in
competence, or in knowledge, or in
psychological expertise, or in the
hierarchical position in the
organization.
3 processes involved:
z
z
z

Communication
Influencing
Helping

What constitutes counseling?

Listens

Responds

Influences

Feedback
Direction

Helping !
{
{

{
{

Concern
Empathy the counselor has for the
counselee
Mutuality of relationship
Helping primarily involves
identification of developmental
needs of the counselee so that s/he
may be able to develop and
increase effectiveness.

Listening
Feedback

Empathy

Responding

Develop
ment

Communication

Helping

Counselling

Influencing

Identification

+ve
Reinforce
Autonomy

Mutuality

Communication

Communication
{

The general climate of conversation

in performance review should be
congenial which may help the
employee to be in a receptive
mood.
Communication may get distorted if
people are not empathic to each
other and do not try to understand
each others point of view.
Non-verbal communication is as
important as verbal communication.

Communication
{

People speak much more through

gestures and postures than through
the words.
The tone and manner of speaking is
also important.

Listening
{

Ideas (Cognitive message) gets

communicated.
But more hidden be the feelings and
the concerns the other person may
not be able to put clearly in words.

Asking questions and responding

{
{
{
{

Getting more information

Establishing mutuality
Clarifying matters
Stimulating thinking

You are worried about your lack of

knowledge of the new system. Is
that so?
This helps to bring manager and the employee to remain at the same level.

Empathic Questions
{

How is your son now?

Open Question
Why do you think we have not
achieved the targets this year while
the other company has done so?

DONT MAKE THE COUNSELLEE DEPENDANT ON YOU.

Questions that wont help

Critical Questions
{

Why did you fail to achieve your

targets?
z

Why could you not attain your targets?

How did you again fall short of your

target?
How can you achieve this target you
failed last time?

Testing Questions
{

A reporting officer who proposes to

find out why his employee was not
able to meet his target can easily
slip into a cross-examination,
testing or evaluating posture.

Leading Questions
{

Were you not able to attain the

target because the Maintenance
Department did not cooperate?

Feedback

Feedback
{
{

{
{

Descriptive
Focused on behavior of the person
and not on the person.
Is data based and specific, not
impressionistic
Reinforce positive new behaviour
Personal, giving data from ones
own experience

Feedback
{
{
{
{

{
{
{

Is need based and solicited

Is intended to help
Is focused on modifiable behaviour
Satisfies needs of both the feedback
giver and one who receives
feedback
Is checked and verified
Is well timed
Contribute to mutuality and building
up relationship

Influencing
{
{

Flander makes a distinction

Direct Mode restricts the freedom
of the other personcriticism/punishment
Indirect Mode- encourage

Some suggested techniques

{
{

You-we technique
Second hand compliment

Counseling special type of

employees

The overassertive
{

Acknowledge the controllers ability

to overpower and get him/her on
his/her own way.

The Defiant Personality

{

Plenty of warmth, respect

Frustrated and Depressed

Employees
{

S/he is a person in perpetual

motion, a driver. His/her over
dedication rarely allow him/her to
rest.
Manipulating and exploiter

Underachieving Employees
{
{

Rejected child
Empathy