Performance Appraisal



Performance Appraisal

Today’s working culture demands a great deal of commitment and effort from the employees, who in turn naturally expect a great deal more from their employers. The development of much more participative style of management in many organizations is a positive step towards meeting such heightened expectations. This participative style can be expressed in a variety of practical ways. For eg: work teams, quality circles, and of course regular performance appraisals. Appraising the performance of individuals and groups and organizations has been a common practice in all societies. While in some instances, these appraisal processes are structured and formally sanctioned, in other instances they are informal and integral part of daily activities. Performance appraisal is the method of evaluating the behavior of an employee at the work place, normally including both quantitative and qualitative aspects of job performance. Performance here refers to the level of accomplishments. In the sense that there are expectations from every person in an organization, a certain level of output or performance is expected from all. How an employee actually performs in the light of the expectations determines whether his performance is exceptional, good, average or below that. It is always measured in term of results. This process has very a high implication on various other HR functions, like recruitment, training, manpower planning etc. It is important that the employees are aware of their goals, how to achieve them, how they are matching up to them, what should be done if they are not. There is not one right way of doing the performance appraisals. The most appropriate route to be taken will depend upon the current style and status of the organization. People do have a negative attitude about the performance appraisals. Many have the complaints such as, “It’s just yearly rollicking”, or “It is like school report time” 2

Performance Appraisal or “Nothing comes out of it anyway.” A significant consideration in choosing how to go about introducing or revising a performance appraisal scheme will be an understanding of how such attitudes have been perpetuated and how they might be overcome. People carry bad experiences with them for a long time, in this case, perhaps from job to job. Much has to be done at the time of introducing or revising a performance appraisal scheme to reassure those who will be involved that the intentions behind conducting the performance appraisal are sincere and positive. Performance appraisal must be seen as an intrinsic part of a manger’s responsibilities, not an unwelcome an time consuming addition to them. It is about improving performance and ultimately the effectiveness all apart of the manager’s remit. 1.1 MEANING AND DEFINITION:

In simple terms performance appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality, quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, verstality, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

A formal definition of performance appraisal is:


Performance Appraisal

“It is the systematic evaluation of the individual with respect to his or her performance on the job and his of her potential for development.” A more comprehensive definition is: “Performance appraisal is a formal structured system of measuring and evaluating an employee’s job, related behavior, and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and the society all benefit.” The second definition includes employee’s behavior as part of the assessment. Behavior can be active or passive – do something or do nothing. Either way behavior affects job results. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, performance appraisal,

performance evaluation, employee evaluation and merit rating. In a formal sense, employee assessment is as old as the concept of management.



Performance Appraisal Performance in a job is a matter, which needs to be considered both in terms of results achieved and behavior demonstrated. Results required in relation to quantity, quality or timing can be established in most aspects if a large number of jobs. Comparing results reached to results required is essential in evaluating the performance. Reviewing results in the context of actions and behavior is necessary to develop a full understanding of individual performance. In determining what actions have led to success or the lack of it, this aspect of examining performance will represent a significant element in forming plans for the future, so that strengths can be built upon and weakness addressed. There are, of course, certain jobs or features of certain jobs, where it is not always possible to state a required result or standard that clearly. In these instances considering behavior assumes a greater significance when appraising the performance. The manager for the home for the elderly, for example would be able to show ability in controlling budgets in a tangible manner by keeping within certain financial guidelines. The most important part of such job however, would concern the health and well being of residents. Apart from being difficult to measure, these aspects could be somewhat beyond the manager’s control, and it would be unfair to make an assessment on the amount of medicines used or the mortality rate. Therefore it follows that the manager’s actions in promoting the good health and well- being of the residents are the most relevant factor in evaluating performance, rather than the results. In this case, examples of such action might be ensuring that specialized help is summoned when necessary, listening to residents who want to talk about their problems, or perhaps arranging appropriate diversions and entertainment. Performance appraisal appraises performance of an operating unit, like department or section, or of an individual. The Government of India may appraise the performance of the BARC as an organization. The Director of BARC may appraise the performance or any department of division. These


Performance Appraisal appraisals start from facts/data, lead to opinions on adequacy/

appropriateness and should lead further to some decisions being made on whether any changes are necessary in the manner or direction of work of the appraised unit, individual. At the operating unit level the decision may relate to the allocations of resources. The decisions may also relate to the continuance. In the case of the individual, the appraisal may be of a. His outputs (how well has the work been done) or of b. Inputs (what are his skills, behavior patterns, motivation etc.) The appraisal of outputs helps in deciding on rewards, commendations etc. The appraisal of inputs helps in deciding on development, including promotion transfer (job or location) or both. These decisions have implications in terms of the careers of persons and therefore the quality of appraisal is major concern in organization all over the world. Some of these controversies and the suggested remedies will be discussed during the session. 1.2 PERFORMANCE APPRAISALS AS A NATURAL PROCESS OF MANAGEMENT: Performance appraisal as a natural process of management for three reasons: MEASURING PERFORMANCE: Performance can be used as a means of measuring performance in accordance with the adage: ‘If you cannot measure it you can’t manage it.’ But the purpose of measurement is to indicate not only where things are not going according to the plan (i.e. there is a negative variance from the anticipated result) but also to identify where things are going well (a positive variance) so that steps can be taken to build on success. Performance appraisal is means for creating and maintaining a ‘climate of


Performance Appraisal success in the organization.’ Have a success – oriented strategy does not only mean expecting people to succeed but also if they do not succeed, helping them to succeed. 1.2.1 IMPROVING PERFORMANCE:

Building a climate of success involves taking specific steps to improve the performance of individuals or teams. Because managers depend on that performance, they have a major and continuing responsibility to take whatever action is necessary to improve it. This is an entirely natural process of management and whenever anyone completes a task or project good managers will consciously or unconsciously consider the following points:      How well was that done? Could it have been better? Was the right person selected for the job? In what ways, if any, does the person need to improve? What guidance or help can be provided to this person to ensure that

better results are achieved next time? 1.2.2 EXERCISING LEADERSHIP:

There are many ways of defining leadership. Basically, however it is about getting things done through people. Leaders point out the way and ensure that everyone gets there. Leadership is about encouraging and inspiring individuals and teams to give their best to achieve a desired result. Managers as leaders have to achieve the task. That is why they and their teams exist. The leader’s role is to ensure that the team’s purpose is fulfilled. If it is not, the result is frustration, disharmony, criticisms and, eventually perhaps disintegration of the group.


Performance Appraisal Achieving the task involves leaders in getting answers to the following questions:  What needs to be done and why?  What results have to be achieved?  What problems have to overcome?  Is the solution to these problems straightforward or is there a measure of ambiguity?  Is this a crisis situation?  What is the time-scale for completing the task? In the light of this analysis leaders have to take whatever steps are necessary to motivate the individuals in their team and also, importantly; to develop good teamwork. Motivating individuals is a matter of: o Understanding their needs – are they interested primarily in money, security, status, advancement, achievement, or what? o Remembering that money is not the only reward that most people need and want. People can also be motivated by recognition, praise, and the opportunity to make the best use of their skills and abilities and, indeed, to enhance them. o Bearing in mind the importance of expectations as an influence on motivation. A reward, whether financial of non financial, will be much more effective when people know what they can get if they work well enough. o Creating conditions where individuals can best satisfy their own needs by directing their efforts towards achieving the success of their team, department and, ultimately, the organization. This is why one of


Performance Appraisal the arts of leadership is to get people to think for themselves about what they can and should do and by getting them to understand and agree to the standards and targets they are expected to achieve. o Recognizing the fact that people can be motivated by the work itself if it satisfies their need for responsibility and achievement. This can be done by :   Increasing individual responsibility, ‘ empowering’ them ; Giving them more scope to vary the methods, sequence and pace of Giving people a complete natural unit of work, thus reducing Giving people the control information to monitor their own

work;  specialization;  performance. The process of performance appraisal is essentially a means for managers to develop and improve their leadership skills in each of the areas described above. 1.3 OBJECTIVES OF PERFORMANCE APPRAISAL:

Performance appraisal is potentially useful for managers in many ways. At base however there are two fundamental reasons for developing such systems. • • Assessing past, which outlines the evaluative aspect of performance appraisal. Improving future performance, which highlights the development aspect of performance appraisal.


Performance Appraisal


OTHER OBJECTIVES ARE AS FOLLOWS: b) c) d) Feedback to the employee regarding how the organization Evaluation of relative contribution made by individuals and Criteria for evaluating the effectiveness of selection and

a) Promotion, separation, and transfer decisions. viewed the employee’s performance. entire departments in achieving higher level organization goals. placement decisions, including the relevance of the information used in the decisions within the organization. e) f) g) h) i) j) Reward decisions, including merit increases, promotions Ascertaining and diagnosing training and development Criteria for evaluating the success of training and and other rewards. decisions. development decisions. Information upon which work scheduling plans, budgeting, Provided employees the opportunity to formally indicate Show organizational interest in employee development, and human resources planning can be used. the direction and level of the employee’s ambition. which was cited to help the enterprise retain ambitious, capable employees instead of losing the employees to competitors. k) Provided a structure for communications between employees and management to help clarify expectations of the employee by management and the employee. l) Provide satisfaction and encouragement to the employee who has been trying to perform well.


Performance Appraisal



The purpose can be highlighted by way of the following chart: General application Development Uses:     Specific purpose Identification of individual needs. Performance feedback. Determining transfers. Identification of individual strengths and developmental needs. Administrative uses: Salary. Promotion. Retention of individual performance. Recognition of individual performance. Lay-offs. Identification of poor performers.

     


Performance Appraisal Organizational maintenance  / objectives      HR planning. Determining organizational training needs. Evaluation of organizational goal achievement. Information for goal identification. Evaluation of HR systems. Reinforcement of organizational development needs.



The benefits of performance appraisal are two fold. The employees develop themselves while the organization gets the benefit of improved workforce. A few benefits are stated below: 1.4.1 A. Benefits to the organization : • Facilitates the achievement of organization goals and

strategies. • • Contributes to improved staff morale. Facilitates continuous performance improvement, organization

development and culture change. • Assists in establishing a performance culture – of quality,

efficiency and achievement. • Provides a formal means of discussing competency gaps and

how to address these – leading to more competent work force.


Performance Appraisal

• • •

Helps build a climate of openness and trust. Adds to a participative work culture. Forms part of the legal process in addressing persistent poor

performance. • Provides the basis for fair remuneration based on actual

performance, so employees can see and experience a clear link between their performance and the rewards they receive. • Also provides systematic judgments to back up transfers,

demotions or terminations, in extreme cases. 1.4.2 B. BENEFITS TO EMPLOYEES: • An opportunity to get formal feedback from line managers on

how their performance is viewed – so that they can learn what they do well and what needs to improve. • Ensures clarity regarding work expectations and standards,

reducing anxiety / stress and conflict with line managers. • An opportunity to discuss their job competencies (or lack

thereof) – leading to targeted training and development – helping them to realize their full potential. • • Provides a forum to share new idea and to air views. Can be used as a base for coaching and counseling the

individual by the superior. 13

Performance Appraisal


    




ROLE OF PERFORMANCE APPRAISAL IN AN ORGANIZATION: A major step in devising a performance appraisal scheme is deciding exactly why it is necessary to have one. Organizations need to consider their objectives long before they design their schemes, if they are to ensure progress towards meeting their objectives. To establish the relevance of objectives in performance appraisal they have to be considered in the light of organization objectives. Is there a statement of plans for next three to five years? Are the objectives of the appraisal scheme consistent with those plans? Objectives must also be considered in the much wider context of people management and how they relate to organizational priorities in maximizing human resources. 2.1 Appraisal and Management style:

The practice of monitoring and improving performance is all part of being a good manager. Consulting on problems, maintaining standards, assisting in reaching targets, and improving effectiveness are some of the ways in which results are obtained through people. Introducing performance appraisal into an organization whose management is generally autocratic would be something of an anomaly. It would also


Performance Appraisal be doomed to failure, since it would be greeted with a fair degree of suspicion. Commitment to it would be lacking. Introduction or revision of an appraisal scheme can be natural extension to the increasing professionalism in a participative style of management. 2.2 Appraisal and Communication: appraisal is a particularly refined form of corporate


communication, using it to improve communications is a relevant objective. This applies both to communication on one to one basis between managers and staff, and to management communication in general. Here is an opportunity to ensure that all issues relating to performance are clarified and to exchange information in order to improve operational effectiveness. Seen as a way of strengthening good communications, performance appraisal has a rightful place in an organization’s communications policy. What must be avoided, however, is introducing appraisal because communications are bad. An appraisal scheme will not create better corporate communication on its own. It can only serve as a part of a system where regular updates, team briefings, meetings, and consultation are the norm. If communication is bad, what is going to happen to all the feedback obtained from appraisees? There is a strong likelihood that it will fade away under the pressures of day-to-day operational needs. 2.3 Appraisal and Motivation:

It is now understood that achievement, recognition involvement, job satisfaction and development are more likely to motivate than anything else, given that they are provided in satisfactory working conditions and that rewards are appropriate. Appraisal links into the motivational aspect of the manager’s job in that it can be aimed at giving recognition, helping people achieve, involving


Performance Appraisal them, assisting in creating job satisfaction and providing a forum in which to discuss development. How individuals are managed has a direct relevance to how motivated they are likely to be. There is no doubt that appraisal well handled, strengthens relationship because of the opportunities it creates for good quality communication. Appraisal also offers a good opportunity for the managers to keep in touch with their employee’s changing capabilities and aspirations. Performance appraisal also compliments the idea that with agreed levels of attainment individuals will work willingly and reasonably interdependently towards achieving goals.


Appraisal and Reward:

2.4.1 Money There is something fundamentally right about allowing those who achieve more and contribute more in an organization to reap a larger proportion of the rewards it has to offer. As a basis for distributing pay, a performance appraisal scheme can be helpful particularly if it concentrates on quantifiable standards and targets. It is certainly better than some alternatives, which may amount to no more than a series of decisions about who “ deserves” what. However, the disadvantages of linking reward to appraisal may outweigh the advantages. The problem of relating pay and performance is that, for it to be absolutely fair, everyone must be enabled consistently. The abilities of employee’s immediate superiors, both as manager and assessors, similarly, is the rarely uniformly of good across is and often organization, distribution resources

inconsistent, resulting in difficulties which may mean that the potential


Performance Appraisal for good performance is frustrated. Often performance is affected by other matters beyond the control of managers or subordinates. It may also happen, that if there is performance – related pay scheme, employees may feel that too much of emphasize is on quantity rather than quality and the standards have to be ceased to be important. 2.4.2 Promotion The concept of discussing promotion potential and career planning has been questioned from time to time. For certain employees the exercise may have little point if such issues are not discussed. However, a prime contender for an impending promotional opportunity is not necessarily going to be completely honest about current problem area at an appraisal interview. Career planning is too important both to individuals and organizations. To give it due emphasize, and to remove a possible obstacle to appraisal processes, career planning may well be need to be the subject of a separate exercise. 2.5 Appraisal and Performance Standards:

Discussing and agreeing standards of performance is an ongoing part of manager’s job. As is continual assessment and considering how to maximize performance potential. Appraisal is a formal extension of this responsibility, and given that it is carried out with commitment and a degree of skill by the managers, raising levels of efficiency in the organization as a whole is a natural outcome. 2.6 Appraisal and Training and Development:

To analyze training and development needs is often a stated objective of performance appraisal, and one that focuses on benefits to the individual and the organization. The real benefit of appraisal in this area is that it reaffirms that managers are responsible for the training


Performance Appraisal and development of their own staff. An appraisal report form with the appropriate reminders on it creates an added discipline to ensure that managers are aware of this responsibility. Appraiser and appraisee discussing previous training experiences, agreeing the best options and formalizing what improvements are expected to result from learning, is the most pertinent way to ensure that any training carried out actually has some impact. Evaluation of training is also a part of appraisal process, since any plans for training made during an appraisal must be thoroughly followed up. Evaluation of training should be carried out as a separate, specifically designed exercise, but the information obtained at an appraisal will be an additional indicator as to how well training resources are being used. 2.7 Appraisal and Planning:

Planning current and future staffing needs is a legitimate aim in performance appraisal; although not always an easy one to reach coherently, because of the many influences that can have negative or positive impact on the planning system. 2.7.1 Manpower Planning Performance appraisal can give a lot of data about who is in the right job, who wants to change jobs and who should be considered for development or promotions. 2.7.2 Job Contents Feedback from the jobholders often gives a better insight into the evolution, which takes place almost unnoticeably in certain in certain jobs. Appraisal is an ideal situation in which to discuss and recognize changes in job content that have not been formalized. An individual may have stopped performing a key task of the job description because they do not like it and could have coerced others


Performance Appraisal into doing it for them. This does not alter the fact that they should be doing it, and operational needs determine that they should still at least carry out the function when necessary. The manager has to collate feedback and review it in relation to departmental and organizational needs. The main task is to follow through and either to make appropriate changes or to explain why no changes can be made. 2.7.3 Evaluating Trends Appraisals can be extremely helpful in highlighting certain trends. On the basis that not all of the people can be wrong all of the time, some issues may emerge which need attention at senior level.. Additionally, individual managers can learn a great deal about the impact of their management style and practices, and how they might make changes for the better. 2.8 Appraisal and Record Keeping:

Whilst appraisal should never be a “paper-based” procedure, a record of it is essential for some sensible reasons. An action plan would need to be written down, and it is always practical to have a record of employee’s performance standards, aspirations, and potential for planning purposes and possibly for the allocation of the salary awards. 2.9 Appraisal and Staff Retention:

Many vacancies are unavoidable through retirement, illness, etc. However, many can be avoided if managers address themselves to some of the other issues which cause staff to leave for alternative employment – frustration, boredom, lack of opportunity, lack of recognition, etc. Both continuous and formal appraisal must be seen as a way of identifying problems before they reach the point of no return and another employee ends up as a statistic on the labour turnover


Performance Appraisal analysis. With the help of performance appraisal the retention can be done successfully.



Performance Appraisal







APPRAISAL PROCESS: The skills required by managers to carry out a performance appraisal process are often underestimated. They need to know how to agree clear, measurable and achievable objectives with their staff. They need to know to define and assess competence requirements. They have to provide the feedback and know, not only how to commend staff on their achievements in appraisal discussion meeting, but also how to coach them and help them to recognize where their performance has been substandard and needs to be improved. The manager is faced with a new and more challenging situation: feedback, coaching, and counseling skills and the ability to handle and encourage upward appraisal all come to the fore. However, performance appraisal does not require managers to act out of character. In fact this would be most undesirable. It is no use managers being sweetly reasonable and consultative during the appraisal


Performance Appraisal discussion and then reverting to their autocratic, directive type of behaviour for the rest of the year. This sort of behavior would only confirm the suspicions of some people that appraisal is meaningless affair. What such managers can be persuaded to do, however, is to learn that the skills of performance appraisal that can help them to get better results from their staff and that some modification of their behavior during the course of their day – to – day work would have beneficial results in the shape of improved performance. Interpersonal or interactive skills are those used by people to build and maintain relationships with one another in order to achieve a purpose (which may or may not be articulated). The social interaction, which takes place when using interpersonal skills involves both verbal behavior ( asking or replying to questions, making statements, etc.), or the non – verbal communication ( facing people, looking at them, reacting physically to what they say or do etc. by nodding, smiling etc.). Interpersonal skills are exercised when an appraiser, initiates action to achieve an aim which is dependent on the reaction and the agreement of the appraissee. The appraisee may have their own objectives and will certainly not be inert or passive. Appraisees will produce behavior and reactions which have to be taken into account by appraisers who will order their behavior in a way it is believed will contribute to achieving their objectives. Appraisers have to ensure that appraisees will interact with them productively and this will be affected by how appraisers see appraisees and vice versa. The attitude of appraiser will depend partly upon their knowledge of the appraisees but may be affected by deep routed feelings about people in general or the appraissees in particular. 3.1 PERFORMANCE GUIDELINES FOR MANAGERS:

3.1.1 Professional and technical knowledge:


Performance Appraisal  Has expertise in the productive marketing of the business unit’s Has expert knowledge of business unit’s services and sufficient

services.  familiarity with other business unit’s services to enable customer needs to be met.  Has expert knowledge of basic operations of the total business unit and the appropriate management information.

3.1.2 Organizational and Business Knowledge:  Understands and applies organizational knowledge to the business unit.   Knows whom to contact to gain additional knowledge. Appropriately applies knowledge of the team to enhance the

operations of the business unit. 3.1.3 Interpersonal and Communications:  Responds constructively when dealing with customers and colleagues.      Can establish rapport easily with a range of different people. Helps people in groups and teams to ‘get on together’. Can say “No” when necessary and set standards/ limits for others. Makes it easy for others to be open and honest. Presents ideas and information clearly in speech and writing.


Performance Appraisal 3.1.4 Influencing Skills:  Maintains a good relation with customers even when their needs Actively involves others in decision- making and wins coUses contacts appropriately to obtain information and help. It is assertive for self and /or on team’s behalf without damaging can’t all be met.  operation.  


3.1.5 Critical Thinking:  Readily spots trends and patterns in job–related quantitative and Tests the quality of available information and draws logical Can analyze varied major problems and at the same time identify qualitative data.  conclusions from it.  appropriate actions. 3.1.6 Self – Managing and Learning:    Is objective about own strengths and weaknesses. Prepared to back own judgment publicly. Concentrates and maintains focus, even when constantly

interrupted.   Makes good use of opportunities to learn. Recognizes and deals effectively with personal stress.


Performance Appraisal

3.1.7 Achievement and Action:  Is clear about what ‘success’ means for the business; successful Makes decisions without ‘passing the buck’ and sets personal Take early actions to deal with problems even if it is difficult or Makes best use of resources to achieve objectives. in overcoming obstacles.  performance standards, too.  unpopular. 

3.1.8 Initiative and Innovation:  Identifies option for improvement and acts on them – or Challenges accepted ways of doing things when this means Activity encourages the team to come up with new ideas and Experiments and learns from mistakes. motivates others to do so.  breaking with ‘time honoured’ traditions.  approaches. 

3.1.9 Strategic perspective :   Understands key organizational aims, values and strategies. Anticipates how trends and events in different areas of the

business and environment will affect them.


Performance Appraisal  Actively encourages and supports people when they offer

different perspectives and opinions. 3.1.10 Capacity for Change:   Gradually modifies approach or strategy as the situation changes. Can accept and work with new approaches, even if not totally in

agreement with them. Keeps focused in the phase of uncertainty. Helps the team to accept and adjust to changed approaches.  Matches opinions in response to contrary evidence. Can modify on style when appropriate.




THE APPRAISAL PROCESS: 4.1 I. Setting the objectives of performance appraisal: The purpose for evaluating the performance of the employee can be for:  Training (finding the deficiency in the performance and Promotions (finding the most suitable employee from the Transfers (finding out the employees potential, interests imparting training accordingly).  cluster so that he can face the new challenges posed by the promotions).  and accordingly transferring him to the most suitable job in order to get the best out of him and retain him in the organization).  Giving pay increases (finding out the employee who is efficient and effective in performing his tasks at work he does). 28

Performance Appraisal Thus depending on the necessity of appraisal the performance objectives will be designed. The objectives should enable the employees to know exactly the standards of performance they have to maintain. It helps the organization to set standard of performance against which the actual performance of the employees would be rated and thus the organizations goal would be met in an efficient and effective manner. 4.2 II. Establishing job expectations: After formulating the performance objectives a discussion is held with the employees who’s performance is to be rated. The supervisor makes the job expectations, duties and what is expected out of him clear to the employees.

4.3 III. Designing the appraisal programme : In order to design the appraisal system various aspects are to be considered in order to satisfy the purpose of the appraisal system. This would include; i. ii. iii. iv. v. vi. The person who’s performance would be assessed, The person who will assess the performance, The possible problems that would be faced, The possible solutions that would solve the problem. The methods to be used to appraise the performance. The period when the performance is to be appraised. The decision regarding whether the appraisal would be done in a formal way, i.e. once in a year or twice or it can be done on informal basis i.e. whenever there is a need to appraise the performance depending on the needs of the organization.


Performance Appraisal For example, for promotion or transfer or when there is an emergency situation. It is however better to have a formal appraisal system in order to know whether the performance standards are met, in addition informal appraisal system would help to go to the deeper aspects like, when the employee is not able to perform to the standards of completing the job on time, then he can be asked for the reason which can be personal or organizational, this can help to identify the cause of the deficiency and coming up with appropriated solution in order to make the employee complete his job on time.


Ratees and Raters:

A ratee may be defined as an individual, work group, division, or an organization whose performances need to be rated. Raters can be immediate subordinates, supervisors, peers, specialists from clients, the HR department, or a committees, self-appraisal,

combination of several. The choice of raters is done according to the category of the ratee whose performance is evaluated. For instance:  performance.  Peers are better position to evaluate facts such as contribution to work groups projects, interpersonal effectiveness, communication skill, reliability and initiative of job performance. Immediate supervisors are fit to appraise the performance of their subordinates as they might be more familiar with his or her


Performance Appraisal  Clients that are within the organization who have direct

contact with the ratee or the external clients can also be used for rating the employee performance.  Rating Committees comprises of immediate supervisors and other supervisors who are in contact with the ratee are adopted where employee performs variety of tasks in different environment.  In self-appraisal employee himself or herself evaluates his This may be best suited where selfor her own performance.

development is the main purpose of evaluation.


Criteria for Rating Performance:

It includes the basis or criteria for performance appraisals. It should be determined on the basis of the employees perform. The criteria should be such that it enables the assessment of the jobholder’s performance in a fair and accurate manner. Depending upon the job the employee does, the standard for the criteria would be determined. For example, a shop floor worker should be more proficient in technical skills hence his performance appraisal should emphasize more on technical skills. While for a managerial position the emphasis should be more on social skills. The current approach in setting the criteria is to make them SMART: • • • • • Specific Measurable Achievable Relevant Timed 31

Performance Appraisal

Keeping the smart approach in mind performance can be assessed depending on the following criteria; Quality: This answers the question, how well? When an

employee is given a task, a certain level of quality is expected. If the employee exceeds the expectations then the quality of work performed is considered to be excellent and if it is below the expectation, it is considered poor in quality. Quantity: This answers the question, How much? For example,

measuring the performance based on the number of units produced, volume of sales achieved or the number of activity cycles completed. Timeliness: This answers the question, By what time? For every

activity, some time is required to complete it as per the standards. The less the time taken by the employee to perform the activity, maintaining the standard quality of work, the higher he is rated for timeliness. Cost effectiveness: This answers the question, At what cost? It technological or material. That is, the organization’s

refers to optimum utilization of organizational resources, be it human, financial, resources are used in such a way that the returns are maximum. Need for supervision: This answers the question, What level of

self sufficiency? This means how well an employee can carry out his job without seeking his superior’s help. How self sufficient and independent the employee is, in carrying out any task given to him. Interpersonal impact: This answers the question, How social

he is? That is how well the employee co-ordinates and co-operates with 32

Performance Appraisal his superiors, colleagues and customers and maintains a good rapport with all and fosters a feeling of goodwill.

Skills: This answers the question, How efficient he is? That is

does he poses personal, social, technical skills. Personal skills include such things as to listen, to question, to debate, to experiment etc. Social skills include such skills as the ability to encourage, to motivate other, to meet people, to support people, to train others and so on. Technical skills include area which covers all the aspects of work that require people to do something specific. For example, wide technical knowledge of company’s product with specialist knowledge of some. Knowledge: This answers the question, How much a person

knows and how well can he retain the information? That is how a person keeps himself/ herself aware of what is happening around and to use his /her knowledge whenever needed. Experience: This answers the question, How experienced a

person is? That is whether a person has done the same thing over and over again or they have done many different things. The first four- quality, quantity, time and cost are objective and the next two- supervision and social relationship are subjective. Hence the


Performance Appraisal appraisal criteria are either person – oriented (subjective) or result’s oriented (objective).

4.4 IV. Performance Interview: The performance interview is the formal face-to face meeting between the employee and the appraiser. In such interviews the information, which is obtained from the appraisal form, is discussed. This discussion is important as the employees receive feedback about where they stand in the eyes of supervisors. After this important decision regarding salary, promotion and training, etc are made. Feedback is necessary in order to bring improvement in the performance especially when performance is not as expected. Performance interview has following goals: To change behavior of employees whose performance does not To maintain the behavior of employees who perform in an To recognize superior performance behavior so that they will be To provide a rationale for salary reviews. To improve communication between superior and subordinates.

meet organizational requirements or their own personal goals.  acceptable manner.  continued.  


Performance Appraisal Raters offer feedback to ratees through several methods. The most popular methods include tell and sell, tell and listen, problem solving and mixed.

In tell and sell (direct interview ) the manager tells the

subordinate how well he is doing and persuades him to accept what has been decided for him in terms of specific goals for improvement. In the tell and listen interview the manager tells the subordinate

how he is doing but then sits back and listens to the individuals point of view both about the appraisal and about any follow-up action required. This provides the subordinates with chances to participate and establish a conversation with his superior. In problem solving (participative interview) an active and open

conversation is established between the superior and the subordinates. Here the superior puts aside his role as a judge, rather he openly discusses with his subordinate. They mutually reflect on the progress and further action required. Solution to problems are presented, discussed and sort. Mixed interview is combination of tell and sell and problem

solving interviews. Here the superior shares the problems and solution with the subordinates keeping their side of story in mind.


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Past Oriented

Future Oriented

Rating Scales Checklists


360◦Appraisal ForcedChoiceMethod Psychological

appraisal Critical Incident Method Behaviorally Anchored Method Field Review Method Performance Test and Observations Annual Confidential Reports 37 Assessment Centers

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Essay Method Cost Accounting Approach Comparative Evaluation Approach PAST – ORIENTED METHODS: Rating scales:

 5.1


This is the simplest and most popular technique for appraising employee performance. The typical rating-scale system consists of several numerical scales, each representing a job – related performance criteria such as dependability, initiative, output, attendance, attitude, co-operation, etc. Each scale ranges from excel linked to salary increase, whereby so many points equal a rise often to poor. The appraiser checks the appropriate performance level on each criterion, and then computes the employee’s total numerical score. The number of points scored may be linked to salary increase, whereby so many points equal a rise of percentage.

Dependability Initiative Overall output Attendance Attitude Co-operation Quality of work Total Total score

Excellent 5 -

Good 4 -

Acceptable 3 -

Fair 2 -

Poor 1 38 -

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Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job – performance criteria should be changed. This way, a large number of employees can be evaluated in a short time, and the rater does not need any training to use the scale. The disadvantages of this method are several. The rater’s biases are likely to influence evaluation and the baises are pronounced in subjective criteria such as co-operation, attitude and initiative. Moreover, numerical scoring gives an illusion of precision that is really unfounded. Instruction : For the following performances factors please indicate on the rating Scale your evaluation of the employee named below. Employee’s Name: Rater’s Name: Department : Date:



In this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns viz. a ‘Yes’ column and a ‘No’ column. All that the rater (immediate superior) should do is tick the ‘Yes’ if the answer to the statement is positive and in the column ‘No’ if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place and the actual evaluation is done by the HR department. The HR department assigns certain points to each ‘Yes’ ticked. Depending on the number of ‘Yes’ the total score is arrived at. When points are allotted to the checklist it becomes weighted checklist. The


Performance Appraisal advantages of this method are economy, ease of administration, limited training of rater, and the standardization. The disadvantages include, susceptibility to rater’s baises, use of personality criteria instead of performance criteria, misinterpretation of checklist items, and the use of improper weights by the HR department, it also does not allow the rater to give up relative ratings.

1. Is the employee really interested in the job? 2. Does he/ she possess adequate knowledge about the job? 3. Is his/her attendance satisfactory? 4. Does he/she maintain the equipment in a good condition? 5. Does he/she 6. Does he/she 7. Does he/she 8. Does he/she 5.1.3 co-operate with co-workers? observe safety precautions? complete what he/she commences? evade the responsibility?

Yes -

No -

Forced Choice Method:

In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are: 1) Learns fast………………..Works hard. 2) Work is reliable…………..Performance is a good example for. 3) Absents often……………..Others usually tardy. The rater is simply expected to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed- they may not be precisely descriptive of the ratee’s traits.


Performance Appraisal


Forced Distribution Method

One of the errors in rating is leniency-clustering a large number of employees around a high point on rating scale. The forced distribution method seeks to overcome the problem by compelling the rater to distribute the ratees on all points on the rating scale. The method operates under assumption that the employee’s performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance level conforms to a bell shaped curve. The major weakness of the forced distribution method lies in the assumption that employee performance level always conform to a normal (or some other) distribution. In organizations that have done good job of selecting and retaining only the good performers, the use of forced distribution approach would be unrealistic as well as possibly destructive to the employee morale. 5.1.5 Critical Incidents Method:

The critical incidents method of employee assessment approach focuses on certain critical behaviors of an employee that make all the difference between effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur. One of the advantages of the critical incidents method is that the evaluation is based on actual job-behavior. Giving job-related feedback to the employee is also easy. However, the following drawbacks are there:


Performance Appraisal  Negative incidents are generally more noticeable than the positive ones.  The recording of incidents is a chore to the supervisor and may be put off and easily forgotten.  5.1.6 Overly close supervision may result. Behaviorally Anchored Scale:

In this approach, broad categories of practice are identified, ideally through collaborations between supervisors and staff. Specific job behaviors are then linked to the categories. Measures of staff member behavior are rated on a scale in relation to specific behavior items, such as “understands department functions”. Job dimensions usually yield similar broad categories, such as planning, setting priorities, and responsiveness to supervision. Categories such as these may be useful in framing evaluation criteria in this approach to appraisal. Another means of approaching behavior- based appraisal is the behavioral frequency scale. Here, desired behaviors are described and the staff member is evaluated on how often those behaviors occur. 5.1.7 Field Review Method:

This is an appraisal by someone outside the assessee’s own department, usually by someone from the corporate office or the HR department. The outsider reviews employee records and holds interviews with the ratee and his/ her superior. The method is used primarily for making promotional decisions at the managerial level. Field reviews are also useful when comparable information is needed from employees in different units or locations. The disadvantages of this method are:


Performance Appraisal 1. An outsider is usually not familiar with the conditions in an employee’s work environment that may affect the employee’s ability or motivation to perform. 2. An ‘outsider’ review does not have the opportunity to observe employee behavior of performance over a period of time and in a variety of situation but only in an artificially structured interview situation which extends over a very short period of time. 5.1.8 Performance Tests and Observations:

With a limited number of jobs, employee assessment may be based upon a test of knowledge or skills. The test must be reliable and validated to be useful. Even then, performance tests are apt to measure potential more than actual performance. In order to test to be job related, observations should be made under circumstances likely to be encountered. Practically it may suffer from the costs of test development or cost of administration. 5.1.9 Essay Method:

In the essay method, the rater must describe the employee within a number of broad categories, such as: i. ii. iii. iv. v. The rater’s overall impression of the employee’s performance. The promotability of the employee. The jobs that employee is now able or qualified to perform. The strengths and weakness of the employee. The training and assistance required by the employee.

This method is useful in filing the information gaps about the employees that often occur in the better-structured checklist


Performance Appraisal method. However, the major drawback can be that many raters do not have good writing skills. They become confused about what to say, how much they should state and the depth of narration. Another problem with this method is that the ratees may be rated on the quality of the appraisal that they give. The quality standard for the appraisal may be influenced by appearance rather than content. Thus, a ‘high quality’ appraisal may provide little useful information about the performance of the ratee. 5.1.10 Cost Accounting Method: yields to his/ her organization. A relationship is

This method evaluates performance from the monetary returns the employee established between the cost included in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit. 5.1.11 Comparative Evaluation Approaches:

There are two methods that are used to compare one worker’s performance to that of his or her co-worker. Ranking Method:

In this, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The ‘how’ and ‘why’ are not questioned. No attempt is made to fractionalize what is being appraised into component elements. To avoid the biases, two or more people can do rankings and then average can be taken. Its advantages include ease of administration and explanation. Paired-Comparison Method:


Performance Appraisal Under this method, the appraiser compares each employee with every other employee, one at a time. For example, there are five employees named A,B,C,D and E. The performance of A is first compared to B and a decision is made about whose performance is better. Then A is compared with C,D,E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of a formula: N(N1)/2, where N stands for the number of employees to be compared. If there are 10 employees, the number of comparisons will be 10(101)/2=45. After the completion of the comparison, results can be tabulated and rank is created from the number of times each person is considered to be superior. 5.2 5.2.1 Future Oriented Appraisals Methods: Management By Objectives (MBO):

MBO emphasizes participation by all organization members. The following core elements in MBO:  Formation of trusting and open communication throughout the organization  Mutual problem solving and negotiations in the establishment of objectives   Creation of win-win relationships Organizational rewards and punishments based on job-related performance and achievement.   Minimal uses of political games, forces and fear. Development of a positive, proactive, and challenging organizational climate. Following are the 6 steps in the MBO process: i. ii. Formulate long range goals and strategic plans Develop overall organizational objectives 45

Performance Appraisal iii. iv. v. vi. Established derivative objectives for major operating units Set realistic and challenging objectives and standards of performance for members of the organization. Formulate action plans for achieving the stated objectives Implement the action plans and take corrective action when required to ensure the attainment of objectives. MBO evaluation report for a call center person: Objectives set Period Accomplishments 104 18 30 11 10 2 variance 104 90 100 66.66 80 50 objectives Number of calls 100 Number of new customers 20 contacted Number of deals cracked Customer complaints Number of reports in home office Number of sales courses 2 0 0 30 34 12 4


successfully completed Deals failed 5.2.2 Psychological Appraisals:

Large organizations employ full-time industrial psychologist. When psychologists are used for evaluations they assess an individual’s future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors then and a review an of other of and evaluations. the other The psychologist intellectual, future writes evaluation employee’s related and

emotional, From

motivational these

characteristics that suggest individual potential and may predict performance. evaluations, placement development decisions may be made to shape the person’s career.


Performance Appraisal


Assessment Centers:

An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, say by one to three days, by observing and evaluating their behavior across a series of selected exercises or work samples. Assesses are requested to participate in work groups (without leader), role-playing and other similar activities, which require the same attributes for successful performance, as in the actual job. After recording their observation of ratee behaviors, the raters meet to discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations. 5.2.4 360 Degree Feedback:

Where multiple raters are involved in evaluating performance, the technique is called 360 o appraisal. The 360 o technique is understood as systematic collection of performance data on an individual or group, derived from a number of stake holders- stakeholders being the immediate supervisors, team member, customers, peers, and self. In fact, anyone who has useful information on ‘how an employee does the job’ may be one of the appraisers. It enables an employee to compare his or her perceptions about self with the perceptions of others. However, receiving feedback on performance from multiple sources can be intimidating. It may also take a long time on selecting the rater, designing questionnaire, and analyzing the data.


Performance Appraisal


Performance Interview:

Performance interview is another step in the appraisal process. The raters should discuss and review the performance with the ratees, so that they will receive the feedback about where they stand in the eyes of superiors. Feedback is necessary to effect.


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Performance Appraisal

PERFORMANCE APPRAISALS PROCESS 6.1 Prepare all materials, notes agreed tasks and records of


performance, achievements, incidents, reports etc – anything pertaining to performance and achievements- obviously include the previous performance appraisal documents and current job description. A good appraisal form will provide a good natural order for proceedings, so use one. Whatever you use, ensure you have the necessary approval from your organization, and understand how it works. Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered. If the appraisal form includes a self- assessment section and/or feedback section (good ones do) ensure this is passed to the appraisee suitably in advance of the appraisal with relevant guidance for completion. A sample performance appraisal template is available, which you can use as it is or adapt to create your own form. 6.2 Inform

Inform the appraisee-ensure the appraisee is informed of a suitable time and place (change it if necessary), and clarify purpose and type of appraisal –give the appraisee the chance to assemble data and relevant performance and achievement records and materials. If the appraisal form does not imply a natural order for the discussion then provide an agenda of items to be covered.


Performance Appraisal



Ensure a suitable venue is planned and available – private and free from interruptions. 6.4 Layout

Room layout and seating are important elements to prepare also – don’t simply accept whatever layout happens to exist in a borrowed or hired room- layout has a huge influence on atmosphere and mood- irrespective of content, the atmosphere and mood must be relaxed and informal- remove barriers- don’t sit in the boss’s chair with the other person positioned humbly on the other side of the desk, you must create a relaxed situation, preferably at a meeting table or in easy chairs-sit at an angle to each other, 90 degree ideallyavoid face to face, its confrontational. 6.5 Introduction

Relax the appraisee – open with a positive statement, smile, be warm and friendly – the appraisee may well be terrified; it’s your responsibility to create a calm and non-threatening atmosphere. Set the scene-simply explain what will happen – encourage a discussion and as much input as possible from the appraisee- tell them it’s their meeting not yours. Confirm the timings, especially finishing time. If helpful and appropriate begin with some general discussion about how things have been going, but avoid getting into specifics, which are covered next (and you can say so). Ask if there are any additional points to


Performance Appraisal cover and note them down so as to include them when appropriate.


Review and measure

Review the activities, tasks, objectives and achievements one by one, keeping to distinct separate items one by one – avoid going off on tangents or vague unspecific views. If you have done your preparation correctly you will have and order to follow. If something off subject comes up then note it down and say you will return to it later (and ensure you do). Concentrate on hard facts and figures, solid evidence – avoid conjecture, anecdotal or non-specific opinions, especially about the appraisee. Being objective is one of the greatest challenges for the appraiser – as with interviewing, resist judging the appraisee in your own image, according to your own style and approach-facts and figures are acid test and provide a good neutral basis for the discussion, free of bias and personal views. For each item agree a measure of competence or achievement as relevant, and according to whatever measure or scoring system is built into the appraisal system. This might be simply a yes or no, or it might be a percentage or a mark out of ten, or an A, B, C. Reliable review and measurement requires reliable data-if you don’t have the reliable data you can’t review and you might as well rearrange the appraisal meeting. If a point of dispute arises, you must get the facts straightened out before making an important decision or judgment, and if necessary defer to a later date. 6.7 Agree an action plan

An overall plan should be agreed with the appraisee, which should take account of the job responsibilities, the appraisee’s


Performance Appraisal career aspirations, the departmental and whole organization’s priorities, and the reviewed strengths and weakness. The plan can be staged if necessary with short, medium and long-term aspects, but importantly it must be agreed and realistic. 6.8 Agree specific objectives

These are the specific actions and targets that together form the action plan. As with any delegated task or agreed objective these must adhere to the SMARTER rules-specific, measurable, agreed, realistic, time-bound, enjoyable, recorded. If not, don’t bother. The objectives can be anything that will benefit the individual, and that the person is happy to commit to. When helping people to develop, you are not restricted to job-related objectives, although typically most objectives will be. 6.9 Agree necessary support

This is the support required for the appraisee to achieve the objectives, and can include training of various sorts (external courses and seminars, internal courses coaching, mentoring , secondment, shadowing, distance-learning, reading, watching videos, attending meeting and workshops, workbooks, manuals and guides; anything relevant and helpful that will help the person develop towards the standard and agreed task. Be careful to avoid committing to training expenditure before suitable approval, permission or availability has been confirmed-if necessary discuss likely training requirements with the relevant authority before the appraisal to check. Raising false hopes is not helpful to the process. 6.10 Close positively


Performance Appraisal Thank the appraisee for their contribution to the meeting and their effort through the year, and commit to helping in any way you can.

6.11 Record main points, agreed actions and follow-up Swiftly follow-up the meeting with all necessary copies and confirmations, and ensure documents are filed and copied to relevant typically). departments, (HR, and your own line manager


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The appraisal interview should adopt the “joint approach”. The joint approach is based on the idea that confrontation about shortcomings in performance and the imposition of solutions to them are not going to get the commitment required from employees to make improvements. Managers have to see themselves not as “judge and jury” but as “enabler” in the appraisal situation. The joint approach employs a discussion technique, which is designed to avoid patronizing appraisee or confronting them about their strength and weakness. It is about developing awareness and gaining agreement to plans for development or improvement. 7.2 Opening and creating rapport:

The opening phases of an appraisal interview are very important in determining the atmosphere, which will prevail throughout the meeting. Making people comfortable is an important opening skill. This will enable them to enter into an honest and productive discussion. The comfortable and preferably familiar room layout is important. An initial reminder from the manager about the purpose of performance appraisal and the appraisal inter is important. The first stages of the appraisal interview should be thought out carefully, so


Performance Appraisal as to reduce any apprehension, suspicion or nervousness perhaps felt by both sides. A great deal of the potential for apprehension about the event can be removed during the preparatory stages. A few well-chosen words and gestures to get the meeting on its way are worth some consideration before hand. 7.3 Questioning:

Since the main objective of the appraisal interview is to get people talking and to find out their views on matters, the appraising manager needs to consider how best to construct questions and statements to keep the discussion moving and relevant. Open questions begin with what, who, why, where, how or when are useful in getting people to talk and open up. However, too much use of these will make the interviewer sound more like an interrogator. Therefore, at some stage, closed questions i.e. those question having answers as “Yes” or “No” are necessary to keep the conversation relevant. Hypothetical questions, which offer possible solutions, can be used to test the reactions of the appraisee and the validity of feedback. Rebound questions, which simply repeat the last part of the appraisee’s response, are very useful for those who are less forthcoming and are also helpful in probing more deeply when necessary. The use of silence is something, which is essential. This will help to overcome the temptation to answer their own questions that can influence appraisee’s reactions. The proportion of participation should be 30% from appraiser and 70% from appraisee. 7.4 Listening skills:

Listening to the answers carefully is equally important as asking the right questions. Maintaining eye contact, nodding, gesturing, and


Performance Appraisal keeping an open structure are all physical indicators that listening is taking place. The proof of real listening however is in the interviewer’s responses in that question should be linked to the appraisee’s answers. The best test of listening comes when the manger summarizes. If listening and understanding has taken place the summary will be an accurate one. 7.5 Keeping control: Dealing with the talkative appraisee may be interesting but inkling to go off at irrelevant tangents. To control this situation the interviewer can blatantly interrupt to get the interview back on the track or perhaps try a summary of the important points so far so that it is clear that enough has been said. Changing the pace of the interview by using more closed and specific questions for a while might be advisable in a case like this one. 7.6 Getting people to open up:

Not getting someone to open up is the less obvious form of losing interview control. To some degree the interviewee has control here for often it is he or she who has decided that they will not assist in achieving a productive outcome. Plenty of open or rebound questions may help to get the response from less talkative subject. The use of periods of silence by the appraiser is also worth a try. However, the real issue here will be why the appraisee does not want to open up. Is it mistrust of appraisal in general or of the appraiser. Is it a failure to comprehend the relevance of the exercise, or the lack of communication skills. It also can be a fear of confrontation or criticism or it is the desire not to co-operate. 7.7 Over compliance:

Some appraisees approach appraisal with an over complient attitude. They agree to everything, accept any extra objectives and take on


Performance Appraisal board any praise or criticisms that are leveled at them. It is possible that this attitude is taken by the appraisee to be the one that confirms that he or she is an exemplary employee. In such cases, the appraiser needs to investigate it and make it clear that the purpose of the appraisal meeting is to communicate honestly so that improvements can take place for the benefit of all. Feedback, both negative and positive, is required from the appraisee so that this objective can be reached and this must be emphasized. 7.8 An Disagreement, confrontation, arguing: occasional disagreement, confrontation and argument is

inevitable in the appraisal. Dealing with heated emotions and confrontation is a matter of stopping proceedings before they get out of control. There is no point in carrying on a discussion in which the parties are unlikely to reach agreement. Steering the conversation back to an even pitch and trying to salvage a positive conclusion is vital. Perhaps the matter can be discussed at another time when both the sides have had time to consider it. 7.9 Agreeing action plans:

The action, which will result from an appraisal interview, will fall broadly in 3 categories: 1. Training or remedial action in order to bring weaker areas upto standard. 2. Further training, coaching or planned experience to develop satisfactory or stronger areas and to broaden experience with advancement in mind and 3. Targets or objectives to give the appraisee some goals to work towards in the following months.


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o Appraisal is a time consuming exercise if carried out properly, but should be considered as an investment. o Manager’s ability to appraise will inevitably vary throughout the organization. This emphasizes the needs for thorough training and monitoring. o Resistance to form filing may be encountered and any “paper work” must be user friendly. o The greatest resistance is often to the use of job description. These are desirable to keep appraisal on an objective footing. Where it is deemed inappropriate to use them, the burden of maintaining objectivity is heavier.

o Often, negative attitude within the organization, run deep and are difficult to overcome. It is important that something is seen to happened as a result to appraisal, as soon as possible. o Certain problems of structure may create difficulties in carrying out appraisal :


Performance Appraisal  Teams that are geographically disparate;  Teams that are too big ;  Individual who work for more than 1 boss or who move from project to project;  Certain production jobs may be seen as too basic to warrant appraisal;  Opportunities for development and promotion are sometimes very limited. o A lack of commitment on the part of appraisers should be addressed by stressing benefits and ensuring that managers are consulted as to how their responsibilities for staff development can be carried out. Most problems in implementing performance appraisal are

surmountable, providing that they are understood and addressed appropriately.


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Performance Appraisal

SOME TYPICAL RATING ERRORS: 9.1 First impressions

Raters may identify some specific qualities or features of the appraisee and quickly form an impression about him or her. 9.2 Stereo typing

It is a standard mental picture that an individual holds about a person. It can be of that person’s sex, caste, age, physical characteristics or features. Stereo typing results in over simplified view of the individual and may blur the rater’s perception and assessment of the person’s performance on the job. 9.3 Halo effect

Basing the entire appraisal on the basis of own perceived positive quality feature or trail in the individual. Affiliation with views may result in a higher rating than it should be. 9.3 Horn effect

Basing the entire appraisal on the basis of own negative quality or feature of an individual. These results in an overall low rating than what it should be. 9.4 Central tendency


Performance Appraisal Most of the appraisal forms require the rater to justify if the assessment is outstanding or poor. Therefore, some of the raters may think of rating the most of the appraisees as “average performers” to avoid giving any justification or clarification.


Cookie cutter effect

Not focusing on individual specific performance and rating all the employees or groups of the employees the same. 9.6 Follow-up and Feedback:

 Following up action plans agreed at appraisal assists in keeping the processes a continuous one. Follow-up is important to maintain the credibility of the appraisal scheme, the management of the organization and carry out the appraisals.  The responsibility for individual follow-up rests firmly with managers, who should incorporate their efforts to maintain the momentum of appraisal into their normal priorities.  Individuals must be given recognition and feedback about their progress in carrying out the action plans.  Potential failure should be picked up and dealt with before it causes serious demotivation. the individuals who


Performance Appraisal  Senior managers should review the departments and managers. They are responsible for picking up and act on trends, and to consider the abilities of their managers as appraisers.  Feedback about the appraisal scheme also should be co-ordinated from all levels, so that it can be considered in the light of making any necessary changes to keep the scheme as effective as possible.  The test of the effectiveness should be whether or not the appraisal has met its stated objectives, if it is not so, then concerns must be competently addressed to ensure the continued validity of performance appraisal in the organization.


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In today’s era the world has become a global market with concentrated competition. Organizations have recognized that they have to focus on their core competencies with respect to the limitations that they have. They need to expertise comprehensively on the core competencies and outsource the non-core activities to other organizations that have expertise in these non-core activities by using Business Outsourcing Services. Because of the need to expertise in core competency, Business Outsourcing Services have become the most sort-after business practice in the world market. Such Business Outsourcing Services leads to the formulation of the business or strategic partnerships. Business Outsourcing Services have become indispensable for every business enterprise today. Outsourcing in broad terms is a transfer of some business functions or components of business processes to an outside contractor. To remain competitive, many companies outsource as a way to reduce costs, increase efficiency, and refocus critical resources. For example, many organizations have their own IT departments catering to their software and other IT enabled services needs; while others go for IT outsourcing. According to one estimate from IDC, 68

Performance Appraisal total global outsourcing services spending are expected to reach US $ 200 billion by 2004. Business Process Outsourcing (BPO) can be defined as the transfer of an organization’s entire non-core but critical business process/function to an external vendor who uses an IT based service delivery. This vendor usually has expert skills in concerned activities, and the activity is regulated by a legal contract. These vendors administer and manage the selected process based on defined and measurable concentrate performance on its core criteria. BPO helps an organization competencies, improve

efficiency, reduce cost and improve shareholders value. Broadly speaking, BPO can be associated to various business sectors. Basically these are divided into Manufacturing and Services, where the IT sector is just a part of the service sector. There are different facets of Business Process Outsourcing Services. These can be typecast into professional units services, with project management, outsourcing development proficient

resources, and a joint venture with an offshore trader or an owned subsidiary for offshore outsourcing services. Offshore outsourcing services have become the best and the most popular practice because of its lucrative advantages. The beneficiaries are not only the clients but the service provider’s benefit a lot as well using Business Process Outsourcing Services. The main advantages of outsourcing include:  Allows a business to focus on core activities.  Streamlines the business operations.  Gives access to professional capabilities.  Shares the risk.  Peace of mind that the process is in good hands (reliability).  No worries of continually introducing new technologies. 69

Performance Appraisal  Improves service quality.  Freeze up human resources.  Freeze up cash flow.  Increases the control of business.  Makes the business more flexible to change (i.e. demand).

While the disadvantages include:  The fear of the service provider ceasing to trade (bankruptcy, etc.).  Loss over control of the process.  Creation of potential redundancies.  Other companies might also be using the same service provider. Therefore in some cases, the best interests of the service provider may be diluted with other users.  Loss of focus of the customer and concentration on the product (the outsourced process).  The loss of talent generated internally.  Employees may react badly to outsourcing and consequently their quality of work may suffer. Despite all this, companies are still outsourcing their non-core functions, mainly to cash in on the cost saving and better quality advantages. 10.2 BPO IN INDIA


Performance Appraisal With all the news about outsourcing in India, it becomes worth mentioning, the benefits that the country has reaped due to the various functions which have been outsourced to the country. India has been one of the favored countries as far as BPO is concerned. The others include China, Canada etc. BPO in India is getting popular day by day. BPO in India has been growing 70% a year and is now worth $1.6 billion, employing 100,000 people. And as McKinsey analysts put it, BPOs in India have to grow only 27% till 2008 to deliver $17 billion in revenues and employment of a million people. Customers across verticals like Insurance, Banking, Pharmaceuticals, Telecom, Automotive and Airlines seem to be the early adopters of BPO in India. Now the latest organization joining them is IBM, which has been making headlines all over the world. Why is it that majority of the companies in the USA and UK and other countries are opting for India? The main reasons include:  Highly qualified skill pool giving superior competency. The human talent of the country is available at extremely low rates.  Robust communication infrastructure.  A large English speaking workforce.  Appropriate time-zone difference with the west.  The brand equity built by the software services sector.  Improvement in international bandwidth of India’s first private undersea cable.  Power availability which has improved mainly in the BPO centered areas like Mumbai, Bangalore, Chennai, Delhi etc.  Drop in telecom rates by a good 85% in the last 3 years, which is further going to reduce.


Performance Appraisal  Faster adoption of well- defined business processes leads to higher productivity gains without compromising on quality.  Highly qualified skill pool giving superior competency.  Business risk mitigation.  Economy of scale.  Factor cost advantage.

Of the many services that these BPOs provide, some are:  IT-services.  Software development.  Back-office operations.  Call centers; and  Other IT enabled services. 10.3 CALL CENTERS:

Call center is one of the services that a BPO can provide to its clients. A call center can be described as a functional area within an organization or an outsourced, separate facility that exists solely to answer inbound or place outbound telephone calls. Usually this refers to a sophisticated voice operations center that provides a full range of high-volume inbound or outbound call-handling services, including customer support, operator services, directory assistance, multilingual customer support, credit services, card services, inbound and outbound telemarketing, interactive voice response and web-based services.


Performance Appraisal

How do these work? The process is very simple. Organizations have to identify their non-core functions and then find a vendor who will be willing to provide these services to it, at affordable rates. Organizations looking for Call Center Outsource services can outsource their IVR and voice broadcasting projects at their affordable Call Center Outsource services. These Call Center usually provide many services to their clients. Some of these are:  Outbound Call Center Campaigns.  Inbound Call Center IVR programs.  Voice Broadcasting projects.  Campaign Development and Design.  Implementation.  Hosting.  Custom Reporting.  Text-To-Speech Conversion.  IVR Software and Database Integration.  Professional Voice Recordings.  Quality Transcription Services.  Maintenance.  Inbound and Outbound tele-sales and tele-marketing.  Customer servicing and many others. 10.4 CALL CENTERS IN INDIA:

Having a Call Center in India is the norm for several global companies today. In order to meet the growing international demand for cost-effective, customer-oriented call centers, many organizations worldwide are outsourcing these services by setting up call centers in India. The country has been the preferred location


Performance Appraisal due to the following intrinsic strengths which make it a major success as an outsource destination for call center work:  A booming IT industry, with IT strength recognized all over the world.  The largest English-speaking population after the USA.

 A vast workforce of educated, English-speaking, tech savvy personnel: A boon in a high growth industry faced with a shortage of skilled workers.

 Cost-effective







manpower typically accounts for 55%o 60% of the total cost. In India, manpower is available at a fraction of the cost overseas. However, some people get deterred by the fact that cost savings are not seen immediately. Initial investment in infrastructure and training can be expensive and make one believe that the promise of cost reduction is false. However, there will be savings and the fact that several global giants continue to set up call centers in India is proof of this.  The Government of India has recognized the potential of ITenabled services and has taken positive steps by providing numerous incentives.


Performance Appraisal  The presence of most international technology vendors and solutions has enabled creation of most advanced set-ups in this technology- intensive segment. India’s call center industry accounts for a quarter of all software and services exports from the country, according to industry association Nasscom, and Indian call centers employ 1,74,000 professionals. Daimler-Chrysler, British Telecom, Barclays bank, HSBC, Honeywell, Aventis, and several others have come to India while the old timers of GE, British Airways, Citigroup, Amex, and others have been around for a decade. The latest in this list is the IBM Corporation, which has joined the bandwagon despite the backslash for the call centers from the US Government. These services that these companies usually avail from the Indian call centers include:  The service Helpdesk services and remote troubleshooting of IT-related queries from clients in the US.  Transaction processing.  Accounting services.  Remote Network Management.  Service Bureau and Entrepreneur systems.  End-to-end processing services with linkage to the parent company. The entire processing would be carried out in the facility in India, with a cost quality and service advantage to the parent organization.  And many others. Hence, considering the growth and employment prospects that this industry provides, it becomes one of the major contributors to the 75

Performance Appraisal national growth. It has been estimated that this industry alone would provide employment to 7-10 million people by the end of 2010, which has been the major reason of selecting this industry.

In 1995, Spanco went into business through the manufacture and supply of EPABX and analogue radio products, but has since evolved into a comprehensive networking and system integration company. In doing so, Spanco today caters to the critical networking needs of Indian utilities, carriers and its prestigious Defense sector.

What is Spanco's compelling proposition for its customers? Strong management focus making this the core business unit of the company


Performance Appraisal

Turnkey expertise, resulting in the capability of the company to deliver products and services for end-to end system integration solutions.








solution provider with latest and state of art technology abreast with the industry.

Project management capability, thanks to an integrated 4P approach: people, process, platform and partnership, which mean that Spanco is capable of delivering the projects with speed and competence.

Continued presence, which highlights Spanco's strong project implementation supported by sustained post sale service. A presence among the top 10 system integrators in the country, which means Spanco, enjoys high visibility in the market place as a systems Integrator of repute.

Structured market penetration translating into a diversified and brand-enhancing customer base, which means that Spanco possesses a confidence-enhancing referral base for prospective customers .

Strong Focus on People Development, giving rise to a technically competent human resources with a high degree of commitment and motivation. VISION To attain a position of leadership in providing technically competent solutions, leading to enhanced business competence for clients, through a team of competent and motivated human resource for overall profitability and satisfied shareholders


Performance Appraisal VALUES Honesty, Integrity, Excellence, Trust

Honesty Integrity -

With their partners, customers and employees Following the highest ethical standards Following all legal compliances

Excellence - Doing each job right and continuously improving how they work Developing the right Pursuing and leveraging new technologies Trust Meeting their commitments to the customers Reliability in the performance and business practices


Performance Appraisal

Respondez is the global contact center and Business Process Outsourcing Telesystems (BPO) and brand of the A corporate group Spanco Solutions Ltd. world-class outsourcing

solutions company, they are headquartered in Mumbai, with locations across India, United States, United Kingdom and New Zealand. exchange The organization in is publicly-traded on the stock Mumbai,(BSE Symbol: Spanco)

The services offered are primarily Voice-based Inbound and Outbound services along with Non-Voice BPO and KPO services. Respondez's highly qualified and trained professionals are based in the process transition and client servicing offices in the US, UK, and New Zealand, with two offshore delivery centers located in Mumbai, India. Their ethos is to work as a Business Partner, to seed, nurture and develop a long term association rather than working purely as a service delivery vendor.  The Financial Security and stability of a profitable publiclytraded company that has shown consistent growth.  Senior personnel who have a range of experience acquired in different country settings and a deep cultural understanding.  Significant Experience and proven track record of managing customer-centric activities across verticals.  Robust Infrastructure and state-of-the-art Technology Environment Strong Process Driven Environment to ensure On-time, Accurate and Consistent Delivery.  Highest quality telecom-related processes and adherence to international standards for contact center processes.


Performance Appraisal  Customer-centric continuous improvement philosophy of Six-Sigma for effectively and efficiently meeting and exceeding customers' requirements consistently.  Recruiting, training, motivating and retaining the best talent across functional areas. Their approach is to invest in people. High Flexibility to accommodate changes and fluctuations in business requirements

Several first-time customers of Respondez are now repeat clients due to their processes that deliver quality on time and within cost. This expertise is part of Respondez's service backbone. A typical process flow after the Contractual sign-off:

Quality Assurance and Compliance for Sustained Operational Excellence The mission of the Quality Assurance (QA) team is to enhance and extend current quality practices to client process. The QA team accomplishes the highest service delivery standards by:  Effectively Maintaining the Quality Management System  Benchmarking for Continuous Improvement  Ongoing Training and Development  Quality calibration sessions are held to evaluate performance against SLA ( Service Level Accuracy)

 Regulatory Compliance is ensured as applicable


Performance Appraisal Their clients can monitor agents on a real time basis, and closely track the interaction experience being delivered to their customers. The methodologies used for monitoring are:  Call Recording  Monitoring through live barge-ins  Capture the "Voice of the Customer" People To represent team the key growth drivers in the business. Potential with its




Respondez's member





'CARE' approach:

C = Career planning A = Ample opportunities R = Rapid growth and development E = Employee centric

Respondez motivates its people via:  Outstanding work environment blending formal and informal components  Excellent growth opportunities for horizontal and vertical development  Family-feeling between members  Ongoing appraisal and attractive reward and recognition programs  Grievance cell  Job rotation and leadership development at all levels


Performance Appraisal  Valuable employee benefits Key Employee Ratios

Team leader: agent Shift-in-charge: team leader Shift-in-charge: agent Service delivery leader: agent Trainer: agent QA monitor: agent

1:12 1:5 1:60 1:120 1:60 1:20

Training Respondez's consistent quality derives from proactive training that spans knowledge, attitude and these skills:  Cultural  Conversational  Selling & Marketing  Listening  Telephone etiquette  Process training  Accent neutralization  North America and UK orientation training 82

Performance Appraisal  Product training  Objection handling  Time management


Performance Appraisal

The Company - Sparsh is the Domestic Subsidiary Intelenet Global Services (P) Ltd. Sparsh is dedicated towards adding value and substance to its client business through offering superlative and completely customized services. It provide state of the art solutions to Vertical Industries to meet their voice and BPO needs, operating 4500 seats on 24 x 7 basis, scalable upto 20,000 seats by 2009. With a dedicated and strong work force of 3500 employees, Spanco provides qualitative solutions in the areas of telecom and call center services. Motivated professionals who aim to achieve excellence through dedicated teamwork attend to every contact with zeal. They take pride in their ability to deliver efficient services at affordable price.

Sparsh is the domestic subsidiary of Intelenet Global Services (P) Ltd. The services are individually designed and customized for each client organization. With the right combination of people, processes, knowledge sharing and technology they provide cutting edge outsourcing solutions, thereby ensuring significant cost savings in the long term. The Transaction processing solution ensures that our client's manpower is free to contribute towards their core business. Sparsh has the capability to streamline and enhance mission-critical operations and has customized solutions for different industry verticals 84

Performance Appraisal With the Web enabled service, they can help to improve customer service satisfaction and increase online sales. It offer full sales and customer support utilizing online chat, email, and telephone web integration tailored to any company's needs. Sparsh can integrate your Internet communications into its 24-hour call center to provide, among other things, online customer service and ordering assistance using voice or text communications. This service is designed to give the online customers the immediate attention they want, and to reward you with increased website. The services can provide any company with a consistent means of handling the customer and prospect web requests. Whether they are visiting your site to request information for technical support, or to place an order, Sparsh can design a program that will make a visit to your website a positive experience for everyone.

Just a few of the Back Office services Sparsh provide for any company are:  Information requests  Technical support  Product orders  Refund requests  Return merchandise  On-line help desk  Web Call Back  SMS Collaboration Sparsh’s strengths:  Strategic Locations 85

Performance Appraisal  Specialization spread over a Decade  In-house Technology Support  Unmatched Quality Standards  Multi Language Support  Various ways of Communication like E-mail/ Fax/ On-line Chat help besides ‘VOICE’  A well trained and focused work force  State-of-the-art infrastructure facility on a large scale  ISO and KPMG Certified  A well balanced management team  Centralized services offering call routing  Organizational focus on thorough customer satisfaction  Extremely competitive pricing  Optimum service levels and Customized Solutions  Lowest Attrition rate  High Database security  Only Domestic Call Centre providing transport facility to Customer Service Agents

INBOUND CALL MANAGEMENT Sparsh focus on building a relationship that lasts by using a personalized approach that provides the value addition necessary to maintain and grow your client base. All incoming calls are received and addressed with an appropriate project greeting. Using the Automatic Call Distribution (ACD), the call is then transferred to the Customer Service Associate. Optimum usage of technology enables them to monitor every stage of interaction between the Customer Service.


Performance Appraisal Their CSRs' receive in-depth training in the customer’s products, services, culture and business objectives they take that knowledge and translate it into a first-class frontline customer representation. This service is enhanced by our CRM (Customer Relationship Management) application. Inbound callers typically call toll-free numbers to request product or service information; place orders for advertised products or obtain assistance with a previous order or purchase. They can provide toll-free numbers for their clients or use previously established numbers.

Sparsh provides inbound call center services for both the Business to Business and Business to Consumer markets which are provided 24 hours a day, 7 days a week, 365 days a year, completely uninterrupted. Partial list of the services offered are as follows:  Customer care  Order processing and fulfillment through satisfactory services  Pre Sales Help Line  Supporting Mail Order Business  Surveys  Technical Support


Performance Appraisal  Post Sales Service  Contests & Promotions OUTBOUND CALL MANAGEMENT Sparsh combines the capability and expertise in order to provide you with the right solution, taking into consideration the industry, proposition, timing and target market. Sparsh engages in the full process of project planning and set up, ensuring a full understanding of your requirement giving you the full benefit of their many years of experience within the call center industry. Do you need to increase your customer base? Would you like to increase your sales? Sparsh can help you achieve your goals. It provides both Businessto-Consumer lead list and Business-to-Business customer account outbound tele-services. outbound outbound These services include lead generation through customer awareness, qualification, of service management, in customer service and survey programs. Sparsh have a much focused offerings primarily specializing solutions, including:  Lead Generation / Qualification / Management / Conversion  Events & Seminar Population Management  Product / Service Promotion  Tele Research  Debt Collection  Up-Selling & Cross-Selling Campaigns  Customer Satisfaction Surveys  Customer Loyalty Programs  Database Cleaning & Validation


Performance Appraisal  Invitational, Welcome & Thank You Calling  Market Research  Internet Response Follow-up / Confirmation  SMS Confirmatory Calls  Third Party Verification  Contests & Affinity Programs

 Insurance  Banking  Telecom  Travel and Tourism  Retail  Food and Beverages  Consumer Durables  Healthcare  MEDIA/ Satellite Channel

 Spanco has 2 divisions of its company.   Domestic call center known as Spanco Sparsh and International call center known as Respondez. It mainly caters to the customer in UK and USA.


Performance Appraisal  Activity carried out is of sales, customer service, technical process, and 3 r d party collection.  The organizational structure is vertical hierarchy with informal work conditions. Project Leader Team Leader Senior Trainer Trainer Senior Service Customer Agent Customer Service Agent

 The


divisions Training

in and




attendance, and




compensation. It also has a separate HR Accounts department to look after the remuneration, compensation and tax aspects. The attendance is marked after swiping of the ID card whenever you enter and exit. If there is more than 4 absentees then there is a reduction in the incentives and salary of Rs.250.  The appraisal is held every six months.  The appraisers are the head of the HR department and the persons who are well-versed with the technicality of the job.  The main purpose of the appraisal programme is to motivate people to work and to attain better results. Also it is done to increase the work efficiency. It is also done to know whether


Performance Appraisal the candidate who is working is suitable for the work or he needs to be replaced by some one more efficient.  The pre-appraisal forms are not provided to the employees but are informed about the appraisal nearly 4 months in advance so that they can improve on the aspects in which they are lacking behind.  There are certain parameters on which the performance is measured, few are listed below: • • Attendance Service level

Key parameters tracked and benchmarked against Service Level Agreements are :( inbound)    Conversion Ratio (for Inbound Sales) Average Speed of Answer Average Handling Time (includes Talk time and Wrap-up time)  Abandon Rate

Key parameters tracked and benchmarked against Service Level Agreements are: (outbound)      Sales Per Hour Contacts Per Hour Conversions List Penetration Talk Time are separate appraisal processes for employees at

 There

different level as their work is different and requires qualified person for the appraisal process.


Performance Appraisal  The performance interviews are held in special rooms. The candidate is called on a specific day. He is informed about the evaluation that has been made. Several questions based on his performance are asked, the candidate is made to open up and give his view about the appraisal process and he is marked according to the performance during the interview. The appraisers are trained so that they would do a good job of appraising a right candidate. They are provided with the correct data with all the relevant information regarding the candidate and his work then by observing his performance record the appraisers is asked to evaluate or rate the appraisee.  The standard performance level is 85% of successful calls resolved i.e. more than 85% of the problems must be solved and the caller must be satisfied with the solution provided by the employee.  The appraisees are evaluated strictly on their performance and the quality service they provide to the customers. The main crux of call centers is to provide quality service at minimum cost and in minimum time.  Problem faced by the company during appraisal is that there is a chance of biased appraisal which is against the principles of appraisal. It might be due to personal contact of the appraisee with the appraiser, the halo effect, the horn effect; some candidate may find it difficult to open up, all these results in problems for the appraiser and the company to carry out the performance appraisal process.  By performance appraisal there is a chance of higher pay which is the biggest motivator in the call center industry. There is high possibility that the employees would be more interested and keen to perform better once they get good rating in the appraisal process and there is a hike in their remuneration.


Performance Appraisal  After the appraisal process is fully done with it becomes clear where the appraisee is lacking behind and that area is considered for his training. Similarly, each employee’s training needs are assessed and a training and development program is arranged.  The raters in Spanco limited are the project leaders and the team leaders also the employees are rated by their own colleague as they would know much in detail about the appraisee’s work.  The follow up procedure is carried out in such a way that it does not interrupt the ongoing process. The records are kept with the HR department and the concerned person keeps a track on the appraisee performance after the appraisal process and marks it down if there is any change in the working pattern.  The appraisal process in Spanco is both individual and group appraisal.  Also the appraisal process is open and is strictly based on the performance of the individual to avoid any grievance on the part of the appraisee and fellow employees.


Performance Appraisal


PROPOSED IDEAL FORM OF PERFORMANCE APPRAISAL FOR CALL CENTER Based on the interaction with industry experts and information gathered from primary sources the appraisal form has been


Performance Appraisal designed. The main criteria, on which performance would be assessed, include:  Actual sales made, in numbers. The records should be daily, weekly and monthly.  Effective time taken to service customer complaints.  Effectiveness grievances.  Leadership skills.  Team working abilities.  Cheerfulness while at work.  General behavior towards colleagues, subordinates and superiors.  Adherence to the rules and codes of the company. Based on these basic criteria, the performance appraisal form has been designed. It has been attached as annexure. and efficiency in handling customer

QUESTIONAIRE: 1. Corporate profile of the company? 2. How is the organizational structure? 3. How is the structure of personnel and HR department?


Performance Appraisal

4. How frequently do appraisals take place? 5. Are the appraiser trained for doing the appraisals? 6. What are the main purposes of these appraisals? 7. Is pre-appraisal form given to the employees? 8. On what criteria is the performance measured? 9. Are there separate appraisal processes for employees at various levels? 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. How is the performance appraisal interview held? How do the appraisers prepare for the appraisal interviews? What are the standard performance levels & key performance areas? How are the appraisees evaluated? What are the problems faced? How are the employees motivated to perform better? How is the need for training assessed? Who are the raters in case of CRE appraisals? How do you follow up? A copy of the performance appraisal form. Is it done individually or it is group appraisal? How does the performance management system work in your organization? Is it open or secret?


Performance Appraisal


Performance Appraisal








Performance Appraisal Employee Name:______________________________________________ _ Job Function:___________________________________________ Review Date: ________________________________________________ Quality of work Work is performed neatly and is accurate. Work is consistent, thorough and complete.  Outstanding.  Exceeds expectations.  Meets expectations.  Improvement needed.  Unacceptable.  Not applicable. observations

Quality of work Amount of work observations


Performance Appraisal performance on a daily

basis as necessary for the job function.  Outstanding.  Exceeds expectations.  Meets expectations.  Improvement needed.  Unacceptable.  Not applicable. Job knowledge Understands content the job where observations

requirement & has specific knowledge appropriate.  Outstanding.  Exceeds expectations.  Meets expectations.  Improvement needed.  Unacceptable.  Not applicable.

1. Performance: Exceptional= Work & attitude far exceed standards.


Performance Appraisal 2. Performance: Satisfactory= Work & attitude meet a certain set of standards. 3. Performance: Needs improvement= Work & attitude are below standards. The job duties have to be taken from the job description of the position, and then rated as per the scale given above. Space is provided for comments. 1. Job 1:_______________________________________________ 2. Job 2:________________________________________________ 3. Job 3:________________________________________________ 4. Job 4:________________________________________________ 5. Job 5:________________________________________________ 6. Job 6:________________________________________________ 7. Job 7:________________________________________________


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