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Session4.Performanceappraisal

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Title:Managementofagriculturalresearch:Atrainingmanual.Module5:Managing
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Session4.Performanceappraisal
Sessionguide:Performanceappraisal
Readingnote:Performanceappraisal
DATE
TIME
FORMAT Plenaryparticipatorylecture
TRAINER

OBJECTIVES
Attheendofthissession,participantsshouldbeabletounderstandandappreciate:
1.Theconceptofperformanceappraisal.
2.Theobjectives,usesandcharacteristicsofanappraisalsystem.
3.Importantconsiderationsindesigninganappraisalsystem.
4.Theappraisalprocess,approachesandtechniques.
5.Attributesconsideredwhenevaluatingperformance.
6.Designingappraisalformats.
7.Performanceevaluationofresearchers.
INSTRUCTIONALMATERIALS
Exhibit1 Whatshouldaperformanceappraisalsystembe?
Exhibit2 Theperformanceappraisalprocess.
Exhibit3 Standardsandindicatorsofperformanceappraisal.
Exhibit4 Howtheperformanceappraisalsystemcanhelp?
Exhibit5 Approachesinperformanceappraisal.
Exhibit6 Techniquesofperformanceappraisal.
Exhibit7 Duringperformanceappraisaldistinguishbetween...
Exhibit8 Componentsoftheappraisalformat.
Exhibit9 Attributesconsideredinevaluatingperformance.
Exhibit10 Performanceappraisalsystems.
Exhibit11 Appraisalinterview.
Exhibit12 Measuringtheperformanceofresearchers.

REQUIREDREADING
Readingnote:Performanceappraisal
BACKGROUNDREADING
None.
SPECIALEQUIPMENTANDAIDS
Overheadprojectorandchalkboard.

Sessionguide:Performanceappraisal
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Startthesessionbyaskingparticipantsfortheirunderstandingofperformanceappraisalin
theirorganizations.Isitatraditionalapproach,characterizedby
(i)mereevaluation,excludingtheplanninganddevelopmentfunction,
(ii)beinglinkedwithfinancialrewardsandsanctions,and
(iii)beingimpersonal,bureaucratic,topdown,secretiveandcentralized,which
excludesparticipationoftheemployeebeingassessed?
Iftheapproachistraditionalevaluation,thenitcanhardlybemotivatingtoanemployee.
Instead,itmustfocusmoreonfillingaformgivingquantitativeratherthanqualitative
information.Whatinfluencewouldsuchasystemhaveonanemployee'sfutureperformance?
Observethataperformanceappraisalsystemisamanagementtoolwhichcanhelpmotivate
andeffectivelyutilizehumanresources.Itincludesperformanceplanning,appraisaland
counselling.
ShowEXHIBIT1anddiscussdesirablefeaturesofaperformanceappraisalsystem.
Emphasizethelinkagebetween(i)pastperformanceandfutureplanning,and(ii)individual
andorganizationalgoals.
UsingEXHIBIT2,discusstheprocessofappraisalandthevariousstagesinvolved.Tobegin
with,realisticstandardsandmeasureshavetobeestablishedtodifferentiatebetweendifferent
levelsofperformance.Thenemployeeshavetobeinformedastowhatisexpectedofthem
andhowtheirperformancewillbemeasuredagainstthesetstandardsandtargets.Next
comesplanningforrealizationofperformanceexpectationthroughuseofresourcesand
monitoring.Monitoringistohelpremovedifficultiesratherthantointerfere.Performanceis
documentedinvariouswaysduringtheappraisalstageandthereafterfeedbackisgiven.
Emphasizethatfeedbackshouldinvolveplanningforthefutureaswell.Onthebasisof
appraisalandfeedback,evaluationdecisionshavetobemade,whichincluderewardsor
punishments.Thefinalstageisdevelopmentofperformance.
Theperformanceappraisalsystemhastobebasedonclearlyspecifiedandmeasurable
standardsandindicators.ShowEXHIBIT3anddiscussimportantstandardsandindicators.
Goalshavetobeconsistentandmutuallydecidedbytheemployeeandmanagement.If
necessary,theappraisalsystemcouldbedirectedtowardsaparticularclient.Theappraisal
systemhastobereliableandconsistent,andshouldincludebothobjectiveandsubjective
ratings.Theappraisalformatshouldbepracticalandsimple.Theprocessshouldbe
participatoryandopen.Itshouldbelinkedwithrewards.Feedbackisanimportantpartof
appraisal,andhastobetimely,impersonalandnoticeable.Observethatanappraisalsystem
canbeeffectiveonlyifitisacceptedbyemployeesandifmanagementisfullycommitted.
Performanceappraisalhasdifferentobjectivesformanagementandfortheemployees.
Employeesareinterestedinhavinganassessmentoftheirworkfromtheviewpointofpersonal
development,worksatisfactionandinvolvementintheorganization.Managementassessesthe
performanceofemployeestomaintainorganizationalcontrolanddisburserewardsand
punishmentstofurtherorganizationalgoals.Thus,aspiritofmutualityisessentialinan
effectiveperformanceappraisalsystem.ShowEXHIBIT4anddiscusshowaperformance
systemcanbeuseful.Foremployees,itcanimpartabetterunderstandingoftheirjob,skills
andlimitations,andprovidesanopportunityforselfreflection.Itcanhelpidentifydevelopment
needs.Itcanincreasemutualityandstrengthencommunicationbetweenemployeesand
management.
ShowEXHIBIT5anddiscussdifferentapproachestoperformanceappraisal.Theintuitive
approachusesperceptions.Theselfappraisalapproachreliesonselfevaluation.Thegroup
approachusesevaluationbyagroupofpersons.Thetraitapproachusestheconventional
methodofevaluationagainstcertaintraits.Lastisachievementbasedappraisal,which
comparesachievementsagainstgoalssetmutuallyduringtheplanningprocess.
Thereareseveraltechniquesforperformanceappraisal.ShowEXHIBIT6anddiscusseachof
thesetechniques.Intheessayappraisalmethod,evaluationisbasedonanessaytypereport
fromaraterwhoisfamiliarwiththeworkoftheemployeebeingappraised.Thegraphicrating
scaleuseseitherqualityofworkorpersonaltraits.Inthefieldreviewmethod,effortismadeto
synchronizedifferentratings.Theraterchoosesthebestfitandworstfitstatementsfroma
groupofstatementsintheforcechoiceratingmethod.Thecriticalincidentappraisalmethod
usescriticalincidentsinevaluatingperformance.Managementbyobjectivesinvolves
evaluationagainstmutuallyset,realisticgoals.Intheworkstandardapproach,appraisalisfor
achievementsagainsttargetsbasedonmutuallyagreedoutputstandards.
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Therankingmethodinvolvesseveraltechniques.Inthealterationrankingmethod,individuals
arerankedinadescendingorderofperformance.Pairedcomparisoninvolvescomparisonof
everyindividualinthegroupwithotherindividuals.Inthemantomanratingsystem,standards
aresetagainstactualindividualsandthenotherindividualsarematchedwiththem.The
checklistmethodinvolvesaprescaledchecklistofbehaviour.Behaviourallyanchoredrating
scalesuseasetofbehaviourialstatementsrelatingtoqualitiesimportantforperformance.The
assessmentcentreisatechniqueusedtopredictfutureperformanceoftheemployeeand
involvesperforminghigherlevelduties.
Performanceappraisalshouldhelpinclearlydistinguishingbetweenmorespecificcrucial
issuesandbroadconcernsoftenexpressedasperceptions(EXHIBIT7).
ShowEXHIBIT8anddiscussvariouscomponentsofanappraisalformat.Informparticipants
thatlaterontheywillberequiredtodesignanappraisalformat.Indesigningthisformat,one
mustseekinformationontheattributestobeconsideredinevaluatingperformance.These
mayincludepersonalqualitiesaswellasdemonstratedperformance.
ShowEXHIBIT9anddiscussvariouspersonalqualitiesanddemonstratedperformance
attributeswhichshouldbeconsideredindesigninganappraisalformat.Notethatthereare
problemsrelatingtoassessment,identificationofappraisalcriteria,andpolicyforperformance
evaluation.
ShowEXHIBIT10anddiscussvariousproblemsinaperformanceappraisalsystem.These
problemsmayrelatetomeasurement,judgement,policyororganization.
ShowEXHIBIT11anddiscusstheimportanceoftheperformanceappraisalinterview,during
whichfocusisonfutureplanningwhilegivingfeedbackonpastperformance.Aperformance
appraisalinterviewshouldbeproperlyplannedandconductedskilfully.Itshouldbeusedto
efficientlycommunicatefeedbackonperformanceduringthepreviousyear.
Concludethesessionbyaskingtheparticipantsfortheircriteriaforevaluatingscientists.Write
theirresponsesonthechalkboardandcomparethemwithEXHIBIT12.
EXHIBIT1
WHATSHOULDAPERFORMANCESYSTEMBE?
Correlatedwiththeorganization'sphilosophiesandmission
Coverassessmentofperformanceaswellaspotentialfordevelopment
Lookaftertheneedsofboththeindividualandtheorganization
Helpcreateacleanenvironment
Rewardslinkedtoachievements
Generateinformationforpersonneldevelopmentandcareerplanning
Suggestingappropriatepersontaskmatching
Performanceappraisalshouldevaluate,audit,motivate,identifytrainingneeds,developtheindividual
andplanforfutureperformance

EXHIBIT2
THEPERFORMANCEAPPRAISALPROCESS

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Source:Craig,E.,Schneiier,R.,Beatty,W.,andBaird,L.S.1986.Trainingand
DevelopmentJournal.May
EXHIBIT3
STANDARDSANDINDICATORSOFPERFORMANCEAPPRAISAL
Mutualgoal
Reliableandconsistent
Accurateandequitable
Practicalandsimpleformat
Regularandroutine
Participatoryandopen
Rewards
Timelyfeedback
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Impersonalfeedback
Noticeablefeedback
Relevanceandresponsiveness
Commitment

EXHIBIT4
HOWCANTHEPERFORMANCEAPPRAISALSYSTEMHELP?
Promotebetterunderstandingofanemployee'sroleandclarityabouthisorherfunctions
giveabetterunderstandingofpersonalstrengthsandweaknessesinrelationtoexpected
rolesandfunctions
Identifydevelopmentneedsofanemployee
Establishcommongroundbetweentheemployeeandthesupervisor
Increasecommunication
Provideanemployeewiththeopportunityforselfreflectionandindividualgoalsetting
Helpanemployeeinternalizetheculture,normsandvaluesoftheorganization.Thishelps
developanidentitywithandcommitmenttotheorganizationandpreparesanemployeefor
higherlevelpositionsinthehierarchy
Assistinavarietyofpersonneldecisions
EXHIBIT5
APPROACHESINPERFORMANCEAPPRAISAL
Intuitive
Selfappraisal
Group
Trait
Achievementofresults
EXHIBIT6
TECHNIQUESOFPERFORMANCEAPPRAISAL
Easyappraisalmethod
Graphicratingscales
Fieldreviewmethod
Forcedchoiceratingmethod
Criticalincidentappraisalmethod
Managementbyobjectives
Workstandardapproach
Rankingmethods
Alterationmethods
Alterationranking
Pairedcomparison
Persontopersonrating
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Checklist
Behaviourallyanchoredratingscales
Assessmentcentres
EXHIBIT7
DURINGPERFORMANCEAPPRAISAL,DISTINGUISHBETWEEN...
AccomplishmentsandActivity
WorkingefficientlyandWorkingeffectively
WorkandImportantwork
WorkinghardandWorkingsmart

Source:Nickel,L.J.1989.ResearchManagementforDevelopment:AnOpen
LettertoaNewAgriculturalResearchDirector.SanJose,CostaRica:ICCA.
EXHIBIT8
COMPONENTSOFTHEAPPRAISALFORMAT
Identificationofkeyperformanceareas
Identificationofqualitiesforjobperformance
Selfappraisal
Analysis
Discussion
Identificationoftrainingneeds
Actionplanandgoalsettingsforthefuture
Finalassessment
EXHIBIT9
ATTRIBUTESCONSIDEREDINEVALUATINGPERFORMANCE
Personalqualities

Demonstratedperformance

Adaptability
Appearanceandbearing
Decisiveness
Dependability
Driveanddetermination
Ingenuity
Initiative
Integrity
Loyalty
Maturity
Stamina
Tenacity
Verbalexpression
Writtenexpression

Professionalknowledge
Administrativeability
Responsibilityforstaffdevelopment
Foresight
Delegation
Motivation
Morale
Control

EXHIBIT10
PERFORMANCEAPPRAISALSYSTEMS
PROBLEMS
Measurement

Judgement

Policy

Organization

Decidingwhatto
evaluate

Appraising
performance

Usingtheresultsofthe
appraisal

Recognizinghow
managersworkandthe
organizationculture

SYMPTOMS
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Ambiguityinroles
Disagreement
andresponsibilitiesof onratings
eachjob
Officialreview
Jobperformanceis changesratings
difficulttoquantify
Appeals,
Noclearstatement grievances,
ofoverallobjectives accusationsof
ofunitsorthe
bias,
organization
discrimination

Topmanagementfailsto
rewardmanagerswhoare
excellentinstaffassessment
anddevelopment
Marginalperformersreceive
promotionsorsalaryincreases

Appraisalformsnot
completed
Managerscomplain
abouttimeneeded
Systemseenas
belongingtothedesigners,
nottheusers
Personnel/HRspecialists
takeenforcernotadviser
role

Appraisalcontains
onlynumerical
indices

systemrevised
frequently
POTENTIALCURES

Jobanalysisand
crediblejob
description

Observable,
behaviourally
basedcriteria

Topmanagementactually
usesperformanceappraisal
itself

Outcomesofeach
jobidentified

Performance
Policesforperformance
documentedover appraisalconsistentlyapplied
time
Overallgoalssetfor
performancecontingentreward
ratertrainingand systemoperates
unitsandthe
organization
practice
Trainmanagersto
makedocumented
judgements

Implementperformance
appraisalusingthe
PerformanceManagement
(PM)model

Effective
communicationof
performance
expectations

Source:Craig,E.S.,Beatty,R.E.,andBaird,L.S.1986.Howtocontracta
successfulperformanceappraisalsystem.TrainingandDevelopmentJournal,
April:3842
EXHIBIT11
APPRAISALINTERVIEW
Planninganinterview
tellandsell
tellandlisten
problemsolving
Conductinganinterviewasplanned
Applyinggoodquestioningtechniques
Listenintelligentlyandwithoutprejudicewhilesomeonelessseniordoesmostofthetalking
Communicatingeffectivelyverballyandnonverbally
Source:J.Davies,AFP,FAO,Rome.
EXHIBIT12
MEASURINGTHEPERFORMANCEOFRESEARCHERS
Overallperformance
Qualityofoutput
Productivity
Quantityofwrittenwork
Originalityofwrittenwork
Recentreports
Membershipinprofessionalsocieties
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Recognitionfororganizationalcontribution
Statusseekingtendencies
Currentorganizationalstatus
Creativityratingfromhighlevelsupervisors
Overallqualityratingbyimmediatesupervisors

Readingnote:Performanceappraisal
Performanceappraisalsystem:Theconcept
Objectivesofperformanceappraisal
Usesofanappraisalsystem
Characteristicsofanappraisalsystem
Performanceappraisalsystem:Theprocess
Communication
Approachesandtechniquesinperformanceappraisal
Appraisaltechniques
Componentsoftheappraisalformat
Attributesconsideredinevaluatingperformance
Managementproblemsinevaluatingperformance
References
Effectivehumanresourcesmanagement(HRM)isessentialforoptimallyutilizingcreativityand
attainingindividualaswellasorganizationalgoals.Leadershiphastoensureproperintegration
ofvariousactivitiesandharmoniousfunctioningdirectedtowardsorganizationalgoals.High
motivationisessentialforensuringcommitmentofhumanresourcestothegivenobjectives.
Thekeytomotivationliesinintegratingorganizationalandindividualgoals.Therefore,a
managerhastoconcentrateonbasicHRMtaskssuchasplanning,development,
compensationandevaluation.Evaluationincludesperformanceplanning,appraisaland
counselling.ThesearecriticalineffectiveHRM.

Performanceappraisalsystem:Theconcept
Performanceappraisalisamanagementtoolwhichishelpfulinmotivatingandeffectively
utilizinghumanresources.Assessmentofhumanpotentialisdifficult,nomatterhowwell
designedandappropriatetheperformanceplanningandappraisalsystemis.
Theperformanceappraisalsystemshould:
becorrelatedwiththeorganizationalmission,philosophiesandvaluesystem
coverassessmentofperformanceaswellaspotentialfordevelopment
takecareoforganizationalaswellasindividualneedsand
helpincreatingacleanenvironmentby
linkingrewardswithachievements,
generatinginformationforthegrowthoftheemployeeaswellasof
theorganization,and
suggestingappropriatepersontaskmatchingandcareerplans.
Feedbackisanimportantcomponentofperformanceappraisal.Whilepositivefeedbackis
easilyaccepted,negativefeedbackoftenmeetswithresistanceunlessitisobjective,basedon
acrediblesourceandgiveninaskilfulmanner.

Objectivesofperformanceappraisal
Employeeswouldliketoknowfromaperformanceappraisalsystem:
concreteandtangibleparticularsabouttheirworkand
assessmentoftheirperformance.
Thiswouldincludehowthey:
did
coulddobetterinfuture
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couldobtainalargershareofrewardsand
couldachievetheirlifegoalsthroughtheirposition.
Thereforeanemployeewoulddesirethattheappraisalsystemshouldaimat:
theirpersonaldevelopment
theirworksatisfactionand
theirinvolvementintheorganization.
Fromthepointofviewoftheorganization,performanceappraisalservesthepurposeof:
providinginformationabouthumanresourcesandtheirdevelopment
measuringtheefficiencywithwhichhumanresourcesarebeingusedand
improved
providingcompensationpackagestoemployeesand
maintainingorganizationalcontrol.
Performanceappraisalshouldalsoaimatthemutualgoalsoftheemployeesandthe
organization.Thisisessentialbecauseemployeescandeveloponlywhentheorganization's
interestsarefulfilled.Theorganization'smainresourcesareitsemployees,andtheirinterest
cannotbeneglected.Mutualgoalssimultaneouslyprovideforgrowthanddevelopmentofthe
organizationaswellasofthehumanresources.Theyincreaseharmonyandenhance
effectivenessofhumanresourcesintheorganization.

Usesofanappraisalsystem
Aproperlydesignedperformanceappraisalsystemcan(Rao,1985):
helpeachemployeeunderstandmoreabouttheirroleandbecomeclearabout
theirfunctions
beinstrumentalinhelpingemployeestobetterunderstandtheirstrengthsand
weaknesseswithrespecttotheirroleandfunctionsintheorganization
helpinidentifyingthedevelopmentalneedsofemployees,giventheirroleand
function
increasemutualitybetweenemployeesandtheirsupervisorssothatevery
employeefeelshappytoworkwiththeirsupervisorandtherebycontributestheir
maximumtotheorganization
actasamechanismforincreasingcommunicationbetweenemployeesandtheir
supervisors.Inthisway,eachemployeegetstoknowtheexpectationsoftheir
superior,andeachsuperioralsogetstoknowthedifficultiesoftheirsubordinates
andcantrytosolvethem.Together,theycanthusbetteraccomplishtheirtasks
provideanopportunitytoeachemployeeforselfreflectionandindividualgoal
setting,sothatindividuallyplannedandmonitoreddevelopmenttakesplace
helpemployeesinternalizetheculture,normsandvaluesoftheorganization,
thusdevelopinganidentityandcommitmentthroughouttheorganization
helpprepareemployeesforhigherresponsibilitiesinthefuturebycontinuously
reinforcingthedevelopmentofthebehaviourandqualitiesrequiredforhigherlevel
positionsintheorganization
beinstrumentalincreatingapositiveandhealthyclimateintheorganizationthat
drivesemployeestogivetheirbestwhileenjoyingdoingsoand
assistinavarietyofpersonneldecisionsbyperiodicallygeneratingdata
regardingeachemployee.

Characteristicsofanappraisalsystem

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Performanceappraisalcannotbeimplementedsuccessfullyunlessitisacceptedbyall
concerned.Thereshouldbeacommonandclearunderstandingofthedistinctionbetween
evaluationandappraisal.AsPatten(1982)argues,evaluationaimsat'objective'
measurement,whileappraisalincludesbothobjectiveandsubjectiveassessmentofhowwell
anemployeehasperformedduringtheperiodunderreview.Thusperformanceappraisalaims
at'feedback,developmentandassessment.'Theprocessofperformanceappraisalshould
concentrateonthejobofanemployee,theenvironmentoftheorganization,andtheemployee
himorherself.Thesethreefactorsareinterrelatedandinterdependent.Therefore,inorder
tobeeffective,theappraisalsystemshouldbeindividualized,subjective,qualitativeand
orientedtowardsproblemsolving.Itshouldbebasedonclearlyspecifiedandmeasurable
standardsandindicatorsofperformance.Sincewhatisbeingappraisedisperformanceand
notpersonality,personalitytraitswhicharenotrelevanttojobperformanceshouldbeexcluded
fromtheappraisalframework.
Someoftheimportantconsiderationsindesigningaperformanceappraisalsystemare:
GoalThejobdescriptionandtheperformancegoalsshouldbestructured,
mutuallydecidedandacceptedbybothmanagementandemployees.
ReliableandconsistentAppraisalshouldincludebothobjectiveandsubjective
ratingstoproducereliableandconsistentmeasurementofperformance.
PracticalandsimpleformatTheappraisalformatshouldbepractical,simpleand
aimatfulfillingitsbasicfunctions.Longandcomplicatedformatsaretime
consuming,difficulttounderstand,anddonotelicitmuchusefulinformation.
RegularandroutineWhileanappraisalsystemisexpectedtobeformalina
structuredmanner,informalcontactsandinteractionscanalsobeusedfor
providingfeedbacktoemployees.
ParticipatoryandopenAneffectiveappraisalsystemshouldnecessarilyinvolve
theemployee'sparticipation,usuallythroughanappraisalinterviewwiththe
supervisor,forfeedbackandfutureplanning.Duringthisinterview,past
performanceshouldbediscussedfranklyandfuturegoalsestablished.Astrategy
foraccomplishingthesegoalsaswellasforimprovingfutureperformanceshould
beevolvedjointlybythesupervisorandtheemployeebeingappraised.Such
participationimpartsafeelingofinvolvementandcreatesasenseofbelonging.
RewardsRewardsbothpositiveandnegativeshouldbepartofthe
performanceappraisalsystem.Otherwise,theprocesslacksimpact.
FeedbackshouldbetimelyUnlessfeedbackistimely,itlosesitsutilityandmay
haveonlylimitedinfluenceonperformance.
ImpersonalfeedbackFeedbackmustbeimpersonalifitistohavethedesired
effect.Personalfeedbackisusuallyrejectedwithcontempt,andeventuallyde
motivatestheemployee.
FeedbackmustbenoticeableThestaffmemberbeingappraisedmustbemade
awareoftheinformationusedintheappraisalprocess.Anopenappraisalprocess
createscredibility.
RelevanceandresponsivenessPlanningandappraisalofperformanceand
consequentrewardsorpunishmentsshouldbeorientedtowardstheobjectivesof
theprogrammeinwhichtheemployeehasbeenassignedarole.Forexample,if
theobjectivesofaprogrammearedirectedtowardsaparticularclientgroup,then
theappraisalsystemhastobedesignedwiththatorientation.
CommitmentResponsibilityfortheappraisalsystemshouldbelocatedata
seniorlevelintheorganizationsoastoensurecommitmentandinvolvement
throughoutthemanagementhierarchy.

Performanceappraisalsystem:Theprocess
Performanceappraisalinvolvesanevaluationofactualagainstdesiredperformance.Italso
helpsinreviewingvariousfactorswhichinfluenceperformance.Managersshouldplan
performancedevelopmentstrategiesinastructuredmannerforeachemployee.Indoingso,
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theyshouldkeepthegoalsoftheorganizationinmindandaimatoptimalutilizationofall
availableresources,includingfinancial.Performanceappraisalisamultistageprocessinwhich
communicationplaysanimportantrole.
Craig,BeattyandBaird(1986)suggestedaneightstageperformanceappraisalprocess:
(i)Establishingstandardsandmeasures
Thefirststepistoidentifyandestablishmeasureswhichwould
differentiatebetweensuccessfulandunsuccessfulperformances.
Thesemeasuresshouldbeunderthecontroloftheemployeesbeing
appraised.Themethodsforassessingperformanceshouldbe
decidednext.Basically,managementwantsto:
knowthebehaviourandpersonalcharacteristicsof
eachemployeeand
assesstheirperformanceandachievementinthejob.
Therearevariousmethodsavailableforassessingresults,behaviour
andpersonalcharacteristicsofanemployee.Thesemethodscanbe
usedaccordingtotheparticularcircumstancesandrequirements.
(ii)Communicatingjobexpectations
Thesecondstepintheappraisalprocessiscommunicatingto
employeesthemeasuresandstandardswhichwillbeusedinthe
appraisalprocess.Suchcommunicationshouldclarifyexpectations
andcreateafeelingofinvolvement.
(iii)Planning
Inthisstage,themanagerplansfortherealizationofperformance
expectations,arrangingfortheresourcestobeavailablewhichare
requiredforattainingthegoalsset.Thisisanenablingrole.
(iv)Monitoringperformance
Performanceappraisalisacontinuousprocess,involvingongoing
feedback.Eventhoughperformanceisappraisedannually,ithasto
bemanaged'eachday,allyearlong.'Monitoringisakeypartofthe
performanceappraisalprocess.Itshouldinvolveprovidingassistance
asnecessaryandremovingobstaclesratherthaninterfering.The
bestwaytoeffectivelymonitoristowalkaround,thuscreating
continuouscontacts,providingfirsthandinformation,andidentifying
problems,whichcanthenbesolvedpromptly.
(v)Appraising
Thisstageinvolvesdocumentingperformancethroughobserving,
recalling,evaluating,writtencommunication,judgmentandanalysisof
data.Thisislikeputtingtogetheranappraisalrecord.
(vi)Feedback
Aftertheformalappraisalstage,afeedbacksessionisdesirable.This
sessionshouldinvolveverbalcommunication,listening,problem
solving,negotiating,compromising,conflictresolutionandreaching
consensus.
(vii)Decisionmaking
Onthebasisofappraisalandfeedbackresults,variousdecisionscan
bemadeaboutgivingrewards(e.g.,promotion,incentives,etc.)and
punishments(e.g.,demotion).Theoutcomeofanappraisalsystem
shouldalsobeusedforcareerdevelopment.
(viii)Developmentofperformance
Thelaststageofperformanceappraisalis'developmentof
performance,'orprofessionaldevelopment,byprovidingopportunities
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forupgradingskillsandprofessionalinteractions.Thiscanbedoneby
supportingparticipationinprofessionalconferencesorbyproviding
opportunitiesforfurtherstudy.Suchopportunitiescanalsoactas
incentivesorrewardstoemployees.

Communication
Itisobviousthatcommunicationisatthecoreofanappraisalsystem.Communicationcanbe
eitherupwardordownward.Downwardcommunicationisfromuppermanagementlevelsto
lowerlevels,andpassesonajudgementofhowtheemployeesaredoingandhowtheymight
doevenbetter.Astheinformationflowsdownward,itbecomesmoreindividualizedand
detailed.Upwardcommunicationisfromlowertohigherlevels.Throughthisprocess,
employeescommunicatetheirneeds,aspirationsandgoals.Asinformationflowsupward,it
hastobecomebriefandprecisebecauseofthechannelsthroughwhichithastopass.

Approachesandtechniquesinperformanceappraisal
Performanceappraisalisamultistageprocessinvolvingseveralactivities,whichcanbe
administeredusingavarietyofapproaches.Someoftheseapproachesareconsideredbelow,
basedonEinsteinandLeMereLabonte,1989andMonga,1983:
IntuitiveapproachInthisapproach,asupervisorormanagerjudgesthe
employeebasedontheirperceptionoftheemployee'sbehaviour.
SelfappraisalapproachEmployeesevaluatetheirownperformanceusinga
commonformat.
GroupapproachTheemployeeisevaluatedbyagroupofpersons.
TraitapproachThisistheconventionalapproach.Themanagerorsupervisor
evaluatestheemployeeonthebasisofobservabledimensionsofpersonality,such
asintegrity,honesty,dependability,punctuality,etc.
AppraisalbasedonachievedresultsInthistypeofapproach,appraisalisbased
onconcrete,measurable,workachievementsjudgedagainstfixedtargetsorgoals
setmutuallybythesubjectandtheassessor.
BehaviourialmethodThismethodfocusesonobservedbehaviourand
observablecriticalincidents.

Appraisaltechniques
Thereareseveraltechniquesofperformanceappraisal,eachwithsomestrongpointsaswell
aslimitations.Oberg(1972)hassummarizedsomeofthecommonlyusedperformance
appraisaltechniques.
(i)Essayappraisalmethod
Theassessorwritesabriefessayprovidinganassessmentofthestrengths,
weaknessesandpotentialofthesubject.Inordertodosoobjectively,itis
necessarythattheassessorknowsthesubjectwellandshouldhaveinteracted
withthem.Sincethelengthandcontentsoftheessayvarybetweenassessors,
essayratingsaredifficulttocompare.
(ii)Graphicratingscale
Agraphicscale'assessesapersononthequalityofhisorherwork(average
aboveaverageoutstandingorunsatisfactory).'Assessmentcouldalsobetrait
centredandcoverobservabletraits,suchasreliability,adaptability,communication
skills,etc.Althoughgraphicscalesseemsimplisticinconstruction,theyhave
applicationinawidevarietyofjobresponsibilitiesandaremoreconsistentand
reliableincomparisonwithessayappraisal.Theutilityofthistechniquecanbe
enhancedbyusingitinconjunctionwiththeessayappraisaltechnique.
(iii)Fieldreviewmethod

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Sinceindividualassessorsdifferintheirstandards,theyinadvertentlyintroduce
biasintheirratings.Toovercomethisassessorrelatedbias,essayandgraphic
ratingtechniquescanbecombinedinasystematicreviewprocess.Inthefield
reviewmethod,'amemberoftheHRMstaffmeetsasmallgroupofassessors
fromthesupervisoryunitstodiscusseachrating,systematicallyidentifyingareas
ofinterassessordisagreement.'Itcanthenbeamechanismtohelpeach
assessortoperceivethestandardsuniformlyandthusmatchtheotherassessors.
Althoughfieldreviewassessmentisconsideredvalidandreliable,itisverytime
consuming.
(iv)Forcedchoiceratingmethod
Unlikethefieldreviewmethod,theforcedchoiceratingmethoddoesnotinvolve
discussionwithsupervisors.Althoughthistechniquehasseveralvariations,the
mostcommonmethodistoforcetheassessortochoosethebestandworstfit
statementsfromagroupofstatements.Thesestatementsareweightedorscored
inadvancetoassesstheemployee.Thescoresorweightsassignedtothe
individualstatementsarenotrevealedtotheassessorsothatsheorhecannot
favouranyindividual.Inthisway,theassessorbiasislargelyeliminatedand
comparablestandardsofperformanceevolvedforanobjective.However,this
techniqueisoflittlevaluewhereverperformanceappraisalinterviewsare
conducted.
(v)Criticalincidentappraisalmethod
Inthismethod,asupervisordescribescriticalincidents,givingdetailsofboth
positiveandnegativebehaviouroftheemployee.Thesearethendiscussedwith
theemployee.Thediscussionfocusesonactualbehaviourratherthanontraits.
Whilethistechniqueiswellsuitedforperformancereviewinterviews,ithasthe
drawbackthatthesupervisorhastonotedownthecriticalincidentsasandwhen
theyoccur.Thatmaybeimpractical,andmaydelayfeedbacktoemployees.It
makeslittlesensetowaitsixmonthsorayeartodiscussamisdeed,amistakeor
gooddisplayofinitiative.
(vi)Managementbyobjectives
Theemployeesareaskedtosetorhelpsettheirownperformancegoals.This
avoidsthefeelingamongemployeesthattheyarebeingjudgedbyunfairlyhigh
standards.Thismethodiscurrentlywidelyused,butnotalwaysinitstruespirit.
Eventhoughtheemployeesareconsulted,inmanycasesmanagementendsup
byimposingitsstandardsandobjectives.Insomecasesemployeesmaynotlike
'selfdirectionorauthority.'Toavoidsuchproblems,theworkstandardapproachis
used.
(vii)Workstandardapproach
Inthistechnique,managementestablishesthegoalsopenlyandsetstargets
againstrealisticoutputstandards.Thesestandardsareincorporatedintothe
organizationalperformanceappraisalsystem.Thuseachemployeehasaclear
understandingoftheirdutiesandknowswellwhatisexpectedofthem.
Performanceappraisalandinterviewcommentsarerelatedtotheseduties.This
makestheappraisalprocessobjectiveandmoreaccurate.However,itisdifficultto
compareindividualratingsbecausestandardsforworkmaydifferfromjobtojob
andfromemployeetoemployee.Thislimitationcanbeovercomebysomeformof
rankingusingpooledjudgment.
(viii)Rankingmethods
Someoftheimportantformsofrankingforperformanceappraisalaregiven
below,basedonOberg,1972andMonga,1983:
(a)AlterationrankingmethodTheindividualwiththebest
performanceischosenastheidealemployee.Otheremployeesare
thenrankedagainstthisemployeeindescendingorderof
comparativeperformanceonascaleofbesttoworstperformance.
Thealterationrankingmethodusuallyinvolvesratingbymorethan
oneassessor.Theranksassignedbyeachassessorarethen
averagedandarelativerankingofeachmemberinthegroupis
determined.Whilethisisasimplemethod,itisimpracticalforlarge
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groups.Inaddition,theremaybewidevariationsinabilitybetween
ranksfordifferentpositions.
(b)PairedcomparisonThepairedcomparisonmethodsystematizes
rankingandenablesbettercomparisonamongindividualstoberated.
Everyindividualinthegroupiscomparedwithallothersinthegroup.
Theevaluationsreceivedbyeachpersoninthegrouparecounted
andturnedintopercentagescores.Thescoresprovideafairideaas
tohoweachindividualinthegroupisjudgedbytheassessor.
(c)PersontopersonratingInthepersontopersonratingscales,the
namesoftheactualindividualsknowntoalltheassessorsareused
asaseriesofstandards.Thesestandardsmaybedefinedaslowest,
low,middle,highandhighestperformers.Individualemployeesinthe
grouparethencomparedwiththeindividualsusedasthestandards,
andratedforastandardwheretheymatchthebest.Theadvantage
ofthisratingscaleisthatthestandardsareconcreteandareinterms
ofrealindividuals.Thedisadvantageisthatthestandardssetby
differentassessorsmaynotbeconsistent.Eachassessorconstructs
theirownpersontopersonscalewhichmakescomparisonof
differentratingsdifficult.
(d)ChecklistmethodTheassessorisfurnishedwithachecklistof
prescaleddescriptionsofbehaviour,whicharethenusedtoevaluate
thepersonnelbeingrated(Monga,1983).Thescalevaluesofthe
behaviouritemsareunknowntotheassessor,whohastocheckas
manyitemsassheorhebelievesdescribetheworkerbeing
assessed.Afinalratingisobtainedbyaveragingthescalevaluesof
theitemsthathavebeenmarked.
(e)Behaviourallyanchoredratingscales(BARS)Thisisarelatively
newtechnique.Itconsistsofsetsofbehaviourialstatements
describinggoodorbadperformancewithrespecttoimportant
qualities.Thesequalitiesmayrefertointerpersonalrelationships,
planningandorganizingabilities,adaptabilityandreliability.These
statementsaredevelopedfromcriticalincidentscollectedbothfrom
theassessorandthesubject.
(f)AssessmentcentresThistechniqueisusedtopredictfuture
performanceofemployeesweretheytobepromoted.Theindividual
whosepotentialistobeassessedhastoworkonindividualaswellas
groupassignmentssimilartothosetheywouldberequiredtohandle
weretheypromoted.Thejudgmentofobserversispooled,andpaired
comparisonoralterationrankingissometimesusedtoarriveatafinal
assessment.Thefinalassessmenthelpsinmakinganorderofmerit
rankingforeachemployee.Italsoinvolvessubjectivejudgmentby
observers.
Aperformanceappraisalsystemcouldbedesignedbasedonintuition,selfanalysis,
personalitytraits,behaviourialmethodsandresultbasedtechniques.Differentapproachesand
techniquescouldbeblended,dependingonthegoalsofperformanceappraisalinthe
organizationandthetypeofreview.Forexample,managementbyobjectives,goalsettingand
workstandardmethodsareeffectiveforobjectivecoaching,counsellingandmotivational
purposes.Criticalincidentappraisalisbestsuitedwhensupervisor'spersonalassessmentand
criticismareessential.Acarefullydevelopedandvalidatedforcedchoiceratingcanprovide
valuableanalysisoftheindividualwhenconsideringpossiblepromotiontosupervisory
positions.Combinedgraphicandessayformissimple,effectiveinidentifyingtrainingand
developmentneeds,andfacilitatesothermanagementdecisions.

Componentsoftheappraisalformat
Keyperformanceareas,selfappraisal,performanceanalysis,performanceratingsand
counsellingaretheimportantcomponentsofaperformanceappraisalsystemorientedto
developmentofhumanresourcesinanorganization.Theappraisalformatshouldbedesigned
inconsonancewiththeobjectivesoftheperformanceappraisalsystem,andgenerate
informationonanumberofimportantaspects,including(Rao,1985):

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IdentificationofkeyperformanceareasThefirststepinanappraisalprocessis
identifyingkeyperformanceareasandsettingtargetsforthenextappraisalperiod.
Thismaybedoneeitherthroughperiodicdiscussionsoratthebeginningofthe
year,asinresearchinstitutions.
SelfappraisalbythesubjectAttheendoftheappraisalperiod,employees
appraisetheirownperformanceagainstthekeyperformanceareas,targetsand
preidentifiedbehaviour.Informationontheseissuesisprovidedinanappraisal
format.Theemployeesalsowritetheirselfevaluationreportsandhandthemto
theirsupervisors.
AnalysisThesupervisorreflectsontheperformanceoftheemployee,and
identifiesthefactorswhichfacilitatedorhinderedtheemployee'sperformance.
Themanagerthencallstheemployeeforadiscussiontobetterunderstandhisor
herperformanceandprovidecounsellingonfurtherimprovements.Duringthis
discussion,appraisalrecords(suchasnotes,observations,comments,etc.)are
exchanged.Themanagerthengivesafinalratingandrecommendations
regardingthedevelopmentalneedsoftheindividual.Theseareshowntothe
subjectandhisorhercommentsarerecordedontheappraisalform.The
appraisalformisthentransmittedtothepersonneldepartmentforthenecessary
administrativeaction.Thepersonnelorhumanresourcedevelopmentdepartment
usestheseformsforidentifyingandallocatingtraining,rewardsandother
activities.
IdentificationoftrainingneedsTheuseofadevelopmentorientedperformance
appraisalsystemisbasedonagoodunderstandingoftheconceptofhuman
resourcesdevelopment.Theneedfordevelopingemployeecapabilities,the
natureofcapabilitiestobedeveloped,andtheconditionsunderwhichthese
capabilitiescanbedevelopedhavetobeappreciated.Duringthediscussion
betweenthesupervisorandtheemployee,thedevelopmentneedsofthesubject
areidentifiedandgoalssetforthenextperiod.
IdentificationofqualitiesThesupervisormayalsoidentifythequalitiesrequired
forcurrentaswellasfuturetasks,andassesstheemployee'spotentialand
capabilitiestoperformjobsathigherresponsibilitylevelsintheorganization.

Attributesconsideredinevaluatingperformance
Therearemanypersonalitytraitswhichcouldbeconsideredwhenevaluatingperformance,
andmethodstofacilitatesuchconsiderationincludescalingmethodsthatdifferentiate
employeesonaseriesofgiventraits.Theimportantpersonalitytraitsfallintotwocategories:
personalqualitiesanddemonstratedqualities(Table1).
Table1Personalanddemonstratedpersonalitytraits
PersonalQualities
Adaptability:Adjustmentwithnewor
changingsituationsorpeople.
Appearanceandbearing:Havinggood
bearingandappearance.
Decisiveness:Abilitytoarriveat
conclusionspromptlyandtodecideona
definitecourseofaction.
Dependability:Abilitytoconsistently
accomplishallocatedjobswithout
supervision.

DemonstratedPerformanceQualities
Professionalknowledge:Abilitytoapplyprofessional
knowledgetoassigneddutiessoastoachieveahigh
standardofperformance.
Administrativeability:Havingadministrativeabilitytouse
resourceseconomicallyandjudiciously.
Responsibilityforstaffdevelopment:Abilitytofulfil
responsibilitiesinthedevelopmentandtrainingofstaff.
Foresight:Abilitytodisplayforesightandplanbeyond
immediateneeds.

Delegation:Abilitytodelegateresponsibilitiesand
Driveanddetermination:Abilitytoexecute exerciserequireddegreeofguidanceandsupervision.
jobvigorouslyandresolutely,andinduce
Motivation:Abilitytomotivatesubordinateseffectivelyto
otherstodoso.
producedesiredresults.
Ingenuity:Resourcefulnessandabilityto
Morale:Abilitytomaintainmoraleandlookafterthe
creativelydevisemeanstosolve
managementofstaff.
unforeseenproblems.

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Initiative:Abilitytotakenecessaryand
appropriateactionindependently.

Control:Abilitytoexercisecontroloversubordinatesand
gaintheirconfidence.

Integrity:Abilitytomaintainanhonest
approachinalldealings.
Loyalty:Abilitytofaithfully,willinglyand
loyallysupportsuperiors,equalsand
subordinates.
Maturity:Understandingandbalance
commensuratewithageandservice.
Stamina:Abilitytowithstandandperform
successfullyunderprotractedphysical
strain.
Tenacity:Abilitytopreserveinfaceofodds
anddifficulties.
Verbalexpression:Abilitytoexpress
oneselfclearlyandconcisely.
WrittenexpressionAbilitytoexpress
oneselfclearlyandconciselyinwriting.

Source:AdaptedfromanappraisalformofanorganizationillustratedinMonga,
1983.

Managementproblemsinevaluatingperformance
Identificationofappraisalcriteria
Assessmentproblems
Policyproblems
Someoftheimportantproblemsfacedbymanagersinevaluatingperformanceare
identificationofappraisalcriteria,problemsinassessment,andpolicyrelatedproblems.
Identificationofappraisalcriteria
Itisusuallyquitedifficulttodecidethecriteriaforevaluatingperformance,particularlythe
performanceofthoseengagedinresearchactivities.Initiative,appearance,tactor
organizationalskillsofresearchersareverydifficulttoassess.Whiledecidingtheperformance
criteria,itisimportanttosimultaneouslydecidehowwellpeopleshouldperform.Theaimofthe
appraisalsystemistomakeinformed,accurateandfactbasedjudgments,althoughsomeof
thesejudgmentsmaynotbequantifiable.
Conventionally,thenumberofcontributionsacceptedforpublicationinrefereedprofessional
journalshasbeenausefulmeasureforevaluatingtheperformanceofscientists.Thisis
perhapsanappropriatemeasureforthosewhoareengagedinbasicresearch.However,
publicationnumbersdonotadequatelymeasureperformanceofthoseengagedinadaptive
andappliedresearch,whichareaimedatmeetingpracticalandcriticalneedsofusers.The
performanceofsuchresearchershastobemeasureddifferently,takingdueconsiderationof
theirsuccesswiththeusersystem.Onthewhole,qualitativeassessmentmaybemore
appropriateforresearchersbecauseofdifficultiesinquantitativeassessment,asresearchis
relativelynonrepetitive,requirescreativity,usuallytakesalongishtime,hasunpredictable
outcomes,andcouldresultinmultidimensionaloutputs.Therefore,outputsofresearchand
researchersshouldnotbemeasuredbyonecriterion.Instead,performanceofaresearcher
hastobemeasuredintoto,asanintegralpartoftheresearchprogramme.
Assessmentproblems
Itisdifficulttoobservebehaviourandinterpretitintermsofitscauses,effectsanddesirability.
Ratingbehaviouronanappraisalformisquitedifficult.Thehumanelementplaysasignificant
roleintheappraisalprocessandintroducessubjectivityandbias.Thiscanbeminimizedby:
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documentingperformancefromtimetotime
basingcriteriaforevaluationonobservablebehaviour
trainingthesupervisorsand
effectivelycommunicatingtheexpectationswhichmanagementhasofstaff.
Policyproblems
Theresultsoftheappraisalsystemshouldbefollowedupthroughasetofwelldesignedand
enforcedpolicies,andtranslatedintorewardsandpunishments.Performanceofresearchersis
sometimesdifficulttoassess.Aresearchmanagerhastobalancebetweenresearchers'
creativityandorganizationalgoals.Researchersdonotlikeotherspassingjudgmenton
qualitativeorquantitativeaspectsoftheirwork,yettheneedforaneffectiveperformance
planningandappraisalsysteminaresearchorganizationiswellaccepted.

References
Einstein,W.O.,&LeMereLabonte,J.1989.Performanceappraisal:dilemmaordesire?Sam
AdvancedManagementJournal,54(2):2630.
Monga,M.L.1983.ManagementofPerformanceAppraisal.Bombay:HimalayaPublishing
House.
Oberg,W.1972.Makeperformanceappraisalrelevant.HarvardBusinessReview,January
February1972:6167.
Patten,T.H.,Jr.1982.AManager'sGuidetoPerformanceAppraisal.London:FreePress.
Rao,T.V.1985.PerformanceAppraisalTheoryandPractice.NewDelhi:VikasPublishing
House.
Craig,S.E.,Beatty,R.W.,&Baird,L.S.1986.Creatingaperformancemanagementsystem.
TrainingandDevelopmentJournal,April:3842May:7479.

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