Performance

Management
 Human Resource Management System

Responsibilities Of
HRM

Orientation, Performance Compensation

Human Recruitment
Training Appraisal &
Resource &
& And Benefits
Planning Selection
Development Management Management
Performance functions
a) Ability
b) Motivation
c) Opportunity
Determinants of Job Performance
Willingness to perform
Capacity to Perform
Opportunity to Perform
Performance Appraisal
Performance appraisal is a system of review
and evaluation of an individual or team’s
job performance.
Performance management is a process that
significantly affects organizational success by
having managers and employees work together
to set expectations, review results, and reward
performance.
Its goal is to provide an accurate picture of
past and / or future employee performance.
Performance Management
◼ A continuous process
◼ Identifying
◼ Measuring
◼ Developing
◼ Performance of individuals and teams
◼ Aligning Performance
◼ Strategic goals
◼ Organization
Components of Performance Management
Continuous Process
◼ Never ending Process
◼ Setting Goals & Objectives
◼ Observing Performance
◼ Giving & Receiving
◼ Ongoing coaching & feedback
Alignment with Strategic Goals
◼ Employees Activities & output
◼ Competitive Advantage
◼ Link
◼ Employees Performance
◼ Organizational Goals
 Performance Appraisal Process
Identify the specific
performance
appraisal goals

Establish
job expectations
(job analysis)

Examine
work performed

Appraise
performance

Discuss
appraisal
with employee
Performance Appraisal Uses
◼ Performance appraisal is used to make the
evaluation decisions
◼ It is also used to provide the need assessment
source for the training and development if there
is a gap between actual and expected
performance.
◼ For many organizations, the primary goal of an
appraisal system is to improve performance.
◼ A system that is properly designed and
communicated can help achieve organizational
objectives and enhance employee performance.
Performance Appraisal Uses in HR Functions
◼ Human Resource Planning
◼ Recruitment And Selection
◼ Training And Development
◼ Career Planning And Development
◼ Compensation Programs
◼ Internal Employee Relations
◼ Assessment Of Employee Potential
What Should Be Evaluated

◼ Traits
◼ Behaviors
◼ TaskOutcomes
◼ Improvement Potential
Performance Appraisal Methods

◼ 360-Degree Feedback
◼ Rating Scales
◼ Critical Incidents
◼ Essay
◼ Work Standards
◼ Ranking
Performance Appraisal Methods
◼ Forced Distribution
◼ Forced-Choice And Weighted
Checklist Performance Reports
◼ Behaviorally Anchored Rating
Scales
◼ Results-Based Systems
◼ Assessment Centers
◼ Management by objectives
(MBO)
Performance Appraisal Methods
◼ Forced Distribution
◼ Forced-Choice And Weighted
Checklist Performance Reports
◼ Behaviorally Anchored Rating
Scales
◼ Results-Based Systems
◼ Assessment Centers
◼ Management by objectives
(MBO)
Appraisal Interview
◼ Scheduling the Interview
◼ Interview Structure
◼ Use of Praise and Criticism
◼ Employees’ Role
◼ Use of Software
◼ Concluding the Interview
Responsibility of Appraisal
◼ Self-Appraisal
◼ Immediate Supervisor
◼ Subordinates
◼ Peers
◼ Customer Appraisal
Problems in Performance Appraisal
◼ Lack of Objectivity
◼ Halo Error
◼ Leniency/Strictness
◼ Central Tendency
◼ Recent Behavior Bias
◼ Personal Bias
◼ Manipulating the Evaluation
Reasons for Performance Appraisal Failure
◼ Manager lacks information
◼ Lack of appraisal skills
◼ Manager not taking appraisal seriously
◼ Manager not prepared
◼ Employee not receiving ongoing feedback
◼ Manager not being honest or sincere
◼ Ineffective discussion of employee
development
◼ Unclear language
◼ Insufficient reward for performance
Advantages of Effective Performance Appraisal
◼ Motivation to perform is increased
◼ Self esteem is increased
◼ Managers gain insight about subordinates
◼ Definitions of job and criteria are clarified
◼ Self-insight and development are enhanced
◼ Administrative actions are fair and appropriate
◼ Organizational goals are made clear
◼ Employees become more competent
◼ Legal actions can be justified
◼ Differentiation between good and poor performance
◼ Performance measures are communicated more clearly
◼ Organizational change is facilitated
◼ Motivation and retention is enhanced
Disadvantages of Effective Performance Appraisa
◼ Increased turn over
◼ Use of misleading information
◼ Lowered self esteem
◼ Wasted time and money
◼ Damaged relationship
◼ Decreased motivation
◼ Employee burnout and job satisfaction
◼ Unjustified demands on resources
◼ Varying and unfair standards and ratings
◼ Emerging biases
◼ Unclear ratings system