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The performance is measured against such factors as Job knowledge Quality and quantity of output Initiative Leadership Abilities Supervision Dependability Co-operation Judgment Versatility Health


Assessment should not be confined to past performance alone. Potential of the employee for future performance must also be assessed




THE PERFORMANCE APPRAISAL PROCESS Objectives of PA Establish Job Expectations Design an Appraisal Programme Appraise Performance Performance interview Archive Data Use data for appropriate purposes .

Establish Job expectation  Informing employees what is expected of them  . Objectives of Appraisal  Promotions and transfers  Assessing training needs  Pay increases  2.THE PERFORMANCE APPRAISAL PROCESS 1.

THE PERFORMANCE APPRAISAL PROCESS 3.1 Formal versus informal appraisal  Formal appraisal occurs once or twice in a year  Informal appraisal occurs whenever the supervisor feels a need for communication.  3. Design Appraisal Programme  3.2 Whose performance should be rated  Individuals or teams  .

THE PERFORMANCE APPRAISAL PROCESS 3.3 Who are the Raters?  Immediate supervisors  Specialists from the HR department  Subordinates  Peers  Committees  Clients  Self appraisal  Combination of several  .

THE PERFORMANCE APPRAISAL PROCESS  360-degree appraisal Clients Superiors Subordinates Peers .

it is called the 360-degree system of appraisal.   It was developed at General Electric. USA in1992.THE PERFORMANCE APPRAISAL PROCESS 360-degree appraisal  When appraisal is made by superiors. subordinates and clients. peers. .

THE PERFORMANCE APPRAISAL PROCESS 3.3 Who are the Raters  . Design Appraisal Programme  3.


6 Methods of Appraisal  Past oriented methods  Future-Oriented Methods  .5 Timing of Evaluation  Once in three months  Six months  One year  3.THE PERFORMANCE APPRAISAL PROCESS 3.

METHODS OF PERFORMANCE APPRAISAL Past-Oriented Methods Rating Scales Checklist Forced Distribution Method Critical Incidents Method Behaviourally Anchored Rating Scales Field Review Method Future Oriented Methods Management by objectives Psychological Appraisals Assessment Centres 360-Degree Feedback Performance Tests and Observations Confidential Records Essay Method Cost Accounting Method Comparative Evaluation Approaches .


RATING SCALE Criteria Dependability Initiative Overall output Attendance Attitude Co-operation Excellent 5 Good 4 Acceptable 3 Fair 2 Poor 1 .

 .METHODS OF PERFORMANCE APPRAISAL  Advantages Economy Easy to administer Limited training of rater Standardisation Disadvantages Rater’s bias.

CHECKLIST Yes Is the employee interested in the job? Do they obey orders? Do they observe safety precautions Do they report on time Do they complete the work on time? No .





METHODS OF PERFORMANCE APPRAISAL  Developing a BARS Identify important job dimensions  Write short statements of job behaviors  Assign statements (anchors) to job dimensions  Set scales for anchors  .


PROBLEMS IN PERFORMANCE APPRAISAL Appraiser discomfort  Lack of objectivity  Halo/horn error  Leniency/strictness  Central tendency  Recent behavior bias  Personal bias  Manipulating the evaluation  Employee anxiety  .

APPRAISER DISCOMFORT • Performance appraisal process cuts into manager’s time • Experience can be unpleasant when employee has not performed well .

and personality are difficult to measure Factors may have little to do with employee’s job performance Employee appraisal based primarily on personal characteristics may place evaluator and company in untenable positions   . appearance.LACK OF OBJECTIVITY  In rating scales method. commonly used factors such as attitude.

HALO/HORN ERROR Halo error .Occurs when manager generalizes one positive performance feature or incident to all aspects of employee performance resulting in higher rating  Horn error .Evaluation error occurs when manager generalizes one negative performance feature or incident to all aspects of employee performance resulting in lower rating  .

Giving undeserved high ratings  Strictness .Being unduly critical of employee’s work performance  Worst situation is when firm has both lenient and strict managers and does nothing to level inequities  .LENIENCY/STRICTNESS Leniency .

CENTRAL TENDENCY  Error occurs when employees are incorrectly rated near average or middle of scale  May be encouraged by some rating scale systems requiring evaluator to justify in writing extremely high or extremely low ratings .

RECENT BEHAVIOR BIAS  Employee’s behavior often improves and productivity tends to rise several days or weeks before scheduled evaluation Only natural for rater to remember recent behavior more clearly than actions from more distant past Maintaining records of performance   .

can influence appraisals Other factors – Example: mild-mannered employees may be appraised more harshly simply because they do not seriously object to results   . race or age to affect ratings they give Effects of cultural bias. or stereotyping.PERSONAL BIAS (STEREOTYPING)  Managers allow individual differences such as gender.

Supervisor may give employee a undeserved high performance evaluation  .MANIPULATING THE EVALUATION  Sometimes. managers control virtually every aspect of appraisal process and are in position to manipulate system Example: Want to give pay raise to certain employee.

better work assignments.EMPLOYEE ANXIETY  Evaluation process may create anxiety for appraised employee Opportunities for promotion. and increased compensation may hinge on results  .

or employee may simply disagree with evaluation and want to challenge it   .CONDUCTING THE PERFORMANCE REVIEW  A special time should be set for formal discussion of employee’s performance Withholding appraisal results is absurd Performance review allows them to detect any errors or omissions in appraisal.

THE APPRAISAL INTERVIEW  Achilles’ heel of entire evaluation process  Scheduling interview Interview structure Use of praise and criticism Employees’ role Use of software      Concluding interview .

INTERVIEW STRUCTURE  Discuss employee’s performance Assist employee in setting goals and personal development plans for next appraisal period Suggesting means for achieving established goals. including support from manager and firm   .

CONDUCTING SEPARATE INTERVIEWS  There is merit in conducting separate interviews for discussing  (1) employee performance and development and  (2) pay When the topic of pay emerges in interview. it tends to dominate conversation with performance improvement taking a back seat  .

is especially difficult to give  “Constructive” criticism is often not perceived that way . even if warranted.USE OF PRAISE AND CRITICISM  Praise is appropriate when warranted  Criticism.

EMPLOYEES’ ROLE  Should go through diary or files and make notes of every project worked on. regardless of whether they were successful or not Information should be on appraising manager’s desk well before review  .

company. and themselves Cannot change past behavior. future performance is another matter Should end with specific and mutually agreed upon plans for employee’s development   .CONCLUDING THE INTERVIEW  Ideally. employees will leave interview with positive feelings about management. job.

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