Provincial Health Services Academy, Gov: Of KP.

Performance Appraisal / Management.

DR. MUHAMMAD DAUD

What is Performance Management?

 Performance Management is both a Strategic and an Integrated

approach of delivering successful results in organizations by

improving the Performance and developing the Capabilities of
teams and individuals

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 Performance Management System.
:
 Links individual employee’s performance objectives / targets with
the organization’s mission and strategic Goals. The employee must
have a clear concept on how they contribute to the achievement the
overall Organizational Objectives.
 Focuses on setting clear Performance Objectives and
expectations through the use of results, actions and behaviors,
 Defines clear Employee’s development plans as part of the process,
and
 Conducts regular discussions and support throughout the
performance cycle which include such things as coaching,
mentoring, feedback and assessment.

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What is measured?
 Effectiveness, which determines the relationship of an organisation's outputs /
outcomes to what an organisation is intended to do

 Productivity, which quantifies the outputs and inputs of an organisation and

expresses the two as a ratio.

 Quality, which examines an output or the process by which an output is produced.

Quality is indicated by attributes such as accuracy (or error rate), thoroughness, and
complexity.

 Timeliness, which evaluates the time involved producing an appropriate output

 Employee performance by means of performance appraisal / management.

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 Organization’s Mission /
Manadat given in Rules of
Business (RoBs)

PMS at
PMS at Organization level section/unit
level
Organization / Departments
Section/ Unit
Strategic Plan / Goals
Final Performance Plans / Goals
Review (Formal)

• Organization PMS at
• Section PMS CYCLE
Individual level
• Individual
- Work Plan /
Moderation Targets
- Development
Progress Review/ Mid-term
Plan
review. (Formal)
• Organisation – Top Moderation
Management
• Section – Head
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• Individual – Appraisee/
 Key Features of PMS

PMS integrates all levels of the organization starting from the Top
Management where strategic planning is developed down to the
individual ‘s performance Targets who carry out the day-to-day
tasks.

The 3 main levels are:

 organizational level
 section/unit level
 individual level
 Key Features of PMS (contd)
At organisational level
1. Develop Strategic plan for a specific period (3-5 Yrs).
 Set out objectives and Key Result Areas (KRAs) for the
Organisation / Dept.
 Develop Key Performance Indicators (KPIs) for each KRA.
2. Measure organisational performance.
3. Review achievement/non-achievement of objectives.
 Key Features of PMS (contd)
At section/unit level
1. Develop section/unit plan for a specific period (1 Year) based on the
approved strategic plan.
 Set out objectives and KRAs for section/unit
derived from strategic plan.
 Develop KPIs for each KRA.
2. Measure Performance of section/unit.
3. Review achievement/non-achievement of objectives.

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 Key Features of PMS (contd)
At individual level

1. Develop work plan based on section/unit plan.

 Set out KRAs and Key Tasks / Function for each KRA.
 Develop Performance Standards for each
Key Task / Function.
2. Measure performance of individual.
3. Review achievement/non-achievement of KRAs/Key Tasks.

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Employee’ s Performance Management

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 Employee Performance Management
 Employee Performance Management is a continuous process of planning,
managing & development to:

 positively influence employee behaviour for achievement of the organisation’s

strategic goals;
 determine the correct activities as well as the evaluation and recognition of the execution
of tasks/duties with the aim of enhancing their Efficiency and Effectiveness; and
 improve Results from the Department, teams and individuals by understanding and
managing performance within an agreed framework of planned goals, objectives,
indicators and support incentives.

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 The Process includes:-
 Planning work and setting targets in line with organisation objectives

 Continually monitoring performance

 Developing Capacity to perform

 Periodically rating performance

 Rewarding good performance and tackling poor performance

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 Performance and Competencies.
The Performance “Formula”
Performance = i) Capacity X ii) Commitment
 Performance is the accomplishment of agreed work

assignments or set Targets.

i) Capacity is the ability to do something

ii) Commitment is the willingness and promise to do

something

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 Capacity— the ability to do something
i) Capacity = Competencies x Resources x Opportunity
 Competencies are sets of measurable skills, knowledge, behaviors, and
personal attributes critical to successful performance
 Resources are the physical tools and environment needed to do the job

 Opportunity is giving the employee the chance to do it

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ii) Commitment :— the willingness and
promise to do something:
a) Employee Agreement b) Means of gaining commitment
to complete assigned work at a include:
specific standard of  Setting mutually Agreed SMART
Goals/Targets
 Quality  Using Credible Performance measures
 Quantity  Involvement of Employees.

 Timeliness  Open & Effective communication.

 Cost-effectiveness  Organization Climate where employees

feel valued
 Recognizing and Rewarding employees

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Linking the Formula to Performance Management

Planning Monitoring
Performance Performance

Rewarding
Developing
Performance
Performance

Rating
Performance

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DEVELOPING AN “EFFECTIVE PERFORMANCE MANAGEMENT
SYSTEM”
1. Develop Objective Job descriptions, Job performance standards with
agreement of individuals, supervisors and Top management and
communicate to all concerned.
2. Set SMART Goals / Targets in agreement with the individual employee.
3. Develop development plans for skills enhancement and career development
of employees.
4. Develop recognition and reward / incentive system and implement it in a
fair and transparent manner.
5. Develop and implement a reliable, objective and transparent system of
performance measurement.

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DEVELOPING AN “EFFECTIVE PERFORMANCE MANAGEMENT
SYSTEM”
6. Provide Continuous / Ongoing FEEDBACK and SUPPORT to improve
Performance and achieve Targets / Goals.
7. Properly TRAIN Supervisors / Appraisers on:
a. Setting SMART Goals / targets in line with the organization ‘s Strategic Goals and
relevant Wing / Section’s Objectives.

b. Developing proper Skills and Competencies development program and its effective
implementation and regular assessment.

c. Develop a System of Continuous measurement of Performance in a Participatory

manner and providing regular feedback.

d. Conducting proper and constructive Feed back interview.

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 Performance Appraisal.
 Performance Appraisal
It describes a process of judging past
performance and not measuring that
performance against clear and agreed
objectives.

 Performance Management shifts the focus away

from just an annual event to an on-going
process.

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0
Performance MGT is NOT Performance Appraisal
 Performance Appraisal
 Driven by HR
 Assesses employee’s
 Strengths &
 Weaknesses
 Once a year
 Lacks ongoing feedback

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Performance MGT is NOT Performance Appraisal
 Performance Management
 Aligning Individual and Team Performance with
Strategic Goals of the organization.
 Driven by line manager
 Ongoing feedback
So employee can improve performance

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 OBJECTIVES OF PERFORMANCE APPRAISAL
 Performance Appraisal / Management is a key element in the use
and development of an organization most vital resource. i.e.
employees.
 Objectives of the Performance Appraisal:
There are two types of objectives of performance Appraisal /
Management:

A. Evaluation objectives.
B. Development objectives.

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OBJECTIVES of Performance Appraisal / Management:
A. Evaluative Objective:
Used for:-

Compensation decisions
Placement decision.
Transfer, Promotion and demotion.
Employees’ Selection Process.
Job designing / Re-designing.
Providing legal base for organization decisions

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 OBJECTIVES Of Performance Appraisal / Management:
B: Developmental Objectives:
These objectives aim at
identifying gaps in employee’s Job related knowledge, behavior
and skills competencies so that proper training & development
plan are prepared.

Development of Career Plan.

Preparing for Future Performance.

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 Performance Measurement;

Subjective Measures:

These Ratings / Performance Measures are based on

personal opinions of Raters/ Evaluators and are not
verifiable and usually having no Objective Job
description and agreed Performance standards.
These are usually non-quantifiable.

Objective Measures:

These are Ratings or Performance measures, which

are verifiable, quantitative and measured against
agreed Performance standards / Targets.
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Performance Measurement;

Direct observation:
It occurs when the rater/evaluator actually sees the
performance. It is more accurate.

Indirect observation:

The rater / Supervisor can evaluate only substitute

for actual performance.
These substitutes are called “Constructs”. Written
test about knowledge, skills, performance report.

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CHARACTERISTICS OF PERFORMANCE MEASURES.

Measures should be easy and practical.

Measures should be reliable

Measures should be verifiable

Measures should be mutually agreed.

Measures should report on critical behavior

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THE Employee’s Performance Appraisal Process:
Steps include:

 Establish Performance Standards involving Employees (Performance Standards should be

SMART.

 Mutually set dependable Performance Measurement Methods.

 Measure Actual Performance. Gather accurate and reliable information, using various sources

such as Oral and written reports & Personal observation.

 Compare Actual Performance with the Agreed Performance Standards.

 Discuss Appraisal with the Employee (conduct Feed back Interview).

 Identify Reasons for low performance and take timely Remedial Actions for improvement.

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COMMON APPRAISAL PROBLEMS / CHALLENGES

 Legal Constraints:

Performance appraisal must be free of illegal discrimination. The Evaluation

Form must be both reliable and valid so that legal suits could be avoided.

 Biases of the Evaluators / supervisors):

Bias:
It is the Systematic tendency to use information about others in ways that
results in Inaccurate Perceptions.

Biases usually occur due to:

 Subjective measures
 Emotional attachment of supervisor / Rater

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FACTORS THAT DISTORT APPRAISALS:

HALO-Effect:

It occurs when a supervisor / Rater lets one particular aspect of an employee’s

performance, influence the evaluation of other aspects of performance.

The Error of Central Tendency:

When supervisor / Raters evaluate everyone as average, the result is central

tendency. It happens when:

Supervisors cannot objectively evaluate employee’s performance due to lack of ability

and knowledge about the work.

Fear that they will be reprimanded and shall have to provide written justification for
evaluating individuals “Very high’ or “Very poor

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FACTORS THAT DISTORT APPRAISALS:
Leniency:

It occurs when Raters tend to give high performance evaluation. The

supervisors may feel that employees cannot complain about their
appraisal if they all receive high appraisal.
Leniency seldom creates good feeling among employees. The best performer will
complain about such supervisors, as he does not get credit for his hard work.
Strictness:

It occurs when the rater is too harsh in evaluation. The supervisor / rater may believe that
the employees shall think about him as “Tough Judge” of performance.
Both leniency and strictness errors / biases more commonly occur when performance
standards are “Vague”.

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FACTORS THAT DISTORT APPRAISALS:

The Recency Effect:

The recent events “good” or “bad” are remembered by the
supervisors while evaluating at the end of year.
This tendency of supervisors usually happens in subjective
performance measure.
This can be minimized by conducting more frequent appraisals,
or keeping a running log or diary of employees' behavior.
Personal Prejudice:
A Rater's dislike for a group or class of people may distort the
evaluation of those people, which may violate Anti Discriminative
Laws.
Example: Male evaluators give low rating to “Female employees
“Occupying the Male job position.

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 FACTORS THAT DISTORT APPRAISALS:

Cross Cultural Biases:

Evaluator or supervisor expects human behavior of employees

according to his / her culture. When employees from different
cultures are required to be evaluated, they may apply their
cultural expectations to someone who has different set of
beliefs or behaviors. These are then resisted by employees.

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PERFORMANCE APPRAISAL METHODS /TECHNIQUES.
A). PERFORMANCE APPRAISAL USING “ABSOLUTE METHODS”:
Measurement of employee’s performance against some established standards,
independent of any other employee.

A.1 THE ESSAY APPRAISAL METHOD:

The evaluator describes employee’s strength & weaknesses, past

performance, potentials and suggestions for improvement.

It is useful when used in conjunction with other appraisal Methods.

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PERFORMANCE APPRAISAL METHODS

A. 2 THE CRITICAL INCIDENT APPRAISAL:

In this method, the Rater (Evaluator) records statement that

describes extremely good or bad behavior related to Job
performance. These statements are called critical incidents.
Dates of Positive behavior Dates of Negative behavior

A. 3 “WEIGHTED CHECKLIST METHOD”

In this method, the Rater uses Words; statements that describe
the employee’s performance and characteristics, weights are
assigned to different items, depending on their importance in
the job, which allows Quantification of rating. See Figure.

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 WEIGHTED PERFORMANCE CHART
Employee name: Department:
Rater’s name: Date:

Weights
(20) 1. Employees works overtime when asked
(10) 2. Employee keeps workstation or desk well organized
(10) 3. Employees co operatively assists others who need help.
(15) 4. Employee plans actions before beginning job.

100.0 total of all weights

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PERFORMANCE APPRAISAL METHODS
A.4 THE RATING SCALE METHOD.

This is the most popular and one of the oldest methods of

appraisal. In this method, the Rater Lists a number of traits
and a range of performance for each.

Rating scale can be used to assess factors such as quantity

and quality of work, job knowledge, cooperation, personality
traits etc. See Figure.

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 RATING SCALE FOR PERFORMANCE EVALUATION
Employee name: Department:

Rater’s name: Date:

Excellent Good Acceptable Fair Poor

5 4 3 2 1

Dependability

Initiative

Overall output

Attendance

Attitude

Cooperation

Quality of work

•.

•.

•.

Results: -------------- ------------- - --------------

Totals: Total Score

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PERFORMANCE APPRAISAL METHODS

A-6 THE BEHVIORALLY ANCHORED RATING SCALES: -

This method is used to identify and evaluate relevant job related

behaviors of employees. Specific job related behaviors are used for
evaluation by the Rater.

1. Behavioral Expectation Scales (B.E.S).

Specific behavior are used as Bench mark to help the Rater / Evaluator.
This method reduces the Subjectivity and other biases of other methods. The
description of good or bad provided by the employees, peers and supervisor,
the job analysts or knowledgeable employee classify behavior into Major
categories of job performance. See Figure
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 BEHAVIORAL EXPECTATION RATING SCALE FOR HOTEL BARTENDER.
Performance Category: Customer Relations)

Extremely outstanding 7 You can expect this bartender to help customers in need.
performance
Good performance 6 You can expect this bartender to calm down arguments
before they erupt in fights.
Fairly good performance 5 You can expect this bartender to use discretion about
whether to continue serving intoxicated customers who
are with the other patrons.
Acceptable performance 4 You can expect this bartender to stop serving drinks to
those who are intoxicated and alone.
Fairly poor performance 3 You can expect this bartender to make idle conversation
with customers who are alone.
Poor performance 2 You can expect this bartender to check identification of
young customers on their first time in the bar.
Extremely poor performance 1 You can expect this bartender to pick up customers drink
finished or not with little or no warning at closing time

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BEHAVIORAL EXPECTATION RATING SCALE FOR HOTEL BARTENDER.
Performance Category: Customer Relations)

II. BEHAVIORAL OBSERVATION SCALES (BOS):

 It uses specific job related behaviors as benchmark and the Rater reports the
“Frequency of those Behaviors”.

 BES discusses job related behaviors on a rating scale defining poor to superior
performance. While BOS ask the Rater to identify the FREQUENCY of the
IDENTIFIED Behavioral Anchors along a five (5) point scale from ALMOST NEVER
TO “ALMOST ALWAYS”. See Figure.

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 BEHAVIORAL OBSERVATION SCALES FOR A BARTENDER CUSTOMER’S RELATIONS

1. You can expect this bartender to help customers in need:

Almost never
Almost Always

1
5

2. You can expect this bartender to calm down arguments before they erupt into flight:

Almost never
Almost Always

1
5

.

.

.

.

7 . You can expect this bartender to pick up customers drink finished or not with little or no warning at
closing time.

Almost never
Almost Always

1
5
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Other Appraisal Methods:
1. SELF APPRAISAL.
It is a useful technique for the employee’s involvement and commitment to self-development as well as career
development. In this method, defensive behavior is minimum.
2. MANAGEMENT BY OBJECTIVE (MBO) USED AS AN APPRAISAL METHOD
 In this method, the measurable and mutually agreed goals are set by employees and the manager.
 Employees participate and commit goals; therefore motivation is greater in performance
 Employees can measure their performance; hence they can adjust their behavior and achieve goals.
 To adjust their behavior, employees must receive timely feed back on their performance.
 Manager and employees discuss the specific development needs of the employees and process
improvement.
 Minimum biases as focus remains on job objectives

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Other Appraisal Methods:
3. 360- DEGREE APPRIASALS:

 It is an appraisal method, in which supervisors, co-workers, employees, customers

and suppliers evaluate the individual on the basis of their feedback. The growth of
project teams and employee’s involvement in today’s organizations, places the
responsibility of evaluation, where people are better able to make an accurate
assessment. The process has some positive benefits for development concerns. and a
range of performance for each.
 Rating scale can be used to assess factors such as quantity and quality of work, job
knowledge, cooperation, personality traits etc.

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  Prepare Plan for: Day /Time, Place, needed record / information
etc.
 Emphasize: Positive aspects of employee performance.
 Taking employees into confidence: Tell each employee that
purpose of the evaluation process is to improve performance, not
to discipline or punish (Development objective of evaluation).
 Conduct the Feedback interview in private with minimum
interruptions.
 Provide feedback on specific areas that need improvement and
avoid subjective and vague terms and phrases. For example:

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