PERFORMANCE

MANAGEMENT AND
APPRAISAL
GROUP MEMBERS
 RAJA MOHAMMAD WASEEM
 SAAD
 M. ABDULAHH MAJEED
 ABDUL AZIZ

 NAVEET KUMAR VANKANI

PERFORMANCE MANAGEMENT SYSTEM
 Processes used to identify, encourage, measure,
evaluate, improve, and reward employee
performance.
 Performance management system should do
the following:
 Provide information to employees about their
performance.
 Clarify what the organization expects.

 Indentify development needs.

 Document performance for personnel records.

IDENTIFY AND MEASURING EMPLOYEE
PERFORMANCE

 What an employee does or does not do.

 Elements of Employee Performance:
 Quantity of output
 Quality of output
 Timeliness of output
 Presence at work
 Cooperativeness
 Job Criteria:-
 Alsocalled job dimensions of job
performance identify the most important
elements in a given job.

 Mostjobs have more than one job criterion or

dimensions.
TYPES OF PERFORMANCE INFORMATION

 Trait-based information:-

 Behavior-based information:-

 Results-based information:-
RELEVANCE OF PERFORMANCE CRITERIA:-

Measuring performance requires the use

of relevant criteria that focuses on the
most important aspects of employees’
jobs.
POTENTIAL PERFORMANCE CRITERIA PROBLEMS:-

 Performance measures also can be:

Objective:
Can be directly measured or counted.
Subjective:
Require judgment on the evaluator & are
more difficult to measure.
PERFORMANCE STANDARDS

 Expected levels of performance.

 Realistic, measureable, clearly understood
performance standards benefit both
organizations and employees.
 Standards need to be established before
the work is performed.
 Both numerical and non-numerical.
PERFORMANCE APPRAISAL

 Theprocess of evaluating how well employees

perform their jobs when compared to a set of
standards, and then communicating that information to
employees.
 Also called:
 Employee Rating
 Employee Evaluation

 Performance Review
 Performance Evaluation
 Results Appraisal
USES OF APERFORMANCE APPRAISALS

 Widely used for administrating wages and

salaries, giving performance feedback and
identifying individual employee strengths and
weaknesses.

 Globally it provides benefits in a variety of work

situations.
USES OF APERFORMANCE APPRAISALS
INFORMAL VS. SYSTEMATIC APPRAISALS
 Informal Appraisals:
 Supervisor conducts informal appraisals whenever
necessary.
 Employees day-to-day performance is evaluated
during work by manager.
 A manager communicates this evaluation through
conversion on the job, over coffee, or by on-the-spot
examination of a particular piece of work.
 Informal appraisal is especially appropriate when time
is an issue.
 Systematic Appraisal:-
 Used when contact between manager and
employee is formal, and system is in place to
report managerial impressions and observations
on the employee performance.
 Mostly employers have a formal performance
appraisal system.
APPRAISAL RESPONSIBILITIES

 Appraisal Performance System(APS) is typically

designed by the HR unit.
 Then manager appraises employees using the
performance appraisal system.
 By APS good employees can be developed to be even
better and those of poor employees' performance can
be improved or thy are removed from the
organization.
WHO CONDUCTS APPRAISALS?
 Generally can be conducted by anyone who is familiar
with the performance of individual employees.
 But possibilities include:
 Supervisors
 Employees
 Team members
 Outside sources
 Employees’ self-appraisal
 Multisource (360° feedback) appraisal
 Supervisory Rating of Subordinates:-
 Supervisoris the person most qualified to evaluate
the employees performance fairly.
 Employee Rating of Managers:-
 A number of organizations today ask employees or
group members to rate the performance of
supervisors and mangers.
 Team /Peer Ratings:-
 Useful when supervisor don’t have opportunity to
observe each employee’s performance.

 Can affect teamwork & participative management

efforts negatively.
 Self Ratings:-
 Itforces employees to think about their strengths
and weaknesses and set goals for improvement.

 Outside Raters:-
 Customers
 Clients
 Multisource Rating/360° Feedback:-
 Multi-raterfeedback, multisource feedback, or
multisource assessment.

 Multisource rating refers that feedback comes

from all around an employee.

 Feedback is provided by subordinates, peers, and

supervisors.
MULTISOURCE RATING/360° FEEDBACK
METHODS FOR APPRAISING PERFORMANCE
 There are 4 groups for appraising performance.

 Category Rating Methods.

 Comparative Methods.

 Narrative Methods.

 Behavioral/Objective Methods.
Category Rating Methods
 A specific form is used to mark an employee’s level
of performance, divided into categories of
performance.
 GRAPHIC RATING SCALE:-

A scale that allows the rater to mark an employee’s

performance on a continuum.
i. JOB CRITERIA
ii. BEHAVIORAL ASPECTS
CHECKLIST

Performance appraisal tool that

uses a list of statements or words
that are checked by raters.
Comparative Methods
 Directly comparing employees’ performance
against each other.

 Listing of all employees from highest to lowest in

performance.
Narrative Methods
 Written appraisal information.
 CRITICAL INCIDENT:-
Manager keeps a written record of both highly
favorable and unfavorable actions during entire rating
period.
 ESSAY:-

Also “free-form”, is appraisal method requires a

manager to write a short essay describing each
employee’s performance during rating period.
Behavioral/Objective Methods
 Attempt to assess an employee’s behaviors instead
other characteristics.
 Behaviorally anchored rating scales(BARS):-

It compares what the employees does with possible

behaviors that might shown on the job.
 Behavioral observation scales(BOS):-
It counts the number of times certain behaviors
are exhibited.

 Behavioral expectation scales(BES):-

Order behaviors on a continuum to define
outstanding, average, and unacceptable
performance.
MANAGEMENT BY OBJECTIVES (MBO)
 It specifies the performance goals that an individual
and his or her manager agree to try to attain within
an appropriate length of time.
 Appraisal by results
 Work planning and review
 Performance objectives
 Mutual goal setting
 Target-coaching
THE MBO PROCESS

1. Job review and agreement:

2. Development of performance standards:

3. Guided objectives setting:

4. Continuing performance discussions:

RATER ERRORS
Rater Error Practical Impact
Similar performances are rated
Varying standards
differently

Recency /primary effects Timing of information affects rating

Central tendency, leniency,

Every one is rated the same
strictness

Rater bias Certain factors overwhelm others

Generalization is made from only one

Halo/horn effect
trait
Comparison is made to other people,
Contrast error
not standards
Similar to me/different from
Raters compares employees to self
me

Sampling error Available information is insufficient or

inaccurate
APPRAISAL FEEDBACK
 Organizations commonly require managers to
discuss appraisals with employees.

 Appraisal interview :-
 It presents both an opportunity and danger.

 In this manager must communicate praise and

constructive criticism.
 Feedback as a system :-
 Data

 Evaluation of that data

 Action based on evaluation

 Reaction of managers:
 From the manager’s viewpoint, providing negative
feedback to an employee in an appraisal interview
can be easily avoided by making the employee’s
ratings positive.
 Reaction of appraised employees:
 Many employees view appraising as a zero-sum
game—that is, one in which there must be a
winner and a loser.
LEGAL AND EFFECTIVE PERFORMANCE
APPRAISALS

 The uniform guidelines issued by EEOC &

other federal enforcement agencies make it
clear that performance appraisals must be job-
related and nondiscriminatory.
EFFECTIVE PERFORMANCE MANAGEMENT

 An effective performance management system will

be:
 Consistent with the strategic mission of the
organization
 Beneficial as a development tool
 Useful as an administrative tool
 Legal and job-related
 Viewed as generally fair by employees
 Useful in documenting employee performance