Performance Management System

ROHIT KUMAR
9/7/2011
PerIormance Management
PerIormance management is a means oI
getting better results Irom the organization,
teams and individuals by understanding
and managing perIormance within an
agreed Iramework oI planed goals,
standards and competence requirements.
9/7/2011
PerIormance Management Cycle
Role proIile
Plan
Act
Monitor
Review
PerIormance
agreement
Personal development
planning
PerIormance
PerIormance
review
9/7/2011
Elements oI PerIormance Management
System
efine Performance
Facilitate
performance
Encourage
performance
To energise
employee
performance
9/7/2011
PerIormance Appraisal
· The process oI determining and communicating to an
employee how he or she is perIorming on the iob and,
ideally, establishing a plan oI improvement.
· PerIormance evaluation is the systematic evaluation oI the
individual with respect to his perIormance on the iob & his
potential Ior development
9/7/2011
Purpose oI PerIormance Appraisal
Employ
ment
decision
purpose
9/7/2011
Requirements oI EIIective Appraisal
System
Relevance
Sensitivity
Reliability
Acceptability
Practicality
9/7/2011
The Appraisal Process
Establish perIormance standards
Communicate perIormance expectations to employee
Measure actual perIormance
Compare actual perIormance with the standards
Discuss the appraisal with the employee
Take corrective action iI necessary
9/7/2011
Components oI Appraisal Evaluation
WHO
WHAT
WHEN
WHY
WHERE
HOW
9/7/2011
PerIormance Appraisal Methods
9/7/2011
Category Rating Methods
· Graphic Rating Scale
A scale that allows the rater to indicate an employee`s
perIormance on a continuum.
· Job criteria scales
· Behavioral scales
Drawbacks
· Restrictions on the range oI possible rater responses
· DiIIerences in the interpretations oI the meanings oI scale items and
scale ranges by raters
· Poorly designed scales that encourage rater errors
· Rating Iorm deIiciencies that limit the eIIectiveness oI the
appraisal
9/7/2011
Typical Graphic Rating
Scale
9/7/2011
Category Rating Methods
· Checklists
A perIormance appraisal tool that uses a list oI statements or work
behaviors that are checked by raters.
· Can be quantiIied by applying weights to individual checklist items.
Drawbacks
· Interpretation oI item meanings by raters
· Weighting creates problems in appraisal interpretation
· Assignment oI weights to items by persons other than the raters
9/7/2011
es No
1. oes the employee lose his or her temper in public? ¸¸¸¸¸ ¸¸¸¸¸
2. oes the employee play favorites? ¸¸¸¸¸ ¸¸¸¸¸
3. oes the employee praise employees in public when
they have done a good job? ¸¸¸¸¸ ¸¸¸¸¸
4. oes the employee volunteer to do special jobs? ¸¸¸¸¸ ¸¸¸¸¸
Sample Checklist Questions
9/7/2011
Comparative Methods
· Ranking
Listing oI all employees Irom highest to lowest in
perIormance.
Drawback
· Does not show size oI diIIerences in perIormance between
employees
· Implies that lowest-ranked employees are unsatisIactory
perIormers.
· Becomes an unwieldy process iI the group to be ranked is
large.
9/7/2011
Comparative Methods
· Forced Distribution
PerIormance appraisal method in which ratings oI
employees are distributed along a bell-shaped curve.
Drawbacks
· Assumes a normal distribution oI perIormance.
· Resistance by managers to placing individuals in the lowest
or highest groups.
· Providing explanation Ior placement in a higher or lower
grouping can be diIIicult.
· Is not readily applicable to small groups oI employees.
9/7/2011
Forced Distribution
9/7/2011
Instructions: Rank the Iollowing statements
according to how they describe the manner in which
this employee carries out duties and responsibilities.
Rank 1 should be given to the most descriptive, and
Rank 5 to the least descriptive. No ties are allowed.
Rank Description
Is easy to get acquainted with.
Places great emphasis on people.
ReIuses to accept criticism.
Thinks generally in terms oI money
Makes decisions quickly.
Sample Set of Forced-Choice Statements
9/7/2011
Narrative Methods
· Critical Incident
Manager keeps a written record oI highly Iavorable
and unIavorable employee actions.
Drawbacks
· Variations in how managers deIine a 'critical incident¨
· Time involved in documenting employee actions
· Most employee actions are not observed and may become
diIIerent iI observed
· Employee concerns about manager`s 'black books¨
9/7/2011
Narrative Methods (cont`d)
· Essay Method
Manager writes a short essay describing an employee`s
perIormance.
Drawbacks
· Depends on the managers` writing skills and their ability to express
themselves.
· Field Review
Outside reviewer interviews the manager about the perIormance
oI each employee and develops a rating Ior the employees Irom
the interview notes.
9/7/2011
Behavioral/Obiective Methods
· Behavioral Rating Approach
Assesses employees` behaviors instead oI other characteristics
Consists oI a series oI scales created by:
· IdentiIying important iob dimensions
· Creating statements describing a range oI desired and undesirable
behaviors (anchors)
Types oI behavioral scales
· Behaviorally anchored rating scales (BARS)
9/7/2011
Source: C. E. Schneier and R. W. Beatty, 'Developing Behaviorally Anchored Rating Scales (BARS),¨ Personnel Administrator, August 1979, p.
60.
Example oI a Behaviorally Anchored Rating Scale
ARS
Scale Values Anchors
7 | |Excellent Develops a comprehensive proiect plan, documents it well, obtains required approval, and
distributes the plan to all concerned.
6 | |Very good Plans, communicates, and observes milestones; states week by week where the proiect
stands relative to plans. Maintains up-to-date charts oI proiect accomplishments and
backlogs and uses these to optimize any schedule modiIications required.
Experiences occasional minor operational problems but communicates eIIectively.
5 | |Good Lays out all the parts oI a iob and schedules each part; seeks to beat schedule and will allow
Ior slack.
SatisIies customers` time constraints; time and cost overruns occur inIrequently.
4 | |Average Makes a list oI due dates and revises them as the proiect progresses, usually adding
unIoreseen events; investigates Irequent customer complaints.
May have a sound plan, but does not keep track oI milestones; does not report slippages in
schedule or other problems as they occur.
3 | |Below Plans are poorly deIined, unrealistic time schedules are common.
average Cannot plan more than a day or two ahead, has no concept oI a realistic proiect due date.
2 | |Very poor Has no plan or schedule oI work segments to be perIormed.
Does little or no planning Ior proiect assignments.
1 | |Unacceptable Seldom, iI ever, completes proiect, because oI lack oI planning, and does not seem to care.
Fails consistently due to lack oI planning and does not inquire about how to improve.
9/7/2011
Management by Obiectives
· Management by Obiectives
SpeciIying the perIormance goals that an individual and his or
her manager agree to try to attain within an appropriate length oI
time.
· Key MBO Ideas
Employee involvement creates higher levels oI commitment and
perIormance.
Encourages employees to work eIIectively toward achieving
desired results.
PerIormance measures should be measurable and should deIine
results.
9/7/2011
The MBO Process
Job Review and Agreement Job Review and Agreement
DeveIopment of Performance Standards DeveIopment of Performance Standards
Guided Objective Setting Guided Objective Setting
Continuing Performance Discussions Continuing Performance Discussions
9/7/2011
360 Degree Feedback
Supervisor
Subordinates
Peers
Team
Customers
Self
9/7/2011
Balanced Scorecard
9/7/2011
PerIormance Diagnosis
9/7/2011
Types oI Appraisal Interviews
%eII and Listen - nondirective %eII and Listen - nondirective
AppraisaI Interview Formats AppraisaI Interview Formats AppraisaI Interview Formats AppraisaI Interview Formats
%eII and SeII - persuasion %eII and SeII - persuasion
ProbIem soIving- focusing the
interview on probIem resoIution
and empIoyee deveIopment
ProbIem soIving- focusing the
interview on probIem resoIution
and empIoyee deveIopment
9/7/2011
Ìnsufficient
reward for
performance
Ìnsufficient
reward for
performance
Manager
lacks
information
Manager
lacks
information
Lack of
appraisal
skills
Lack of
appraisal
skills
Manager not
taking
appraisal
seriously
Manager not
taking
appraisal
seriously
Manager not
prepared
Manager not
prepared
Manager not
being
honest or
sincere
Manager not
being
honest or
sincere
Employee
not receiving
ongoing
feedback
Employee
not receiving
ongoing
feedback
Ìneffective
discussion
of employee
development
Ìneffective
discussion
of employee
development
Unclear
language
Unclear
language
Performance
appraisals fail
because.
Performance
appraisals fail
because.
Reasons Ior Iailure oI PerIormance
Appraisal
9/7/2011
Rater Errors
· Error of Central Tendency
A rating error in which all employees are rated about
average.
· Leniency or Strictness Error
A rating error in which the appraiser tends to give all
employees either unusually high or unusually low
ratings.
· Recency Error
A rating error in which appraisal is based largely on an
employee`s most recent behavior rather than on
behavior throughout the appraisal period.
9/7/2011
Rater Errors
· Contrast Error
A rating error in which an employee`s evaluation is
biased either upward or downward because oI
comparison with another employee iust previously
evaluated.
· Similar-to-Me Error
An error in which an appraiser inIlates the evaluation
oI an employee because oI a mutual personal
connection.
9/7/2011
Suggestions Ior improving Appraisals
· Measure perIormance
· Multiple raters
· Trained appraisers
· Post appraisal interview
· Continuous Ieedback
· Rating the rater
Suggestions
· Measure perIormance
Multiple raters
Trained appraisers
Post appraisal interview
Continuous Ieedback
Rating the rater
9/7/2011
Invnì ,ov

Sign up to vote on this title
UsefulNot useful