You are on page 1of 33

Writa Bhattacharjee

y Understanding Performance Appraisal System y Types of Performance Appraisal Systems y Potential Appraisal

Section 1

y What gets measured, gets performed. y Part of the Performance Management Process y Evaluating an employee s current or past performance

relative to his or her performance standards and also against that of other employees. y Requirements of effective Appraisal systems:
y y y y y

Relevance Sensitivity Reliability Acceptability Practicality







y Setting Goals:
y SMART goals y Challenging but doable goals y Encourage participation

y Appraisal Interview
y Types: Satisfactory-Promotable, Satisfactory-Not

Promotable, Unsatisfactory-Correctable, UnsatisfactoryUncorrectable y How to conduct- Objective, Impersonal, Encourage to talk, Direct y Handling Defensive subordinates y Criticizing a subordinate

y What?- Factors Appraised y Who?- Who appraises y Why?- Objectives of PA system y When?- Frequency y How?- Methods

y Generic dimensions y Job s actual duties y Competencies/ behaviour

y Immediate supervisor y Peers y Rating committees y Self-ratings y Subordinates y Customers

y Role in PMS y Satisfactory performance level y Developmental plan y Career planning y Raise and promotion y Validation for hiring practices y Diagnose organizational problems

y Formal appraisal- traditionally- once or twice a year y Far too infrequent y Formal plu7s regular informal conversations y New employees- more frequent- confirmation

y Unclear standards y Halo Error y Contrast Error y Recency Error y Central Tndency y Leniency/strictness y Bias

Section 2

Traditional Methods
y Ranking y Paired comparison y Grading y Graphic or linear rating y y y y

Modern Methods
y Assessment Centre y BARS y MBO y 360 degree

scales Forced Distribution Method Checklist system Free form essay method Critical Incidents

y Each employee is compared on traits with every other y y y y

employee in pairs. Results for each employee are tallied and this yields the rank order for the entire group No. of comparisons given by [N(N-1)]/2, where N is the number of employees. Advantages-? Disadvantages-?

y Ranking employees from best to worst on a trait or y y y y y

traits or as the whole person Either Straight or Alternate Straight- From Best employee downwards to worst Alternate- Best employee, then worst, then secondbest, etc. Advantages-? Disadvantages-?

y Rater considers certain features or traits and marks

them according to a scale. y Attributes are established and carefully defined on a scale, with attached grades. y Advantages-? y Disadvantages-?

y Traits are listed with a range of performance values for

each trait, with numerical values assigned to each performance level. y Assigned values are then totalled. y Advantages-? y Disadvantages-?

y Similar to Grading y Place predetermined percentages of ratees into

performance categories y Advantages-? y Disadvantages-?

y Rater does not evaluate ratee- personnel department y y y y y

evaluates- rater provides report Yes/No options for behaviours displayed Values of questions- equal or weighted Use of Likert scale or descriptive options Advantages-? Disadvantages-?

y Free-form, open ended appraisal y Descriptive, qualitative y Detailed feedback y Advantages-? y Disadvantages-?

y Supervisor keeps a log of positive and negative

examples- critical incidents y Critical incidents basis of appraisal y Advantages-? y Disadvantages-?

y Not a place y Battery of tests to evaluate competencies y Multiple assessors, multiple tests y Advantages-? y Disadvantages-?

y Behaviourally Anchored Rating Scales y Combines Critical Inicdent and Graphic Rating Scales

methods y Scales with aligned critical incidents for distinct performance dimensions y Advantgaes-? y Disadvantages-?

y Setting specific, measurable goals with each employee

and then periodically reviewing the progress made y Measure of each employee s contribution to organization s performance y Advantages-? y Disadvantages-?

y All round collection of performance data y Appraisal by superiors, subordinates, peers and

customers y Compiled result y Advantages-? y Disadvantages-?

Section 3

y Potential is different from performance y Promote for potential y Problems of promoting for performance y Future organizational needs y Potential- latent qualities that manifest in concrete

terms while performing various jobs/tasks

y Assess capacity to work in future without being

overstretched y Assist organization in succession planning

y Role Descriptions y Qualities needed to perform the roles y Rating mechanisms:

y y y y

Rating by others Tests Games Records

y Organizing the system:

y Merit vs. seniority weightage y Weightage to managerial skills- T,I,C y Mechanisms for assessing on indicators, with reliability

y Feedback

y y y y

y y y y y

Analytical power Creative imagination Sense of reality Capability of taking holistic view from a detached position Effective leadership Conceptual skills Technical skills Commercial skills Communication skills

y Planning and organizing y y y y y y y y

ability Willingness to take additional responsibility Initiative Result orientation Teamwork and team building Subordinate development Negotiation skills Problem solving and decision making Process orientation

y Managing Human Resources- Wayne F. Cascio y Human Resource Management- Gary Dessler y A Textbook of Human Resource Management-


B. Mamoria & S. V. Gankar y Human Resource Management- Biswajeet Pattanayak y