Professional Documents
Culture Documents
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What is Performance
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Determinants of Performance
Effort
Abilities
Role (task) perception
Job performance is the net effect of an
employee’s effort as modified by abilities
and role (or task) perceptions.
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Determinants of Performance
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Determinants of Performance
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Determinants of Performance
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Responsibilities of the Human Resource
Department
in Performance Management
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Responsibilities of the Human Resource
Department
in Performance Management
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How should an effective
performance management system?
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How should an effective
performance management system?
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PERFORMANCE
APPRAISAL
Process of evaluating and communicating to an
employee how he or she is performing the job
and establishing a plan for improvement.
Positive reinforcement
Future improvements
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USE OF PERFORMANCE
APPRAISAL
One of the most common uses of performance
appraisals is for making administrative decisions:
promotions
firings
layoffs
merit pay increases
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USE OF PERFORMANCE
APPRAISAL
Performance appraisal information can also
provide needed input for determining both
individual and organizational training and
development needs.
For example, this information can be used to identify
an individual employee’s strengths and weaknesses.
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USE OF PERFORMANCE
APPRAISAL
Another important use of performance appraisals
is to encourage performance improvement.
In this regard, performance appraisals are used as a
means of communicating to employees how they
are doing and suggesting needed changes in
behavior, attitude, skills, or knowledge.
Clarifies expectations
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USE OF PERFORMANCE
APPRAISAL
Finally, two other important uses of information
generated through performance appraisals are
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PERFORMANCE
APPRAISAL METHODS
Whatever method of performance appraisal an
organization uses, it must be job related.
Therefore, prior to selecting a performance
appraisal method, an organization must conduct
job analyses and develop job descriptions.
After this, one or more of the following
performance appraisal methods can be used.
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PERFORMANCE
APPRAISAL METHODS
Each method of performance appraisal has its
strengths and weaknesses may be suitable for one
organization and non-suitable for another one.
As such, there is no single appraisal method accepted
and used by all organizations to measure their
employees’ performance.
All the methods of appraisal devised so far have been
classified differently by different authors.
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PERFORMANCE
APPRAISAL METHODS
Traditional Modern
Paired Comparison Method 360 Degree Method
Critical Incident Method Management by Objective
Checklist Method Assessment Centers
Forced Distribution Method Behaviorally Anchored Rating Scales
Graphic Scale Method
Confidential Report
Field Review Technique
Essay Method
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Traditional Methods
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Traditional Methods
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Traditional Methods
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Traditional Methods
Critical Incident Method
Critical incident method or critical incident technique in which
analyses the behavior of employee in certain events in which
either he performed very well and the ones in which he could
have done better.
In Critical incident method, the manager of the employee gives
all the details of the incident. This method is quite subjective in
nature as compared to other methods which may be very
objective and would require just ratings out of 5/10 etc.
On a particular day one Salesperson stayed 60 minutes beyond his break during the busiest part of the
day. Whereas another salesperson fails to answer store manager’s call thrice.
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Traditional Methods
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Traditional Methods
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Traditional Methods
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Traditional Methods
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Traditional Methods
Confidential Report
It is mostly used in government organization.
It is a detailed report prepared by the employee’s immediate
boss at the end of every year.
This report highlights the strengths and weaknesses of the
subordinate.
In this report the impression of the subordinate in superiors
mind is recorded.
It does not offer any feedback to the employee.
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Traditional Methods
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Traditional Methods
Essay Method
In the essay method approach, the appraiser prepares a written
statement about the employee being appraised.
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Modern Methods
Management by objectives (MBO)
Management by objectives (MBO) is the appraisal
method where managers and employees together
identify, plan, organize, and communicate objectives to
focus on during a specific appraisal period.
After setting clear goals, managers and subordinates
periodically discuss the progress made to control and
debate on the feasibility of achieving those set
objectives.
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Modern Methods
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Modern Methods
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Modern Methods
360-Degree Feedback
360-degree feedback is a multidimensional
performance appraisal method that evaluates
an employee using feedback collected from the
employee’s circle of influence namely
managers, peers, customers, and direct reports.
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Modern Methods
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Modern Methods
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Modern Methods
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POTENTIAL ERRORS IN
PERFORMANCE APPRAISALS
Several common errors have been identified in
performance appraisals.
Leniency is the grouping of ratings at the positive
end instead of spreading them throughout the
performance scale.
The central tendency occurs when appraisal
statistics indicate that most employees are appraised
as being near the middle of the performance scale.
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POTENTIAL ERRORS IN
PERFORMANCE APPRAISALS
Recency occurs when evaluations are based on work
performed most recently—generally work performed one
to two months prior to evaluation.
Another common error in performance appraisals is the
halo effect. This occurs when a rater allows a single
prominent characteristic of an employee to infl uence his
or her judgment on each separate item in the
performance appraisal. This often results in the employee
receiving approximately the same rating on every item.
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POTENTIAL ERRORS IN
PERFORMANCE APPRAISALS
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OVERCOMING ERRORS IN
PERFORMANCE APPRAISALS
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OVERCOMING ERRORS IN
PERFORMANCE APPRAISALS
For example, one could argue that the forced-
distribution method of performance appraisal
attempts to overcome the errors of leniency and
central tendency. In addition, behaviorally anchored
rating scales are designed to reduce halo, leniency,
and central tendency errors because they provide
managers with specifi c examples of performance
against which to evaluate an employee.
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