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Performance Management vs. Appraisal Guide

This document discusses performance management and development systems. It outlines the differences between performance management, which is continuous with feedback, and performance appraisal, which typically occurs once a year without feedback. The objectives of a performance management system include human resource planning, recruitment, personnel decisions, career development, feedback and motivation, training, compensation, and employee relations. Effective systems separate evaluation from development, use job-related criteria and standards, obtain appropriate performance data, provide ongoing feedback, and train appraisers to reduce biases. New approaches include team/group appraisals, assessment centers, and competency-based systems.

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23 views16 pages

Performance Management vs. Appraisal Guide

This document discusses performance management and development systems. It outlines the differences between performance management, which is continuous with feedback, and performance appraisal, which typically occurs once a year without feedback. The objectives of a performance management system include human resource planning, recruitment, personnel decisions, career development, feedback and motivation, training, compensation, and employee relations. Effective systems separate evaluation from development, use job-related criteria and standards, obtain appropriate performance data, provide ongoing feedback, and train appraisers to reduce biases. New approaches include team/group appraisals, assessment centers, and competency-based systems.

Uploaded by

keval soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Performance Management and

Development Systems
Performance Management Vs
Performance Appraisal
 PMS continuous
 Consist of counseling, monitoring, evaluation
and feedback
 Performance Appraisal : once a year, no proper
feedback
Objectives of PMS
 HRP
 Recruitment & Selection
 Personnel Decisions
 Career Planning and development
 Feedback, motivation and development
 Training and Development
 Compensation and Reward
 Internal employee relations
Classification of objective
 Evaluative
› Validating selection
› Bonuses and Incentives
› Promotions
› Salary increases
 Development
› Feedback
› Motivation
› T&D
› Career Planning
› HRP
Developing PMS
 Identifying dimensions of job performance
 Defining and communicating performance
standards
 Determining who will conduct the appraisal
 Choosing appropriate methods of performance
appraisal
 Communicating appraisals to employees
Types of evaluation criteria
 Trait based criteria
 Behavior based criteria
 Results based criteria
Sources of Appraisal information
 Appraisal by Manager/Supervisor
 Self Appraisal
 Subordinate Appraisal
 Peer Appraisal
 Team Appraisal
 Customer Appraisal
Methods of Appraisal
 Trait Based
› Graphic Rating
› Forced Choice
› Essay Method
› Ranking
› Forced Distribution
 Behavior Based
› Critical Incident
› Checklist
› Behaviourally Anchored rating Scales
 Results-based
› Productivity measures
› MBO
Communication of Appraisals
 One way
 2 way
 Mutual Problem Solving
Problems in PMS
 Ambivalence towards performance evaluation on
the part of appraiser and appraise
 Problems in design and implementation of
performance management system
 Rater biases and errors
Rater Biases
 halo effect,
 error of central tendency,
 leniency or strictness,
 personal prejudice,
 recency effect,
 perceptual set,
 Influence of previous ratings
Effective PMS
 Separate evaluation and development appraisals
 Use job-related performance criteria
 Specifying performance standards
 Use appropriate performance data
 Improving supervisor- subordinate relationship
 Provide ongoing feedback
 Upward appraisals
 Use multiple raters
 Train Appraisers
 Appeal Process
Developments in PMS
 Team or work group appraisals
 Assessment Centres
 Multisource Feedback
 Competency based PMS
Approaches to measure managerial
performance
 Job focused
 Person focused
 Role focused
 Hybrid Approach
› Clear description of the work tasks managers should
be competent in micro competencies
› Factors enabling them to complete those tasks
effectively (macro competencies)
› Specific role-focused criteria for performance
excellence.
Technology and PMS
 Computer Performance Monitoring
 Online Evaluation and Appraisal Software
Strategic PMS
 Inception Stage:
› Employee: innovative, long-term goals and open to risks
› Knowledge and skill easy to develop should be measured
› Qualitative performance appraisal
 Growth Stage:
› Employees: flexible to change, look for short term survival, team work
› Focus on employee competencies convert to actual performance
› Quantitative performance appraisal
 Maturity Stage:
› Employee: ability to yield results, take tasks that have low risks, highly
repetitive behavior
› Focus on behavior is converted into performance
› Qualitative performance appraisal

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