PERFORMANCE APPRAISAL

Process by which an organization measures and evaluates an individual employees behavior and accomplishments for a defined period of employment

Reasons for Performance Appraisals

To effectively evaluate the work done

by an employee To set a standard that can be used to judge future performance Help a manager motivate employees and improve their performance Strengthen communication

Reasons for performance appraisal (cont.)

Most people want to know how they

are doing and this is a good way for them to learn Let the employee know what is expected of them Assist the employee in setting career goals Help reward employees fairly

Reasons for Performance Appraisals (cont.)

Provide legal defensibility To diagnose the strengths and

weaknesses of the individuals so as to identify the training and development needs of the future.

What to measure?
Technical Attributes
Knowledge and Application Achievement of targets quantifiable results Other
Technical Attributes (Technical competence) Soft Skills (Social Skills)

Soft Skills

Leadership and goal clarity Relationship Management Communication

Personal Traits
Integrity, Sincerity Ethical standing

Honesty, Morality,
Personal Traits (Emotional Quotient)

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REQUIREMENTS FOR ANY PERFORMANCE APPRAISAL TO BE SUCCESSFUL

The employer and the employee must have a clear idea

of where the company is going Employees understand how their job contributes to goals of the company Employees and their supervisor agree on what is expected from the employee.

Requirements (cont.)
Employees are given the needed training to ensure

they have the skills to perform their work Supervisors give feedback to employees about their performance on a regular basis not just at formal appraisal times Supervisors are trained on how to do performance appraisal

FUNDAMENTAL RULE OF PERFORMANCE APPRAISALS

judge the work, not the person

Types of Performance Appraisal Systems

* Rating Scales
* Paired Comparison Method * Critical Incident Technique * Behavioral Checklists and Scales * Management by Objective * 360-Degree Feedback or Multirater

Assessment

RATING SCALES

In this system the employee is given a numerical rating. This rating can be given on a graphic rating scale with the supervisor simply making a mark on the scale that rates the employee.

Under this method the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time.

PAIRED COMPARISON METHOD

CRITICAL INCIDENT TECHNIQUE

Employees performance in specific situations are evaluated and a number of these incidents are used in the overall rating of the employee.

BEHAVIOURAL CHECKLISTS AND SCALES

The supervisor uses a list of descriptive statements and marks the statement that most closely describes the employee. Statements are for specifically defined aspects of a job.

MANAGEMENT BY OBJECTIVE

The employee is appraised according to how well they have reached agreed to goals. Employee and supervisor must agree on measurable objectives and how they will be met.

360-DEGREE OR MULTIRATER-REVIEWFEEDBACK Employees are rated by peers, team members, subordinates, and sometimes customers along with supervisors. A study by William M. Mercer reports that more than 40% of companies will use this method by the end of 1997.

Appropriate weightages
Superiors

Peers

Self Appraisal

Citizens-Clients

Subordinates

Weightages depend on the Department and nature of work

From subordinates (10% to 20%) From peer group (only when in a functional peer

network; not for supervisory level officers functionally not connected) (0% to 10%) From customers/clients (Front-end work: 20% to 30%; Back-end work : 0% to 10%) From superior officers (50% to 70%)

Problems of Performance Appraisal

Rating Biases : Halo Effect : It is the tendency of the raters to depend excessively on the rating of one trait or behavioural consideration in rating all other traits. The Error of Central Tendency : Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. The Leniency and Strictness: The leniency bias crops when some raters have a tendency to be liberal in their rating buy assigning higher rates consistently. The Recency Effect : The raters generally remember the recent actions of the employee at the time of rating and rate them on the basis of these recent actions-favourable or unfavourablerather than on the whole activities.

Problems of Performance Appraisal

Failure of the superiors in conducting performance

appraisal and post performance appraisal interviews. Most part of the appraisal is based on subjectivity. Less reliability and validity of the performance appraisal techniques. Absence of inter-rater reliability.

Problems of Performance Appraisal that tact of offering suggestions Supervisors lack

constructively to subordinates. Supervisors were often confused due to too many objectives of performance appraisal. Some superiors completed appraisal reports within a few minutes.