PRESENTATION ON PERFORMANCE APPRAISAL

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PRESENTATION ON PERFORMANCE APPRAISAL
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What is Performance Appraisal

• PA is the method of evaluating the behaviour of
  the employees in the workplace, normally
  including both quantitative and qualitative
  aspect of the job.
• How the employee is performing
• How the employee can develop
• What the superior can do to make it happen
• How the job is going

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WHY conduct a Performance Appraisal

• Provide information about the performance ranks.
  Decision regarding salary revision, confirmation,
  promotion and demotions.
• Provide feedback about level of achievement and
  behaviour of the subordinate.
• Provide information which helps to counsel the
  employees.
• Provide information to diagnose the deficiency of
  the employees.
• Provide training and development needs of the
  employees.

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WHEN to conduct a Performance Appraisal

• The performance review must occur atleast once in
  a year. Some companies review twice in a year.
• However, as a part of Performance Management, the
  performance review is a continuing, ongoing
  activity.

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OBJECTIVES of Performance Appraisal

• Establish a more effective two way communication
• Set performance objectives
• Help improve current performance
• Assess past performance
• Provide feedback on performance
• Identify training development needs
• Allocate rewards
• Identify staff with promotional possibilities
• Assist in career planning decisions

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WHO are involved in Performance Appraisal

• The Appraisee
• The Appraiser
• HR Department

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Content of Performance Management

• Regularity of the Attendance.
• Ability to work individually or in group.
• Leadership skills.
• Initiative, Technical skills.
• Ability to grasp new things.
• Area of interest.
• Attitude.
• Job Knowledge.

• Judgmental Skills.
• Area of improvement.
• Past Achievement.
• Honesty and sincerity.
• Innovativeness
• Cost Time consciousness
• Communication

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Traditional Methods of Performance Appraisal.

• Graphic Rating Scales This is the oldest and
  most widely method used for performance
  appraisal. The scales may specify five points, so
  a factor such as job knowledge might be rated 1
  (poorly informed about work duties) to 5 (has
  complete mastery of all phases of the job).

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Table Typical Graphic Rating Scale Employee
Name................... Job title
................. Department .....................
.... Rate ............... Data ...................
...............
Quantity of work Volume of work under normal working conditions Unsatisfactory (1) Fair (2) Satisfactory (3) Good (4) Out Standing (5)
Quality of work Neatness, thoroughness and accuracy of work Knowledge of job          
A clear understanding of the factors connected with the job          
Attitude Exhibits enthusiasm and cooperativeness on the job          
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Ranking Method

• This is one of the oldest and simplest techniques
  of performance appraisal. In this method, the
  appraiser ranks the employees from the best to
  the poorest on the basis of their overall
  performance. It is quite useful for a comparative
  evaluation.

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Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average 5 Can expect to keep in touch with the customers throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor 1 Can expect to take extended coffee breaks and roam around purposelessly.
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Paired Comparison Method

• A better technique of comparison than the
  straight ranking method, this method compares
  each employee with all others in the group, one
  at a time. After all the comparisons on the basis
  of the overall comparisons, the employees are
  given the final rankings.

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Forced distribution method

• Forced ranking is a method of performance
  appraisal to rank employee but in order of forced
  distribution.

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Checklist Method

• Another simple type of individual evaluation
  method is the checklist.

Is the employee really interested in the task
assigned? Yes/No Is he respected by his
colleagues (co-workers) Yes/No Does he give
respect to his superiors? Yes/No Does he follow
instructions properly? Yes/No Does he make
mistakes frequently? Yes/No
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Critical Incidence Method

• Under this method, the manager prepares lists of
  statements of very effective and ineffective
  behavior of an employee. These critical incidents
  or events represent the outstanding or poor
  behavior of employees on the job .
• July 20 Mr. Paul patiently attended to the
  major customers complaint. He is polite, prompt,
  enthusiastic in solving the customers problem.
•   On the other hand the bad critical incident
  may appear as under
• September 28 Mr. Paul stayed 45 minutes over on
  his break during the busiest part of the day. He
  failed to answer the store managers call
  thrice. 

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Essay Method

• This method asked managers / supervisors to
  describe strengths and weaknesses of an
  employees behavior.

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Confidential Report

• It is mostly used in government organizations.
  It is a descriptive report prepared, generally at
  the end of every year, by the employees
  immediate superior. The report highlights the
  strengths and weaknesses of the subordinate.

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• Modern Methods

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MBO

• A process whereby the superior and subordinates
  of the organization jointly identify its common
  objectives, define each individuals major areas
  of responsibility.
• Establishment of Goals
• Setting the performance standard
• Actual level of job attainment is compared with
  the goals agreed upon.
• Establishing new goals and new strategies for
  goals not previously attained.

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PSYCHOLOGICAL APPRAISALS

• When psychologists are used for evaluations, they
  asses an individuals potential. The appraisal
  consists of in-depth interviews, psychological
  tests, discussions with supervisors and a review
  of other evaluations.

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Assessment Centre

• This not a technique of performance appraisal by
  itself. In fact, this is a system or organization
  where assessment of several individual is done by
  experts by using various techniques. These
  techniques used role playing, case studies etc.

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360 DEGREE FEEDBACK
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What is 360 DF?
360 Degree Feedback is a multi - rater feedback
system where an individual is assessed by a
number of assessors including his boss, direct
reports, colleagues, internal customers and
external customers
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What is 360 DF?
Using a specially designed tool
Feedback collected from
Anonymously
Boss
Internal Customers
Peers
Self
Team Members
External Customers
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Common Problems Associated with Conducting the
Appraisal

1. Halo/horn effect employees extreme competence
   in one area shines over all others. Conversely,
   employee does poorly in one area and this
   overshadows all areas.
2. Bias own prejudices race, national origin,
   gender, appearance, etc. influence the appraisal
3. Comparison Rating contrasting one employee with
   another

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Common Problems Associated with Conducting the
Appraisal

• Central Tendency rate everyone as average
• Recency Effect focusing on recent performance
  instead of entire year
• Personal Prejudice If the rater dislikes one
  group or employees, he may rate them at the lower
  end.
• Favoritism evaluating friends or those who
  dont make waves, etc. more favorably than others

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By Pooja Rastogi