PERFORMANCE APPRAISAL

Nastiya Mukherjee

What is Performance Appraisal

A collaborative process between an employee and his superior to plan the performance and have periodic check on ;
How the job is going How the employee is performing How the employee can develop What the superior can do to make it happen

WHY conduct a Performance Appraisal

Good human resources practice Facilitate communication between

supervisors and employees

Provide a framework of goals and

standards from which to measure

performance

WHY conduct a Performance Appraisal

Act as a forum for individual career development issues Develop action and training plans to address performance problems Serve as a tool to determine salary increases

WHEN to conduct a Performance Appraisal

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

WHO are involved in Performance Appraisal

The Appraisee The Appraiser HR Department

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

Common Problems Associated with Conducting the Appraisal

3. Central Tendency rate everyone as average 4. Recency Effect focusing on recent performance instead of entire year

5. Just Like Me being more favorable to people who are like you

Common Problems Associated with Conducting the Appraisal

7. Avoidance Rating giving a positive evaluation on marginal performance to avoid confrontation and controversy with employee or to avoid hurt feelings 8. Favoritism evaluating friends or those who dont make waves, etc. more favorably than others

Performance Appraisal Methods

Traditional methods 1. 2. 3. 4. 5. 6. Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Straight Ranking

Performance Appraisal Methods

Modern methods 1. Behaviorally anchored rating scale 2. MBO 3. 360 performance appraisal

Critical Incident method

The critical incidents or events represent the outstanding or poor behavior of employees on the job .The manager logs on each employee whereby he periodically records critical incidents Of the employees behavior. These recorded incidents are used in the evaluation employees.

Checklist method
Simple checklist method: Is employee regular Is employee respected by subordinate Y/N Is employee helpful
Does he follow instruction Does he keep the equipment in order

Y/N

Y/N
Y/N Y/N

Graphic Rating Scale

Employee name_________ Deptt_______ Raters name ___________ Date________ -----------------------------------------------------------------------Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ Dependability Initiative Overall output Attendance Attitude Cooperation Total score

BARS( behaviorally Anchored rating scale)

Step 1. Step 2. Step 3. Step 4. Step 5.

Identify critical incidents Select performance dimension Retranslate the incidents Assign scales to incidents Develop final instrument

MBO Process
Set organizational goals Defining performance target Performance review feedback

Recent Developments

360-degree appraisal
--Combination of perspectives e.g. peer, self, supervisor, client

Balanced scorecard
Integrates organizational performance measures such as financial, customer satisfaction, internal processes, learning

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

What is 360 DF?

Feedback collected from Using a specially designed tool Anonymously

Internal Customers

Boss

Peers

Self

External Customers

Team Members