perforamce apprisal

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Performance Appraisal

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Performance Appraisal Performance appraisal is the identification, measurement , and management of human performance in the organization The process by which an employee’s contribution to the organization during a specified period is assessed.

Important decisions : 

Important decisions What is the purpose of appraisal? What should the content of performance appraisal forms Who are the appraisers? What kind of ratings are used? What kind of activities involved in the performance appraisal systems What is the frequency of performance appraisal

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Primary Purposes of Performance Evaluations Compensation Performance Feedback Training Promotion Human Resource Planning Retention/Discharge Research 85.6 65.1 64.3 45.3 43.1 30.3 17.2 Use of Data Percent* *Based on responses from 600 organizations

Content of PA form : 

Content of PA form The content should be based on two criteria ; What is the desired behavioral patterns Is development oriented? Control oriented? Or both

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Who Should Evaluate Performance? Immediate superiors Peer groups Self-evaluation Immediate subordinates Group of supervisors 360-Degree evaluations

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Absolute Measures Graphic rating scales Narrative/Essay Behaviourally anchored rating scales (BARS) Behavioural Observation Scales (BOS) Management by objectives (MBO) Comparative Measures Ranking method Paired comparison Forced distribution Appraisal Methods

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Human Resource Management – Performance Evaluation Methods Written Essays: Describes employee performance in terms of: -- Strengths --Weaknesses -- Past Performance -- Potential -- Suggestions for Improvement Critical Incidents: Focuses on employee behaviors that are key to accomplishing the assigned job effectively and efficiently..or otherwise! -- Budget objectives -- Customer satisfaction Graphic Rating Scales: Set of performance factors are listed including: -- Quantity of Work -- Cooperation -- Quality of Work -- Loyalty -- Depth of Knowledge -- Attendance -- Honesty -- Initiative

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Sample Trait Scales Fig. 7-4 Rate each worker using the scales below. Decisiveness: 1 2 3 4 5 6 7 Very low Moderate Very high Reliability: 1 2 3 4 5 6 7 Very low Moderate Very high Energy: 1 2 3 4 5 6 7 Very low Moderate Very high Loyalty: 1 2 3 4 5 6 7 Very low Moderate Very high

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A Paired Comparison Performance Appraisal Rating Form INSTRUCTIONS: Please indicate by placing a X which employee of each pair has performed most effective during the past year. Refer to the duties listed in the job description for animal keeper as a basis for judging performance. _____ Bob Brown _____ Mary Green _____ Bob Brown _____ Jim Smith _____ Bob Brown _____ Allen Jones _____ Mary Green _____ Jim Smith _____ Mary Green _____ Allen Jones _____ Jim Smith _____ Allen Jones X X X X X X

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Human Resource Management – Performance Evaluation Methods Behaviorally Anchored Rating Scales: Combines major elements from the critical incident and graphic rating scale approaches. Evaluator rates employees but the points assigned are examples of actual behavior on the job, not general descriptions or traits. Definite, observable, and measurable job behavior is described (behavioral dimensions) using such key words as anticipates, executes, carries out orders, handles emergency situations. e.g. Harvey anticipates customer last minute demands and is prepared for their requests. e.g. Mary executes her program manager financial responsibilities efficiently and effectively; on budget consistently.

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Behaviorally Anchored Rating Scales (BARS) Credit reports are always timely and without error Provides services desired, but not requested by customer Develops loan documentation accurately Prepares credit reports without having to be told Fails to help other banks participating in loans Customers complain about poor quality loan interview process Transacting Loans 6 5 4 3 2 1

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A Behavioral Observation Scale (BOS) Rating Form INSTRUCTIONS: For each description of work behavior below, circle the number that best describes how frequently the employee engages in that behavior. 1. The incumbent removes manure the unconsumed food from the animal enclosures. 1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often 2. The incumbent haphazardly measures the feed items when placing them in the animal enclosures. 1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often 3. The incumbent leaves refuse dropped by visitors on and around the public walkways. 1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often 4. The incumbent skillfully identifies instances of abnormal behavior among the animals, which represent signs of illness. 1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often

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Human Resource Management – Performance Evaluation Methods Multiperson Comparisons: Involves evaluating one employee’s performance against the performance of 1 (or more) others. Comparisons used include: Group Order Ranking: Employees are placed in a particular classification; e.g. top 5%, middle 40%, bottom 10% Individual Ranking: Employees are rank-ordered with someone being at the top and someone at the bottom (forced choice); e.g. #1-Mary; #2-Sandra; #3-Frank; #4-Harvey Paired Comparisons: Employee is compared with all other employees and rated as “superior” or “weaker.” Then, a summary ranking is created based on the number of “superior” scores he or she received when compared to the others.

Performance feed back : 

Performance feed back Make feed back descriptive. Focus on the behavior and not on the person Specific and data based Suggestive statement may help the individual Make the feedback as much continuous as possible

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Rater Biases The halo effect The error of central tendency The leniency and strictness biases Personal prejudice The recency effect

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Improving Evaluations Emphasize behaviors Document performance Use multiple evaluators Evaluate selectively Train evaluators Provide due process

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Appraising thePerformance of Teams Tie results to organizational goals Begin with the team’s customers Measure team performance Recognize individual efforts Use team-defined measures

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The Benefits of Performance Appraisal Employer Perspective 1. Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance. 2. Documentation of performance appraisal and feedback may be needed for legal defense. 3. Appraisal provides a rational basis for constructing a bonus or merit system. 4. Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. 5. Providing individual feedback is part of the performance management process. 6. Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of appraisal.

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The Benefits of Performance Appraisal (cont.) Employee Perspective 1. Performance feedback is needed and desired. 2. Improvement in performance requires assessment. 3. Fairness requires that differences in performance levels across workers be measured and have an effect on outcomes. 4. Assessment and recognition of performance levels can motivate workers to improve their performance.