Assessing and Analysing Performance

8/13/2019 Assessing and Analysing Performance

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Analyzing, Assessing & Review of

Performance



Performance Planning

Pre-requisites

Performance Planning

Performance Execution

Performance Review

Performance Assessment

Performance Renewal & Recontracting



Defining Performance

Performance Mngt System includes measures of both:Behaviours and Results.

2 characteristics of behaviour are labelled as

performance:− Evaluative: behaviour can be positive

negative or neutral for individual !organisational effectiveness

− Multidimensional: many "ind of behavioursthat have the capacity to advance theorganisational goals.



E#ample

$ontribution to effectiveness of others in the%or" unit

Set of behaviours

− &or"s %ith others %ithin and outside the unitin a manner that improve their effectiveness

− Shares information and resources

− Develop effective %or" relationship− Build consensus

− $onstructively manages conflict



'll behaviours are not measurable and hencePM system include measures of result orconse(uences that %e infer are direct result ofemployee behaviour.

Sales volume generated reflects that employeeis engaged in right "ind of behaviour by thesupervisor.



Determinants of Performance &hat causes some people to perform better than others)

&hy some people perform at a certain level)− Performance = Declarative knowledge X Procedural

Knowledge X Motivation

Declarative *no%ledge: information about facts principles goals

things about given tas" re(uirements. Procedural *no%ledge: combination of %hat to do and ho% to do it

include cognitive perceptual motor and interpersonal s"ills.

Motivation: include + types of behaviour

− $hoice to perform ,e#pend the efforts-- / %ill %or" today01

− evel of efforts ,/ %ill put my best efforts at %or" v3s %illnot try hard1

−

Persistence of efforts ,/ %ill give-up after little %hile v3s /%ill persist no matter %hat01.



Performance Dimensions

4as" Performance

$onte#tual Performance

4as" Perfomance− Part of 5ob description

− 6aries across the 5ob

− i"ely to be role prescribed

− 'ntecedents: abilities s"ills



$onte#tual Performance: defined by behaviours that contribute to theorganisational effectivness by providing a good enviornment in%hich tas" performance can occur

/nclude behaviours li"e:

− Punctuality rare absenteism

− 6olunteering for tas"s that are not part of the 5ob.

−

7elping and cooperating %ith others. $onte#tual performance

− 8airly similar across the 5obs

− 9ot li"ely to be role prescribed

− 'ntecedent: personality

Significant impact on customer satisfaction:

− employee put an e#tra effort to satisfy customers.

− utstanding customer service

PM system to includeboth

Tas & contextual!erformance dimensions



'pproach to measure performance;.4rait 'pproach

2.Behaviour 'pproach

+.Result 'pproach

4rait 'pproach− Emphasis on individual ignores specific situation

behaviour and result.

− Raters rate employee traits li"e intelligence

conscientiousness

− Successful %hen ma5or restructuring is done inorgn<n employee allocation can be done using thisapproach



Behaviour approach Emphasis is on behaviour %hile assessing

performance. Process oriented approach defines ho%

employee does the %or".

'ppropriate %hen

− in" bet%een behaviour and result is notobvious

− utcome occurs in distant future

− Poor results are due to causes beyond performer=s control



Result 'pproach 8ocus on result and do not consider traits or behaviour of

individual. Bottom line approach focuses on result3%hat employee

produces at the end.

$ost effective

Data resuting is logical

Most appropriate to use %hen

−

&or"ers are s"illed in needed behaviour − Behaviour and results are related.

− Results sho% consistent improvement over time

− 4here are many %ays of doing the 5ob right.



4ypes of Performance to Measure Results produced by the employee

− E#ample for a salesperson: 'mount of sales

,>1 in the past month

Behaviors of the employee− E#ample for a salesperson: 9umber of sales

calls in the past month

Traits of the employee− E#ample for a salesperson: 8riendliness

"#



4ypes of Performance to Measure

Results-based results-oriented!" measure theresults produced by the employee− E#amples for a retail store manager ,e#amples of

some results for %hich the store manager hasresponsibility and so should be held accountable1:

Sales of the store Profit per s(uare foot /nventory shrin"age $ustomer satisfaction

− Ma"es sense for most 5obs Results matter ,usually1

"$



4ypes of Performance to Measure Results-based ,more1

− $hallenges:

&hich results are relevant may not be obvious for all 5obs

Some results are not under the employee?s control

May foster a results at all costs0 mentality

May interfere %ith team%or" May be difficult to provide effective feedbac"

"%



4ypes of Performance to Measure Behavior-based behavior-oriented!" measure the employee?s

behaviors

− E#amples for a retail store manager: @ood attendance

$ompletes management reports correctly ! on time

Monitors customers and employees for theft

$oaches employees to %elcome customers to the store ! offer

assistance %ithin + minutes and to than" customers as they leave

$onducts regular sessions %ith employees to develop team%or"

− Ma"es sense for many 5obs Ase it %here how the employee produces results matters

"



4ypes of Performance to Measure Behavior-based ,more1

− 'dvantage: Ma"es it easier to provide effective performancefeedbac" to employees

E#amples for a retail store manager:− 8eedbac" %ith results-oriented performance appraisal: ou

didn?t achieve your sales goal.0 ,Measured by sales reports1

− 8eedbac" %ith behavior-oriented performance appraisal: ouare allo%ing your employees to %ait too long before offeringhelp to customers.0 ,Measured by observations of a secret

shopper1− $hallenges:

Difficult to capture the full range of relevant behaviors

"'



4ypes of Performance to Measure Trait-based trait-oriented!" measure the employee?s personal

characteristics− E#amples for a retail store manager:

'bility to ma"e decisions oyalty to the company $ommunication s"ills evel of initiative

− 4his is usually a bad idea for several reasons: Measurements of traits are more li"ely to be sub5ect to biases ,racism

ageism etc.1 7ard to use traits to provide effective feedbac"

"(



Methods of 'ppraisal Ran"ing methods

− Simple Ran" rder

− Paired $omparison

− 8orced Distribution Rating methods

− @raphic Rating Scale

−

Behaviourally 'chored Rating Scale− $ritical /ncident 4echni(ue

− 'ssessment $entres



Ranking

− Simplest method

−

Employees are rated from e#ceptional to poor on performance criteria

Rating

− /ndicate level of performance or competency

achieved or displayed by an employee

− Scales can be defined

'lphabetically ,a b c1 or numerically

,;2+C1 6erbal definitions li"e e#pectional

performance: e#ceeds e#pectations andconsistently ma"es an outstanding

contribution that significantly e#tends theim act and influence of the role.



Rating

)ive Point *cale+)requency,

*even Point *cale+Amount,

Always All

ften An Extraordinary Amount

)airly ften A great amount of

ccasionally .uite a bit of

/ever Moderate amount of

*ome what

/one

Three Point *cale

Exceedingexpectations

Fulfilling expectations Not fulfilling

expectations



Positive and 9egative definition

− ': utstanding performance in all the respects of the 5ob

− B: Anacceptable constant guidance is re(uired and performance atmany aspects of the 5ob are %ell belo% standards.

Positive definition

− provide positive reinforcement or atleast emphasi<es the need for

improvement at the lo%er end. E#ample:

− 6ery effective: meet all ob5ectives of the 5obe#ceeds re(uired standards and performs

consistently beyond normal e#pectations.− Basic: ' contribution that indicates that there is

significant room for improvement in severaldefinable areas.

− Scale deliberately avoids unacceptable0 rating or its e(uivalent.



Rating

Rating drift: tendency to push rating into highercategories. Raters concentrate on middle rating andavoid discriminating bet%een superior and inferior

performance.

$an be avoided by carefully %ording the level ofdescription to ensure that the middle category is used

appropirately.



Employee apportioned in appro# normal distribution

2:E#ceeding E#pectations

F: Meeting E#pectations

;: 9ot meeting e#pectations

Merits: Easy to e#plain Decisions resulting are clear imit baises

Demerits

Resulting data is a ran" so no actual score difference

bet%een employees is un"no%n. E#-' might score better

than B but the difference is similar bet%een B and $

employees. #ited b$ Microsoft" Peo%le began to think that

their %lacement in one of the bucket was large %art of the

evualtion than the work the$ did& '( love the com%an$ but (hate the #urve)

Ran"ing Method: 8orced-DistributionMethod



Performance 'ppraisal Methods *orced distribution" evaluator must place a fi#ed percentage of employees in each performancecategory

G E#ample:; must be rated H I E#cellent2H must be rated C I 6ery satisfactoryCH must be rated + I Satisfactory;H must be rated 2 I Ansatisfactory

H must be rated ; I 6ery unsatisfactoryG 9ote that you are com%aring one employee to another

G Problem: %hat if the distribution being forced doesn?tfit)

#%



'lternation Ran"ing &hen easier to distinguish a top performer from a %orst

performer. Managers are as"ed to place ran"ing of employees based on

the most valuable to the least valuable. /t %ill be done till allare ran"ed.

Merit

− Simple $ost Effective 4ransparent

Demerit

− 9ot suited for large %or"force



Em!loyees Managers A

Manager 0

Manager 1

Mean Ran

Partha ' ( '

Sushmita 8 7 5 6.6

Tarna $ # " #

*urender % '

Poonam % %2'



Paired $omparison Ran"ing

Ma"e ran"ing precise

Employee is paired %ith and compared to every otheremployee based on certain characteristics

Manager provided t%o employees name and he need tomention %hich he considers better.

'll employees are compared %ith all possiblecombinations

8ormula---- 9,9-;132

9Jno. f employees to be rated if H employees than ;comparisions are re(uired.



▸ Graphic Rating-Scale Method◦

' trait approach to performance appraisal %hereby eachemployee is rated according to a scale of individual

characteristics.− Manager rates each employee by tic"ing relevant point on the

scale %hich best describes employee performance. 'ssigned

values are then totalled.

− 'ssessment is done on (uality and (uantity of %or"

Merit

− Easy to construct understand and use. Demerit

− 7igh degree of sub5ectivity

−

Rating may means different to different people

Rating Methods



raphicRating Scale

with Provision

for Comments



ritical !ncident Method

▸ 'n unusual event that denotes superior or inferior employee

performance in some part of the 5ob. 8ocus on t%o areas: particularly

(uestionable outstanding behaviour and particularly (uestionable

behaviours.

▸ 4he manager "eeps a log or diary for each employee throughout the

appraisal period and notes specific critical incidents related to ho%

%ell they perform.

▸ $ategorises them as positive3satisfactory behaviour and

negative3unsatisfactory behaviour.

▸ Employee=s rating is influenced by the %hich pile of data is taller:

Satisfactory or Ansatisfactory.



$ritical /ncident 4echni(ue

+ student with learning disabilities was e,%eriencing difficult$ in

writing& er %arents wanted a la%to% for her& Tom .ones ordered acom%uter and it was delivered to the student/s teacher& 0o trainingwas %rovide to the child1 her teacher1 her %arents& The la%to% was

never used& (ncident recorded b$ a school %rinci%al regarding %erformance of Tom1 the head of disabilit$ services office!

▸ &eighing the no. of satisfactory behaviours against the unsatisfactorycan lead to erroneous conclusion if one unsatisfactory behaviour cost

the company its best client or line of credit.



ritical !ncident "echni#$e

/ssues

− 4ime consuming

− Difficult to (uantify the impact of incident

− 9o. of negative behaviours can be notedmore than the positive ones.



%ehaviorally Anchored Rating Scale

%ARS'

$onsists of a series of scales one for each dimension of 5ob performanceK typically developed by a committee that includes

both subordinates and managers.

riginally conceived by Smith ! *endall ,;L+1 are graphic-

performance rating scales %ith specific behavioral descriptionsdefining points against each scale ,i.e. NBehavioral anchors?1

%hich represents a dimension factor or %or" function

considered important for performance

Developed thorugh careful collection of observable 5ob behaviours that e#plicitly describe actual behaviour that

e#emplify various level of performance in a 5ob: both superior

and inferior.



B'RS Ase critical incidents as anchors.

@roup of employees generate all important dimensions of a 5ob

'nother group of employees generate critical incidentsmentioning lo% average high s"ills of performance for eachdimension

+rd gp of employees and supervisor ta"es each dimension andaccompanying definition and randomi<ed list of critical incident.4hey match critical incident %ith correct dimension

@roup of 5udges assign a scale value to each incident.



Measuring Oob *no%ledge Oob *no%ledge:amount of 5ob related "no%ledge in all areas of

his3her 5ob that an employee possesses.

Exce!tional Em!loyee consistently dis!lays high level of 3ob nowledge inall areas of his4her 3ob2 ther em!loyees go to this !erson fortrainings2

% Advanced *how high level of 3ob nowledge in most areas of his4her 3ob21onsistently com!letes all normal tass2 *earch for more 3ob

nowledge and may see guidance in some areas2

$ 1om!etent Em!loyee shows an average level of 3ob nowledge in all areasof the 3ob2 May need assistance in the com!letion of the 3ob2

# 5m!rovement/eeded

6oes not consistently meets deadlines or com!lete tassrequired for this 3ob2 6oes not attem!t ot acquie new sills ornowledge to im!rove !erformance2

" Ma3or5m!rovementneeded

Ty!ically !erforms tass incorrectly or not at all2 Em!loyee hasno a!!reciation for im!roving his4her !erformance

( l d f A i S d d )"h 4 h i l



(nowledge of Acco$nting Standards)"heory* 4echnicalfoundation application of "no%ledge on the 5ob ability to

identify problem areas and %eigh theory v3s practice

$ 7igh Point Performance 6is!lays very strong technical foundation8 ableto !roficiently a!!ly nowledge on the 3ob8wilingly researches areas8 able to identify!roblems8 can weigh theory v4s !ractice2

# Mid Point Performance 1an resolve normal accounting issues8 hasadequate technical foundation sills8a!!lication requires some refinement8 has!roblem in weighing theory v4s !ractice8 canidentify ma3or !roblem areas2

" 9ow Point Performance 6is!lay wea accounting nowledge and4ortechnical ability to a!!ly nowledge tosituations4issues on an engagement8 hasdifficulty in identifying the !roblems and4orweighing factors of theory v4s !ractice



%ARS +ample



◦ ' performance appraisal that measures the fre(uency ofobserved behavior ,critical incidents1.

◦ Preferred over B'RS for maintaining ob5ectivity

distinguishing good performers from poor performers

providing feedbac" and identifying training needs.

◦ Developed by atham ! &e#ley ,;LFF1 are summated scales

based on statements about desirable ! undesirable %or"

behavior.

%ehavior .servation Scale %S'



%ehavioral hecklist Method

4he rater chec"s statements on a list that the rater believes arecharacteristic of the employee?s performance or behavior.

Based on desirable or undesirable %or" behaviour

$onduct performance revie%s on time $onducts revie%s as adialogue %ith an employer

'ddresses learning needs of special students efficiently

− Strongly agree r 'l%ays ,H1

− 'gree r @enerally ,C1− Andecided r Sometimes ,+1

− Disagree r Seldom ,21

− Strongly disagree r 9ever ,;1



f i l h d



Performance 'ppraisal Methods

Management B$ 2b3ectives MB2!" evaluateemployee 5ob performance in terms of the

e#tent to %hich the employee achieved each

of his or her goals during a specified period of

time− @oals can be both ob5ective and sub5ective

− E#ample goals ,some of many1 for a retail store manager:

b5ective: Sales goal for year I >2 million Sub5ective: $ustomer satisfaction goal I average rating

of C.H on H-point customer satisfaction rating scale

− $ommonly used for managers and professionals

%"



Performance Management $ycle

Source of figure: 'dapted from 8isher Schoenfeldt ! Sha% ,21 8igure ;.; p. C2;

%#

Development Tool

Administrative Tool

' i l 8



'ppraisal 8orms $ore of any performance mngt system entails:

Basic employee information 'ccountabilities ob5ectives and standard

− Result 'pproach: name and description of eachaccountability ob5ectives agreed upon by manager

and employee e#tent to %hich they are achieved.b5ectives are %eighted in terms of importance%hich leads to calculations of overall performancescore. /n some cases described %ith OD %.r.t. &hy

performance is high3lo%.− $ompetencies and /ndicators: Behaviour 'pproach:

include behavioural competencies to be assessed%ith behavioural indicators.



Ma5or 'chievement and $ontributions: /nclude ma5orachievement3accompalishment of individual being rated during

period. $ould focus on result and behaviour both. Developmental 'chievements:information about the e#tent to

%hich developmental goals are set for revie% and acheived.i"e %or"shop training attended ne% s"ill learned.

Developmental needs plan and goals: %hen form is futureoriented includes information about goals and timetables foremployee development.

Sta"eholder input: i"e $ustomer feedbac" ,people %ho have

/st hand e#perience and affected by employee performance1.

Employee $omments: 7elp in perceived fairness of the system.

Signature

$haracteristics of 'ppraisal forms



pp 9o universally correct format.

8e% may emphasi<e on competency and ignore results ,for

behaviour approach1 or vice-versa ,for result approach1. $anfocus on development and ignore behaviour3result ,used fordevelopmental purposes1.

/eat$res*

Simplicity: easy to understand use administer (uic" tocomplete concise.

Relevancy: /nformation on tas" and 5ob responsibility.

Descriptiveness: Rater to provide evidence for performanceregardless of performance level. Sufficiently descriptive sothat a third party can clearly understand the performanceinformation conveyed.



$omprehensiveness: include all ma5or areas

'daptability: 'llo% managers in different functions3dept to

adapt them for particular needs..%ide spread use of form.

$omprehensiveness: /nclude all ma5or areas of performance fora particular position for entire revie% period.

Definition $larity: Desirable competency and results are clearlye#plained for all raters so that everyone evaluates the sameattribute. Enhance consistency of rating.

$ommunication: form components are successfullycommunicated.

4ime rientation: 'ddresses past and future aspects.

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Assessing and Analysing Performance

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