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Performance Appraisal PPT

Date post: 26-Oct-2014
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Performance Management PPT(Summary)
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Performance Appraisal Amit Sharma B.Tech, MBA, SAP(HR), PHR| SHRM [email protected]
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Page 1: Performance Appraisal PPT

Performance Appraisal

Amit SharmaB.Tech, MBA, SAP(HR), PHR|[email protected]

Page 2: Performance Appraisal PPT

PERFORMANCE APPRAISAL :

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members

Page 3: Performance Appraisal PPT

RELATIONSHIP BETWEEN JAB ANALYSIS AND PERFORMANCE APPRAISAL:Job analysis performance

performancestandards

appraisal

Describes work& Personnel RequirementOf a particularjob

Translate job Into levels of To acceptableOr unacceptableperformance

Describes the Job relevant strengths and weakness ofEach individual

Page 4: Performance Appraisal PPT

QUESTION ARISES?

Why do we measure performance? Effective performance appraisal

systems How do we measure performance?

Page 5: Performance Appraisal PPT

CHARACTERISTICS It is a step by step process It examine the employee strengths and

weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct

decisions on employees

Page 6: Performance Appraisal PPT

NEEDS AND OBJECTIVES:

Provide feedback about employees Provide database Diagnose the S & W of individuals Provide coaching, counseling, career

planning to subordinates Develop positive relation and reduce

grievance Facilitates research in personnel

management

Page 7: Performance Appraisal PPT

APPRAISAL BENEFITS (CONT.)

Appraisals offer employees:DirectionFeedbackInputMotivation

Page 8: Performance Appraisal PPT

APPRAISAL BENEFITS Appraisals offer the company:DocumentationEmployee DevelopmentFeedbackLegal protectionMotivation system

Page 9: Performance Appraisal PPT

WHY APPRAISALS ARE IMPORTANT

•Recognize accomplishments

•Guide progress• Improve performance

Page 10: Performance Appraisal PPT

WHY IMPORTANT (CONT.)

Review performance Set goals Identify problems Discuss career advancement

Page 11: Performance Appraisal PPT

STEPS IN PERFORMANCE APPRAISAL

Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal dataFor appropriate purpose

Page 12: Performance Appraisal PPT

PROCESS OF PA

Setting performance

standardsTaking correctivestandards

Discussingresults

Comparing standards

Measuringstandards

Communicatingstandards

Page 13: Performance Appraisal PPT

ISSUES IN APPRAISAL SYSTEM

Appraisal Design?

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?

Page 14: Performance Appraisal PPT

WHAT TO EVALUATE? (PHILIP MODEL)

Problem children

Plannedseparation

stars

Socialcitizen

H

L H

L

Potential

Performance

Page 15: Performance Appraisal PPT

HOW PA CONTRIBUTE TO FIRM’S COMPETITIVE ADVANTAGES

Improving performance

Making correct decision

Ensuring legal competence

Minimizing dissatisfactionAnd turnover

Values and behavior

Competitive advantage

Page 16: Performance Appraisal PPT

PROBLEMS IN PERFORMANCE APPRAISAL1. Errors In rating

Halo effects Stereotyping Central tendency Constant error Personal bias Spill over effect

Page 17: Performance Appraisal PPT

PROBLEMS IN PERFORMANCE APPRAISAL (CONT’D)

2. Incompetence3. Negative approach4. Multiple objectives5. Resistance6. Lack of knowledge

Page 18: Performance Appraisal PPT

ESSENTIALS OF AN EFFECTIVE APPRAISAL SYSTEM

Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal

Page 19: Performance Appraisal PPT

APPRAISALS AND DISCRIMINATION

Title VII ADA Other fair employment Laws

Page 20: Performance Appraisal PPT

DISCRIMINATION (CONT.) Failure to communicate standards

Failure to give timely feedback Failure to allow employees to correct performance

Inconsistency in measuring performance

Failure to document performance objectively

Page 21: Performance Appraisal PPT

APPRAISAL FORMS Define performance expectations

Describe measurement tools Use a rating system Cover specific examples Set measurable goals

Page 22: Performance Appraisal PPT

MEASURE PERFORMANCE Measurement systems need to be:

Specific Fair Consistent Clear Useful

Page 23: Performance Appraisal PPT

MEASURE PERFORMANCE (CONT.)

Systems can be: Numerical Textual Management by Objective (MBO)

Behavior oriented

Page 24: Performance Appraisal PPT

DOCUMENT PERFORMANCE Make sure documentation is objective

Document performance of all employees

Provide complete and accurate information

Document performance on a regular basis

Page 25: Performance Appraisal PPT

SET GOALS…. Based on job requirements Realistic Measurable Observable Challenging Prioritized

Page 26: Performance Appraisal PPT

EMPLOYEE INPUT

Employees take an active role:Setting goalsDesigning action plans Identifying strengths and weaknessesEmployees participate in the PA meeting

Page 27: Performance Appraisal PPT

PREPARATION

Employees: Review performance Think about new goals

Page 28: Performance Appraisal PPT

PREPARATION (CONT.)

Supervisors: Review performance Complete written appraisal Think about new goals Schedule time and place

Page 29: Performance Appraisal PPT

START THE MEETING

Lay out agenda Talk about money Encourage input Give good news first

Page 30: Performance Appraisal PPT

DURING THE MEETINGReview performance: Based on previous goals Noting strengths and accomplishments

Identifying areas for improvement

Page 31: Performance Appraisal PPT

PRESENTATION TIPS

Focus on the professional Give objective examples Invite response Listen actively Create “we” mentality

Page 32: Performance Appraisal PPT

DURING THE MEETING (CONT.)

Set goals: Based on company goals

Building on areas that need improvement

Page 33: Performance Appraisal PPT

END THE MEETING Encourage good performance

Lay out action plan Communicate outcome of goals not met

Confirm understanding

Page 34: Performance Appraisal PPT

CONTINUOUS FEEDBACK

Formal appraisals Informal appraisals

Open communication

Page 35: Performance Appraisal PPT

RECOGNIZE GOOD PERFORMANCE

Verbal Public Tangible Monetary

Page 36: Performance Appraisal PPT

IDENTIFY POOR PERFORMANCE

Act early Take the right approach Deal with employee reaction Handle continued poor performance

Page 37: Performance Appraisal PPT

DISCIPLINE POOR PERFORMANCE

Recognize problems Talk with employee Follow company policy

Page 38: Performance Appraisal PPT

HANDLE HARD CASES

Reviewing highly emotional employees

Rating former peers

Page 39: Performance Appraisal PPT

KEY POINTS TO REMEMBER You must conduct objective appraisals on a

scheduled basis.

Appraisals tell employees how they’re doing and how they can improve.

Appraisals help create a system of motivation and rewards based on performance.

Page 40: Performance Appraisal PPT

PERFORMANCE APPRAISAL METHODS Individual Evaluation Methods

Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale

MBO

Page 41: Performance Appraisal PPT

CRITICAL INCIDENT METHOD

Ex: A fire, sudden breakdown, accident

Workers reaction scale

A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1

Page 42: Performance Appraisal PPT

CHECKLIST METHOD

• Simple checklist method• Weighted checklist method• Forced choice method

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

Page 43: Performance Appraisal PPT

WEIGHTED CHECKLIST METHOD

weights performance rating(scale 1 to 5 )

Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0

Page 44: Performance Appraisal PPT

FORCED CHOICE METHOD

Criteria Rating

1.Regularity on the job Most Least• Always regular• Inform in advance for delay• Never regular• Remain absent• Neither regular nor irregular

Page 45: Performance Appraisal PPT

GRAPHIC RATING SCALE• Continuous Rating Scale• Discontinuous Rating Scale

Employee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------

Exc. Good Acceptable Fair Poor 5 4 3 2 1 _

DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale

Page 46: Performance Appraisal PPT

DISCONTINUOUS RATING SCALE

Attitude

NoInterest

Indifferent

Interested

Enthusiastic

Veryenthusiastic

Page 47: Performance Appraisal PPT

BARS( BEHAVIORALLY ANCHORED RATING SCALE)

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

Page 48: Performance Appraisal PPT

MBO PROCESS Set organizational goals Defining performance target Performance review feedback

Page 49: Performance Appraisal PPT

Group AppraisalRanking Paired comparison Forced distribution Performance tests Field review technique

PERFORMANCE APPRAISAL METHODS

Page 50: Performance Appraisal PPT

RANKING METHOD

Employee Rank

A 2

B 1

C 3

D 5

E 4

Page 51: Performance Appraisal PPT

PAIRED COMPARISON METHOD

A B C D E Final RankA - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Page 52: Performance Appraisal PPT

FORCED DISTRIBUTION METHOD

10% 20% 40% 20% 10%

poor Belowaverage

average good Excellent

No. of employees

Force distribution curve

Page 53: Performance Appraisal PPT

FIELD REVIEW METHODPerformance subordinate peers superior customerDimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^

Page 54: Performance Appraisal PPT

PERFORMANCE CRITERIA FOR EXECUTIVES For top managers

Return on capital employedContribution to community developmentDegree of upward communication from

middle-level executivesDegree of growth and expansion of

enterprise.

Page 55: Performance Appraisal PPT

FOR MIDDLE LEVEL MANAGERS Departmental performance Coordination among employees Degree of upward communication

from supervisors Degree of clarity about corporate

goals and policies

Page 56: Performance Appraisal PPT

FOR SUPERVISORS Quality and quantity of output in a

given period Labor cost per unit of output in a

given period Material cost per unit in a given

period Rate of absenteeism and turnover of

employees No of accidents in a given period


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