2ObjectivePerformance Appraisal has two objectives1To help those appraised develop and improve their performance in futureTo help the organization evaluate the performance of its employees and hence pay them for their contribution2
3Objective In principle, there is no conflict between these objectives. In practice people will respond differently to an appraisal scheme according to how they perceive the weight of these objectives.The first encourages people to be open about their needs and shortcomings the second does not.The organization must decide the balance to be struck.
5What is Appraisal?Performance Appraisal is a system for achieving organizational goals through the review of employee performance against individual or group objectives.An appraisal is a formal evaluation of the extent to which the employee has achieved the objectives established in the performance plan.
6What is Appraisal?The primary purpose of Performance Appraisal must be to improve the effectiveness of employees in their various areas of responsibility as they assist the institution to reach its organizational goals.We believe that individuals desire to perform at a high level, and it is the institution's responsibility to assist them in doing so.
7What is Appraisal?Performance Appraisal is an important tool of Human resource management since it reflects an evaluative judgment of the traits, characteristics as well as the work-performance of the employees on their jobs.Performance Appraisal is on the up and up. It used to represent the one time of the year when getting on with the work was put on hold while enormous quantities of management hours were spent in the earnest ritual of rating and ranking individual performance.
8What is Appraisal?Obviously, therefore, the utility or importance of employee Performance Appraisal within an organization is really very great from the point of view of employees- sub-ordinates and supervisors as well as the organization.
12Challenges in Appraisal Almost every organization is challenged by frustrating employee-related challenges.These cost your company time, money, resource, lost opportunities, and reduced productivity, to name a few.
13Challenges in Appraisal It has to be realized that any people-management process is one of engagement.Whether it is performance management or career planning, it is necessary for senior management to accept ownership for their actions. Avoiding the discomfort of confronting affected employees cannot be termed as responsible managerial behavior.
14Challenges in Appraisal To avoid such eventualities, it is necessary for senior management to realize that they have to be transparent and consistent in their people management interactions and actions at all level at all times.The time has come for a radically new way to gauge organizational performance.
15Challenges in Appraisal Every company today is struggling to grow and manage its value. Increasingly that value is derived from intangible assets such as human intelligence, brand recognition, customer service, and quality. Yet, we have no systematic way to measure these intangibles.That's why the gap between the numbers on a company's accounting statements and its market valuation continues to widen.
16Appraising to Decide REWARDS Performance is rarely determined solely by individual merit. The organization requires people to work together supportively to achieve its objectives.Most people's performance is more determined by the quality of their interactions and the information they get from others than anything else. They also contribute in an immeasurable way by helping others.
18Appraising for DEVELOPMENT To do this effectively requires:-A system for doing itManagers to have the skills to do itThose involved to want to take part
19Appraising for DEVELOPMENT The third item takes the most managing. People will usually be more committed to processes when they are involved in the decision making.Problem solving workshops to develop and explore the options are one way forward.The system and forms required are less critical for success than the other two factors. Many options exist; the best systems are simple, flexible and practical.
20Appraising for DEVELOPMENT Managers need good interpersonal skills to get the best out of appraisal. The heart of it is the interview with the subordinate.The manager must listen well and with understanding to create trust and openness.The manager may need counseling, coaching and feedback skills to enable development. He/she will ideally be open about his/her needs too.
21OPTIONS for Developmental Appraisal The following are possible:-Self AppraisalThe person writes down an assessment of his/her performance last year and development needs next year. This forms the basis of a developmental interview with the boss. At the end both agree actions.AdvantageEncourages open communication
22OPTIONS for Developmental Appraisal Peer AppraisalThe person seeks comments on performance and development needs from peers before interview with boss.AdvantageWider view of the person's performance and needs
23OPTIONS for Developmental Appraisal Customer AppraisalAs per previous slides but input now from internal and external customersAdvantageFeedback focused on most important issues. Can be an important contributor to customer care
24OPTIONS for Developmental Appraisal Two Way AppraisalThe discussion of performance and development needs is two-way between boss and subordinate.It includes how they can be more helpful to each other in future.
25OPTIONS for Developmental Appraisal Two Way AppraisalOne method is the 'Team of two' approach where each party writes down. 'What I can do to help you?' What you can do to help me? The lists are then shared and positive plans made.AdvantageHighly developmental for both and very positive
26TRAINING for Appraisal Setting up an appraisal scheme is an organization development project. It will be much easier if you use an outsider to help the organization think through the possibilities and plan the appropriate interventions
27TRAINING for Appraisal Managers will probably need training in coaching, counseling and feedback skills.It will help to precede any definite offerings with a diagnosis of the specific needs.Then you will get what you want.
30TRAINING Cycle Which may Include Any or All of:- Establishing the skill requirements and the subsequent training needs of the workforce.The design of the most suitable events and most effective training methods for your organization
31TRAINING Cycle Which may Include Any or All of:- Delivery of the training with additional support for any open learning aspects.Evaluation and validation of the training event to ensure that you achieve identifiable and cost effective business improvements from the development of your staff
32SUCCESS of Appraisal System The success of any Performance Appraisal System depends on three factors:1First and foremost, the active interest and support of the organization's leaders, not simply the HR department;
33SUCCESS of Appraisal System 2Second, time needs to be taken to train all levels of personnel in the system's use and objectives; and
34SUCCESS of Appraisal System Third, the appraisals must be applied uniformly to all employees, at all levels, new and old. There is a tendency to assume that long term, employees know how they are doing and, therefore, there is no need to bother with formal appraisals. It just isn't so.Such neglect is often interpreted as a sign that no one cares anymore.3
35CONCLUSIONDesign of “Performance-appraisal System” of an organization depends upon the nature and requirement as suited to the culture of the organization. It must address corporate, departmental, and individual needs.However, it is necessary that even the most well designed system is worthless unless the senior management is committed in implementing it in true spirit
36CONCLUSIONThe engaging relationship of people management demands effort and sensitivity. It has to be understood that performance management is not a year-end effort when the whole organization goes into a tizzy and somehow gets over it leaving some happy and many unhappy but everybody guessing.
37CONCLUSIONSpecifically, at the senior levels of management, it is essential that there is continuous and credible sharing of expectations and feedback on performance throughout the year. Only through such an engagement can it be expected that managers will own up their decisions on people, which the assessed will also accept.
38CONCLUSIONWe believe that properly designed and implemented appraisal systems will force employees at all levels to think about what their job requires, communicate what they expect from the job, and reach a better understanding of how well they are accomplishing their responsibilities.
39CONCLUSIONYesthe process is difficult and time-consuming, but the advantage in forcing communications between all levels and letting people know clearly what is expected of them will result in better performance by employees and fewer problems for managers. We spend far too much time correcting problems caused by misunderstandings. It makes better sense to spend time preventing them.