Performance appraisal Narayan Gopal malego Uttam Acharya

Objectives At the end of the session the participants will be able to: Analyze the issues and challenges of performance appraisal in civil service Use performance appraisal tools

Content Performance management Performance appraisal: purpose Performance appraisal definition Performance appraisal in organization Process Tools and techniques Issues and challenges of performance appraisal

Human Resource Management Practices

HRM component AQUISITION HR Planning Recruitment Employee socialization MAINTENANCE Safety and Health Employee/Labor Relations DEVELOPMENT Employee Training Management Development Career Development EXTERNAL INFLUENCES Utilization Job Design Performance Evaluation Rewards/Job evaluation Compensation/Benefits Discipline

What is performance appraisal?

Performance and Appraisal artistic presentation manner of functioning working effectiveness thing accomplished accomplishment of something display of behavior Appraisal Valuation Evaluation

Performance Appraisal Defined It communicates to employees how well they are performing the job and what they can do to improve It has three main purposes: Improve employee performance in the present job Prepare employees for future opportunities in the organization Provide a record of employee performance to be used as a basis for future management decisions

Also the future potential of the employee. What is Performance Appraisal? “concerned with the process of valuing a person’s worth to an organization with a view to increasing it” Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee, and Also the future potential of the employee. Its aim is to measure what an employee does.

Performance appraisal-periodic rating Systematic, Periodic, and Impartial rating of an employee’s excellence: “in the matters pertaining to his/her present job and potential for a better job”. Systematic way of reviewing and assessing the performance of an employee : during a given period of time and planning for his future Employees’ Performance: Time and Plan

Use of performance appraisal Discussion

Use of Performance Appraisal Administrative purposes Working conditions Promotions Termination Rewards Developmental purposes Improving Performance Strengthening job skills Providing feedback Counseling Training

Performance Appraisal in Organization To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance.  To help the management in exercising organizational control.  Helps to strengthen the relationship and communication between superior – subordinates and management – employees.  To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. 

Performance Appraisal in organization To provide feedback to the employees regarding their past performance. Provide information to assist in the other decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

Primary uses of Performance Appraisal www.performanceappraisal.com Small Organizations Large Organizations All Organizations Compensation 80.2% 66.7% 74.9% Performance improvement 46.3% 53.3% 48.4% Feedback 40.3% 40.6% 40.4% Documentation 29.0% 32.2% 30.2% Promotion 26.1% 22.8% 24.8% Training 5.1% 9.4% 7.3% Transfer 8.1% 6.1% Discharge 4.9% 6.7% 5.6% Layoff 2.1% 2.8% 2.4% Personnel research 1.8% 2.2% Manpower planning 0.7% 1.5%

Process of performance appraisal?

Process Of Performance Appraisal ESTABLISHING PERFORMANCE STANDARDS COMMUNICATING THE STANDARDS MEASURING THE ACTUAL PERFORMANCE COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE DISCUSSING RESULTS DECISION MAKING ways to know degrees of an employee’s contribution to the organizational goals and objectives.

Tools and techniques?

Techniques and tools Ranking method Paired Comparison Confidential Report Essay Evaluation Critical Incident Checklists (listing effective and ineffective behavior) Graphic Rating Scale BARS Forced Choice Method (choose one activity among alternatives) MBO (how well accomplish the org objectives) Field Review Technique Performance Test

Measurement Tools – Trait Appraisal Instruments/ graphic rating scale Focuses on the person rather than on the performance Employee is rated on factors such as initiative, dependability, cooperativeness, quality of work etc. Supervisors tend to evaluate everyone Method provides same information on all employees ( inexpensive to develop)

Graphic Rating Scale- example How courteous is this front desk representative towards the customers? 1 2 3 4 5 Very Discourteous Neither Courteous Courteous Very Discourteous nor Discourteous Courteous

Behaviorally Anchored Rating Scale (BARS) 1 2 3 4 5 6 7 Ignores customer who needs help Keeps customer waiting unnecessarily Fails to thank customer for purchases Answers customers questions promptly Completes transactions in a timely manner Greets customers pleasantly and offers assistance Always tries to sincerely help customers locate items to suit their needs

Practices in PEs Discussion and sharing

Who appraises performance? Discussion

Who Appraises Performance? Supervisors Self-appraisals Peer appraisals Subordinate appraisals Customer/client appraisals Multiple raters 360-degree appraisal

Issues and challenges

Issues and challenges Lack of objectivity Stereotype Halo error (Rate employees the same on every trait) Stereotype Leniency/strictness Central tendency Recency effect (Focus on recent behavior and impression) Similarity (similar values and interest to the reviewer) Personal bias Manipulating the evaluation

Conflict between merit base versus seniority Which one is better? Can be ignored seniority base? Can be merit should get low weightage?

Tips for Better Performance Reviews Start with the raw data Make sure you are evaluating performance on appropriate dimensions Beware of rating biases Support ratings with written comments Evaluate several or all of your people at one time, if possible Stick with performance and stay away from inferences about cause Be consistent across employees

Thank you for your Attentive Participation