21651508 Performance Apprisal

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Performance Appraisal

CHAPTER 1

INTRODUCTION

MEANING AND DEFINITION

PERFORMANCE APPRAISAL AS A NATURAL PROCESS

OF MANAGEMENT

OBJECTIVES OF PERFORMANCE APPRAISAL

BENEFITS OF PERFORMANCE APPRAISAL

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INTRODUCTION:

Todays working culture demands a great deal of commitment and effort

f rom the employees , who in turn natural ly expect a great deal more

from their employers . The development of much more par ticipat ivestyle of management in many organizations is a posit ive step towards

meeting such heightened expectat ions. This part icipative style can be

expressed in a var iety of pract ical ways . For eg: work teams, qual i ty

circles, and of course regular performance appraisals.

Appraising the performance of individuals and groups and organizations

has been a common practice in al l societ ies. While in some instances,

these appraisal processes are s t ructured and formally sanct ioned, in

other instances they are informal and integral part of daily activi t ies .

Performance appraisal i s the method of evaluating the behavior of an

employee at the work place, normally including both quanti tat ive and

quali tat ive aspects of job performance. Performance here refers to the

level of accomplishments. In the sense that there are expectat ions from

ev ery pe rso n in a n org an iz at io n, a c ertain lev el o f ou tpu t o r

performance is expected from all . How an employee actually performs

in the l ight of the expectat ions determines whether his performance is

exceptional , good, average or below that . I t is always measured in term

of results. This process has very a high implication on various other HR

functions, like recruitment, training, manpower planning etc.

I t i s impor tant tha t the employees are aware of the i r goal s , how to

achieve them, how they are matching up to them, what should be doneif they are not . There i s not one r ight way of doing the performance

appraisals . The most appropriate route to be taken will depend upon the

current s tyle and status of the organization. People do have a negative

at t i tude about the performance appraisals . Many have the complaints

such as, I ts just yearly roll icking, or It is l ike school report t ime

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or Nothing comes out of i t anyway. A s ignif icant considerat ion in

choos ing how t o go about i nt roduci ng o r r ev is ing a per fo rmance

appraisal scheme will be an understanding of how such at t i tudes have

been perpetuated and how they might be overcome. People carry bad

experiences with them for a long t ime, in this case, perhaps from job to

job . Much has to be done a t the t ime of int roducing or r evis ing a

performance appraisal scheme to reassure those who will be involved

that the intent ions behind conducting the performance appraisal are

sincere and positive.

Performance appraisal must be seen as an intr insic part of a mangers

responsibilities, not an unwelcome an time consuming addition to them.

It is about improving performance and ult imately the effectiveness al l

apart of the managers remit.

1.1 MEANING AND DEFINITION:

In s imple t erms performance apprai sa l may be unders tood as the

assessment of an individuals performance in a sys temat ic way, the

performance being measured against such factors as job knowledge,

quality, quantity of output, initiative, leadership abilities, supervision,

dependabi l ity , co-operation, judgement , verstali ty, health, and the

l ike. Assessment should not be conf ined to pas t performance alone.

Potenti al s of the employee for fu ture performance mus t a lso be

assessed.

A formal definition of performance appraisal is:

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It is the systematic evaluation of the individual with respect to

h is or her performance on the job and h is o f her potential for

development.

A more comprehensive definition is:

Performance appraisal is a formal structured system of

measuring and evaluating an employees job, related behavior, and

o ut co me s t o d is co ve r h ow a nd w hy t he e mp lo ye e i s p re se nt ly

performing on the job and how the employee can perform more

effectively in the future so that the employee, organization, and the

society all benefit.

The second def ini tion includes employees behavior as part of the

assessment . Behavior can be act ive or pass ive do something or do

nothing. Either way behavior affects job results . The other terms used

fo r p er fo rm an ce a pp ra is al a re : p er fo rm an ce r ati ng , e mp lo ye e

assessment, employee performance review, performance appraisal ,

performance evaluat ion, employee evaluat ion and meri t rating. In a

fo rm al s en se , e mp lo ye e a ss es sm en t is as o ld a s th e c on ce pt o f

management.

MEANING:

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Per formance in a job i s a mat ter , which needs to be cons idered both in

terms of results achieved and behavior demonstrated. Results required in

relat ion to quanti ty, quali ty or t iming can be established in most aspects if

a large number of jobs . Compar ing resul ts reached to resul ts required is

essential in evaluating the performance. Reviewing results in the context of

act ions and behavior i s necessary to develop a fu ll unders tanding of

individual performance. In determining what actions have led to success or

the l ack of i t, t hi s aspect of examining performance wil l r epresent a

significant element in forming plans for the future, so that s trengths can be

bui l t upon and weakness addressed. There are, of course, cer tain jobs or

features of certain jobs, where i t is not always possible to state a required

resul t or s tandard that clear ly. In these instances consider ing behavior

assumes a grea ter s ignif icance when apprai sing the performance . The

manager for the home for the elderly, for example would be able to show

abil ity in cont ro ll ing budgets in a t angib le manner by keeping wi th in

certain f inancial guidelines. The most important part of such job however,

would concern the heal th and wel l being of res idents . Apar t f rom being

d if fic ul t t o m ea su re , t he se a sp ec ts c ou ld b e s om ew ha t b eyo nd t he

managers control , and i t would be unfai r to make an assessment on the

amount of medicines used or the mortal i ty rate. Therefore i t fol lows that

the managers actions in promoting the good health and well- being of the

residents are the most relevant factor in evaluat ing performance, rather

than the resul ts . In this case, examples of such act ion might be ensur ing

that special ized help is summoned when necessary, l is tening to residents

who want to talk about thei r problems, or perhaps ar ranging appropr iate

diversions and entertainment.

Performance appraisal appraises performance of an operat ing uni t, l ike

department or section, or of an individual . The Government of India may

appraise the performance of the BARC as an organization. The Director of

BARC may appraise the performance or any department of division. These

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success in the organizat ion. Have a success or iented s t rategy does not

only mean expect ing people to succeed but also i f they do not succeed,

helping them to succeed.

1.2.1 IMPROVING PERFORMANCE:

Building a cl imate of success involves taking specific steps to improve

the performance of individuals or teams. Because managers depend on that

performance, they have a major and cont inuing responsibi li ty to t ake

whatever ac tion i s necessary to improve i t. This i s an enti re ly na tura l

process of management and whenever anyone completes a task or project

good managers wil l consciously or unconsciously consider the following

points:

How well was that done?

Could it have been better?

Was the right person selected for the job?

In what ways, if any, does the person need to improve?

What guidance or help can be provided to this person to ensure that

better results are achie ved next time?

1.2.2 EXERCISING LEADERSHIP:

There are many ways of defining leadership. Basically, however i t is

about get t ing things done through people. Leaders point out the way and

ensure tha t everyone ge ts there. Leadership i s about encouraging and

inspi ring indiv iduals and t eams to g ive the ir best to achieve a desi red

result . Managers as leaders have to achieve the task. That is why they and

their teams exist . The leaders role is to ensure that the teams purpose isfulf i l led. If i t is not , the result is frustrat ion, disharmony, cri t icisms and,

eventually perhaps disintegration of the group.

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Achieving the task involves leaders in get t ing answers to the fol lowing

questions:

What needs to be done and why?

What results have to be achieved?

What problems have to overcome?

I s t he s ol ut ion t o t hese p robl ems s tr ai gh tf or ward o r i s t he re a

measure of ambiguity?

Is this a crisis situation?

What is the time-scale for completing the task?

I n t he l ight o f t hi s ana ly si s l eade rs have t o t ake wha teve r s teps a re

necessary to motivate the individuals in their team and also, importantly; to

develop good teamwork.

Motivating individuals is a matter of:

o Understanding their needs are they interested primarily in money,

security, status, advancement, achievement, or what?

o Remember ing that money is not the only reward that most people

need and want. People can also be motivated by recognition, praise, and

the oppor tuni ty to make the bes t use of thei r ski l l s and abi l i t ies and,

indeed, to enhance them.

o Bear ing in mind the impor tance of expectat ions as an inf luence on

motivation. A reward, whether f inancial of non financial , wil l be much

more effective when people know what they can get if they work well

enough.

o Creat ing condi t ions where individuals can bes t satis fy thei r own

needs by directing their efforts towards achieving the success of their

team, department and, ul t imately, the organization. This is why one of

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the ar ts of leadership is to get people to think for themselves about

what they can and should do and by get t ing them to unders tand and

agree to the standards and targets they are expected to achieve.

o Recognizing the fact that people can be motivated by the work i tself

i f i t sat isf ies their need for responsibil ity and achievement. This can be

done by :

Increasing individual responsibility, empowering them ;

Giving them more scope to vary the methods, sequence and pace of

work;

Giving people a complete na tural unit of work , thus r educing

specialization;

Giv ing peopl e t he con tr ol i nf or mati on t o mon it or t he ir own

performance.

The p rocess o f per fo rmance appra is al i s e ss en ti al ly a means f or

managers to develop and improve their leadership skil ls in each of the

areas described above.

1.3 OBJECTIVES OF PERFORMANCE APPRAISAL:

Performance appraisal is potentially useful for managers in many ways.

At base however there are two fundamental reasons for developing such

systems.

A ss es si ng p as t, w hi ch o utl in es th e evaluative aspect of

performance appraisal.

Improving future performance, which highlights the developmentaspect of performance appraisal.

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1.3.1 OTHER OBJECTIVES ARE AS FOLLOWS:

a) Promotion, separation, and transfer decisions.

b ) F ee db ac k t o t he e mp lo ye e r eg ar din g h ow t h e o rg an iz at io n

viewed the employees performance.

c ) Eva luat ion of re la ti ve con tr ibut ion made by i nd iv idua ls and

entire departments in achieving higher level organization goals.

d ) C rit er ia f or e v alu at in g t he e f fe ct iv en es s o f s el ec ti on a nd

placement decisions, including the relevance of the information

used in the decisions within the organization.

e ) R ew ar d d ec is io ns , i nc lu din g m e rit i nc re as es , p ro mo tio ns

and other rewards.

f) Ascertaining and diagnosing training and development

decisions.

g) Criteria for evaluating the success of training and

development decisions.

h ) I nf or mati on upon which work schedu li ng p lans , budget ing,

and human resources planning can be used.

i) P ro vide d e mp loyee s t he op po rtu nity to fo rma lly in dica te

the direction and level of the employees ambition.

j) S how org aniz atio na l in terest in emp lo yee de ve lop men t,

which was ci ted to help the enterprise retain ambitious, capable

employees instead of losing the employees to competitors.

k) Provided a structure for communications between

employees and management to help clar i fy expectat ions of the

employee by management and the employee.

l) P ro vide satisfa ction a nd en co ura ge men t t o the emp lo ye e

who has been trying to perform well.

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1.3.2 PURPOSE:

The purpose can be highlighted by way of the following chart:

General application Specific purpose

Development Uses: Identification of individual needs.

Performance feedback.

Determining transfers.

Identification of individual strengths and

developmental needs.

Administrative uses: Salary.

Promotion.

Retention of individual performance.

Recognition of individual performance.

Lay-offs.

Identification of poor performers.

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Organizational maintenance/ objectives

HR planning.

Determining organizational training needs.

Evaluation of organizational goal achievement.

Information for goal identification.

Evaluation of HR systems.

Reinforcement of organizational development need

1.4 BENEFITS OF PERFORMANCE APPRAISAL:

The benefits of performance appraisal are two fold. The employees develop

themselves while the organization gets the benefi t of improved workforce.

A few benefits are stated below:

1.4.1 A. Benefi ts to the organization :

F ac il it ate s th e a ch ie ve me nt o f o rg an iz at io n g oa ls a nd

strategies.

Contributes to improved staff morale.

Facil i tates continuous performance improvement, organization

development and culture change.

Ass is ts in establi sh ing a performance culture of qual ity,

efficiency and achievement.

Provides a formal means of discuss ing competency gaps and

how to address these leading to more competent work force.

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Helps build a climate of openness and trust.

Adds to a participative work culture.

Forms par t of the legal process in address ing pers is tent poor

performance.

Provi des t he bas is f or f ai r r emuner at ion bas ed on act ua l

performance, so employees can see and experience a clear l ink between

their performance and the rewards they receive.

Also provides sys temat ic judgments to back up t ransfers ,

demotions or terminations, in extreme cases.

1.4.2 B. BENEFITS TO EMPLOYEES:

An opportunity to get formal feedback from line managers on

how their performance is viewed so that they can learn what they do

well and what needs to improve.

Ensures clari ty regarding work expectat ions and s tandards ,

reducing anxiety / stress and conflict with line managers.

An opportuni ty to d iscuss the ir job competencies (or l ack

thereof) leading to targeted training and development helping them

to realize their full potential.

Provides a forum to share new idea and to air views.

C an b e u se d a s a b as e f or c oa ch in g a nd c ou ns el in g th e

individual by the superior.

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CHAPTER 2

APPRAISAL AND MANAGEMENT STYLE

APPRAISAL AND COMMUNICATION

APPRAISAL AND MOTIVATION

APPRAISAL AND REWARD

APPRAISAL AND PERFORMANCE STANDARDS

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APPRAISAL AND TRAINING AND DEVELOPMENT

APPRAISAL AND PLANNING

APPRAISAL AND RECORD KEEPING

APPRAISAL AND STAFF RETENTION

ROLE OF PERFORMANCE APPRAISAL IN AN ORGANIZATION:

A major s tep in devis ing a performance appraisal scheme is deciding

exactly why i t is necessary to have one. Organizations need to consider

thei r object ives long before they des ign thei r schemes, i f they are to

ensure progress towards meeting the ir objec tives . To establ ish the

relevance of object ives in performance appra isa l they have to be

considered in the l ight of organization objectives. Is there a statement

of plans for next three to five years? Are the objectives of the appraisal

scheme consistent with those plans? Objectives must also be considered

in the much wider context of people management and how they relate to

organizational priorities in maximizing human resources.

2.1 Appraisal and Management style:

The pract ice of moni tor ing and improving performance is al l par t of

being a good manager. Consulting on problems, maintaining standards,

assist ing in reaching targets , and improving effectiveness are some of

the ways in which resul ts are obtained through people. Introducing

performance apprai sa l into an organiza tion whose management i s

generally autocratic would be something of an anomaly. I t would also

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be doomed to fai lure, s ince i t would be greeted wi th a fai r degree of

suspicion. Commitment to i t would be lacking. Introduction or revision

of an appra isa l scheme can be na tural ex tension to the increasing

professionalism in a participative style of management.

2.2 Appraisal and Communication:

S in ce a pp raisal is a pa rticu la rly refine d form of c orp orate

communication, using i t to improve communicat ions i s a r elevant

object ive . Thi s appl ies both to communicat ion on one to one basi s

between managers and s taf f , and to management communicat ion in

general . Here is an oppor tuni ty to ensure that al l i ssues relat ing to

performance are c lar if ied and to exchange informat ion in order to

improve operational effectiveness. Seen as a way of strengthening good

communications , performance appra isa l has a r ightfu l p lace in an

organizations communications policy. What must be avoided, however,

is introducing appraisal because communications are bad. An appraisal

scheme wi l l not create bet ter corporate communicat ion on i t s own. I t

can onl y s er ve a s a par t o f a s ys tem where r egul ar updat es , t eam

briefings, meetings, and consultation are the norm. If communication is

bad , wha t i s goi ng t o happen t o a ll t he f eedback obt ai ned f rom

appraisees? There is a strong likelihood that it will fade away under the

pressures of day-to-day operational needs.

2.3 Appraisal and Motivation:

I t i s now unders tood that achievement , recogni t ion involvement , job

satisfaction and development are more l ikely to motivate than anything

else, given that they are provided in sat is factory working condi t ions

and that rewards are appropriate.

Appraisal links into the motivational aspect of the managers job in that

it can be aimed at giving recognition, helping people achieve, involving

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them, ass is t ing in creat ing job sat is fact ion and providing a forum in

which to discuss development.

How individuals are managed has a direct relevance to how motivated

they are l ikely to be. There is no doubt that appraisal wel l handled,

strengthens relationship because of the opportunities it creates for good

quality communication.

Appraisal also offers a good oppor tuni ty for the managers to keep in

touch with the ir employees changing capabi li ti es and aspi ra tions .

Performance appraisal also compliments the idea that with agreed levels

o f a tt ai nme nt in di vid ua ls w ill wo rk w il lin gly a nd r ea so na bl y

interdependently towards achieving goals.

2.4 Appraisal and Reward:

2.4.1 Money

There i s something fundamenta lly r ight about a llowing those who

achieve more and contr ibute more in an organizat ion to reap a larger

proportion of the rewards it has to offer.

As a basis for distr ibuting pay, a performance appraisal scheme can be

helpful par ticular ly i f i t concentrates on quant i fiable s tandards and

targets . I t is certainly better than some alternatives, which may amount

to no more than a series of decisions about who deserves what.

However , t he d is advant ages o f l inki ng r ewar d t o appra is al may

outweigh the advantages. The problem of relat ing pay and performance

is th at , f or i t t o b e a bs olu te ly f ai r, e ve ry on e m us t b e e na bl ed

consistently. The abil i t ies of employees immediate superiors, both as

man ag er a nd a ssesso rs, is ra re ly u nifo rmly g oo d ac ro ss an d

o rg an iz at io n, s im ila rly , t he d is tr ib ut io n o f r es ou rc es i s o fte n

inconsistent, resulting in difficulties which may mean that the potential

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for good performance is f rus t rated. Often performance is af fected by

other matters beyond the control of managers or subordinates.

I t may also happen, that if there is performance related pay scheme,

employees may feel that too much of emphasize is on quant i ty rather

than quality and the standards have to be ceased to be important.

2.4.2 Promotion

The concept of discussing promotion potential and career planning has

been questioned from time to t ime. For certain employees the exercise

may have little point if such issues are not discussed. However, a prime

contender for an impending promotional opportunity is not necessari ly

goi ng t o be compl et el y hones t about cur rent p robl em a rea a t an

appraisal interview.

Career planning is too important both to individuals and organizations.

T o g iv e it d ue e mp ha si ze , a nd t o r em ov e a p oss ib le o bs ta cl e t o

appraisal processes, career planning may well be need to be the subject

of a separate exercise.

2.5 Appraisal and Performance Standards:

Discussing and agreeing standards of performance is an ongoing part of

manager s job . As i s cont inual assessment and cons idering how to

maximize performance potential. Appraisal is a formal extension of this

responsibil i ty, and given that i t is carr ied out with commitment and a

degree of ski ll by the managers, r ai sing l evels of e ff ic iency in the

organization as a whole is a natural outcome.

2.6 Appraisal and Training and Development:

To analyze training and development needs is often a stated objective

of performance apprai sa l, and one tha t focuses on benef it s to the

individual and the organizat ion. The real benef i t of appraisal in this

area is that i t reaffirms that managers are responsible for the training

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and development of their own staff . An appraisal report form with the

appropriate reminders on i t creates an added discipline to ensure that

managers are aware of this responsibil i ty . Appraiser and appraisee

discussing previous training experiences, agreeing the best options and

formalizing what improvements are expected to result from learning, is

the most pert inent way to ensure that any training carried out actually

has some impact . Evaluation of t ra in ing i s a lso a part of apprai sa l

process, s ince any plans for training made during an appraisal must be

thoroughly followed up. Evaluation of training should be carried out as

a separate, specif ically designed exercise, but the information obtained

at an appraisal wil l be an addit ional indicator as to how well t raining

resources are being used.

2.7 Appraisal and Planning:

Plann ing cur rent and f ut ur e s ta ff ing needs i s a l eg it imat e a im i n

performance apprai sa l; a lthough not a lways an easy one to r each

coherent ly , because of the many inf luences that can have negat ive or

positive impact on the planning system.

2.7.1 Manpower Planning

Performance appraisal can give a lot of data about who is in the r ight

job , who wants to change jobs and who should be cons idered for

development or promotions.

2.7.2 Job Contents

Feedback f rom the jobholders of ten g ives a be tt er ins ight into the

evolution, which takes place almost unnoticeably in certain in certain

jobs. Appraisal is an ideal s i tuation in which to discuss and recognize

changes in job content that have not been formalized.

An individual may have s topped performing a key t ask of the job

descr ipt ion because they do not l ike i t and could have coerced others

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into doing i t for them. This does not al ter the fact that they should be

doing i t , and operational needs determine that they should st i l l at least

carry out the function when necessary . The manager has to coll ate

feedback and review i t in relat ion to departmental and organizational

n ee ds . T he m ai n ta sk i s t o f oll ow th ro ug h a nd e it he r to m ak e

appropriate changes or to explain why no changes can be made.

2.7.3 Evaluating Trends

Appraisals can be extremely helpful in highlighting certain trends. On

the basis that not al l of the people can be wrong al l of the t ime, some

issues may emerge which need at tention at senior level . . Addit ionally,

individual managers can learn a great deal about the impact of thei r

management style and practices, and how they might make changes for

the better.

2.8 Appraisal and Record Keeping:

Whilst appraisal should never be a paper-based procedure, a record of

i t is essential for some sensible reasons. An action plan would need to

be wri tt en down, and i t i s a lway s p ract ical t o have a r ecor d o f

employees performance s tandards , aspi ra tions , and potenti a l for

planning purposes and possibly for the allocation of the salary awards.

2.9 Appraisal and Staff Retention:

Many vacancies are unavoidable through ret ir ement , i llness, e tc .

However, many can be avoided if managers address themselves to some

o f th e o th er i ss ue s w hi ch c au se s ta ff t o le av e f or a lt er na ti ve

employment f rust ra ti on , bor edom, l ack o f oppor tuni ty , l ack o f

recognit ion, etc. Both continuous and formal appraisal must be seen as

a way of identifying problems before they reach the point of no return

and another employee ends up as a s ta ti st ic on the l abour turnover

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analysis . With the help of performance appraisal the retention can be

done successfully.

CHAPTER 3

SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS

PERFORMANCE GUIDELINES FOR MANAGERS

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SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS:

The ski l l s required by managers to carry out a performance appraisal

process are of ten underes t imated. They need to know how to agree

clear , measurable and achievable objectives with their s taff . They need

to know to def ine and assess competence requirements . They have to

provide the feedback and know, not only how to commend staff on their

achievements in appraisal discuss ion meet ing, but also how to coach

them and help them to r ecognize where the ir performance has been

substandard and needs to be improved.

The manager i s f aced with a new and more chal lenging s itua tion:

feedback, coaching, and counseling skil ls and the abil i ty to handle and

encourage upward appraisal all come to the fore.

However, performance appraisal does not require managers to act out of

character . In fact this would be most undesirable. I t is no use managers

bei ng s weet ly r easonabl e and consu lt at ive dur ing t he appra is al

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d iscussion and then rever ting to the ir au tocra t ic , d i rec tive type of

behaviour for the res t of the year . This sor t of behavior would only

conf i rm the suspicions of some people that appraisal i s meaningless

affair. What such managers can be persuaded to do, however, is to learn

that the skil ls of performance appraisal that can help them to get better

resul ts f rom thei r s taf f and that some modif icat ion of thei r behavior

dur ing the course of thei r day to day work would have benef icial

results in the shape of improved performance.

Interpersonal or interactive skil ls are those used by people to build and

maintain relat ionships with one another in order to achieve a purpose

(which may or may not be ar t iculated) . The social interact ion, which

takes p lace when using in terpersonal ski ll s involves both verbal

behavior ( asking or replying to questions, making statements, etc.) , or

the non verbal communica t ion ( f ac ing people , looking a t them,

react ing physical ly to what they say or do etc. by nodding, smil ing

etc.).

Interpersonal skil ls are exercised when an appraiser , ini t iates action to

achieve an aim which is dependent on the reaction and the agreement of

the appraissee. The appraisee may have their own objectives and will

certainly not be inert or passive. Appraisees wil l produce behavior and

react ions which have to be taken into account by appraisers who wi ll

order their behavior in a way i t is believed will contr ibute to achieving

their objectives. Appraisers have to ensure that appraisees wil l interact

with them productively and this wil l be affected by how appraisers see

appraisees and vice versa.

The attitude of appraiser will depend partly upon their knowledge of the

appraisees but may be affected by deep routed feelings about people in

general or the appraissees in particular.

3.1 PERFORMANCE GUIDELINES FOR MANAGERS:

3.1.1 Professional and technical knowledge:

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Has expert ise in the productive marketing of the business units

services.

Has expert knowledge of business units services and sufficient

familiarity with other business units services to enable customer needs

to be met.

Has exper t knowledge of bas ic operat ions of the total bus iness

unit and the appropriate management information.

3.1.2 Organizational and Business Knowledge:

Under st ands and app li es o rgan izat iona l knowl edge t o t he

business unit.

Knows whom to contact to gain additional knowledge.

Appropr ia te ly appl ies knowledge of the t eam to enhance the

operations of the business unit.

3.1.3 Interpersonal and Communications:

Res ponds const ruct ivel y when dea li ng wit h cus tomers and

colleagues.

Can establish rapport easily with a range of different people.

Helps people in groups and teams to get on together.

Can say No when necessary and set standards/ limits for others.

Makes it easy for others to be open and honest.

Presents ideas and information clearly in speech and writing.

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3.1.4 Influencing Skills:

Maintains a good relat ion with customers even when their needs

cant all be met.

Act ivel y i nvol ves o ther s i n dec is ion- mak ing and wins co-

operation.

Uses contacts appropriately to obtain information and help.

I t is assert ive for self and /or on teams behalf without damaging

relationships.

3.1.5 Critical Thinking:

Readily spots trends and patterns in jobrelated quanti tat ive and

qualitative data.

Test s the qual ity of avai lable information and draws logica l

conclusions from it.

Can analyze varied major problems and at the same t ime identify

appropriate actions.

3.1.6 Self Managing and Learning:

Is objective about own strengths and weaknesses.

Prepared to back own judgment publicly.

Concent ra te s and mai nt ai ns f ocus , even when const an tl y

interrupted.

Makes good use of opportunities to learn.

Recognizes and deals effectively with personal stress.

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3.1.7 Achievement and Action:

Is clear about what success means for the business; successful

in overcoming obstacles.

Makes decis ions wi thout pass ing the buck and sets personal

performance stand ards, too.

Take early actions to deal with problems even if i t is diff icult or

unpopular.

Makes best use of resources to achieve objectives.

3.1.8 Initiative and Innovation:

I de nt if ie s o pt io n fo r i mp ro ve me nt a nd a ct s o n t he m o r

motivates others to do so.

Chall enges accep ted way s o f doi ng t hi ngs when t hi s means

breaking with time honoured traditions.

Activi ty encourages the t eam to come up with new ideas and

approaches.

Experiments and learns from mistakes.

3.1.9 Strategic perspective : Understands key organizational aims, values and strategies.

Ant ic ipat es how t rends and event s i n d if fe rent a reas o f t he

business and env ironment will affect them.

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Act ivel y encourages and s upport s peopl e when t hey o ff er

different perspectives and opinions.

3.1.10 Capacity for Change:

Gradually modifies approach or strategy as the situation changes.

Can accept and work with new approaches, even if not total ly in

agreement with them. Keeps focused in the phase of uncertainty. Helps

the team to accept and adjust to changed approaches.

Matches opinions in response to contrary evidence. Can modify

on style when appropriate.

CHAPTER 4

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THE APPRAISAL PROCESS

SETTING THE OBJECTIVES OF PERFORMANCE

APPRAISAL

ESTABLISHING JOB EXPECTATIONS

DESIGNING THE APPRAISAL PROGRAMME

PERFORMANCE INTERVIEW

THE APPRAISAL PROCESS:

4.1 I. Setting the objectives of performance appraisal:

The purpose for evaluating the performance of the employee

can be for:

Training ( f inding the def iciency in the performance and

imparting training accordingly).

Promotions (f inding the most suitable employee from the

cluster so that he can face the new challenges posed by the promotions). Transfers ( f inding out the employees potent ial , interes ts

and accordingly transferring him to the most suitable job in order to get

the best out of him and retain him in the organization).

Giving pay increases ( finding out the employee who i s

efficient and effective in performing his tasks at work he does).

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Thus depending on the necessi ty of appraisal the performance

o bj ec ti ve s w ill b e d es ig ne d. T he o bj ec ti ve s s ho uld e na ble th e

employees to know exactly the standards of performance they have to

mainta in . I t he lps the organiza t ion to set s tandard of performance

against which the actual performance of the employees would be rated

and t hus t he o rgan izat ions goa l wou ld be met i n an e ff ic ient and

effective manner.

4.2 II. Establishing job expectations:

After formulating the performance objectives a discussion is

hel d w it h t he employees whos per fo rmance i s t o be r at ed . The

supervisor makes the job expectat ions, duties and what is expected out

of him clear to the employees.

4.3 III. Designing the appraisal programme :

In order to design the appraisal system various aspects are to be

considered in order to sat isfy the purpose of the appraisal system. This

would include;

i. The person whos performance would be assessed,

ii. The person who will assess the performance,

iii . The possible problems that would be faced,

iv. The possible solutions that would solve the problem.

v. The methods to be used to appraise the performance.

vi. The period when the performance is to be appraised.

The decision regarding whether the appraisal would be done in a formal

way, i .e. once in a year or twice or i t can be done on informal basis i .e.

whenever there is a need to appraise the performance depending on the

needs of the organization.

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For example, for promotion or transfer or when there is an emergency

si tuat ion. I t i s however bet ter to have a formal appraisal sys tem in

order to know whether the performance standards are met, in addit ion

informal appraisal system would help to go to the deeper aspects l ike,

w he n t he e mp lo ye e i s n ot a bl e to p er fo rm t o t he s ta nd ar ds o f

completing the job on t ime, then he can be asked for the reason which

can be personal or organizational, this can help to identify the cause of

the def iciency and coming up wi th appropr iated solut ion in order to

make the employee complete his job on time.

4.3.1 Ratees and Raters:

A ratee may be def ined as an individual , work group, divis ion, or an

organiza t ion whose performances need to be r a ted . Raters can be

imme di ate su pe rvisors, sp ec ia lists from th e H R d ep artmen t,

s ub or di na te s, p ee rs , c om mi tt ee s, c li en ts , s el f- ap pr ais al, o r a

combination of several.

The choice of r a ter s i s done according to the ca tegory of the r a tee

whose performance is evaluated. For instance:

Immediate supervisors are f i t to appraise the performance

of thei r subordinates as they might be more famil iar wi th his or her

performance.

Peers a re b ett er p os it io n t o e va lu at e f ac ts su ch a s

cont ribution to work groups projec ts , interper sonal e ffec tiveness ,

communication skill, reliability and initiative of job performance.

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Clients that are wi thin the organizat ion who have di rect

contact with the ratee or the external cl ients can also be used for rat ing

the employee performance.

Rating Committees comprises of immediate supervisors

and other supervisors who are in contact wi th the ratee are adopted

where employee performs variety of tasks in different environment.

In self-appraisalemployee himself or herself evaluates his

or he r own p erfo rmanc e. Th is may b e be st su ited wh ere self-

development is the main purpose of evaluation.

4.3.2 Criteria for Rating Performance:

I t includes the basis or cri teria for performance appraisals . I t should be

determined on the basis of the employees perform. The cri ter ia should

be such that it enables the assessment of the jobholders performance ina fair and accurate manner. Depending upon the job the employee does,

the standard for the cri ter ia would be determined. For example, a shop

f loor worker should be more prof icient in technical ski l l s hence his

performance appraisal should emphasize more on technical skills. While

for a managerial position the emphasis should be more on social skills.

The current approach in setting the criteria is to make them SMART:

Specific

Measurable

Achievable

Relevant

Timed

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Keeping the smar t approach in mind performance can be assessed

depending on the following criteria;

Quality: T hi s a nsw er s t he q ue st io n, h ow w el l? W he n a n

employee is given a task, a certain level of quali ty is expected. If the

employee exceeds the expectat ions then the quali ty of work performed

is considered to be excel lent and i f i t i s below the expectat ion, i t i s

considered poor in quality.

Quantity: This answers the question, How much? For example,

measur ing the performance based on the number of uni ts produced,

volume of sales achieved or the number of activity cycles completed.

Timeliness: This answers the question, By what time? For every

activity, some t ime is required to complete i t as per the standards. The

less the time taken by the employee to perform the activity, maintaining

the standard quality of work, the higher he is rated for timeliness.

Cost effectiveness: This answers the question, At what cost? It

refers to optimum uti l izat ion of organizational resources, be i t human,

f inanci al , t echnol og ical o r mat er ia l. Tha t i s, t he o rgan izat ion s

resources are used in such a way that the returns are maximum.

Need for supervision: This answers the question, What level of

selfsufficiency? This means how wel l an employee can carry out his

job without seeking h i s superior s he lp . How sel f suff ic ient and

independent the employee is, in carrying out any task given to him.

Interpersonal impact: This answers the ques t ion, How social

he is? That is how well the employee co-ordinates and co-operates with

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his superiors, colleagues and customers and maintains a good rapport

with all and fosters a feeling of goodwill.

Skills: This answers the question, How efficient he is? That is

does he poses personal , social , technical skil ls . Personal skil ls include

such things as to listen, to question, to debate, to experiment etc. Social

skil ls include such skil ls as the abil i ty to encourage, to motivate other,

to meet people, to support people, to train others and so on. Technical

ski l l s include area which covers al l the aspects of work that require

p eo pl e t o d o s om et hin g s pe ci fic . F or e xa mp le , w id e te ch ni ca l

knowledge of companys product with specialist knowledge of some.

Knowledge: This answers the quest ion, How much a person

knows and how wel l can he re ta in the informat ion? That i s how a

person keeps himself/ herself aware of what is happening around and to

use his /her knowledge whenever needed.

Experience: This answers the ques tion , How experienced a

person is? That is whether a person has done the same thing over and

over again or they have done many different things.

The f i rs t four- qual i ty , quant i ty , t ime and cos t are object ive and the

next two- supervision and social relat ionship are subjective. Hence the

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appraisal cr i ter ia are ei ther person oriented (subjective) or results

oriented (objective).

4.4 IV. Performance Interview:

The performance interview is the formal face-to face meeting

bet ween t he employee and t he appra is er . I n s uch i nt er vi ews t he

information, which is obtained from the appraisal form, is discussed.

This discussion is important as the employees receive feedback about

where they s tand in the eyes of supervisors . After th is important

decision regarding salary, promotion and training, etc are made.

Feedback is necessary in order to bring improvement in the performance

especially when performance is not as expected. Performance interview

has following goals:

To change behavior of employees whose performance does not

meet organizational requirements or their own personal goals.

To mai nt ai n t he behav io r o f employees who per fo rm i n an

acceptable manner.

To recognize superior performance behavior so that they will be

continued.

To provide a rationale for salary reviews.

To improve communication between superior and subordinates.

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Raters of fer f eedback to r atees through several methods. The most

popular methods include tel l and sell , tel l and l is ten, problem solving

and mixed.

In t el l a nd s el l ( di rect i nt er vi ew ) t he manager t el ls t he

subordinate how well he is doing and persuades him to accept what has

been decided for him in terms of specific goals for improvement.

In the tell and listen interview the manager tel ls the subordinate

how he is doing but then sits back and listens to the individuals point of

view both about the appraisal and about any follow-up action required.

This provides the subordinates with chances to participate and establish

a conversation with his superior.

In problem solving (part icipative interview) an active and open

conversation is established between the superior and the subordinates.

Here the super ior puts as ide h is ro le as a judge , r a ther he openly

discusses with his subordinate. They mutually reflect on the progress

and f ur ther act ion r equi red. Sol ut ion t o p robl ems a re p resent ed ,

discussed and sort.

Mixed interview i s combination of t el l and se ll and problem

solving interviews. Here the superior shares the problems and solution

with the subordinates keeping their side of story in mind.

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CHAPTER 5

METHODS OF APPRAISALS

PAST-ORIENTED APPRAISALS METHODS

FUTURE ORIENTED APPRAISALS METHODS

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Rating Scales MBO

Checklists

360Appraisal

ForcedChoiceMethod Psychological

appraisal

Critical Incident Method Assessment Centers

Behaviorally Anchored Method

Field Review Method

Performance Test and Observations

Annual Confidential Reports

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Essay Method

Cost Accounting Approach

Comparative Evaluation Approach

5.1 PAST ORIENTED METHODS:

5.1.1 Rating scales:

Thi s i s t he s impl es t and mos t popul ar t echn ique f or appra is ing

employee performance. The typical rating-scale sys tem consis ts of

several numerical scales, each representing a job related performance

cri teria such as dependabil i ty, ini t iat ive, output, at tendance, at t i tude,

co-operation, etc.

Each scale ranges f rom excel l inked to salary increase, whereby so

many poi nt s equal a r is e o ft en t o poor. The appra is er checks t he

appropriate performance level on each cri ter ion, and then computes the

employees total numerical score. The number of points scored may be

l inked to salary increase , whereby so many poin ts equal a r ise of

percentage.

Excellent Good Acceptable Fair Poor5 4 3 2 1

Dependability - - - - -

Initiative - - - - -

Overall output - - - - -

Attendance - - - - -

Attitude - - - - -

Co-operation - - - - -

- - - - -

- - - - -

Quality of work - - - - -

Total - - - - -

Total score - - - - -

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Rating scales offer the advantages of adaptabil i ty, relat ively easy

use and low cost. Nearly every type of job can be evaluated with the

rating scale, the only requirement being that the job performance

cri teria should be changed. This way, a large number of employees

can be evaluated in a shor t t ime, and the rater does not need any

t ra in ing to use the sca le . The d isadvantages of thi s method are

several. The raters biases are likely to influence evaluation and the

baises are pronounced in subjective cri ter ia such as co-operation,

a tt itude and ini ti at ive . Moreover , numer ica l scor ing g ives an

illusion of precision that is really unfounded.

5.1.2 Checklist:

I n t hi s met hod, a check li st o f s ta tement s on t he t ra it s o f t he

employee and his or her job is prepared in two columns viz. a Yes

column and a No column. All that the rater ( immediate superior)

should do is tick the Yes if the answer to the statement is positive

and in the column No if the answer is negative. After t icking off

against each i tem, the rater forwards the l is t to the HR department

where the actual assessment of the employee takes place and the

actual evaluation is done by the HR department. The HR department

ass igns cert ain poin ts to each Yes t icked. Depending on the

number of Yes the total score i s a rr ived a t. When poin t s a re

a ll ot ted t o t he check li st i t becomes wei gh ted check li st . The

Instruction : For the following performances factors please indicate on the rating

Scale your evaluation of the employee named below.

Employees Name: Department :

Raters Name: Date:

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advantages of this method are economy, ease of adminis trat ion,

limited training of rater, and the standardization. The disadvantages

include, susceptibil i ty to raters baises, use of personali ty cri ter ia

instead of performance criteria, misinterpretation of checklist items,

and the use of improper weights by the HR department, i t also does

not allow the rater to give up relative ratings.

5.1.3 Forced Choice Method:

In this the rater is given a series of s tatements about an employee.

These s tatements are ar ranged in blocks of two or more, and the

rater indicates which statement is most or least descriptive of the

employee. Typical statements are:

1) Learns fas t..Works hard.

2) Work is rel iable..Performance is a good example for .

3) Absents often..Others usually tardy.

The r at er i s s impl y expec ted t o s el ec t s ta tement s, whi ch a re

readymade. The advantage of this method is the absence of personal

bias in rat ing. The disadvantage is that the statements may not be

proper ly f ramed- they may not be prec isely descr ip tive of the

ratees traits.

Yes No

1. Is the employee really interested in the job? - -

2. Does he/ she possess adequate knowledge about the

job?

- -

3. Is his/her attendance satisfactory? - -

4 . Does he/ she mai nt ai n t he equ ipment i n a good

condition?

- -

5. Does he/she co-operate with co-workers? - -

6. Does he/she observe safety precautions? - -

7. Does he/she complete what he/she commences? - -

8. Does he/she evade the responsibility? - -

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5.1.4 Forced Distribution Method

One of the errors in rat ing is leniency-clustering a large number of

e mp lo ye es a ro un d a h ig h p oi nt o n ra tin g s ca le . T he fo rc ed

distr ibution method seeks to overcome the problem by compell ing

the rater to dis t r ibute the ratees on al l points on the rat ing scale.

T he m eth od o pe ra te s u nd er a ss um pt io n t ha t t he e mp lo ye e s

performance level conforms to a normal s tat i st ical dist r ibut ion.

Generally, i t is assumed that employee performance level conforms

to a bell shaped curve.

The major weakness of the forced dis t r ibut ion method l ies in the

assumpt ion that employee performance level always conform to a

normal (or some other) distribution. In organizations that have done

good job of select ing and retaining only the good performers , the

use of forced distr ibution approach would be unrealist ic as well as

possibly destructive to the employee morale.

5.1.5 Critical Incidents Method:

The cr it ical incidents method of employee assessment approach

focuses on certain cri t ical behaviors of an employee that make al l

the difference between effective and non-effective performance of a

job. Such incidents are recorded by the superiors as and when they

occur.

One of the advantages of the cr i t ical incidents method is that the

evaluat ion i s based on actual job-behavior. Giving job- re la ted

feedback to the employee i s a lso easy . However, the fol lowing

drawbacks are there:

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Negative incidents are generally more noticeable than

the positive ones.

The recording of incidents is a chore to the supervisor

and may be put off and easily forgotten.

Overly close supervision may result.

5.1.6 Behaviorally Anchored Scale:

In this approach, broad categories of practice are identif ied, ideally

through collaborations between supervisors and staff . Specific job

behaviors a re then l inked to the ca tegor ies. Measures of s ta ff

member behav io r a re r at ed on a s ca le i n r el at ion t o s peci fi c

behavior i tems, such as understands depar tment funct ions. Job

dimensions usually yield similar broad categories, such as planning,

sett ing pr ior i ties, and responsiveness to supervis ion. Categor ies

such as these may be useful in f raming evaluat ion cr i ter ia in this

approach to appraisal.

Another means of approaching behavior - based apprai sa l i s the

behavioral frequency scale . Here, desired behaviors are described

and the s taf f member i s evaluated on how of ten those behaviors

occur.

5.1.7 Field Review Method:

Thi s i s an appra is al by s omeone out si de t he a ss es see s own

department, usually by someone from the corporate office or the HR

depar tment . The outs ider r eviews employee records and holds

interviews with the ratee and his/ her superior . The method is used

primarily for making promotional decisions at the managerial level.

F ie ld r eviews are a lso usefu l when comparable informat ion i s

needed from employees in different units or locations.

The disadvantages of this method are:

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1. An outs ider i s usual ly not familiar wi th the condi tions in an

employees work environment that may affect the employees

ability or motivation to perform.

2. An outsider review does not have the opportunity to observe

employee behavior of performance over a period of t ime and

in a variety of s i tuation but only in an art if icial ly structured

interview si tuation which extends over a very short period of

time.

5.1.8 Performance Tests and Observations:

With a l imited number of jobs, employee assessment may be based

upon a tes t of knowledge or ski l l s . The tes t must be rel iable and

validated to be usefu l. Even then , performance t es ts a re apt to

measure potential more than actual performance. In order to test to

be job related, observat ions should be made under ci rcumstances

likely to be encountered. Practically i t may suffer from the costs of

test development or cost of administration.

5.1.9 Essay Method:

In the essay method, the rater must describe the employee within a

number of broad categories, such as:

i. The raters overall impression of the employees

performance.

i i. The pr omot ab il it y o f t he empl oy ee .

iii . The jobs that employee is now able or qualified to

perform.

iv. The st rengths and weakness of the employee .

v . The t ra in ing and assi st ance required by the employee .

This method i s usefu l in f il ing the informat ion gaps about the

employees t ha t o ft en occur i n t he bet te r- st ruct ur ed check li st

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method. However , the major drawback can be that many raters do

not have good writ ing skil ls . They become confused about what to

say, how much they should state and the depth of narration. Another

problem with this method is that the ratees may be rated on the

quali ty of the appraisal that they give. The quali ty standard for the

appra isa l may be inf luenced by appearance rather than content.

T hu s, a hi gh q ua li ty a pp ra is al m ay p ro vid e l itt le u se fu l

information about the performance of the ratee.

5.1.10 Cost Accounting Method:

This method evaluates performance from the monetary returns the

e mp lo ye e y ie ld s to h is / h er o rg an iz ati on . A r el at io ns hi p i s

established between the cost included in keeping the employee and

the benefit the organization derives from him or her. Performance of

the employee is then evaluated based on the established relationship

between the c ost and the ben efit.

5.1.11 Comparative Evaluation Approaches:

There a re t wo met hods t ha t a re used t o compare one wor ke r s

performance to tha t of his or her co -worker.

5.1.11.1 Ranking Me thod:

In this , the super ior ranks his or her subordinates in the order of

the i r mer i t , s t a r t ing f rom the bes t to the wors t . Al l tha t the HR

department knows is that A is better than B. The how and why

are not ques tioned. No a tt empt i s made to f rac tionali ze what i s

being appraised into component elements. To avoid the biases, two

or more people can do rankings and then average can be taken. I ts

advantages include ease of administration and explanation.

5.1.11.2 Paired-Compar ison Method:

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Under thi s method, the apprai ser compares each employee with

every other employee, one at a t ime. For example, there are f ive

employees named A,B,C,D and E. The performance of A is f i r s t

compared to B and a decision is made about whose performance is

be t t e r . Then A i s compared wi th C,D,E in tha t order . The same

p ro ce du re is re pe at ed fo r o th er e mp lo ye es . T he n um be r o f

compar isons may be calculated wi th the help of a formula: N(N-

1)/2, where N stands for the number of employees to be compared.

If there are 10 employees, the number of comparisons will be 10(10-

1) /2=45. After the complet ion of the compar ison, results can be

tabulated and rank is created from the number of t imes each person

is considered to be superior.

5.2 Future Oriented Appraisals Methods:

5.2.1 Management By Objectives (MBO):

MBO emphasizes par ticipat ion by al l organizat ion members. The

following core elements in MBO:

Format ion of t rus t ing and open communicat ion throughout the

organization Mutual problem solving and negotiat ions in the establishment of

objectives

Creation of win-win relationships

Organizat ional rewards and punishments based on job-related

performance and achievement.

Minimal uses of political games, forces and fear.

D ev elop men t of a po sitive , p roa ctive , a nd c ha llen gin gorganizational climate.

Following are the 6 steps in the MBO process:

i . Formulate long range goal s and s tr a tegic plans

i i. Develop overal l organiza tional objec tives

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i ii . Es tabli shed der iva tive objec tives for major operat ing unit s

iv . S et rea listic an d ch allen ging o bjec tiv es a nd stan dards o f

performance for members of the organization.

v . Formulate act ion p lans for achieving the s t ated objec tives

v i. I mp le me nt th e a ct io n p la ns a nd ta ke c orr ec tiv e a cti on w he n

required to ensure the attainment of objectives.

MBO evaluation report for a call center person:

Objectives set Period

objectives

Accomplishments variance

Number of calls 100 104 104

Number of new customers

contacted

20 18 90

Number of deals cracked 30 30 100

Customer complaints 34 11 66.66

Number of reports in

home office

12 10 80

Number of sales

cor respondence cours es

successfully completed

4 2 50

Deals failed 2 0 0

5.2.2 Psychological Appraisals:

Large organizations employ full- time industrial psychologist . When

psychologists are used for evaluations they assess an individuals

future potential and not past performance. The appraisal normally

consis ts of in-depth interviews, psychological tests , discussions

with sup erv iso rs a nd a re view o f o the r ev alu atio ns. Th e

p sy ch ol og is t t he n w rit es a n e va lu at io n o f th e e mp lo ye e sintellectual, emotional, motivational and other related

character ist ics that sugges t individual potent ial and may predict

f ut ur e per fo rmance . F rom t hese eva luat ions , p lacement and

development decisions may be made to shape the persons career.

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5.2.3 Assessment Centers:

An assessment center i s a cent ra l loca tion where managers may

come together to have thei r par t icipat ion in job related exercises

evaluated by t rained observers . The pr inciple idea is to evaluate

manager s ove r a per iod o f t ime, s ay by one t o t hr ee day s, by

observing and evaluating their behavior across a series of selected

exercises or work samples. Assesses are requested to part icipate in

wor k g roups ( wi thou t l eade r) , r ol e- pl ay ing and o ther s imil ar

act iv it ie s, whi ch r equi re t he s ame a tt ri bu tes f or s uccess fu l

performance, as in the actual job. After recording their observation

of ratee behaviors , the raters meet to discuss these observat ions .

The decis ion regarding the performance of each assessee is based

upon this discussion of observations.

5.2.4 360 Degree Feedback:

Where mult iple raters are involved in evaluating performance, the

technique is called 360 o appraisal . The 360o technique is understood

as sys temat ic col lect ion of performance data on an individual or

group, derived from a number of s take holders- s takeholders being

the immediate supervisors , team member , cus tomers , peers , and

s el f. I n f ac t, any one who has use fu l i nf or mati on on how an

employee does the job may be one of the appraisers. I t enables an

employee to compare h is or her perceptions about sel f wi th the

perceptions of others. However, receiving feedback on performance

from multiple sources can be int imidating. I t may also take a long

time on selecting the rater , designing questionnaire, and analyzing

the data.

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CHAPTER 6

PERFORMANCE APPRAISAL PROCESS

PREPARE

INFORM

VENUE

LAYOUT

INTRODUCTION

REVIEW AND MEASURE

AGREE AN ACTION PLAN

AGREE SPECIFIC OBJECTIVES

AGREE NECESSARY SUPPORT

CLOSE POSITIVELY

RECORD MAIN POINTS, AGREED

ACTIONS AND FOLLOW-UP

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PERFORMANCE APPRAISALS PROCESS

6.1 Prepare

P re pa re a ll m at eri al s, n ote s a gr ee d ta sk s a nd r ec or ds o f

performance, achievements, incidents , repor ts etc anything

pertaining to performance and achievements- obviously include

the previous performance appraisal documents and current job

description. A good appraisal form will provide a good natural

order for proceedings, so use one. Whatever you use, ensure you

have t he neces sa ry approva l f rom y our o rgan izat ion, and

understand how it works. Organize your paperwork to reflect the

order of the appraisal and write down the sequence of items to be

covered. If the appraisal form includes a self- assessment section

and/or feedback section (good ones do) ensure this is passed to

the appraisee suitably in advance of the appraisal with relevant

gui dance f or compl et ion. A s ampl e per fo rmance appra is al

t empla te i s avai l ab le , which you can use as i t i s or adapt to

create your own form.

6.2 Inform

Inform the apprai see-ensure the apprai see i s informed of a

suit able t ime and p lace (change i t i f necessary ), and c lari fy

purpose and type of appraisal give the appraisee the chance to

assemble data and relevant performance and achievement records

and mater ia l s . I f the appra i sa l form does not imply a na tura l

order for the discuss ion then provide an agenda of i tems to be

covered.

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6.3 Venue

Ensure a sui table venue is planned and avai lable pr ivate and

free from interruptions.

6.4 Layout

Room layout and seating are important elements to prepare also

don t s imply accept whatever l ayout happens to exis t in a

b orr ow ed o r h ir ed r oo m- l ay ou t h as a h ug e i nf lu en ce o n

atmosphere and mood- i r respect ive of content , the atmosphere

and mood must be relaxed and informal- remove barriers- dont

si t in the bosss chair with the other person posit ioned humbly

on the other side of the desk, you must create a relaxed situation,

preferably at a meeting table or in easy chairs-si t at an angle to

each other, 90 degree ideally- avoid face to face, its

confrontational.

6 .5 Int ro du ct io n

Relax the appraisee open with a posit ive statement, smile, be

warm and f r iendly the appraisee may wel l be ter r i f ied; i t s

y our r es pons ib il it y t o c reat e a cal m and non-t hr ea teni ng

atmosphere. Set the scene-s imply explain what wi l l happen

encourage a discuss ion and as much input as possible f rom the

appraisee- tel l them its their meet ing not yours . Conf i rm the

t imings , especial ly f inishing t ime. I f helpful and appropr iate

begin with some general discussion about how things have been

going, but avoid get ting into speci f ics , which are covered next

(and you can say so) . Ask i f there are any addi t ional points to

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cover and note them down so as to include them when

appropriate.

6 .6 Review and measure

Review the activi t ies , tasks, objectives and achievements one by

one, keeping to dist inct separate i tems one by one avoid going

off on tangents or vague unspecific views. If you have done your

prepara tion correc tly you wil l have and order to fo llow. I f

something off subject comes up then note i t down and say you

will return to i t later (and ensure you do). Concentrate on hard

facts and figures, solid evidence avoid conjecture, anecdotal or

non-speci f ic opinions , especially about the appraisee. Being

objective is one of the greatest challenges for the appraiser as

wi th interv iewing, r esi st judging the apprai see in your own

image, according to your own s ty le and approach- fac ts and

f igures are acid tes t and provide a good neutral bas is for the

discussion, free of bias and personal views. For each i tem agree

a measure o f compe tence o r ach ievement a s r el evan t, and

according to whatever measure or scoring system is built into the

appraisal system. This might be simply a yes or no, or i t might

be a percentage or a mark out of t en , or an A, B, C. Rel i able

review and measurement requires rel iable data-if you dont have

the re l i ab le da ta you can t r ev iew and you might as wel l r e -

ar range the appraisal meet ing. I f a point of dispute ar ises , you

must get the facts s traightened out before making an important

decision or judgment, and if necessary defer to a later date.

6 .7 Agree an act ion p lan

An overal l p lan should be agreed with the apprai see , which

should take account of the job responsibil i t ies , the appraisees

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career aspirations, the depar tmental and whole organizat ions

pr ior i ties, and the reviewed s t rengths and weakness . The plan

can be s taged i f necessary wi th shor t , medium and long- term

aspects, but importantly it must be agreed and realistic.

6.8 Agree specific objectives

These are the specif ic actions and targets that together form the

action plan. As with any delegated task or agreed objective these

mus t adher e t o t he SMARTER r ul es -s peci fi c, measurabl e,

agreed, realis t ic, t ime-bound, enjoyable, recorded. If not , dont

bother. The objec tives can be anything tha t wil l benefi t the

individual, and tha t the person i s happy to commit to. When

helping people to develop, you are not restr icted to job-related

objectives, although typically most objectives will be.

6 .9 Agree necessary support

This i s the suppor t r equi red for the appra isee to achieve the

object ives , and can include t raining of var ious sor ts (external

courses and seminars , internal courses coaching, mentor ing ,

secondment , shadowing, distance- learning, reading, watching

videos, at tending meeting and workshops, workbooks, manuals

and guides; anything re levant and helpful tha t wil l he lp the

person develop towards the standard and agreed task. Be careful

to avoid commit ting to t ra in ing expendi ture before sui tab le

approval, permission or avai labil ity has been conf irmed-i f

necessary discuss l ikely training requirements with the relevant

author i ty before the appraisal to check. Rais ing false hopes is

not helpful to the process.

6.10 Close positively

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Thank the appraisee for thei r contr ibut ion to the meet ing and

their effort through the year, and commit to helping in any way

you can.

6.11 Record main points, agreed actions and follow-up

Swif tly fol low-up the meeting with a ll necessary copies and

conf irmat ions, and ensure documents are f il ed and copied to

re le va nt de pa rtmen ts, (H R, an d you r ow n lin e man ag er

typically).

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CHAPTER 7

THE JOINT APPROACH

OPENING AND CREATING A RAPPORT

QUESTIONING

LISTENING SKILLS

KEEPING CONTROL

GETTING PEOPLE TO OPEN UP

OVER COMPLIANCE

DISAGREEMENT, CONFRONTATION, ARGUING

AGREEING ACTION PLAN

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THE PERFORMANCE APPRAISAL INTERVIEW:

7.1 The Joint Approach:

The appraisal interview should adopt the joint approach. The joint

approach is based on the idea that confrontation about shortcomings

in performance and the imposi tion of solu tions to them are not

going to ge t the commitment r equired f rom employees to make

improvements. Managers have to see themselves not as judge and

jury but as enabler in the appraisal situation. The joint approach

employs a d is cuss ion t echn ique , whi ch i s des igned t o avo id

patronizing appraisee or confronting them about their s trength and

weakness. I t is about developing awareness and gaining agreement

to plans for development or improvement.

7.2 Opening and creating rapport:

The opening phases of an appraisal interview are very important in

determining the a tmosphere, which wil l prevail throughout the

meeting. Making people comfortable is an important opening skil l .

Thi s w il l enabl e t hem t o ent er i nt o an hones t and p roduct ive

discussion.

The comfortable and preferably familiar room layout is important .

A n i nit ia l re min de r f ro m th e m an ag er a bo ut t he p ur po se o f

performance appraisal and the appraisal inter is important. The first

stages of the appraisal interview should be thought out carefully, so

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as to reduce any apprehension, suspicion or nervousness perhaps

fel t by both s ides . A great deal of the potent ial for apprehension

about the event can be removed dur ing the preparatory s tages . A

few well-chosen words and gestures to get the meeting on i ts way

are worth some consideration before hand.

7.3 Questioning:

Since the main objective of the appraisal interview is to get people

talking and to f ind out the ir v iews on mat ter s, the appra is ing

manager needs to cons ider how best to cons truc t ques tions and

statements to keep the discussion moving and relevant.

Open questions begin with what, who, why, where, how or when are

useful in getting people to talk and open up. However, too much use

of these wil l make the interviewer sound more l ike an interrogator.

Therefore , a t some s tage, c losed ques tions i .e . those ques tion

h av in g a nsw er s a s Y es o r No a re n ec es sa ry to k ee p t he

conversation relevant. Hypothetical questions, which offer possible

solutions, can be used to test the reactions of the appraisee and the

validity of feedback.

Rebound quest ions , whi ch s impl y r epea t t he l as t par t o f t he

appra is ee s r es pons e, a re ver y use fu l f or t hose who a re l es s

for thcoming and are a lso he lpfu l in probing more deeply when

necessary.

The use of silence is something, which is essential. This will help to

overcome the temptat ion to answer thei r own ques t ions that can

influence appraisees react ions . The propor tion of par ticipat ion

should be 30% from appraiser and 70% from appraisee.

7.4 Listening skills:

Listening to the answers carefully is equally important as asking the

r ight quest ions . Maintaining eye contact, nodding, ges tur ing, and

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keeping an open structure are all physical indicators that listening is

ta ki ng p la ce . T he p ro of o f r ea l li st en in g h ow ev er i s i n th e

interviewers responses in that ques t ion should be l inked to the

appra isee s answers . The best t es t of l is ten ing comes when the

manger summarizes. If l is tening and understanding has taken place

the summary will be an accurate one.

7.5 Keeping control:

Dealing with the talkative appraisee may be interest ing but inkling

t o go o ff a t i rr el evan t t angent s. To con tr ol t hi s s it ua ti on t he

interviewer can blatantly interrupt to get the interview back on the

track or perhaps try a summary of the impo rtant points so far so that

i t i s c l ear tha t enough has been sa id . Changing the pace of the

interview by using more closed and specific questions for a while

might be advisable in a case like this one.

7.6 Getting people to open up:

Not gett ing someone to open up is the less obvious form of losing

interview control . To some degree the interviewee has control here

for often i t is he or she who has decided that they will not assist in

a ch ie vin g a p ro du ct iv e o ut co me . P le nty o f o pe n o r r eb ou nd

questions may help to get the response from less talkative subject .

The use of per iods of s i lence by the appraiser i s also wor th a t ry.

However , the real i ssue here wi l l be why the appraisee does not

want to open up . I s i t mis t rus t of appra i sa l in genera l or of the

appra is er . I s i t a f ai lu re t o compr ehend t he r el evance o f t he

exercise, or the lack of communication skil ls . I t also can be a fear

of confrontation or criticism or it is the desire not to co-operate.

7.7 Over compliance:

Some appraisees approach appraisal with an over complient attitude.

They agree to everything, accept any extra objectives and take on

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board any praise or criticisms that are leveled at them. It is possible

t ha t t hi s a tt it ude i s t aken by t he appra is ee t o be t he one t ha t

confirms that he or she is an exemplary employee. In such cases, the

appraiser needs to investigate i t and make i t clear that the purpose

of t he appra is al mee ti ng i s t o communi ca te hones tl y s o t ha t

improvements can take place for the benefi t of al l . Feedback, both

negat ive and posi t ive, i s required f rom the appraisee so that this

objective can be reached and this must be emphasized.

7.8 Disagreement, confrontation, arguing:

An occas iona l d is ag reemen t, confr on ta ti on and a rgument i s

inevit able in the apprai sa l. Deal ing wi th heated emot ions and

confrontat ion is a mat ter of s topping proceedings before they get

out of cont ro l . There i s no poin t in car ry ing on a d i scuss ion in

which the part ies a re unlike ly to r each agreement. S teering the

conversation back to an even pitch and trying to salvage a posit ive

conclusion is vi tal . Perhaps the matter can be discussed at another

time when both the sides have had time to consider it .

7.9 Agreeing action plans:

The action, which will result from an appraisal interview, wil l fal l

broadly in 3 categories:

1 . Tra in ing or r emedial act ion in order to br ing weaker areas

upto standard.

2. Fur ther t raining, coaching or planned experience to develop

satisfactory or stronger areas and to broaden experience with

advancement in mind and

3 . Tar ge ts o r obj ec ti ves t o g ive t he appra is ee s ome goa ls t o

work towards in the following months.

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CHAPTER 8

OVERCOMING THE PROBLEMS OF PERFORMANCE

APPRAISAL

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OVER COMI NG THE PROBL EMS OF PER FORMA NCE

APPRAISAL

o Appraisal i s a t ime consuming exercise i f car r ied out proper ly ,

but should be considered as an investment.

o Managers abil i ty to appraise wil l inevitably vary throughout the

organization. This emphasizes the needs for thorough training and

monitoring.

o Resis tance to form f i l ing may be encountered and any paper

work must be user friendly.

o The grea test r es is tance i s oft en to the use of job descript ion .

These are des i rable to keep appraisal on an object ive foot ing.

Where i t i s deemed inappropr ia te to use them, the burden of

maintaining objectivity is heavier.

o Often, negative at t i tude within the organization, run deep and are

dif f icul t to overcome. I t i s impor tant that something is seen to

happened as a result to appraisal, as soon as possible.

o Certain problems of structure may create diff icult ies in carrying

out appraisal :

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Teams that are geographically disparate;

Teams that are too big ;

Individual who work for more than 1 boss or who m

21651508 Performance Apprisal

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