Ch_5_PA

Performance Appraisal Systems1

Performance Appraisal Systems

Chapter 5


Learning Objectives

• Meaning of PA• Process• Purpose of PA• Benefits• Methods of PA• Career Planning


What is Performance Appraisal

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the Personality, Performance, Potential, of its

group members


Why Appraisals Are Important

•Recognize accomplishments•Guide progress•Improve performance


Why Important (cont.)

• Review performance• Set goals• Identify problems• Discuss career advancement


Objectives of PA

1. Compensation & Rewards2. Training & Development3. Administrative Decision4. Personal Development5. Feedback


Process of PAJob Analysis

Establishing Standards of Performance

Communicating the Standards

Measuring Actual Performance

Comparing Actual performance with the Standards

Taking Corrective Actions


Methods of PA

1. TRADITIONAL

2. MODERN


Traditional Methods

1. Unstructured Method2. Straight Ranking3. Paired Comparison4. Man – to – Man Comparison5. Grading Method6. Graphic Rating Scale7. Forced Choice Method8. Check List9. Weighted Checklist10.Free Essay Method11.Critical Incidence Method12.Field Review Method13.Confidential Report14.Forced Distribution Method


Forced Distribution method

10% 20% 40% 20% 10%

poor Belowaverage

average good Excellent

No. of employees

Force distribution curve


Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers reaction scale

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


Checklist method

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


weights performance rating(scale 1 to 5 )

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

Weighted checklist method


Criteria Rating

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

Forced choice method


Graphic Rating Scale

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

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

DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale


Paired comparison method

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

B + - - + + 2

C + + - + + 1

D - - - - + 4

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


Modern Methods

1. Behaviorally Anchored Rating Scales – BARS

2. MBO3. Assessment Centre4. Human Resource Accounting5. 360 degree Appraisal

Motivation18

What is MBO?

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

Management by Objectives (MBO)

A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.


MBO(Management By Objectives)

1. Object formulation, 2. Execution process 3. Performance feedback

- Peter F Drucker 1954


BARS( Behaviorally Anchored Rating Scale)

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Assign scales to incidents

Step 4. Develop final instrument

It focuses on specific desirable and undesirable incidents of work behavior


Human Resource Accounting

Cost & Contribution difference Techniques:• Probationary reviews• Observation• Survey of opinion• One-to-one review


360 degree PA

Assessment Center23

What happens at an Assessment Centre?

Group exercises:• Discussions• Practical tasks• Role play

Individual exercises:• Written tasks• In-tray exercises• Psychometric tests• Presentations• Interviews

A number of different exercises, which are likely to include:

Plus socialising with assessors, fellow-candidates and recent graduates


Sources of Appraisal

• Superior• Peer• Customers• Subordinates


Problems in PA

1. Opportunity Bias2. Group Cohesiveness3. Similarity Error4. Rating Biases

– Leniency & Strictness– Halo effects– Central Tendency– Personal Prejudice– Recency effect


Essentials of an effective appraisal system

1. Reliability & Validity2. Clear Objectives3. Job Relatedness4. Standardizations5. Training to Appraisers6. Documentation7. Feedback and participation8. Post appraisal review9. Periodic Review


CAREER PLANNING


Introduction

• Career: Herbert Simon defines career as “an honorable occupation with one normally takes up during his/her youth with the expectation of advancement and pursues it until retirement

• Career planning and development is a means by which an organisation can sustain or increase its employees productivity and at the same time preparing them for a changing world.


Objective of Career Planning

• Identifying and making clear opportunities available. • To reduce employee turnover.• To Increase productivity.• To identify the career stages and enhance the

motivational level.• To achieve the organisation’s goal by providing the

employees paths to reach higher order needs.


Career Planning Flow & StagesCareer Planning Career Goals

Career Paths

CareerFeed Back

Retirement

Needs Safety, Security Physiological

Safety, Security

Achievement esteem, autonomy

Esteem actualization

Self actualization

Age 20 25 30 45 55 65

Career Stages Exploration Establishment Advancement Maintenance

Career stages and Important needs


Scope Of Career Planning

• Human Resource forecasting and planning• Career Information• Career Counseling• Career Pathing• Skill Assessment training• Succession Planning


CAREER ANCHORS

• Technical Competence• Managerial competence• Stability and Security• Creativity and Challenge• Freedom and Autonomy• Dedication to a cause• Lifestyle


Why A Career Plan Could Fail !

• Efforts are insincere• Look for immediate benefits• Lack of interaction with hired agencies• Impracticability in introduction• No system to evaluate• Bureaucratic model of organization


Importance of career planning

• Involvement of the employer and employee• Employees need to be aware of the organizational

opportunities.


Case Study – Colgate Palmolive

Employees fill the IDP FormThe form is sent to the managersEmployees and managers discuss

Employees interests Strengths Trainings

HR arrange for the training


Cadbury – Case study

• Early Career

• Mid Career

• Senior career


Early Career

• First 5 years of employment• Management skills training• Internal- short term placements• Workshops• Mentoring

Aim – Understanding of Business structure.


Mid Career

• Team Management trainings• Strategic leadership trainings• International opportunities• Ongoing career dialogues

Aim – Equip with capability to lead teams, develop and deliver business stratergies


Senior Level

• Highest level • Approximately 150 members globally• Global leadership conference• Executive development programme• External expert coaching

Aim – Support personal leadership styles to set business stratergies.


Steps in Career planning (Employee perspective)

• Make Career Planning an Annual Event

• Map Your Path Since Last Career Planning

• Reflect on Your Likes and Dislikes, Needs and Wants

• Examine Your Pastimes and Hobbies

• Make Note of Your Past Accomplishments


Contd.

• Look Beyond Your Current Job for Transferable Skills

• Review Career and Job Trends

• Set Career and Job Goals

• Explore New Education/Training Opportunities

• Research Further Career/Job Advancement Opportunities


Learning Outcomes

• Understand the Performance Appraisal System and how to conduct it.

• Understand the Career Planning process

Ch_5_PA

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