What does it mean?What does it mean? Performance appraisal is a method of evaluating Performance appraisal is a method of evaluating

the behavior of employees in the work spot, the behavior of employees in the work spot, normally including both the quantitative & normally including both the quantitative & qualitative aspects of job performance.qualitative aspects of job performance. A process of systematically evaluating performance and A process of systematically evaluating performance and

providing feedback upon which performance providing feedback upon which performance

adjustments can be made.adjustments can be made.

Performance here refers to the degree of Performance here refers to the degree of accomplishments of the tasks that make up an accomplishments of the tasks that make up an individual’s jobindividual’s job

Often the term is confused with effort. But Often the term is confused with effort. But performance is always measured in terms of performance is always measured in terms of results not effortsresults not efforts. .

Functions of performance appraisal.Functions of performance appraisal. Define the specific job criteria against Define the specific job criteria against

which performance will be measured.which performance will be measured. Measure past job performance Measure past job performance

accurately.accurately. Justify rewards, thereby differentiating Justify rewards, thereby differentiating

between high and low performance.between high and low performance. Define ratee’s needed development Define ratee’s needed development

experiences.experiences.

Purposes of performance appraisal.Purposes of performance appraisal.

The four functions describe two general purposes of good The four functions describe two general purposes of good

performance appraisal.performance appraisal.

Evaluation.Evaluation.

Feedback and development.Feedback and development. Evaluative decisions.Evaluative decisions.

Concerned with issues regarding:Concerned with issues regarding: PromotionsPromotions Transfers.Transfers. Terminations.Terminations. Salary increases.Salary increases.

When these issues are decided on the basis of performance, a When these issues are decided on the basis of performance, a performance appraisal system is needed.performance appraisal system is needed.

Feedback and development decisions.Feedback and development decisions. Letting ratees know where they stand in Letting ratees know where they stand in

terms of expectations and performance terms of expectations and performance objectives.objectives.

Feedback should involve a detailed Feedback should involve a detailed discussion of the ratee’s strengths and discussion of the ratee’s strengths and weaknesses.weaknesses.

Feedback can be used as a basis for Feedback can be used as a basis for coaching and training by the manager.coaching and training by the manager.

Who does the performance appraisal?Who does the performance appraisal?

Ratee’s immediate superior.Ratee’s immediate superior.

Ratee’s peers.Ratee’s peers.

Ratee’s subordinates.Ratee’s subordinates.

360-degree evaluation.360-degree evaluation. Immediate supervisor Subordinates Peers Rationale for evaluations conducted by team members Self-appraisal Customer appraisal

PeriodPeriod

Prepared at specific intervals Usually annually or semiannually Period may begin with

employee’s date of hire All employees may be evaluated

at same time

CriteriaCriteria

Traits Behaviors

Competencies Goal Achievement

Improvement Potential

Difficulties in Performance Difficulties in Performance Management Systems Management Systems Focus on the individualFocus on the individual: Discussions of : Discussions of

performance may elicit strong emotions and performance may elicit strong emotions and may generate conflicts when subordinates and may generate conflicts when subordinates and supervisors do not agree. supervisors do not agree.

Difficulties in Performance Difficulties in Performance Management SystemsManagement Systems Focus on the processFocus on the process: Company policies : Company policies

and procedures may present barriers to a and procedures may present barriers to a properly functioning appraisal process.properly functioning appraisal process.

Additionally, appraisers may be poorly trained. Additionally, appraisers may be poorly trained.

The Performance Appraisal ProcessThe Performance Appraisal ProcessExternal EnvironmentExternal EnvironmentInternal EnvironmentInternal Environment

Plan the Performance Identify Performance Goals

Communicate Goals Establish Performance Criteria

Determine: Responsibility for Appraisal

Appraisal Period Appraisal Method(s)

Computer Software

Examine Work Performed

Appraise the Results

Conduct Appraisal Interview

Take corrective action if necessary Discuss Goals for Next Period

Anticipate and Consider Problems in PA Effective PA Systems

Management Support Coaching and T&D

The Appraisal ProcessThe Appraisal Process

Establishment of performance Establishment of performance standards standards Derived from company’s strategic goals. Derived from company’s strategic goals. Based on job analysis and job Based on job analysis and job

description. description. Communication of performance Communication of performance

standards to employee. standards to employee.

Trends in performance appraisalTrends in performance appraisalItemItem Former EmphasisFormer Emphasis Present EmphasisPresent EmphasisTerminoloTerminologygy

Merit rating, Merit rating, Performance Performance evaluation & controlevaluation & control

Employee appraisal/ Employee appraisal/ Performance appraisalPerformance appraisal

PurposePurpose Determine the basis Determine the basis for wage increase, for wage increase, transfer, promotion, transfer, promotion, layoff etc.layoff etc.

Employee Employee development, team development, team buildingbuilding

ApplicationApplication Four hourly Four hourly paid/causal/temporary paid/causal/temporary workersworkers

For technical, For technical, professional, and professional, and managerial employeesmanagerial employees

Factor Factor RatesRates

Heavy emphasis on Heavy emphasis on personal traitspersonal traits

Emphasis on results, Emphasis on results, accomplishment, accomplishment, performanceperformance

AppraisersAppraisers Only supervisor Only supervisor Supervisor, Supervisor, subordinates, subordinates, customers and customers and consultants etc. consultants etc.

The Appraisal ProcessThe Appraisal Process

Measurement of performance using Measurement of performance using information from: information from: personal observation personal observation statistical reports statistical reports oral reports oral reports written reports written reports

Comparison of actual performance Comparison of actual performance with standards. with standards.

Managerial ethicsManagerial ethics

A Manager ShouldA Manager Should A Manager Should NotA Manager Should Not

Appraise on the basis of Appraise on the basis of representative, representative, sufficient, and relevant sufficient, and relevant information information

Appraise without Appraise without knowing why the knowing why the appraisal is needed appraisal is needed

Be honest, in assessing Be honest, in assessing all the facts he has all the facts he has obtained obtained

Write one thing and Write one thing and say the sub-ordinates say the sub-ordinates another another

Make it crystal-clear that Make it crystal-clear that this is only your personal this is only your personal opinion of the facts that opinion of the facts that can be dissemble, and as can be dissemble, and as you perceive them you perceive them

Be biased in Be biased in statements, statements, presentation of presentation of information information

The Appraisal ProcessThe Appraisal Process

Discussion of appraisal with Discussion of appraisal with employee. employee.

Identification of corrective action Identification of corrective action where necessary. where necessary. Immediate action deals with symptoms. Immediate action deals with symptoms. Basic corrective action deals with Basic corrective action deals with

causes. causes.

Uses of Performance AppraisalUses of Performance Appraisal

Human resource planning Recruitment and selection Training and development Career planning and development Compensation programs Internal employee relations Assessment of employee potential

Performance Appraisal Performance Appraisal MethodsMethods

Performance Appraisal Performance Appraisal MethodsMethods

22ndnd Part of the session Part of the session

View & analyze the Performance View & analyze the Performance Appraisal Form of Abdul Momen Ltd.Appraisal Form of Abdul Momen Ltd.

(Igloo Ice Cream Plant)(Igloo Ice Cream Plant)

Cont.Cont.Identify the problems or weak points of the PA Identify the problems or weak points of the PA

formform The performance appraisal form of Abdul Momen The performance appraisal form of Abdul Momen

Limited is short and simple.Limited is short and simple. Most of the indicators are subjective.Most of the indicators are subjective. The rating scales are from A to E. Which is not easy The rating scales are from A to E. Which is not easy

for calculation.for calculation. The form does not include important indicators like:The form does not include important indicators like:

Communication SkillCommunication Skill Planning and organizingPlanning and organizing ResultsResults Problem solvingProblem solving Management EffectivenessManagement Effectiveness Objectives for the next yearObjectives for the next year

The appraisal is done by the immediate supervisor The appraisal is done by the immediate supervisor and the Department Head. No peers or subordinatesand the Department Head. No peers or subordinates

The appraisal is used for confirmation of service, The appraisal is used for confirmation of service, salary enhancement and promotion. No salary enhancement and promotion. No developmental Plandevelopmental Plan

RecommendationsRecommendations The appraisal should be done by him or herself, supervisor, The appraisal should be done by him or herself, supervisor,

subordinate or one employee of his/her own department, subordinate or one employee of his/her own department, and two employees of other department allowing the and two employees of other department allowing the employee 360° appraisal.employee 360° appraisal.

Rating from 0 to 5 should be used instead of A to E for Rating from 0 to 5 should be used instead of A to E for ease of calculations.ease of calculations.

Some objective (measurable) indicators should be Some objective (measurable) indicators should be included.included.

The next years objectives should be included in the form to The next years objectives should be included in the form to use as the bench-marks against which the performance use as the bench-marks against which the performance should be evaluated.should be evaluated.

Other important indicators like communications skills, Other important indicators like communications skills, planning and organizing skills, management skills should planning and organizing skills, management skills should be included.be included.

For every evaluation the appraiser should be able to give For every evaluation the appraiser should be able to give comments (if possible) to give a basis of the rating.comments (if possible) to give a basis of the rating.

There should be some flexibility for including or deducting There should be some flexibility for including or deducting any factors if necessary.any factors if necessary.

Calculation should be weighted average method.Calculation should be weighted average method. Some other benefits will be discussed in the proposed formSome other benefits will be discussed in the proposed form

33rdrd Part of the session Part of the session

Development of a new FormDevelopment of a new Form For your information: We try to For your information: We try to

develop a fully new concept in develop a fully new concept in Performance Appraisal system. Let Performance Appraisal system. Let us discuss about that.us discuss about that.

There are three part of form-A, B, CThere are three part of form-A, B, C Now let us see the Part-ANow let us see the Part-A

33rdrd Part: Cont. Part: Cont.

Let us see the Part-BLet us see the Part-B

33rdrd Part: Cont. Part: Cont.

Let us see the Part-CLet us see the Part-C

Discussion on new conceptDiscussion on new concept

Let us see why this method is considered as Let us see why this method is considered as something new & why it should be followed?something new & why it should be followed?

CGPA MethodCGPA Method In other method there are 100 or 200 fixed marks. In other method there are 100 or 200 fixed marks.

So if any criteria will not match with someone’s So if any criteria will not match with someone’s working environment than he or she will be miss working environment than he or she will be miss evaluated.evaluated.

Flexibility to include or deduct any factorFlexibility to include or deduct any factor Always Grade Point is same: 5 Scale, but no chance Always Grade Point is same: 5 Scale, but no chance

for miss evaluation as it is calculated on average.for miss evaluation as it is calculated on average. Single type of form can be used for different Single type of form can be used for different

purpose & different employeespurpose & different employees

Discussion on new conceptDiscussion on new concept Form A contains all the factor heading, but the Form A contains all the factor heading, but the

rating method is overall, because this is an rating method is overall, because this is an easy & widely used ways for judgmenteasy & widely used ways for judgment

But as there is another form B in which the But as there is another form B in which the every segment of each factors are considered, every segment of each factors are considered, no chance for miss measure or bias nessno chance for miss measure or bias ness

Calculation of average ensure measurement Calculation of average ensure measurement from two angels (over all & specific)from two angels (over all & specific)

Weighted average method ensures the Weighted average method ensures the evaluation more specific & justifiedevaluation more specific & justified

Form B is not filled by peers as they may not Form B is not filled by peers as they may not know about the subhead of an employeeknow about the subhead of an employee

Discussion on new conceptDiscussion on new concept 50% weight is reserved for the annual objective 50% weight is reserved for the annual objective

as he or she is highly responsible for thatas he or she is highly responsible for that Other 50% weight is distributed according to the Other 50% weight is distributed according to the

job description. This indicates that the weight is job description. This indicates that the weight is not fixed for the PA. and this is changeable not fixed for the PA. and this is changeable according to job natureaccording to job nature

There is some flexibility to HR department as There is some flexibility to HR department as there are two form-A & B. They can use only A or there are two form-A & B. They can use only A or B if the purpose allows & time is short.B if the purpose allows & time is short.

We highly emphasis on Annual target so that We highly emphasis on Annual target so that every employee will also emphasis to perform every employee will also emphasis to perform their annual target smoothly.their annual target smoothly.

There is also previous year performance point on There is also previous year performance point on the indicator, so that every body can compare the indicator, so that every body can compare employee’s performance easilyemployee’s performance easily

44thth & the last Part: Conclusion & the last Part: Conclusion We concentrated our best to give the We concentrated our best to give the

highest effort for preparing an easily highest effort for preparing an easily understandable, well accepted, useable for understandable, well accepted, useable for every purpose & bias less performance every purpose & bias less performance appraisal form. appraisal form.

But there may be some error, so we But there may be some error, so we request all of you to identify & evaluate the request all of you to identify & evaluate the error & suggest us to recover that error as error & suggest us to recover that error as well as to make it more effectivewell as to make it more effective

It will be highly appreciated if you send It will be highly appreciated if you send your valuable recommendations through your valuable recommendations through the following email address:the following email address:

rmnzaidi@gmail.comrmnzaidi@gmail.com

Conclusion Cont.Conclusion Cont.

At last we expect cooperation of our At last we expect cooperation of our honorable instructor and of all the honorable instructor and of all the participants for submitting this new participants for submitting this new concept to BSHRM for the nation concept to BSHRM for the nation wide as well as world wide wide as well as world wide acceptance.acceptance.

We are grateful for your participation We are grateful for your participation with us.with us.

Vote of ThanksVote of Thanks

Thanks a lot Thanks a lot to to

everybodyeverybody