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Performance Appraisal

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Performance Appraisal

• Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance and potential of its employees.

• Performance Appraisals are half yearly or (as per management discretion).

• They evaluate the needs of the employee and supervisor.

• Performance Appraisal is the process by which organizations evaluate employee job performance.

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Uses of Performance Appraisal

▪ To increase professional development, skill level and performance of each employee.

▪ To strengthen working relationship between Clinic head / superior and each employee.

▪ To aid in promotion, retention and salary decisions.

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Components of Performance appraisal

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Objective of Performance Appraisal

• To help better current performances• To help in development of the employee.• To determine training and development

needs.• To give employee feedback and counsel

them• To review performance for salary

purposes.

• Identify staff with promotional possibilities

• Assist in career planning decisions

Honestly tell the employee exactly how you see the performance situation.

Ask for their feedback about what you've said and listen to their response.

Partner with the employee to find the solution.

Persist until the change you've requested happens.

Y Remember why you do performance reviews (to help people learn and grow) and ask yourself why they would want to improve.

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Phases of Performance Appraisal

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Benefits of Performance Appraisal

• For the Appraisee• For the Management• For the Organization

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Benefits of Performance AppraisalFor the Appraisee

• Better understanding of his role in the organization – what is expected and what needs to be done to meet those expectation

• Clear Understanding of his strengths & weaknesses to develop himself into a better performer in future

• Increased motivation, job satisfaction, and self – esteem• Opportunity to discuss work problems and how they can be

overcome• Opportunity to discuss aspirations and any guidance,

support or training needed to fulfill those aspirations• Improved working relationships with supervisors

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Benefits of Performance AppraisalFor the Management

• Identification of performers and non-performers and their development towards better performance

• Opportunity to prepare employees for assuming higher responsibilities

• Opportunity to improve communication between the employees and management

• Identification of training and development needs• Generation of ideas for improvements • Better identification of potential and formulation of career

plans

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Benefits of Performance AppraisalFor the Organization

• Improved performance throughout the organization • Creation of a culture of continuous improvement and

success• Conveying the message that people are valued• Retention of the best employees

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Methods of Performance Appraisal

• Individual Evaluation Methods

• Multiple Person Evaluation Methods

• Other Methods

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Methods of Performance Appraisal Individual Evaluation Methods

• Confidential report

• Essay evaluation

• Critical incidents

• Checklist

• Graphic rating scale

• Behaviorally anchored rating scale (BARS)

• Forced choice method

• Management by Objective (MBO)

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Methods of Performance Appraisal Multiple Person Evaluation Methods

• Ranking

• Paired comparison

• Forced distribution

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Methods of Performance Appraisal Other Methods

• Group Appraisal

• Field review technique

• 3600 Appraisal System

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Individual Evaluation MethodsConfidential Report

Descriptive report

• Prepared at the end of the year

• Prepared by the employee’s immediate supervisor

• The report highlights the strengths and weaknesses of

employees

• Prepared in Government organizations

• Does not offer any feedback to the employee

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Individual Evaluation MethodsEssay Evaluation

▪ The rater is asked to express the strong as well as weak

points of employee’s behavior

▪ The rater considers the employee’s :

• Job knowledge and potential

• Understanding of company’s programs, policies, objectives etc

• Relation with co-workers and supervisors

• Planning, organizing and controlling ability

• Attitude and perception

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Individual Evaluation MethodsCritical Incidence

• Manager prepares lists of statements of very effective

and ineffective behavior of an employee

• These critical incidents represent the outstanding or

poor behavior of the employees

• The manager periodically records critical incidents of

employee’s behavior

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Individual Evaluation MethodsChecklist Method

• Simple checklist method

• Weighted checklist method

• Forced choice method

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Checklist MethodSimple Checklist Method

• Is employee regular Y/N• Is employee respected by subordinate Y/N• Is employee helpful Y/N• Does he follow instruction Y/N• Does he keep the equipment in order Y/N

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Checklist MethodWeighted Checklist Method

weights performance rating

(scale 1 to 5 )

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

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Checklist MethodForced Choice 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

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Individual Evaluation MethodsGraphic Rating Scale

• A form is used to evaluate the performance of the

employees

• A variety of traits may be used in this device, the most

common being quality and quantity of work

• Easy to understand and use.

• Permits statistical tabulation of scores of employees

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Individual Evaluation MethodsBehaviorally Anchored Rating Scale (BARS)

• Step 1. Identify critical incidents

• Step 2. Select performance dimension

• Step 3. Retranslate the incidents

• Step 4. Assign scales to incidents

• Step 5. Develop final instrument

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Individual Evaluation MethodsForced Choice Method

• This method uses several sets of paired phrases, two

of which may be positive and two negative

• The rater is asked to indicate which of the four phrases

is the most and least descriptive of a particular worker

• Favorable qualities earn plus credit and unfavorable

ones earn the reverse

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Individual Evaluation MethodsManagement by objectives (MBO)

• MBO emphasizes collectively set goals that are tangible,

verifiable, and measurable

• Focuses attention on goals rather than on methods

• Concentrates on Key Result Areas (KRA)

• Systematic and rational technique that allows management

to attain maximum results from available resources by

focusing on achievable goals

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Individual Evaluation MethodsManagement by objectives (MBO) - Cont

▪ Key Element of MBO• Arranging organizational goals in a means-ends chain

• Engaging in joint goal setting

■This process has the following steps:

✓ Identify KRAs

✓ Define expected results

✓ Assign specific responsibilities to employees

✓ Define authority and responsibility relationship

• Conducting periodic progress review

• Conducting annual performance review

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Multiple Person Evaluation Methods

Ranking method

• The evaluator rates the employee from highest to lowest

on some overall criteriaPaired comparison method

• Each worker is compared with all other employees in a

group

• For several traits paired comparisons are made, tabulated

and then rank is assigned to each worker

• This method is not applicable when the group is largeForced Distribution Methods

• The rater is asked to appraise the employee according to

predetermined distribution scale.

• The worker is placed between two extremes of “good” and “bad”

performance.

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Other MethodsGroup Appraisal

Employee is appraised by a group of

appraisers.

■The group consists of :

• Immediate supervisor of the employee

• Other supervisors who have close contact with the

employee’s work.

• Manager or head of the departments.

• Consultants or Clients

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Other MethodsField Review Technique

• The appraiser goes to the field and obtains the

information about work performance of the employee by

way of questioning the said individual, his peer group, and

his superiors

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Other Methods3600 Appraisal System

360 Degree Performance : Combination of self, peer, supervisor, and subordinate performance evaluation

• It is a systematic collection and feedback of performance data

on an individual or group, derived from a number of

stakeholders

• Data is gathered and fed back to the individual participant in a

clear way designed to promote understanding, acceptance and

ultimately behavior

What is 360 DF?

360 Degree Feedback is a multi - rater

feedback system where an individual is

assessed by a number of assessors including

his boss, direct reports, colleagues, internal

customers and external customers

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Appraisal Interview and Feedback - Let the Employee Know Where He Stands

• To help employees do a better job by clarifying what is

expected of them

• To plan opportunities for development and growth

• To strengthen the superior-subordinate working

relationship by developing mutual agreement of goals

• To provide an opportunity for employees to express

themselves on performance related issues

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THANK YOU

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