Mamun Muztaba AMC, BIMPerformance AppraisalManage Irretrievable resource Do you know how a 70-year life is generally spent? On an average, 25 years in sleep, 8 years in study and education, 6 years in rest and illness, 7 years in holidays and recreation, 5 years in commuting, 4 years in eating and 3 years in transition i.e. getting ready to do all the Above activities. Manage Irretrievable resourceThat leaves only 12 years or eective years!"harles #ch$a%, an &merican millionaire, paid a consultant '#(25,)))!)) in 1*36 to advise him ho$ to %est use this precious, irretrieva%le resource! +is advice, ,#tart your day $ith a -To .o/ list and prioriti0e the vital e$ ater pic1ing them rom the trivial many2! Performance appraisal3erormance appraisal!4&processosystematicallyevaluating perormanceandprovidingeed%ac1upon $hich perormance ad5ustments can %e made!43erormance appraisal should %e %ased on 5o% analysis, 5o% description, and 5o% speciications!.einethespeciic5o%criteriaagainst$hich perormance $ill %e measured!6easure past 5o% perormance accurately!7ustiyre$ards,there%ydierentiating%et$een high and lo$ perormance!.eine ratee/s needed development e8periences!Functions of Performance AppraisalObjectives of Performance AppraisalEmployee Organizationmeasuring the efciencymaintaining organizational control.concrete and tangible particulars about their workassessment ofperformancemutual goals of the employees & the organization.growth & developmentincrease harmony & enhance efectiveness Personal development work satisfaction involvement in theorganization.According to:Aimsat:Main Purposes of Performance Management9ndividual :e$ards ;eed%ac1 or #u%?Ordinate ;3lus and 6inus=:ecognition o #uperior 3erormance.ocumentation o @ea1 3erormance3ersonnel .ecision?6a1ing>uture Aoal "ommitments ;3lanned &chievements=Primary Uses of Performance AppraisalsSmall OrganizationsLarge OrganizationsAll OrganizationsCompensation 80.2% 66.7% 74.9%Performance improvement46.3% 53.3% 48.4%Feedback 40.3% 40.6% 40.4%Documentation 29.0% 32.2% 30.2%Promotion 26.1% 22.8% 24.8%Training 5.1% 9.4% 7.3%Transfer 8.1% 6.1% 7.3%Discharge 4.9% 6.7% 5.6%Laoff 2.1% 2.8% 2.4%Personnel research 1.8% 2.8% 2.2%!anpo"er planning 0.7% 2.8% 1.5%Who Performs the Appraisal!elf"#ating!ubor$inates%&'"(egree Fee$bac)Potential AppraisersImme$iate !upervisorPeers#ating CommitteeAppraising Performance Process Three steps in perormance appraisal process*+ (efining the ,ob- ma1ing sure that supervisor and the su%ordinate agree on hisBher duties and 5o% standardsC.+ Appraising performance- comparing su%ordinate/s actual perormance to the standards that have %een setC and%+ Fee$bac) sessions- discuss su%ordinate/s perormance and progress and ma1e plans or any development reDuired! Setting performancestandardsTaking correctivestandardsDiscussingresultsComparing standardsMeasuringstandardsCommunicatingstandardsWhat to MeasureEmployee/s perormance may %e measured in terms o generic dimensions such as 4Fuality,4Fuantity, and4Timeliness o $or1! Or, employee/s perormance may %e measured $ith respect to developing 4"ompetencies, or 4achieving hisBher goals!1.Paired comparison 2.Graphic Rating scales3. Forced choice Description method4.Forced Distribution Method5.Checks lists6.Free essay method7.Critical Incidents8.Field Review Method 9.Confdential Report10. Ranking1.Assessment Center2.Appraisal by Results or Management by Objectives3.Human Asset Accounting4.Behaviorally Anchored Rating scalesTraditional MethodsModern MethodsMetho$s of Performance AppraisalPaire$ Comparison Metho$Paire$ Comparison Metho$-:an1ingemployee%yma1ingachartoallpossi%le pairsotheemployeesoreachtraitandindicating $hich is the %etter employee o the pair!9npaire$comparisonthesupervisorcompareseach employee $ith every other employee in the group and rateseachaseithersuperioror$ea1erothepair! &terallcomparisonsaremade,eachemployeeis assigned a summary or ran1ing %ased on the num%er o superior scores received! Paire$ Comparison Metho$/raphicratingscalemetho$-itlistsanum%erotraits ;communication,organi0ational1no$?ho$,team$or1, etc!=,and a range o perormance or each! The employee is then rated %y identiying the score that %est descri%e his Bherleveloperormanceoreachtrait!&ssignedvalues or traits are then totaled!/raphic#ating!cale!Thismethodlistsaseto perormanceactorssuchas5o%1no$ledge, $or1 Duality, cooperationthatthesupervisorusestorateemployee perormance using an incremental scale! /raphic #ating !caleAttitude AttitudeNo interestIn work: consistentcomplainerNo interestIn work: consistentcomplainerCareless: In-diferentInstructionsCareless: In-diferentInstructionsInterested in work: Accepts opinions & advice of othersInterested in work: Accepts opinions & advice of othersEnthusiastic about job & fellow-workersEnthusiastic about job & fellow-workersEnthusiastic opinions & advice sought by othersEnthusiastic opinions & advice sought by othersDecisivenessTake decisions in consultation with others whose views he valuesTake decisions in consultation with others whose views he valuesSlow to take decisionsSlow to take decisionsTake decisions after careful considerationTake decisions after careful considerationTakes decisions promptly Takes decisions promptly Take decisions without consultation Take decisions without consultation 051015 20 05 101520/raphic #ating !caleForce$ Choice Metho$Force$ Choice Metho$- in this, the rater is given a series o statements a%out an employee! These statements are arranged in %loc1s o t$o or more, and the rater indicates $hich statement is most or least descriptive o the employee! This approach is 1no$n as the orced choice method %ecause the rater is orced to select statements $hich are readymade!CriteriaRating1.Regularity on the jobMost LeastAlways regularInform in advance for delayNever regularRemain absentNeither regular nor irregularForce$ Choice Metho$Force$(istributionMetho$-#imilarto gradingonacurveCpredetermined percentagesorateesareplacedinvarious categories!9tisgradingonacurveCpredetermined percentagesorates;top1)G,middle8)G and%ottom1)G=areplacedinvarious perormancecategories!Theproportionsin each category need not to %e symmetrical!Force$ (istribution Metho$No. of employees10%20%40% 20%10%poor Belowaverageaverage good ExcellentForce distribution curveForce$ (istribution Metho$Critical Inci$ent Metho$H 1eeping a record o unusually good or %ad e8amples o an employee/s $or1?related %ehaviorand revie$ $ith the employee! Critical Inci$ents! The supervisorIs attention is ocused on speciic or critical %ehaviors that separate eective rom ineective perormance! Critical Inci$ent Metho$Ex: A fre, sudden breakdown, accidentWorkers Reaction scaleAInformed the supervisor immediately5B Become anxious on loss of output4CTried to repair the machine3DComplained for poor maintenance2E Was happy to forced test1Critical Inci$ent Metho$ #ssa !ethod& trait approach to perormance appraisal that reDuires the rater to compose a statement descri%ing employee %ehavior!@rite a ieldrevie$sare alsouseul$hencompara%leinormationisneeded rom employees in dierent units or locations!Fiel$ #evie0 Metho$Performancesubordinate peers superior customerDimensionLeadership ^ ^Communication ^^Interpersonal skills^^Decision making ^ ^^Technical skills ^ ^^Motivation ^ ^^Fiel$ #evie0 Metho$Behaviorally Anchore$ #ating !cale Metho$ 1BA#!2 Behaviorally anchore$ rating scale metho$ 1BA#!2- 9t aims at com%ining the %eneits o narrative critical incidents and Duantiied ratings%y anchoring a Duantiied scale $ith speciic narrative e8amples o good and poor perormance! 9t reDuires ive stepsH1! Aenerate critical incidents2! .evelop perormance dimensions3! :eallocate incidents4! #cale the incidents5! .evelop a inal instrument!Performance Points BehaviorExtremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.Good 6 Can expect to initiate creative ideas for improved sales.Above average 5 Can expect to keep in touch with the customers throughout the year.Average 4 Can manage, with difculty, to deliver the goods in time.Below average 3 Can expect to unload the trucks when asked by the supervisor.Poor 2 Can expect to inform only a part of the customers.Extremely poor 1 Can expect to take extended cofee breaks & roam around purposelessly.Behaviorally Anchore$ #ating !cale Metho$ 1BA#!2 !&O '!anagement b Ob(ectives) !ethodItwasPeterF*DruckerwhofirstgavetheconceptofMBtothe wor!" wa# $ac% in 1954 when his The Practice of Management was firstp&$!ishe".'pp!icationofMBinperfor(anceappraisa!isa recent thin%ing.!&O '!anagement b Ob(ectives) method+ it invo!ves setting specific (eas&ra$!e organi)ation*wi"e goa!s with each e(p!o#ee an" then perio"ica!!# reviewing the progress (a"e. It invo!ves si+ steps,1. -et the organi)ation.s goa!s2. -et "epart(enta! goa!s3. /isc&ss "epart(enta! goa!s4. /efine e+pecte" res&!ts5. 0erfor(ance reviews6. 0rovi"e fee"$ac%3valuating the performance of managers an$ professionals is management by ob,ectives1! Employee meets $ith hisBher superior and agrees on a set o goals to achieve during a speciic period o time! 2! Throughout this period, progress to$ard the goal is monitored, though the employee is let generally ree to determine ho$ to go a%out meeting them! 3! &t the end o the period, the employee and superior again meet to evaluate $hether the goals $ere achieved and to decide together on a ne$ set o goals! !&O '!anagement b Ob(ectives) !ethod,-. Degree Performance AppraisalAssessment Centre Metho$An assessment Centre is a central location $here managers may come together to have their participation in 5o% related e8ercises evaluated %y trained o%servers! 6ostly used or e8ecutive hiring, assessment centers are no$ %eing used or evaluating e8ecutives or supervisory potential!Unclear !tan$ar$sUnclear !tan$ar$s4eniency or !trictness4eniency or !trictness5alo 3ffect5alo 3ffectPotential #ating !cale Appraisal ProblemsCentral 6en$encyCentral 6en$encyBiasBiasAppraising Performance- Problems an$ !olutions3otential rating scale appraisal pro%lemsHUnclear stan$ar$sH graphic rating scale could result in unair appraisals, as the traits and degrees o merit are am%iguous!5alo effectH the inluence o a rater/s general impression on rating o speciic Dualities!Central ten$encyH a tendency to rate all employees the same $ay, such as ratingall average!4eniency or strictnessH $hen a supervisor has a tendency to rate all su%ordinate either high or lo$!BiasH tendency to allo$ individual dierences to aect the appraisal rating!Appraising Performance- Problems an$ !olutions7no0 ProblemsControl 8utsi$e InfluencesControl 8utsi$e InfluencesUse the #ight 6oolUse the #ight 6ool5o0 to Avoi$ Appraisal Problems6rain !upervisors6rain !upervisors7eep a (iaryAppraising Performance- Problems an$ !olutions 1cont+27no0 limitations of the appraisal techni9uesH try to understand the potential pro%lems o the appraisal techniDues and pro%a%le solutions!Use right appraisal techni9uesH use right appraisal techniDues! Each has its o$n pros and cons!6rain supervisorsH train supervisors to reduce rating errors such as halo, leniencyBstrictness, and central tendency!Control outsi$e influence- minimi0e trade union B political pressure, and time constraints!7eep a $iary- 1eep a diary o employees/ perormance over the year!Appraising Performance- Problems an$ !olutions 1cont+2!atisfactory:Promotable!atisfactory:;ot PromotableUnsatisfactory:CorrectableUnsatisfactory:Uncorrectable6ypes of Appraisal Intervie0s6he Appraisal Intervie0&ppraisal intervie$ in $hich the supervisor and su%ordinate revie$ the appraisal and ma1e plans to remedy deiciencies and reinorce strengths!>our %asic types o appraisal intervie$sH1! #atisactory 4 promota%le,2! #atisactory 4 not promota%le ;perhaps no vacant post or promotion=,3! 'nsatisactory %ut correcta%le ;action plan or corrective actions=, and4! 'nsatisactory and uncorrecta%le ;dismiss the employee=!6he Appraisal Intervie0 1Cont+2 3reparation is essential!:evie$theemployee/s5o%description,compare perormance$iththestandards,andrevie$ employee/s previous appraisals!Auidelines or conducting the intervie$H1! Tal1 in terms o o%5ective $or1 data 2! .on/t get personal3! Encourage the person to tal14! .on/t tiptoe around ;ma1e sure the employee 1no$s $hat heBshe is doing right and doing $rong=!/ui$elines for Con$ucting an Intervie06al) in terms of ob,ective 0or) $ata+(on