Performance appraisal in Human Resource Management

PREJI M P, ASSISTANT PROFESSOR, IITTM, BHUBANESWAR.

Performance Appraisal

Preji M P,Assistant Professor, IITTM, Bhubaneswar 2

What Appraisal Is

Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related

behaviors and their potential for greater contributions to the organizations


Purpose of Appraisal The purpose of appraisal is to

ascertain an individuals present and the future value of the organization.

Employee’s present value is assessed by his past performance,

while future value is determined by his

present potential. A good appraisal will bring into light these aspects


Critical aspects

Performance must be linked to results

Performance is tied to results ( that produces results)

Behavior can be active or passive (not doing something can also bring results)


Some dilemmas Many performance appraisal system

confuse performance with personality traits ( honesty, punctuality, patience etc)

However personality traits should be a function of recruitment and selection and not performance appraisal. A person with out those traits should not be hired at all.


Performance appraisal

Performance appraisal on the other hand is concerned with behaviors that effect performance

Behaviors such as punctuality, cost consciousness and sociability are important but it is the result of those behaviors that matters in a performance appraisal and not the behaviors themselves.


Concept of Performance appraisal To summarize performance appraisal

is concerned with work that is performed and not the characteristics of the person who is performing it


Benefits of Performance appraisal Performance appraisal feed other

development programs such as career plans and succession plans

It also helps in reviewing and improving upon recruitment and selection methods adopted

It is used to compensate and reward ( increments, incentives, bonus etc)

Ascertain staffing decisions such as promotions, transfers etc


Long term benefits Performance management

Relative value of the individuals contribution to the organizational goals

Performance improvement It encourages continued successful

performance and identifies weaknesses for improvement in order that employee becomes more effective and productive

Compensation It rewards employee according to their

performance


Long term benefits Identifies potential

It identifies employees that can be developed for higher responsibilities

Communication It establishes a dialogue between the

superior and subordinate on a regular basis to improve on contributions

Feedback It let an employee know what they are

doing. This gives emotional security and a chance to make corrections if needed while taking pride of achievements


Long term benefits

Development It provides the framework for purposeful

human developmental inputs. Human resource planning

It helps the organization take stock of human capabilities and the knowledge and skill wealth that it has


Techniques of appraisals

Management by objectives ( MBO) 180 degree and 360 degree

assessment Appraisal interview’s Performance counseling


MBO MBO is an approach in management.

It puts goals and objectives at the heart of the style of management. The philosophy of the people is All people are responsible Individuals and organizations can grow

together Assessment of performance should be

transparent Human potential is vital for success


MBO The main fault of other appraisal

system is the element of subjectivity like trait method.

If it is based on MBO – it will be linked to outcomes resulting in finding answers to questions like Were the standards not met? Was there a loss in revenue ? Were services not delivered on time? Was there any wastage of money and if

so how much and because of what?


180 DEGREE & 360 DEGREE This system (180 degree) believes that

every individual is responsible to give the same amount of attention to internal customers (colleagues) as they would do it for external customers

This has become a formula for team work. It believes that internal people who are the

most influenced by a job position must be able to give a feedback on whether they are getting the right service and

cooperation from a job position that helps them to perform high standards


CONTD:- Eg:- 180 degree

Front office receptionist – coordinates with the telephone operator, reservationist, front office cashier, housekeeping supervisor and bell captain.

180 degree assessment system makes peers assess his/her performance in addition to their immediate superior.

it is considered as a reasonable stepping stone to the 360 degree system.


360 degree appraisal


360 Degree

360 degree assessment includes the subordinates as well. Through this a person’s leadership is also assessed.

An organization's culture need to be matured enough and transparent to adopt a 360 degree assessment because nobody normally likes to be assessed by juniors.


“Full-circle” feedback 360 degree feedback is also known as

‘full-circle’ feedback, multi-rater feedback, upward & downward appraisal and peer review.

It involves being appraised by ‘multi-sources’ such as peers, subordinates, managers, customers, as well as self.


Rationale The rationale behind the use of 360-degree

feedback is that it is hard to discount the views of just one person, which normally represented by a line manager.

It is normally used as a learning and development aid in order to give individuals better information about their skills,

performance, and working relationships than more traditional appraisal arrangements based on line managers’ assessment alone. This is all well and good if 360 degree done correctly


APPRAISAL INTERVIEW The appraisal interview is the

occasion when a superior and subordinate meet to

discuss the performance of the subordinate in a given period.

To make the meeting successful, both the superior and subordinate have to prepare for it believing that it is an important moment for both- the individual and the

organization.


SUPERIOR’S TASK Inform the subordinate of the date

and time of the interview. The time must be convenient to both as neither must be under pressure.

Advice the subordinate to come to the meeting with their self assessment

Honour the allotted interview time Review personally the performance

record of the individual


Subordinate’s Task

Review the objectives set and evaluate the achievements in the past performance period. List the outstanding achievements in self assessment forms.

List reasons for not meeting some of the targets set.

Complete the self assessment forms which also elicits the career aspirations, strengths, areas of improvement, training and development required.


The appraisal Interview

Typically the interview will have the following phases. Re explaining the purpose of meeting Discussing performance Identifying the strengths and areas of

improvement Reviewing career aspirations and

recording development plans


Emphasis will be on

It is meant to review past and record future directions

All about individual and how to improve one’s potential

It will be an open discussion Disagreement will be recorded


How It goes on Normally an appraisal interview

should go on smoothly because the superior and subordinates are in close communication during the performance year.

Quarterly reviews and mid-yearly reviews reduce the element of shock

Subordinate is given a chance to discuss their performance first based on self assessment form. Both then tally their perception against performance.


How it works There should be little difference/

disagreement if performance is supported with actual data

against standards. The superior will discuss the rating that they

are going to give. Disagreements if any, will be recorded for review by second appraiser.

Both will finally review the career plans by recording the programes (training, coaching inputs , self learning) attended and future inputs required against expected performance


PERFORMANCE COUNSELLING

Performance counseling is a one –one interaction between an

employee and the counselor. The basic objective is to improve the

performance and address the grievance if any

Such a meeting takes place if a deficiency in the way employee is performing is identified.


The sources The deficiency in employee

performance can be reported from any of the following sources The supervisor’s opinion A shortfall in agreed outcomes Customer complaints Colleagues grievances Procedural irregularities Equipment abuse


The scenario

Typically most employees tend to blame Boss Non cooperation from team members Faulty systems and procedures Faulty equipment Unreasonable guests


Options for improving performance Coaching in some skills Self- learning using recommended

reading Cross training Team building Attending training programs


DEMOTIVATION ?

The employee and the counselor should be able to identify exactly the reason for

demotivation and jointly work on resolving hurdles.

There must be time bound meetings with follow up meetings.


Some reasons for de motivation Lack of capability to do job Lack of challenges in the job Lack of recognition and attention Lack of future for advancement Inadequate support Poor team work


REWARD AND RECOGNITION SCHEMES A reward is a physical token of

appreciation of service, effort or achievement . Rewards can be in the form of cash or in the form of non cash

Recognition is an official praise of service, effort or achievement.

An incentive is not considered as a reward most of the time as it is manipulative. Often uncommitted workforces needed incentives to perform.


Non Cash Rewards

The non cash awards can be Free vacation Free meal Memberships Write off loans


RECOGNITION

Recognition will always be done in public. It raises the status of the individual among his peers. It also raises his self esteem A simple pat on the shoulder Words of praise Certificates of recognition Gifts of recognition Trophies of recognition

Performance appraisal in Human Resource Management

Education

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