projrct on performence appraisal

7/31/2019 projrct on performence appraisal

1/29

INTRODUCTION TO THE TOPIC

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the

performance appraisal is measuring and improving the actual performance of

the employee and also the future potential of the employee.

"Performance appraisal is the systematic, periodic and an impartial rating of an

employees excellence in the matters pertaining to his present job and hispotential for a better job." Performance appraisal is a systematic way of

reviewing and assessing the performance of an employee during a given period

of time and planning for his future. It is a powerful tool to calibrate, refine and

reward the performance of the employee. It helps to analyze his achievements

and evaluate his contribution towards the achievements of the overall

organizational goals.

Organizational Strategy and Performance Appraisal

The performance appraisal system serves many organizational objectives and

goals. Besides encouraging high level of performance, the evaluation system is

useful in identifying employees with potential, rewarding performance

equitably and determining employees' needs for development. These are all the

activities that should support the organizations strategic orientation. Although

these activities are clearly instrumental in achieving corporate plans and long-

term growth, typical appraisal systems in most Organizations have been focused

on short-term goals. From the strategic management point of view,

organizations can be grouped into three categories defenders, prospectors and

analyzers. Performance appraisal has definite roles in all the three strategies.

Typically, defenders have a narrow and relatively stable product-market


2/29

domain. Because of this narrow focus, these organizations seldom need to make

major adjustments in their technology. They devote primary attention to

improving the efficiency of their existing operations. Because of theemphasis

building skills within the organization, successful defenders use performance

appraisal for identifying training needs. Performance appraisal is usuallymore

behaviour oriented.

OBJECTIVE:

This project aims at studying the performance appraisal techniques and its

application to enhance motivation at workplace. Performance appraisal is the

most significant and indispensable tool for the management as it provide useful

info for decision making in area of promotion and compensation reviews.

Thus broad objectives of the study include:

To know the present system of performance appraisal. To know the extent of effectiveness of appraisal system to enhance

motivation at workplace.

To identify and know the area for improvement system.Research Methodology:

The task of data collection begins after a research problem has been defined and

research design/plan chalked out. While deciding about the method of data

collection to be used for the study, the researcher should keep in mind two types

of data viz., primary and secondary.

The primary data are those which are collected afresh and for the first time, and

thus happen to be original in character.


3/29

The secondary data, on the other hand, are those which have already been

collected by someone else and which have already been passed through the

statistical process.

This is a desk project so the data collected is a secondary data not primary

data.

HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th

century can be traced to Taylor's pioneering Time and Motion studies. But it is

not very helpful, for the same may be said about almost everything in the field

of modern human resources management.

As a distinct and formal management procedure used in the evaluation of work

performance, appraisal really dates from the time of the Second World War -

not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a

very ancient art. In the scale of things historical, it might very well lay claim to

being the world's second oldest profession!

There is, A basic human tendency to make judgments about those one is

working with, as well as about oneself." Appraisal, it seems, is both inevitable

and universal. In the absence of a carefully structured system of appraisal,

people will tend to judge the work performance of others, including

subordinates, naturally, informally and arbitrarily. The human inclination to

judge can create serious motivational, ethical and legal problems in the

workplace. Without structured appraisal system, there is little chance of

ensuring that the judgments made in the organization will be lawful, fair,

defensible, accurate and desirable to others. Performance appraisal systems


4/29

began as simple methods of income justification. That is, appraisal was used to

decide whether or not the salary or wage of an individual employee was

justified. The process was firmly linked to material outcomes. If an employee's

performance was found to be less than ideal, a cut in pay would follow. On the

other hand, if their performance was better than the supervisor expected, a pay

rise was in order.

Little consideration, if any, was given to the developmental possibilities of

appraisal. It was felt that a cut in pay, or a rise, should provide the only required

impetus for an employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended;

but more often than not, it failed. For example, early motivational researchers

were aware that different people with roughly equal work abilities could be paid

the same amount of money and yet have quite different levels of motivation and

performance. These observations were confirmed in empirical studies. Pay rateswere important, yes; but they were not the only element that had an impact on

employee performance. It was found that other issues, such as morale and self-

esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively

rejected. In the 1950s in the United States, the potential usefulness of appraisalas tool for motivation and development was gradually recognized. The general

model of performance appraisal, as it is known today, began from that time.


5/29

Definitions and Concepts used

APPRAISAL PROCESS

Each step in the process is crucial and is arranged logically. The process as

shown in Fig. below is somewhat idea1ised. Many organizations make every

effort to approximate the ideal process, resulting in first-rate appraisal systems.

Unfortunately, many others fail to consider one or more of the steps and,

therefore, have less-effective appraisal system.

1. Objectives of Appraisal

Objectives of appraisal as stated above include effecting promotions andtransfers, assessing training needs, awarding pay increases, and the like. The

emphasis in all these is to correct problems. These objectives are appropriate as

long as the approach in appraisal is individual.

Appraisal in future, would assume systems orientations. In the systems

approach, the objectives of appraisal stretch beyond the traditional ones. In the

systems approach, appraisal aims at improving the performance, instead of


6/29

merely assessing it. Towards this end, an appraisal system seeks to evaluate

opportunity factors. These opportunity variables are more important than

individual abilities in determining work performance. In the systems approach

the emphasis is not on individual assessment and rewards or punishments. But it

is on how work the work system affects an individual. In the systems approach

the emphasis is not on individual assessment and rewards or punishments. But it

is on how the work systems affect an individuals performance.

2. Establish Job Expectations

The second step in the appraisal process is to establish job expectations. Thisincludes informing the employee what is expected of him or her on the job.

Normally, a discussion is held with his or her superior to review the major

duties contained in the job place offormal performance evaluation.

3. Design Appraisal Programme

Designing an appraisal Programme poses several questions which we need to

answers. They are: -

1. Formals versus informal appraisal

2. Whose performance is to be assessed?

3. Who are the raters?

4. What problems are encountered?

5. How to solve the problems?

6. What should be evaluated?

7. When to evaluate?

8. What methods of appraisal are to be used?


7/29

The Six Criteria For Assessing Performance

1. Quality:The degree to which the result or process of carrying out an activity

approaches perfection in terms of either conforming to some ideal way of

performing the activity, or fulfilling the activitys intended purpose.

2. Quantity:

The amount produced, expressed in monetary terms, number of units, or

number of completed activity cycles.

3. Timeliness:

The degree to which an activity is completed or a result produced, at the

earliest time desirable from the standpoints of both co-coordinating with the

outputs of others and of maximizing the time available for other activities.

4. Cost Effectiveness:

The degree to which the use of the organizations resources (e.g. human,

monetary, technological and material) is maximized in the sense of getting the

highest gain or reduction in loss from each unit or instance of use of a resource.

5. Need for supervision:

The degree to which a job performer can carry out a job function

without either having to request supervisory assistance or requiring supervisory

intervention to prevent an adverse outcome.

6. Interpersonal impact:

The degree to which as performer promotes feeling of self-esteem, and

goodwill.


8/29

The last to be addressed in the process of designing an appraisal programme is

to determine methods of evaluation. Numerous methods have been devised tomeasure the quantity and quality of employees job performance. Each of the

methods discussed could be effective for some purposes, for some

organizations. None should be dismissed or accepted as appropriate except as

they relate to the particular needs of the organization or of a particular type of

employees.

Broadly, all the approaches to appraisal can be identified into

(i) past-oriented methods, and(ii) Future-oriented methods.

Past-Oriented Methods

Rating Scales: This is the simplest and most popular technique for appraising

employee performance; the typical rating-scale system consists of several

numerical scales, each representing a job-related performance criterion such as

dependability, initiative, output, attendance, attitude, co-operation, and the like.

Each scale ranges from excellent to poor.The rater checks the appropriate

performance level on each criterion, then computes the employees total

numerical score. The number of points scored may be linked to salary increases,


9/29

whereby so many points equal a rise of some percentage

Rating scales offer the advantages of adaptability, relatively easy use and low

cost. Nearly every type of job can be evaluated in a short time, and the rater

does not need any training to use the scale. The disadvantages of this method


10/29

are several. The raters biases are likely to influence evaluation, and the biases

are particularly pronounced on subjective criteria such as cooperation, attitude

and initiative. Furthermore, numerical scoring gives an illusion of precision that

is really unfounded.

Checklist: Under this method a checklist of statements on the traits of the

employee and his or her job is prepared in 2 columnsviz., a Yes column and

a No column. All that the rater (immediate superior) should is tick the Yes

column if the answer to the statement is positive and in column No if the

answer is negative. A typical checklist is given in the table below. After ticking

off against each item, the rater forwards the list to the HR department. The HR

department assigns certain points to each Yes ticked. Depending upon the

number of Yes the total score is arrived at. When points are allotted to the

checklist, the technique becomes a weighted checklist. The advantages of as

checklist are economy, ease of administration, limited training of rater, and

standardization. The disadvantages include susceptibility to raters biases

(especially the halo effect), use of personality criteria instead of performance

criteria, misinterpretation of checklist items, and the use of improper weights by

the HR department.


11/29

Forced Choice Method: In this, the rater is given a series of statements about

an employee. These statements are arranged in blocks of 2 or more, and the

rater indicates which statement is most or least descriptive of the employee.

Typical statements are :

1. Learns fast _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ works hard

2. Work is reliable_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ performance is a good example

for

3. Absents often_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ others usually tardy.

As in the checklist method, the rater is simply expected to select the statements

that describe the rate. Actual assessment is done by the HR Department. This

approach is known as the forced choice method because the rater is forced to

select statements, which are readymade. The advantage of this method is the

absence of personal bias in rating. The disadvantage is that the statements may

not be properly framed they may not be precisely descriptive of the ratees

traits.

Field Review Method

This is an appraisal by someone outside the, assessors own department.

Usually someone from the corporate office or the HR department. The outsider

reviews Employee records and holds interviews with the ratee and his or her


12/29

superior. This method is primarily used for making promotional decision at the

managerial level.

Performance Tests and Observations

With limited number of jobs, employee assessment may be based upon a test of

knowledge or skills. The test may he of the paper-and-pencil variety or an actual

demonstration of skills. The test must he reliable and validated to be useful.

Even then, performance tests are apt to measure potential more than actual

performance. In order for the test to be job related, observations should he made

under circumstances likely to be encountered. Practicality may suffer if costs oftest development or administration arc high.

Essay Method

In the essay method the rater must describe the employee within a number of

broad categories such as :-

(i) The rater's overall impression of the employee's performance.(ii) The promo ability of the employee(iii) The jobs that the employee is now able or qualified to perform(iv) The strengths and weaknesses of the employee. and(v) The training and the development assistance required by the employee.Although this method may be used independently, it is most frequently found

in combination with others. It is extremely useful in filing information gapsabout the employees that often occur in the better structured checklist method.

The strength of the essay method depends on the writing skills and analytical

ability of the rater. However many raters do not have good writing skills. They

become confused about what to say. How much they should state and the depth

of the narrative.


13/29

Ranking Method

In this, the superior ranks his or her subordinates in the order of their merit,

starting from the best to the worst. All that the HR department knows is that A

is better than B. The 'how' and 'why' are not questioned, nor answered. No

attempt, is made to fractionalizes what is being appraised into component

elements. This method is subject to the halo and regency effects, although

rankings by two or more raters can be averaged to help reduce biases. Its

advantages include ease of administration and explanation.

Paired-comparison Method

Under this method the appraiser compares each employee with every other

employee one at a time. For example there are five employees named A, B. C.

D and E. The performance of A is first compared with the performance of B and

a decision is made about whose performance is better. Then A is compared with

C. D and E in that order. The same procedure is repeated for other employees.

The number of comparisons may be calculated with the help of a formula which

reads thus: N(N-1)/ 2 where N stands for the number of employees to be

compared.

Future-oriented Appraisals

Is it not enough if only the past performance is assessed? How an employee can

perform in the days to come is equally important. This can be assessed byfocusing on employee potential or setting future performance goals. The

commonly used future oriented techniques are MBO, psychological appraisals,

and assessment centres.


14/29

MANAGEMENT BY OBJECTIVES

It was Peter F. Drucker who first gave the concept of MBO to the world way

back in 1954 when his The Practice of Management was first published. The

MBO concept, as was conceived by Drucker, reflects a management philosophy

which values and utilizes employee contributions. Application of MBO in the

field of performance appraisal is a recent thinking.

Fits Steps in the MBO Process

How MBO works can be described in fits steps:

The first step is to establish the goals each subordinate is to attain. In some

Organizations, superiors and subordinates work together to establish goals. In

others. Superiors establish goals for subordinates. The goals typically refer to

the desired outcome to be achieved. These goals can then be used to evaluate

employee performance.

The second step involves setting the performance standard for the subordinates

in a previously arranged time period. As subordinates perform, they know fairly

well what there is to do, what has been done, and what remains to be done.

In the third step, the actual level of goal attainment is compared with the goals

agreed upon. The evaluator explores reasons for the goals that were not met and

for the goals that were exceeded. This step helps determine possible training

needs.

The final step involves establishing new goals and, possibly new strategies for

goals not previously attained. At this point, subordinate and superior

involvement in goal setting may change. Subordinates who successfully reach

the established goals may be allowed to participate more in the goal setting

process the next time. The process is repeated. The MBO process seems to be

most useful with managerial personnel 'and employees who have a fairly wide


15/29

range of flexibility and self-control in their jobs. Besides, when the result of an

MBO system are to be used to allocate organizational rewards, employees may

be less likely to establish challenging goals they are confident that they can

accomplish.

Psychological Appraisals

Large organization employs full-time industrial psychologists. When

psychologists are used for evaluations. They assess an individuals future

potential and past performance.The appraisal normally consists of in-depth

interviews, psycho1ogical tests. Discussions with supervisors and a review' ofother evaluations . The psychologist then write an evaluation of the employee's

intellectual, emotional, motivational and other-related characteristics that

suggest individual potential and may predict future performance. The evaluation

by the psychologist may be for a specific job opening for which the person is

being considered. Or it may be a global assessment of his or her future potential.

360-DEGREE FEEDBACK

As stated earlier, where multiple raters are involved in evaluating performance,

the technique is called 360 degree appraisal. The 360 degree technique is

understood as systematic collection of performance data on an individual or

group, derived from a number of stakeholders--the stakeholders being the

immediate supervisors. Team members, customers, peers, and self. In fact,

anyone who has useful information on how an employee does the job may be

one of the appraisers. The 360-degree appraisal provides a broader perspective

about an employee's performance. In addition, the technique facilitates greater

self-development of the employees. For one's development, multi-source

feedback is highly useful. It enables an employee to compare his or her

perceptions about self with perceptions of others. It is essential that the


16/29

organization create a non - threatening environment by emphasizing the positive

impact of the technique on an employee's performance and development.

1. Treat Employees as Individuals

Do we make assumptions about what motivates your employees? Some are

likely to be career focused, but others may see their work as a place to make

friends and earn money. Find out what motivates employees outside of work.

Some enjoy a challenge such as a sporting activity; others may like to be on

committees so they can use their organisational skills. Use their innate talents in

the workplace where possible to keep them motivated. Set goals which stretch

their abilities. Make goals SMART - specific, measurable, achievable, and

relevant and time framed.

2. Treat Employees with Respect

Get to know your employees on a personal level, and offer support when

needed, even if it is only to listen to their concerns. Ask your employees for

their opinions where possible, for example if you are changing systems or

introducing new equipment. Being involved in decision making is one of the

best motivation techniques. Catch your employees doing something well and

praise them - and if you do this in front of others, it makes the employee feel

even better. Giving employees recognition for their efforts will motivate them to

repeat the process.

3. Provide Opportunities for Employee Learning and Development

Encourage a learning climate, through structured on-the-job training

programmes, job transfers, inter-disciplinary projects and support for further


17/29

education. Aim to have your employees constantly learning new skills and

gaining new knowledge. This will reduce the level of stagnation that can easily

occur in a business. Promote from within where feasible - and invest the time

and support in developing employees so they can take on new opportunities.

Some managers worry that by offering a high level of training to employees,

they may leave the business for better opportunities elsewhere. Remember this

allows other employees to rise up and take their place! Also the word will

spread that you are a good employer - which may encourage a higher calibre of

external job applicants.

4. Make the Workplace a Fun Place

Having fun is one of the best motivation techniques. And small things can make

all the difference.

Bringing sweets to team meetings Sharing non-business news through e.g. newsletters Arranging activities such as lunchtime yoga sessions Surprising employees with a birthday cake Asking the employees for their opinion on what would make the

workplace a fun place!

Seven Steps to Enhance Employee Performance and AppraisalsBy Lois Moncrief

Performance appraisals give managers an excellent opportunity to engage

employees, enhance employee motivation, and turbo charger employee

performance.

Here are 7 Steps to take for better results:


18/29

1. Establish Performance Standards that are SMART (specific, measurable,

attainable, relevant, and time bound).

Meet with your employee at the beginning of the evaluation period to go over

the standards for the coming year. Ensure that your employee understands the

criteria that will be used for his evaluation. Allow your employee to make

comments and suggestions. When an employee is allowed to participate in the

process and the standards, he will have more buy in.

2. Progress Reviews Should Be Done Monthly or at Least Quarterly.

This can be a monthly report on progress on all performance standards

submitted by the employee and reviewed and approved by the manager. A

meeting to discuss the progress review is recommended.

You, as the manager, taking the time for a meeting and giving feedback put the

employee on notice that this is important to you and that you are holding him

accountable to the standards.

Take the time to be sure you know what the employee has really accomplished.Ask for proof in the form of copies and reports. Verify the progress

independently even if it is just spot checks.

Place any employee who falls short in one or more elements on a 90 day

Performance Improvement Plan before the end of the evaluation period.

When an employee knows he is being held accountable, the responsibility for

his success or failure is truly his.

3. Focus on Accomplishments not Activities.

Being busy is not the same as being productive.

If you are using competency based performance evaluations be sure to not

evaluate the skill or competency such as adaptable but the accomplishment

that resulted from the use of the skillhow being adaptable produced results for

the company bottom line.


19/29

4. Evaluate Fairly and Objectively.

Do not use subjective performance standards that are moving targets that you

can change at whim depending upon how you have predetermined the employee

should be evaluated. (Dont laugh. It happens.)

Do not use absolute standards. Do not use always or never. No one has

perfect performance that is an absolute. Example: Never makes a mistake.

Always arrives on time.

There needs to be an acceptablerange with an opportunity to exceed and a

possibility of not meeting.

Employees lose motivation when they can see a no win.

5. No Bad Surprises!

Never allow there to be any bad surprises in the final annual performance

evaluation. All employees should already have a good idea where they stand

before they receive the final evaluation.

If you have had progress reviews with employees, mentored them as needed,used SMART goals, and allowed opportunities to bring performance up to

meets (including a performance improvement plan) then each employee is truly

responsible for his outcome. His evaluation should not be a surprise to him.

This should avoid a situation for a surprised and angry employee to take

desperate and retaliatory action.

6. Deal with Failure in a Timely Manner.

If an employee is unable to meet the standards after you have regularly

reviewed his progress with him, mentored him, and placed him on a

performance improvement plan then it is time to demote, transfer to a lower job

he can do, or fire him.

Taking the necessary action helps all employees to be motivated when they see

there are consequences for non-performance.


20/29

7. Reward Your Stars Well.

It is important to reward those who have done well. Recognize their

accomplishments. This will encourage more outstanding work from them and

send a message to others that it pays to perform well.

Techniques That Can Be Used to Improve Performance Evaluations

By Luanne Kelchner, eHow Contributor

Performance evaluations can help an employer improve employee morale,increase production and provide important feedback to workers. Supervisors

and managers can ensure positive results from performance evaluations by

improving the techniques used to evaluate workers. The upper management of a

corporation can offer training and education to support efforts by direct

supervisors to improve the quality of performance appraisals.

Employee Input

Employee self-appraisals provide an area of discussion during a performance

appraisal. Both the supervisor and employee can offer viewpoints on the

worker's performance during the review period. Workers can highlight special

projects or work that helped the department improve. Supervisors can offer

viewpoints on specific areas the employee may not consider when performing a

self-appraisal.

Regular FeedbackPerformance appraisals improve when the worker receives regular feedback

during the review period. An evaluation should not contain any surprises for the

employee whether the performance is good or poor. Letting workers know

about a potential problem during the review period allows the worker to take


21/29

steps to improve performance. Positive feedback allows the employer to

motivate the worker before the formal evaluation.

Goal SettingDuring the employee evaluation, the supervisor and worker should set goals for

the employee to work toward during the period between reviews. This provides

the worker with something to strive toward in the workplace. Supervisors

should express an interest in the employee's success in the organization, which

can motivate workers.

Supervisor TrainingAn organization should train supervisors in providing motivation to workers

through performance appraisals. Training can teach supervisors to provide

constructive criticism to workers while encouraging them to continue improving

their performance. Supervisor training can also teach how to provide balance in

a performance review with both constructive criticism and positive feedback.

Peer EvaluationsManagers and supervisors can inquire about a worker's performance from

coworkers, clients and other managers who have contact with the employee.

This can help the supervisor provide a balanced viewpoint for a performance

appraisal. Peer evaluations also assist the supervisor who has little interaction

with workers.

Organizations need to employ valid and reliable instruments to measure its

performance and so with their members. Likewise, the policies that guide the

organization in assessing performance must be clear to all its members or else it

will be subject to various interpretations that could have adverse repercussions.


22/29

The right tools in measuring, analyzing information and making conclusions

must be utilized with utmost care to arrive at a reasonable decision.

The functions of performance appraisal are various. One, it helps in determininghow every member fulfils his or her role and responsibility. Another, it offers

insights how stakeholders and clients appreciate the services which the

organization members deliver. In addition, with the use of a valid and reliable

instrument, an employee can be appraised comprehensively avoiding the bias of

judging his performance based on isolated observations. With the generated

data, supervisors and managers can guide their employees in improving their

competencies for efficacy. Lastly, performance evaluation can be used as

determining instrument for the needed reinforcement to enhance the employees

self-esteem and motivations towards work.

With those purposes that evaluations serve for the organization and its

members, the choice of evaluation instrument is critical. In evaluation, both the

qualitative and quantitative aspect of analysis must be considered. When an

instrument is highly dependent on numerical data, decisions will have to be

based on the result of statistical analysis. When the instrument allows for

collecting qualitative data, those must be analyzed appropriately. In both

analyses, generalizations have to be grounded on the data.

Statistically, the levels of analysis can be descriptive, inferential to the rather

more complex analyses. These are essential in making informed decisions.

Qualitatively, the responses must fit those of the quantifiable obtained data.

Otherwise, there will be inconsistency that may lead to failure in making

informed decision. With numerical data, simple statistical analysis can be

valuable already. In doing so, one can have a grasp of the performance

holistically.


23/29

Performance has to be evaluated holistically, or else the evaluation fails. On the

merits of having high performance standards, with several components being

evaluated, specific weights must be apportioned to the components. This

reduces bias and so increases the validity and reliability of the evaluation

process. Hence, evaluators cannot just set their eyes on a fluke in the data when

everything else in the data says otherwise.

There is a joke among researchers and academics, numbers do not lie but the

interpreters of the data can do so. Statistical quandary can either result from

manipulation of data or from the incompetency due to lack of knowledge to the

side of the evaluator or researcher. If these happen, then the interpretations of

the evaluator can be judged a hoax.

Here is one case to illustrate statistical quandary. Assuming that a company is

using a valid and reliable instrument that combines both quantitative and

qualitative measures of constructs; that the performance evaluation is taken at

several times and data is obtained from various groups; that the performance is

evaluated in three different components; and that the policy states that an

employee to move from ranks must obtain a very satisfactory rating during the

period of evaluation; evaluators should be able to arrive at an informed

decision. XYZ Inc. has all those set in the system, but surprisingly its board of

evaluators could not decide whether to promote an employee to a higher rank

because with one group at one time in that year, the employee had anunsatisfactory rating.

In XYZ Inc., Zsazha, an employee, filed for a promotion. The board reviewed

her records but did not arrive at the point when they need to make a decision.

She was evaluated for the past year, 16 times, in three terms, among different

groups at different time intervals. This case can be considered like a panel

study.


24/29

She had 97% attendance efficiency. She had actively been involved in her

organization through her pro-bono services. She had continuing education and

professional development. She is even recognized in her participation as

resource person, speaker and researcher locally and internationally. She has

been serving the company for more than five years, and never actually got a

promotion coming from her supervisors initiative. But, becauseshe failed in one

out of the 16 evaluations, her request for promotion is still on the table of

discussion, yet in all the rest of her evaluations she scored very satisfactory to

outstanding.

Applying simple descriptive statistics, one should understand that the power of

one is insignificant to the value of 15 among 16 sets of evaluation data. The data

will nearly show that 6.25% of the respondents does not approve of her

performance. But the data also shows that over the entire whole group surveyed

appreciated her performance to be very satisfactory (93.75%). There are

actually more groups who gave Zhasha outstanding rating for her performance.

The presiding officer of the evaluation board argues that an employee to merit

promotion should have very satisfactory rating in all components during the

term of evaluation. To arrive at a qualitative interpretation of the value, the

statistician applies taking the general average or mean of the scale responses.

The general average of all the ratings in the term of evaluation says that Zhasha

had very satisfactory rating, but the evaluators eyes were so focused on thatsingle group that gave her an unsatisfactory rating.

With such kind of analysis, the other ratings have lost value. The judgment was

bias based on single isolated case. The role of evaluation using several cases, at

different terms has not served its cause. One can see then that the evaluation

used was not to obtain a comprehensive understanding of ones performance,

but or is it a mere instrument to find fault?


25/29

That single case should not be singled out nor should it be emphasized. But the

evaluators assume that is how the system is. If so, there is a problem with the

existing system, not in the evaluation instrument, not in its administration, but

in the system of thinking of those interpreting the data and those making

decisions out of the data that they have. The said case should call the attention

of the employer to reflect and consistently aspire to be more effective in the

work. Zhashas ratings were consistent, so far as the numbers tell throughout the

evaluation period, yes except at one single case. But the overall rating for that

term where the fluke is still says that she was very satisfactory in three

components being evaluated.

Probably, it is the definition of the component that causes the misinformation.

This is because the evaluators assume that the component refers to any of the

elements in the period of evaluation. That broad construct would then mean

to include timing, case, number of respondents, performance areas and others.

But it should not exclude the general rating or average score and interpretation.

Yet, the policies which are accessible to all employees do not tell in all

components and itdoes not define what components are and what they

include.

The illustration teaches us that policy ambiguity, the inadequate knowledge of

evaluators in examining and interpreting numerical data can result to a dilemma.

My basis of analysis was merely on the level of applying descriptive statistics.To arrive at ajustifiable conclusion to Zhashas case or at least a reasonable

decision, I challenge her evaluators to place the data in various statistical

analyses to test the hypothesis: That Zhashas performance during the period of

evaluation is not satisfactory.

I do see the merit of putting the highest benchmark because that will reinforce

productivity. Although, XYZ Inc., may be too idealistic to assume that an


26/29

employee can get 100% very satisfactory rating in all components. For Zhasha,

in the three panel surveys conducted she had received 100% very satisfactory

rating. However, that is not how the evaluators see the case because their

ignorance dictates them the very satisfactory performance is not statistically

significant and it is not consistent, since they are looking at a tree and assume

that it is the forest.

This case is so revealing that a company can strive to keep the strictest

measure without applying the least reasonable tool to come up with decisions

over elementary statistical figures. It is saddening that while the company

intends to maintain high standards, the standard of thinking of its administration

is to abide by the pre-existing system without actually interrogating how the

system really work for organizational productivity and the motivation of its

employees.

More than 90 percent of private sector organizations have some type of

performance appraisal system in place because they believe the systems are

effective.

PERFORMANCE APPRAISAL RESULTS-2005

80

987

3934

993

890

500

1000

1500

2000

2500

3000

3500

4000

4500

UNSATISFACTORY HAS POTENTIAL FULLY

SUCCESSFUL

SUPERIOR DISTINGUISHED


27/29

In September 2005, the Human Resources Department surveyedemployees, with 1,324 responses.

A clear majority of the survey participants responded favorably to theEmployee Performance Appraisal Process, including the appraisal form

and each phrase of the process.

The rating response ranged from 56% to 85% favorable regarding thePerformance Planning and Performance Review Phases of the

process.

Survey results suggest that more training and coaching are needed toincrease the number of supervisors conducting performance discussions

throughout the year and providing feedback or demonstrating ways to

improve employee performance.

The analysis and interpretation of data on study of performance appraisal

techniques and its application to enhance motivation at workplace led to the

following conclusions:

1. The promotions rule though defined need to be communicated to everyemployee before appraisal process is done and also justify the promotion as a

result of the appraisal. That the promotion policy followed differs at different

position and category. Uniformity has to there in the implementation of

promotion policy at all levels.


28/29

2. The appraisal outcome has to be used frequently for the purpose of rewardon performing well together with the feedback on the performance. Also

when performance goes down employee has to be given feedback and

motivated to do better.

3. The organization at present doesnt provide career planning and careersuggestion plans.

4. In organizations feedback is being provided to the employee though on a fewoccasion.

5. Performance appraisal in maximum organizations is done on an annual basis.

6. More emphasis is on training and job rotation as remedial measures.7. The mechanism of counselling pre-performance and post-performance is not

in practice at the organization in strict term.

The scope of any performance appraisal should include the following: To know

whether employees are satisfied with the policies of organization & provideemployees with a better understanding of their role and responsibilities; increase

confidence through recognizing strengths while identifying training needs to

improve weaknesses; improve working relationships and communication

between supervisors and subordinates; increase commitment to organizational

goals; develop employees into future supervisors; assist in personnel decisions

such as promotions or allocating rewards; and allow time for self-reflection,

self-appraisal and personal goal setting.


29/29

The data collected is taken from following sites and some books like:

Some sites name:

http://howtomotivateemployeesnow.com http://eHOW.com http://MANAGEMENTPARADISE.com http://www.leadership-and-motivation-training.com/ http://en.wikipedia.org http://rodrigo75.wordpress.com/

Some books name:

Organizational Behaviour by Robbins.
http://howtomotivateemployeesnow.com/http://howtomotivateemployeesnow.com/http://ehow.com/http://ehow.com/http://managementparadise.com/http://managementparadise.com/http://www.leadership-and-motivation-training.com/http://www.leadership-and-motivation-training.com/http://en.wikipedia.org/http://en.wikipedia.org/http://rodrigo75.wordpress.com/http://rodrigo75.wordpress.com/http://rodrigo75.wordpress.com/http://en.wikipedia.org/http://www.leadership-and-motivation-training.com/http://managementparadise.com/http://ehow.com/http://howtomotivateemployeesnow.com/

projrct on performence appraisal

Documents

Transcript of projrct on performence appraisal