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PERFORMANCE
MANAGEMENT
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FACTORS IMPACTING PERFORMANCE
f (indi. attributes + wk effort + orgn support)
f (ability + motivation + opportunity)
f (knowledge + motivation + feedback + leadership + personality)
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FROMPERFORMANCE APPRAISAL
TOPERFORMANCE MANAGEMENT
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Performance
ManagementProcess
Performance Planning &Goal setting
Observation ofperformance &continualFeedback
PerformanceAppraisal using apredeterminedformat
AppraisalInterview
Using theresults fordifferentorganizationaldecisions
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WHY? PURPOSE OF PM SYSTEM Strategic : help top mgmt achieve strategic objective Administrative : furnish valid information to make admin
decisions about employees Developmental : allow managers to coach employees Informational: inform employees about their performance
and expectations from them Organisational maintenance : provide information to be
used in HR planning and allocation Documentational : collect information that can be used for
different purposes
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WHEN?FREQUENCY OF APPRAISAL
Informal evaluation Continuous
Formal evaluation Annual or Biannual Anniversary date approach Focal point approach
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WHAT?
CRITERIA USED
Traits orcharacteristics
Actual performance
Training Needs Potential
Behaviour
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WHO ARE THE APPRAISERS?
Superior(s) Self Peers / Team members Subordinates Customers internal and external
Committee
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PERFORMANCE APPRAISAL METHODS
1 6
2
3
4
5
Alternationranking
Graphic ratingscale
PairedcomparisonForceddistributionCriticalincident
7
8
9
10
Behaviorally anchoredrating scales (BARS)
Narrative forms
MBO
Computerized and Web-based methods
Merged methods
Appraisal Methodologies
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Scale for Alternate Ranking of Appraisee
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Ranking Employees by the Paired Comparison Method
Note: + means better than.- means worse than. For each chart, add up the number of+s in each column to get the highest ranked employee.
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FORCED DISTRIBUTION ON A BELL-SHAPEDCURVE
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Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical IncidentsSchedule productionfor plant
90% utilization ofpersonnel and machineryin plant; orders deliveredon time
Instituted new productionscheduling system; decreasedlate orders by 10% last month;increased machine utilization inplant by 20% last month
Superviseprocurement of rawmaterials and oninventory control
Minimize inventory costswhile keeping adequatesupplies on hand
Let inventory storage costs rise15% last month; over-orderedparts A and B by 20%;under- ordered part C by 30%
Supervise machinerymaintenance
No shutdowns dueto faulty machinery
Instituted new preventativemaintenance system for plant;prevented a machine breakdownby discovering faulty part
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NARRATIVE FORMS
Final appraisals arefrequently written in anarrative form
Supervisor ratesemployee bydescribing thebehaviour related toeach factor
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GraphicRatingForm
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BEHAVIORALLY ANCHORED RATING SCALE(BARS) BARSis an appraisal tool that anchors a numerical rating scale with specific examples of
good or poor performance. Its proponents say it provides better, more equitable appraisals than do the other appraisal
tools. It takes more time to develop a BARS, but the tool has several advantages.
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Example ofBARS forDimensionSalesmanshipSkills
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MANAGEMENT BYOBJECTIVES
MBO refers to a organizational 6 step goal setting andappraisal program
Set theorganizations
goals
Set thedepartmental
goals
Discussdevelopmental
goals
Defineexpectedresults
Performancereviews
Providefeedback
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DEFINING THE EMPLOYEES GOALS ANDWORK STANDARDS
SetSMARTgoals
Assignchallenging/doable goals
Assignspecific
goals
Guidelines forEffective
Goal Setting
Assignmeasurable
goals
Encourageparticipation
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Appraisal Form for Assessing Both Competencies and Specific Objectives
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Appraisal Form for Assessing Both Competencies and Specific Objectives (contd)
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CHOOSING THE RIGHT APPRAISAL TOOL
Accessibility AccuracyEase-of-useEmployee
acceptance
Criteria for Choosing anAppraisal Tool
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THE APPRAISAL INTERVIEW
Satisfactory Promotable
Satisfactory Not Promotable
Unsatisfactory Correctable
Unsatisfactory Uncorrectable
Types ofAppraisal
Interviews
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PERFORMANCE FEEDBACK
Components of a FeedbackSystem
Data onActions DataEvaluationAction Basedon Evaluation
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