Human Resource Human Resource ManagementManagement

Lecture-26

Performance Appraisal

The ongoing process of evaluating and managing both the behavior and outcomes in the workplace.

Its goal is to provide an accurate picture of past and / or future employee performance.

To achieve this, performance standards are established.

Organization...Organization...

•WHYWHY is performance is performance measured? (use)measured? (use)

•WHATWHAT is measured? is measured? (criteria)(criteria)

•HOWHOW is it measured? is it measured?

•WHOWHO measures measures performance? performance?

•WHENWHEN is it is it measured? (timing)measured? (timing)

•WHYWHY is performance is performance measured? (use)measured? (use)

•WHATWHAT is measured? is measured? (criteria)(criteria)

•HOWHOW is it measured? is it measured?

•WHOWHO measures measures performance? performance?

•WHENWHEN is it is it measured? (timing)measured? (timing)

Objectives of Performance Appraisal

Evaluation Developmental

Evaluating Objectives

Staffing decisionsCompensation decisionsEvaluate selection system

Developmental Objectives

Performance feedback.Decision for future

performance.Identify training &

development needs.

What to evaluate?

TraitsBehaviorsTask Outcomes

Performance Standards

Expected levels of performanceBenchmarksGoalsTargets

Should relate back to the job description details

Characteristics of Well-defined Standards

RealisticMeasurableClearly understood

Appraisal process

Determine performance requirements.

Choose an appropriate appraisal method.

Train supervisors.

Discuss methods with employees.Appraise according to Job

standards.Discuss appraisal with employees.Determine future performance

goals.

Performance Appraisal methods

Rating ScalesGraphic Scales

Comparative MethodsRankingForced DistributionPaired Comparison

Critical Incidents Annual ReviewChecklistBehaviorally Anchored Rating Scale (BARS)

EssayMBOCombination Methods

Graphic Rating Scale

1(Low) 2 3 4 5 6 7 (High)

Quantity of WorkX

Simple Ranking

1. Aziz Ahmad

2. Summer Abbas

3. Arshad Butt

4. Hamid Ali

Forced Distribution on a Bell-Shaped Curve

Forced Distribution

Lowest Next Lowest Middle Next Highest Lowest Next Lowest Middle Next Highest

10% 20% 10% 20% 40% 20% 10% 40% 20% 10%

5 5 10 10 20 20 10 10 5 5

employeesemployees employees employees employees employees employees employees employees employees

BARS Dimension: Quality of Group Member Input

Effective

Ineffective

Group member has read all agreed-uponmaterial

Group member participates in discussions,though not always prepared

Group member does little work and offersno valuable ideas or feedback

5

4

3

2

1

Management-By-Objectives

GoalSetting

Planning Evaluation

Model of the MBO Process

Step 1: Setting Goals

Step 2: Developing Action Plans

Step 3: Reviewing Progress

Corporate Strategic Goals Departmental Goals Individual Goals

Step 4: Appraising Overall Performance

Appraisal of Overall Performance

Corrective Action

Review Progress

Action Plans

Be Supportive

Follow Up Day by Day

Establish Goals

Focus on Problem Solving

Minimize Criticism

Invite Participation

Express Appreciation

Ask for Self- Assessment

Change the Behavior, not

the Person

Appraisal Interviews

Who Should Do the Rating?

SupervisorsPeer

EvaluationCustomer/

Client Evaluation

Self RatingReverse

AppraisalTeam

AppraisalMultiple (360)

Supervisor

Subordinates

Peers

Team

CustomersSelf

superiors

subordinates

peers customers

self-ratingoutsideobservers

employee

360 Degree Feedback

Common Rater Errors in PA’s

Supervisory Bias

Halo EffectCentral

TendencyLeniency

StrictnessRecencyOverall

Rating