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Performance appraisal

INTRODUCTION

A continual and troublesome question facing nurse managers today is why some

employees perform better than others. Making decisions about who performs what

tasks in a particular manner without first considering individual behaviour can lead to

irreversible long term problems. Each employee is different in many respects. A

manager needs to ask how such differences influence the behaviour and performance

of the job requirements. Ideally, the manager performs this assessment when the new

employee is hired. In reality, however, many employees are placed in positions

without the managers having adequate knowledge of their abilities and / or interests.

This often results in problems with employee performance, as well as conflict between

employees and managers.

MEANING

Performance appraisal means the systematic evaluation of the performance of an

expert or his immediate superior.

Performance appraisal is a method of evaluating the behavior of employees in

the work spot, normally including both the quantitative and qualitative aspects of job

performance. Performance here refers to the degree of accomplishment of the tasks

that make up an individual's job. It indicates how well an individual is fulfilling the

job demands. Often the term is confused with effort, but performance is always

measured in terms of results and not efforts.

The performance appraisal process includes day-to-day manager-employee

interactions (coaching, counseling, dealing with policy/procedure violations, and

disciplining); written documentation (making notes about an employee's behavior,

completing the performance appraisal form); the formal appraisal interview; and

follow-up sessions that may involve coaching and/or discipline when needed.

DEFINITION

Edwin b flippo, “performance appraisal is a systematic, periodic and so far as

humanly possible, an impartial rating of an employee’s excellence in matters

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excellence in matters pertaining to his present job and to his potentialities for a better

job”

The performance of an employee is compared with the job standards. The job

standards are already fixed by the management for an effective appraisal.

According to scott, clothier and spriegal, “performance appraisal is a record of

progress for apprentices and regular employees, as a guide in making promotions,

transfer or demotions, as a guide in making lists for bonus distribution, for seniority

consideration and for rates of pay, as an instrument for discovering hidden genius, and

as a source of information that makes conferences with employees helpful”.

OBJECTIVES OF APPRAISAL.

1. To determine the effectiveness of employees on their present jobs so as to decide

their benefits.

2. To identify the shortcomings of employees so as to overcome them through

systematic guidance and training.

3. To find out their potential for promotion and advancement.

PURPOSES AND BENIFITS

Performance appraisal can serve many purposes and has several benefits. Among them are:

1. To provide back up data for management decisions concerning salary standards, merit

increases, selection of qualified individuals for hiring, promotion or transfer, and

demotion or termination of unsatisfactory employees.

2. To serve as a check on hiring and recruiting practices and as validation of

employment tests.

3. To motivate employees by providing feedback about their work.

4. To discover the aspirations of employees and to reconcile them with the goals of the

organisation,

5. To provide employees with recognition for accomplishments,

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6. To improve communication between supervisor and employee, and to reach an

understanding on the objectives of the job,

7. To help supervisors observe their subordinates more closely, to so a better coaching

job, and to give supervisors a stronger part to play in personnel management and

employee development,

8. To establish standards of job performance.

9. To improve organisational development by identifying training and development

needs to employees and designing objectives for training programmes based on those

needs,

10. To earmark candidates for supervisory and management developments and

11. To help the organisation determine if it is meeting its goals.

IMPORTANCE

Now a day, the management uses performance appraisal as a tool. The scope of

performance appraisal is not limited to pay fixation and is enlarged to include many

decisions.

1. Performance appraisal helps the management to take decision about the salary

increase of an employee.

2. The continuous evaluation of an employee helps in improving the quality of an

employee in job performance.

3. The Performance appraisal brings out the facilities available to an employee,

when the management is prepared to provide adequate facilities for effective

performance.

4. It minimises the communication gap between the employer and employee.

5. Promotion is given to an employee on the basis of performance appraisal.

6. The training needs of an employee can be identified through performance

appraisal.

7. The decision for discharging an employee from the job is also taken on the

basis of performance appraisal.

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8. Performance appraisal is used to transfer a person who is misfit for a job to the

right placement.

9. The grievances of an employee are eliminated through performance appraisal.

10. The job satisfaction of an employee increases morale. This job satisfaction is

achieved through performance appraisal.

11. It helps to improve the employer and employee relationship.

CONCEPT OF PERFORMANCE APPRAISAL

1. The appraisal should be in writing and carried at least once a year.

2. The performance appraisal information should be shared with the employee.

3. The employee should have the opportunity to respond in writing to the

appraisal.

4. Employees should have a mechanism to appeal the results of the performance

appraisal.

5. The manager should have adequate opportunity to observe the employees job

performance during the course of the evaluation period.

6. Anecdotal notes on the employee’s performance should be kept during the

entire evaluation period.

7. Evaluator should be trained to carry out the performance appraisal process.

8. As for as possible, the performance appraisal should focus on employee

behaviour and results rather than on personal traits or characteristics.

CHARECTERISTICS AND OBSTACLES

The following characteristics are essential elements of effective performance appraisal:

1. The philosophy, purpose, and objectives of the organisation are clearly stated so that

performance appraisal tools can be designed to reflect these.

2. The purposes of performance appraisal are identified, communicated, and understood.

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3. Job descriptions are written in such a manner that standards of job performance can be

identified for each job.

4. The appraisal tool used is suited to the purposes for which it will be utilised and is

accompanied by clear instructions for its use.

5. Evaluators are trained in the use of the tool.

6. The performance appraisal procedure is delineated, communicated, and understood.

7. Plans for policing the appraisal procedure and evaluation appraisal tools are

developed and implemented.

8. Performance appraisal has the full support of top management.

9. Performance appraisal is considered to be fair and productive by all who participate in

it.

The principal obstacles to effective performance appraisal are:

1. Lack of support from top management.

2. Resistance on the part of evaluators because:

a. Performance appraisal demands too much of supervisors efforts in terms of time,

paperwork, and periodic observation of subordinates performance.

b. Supervisors are reluctant to play god by judging others.

c. Supervisors do not fully understood the purpose and procedures of performance

appraisal.

d. Supervisors lack skills in appraisal techniques.

e. Performance appraisal is not perceived as being productive.

3. Evaluation biases and rating errors, which result in unreliable and invalid ratings.

4. Lack of clear, objective standards of performance.

5. Failure to communicate purposes and results of performance appraisal to employees.

6. Lack of a suitable appraisal tool.

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7. Failure to police the appraisal procedure effectively.

PRINCIPLES OF PERFORMANCE APPRAISAL

1. Single employee is rated by two ratters. Then, the comparison is made to get

accurate rating.

2. Continuous and personal observation of an employee is essential to make

effective performance appraisal.

3. The rating should be done by an immediate superior of any subordinate in an

organization.

4. A separate department may be created for effective performance appraisal.

5. The rating is conveyed to the concerned employee. It helps in several ways.

The employee can understand the position where he stands and where he

should go.

6. The plus points of an employee should be recognised. At the same time, the

minus points should not be highlighted too much, but they may be hinted to

him.

7. The management should create confidence in the minds of employees.

8. The standard for each job should be determined by the management.

9. Separate printed forms should be used for performance appraisal to each job

according to the nature of the job.

KINDS OF PERFORMANCE APPRAISAL

There are many kinds of performance appraisal available. But the management

wants to adopt only one of the types of performance appraisal. The appraisal is

done adopting any one of the two approaches. These two approaches are traits and

results. The traits approach refers to appraising the employee on the basis of his

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attitudes. The result approach refers to appraising the employee on the basis of

results of his accomplishments of a job.

1. Ranking method

This method is very old and simple form of performance appraisal. An

employee is ranked one against the other in the working group under this method.

Example: if there are ten workers in the working group, the most efficient

worker is ranked as number one and the least efficient worker is ranked as number

ten.

Advantages

a. Each employee or worker can be compared with the other person.

b. A small organisation can get maximum benefits through the ranking

method.

Disadvantages

a. A big organisation is not able to get sizable benefits from the ranking

method.

b. Ranking method does not evaluate the individuality of an employee.

c. It lags objectivity in the assessment of employees.

2. Paired Comparison Method

This method is a part of ranking method. Paired comparison method has been

developed to be used in a big organisation. Each employee is compared with

other employees taking only one at a time. The evaluator compares two

employees and puts a tick mark against an employee whom he considers a

better employee. In the same way, an individual is compared with all other

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existing employees. Finally an employee who gets maximum ticks for being a

better employee is consider the best employee.

Advantages

a. This method is suitable for big organisations.

b. Individual traits are evaluated under this method.

Disadvantages

a. The understanding of this method is difficult one.

b. It involves considerable time.

3. Forced distribution method

A method which forces the rater to distribute the ratings of the overall

performance of an employee is known as forced distribution method. Group

wise rating is done under this method. This method is suitable to large

organisations, but the individual traits could not be appraised under this

method.

Example: a group of workers doing the same job would fall into the same

group as superior, at and above average, below average and poor. The rator

rates 15% of the workers as superior, 35% of the workers as at and above

average, 35% of workers as below average and 15% of workers as poor.

4. Grading

Certain categories of abilities or performance of employees are defined well in

advance to fall in certain grades under this method. Such grades are very good,

good, average, poor and very poor. Here the individual traits and characteristics

are identified.

5. Checklist

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The appraisal of the ability of an employee through getting answers for a

number of questions is called the method of check list. These questions are

related to the behaviour of an employee. The evaluation is done by a separate

department, but the duty of collection of checklist answers is given to a person

who is designated as a rator. The rator indicates the answers of an employee

against each question by putting a tick mark. There are two columns provided

to each question as yes or no.

A model check list is given below.

A. Is the employee satisfied with the job? Yes No

B. Does he finish the job accurately? Yes No

C. Does he respect the superiors? Yes No

D. Is he ready to accept responsibilities? Yes No

E. Does he obey the orders? Yes No

6. Forced choice method

A series of groups of statements are prepared positively or negatively under

this method, both these statements describe the characteristics of an employee,

but the rator is forced to tick any one of the statements either out of positive

statements or out of negative statements. The degree of description of the

characteristics of an employee varies from one statement to another.

The following are the positive statements;

a. The employee completes the job in time usually.

b. The employee has the ability to complete the job and complete the job as

and when there is a need.

The negative statements are also prepared. The final rating is done on the basis

of all such statements. But the ratter does not know the statements which are

for final rating.

7. Critical Incident method

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The performance appraisal of an employee is done on the basis of the incidents

occurred really to the concerned employee. Some incidents occurred due to the

inability of the employee, but the rating is done on all the events occurred in a

particular period.

Some of the events or incidents are given below.

a. Refused to co-operate with other employees

b. Unwilling to attend further training

c. Got angry over work or with subordinates

d. Suggested a change in the method of production

e. Suggested a procedure to improve the quality of goods

f. Suggestion of a method to avoid or minimize wastage, spoilage and scrap.

g. Refused to obey orders

h. Refused to follow clear cut instructions

8. Field review method

An employee’s performance is appraised through an interview between the

rator and the immediate superior or superior of a concerned employee. The

rator asks the superiors questions about the performance of an employee, the

personnel department prepares a detail report on the basis of this collected

information. A copy of this report is placed in the personnel file of the

concerned employee after getting approval from the superior.

The success of this type of appraisal method is based on the competence of the

interviewer.

9. Essay evaluation

With easy evaluation technique the nurse manager is required to describe the

employee’s performance over the entire evaluation period by writing a

narrative detailing the strength and weaknesses of the appraise. If done

correctly this approach can provide a good deal of valuable data for discussion

in the appraisal interview.

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COMPONENTS TO BE EVALUATED

Nurse engages in a variety of job related activities to reflect the multi

dimensional nature of the job. The performance appraisal form usually acquires a

nurse manager to rate several different performance dimension.

The components are

a. Use of nursing process

b. Professionalism

c. Maintaining safety

d. Continuing education

e. Initiative character.

STEPS FOR PEER REVIEW

1. The employee selects peers to conduct the evaluation. Usually two to four

peers are identified through a pre determined process.

2. The employee submits self evaluation port folio. The port folio might describe

how he or she met objectives and/or pre determined standards during the past

evaluation cycle. Supporting materials are included.

3. The peer evaluates the employee. This may be done individually or in a group.

The individuals are group then submit a written evaluation to the manager.

4. Manager and employee meet to discuss the evaluation. The manager’s

evaluation is included and objectives for the coming evaluation cycle are

finalised.

APPRAISAL INTERVIEW

Once the manager completes an accurate evaluation of performance, he/she should

arrange an appraisal interview. The appraisal interview is the first step in employee

development.

1. They provide feedback to an employee which enables him to improve his

performance in future.

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2. They help management to ascertain and assess the training needs of individual

employees.

3. They enable management to know the problems and difficulties experienced by

subordinates in discharging their responsibilities and also their suggestions for

removing these difficulties.

Types of appraisal interview

1. Tell and sell interview

It is based on the assumption that employees have some deficiencies but

they need to be convinced about these deficiencies. The purpose of this

interview is

a. To let the employee to know how well he is doing.

b. To draw up a plan of improvement for him.

c. To gain the employees acceptance of the evaluation.

2. Tell and listen interview.

The objective of this interview is to communicate the evaluation to the

employee and then listen sympathetically to his reactions. It consists of two

parts

The first part covers the strong and week points of the employee’s

performance.

The second part is used to explore thoroughly the employee’s feelings about

the evaluation.

3. Problem solving interview.

In this interview the aim is not appraisal but development of an employee.

Therefore, the interviewer takes himself out of his usual role as a judge and

puts himself in the role of a helper. He does not communicate the evaluation

to the employee. He does not communicate the evaluation to the employee.

He does not point out the areas of improvement; rather he stimulates the

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employee into thinking about improving his own performance. He does not

supply remedies or solutions but considers all ideas on job improvement

suggested by the employee. This he does by skilful questions

Example. Can you plan to deal with emergencies?

Key behaviours for an appraisal interview

1. Put the employee at ease

2. Clearly state the purpose of the appraisal interview

3. Go through the ratings one by one with the employee.

4. Draw out the employee reactions to the ratings.

5. Decide on specific ways in which performance areas can be strengthened.

6. Set a follow up date.

7. Express confidence in the employee.

METHODS OF APPRAISIGN PERFORMANCE

There is no one performance appraisal system, which will work equally well in all work

patterns, a number of techniques are available to managers and occasionally more than one

method is used. An organisation must decide whether it wants to measure in terms of

performance and what method of measurement works best. It can then experiment with that

method.

Several common methods of performance appraisal including their advantages and

disadvantages are described next.

When using the easy technique the evaluator writes a paragraph or more regarding a

particular employee’s strengths and potential. Essay content should reflect the employee’s

performance in relation to his job description. It may also include information about personal

characteristics which are pertinent to the employees job, such as the ability to work well with

others or motivation for professional growth. Well done essays have the advantage of

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providing an in-depth analysis of performance. Essays are also especially suitable for

identifying training and development needs and problem areas.

1. The disadvantages of essays are

2. They are time consuming

3. They tend to vary greatly in length and content

4. They are difficult to combine or compare since different essays cover different aspects

of performance.

The graphic rating scale requires the rater to assign a numerical value or letter grade to each

dimensions of performance to indicate judgements ranging from superior to unsatisfactory.

The advantages of the graphic rating scale are that it is generally more consistence and

reliable than the essay, it is usually acceptable to raters, and it is easy to construct. The

graphic rating scales primary disadvantages are that it does not yield the depth of information

attained in the essay approach, and its validity can be challenged unless the factors to be

rayed are chosen carefully and comprehensively.

The critical incidence technique operated by supervisors collecting and recording instances of

their subordinates are performing in ways that are of critical importance to the success or

failure of the job. These critical incidents are reviewed with the employees during a

scheduled feedback interview. The advantage of the critical incident technique is that the

evaluator rates performance rather than personality traits. In addition, this method is useful in

helping supervisors do a better coaching job and communicate performance appraisal

information to subordinates. The disadvantage of the critical incident technique is that if

requires the supervisors to write down incidents daily, or at least weekly which can be very

time consuming and sometimes difficult to accomplish.

LIMITATIONS OF PERFORMANCE APPRAISAL

The following are the limitations of performance appraisal:

1. The performance appraisal methods are unreliable.

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2. If an employee is well known to an employer, the performance appraisal may

not be correct.

3. The inability of supervision to appraise an employee does not bring out the

accurate performance appraisal.

4. Some qualities of an employee can not be easily appraised through any

performance appraisal method.

5. A supervisor may appraise an employee to be good to avoid incurring his

displeasure.

6. Uniform standards are not followed by the supervisors in the performance

appraisal.

POTENTIAL APPRAISAL PROBLEMS.

1. Leniency error: the tendency of a manager to over rate staff performance.

2. Recency error: the tendency of a manager to rate an employee based on recent

events rather than over the entire evaluation period.

3. Halo error: the failure to differentiate among various performance dimensions

when evaluating.

4. Ambiguous evaluation standards problem: the tendency of evaluators to place

differing connotations on rating scale words

5. Written comments problem: the tendency of evaluators does not include written

comments on appraisal forms.

CONCLUSION

A member in an organisation expresses an opinion or views about others. The opinion

may be about the way of mixing with others, way of working, character, etc. These

opinions become a basis for the appraisal of an employee. A superior has some

opinion about his sub-ordinates for determining many things like promotions, transfer,

pay fixation, etc.

Appraisal results in the comparison of more than one person in several directions with

others. The very purpose of appraising an employee is for the promotion of the

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employee. Performance is used to cover some other activities also. The appraisal is

done by the management periodically. The time and venue of the appraisal should be

known to both the employer and the employee. The appraisal avoids personal biases

and prejudices witch tend to lead to an incorrect appraisal of an employee.

BIBLIOGRAPHY

1. Ruth M Tappen. Nursing leadership and management. 3rd

ed. Philadelphia: FA Davis

Company; 1989.

2. BT Basavantappa. Nursing administration. 2nd

edition. New Delhi: jaypee publication;

2008.

3. Ann Marriner Tomey. Guide to nursing management. 4th

ed. St Luis: Mosby year

book; 1992.

4. Mamoria CB, Gankar SV. Personnel management. 25th

ed. Mumbai: Himalaya

Publishing House; 1994.

5. Janice RE, Celia LH. Managing and co-ordinating nursing care. 4th

ed. Philadelphia:

Lippincott Williams and Wilkins; 2005.

6. Eleanor JS, Philip JD. Effective leadership and management in nursing. 4th

ed.

California: Addison-Wesley; 2002.