Performance appraisal
Introduction
Appraisal of performance is widely used in society. Parents evaluate their children, teachers evaluate their students and employers evaluate their employees.
Meaning
Performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development.
According to flippo “Performance appraisal is the systematic, periodic and impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.”
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Its beneficial for you and me both.
Features of performance appraisal
1. Performance appraisal is a process of consisting of a series of a steps.
2. It is the systematic examination of an employee’s strengths and weakness in terms of the job.
3. Performance appraisal is a scientific or objective study. Formal procedures are used in this study.
4. It is an ongoing or continuous process where in the evaluations are arrange periodically according to a definite plan.
5. The main purpose of Performance appraisal is to secure information necessary for making objective and correct decisions on employees.
Objectives
1. To provide feedback to employees so that they come to know where they stand and can improve their job performance.
2. To provide a valid database for personal decisions concerning placement, pay, promotion, transfer, punishment etc.
3. To diagnose strength and weakness of individuals so as to identify further training needs.
4. To provide coaching, counseling, career planning and motivation to subordinates.
5. To develop positive superior-subordinate relations and thereby reduce grievance.
6. To facilitate research in human resource planning.
7. To test the effectiveness of recruitment, selection, placement and induction programme.
Performance appraisal process (elements)
1. Establishing performance standards
The appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria is specified with the help of job analysis which reveals the contents of a job. The criteria should be clear, objective and in writing. It should be discussed with the supervisors to ensure that all the relevant factors have been included. Where the output can be measured the criteria is clear. If work performance cannot be measured, the personal characteristics which contributes to employees performance must be determined. The characteristics include work quality, honesty and reliability, cooperation and teamwork, job knowledge, initiative, leadership, safety etc. these standards should be indicated on the appraisal form.
2. Communicating with the standards
The performance standards specified in the first step are communicated and explained to employees so that they come to know what is expected of them. The reaction of employees to the standards should be maintained. It necessary standards may be revised or modified in the light of feedback obtained from the employees and evaluators.
3. Measuring performance
Once the performance standards are specified and accepted, the next step is the measurement of actual performance. This requires choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting information on results achieved.
4. Comparing the actual with standards
Actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviations which may be positive or negative. Positive deviations occur when the actual performance exceeds the standards. On the other hand, excess of standard performance over the actual performance represent negative.
5. Discussing the appraisal
The results of the appraisal are communicated to and discussed with the employees. Along with the deviations, the reason behind them are also analyzed discussed. Such discussion will enable an employee to know his weakness and strengths. Therefore, he will be motivated to improve himself.
6. Taking corrective actions
Through mutual discussion with employees, the steps required to improve performance are identified and initiated. Training, coaching, counseling etc. are examples of corrective actions that help to improve performance.
Problems (limitations) in performance appraisal
1. Lack of reliability
It implies stability and consistency in the measurement. Lack of consistency overtime and among different raters mat reduce the reliability of performance appraisal.
2. Incompetence
Raters may fail to evaluate performance accurated due to lack of knowledge and experience. Post appraisal interview is often handled inefficiently.
3. Negative approach
Performance appraisal loses most of its value when the focus of management is on punishment rather than on development of employees.
4. Multiple objectives
Raters may get confused due to two many objectives or unclear objectives of performace appraisal.
5. Resistance
Trade unions may resist performance appraisal on the ground that it involves discrimination among its members.
6. Lack of knowledge
The staff appraising performance of employees might not be trained and experienced enough to make correct appraisal.
Essential of good appraisal system
1. Easy to understand and administer.
2. Open and participative
3. Valid and reliable.
4. Built and incentive
5. Contain a follow-up mechanism for identifying employee’s growth needs.
6. Periodically reviewed and updated.
Models or techniques of performance appraisal
Modern techniques
1. Assessment centre
An assessment center is a group of employees drawn from different work units. Those employees work together on an assignment similar to the one they would be handling when promoted. Evaluators observe and rank the performance of all the participants. Experienced managers with proven ability serve as evaluators.
Purpose
To measure potential for first level supervision, sales and upper management positions and also for higher level of management for development purposes.
To determining individual training and development needs of employees.
To select recent college students for entry level positions.
To provide more accurate human resource planning information.
To make an early determination of potential.
To assist in implementing affirmative action goals.
Human resource accounting
Human resources are valuable asset of any organization. This asset can be valued in term of money. When competent, and well trained employees leave an organization the human asset is decreased. Under this method, performance is judged in terms of cost and contribution of employees. Cost of human resource consist of expenditure on human resource planning, recruitment, selection, induction, training and compensation etc. contribution of human resources is the money value of labour productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees.
Appraisal by results or MBO
The concept of MBO is developed by PETER DRUCKER in 1954. He called “management by objective and self control”. MBO has been defined as “a process where by the superior and subordinate managers on an organization. Jointly identify its common goals, define each individual’s major areas of responsibility in terms of result expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members.
360 degree appraisal technique
It involves evaluation a manager by everyone above, alongside and below him. Structured questionnaire are used to collect responses about a manager from his bosses, peers and subordinates. Several parameters relating to performance and behaviour are used in the questionnaires. The 360-degree appraisal has four integral components;
Self-appraisal
Superior appraisal
Subordinate’s appraisal
Peer appraisal
Traditional methods
Confidential reports
This is a traditional form of appraisal used in most government organization. A confidential report is a report prepared by the employee’s immediate superior. It covers the strength and weakness, main achievements and failure, personality and behaviour of the employee. It involves a lot of subjectivity because appraisal is based on impressions rather than on data.
Free from or essay method
Under this method, the evaluators writes a short essay on the employee’s performance on the basis of overall impression. The description are expected to be as factual and concrete as possible. An essay can provide a good deal of information about the employees.
Limitations
It involves bias as evaluation is not based on specific performance dimensions related to the job.
The quality of appraisal depends on the writing ability of the evaluator rather than on employee performance.
It is very time consuming method of appraisal.
Straight ranking method
In this technique, the evaluators assign relative ranks to all the employees in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance.
Paired comparison
This is modified form of straight ranking herein, each employee is compared with all the others in pairs one at a time. The number of items an employee is judged better than the other determines his rank. Comparisons is made on the basis of overall performance.
Forced distribution
In this technique the rater is required to distribute his rating in the forms of a normal frequency distribution. The purpose is to eliminate the rater’s bias on central tendency. Here also ranking technique is used.
This method is highly simple to understand and easy to apply.
It helps to reduced bias involved in straight ranking and paired comparison.
Graphic rating scales
It is numerical scale indicating different degrees of a particular trait. The raters is given a printed form for each employee to be rated. The from contain several characteristics relating to the personality and performance of employees. Intelligence, quality of work, leadership skills, judgement etc. are some of those characteristics. The rater record his judgement on the employee’s trait on the scale. The numerical points given to an employee are added up to find out his overall performance a standing in the group.
Scales are two types
Continuous: - the degree of a trait are measured numbers ranging from 0 to 5
Whereas in a discrete or discontinuous scale appropriate boxes or squares are used.
7. Checklist
A checklist is a list of statements that describe the characteristics and performance of employees on the job. The rater checks to indicate if the behaviour of an employee is positive or negative to each statement. The performance of an employee is rated on the basis of number of positive checks. There are three type of checklist.
Simple: - where in equal importance is given to each statement.
Weighted: - in which weights are assigned to different statements to indicate their relative importance.
Forced choice: - where in five statements are given for each trait, two most descriptive statements, two least descriptive statements and one is neutral statement. The aim is to minimize the rater’s bias.
Critical incidents method
In this method, the supervisor keeps written record of critical events and how different employees behaved during such events. The rating on an employee depends on his positive or negative behaviour during these events.
Graphical appraisal method
Under this method, a group of evaluators assesses employees. The group determines the standards of performance for the job, measure actual performance of an employee, analyses the causes of poor performance and offer suggestions for improvements in future. Due to multiple evaluators personal bias is minimized but it is very time consuming.
Field review method
In this method a training officer from the human resource department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these questions a supervisor gives his opinions about the level of performance has subordinates.
Introduction
Appraisal of performance is widely used in society. Parents evaluate their children, teachers evaluate their students and employers evaluate their employees.
Meaning
Performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development.
According to flippo “Performance appraisal is the systematic, periodic and impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.”
if you like my post then pls click on advertisment and add as you in my follower list.
Its beneficial for you and me both.
Features of performance appraisal
1. Performance appraisal is a process of consisting of a series of a steps.
2. It is the systematic examination of an employee’s strengths and weakness in terms of the job.
3. Performance appraisal is a scientific or objective study. Formal procedures are used in this study.
4. It is an ongoing or continuous process where in the evaluations are arrange periodically according to a definite plan.
5. The main purpose of Performance appraisal is to secure information necessary for making objective and correct decisions on employees.
Objectives
1. To provide feedback to employees so that they come to know where they stand and can improve their job performance.
2. To provide a valid database for personal decisions concerning placement, pay, promotion, transfer, punishment etc.
3. To diagnose strength and weakness of individuals so as to identify further training needs.
4. To provide coaching, counseling, career planning and motivation to subordinates.
5. To develop positive superior-subordinate relations and thereby reduce grievance.
6. To facilitate research in human resource planning.
7. To test the effectiveness of recruitment, selection, placement and induction programme.
Performance appraisal process (elements)
1. Establishing performance standards
The appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria is specified with the help of job analysis which reveals the contents of a job. The criteria should be clear, objective and in writing. It should be discussed with the supervisors to ensure that all the relevant factors have been included. Where the output can be measured the criteria is clear. If work performance cannot be measured, the personal characteristics which contributes to employees performance must be determined. The characteristics include work quality, honesty and reliability, cooperation and teamwork, job knowledge, initiative, leadership, safety etc. these standards should be indicated on the appraisal form.
2. Communicating with the standards
The performance standards specified in the first step are communicated and explained to employees so that they come to know what is expected of them. The reaction of employees to the standards should be maintained. It necessary standards may be revised or modified in the light of feedback obtained from the employees and evaluators.
3. Measuring performance
Once the performance standards are specified and accepted, the next step is the measurement of actual performance. This requires choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting information on results achieved.
4. Comparing the actual with standards
Actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviations which may be positive or negative. Positive deviations occur when the actual performance exceeds the standards. On the other hand, excess of standard performance over the actual performance represent negative.
5. Discussing the appraisal
The results of the appraisal are communicated to and discussed with the employees. Along with the deviations, the reason behind them are also analyzed discussed. Such discussion will enable an employee to know his weakness and strengths. Therefore, he will be motivated to improve himself.
6. Taking corrective actions
Through mutual discussion with employees, the steps required to improve performance are identified and initiated. Training, coaching, counseling etc. are examples of corrective actions that help to improve performance.
Problems (limitations) in performance appraisal
1. Lack of reliability
It implies stability and consistency in the measurement. Lack of consistency overtime and among different raters mat reduce the reliability of performance appraisal.
2. Incompetence
Raters may fail to evaluate performance accurated due to lack of knowledge and experience. Post appraisal interview is often handled inefficiently.
3. Negative approach
Performance appraisal loses most of its value when the focus of management is on punishment rather than on development of employees.
4. Multiple objectives
Raters may get confused due to two many objectives or unclear objectives of performace appraisal.
5. Resistance
Trade unions may resist performance appraisal on the ground that it involves discrimination among its members.
6. Lack of knowledge
The staff appraising performance of employees might not be trained and experienced enough to make correct appraisal.
Essential of good appraisal system
1. Easy to understand and administer.
2. Open and participative
3. Valid and reliable.
4. Built and incentive
5. Contain a follow-up mechanism for identifying employee’s growth needs.
6. Periodically reviewed and updated.
Models or techniques of performance appraisal
Modern techniques
1. Assessment centre
An assessment center is a group of employees drawn from different work units. Those employees work together on an assignment similar to the one they would be handling when promoted. Evaluators observe and rank the performance of all the participants. Experienced managers with proven ability serve as evaluators.
Purpose
To measure potential for first level supervision, sales and upper management positions and also for higher level of management for development purposes.
To determining individual training and development needs of employees.
To select recent college students for entry level positions.
To provide more accurate human resource planning information.
To make an early determination of potential.
To assist in implementing affirmative action goals.
Human resource accounting
Human resources are valuable asset of any organization. This asset can be valued in term of money. When competent, and well trained employees leave an organization the human asset is decreased. Under this method, performance is judged in terms of cost and contribution of employees. Cost of human resource consist of expenditure on human resource planning, recruitment, selection, induction, training and compensation etc. contribution of human resources is the money value of labour productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees.
Appraisal by results or MBO
The concept of MBO is developed by PETER DRUCKER in 1954. He called “management by objective and self control”. MBO has been defined as “a process where by the superior and subordinate managers on an organization. Jointly identify its common goals, define each individual’s major areas of responsibility in terms of result expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members.
360 degree appraisal technique
It involves evaluation a manager by everyone above, alongside and below him. Structured questionnaire are used to collect responses about a manager from his bosses, peers and subordinates. Several parameters relating to performance and behaviour are used in the questionnaires. The 360-degree appraisal has four integral components;
Self-appraisal
Superior appraisal
Subordinate’s appraisal
Peer appraisal
Traditional methods
Confidential reports
This is a traditional form of appraisal used in most government organization. A confidential report is a report prepared by the employee’s immediate superior. It covers the strength and weakness, main achievements and failure, personality and behaviour of the employee. It involves a lot of subjectivity because appraisal is based on impressions rather than on data.
Free from or essay method
Under this method, the evaluators writes a short essay on the employee’s performance on the basis of overall impression. The description are expected to be as factual and concrete as possible. An essay can provide a good deal of information about the employees.
Limitations
It involves bias as evaluation is not based on specific performance dimensions related to the job.
The quality of appraisal depends on the writing ability of the evaluator rather than on employee performance.
It is very time consuming method of appraisal.
Straight ranking method
In this technique, the evaluators assign relative ranks to all the employees in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance.
Paired comparison
This is modified form of straight ranking herein, each employee is compared with all the others in pairs one at a time. The number of items an employee is judged better than the other determines his rank. Comparisons is made on the basis of overall performance.
Forced distribution
In this technique the rater is required to distribute his rating in the forms of a normal frequency distribution. The purpose is to eliminate the rater’s bias on central tendency. Here also ranking technique is used.
This method is highly simple to understand and easy to apply.
It helps to reduced bias involved in straight ranking and paired comparison.
Graphic rating scales
It is numerical scale indicating different degrees of a particular trait. The raters is given a printed form for each employee to be rated. The from contain several characteristics relating to the personality and performance of employees. Intelligence, quality of work, leadership skills, judgement etc. are some of those characteristics. The rater record his judgement on the employee’s trait on the scale. The numerical points given to an employee are added up to find out his overall performance a standing in the group.
Scales are two types
Continuous: - the degree of a trait are measured numbers ranging from 0 to 5
Whereas in a discrete or discontinuous scale appropriate boxes or squares are used.
7. Checklist
A checklist is a list of statements that describe the characteristics and performance of employees on the job. The rater checks to indicate if the behaviour of an employee is positive or negative to each statement. The performance of an employee is rated on the basis of number of positive checks. There are three type of checklist.
Simple: - where in equal importance is given to each statement.
Weighted: - in which weights are assigned to different statements to indicate their relative importance.
Forced choice: - where in five statements are given for each trait, two most descriptive statements, two least descriptive statements and one is neutral statement. The aim is to minimize the rater’s bias.
Critical incidents method
In this method, the supervisor keeps written record of critical events and how different employees behaved during such events. The rating on an employee depends on his positive or negative behaviour during these events.
Graphical appraisal method
Under this method, a group of evaluators assesses employees. The group determines the standards of performance for the job, measure actual performance of an employee, analyses the causes of poor performance and offer suggestions for improvements in future. Due to multiple evaluators personal bias is minimized but it is very time consuming.
Field review method
In this method a training officer from the human resource department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these questions a supervisor gives his opinions about the level of performance has subordinates.
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