Download Recruitment and Selection

Performance
Appraisal
Determinants and obstacles
Definition
Importance
Uses
Process of appraisal
Methods
Goal setting
Sources
Errors
Performance Appraisal
Definition:
It is the process of evaluating individual job
performance as a basis for making
objective personnel decisions.
Objective:
To motivate employees to adapt and maintain
behavior that leads to expected
performance
Performance Appraisal
Uses:
For performance appraisal is useful for making
decision that involves:
1.
Compensation
•
•
2.
Placement
•
3.
The major motivator of performance is financial reward.
Linking performance with pay will result to attaining
expected output.
Performance appraisal is required for decisions
concerning promotion, demotion and discharges .
Training and development
•
Potential and weakness of an employee are identified in
performance appraisal, which is necessary for training
and development needs.
Performance Appraisal
Formal and Informal:
Informal – done whenever the supervisor feels the
need of it, assessment is done during
conversation of supervisor and employee.
Formal - if it uses systematic appraisal system
Characterized by:
1.
2.
3.
4.
Managers and subordinates share understanding
about what has to be accomplished
Performance is measured using some techniques.
Assessment of employee performance is done on
a regular basis semi-annual or annually.
During the assessment proceedings, the
employee is well aware that his performance is
being assessed.
Performance Appraisal
Process:
Consist of the following:
1.
Establishment of performance standards.
•
2.
3.
Joint superior-subordinate setting of
measurable goals.
Measurement of performance
•
4.
5.
6.
Organization’s strategic goal basis to determine
performance standard.
What has been achieved must be measured
Compare performance with standard
Discuss result of appraisal with employee
When necessary, corrective action is initiated.
Performance Appraisal
METHODS:
1. Work standard approach
2. Critical-incident appraisal
3. Checklist
4. Essay appraisal or free-form appraisal
5. Graphic rating scale
6. Behaviorally anchored rating scale
7. Ranking method
•
•
•
8.
9.
Alternation
Paired comparison
Forced distribution
Forced-choice rating
Goal-setting or management by objectives.
Performance Appraisal
WORK STANDARDS APPROACH
- Involves setting a standard level of
output and then comparing every
employee’s performance with the standard
2. CRITICAL-INCIDENT APPRAISAL
It is recorded by an observer, indicating the
employee’s reaction towards certain event.
3. CHECKLIST
A list of behavioral descriptions is used by
the evaluator in the checklist appraisal.
Items that describe an employee’s behavior
are checked off in the list. The items are
presented in questions answerable by
either “yes” or “no”
1.
Performance Appraisal
4. GRAPHIC RATING SCALE- It uses a set of
identified performance factors. Among the
factors assessed are quantity and quality of
work, job knowledge, cooperative spirit,
loyalty, dependability, attendance, honesty,
integrity, attitudes and initiative.
5. BEHAVIORALLY ANCHORED RATING SCALE- The rating scale consists of scale values,
which define specific categories of
performance and anchors, which are
specific written statements of actual
behavior.
Performance Appraisal
6. RANKING METHOD- It is used in comparing
the performance of two or more
employees.
A. ALTERATION- From the list of employees to
be evaluated, the evaluator prepares
another list where the individual names
are entered and arranged according to
their value or importance.
B. PAIRED COMPARISON- Under this method
the name of the employee is paired with
another and the evaluator determines who
is the better employee.
Performance Appraisal
6. RANKING METHOD- It is used in comparing
the performance of two or more
employees.
C. FORCED DISTRIBUTION- the evaluator also
compares performance of employees. As
he is doing this, however, he has to keep in
mind how he will allocate the results to the
percentage requirements of the various pre
determined levels of performance.
Performance Appraisal
7. FORCED-CHOICE RATING
- It is one where the rater must choose
between two or more specific statements
about an employee’s work behavior.
Performance Appraisal
GOAL SETTING or
(MBO) Management by Objective
Steps:
1. Employee and his superior jointly set goals.
2. Employee tries to meet the goal.
3. Performance is evaluated against the goals.
4. Employee and supervisor jointly set new goals
for the next time.
Prerequisites:
1. The use of participative style of management.
2. Pinpointing which employee is responsible for
which results; and
3. Providing performance feedback to concerned
employees.
Performance Appraisal
SOURCES OF PERFORMANCE INFORMATION
1. Supervisors
•
2.
Peers
•
3.
4.
Equal ranks often work together and are
provided with the opportunity of observing one
another while at work.
Subordinates
Self
•
5.
Able to make frequent observation from day to
day activities of their subordinates.
There is no better person to observe and
employee but himself
Customers
•
Provides information of behavior of employee
they encounter.
Performance Appraisal
ERRORS IN PERFORMANCE EVALUATION
1. Halo error
2. Single criterion
3. Leniency error
4. Central tendency error
5. Recency problem
OVERCOMING ERRORS
1. Using multiple criteria
2. Emphasizing behavior rather than traits
3. Documenting performance behavior
4. Using multiple evaluators
5. Evaluating selectively
6. Training evaluators