PERFORMANCE
MANAGEMENT AND
APPRAISAL
GROUP MEMBERS
RAJA MOHAMMAD WASEEM
SAAD
M. ABDULAHH MAJEED
ABDUL AZIZ
NAVEET KUMAR VANKANI
PERFORMANCE MANAGEMENT SYSTEM
Processes used to identify, encourage, measure,
evaluate, improve, and reward employee
performance.
Performance management system should do
the following:
Provide information to employees about their
performance.
Clarify what the organization expects.
Indentify development needs.
Document performance for personnel records.
IDENTIFY AND MEASURING EMPLOYEE
PERFORMANCE
What an employee does or does not do.
Elements of Employee Performance:
Quantity of output
Quality of output
Timeliness of output
Presence at work
Cooperativeness
Job Criteria:-
Alsocalled job dimensions of job
performance identify the most important
elements in a given job.
Mostjobs have more than one job criterion or
dimensions.
TYPES OF PERFORMANCE INFORMATION
Trait-based information:-
Behavior-based information:-
Results-based information:-
RELEVANCE OF PERFORMANCE CRITERIA:-
Measuring performance requires the use
of relevant criteria that focuses on the
most important aspects of employees’
jobs.
POTENTIAL PERFORMANCE CRITERIA PROBLEMS:-
Performance measures also can be:
Objective:
Can be directly measured or counted.
Subjective:
Require judgment on the evaluator & are
more difficult to measure.
PERFORMANCE STANDARDS
Expected levels of performance.
Realistic, measureable, clearly understood
performance standards benefit both
organizations and employees.
Standards need to be established before
the work is performed.
Both numerical and non-numerical.
PERFORMANCE APPRAISAL
Theprocess of evaluating how well employees
perform their jobs when compared to a set of
standards, and then communicating that information to
employees.
Also called:
Employee Rating
Employee Evaluation
Performance Review
Performance Evaluation
Results Appraisal
USES OF APERFORMANCE APPRAISALS
Widely used for administrating wages and
salaries, giving performance feedback and
identifying individual employee strengths and
weaknesses.
Globally it provides benefits in a variety of work
situations.
USES OF APERFORMANCE APPRAISALS
INFORMAL VS. SYSTEMATIC APPRAISALS
Informal Appraisals:
Supervisor conducts informal appraisals whenever
necessary.
Employees day-to-day performance is evaluated
during work by manager.
A manager communicates this evaluation through
conversion on the job, over coffee, or by on-the-spot
examination of a particular piece of work.
Informal appraisal is especially appropriate when time
is an issue.
Systematic Appraisal:-
Used when contact between manager and
employee is formal, and system is in place to
report managerial impressions and observations
on the employee performance.
Mostly employers have a formal performance
appraisal system.
APPRAISAL RESPONSIBILITIES
Appraisal Performance System(APS) is typically
designed by the HR unit.
Then manager appraises employees using the
performance appraisal system.
By APS good employees can be developed to be even
better and those of poor employees' performance can
be improved or thy are removed from the
organization.
WHO CONDUCTS APPRAISALS?
Generally can be conducted by anyone who is familiar
with the performance of individual employees.
But possibilities include:
Supervisors
Employees
Team members
Outside sources
Employees’ self-appraisal
Multisource (360° feedback) appraisal
Supervisory Rating of Subordinates:-
Supervisoris the person most qualified to evaluate
the employees performance fairly.
Employee Rating of Managers:-
A number of organizations today ask employees or
group members to rate the performance of
supervisors and mangers.
Team /Peer Ratings:-
Useful when supervisor don’t have opportunity to
observe each employee’s performance.
Can affect teamwork & participative management
efforts negatively.
Self Ratings:-
Itforces employees to think about their strengths
and weaknesses and set goals for improvement.
Outside Raters:-
Customers
Clients
Multisource Rating/360° Feedback:-
Multi-raterfeedback, multisource feedback, or
multisource assessment.
Multisource rating refers that feedback comes
from all around an employee.
Feedback is provided by subordinates, peers, and
supervisors.
MULTISOURCE RATING/360° FEEDBACK
METHODS FOR APPRAISING PERFORMANCE
There are 4 groups for appraising performance.
Category Rating Methods.
Comparative Methods.
Narrative Methods.
Behavioral/Objective Methods.
Category Rating Methods
A specific form is used to mark an employee’s level
of performance, divided into categories of
performance.
GRAPHIC RATING SCALE:-
A scale that allows the rater to mark an employee’s
performance on a continuum.
i. JOB CRITERIA
ii. BEHAVIORAL ASPECTS
CHECKLIST
Performance appraisal tool that
uses a list of statements or words
that are checked by raters.
Comparative Methods
Directly comparing employees’ performance
against each other.
Listing of all employees from highest to lowest in
performance.
Narrative Methods
Written appraisal information.
CRITICAL INCIDENT:-
Manager keeps a written record of both highly
favorable and unfavorable actions during entire rating
period.
ESSAY:-
Also “free-form”, is appraisal method requires a
manager to write a short essay describing each
employee’s performance during rating period.
Behavioral/Objective Methods
Attempt to assess an employee’s behaviors instead
other characteristics.
Behaviorally anchored rating scales(BARS):-
It compares what the employees does with possible
behaviors that might shown on the job.
Behavioral observation scales(BOS):-
It counts the number of times certain behaviors
are exhibited.
Behavioral expectation scales(BES):-
Order behaviors on a continuum to define
outstanding, average, and unacceptable
performance.
MANAGEMENT BY OBJECTIVES (MBO)
It specifies the performance goals that an individual
and his or her manager agree to try to attain within
an appropriate length of time.
Appraisal by results
Work planning and review
Performance objectives
Mutual goal setting
Target-coaching
THE MBO PROCESS
1. Job review and agreement:
2. Development of performance standards:
3. Guided objectives setting:
4. Continuing performance discussions:
RATER ERRORS
Rater Error Practical Impact
Similar performances are rated
Varying standards
differently
Recency /primary effects Timing of information affects rating
Central tendency, leniency,
Every one is rated the same
strictness
Rater bias Certain factors overwhelm others
Generalization is made from only one
Halo/horn effect
trait
Comparison is made to other people,
Contrast error
not standards
Similar to me/different from
Raters compares employees to self
me
Sampling error Available information is insufficient or
inaccurate
APPRAISAL FEEDBACK
Organizations commonly require managers to
discuss appraisals with employees.
Appraisal interview :-
It presents both an opportunity and danger.
In this manager must communicate praise and
constructive criticism.
Feedback as a system :-
Data
Evaluation of that data
Action based on evaluation
Reaction of managers:
From the manager’s viewpoint, providing negative
feedback to an employee in an appraisal interview
can be easily avoided by making the employee’s
ratings positive.
Reaction of appraised employees:
Many employees view appraising as a zero-sum
game—that is, one in which there must be a
winner and a loser.
LEGAL AND EFFECTIVE PERFORMANCE
APPRAISALS
The uniform guidelines issued by EEOC &
other federal enforcement agencies make it
clear that performance appraisals must be job-
related and nondiscriminatory.
EFFECTIVE PERFORMANCE MANAGEMENT
An effective performance management system will
be:
Consistent with the strategic mission of the
organization
Beneficial as a development tool
Useful as an administrative tool
Legal and job-related
Viewed as generally fair by employees
Useful in documenting employee performance
