Human Resource Management

Performance Management
April, 2011

Group 5: Rameez, Mehdi, Nick,

Himanshu, Titoo, Abhishek
Presentation by : Group # 5
Performance Management & Appraisal
Meaning
 Performance Appraisal:
 Evaluating an employee’s current and/or past performance
relative to his or her performance standards.

 Performance Management:
 A process that consolidates goal setting, performance
appraisal, and development into a single, common system,
the aim of which is to ensure that the employee’s
performance is supporting the company’s strategic aims.

Presentation by : Group # 5
Performance Management & Appraisal
Why Performance Management:
 Defining Employee’s goal and work effort
 Assign specific goals
 Assign measurable goals
 Assign challenging but doable goals
 Encourage participation

Presentation by : Group # 5
Performance Management & Appraisal
Why Appraising Performance
 Realistic Appraisal:
 Don’t miss the forest for the trees, (Not all managers are devotees)
 GE, CEO Jack Welch said, for instance, that there’s nothing crueler
than telling someone who’s doing a mediocre job that he or she is
doing well..
 Some may find the chance to correct their bad behavior.

 Supervisors Role:
 Supervisor and worker meet to do a performance appraisal. The
appraisal process includes not just evaluation, but standards-setting,
and feedback to discuss employee’s progress and to make provision for
any required development.

Presentation by : Group # 5
Performance Management & Appraisal
Why Appraising Performance
 Steps in Appraising Performance:
 Define the Job:
 Make sure that you and your subordinates agree on his/her duties and job
standards.
 Appraise Performance
 Comparing your subordinate’s actual performance to the standards that
have been set.
 Provide Feedback
 Two of you discuss the subordinate’s performance and progress and make
plans for any development required.

Presentation by : Group # 5
Performance Management & Appraisal
Performance Appraisal tools
 Graphic Rating Scale Method
 A scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best
describes his or her level of performance for each trait.

 Rating Sample
Communication Technical D. Making Adaptation Total
Mehdi 5 2 4 3 14
Ramiz 5 4 2 4 15
Abhishek 5 3 3 5 16
Titoo 5 2 2 6 15
Nick 5 5 1 4 15
Himanshu 5 1 2 3 11
Total 30 17 14 25 

Presentation by : Group # 5
Performance Management & Appraisal
Performance Appraisal tools
 Alternation Ranking Method:
 Ranking employees from best to worst on a particular trait, choosing
highest, then lowest, until all are ranked.

 Ranking Sample

Presentation by : Group # 5
Performance Management & Appraisal
Performance Appraisal tools
 Paired Comparison Method:
 Ranking employees by making a chart of all possible pairs of the
employees for each trait and indicating which is the better employee of
the pair.

 Paired comparison Sample

Particulars A B C D Total Particulars A B C D Total
a Communication   a a a 3 a Communication   b c a 1
b Technical Skill     b b 2 b Technical Skill     b b 3
c Adaptation       d 0 c Adaptation       c 2
d Decision making         1 d Decision making         0

Particulars A B C D Total Particulars Total

a Communication   b a a 2 a Communication 6
b Technical Skill     b b 3 b Technical Skill 8
c Adaptation       c 1 c Adaptation 2
d Decision making         0 d Decision making 1

Presentation by : Group # 5
Performance Management & Appraisal
Performance Appraisal tools
 Forced Distribution Method:
 Similar to grading on a curve; predetermined percentage of ratees are
placed in various performance categories.
 For example:
 15% High performers
 20% high-average performers 20% low-average performers
 30% average performers 15% low performers

 Critical Incident Method:

 Keeping a record of uncommonly good or undesirable examples of an
employee's work-related behavior and reviewing it with the employee's
at predetermined times.

Presentation by : Group # 5
Performance Management & Appraisal
Management by Objective MBO:
 MBO:
 Involves setting specific measurable goals with each employee and
then periodically reviewing the progress made.

 MBO appraisal programs consists 6 steps:

1. Set the organizational goals
2. Set departmental goals
3. Discuss departmental goals
4. Discuss expected results
5. Performance reviews
6. Provide feedback

Presentation by : Group # 5
Performance Management & Appraisal
Problems of Performance Appraisal:
 Unclear Standards:
 An appraisal that is too open to interpretation
 Halo Effect:
 In performance appraisal, the problem that occurs when a supervisor’s rating of
a subordinate on one trait biases the rating of that person on other traits.
 Central Tendency:
 A tendency to rate all employees the same way, such as rating them all average.
 Leniency or strictness:
 The problem that occurs when a supervisor has a tendency to rate all
subordinates either high or low.
 Bias:
 The tendency to allow individual differences such as age, race, and sex to affect
the appraisal ratings employees receive.

Presentation by : Group # 5
Performance Management & Appraisal
Problems of Performance Appraisal:
Tools Advantages Disadvantages

Simple to use; provides a quantitative Standards may be unclear; halo effect, central
Graphic Rating Scale
rating for each employee. tendency leniency, bias can also be problems.

can cause disagreemnts among employees

simple to use, avoids central tendency
Alternation ranking and may be unfair if all employees are in fact
and other problems of rating scales.
excellent

forced distribution End up with a predetermined number of employees' appraisal results depend on your
method % of people in each group choice of cutoff points

helps specify what is "right" and "wrong"

about the employee's performance; difficult to rate or rank employees relative to
critical incident Method
forces supervisor to evaluate on another.
subordinates on an ongoing basis.

tied to jointly agreed-upon performance

MBO time consuming
objectives

Presentation by : Group # 5
Performance Management & Appraisal
Who should do the Appraisal?
 The immediate supervisor
 Peer appraisal
 Rating committees
 Self ratings
 Appraisal by subordinates

Presentation by : Group # 5
Performance Management & Appraisal
Appraisal Interview
 Appraisal Interview:
 An interview in which the supervisor and subordinate review the
appraisal and make plans to remedy deficiencies and reinforce
strengths.

 Types of Appraisal Interview:

 Satisfactory – promotable
 Satisfactory – Not promotable

Presentation by : Group # 5
Performance Management & Appraisal
360 Degree Appraisal:
• 360 Degree:
 360 degree feedback is a method and a tool that provides each
employee the opportunity to receive performance feedback from his or
her supervisor and four to eight peers, reporting staff members,
coworkers and customers. Most 360 degree feedback tools are also
responded to by each individual in a self assessment.

 360 degree feedback allows each individual to understand how his

effectiveness as an employee, coworker, or staff member is viewed by
others. The most effective 360 degree feedback processes provide
feedback that is based on behaviors that other employees can see.

Presentation by : Group # 5
Performance Management & Appraisal
360 Degree Appraisal:

Presentation by : Group # 5