HRM RV Chapter 7.ppt

HRM RV Chapter 7.ppt

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  Chapter Seven Performance Appraisal 1
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  2 7.1 Performance Appraisal What is performance appraisal?  It is a formal system of periodic review and evaluation of an individual’s job performance.  When it is properly done, performance appraisal provides feedback to employees.  It is a formal organizational process whereby each employee is evaluated to determine how he or she is performing
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  3 7.2 Purposes ofPerformance Appraisal  Enhancing worker performance  Giving feedback  Employee Development, and  Documentation of PA outcomes
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  4 7.3 The PerformanceAppraisal process 1. Establish performance standards 2. Communicate Performance expectations to employees 3. Measure actual performance 4. Compare actual performance with the standards 5. Discuss the appraisal with the employees 6. If necessary, initiate corrective action
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  5 The PA processcont’d …  Sources of Information  Personal Observation  Statistical Reports  Oral &Written Reports
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  6 7.4 Appraisal Methods 1.Absolute Standards  A process of appraising an employee’s performance against absolute organizational standards without comparing that employee with any other employees.  It includes:  The essay appraisal  The critical incident method  The check list  The graphic rating scale,  Forced choice method, and  Behaviorally anchored rating scales
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  7 Appraisal Methods cont’d… 2. Relative Standards  A process of evaluating an employee’s performance by comparing the employee with other employees.  It include:  Group order ranking  Individual ranking, and  Paired comparison
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  8 7.5 PERFORMANCE APPRAISAL TECHNIQUES RatingScales  The method requires the evaluator to record his/her subjective assessment of the employee's on a scale.  The rating factors include job-related and employee's personal characteristics.  Factors related to job performance are the quantity and the quality of work, whereas employee's personal factors include cooperation, initiative, and the like.
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  9 PA Techniques cont’d… Employee's Name____________________ Department_____________ Rater's Name_______________________ Date _________________ Excellent Good Acceptable Fair Poor 5 4 3 2 1 1. Dependability _____ ____ _____ ____ ____ 2. Initiative _____ ____ _____ _____ ____ 3. Quality of work _____ ____ _____ _____ ____ 4. Attendance _____ ____ _____ _____ ____ 5. Attitude _____ ____ _____ _____ ____ 6. Cooperation _____ ____ _____ _____ ____ . . . . . . . . . . . . . . . . . . . . . 20. Overall output Results _____ ____ _____ _____ ____ Totals _____ + ____ + _____ + _____ + ____ = ____ Total Score A Sample Rating Scale for Performance Evaluation
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  10 PA Techniques cont’d… Critical Incident  The critical incident method requires that written records be kept of highly favorable and unfavorable work actions. Essay  The essay method requires the rater to write a brief narrative description of employee's performance and characteristics.
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  11 PA Techniques cont’d… Ranking  In the ranking technique, the rater is asked to assess employees in a rank order of overall performance. Work Standards  The work standards method compares each employee's performance to a predetermined standard or expected level of output.
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  12 7.6 Factors ThatCan Distort Performance Appraisals 1. Leniency Error: Distortion of PA by evaluating employees against one’s value system.  Positive leniency  Negative leniency  Problematic if different raters exist 2. Halo Error: The tendency to evaluate an employee’s performance based on a high or low rating on some specific factor.
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  13 Factors That CanDistort PA cont’d … 3. Similarity Error:- Evaluating employees based on the way an evaluator perceives himself or herself. 4. Low Appraiser Motivation:- A condition of overrating employee’s performance, if rewards depend on the result of the evaluation. 5. Central Tendency:- The tendency of rater to give average ratings. 6. Inflationary Pressures:- A tendency to push PA results upward.
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  14 7.7 Ways ofCreating Effective Performance Mgt System  Using Behaviorally-based Measures  Combining Absolute and Relative Standards  Ongoing Feedback  Using Multiple raters  Peer Evaluation  Selective Rating  Trained Appraisers  Rewarding Effective Appraisers
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  15 7.8 Benefits ofPerformance Appraisal  The main reason for appraising performance is to enable employees to use their effort and ability so that organizations achieve their goals and consequently their own goals.
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  16 Use of PAcont’d …  Generally the following are the main benefits of performance appraisal.  Performance improvement  Compensation adjustments  Placement decisions  Training and development needs  Career planning and development  Staffing process deficiencies  Informational inaccuracies  Job-design errors  Equal employment opportunity  Feedback to human resources
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  17 Benefits of PAcont’d … Moreover, performance appraisal data enables management:  To help with career planning, training and development, pay increases, promotion and placement decisions.  To assess the success of recruitment, selection, placement, training and development programs, and other related activities.
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  18 7.9 Responsibility forAppraisal The following are responsible for employee's performance appraisal:  Immediate Supervisor  Peer Evaluation  Self-Appraisal  Subordinate Evaluation  Group Appraisal  Combinations
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  Thank you!! 19