3. Lecture no 21 & 22.pptx hhfbdsjbhj hjdbj

uhyugyugyuuyufufyucufuyuc ffu u uf u uf u fu fu fu fu fu fyu f uf uf yu fu fu f yu uf u fu fu f uf u fu fyu yf

1. HRM IN OPERATIONS & SUPPLY CHAIN WEEK 11 Lecture no 21 & 22 Chapter no 10 “ PERFORMANCE APPRAISAL ” by HINA HAMEED

2. Overview Everyone loves appreciation, and everyone loves to be appreciated, so the company appreciates someone; it does not keep it a secret, and the organizations express their appreciation in the form of what we call performance appraisal or performance reviews. Performance appraisals are also known as performance reviews or the performance evaluation used by the companies to assess an employee’s performance and appreciate him/her for his/her precious and dedicated contribution to the organization's growth. Thus, the performance appraisals can be defined as the process of evaluating an employee’s performance and personality as per the organization’s set of standards like versatility, quality of work, efficiency, cooperation, and teamwork, etc.

3. Definition of Performance Appraisal Performance appraisal, also known as performance evaluation or performance review, is a systematic process of assessing and evaluating an employee's job performance and contributions to the organization.

4. Introduction Performance appraisal involves measuring employees' performance against predetermined criteria and objectives, providing feedback on strengths and areas for improvement, and making decisions related to promotions, rewards, and training. Performance appraisal serves as a tool for clarifying expectations, identifying development needs, supporting career growth, and facilitating communication between employees and managers . It plays a crucial role in aligning individual performance with organizational goals and objectives, ultimately contributing to improved employee engagement, productivity, and organizational performance.

5. Importance of Performance Appraisal T he Importance of performance appraisal has no limit. Having a valuation conversation with employees can help improve the bottom line by aligning individual performance with business objectives. It creates a more people-focused culture and an environment that wants to stay, progress, and improve staff. 1. Growing progress and development: Organizations that provide clear advancement opportunities for new growth are more likely to be able to retain talented employees by mapping a career path for them. Regular performance looking will help employees identify when they are ready to take on more responsibility. Setting the time to discuss an employee’s personal ambitions will help organizations spot and develop potential talent and build a strong succession pipeline. 2. Culture of faith and openness: In today’s fastest-growing business world, maintaining a meaningful, two-way dialogue with employees is more important than ever to help retain talented people within your organization. One of the major manufacturers for employee engagement is to ensure that employees have a voice and evaluation and performance review meetings can help empower employees to fuel discussion and share their views.

6. 3. Employee recognition and rewards: The evaluation gives workers an opportunity to recognize and reward and to ensure that they feel valued for their work. By monitoring performance and progress against objectives, employers can evaluate whether employees can reward employees with pay increases, promotions, or bonuses. This is an opportunity to thank you and provide verbal feedback and appreciation . 4.Support and training: Open discussions on performance can help identify an issue early and provide an opportunity to explore positive solutions. The manager can provide additional training and assistance to the staff to be able to achieve such results that they will feel proud of. High-performing workers may be supported with further training to help advance their career progression.

7. 5 . Assist staff in providing an effective evaluation system: To work best in evaluating and communicating performance, managers need to feel effectively equipped to provide regular feedback and ongoing performance management. Investing in training is a worthwhile investment for managers capable of providing effective performance evaluation with a practical approach. 6 . Compensation decisions: Performance appraisal can be used to compensate employees by increasing their pay and other incentives. This is also true of managers and employees of non-organized organizations. Good performance qualifications are rewarded with a salary . 7 . Human Resource Planning : The appraisal process helps in human resource planning. Accurate and current appraisal data about certain employees Without the knowledge of who is capable of being promoted, demoted, transferred, or terminated.

8. 8 . Transfer: Performance appraisal is useful for transfer decision-making. Transfers often change job responsibilities, and it is important to find employees who can take on these responsibilities . It is possible through evaluation of such identification performance of employees who can be transferred. 9 . Career Development: Performance appraisal also enables managers to coach and counsel employees in their career development . 10. Performance Response: Most employees are currently interested in learning how they are doing well and how they can do better in the future. They want to disseminate this information and improve their performance to get merit pay. Correct performance feedback can improve an employee’s future performance. This gives him satisfaction and motivation .

9. Approach Performance Appraisal Systems Performance appraisal methods vary depending on the organization's objectives, culture, and the nature of the work. Here are some common methods: 360-Degree Feedback: Gathering feedback from multiple sources, including supervisors, peers, subordinates, and sometimes external stakeholders, to provide a comprehensive view of an employee's performance. Management by Objectives : Setting specific, measurable objectives for employees to achieve within a certain time frame. Performance is evaluated based on the achievement of these objectives. Rating Scales : Employees are evaluated based on predefined criteria, often using a numerical scale or categories such as "exceeds expectations," "meets expectations," or "needs improvement." Critical Incident Technique : Focusing on specific events or behaviors that represent outstanding or poor performance. These incidents are documented and used as the basis for appraisal .

10. Behaviorally Anchored Rating Scales (BARS) : Combining elements of both narrative descriptions and numerical ratings. Specific behaviors are described and assigned a numerical value, providing a more detailed assessment of performance. Peer Review : Colleagues evaluate each other's performance, providing insights from those who work closely with the individual being appraised. Self-Assessment : Employees evaluate their own performance against predefined criteria, allowing them to reflect on their strengths and weaknesses. Essay Evaluation : Managers write a narrative describing an employee's strengths, weaknesses, achievements, and areas for improvement . 180-Degree Feedback: 180-Degree Feedback is a type of performance appraisal process where feedback is collected from a select group of individuals who interact regularly with the employee being evaluated.

11. Forced Ranking : Ranking employees from best to worst performers, often with the intention of identifying high potentials and poor performers. Checklists : Using a predefined list of performance criteria, managers check off items that apply to each employee. Management by Walking Around (MBWA) : Managers observe employees in their work environment to assess performance informally. Psychological Appraisals : Assessing employees' personality traits, attitudes, and emotional intelligence to understand how they may impact their performance. Each method has its own strengths and weaknesses, and organizations often use a combination of these methods to provide a holistic view of employee performance .

12. Best Practices in Performance Appraisal Clear Criteria and Standards: Establishing transparent performance criteria and evaluation standards. Training for Managers and Employees: Providing training on conducting fair and effective performance appraisals. Regular Feedback: Encouraging ongoing communication and feedback between managers and employees. Fairness and Transparency: Ensuring fairness and transparency in the appraisal process to build trust and credibility. Documentation and Record-Keeping: Maintaining accurate records of performance evaluations and discussions for future reference.

13. Why Is A Performance Appraisal Useful? The main aim of measuring  employee performance  is to assess and help them improve their performance and increase their potential, as well as the value they can bring to the company in the future. Even so, there are other objectives such as providing feedback, improving communication, understanding employees’ needs, etc. Let’s look at them one by one:

14. Offer feedback:  give the employee objective information about their work over the last few months, as well as convey the company’s expectations. Decide on promotions:  the appraisal process gives us objective data for making decisions about who is ready to take on new responsibilities. Decide on dismissals : when you have to reduce the team, the appraisal can also be useful to detect profiles that are valuable, & those that could be let go. Encourage performance : the performance analysis points out where each employee should improve to enhance their performance. Boost motivation : all professionals want to be well-thought-of in their company. If you measure this and bear it in mind, you will have a more motivated workforce who will strive for better results. Establish objectives : setting goals helps boost employee performance. The appraisal enables you to set objectives and measure achievements . Reduce poor performance : this process also helps team managers to identify and help employees who are not meeting expectations to improve their results .

15. Determine compensation : this method is useful for companies that work with objectives as it offers a mechanism to determine who is rewarded for their work, and who isn’t. Promote training : where areas for improvement are detected, internal educational or training plans are the best course of action. Improve resource management : performance reviews provide companies with the information they require to ensure they have the talent to meet their future needs. Validate recruitment needs : the need for contracting new staff can only be ascertained by assessing your current workforce. Improve the organization's general performance : the organization will improve it’s operation and performance when the whole team is aware of its objectives and works towards them .

16. Skills To Measure In A Performance Appraisal Creativity and innovation : creativity is the ability to spot new opportunities, come up with original ideas, adapt to new situations and use the imagination to solve problems. Nowadays, this is one of the most valued skills. To measure this, we have to look at certain parameters: openness to experience, resilience, confidence, tolerance of ambiguity… Adaptability : another valuable characteristic in an employee is the ability to face new situations and approach them with a good attitude. A study by Barclays reveals that 60% of employers feel that this is one of the skills that has become more important in recent years. Communication : the ability to communicate, according to Barclays, is another skill that has become more important in recent times (according to 54% of those interviewed). Effective communication is fundamental to do a job well and preserve a good working atmosphere. Responsibility : accountability and taking responsibility for your actions is also a trait worth highlighting in an employee. Responsibility in the team context is crucial, otherwise difficult situations among team members will emerge.

17. Attendance and punctuality : these two basic requirements are paramount for objective performance. Keeping track to ensure employees are complying with them is key for any assessment. Productivity and quality of work : productivity is one aspect that is usually of most interest to employees. We can measure this through different formulas, as we’ll see below. Achievements : recognition of achievements motivates employees and increases their commitment to the company. It’s important to go over the milestones reached and congratulate the employee for them. Cooperation : does the employee work well in a team? This aspect is key when it comes to maintaining a constant workflow and high levels of efficiency .

18. Training : the employee’s eagerness to learn and grow professionally can be measured by how involved they get in training initiatives. Improvements : as mentioned earlier, it’s important to conclude by defining areas for improvement according to the employee’s weaknesses. This helps to boost employee growth and development as well as that of the company. Interpersonal skills : also known as soft skills, they concern how we communicate or relate to other people. These are becoming increasingly more influential in selection processes and appraisal processes. Problem-solving skills : the ability to detect issues, establish the cause and identify possible solutions. It’s important to see how the employee approaches different challenges and measure this ability during the performance review.

19. Possible Drawbacks that can Ruin the Appraisal Process Halo Effect: The Halo effect is another term for favoritism. This is caused when evaluators tend to be influenced by the previous judgments of the performance or personality of an employee. For example, employee A has better interpersonal skills than employee B. It would be unethical if the judging parameter is a skill and employee A scores better than B despite being equally good with their talent . Lack of Clarity : If performance criteria are unclear or ambiguous, employees may not fully understand what is expected of them, leading to frustration and dissatisfaction. Poor Communication : Inadequate communication between appraisers and employees about performance expectations, goals, and feedback can hinder the effectiveness of the appraisal process.

20. Inadequate Training : If appraisers are not properly trained in the appraisal process, they may struggle to provide meaningful feedback and evaluations, resulting in inaccuracies and inconsistencies. Single-Source Feedback : Reliance on feedback from only one source, such as the employee's immediate supervisor, may not provide a comprehensive view of the employee's performance and may be biased. Inflexibility : Appraisal systems that lack flexibility and fail to adapt to changes in job roles, responsibilities, or organizational priorities may not accurately reflect employee contributions. Lack of Follow-Up : Failure to follow up on appraisal results with coaching, development plans, and performance improvement initiatives can make the process feel futile and demotivating for employees .

21. Overemphasis on Metrics : Relying solely on quantitative metrics without considering qualitative aspects of performance can overlook important contributions and diminish employee morale. Fear of Consequences : Employees may fear negative consequences such as pay cuts, demotions, or termination, leading them to hide or downplay their weaknesses and shortcomings during the appraisal.

22. Conclusion Performance appraisal is a critical process in organizations aimed at evaluating employees' job performance, providing feedback, identifying strengths and weaknesses, and guiding future development. It involves various methods such as ratings, reviews, and self-assessments to assess employee contributions and align them with organizational goals. Effective performance appraisal fosters employee motivation, facilitates communication between managers and employees, supports career development, and ultimately enhances organizational performance.