Performace evaluation

Methods of Performance Evaluation
Paired comparison
Graphic Rating scales
Forced choice Method
Checklists method
Free essay method
Critical Incidents
Field Review Method
Confidential Report
Ranking method
Assessment Center
Cost Accounting method
Behaviorally Coordinate Rating scales
360° Evaluation
720° Evaluation

1. Performance Evaluation

2. What is Evaluation? The making of a judgement about Amount Number Value of Something Employer Prospective b) Employee Prospective The process by which an employee’s contribution to the organization during a specified period of time is assessed.

3. Evaluation Process Standards Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards

4. Performance Standards Approach Expected levels of performance Benchmarks, goals, and targets S.M.A.R.T. approach for writing performance standards S=Specific M=Measurable A=Attainable R=Relevant T=Time bound

5. Evaluation Model

6. Good Evaluation System Validity Reliability Freedom from bias: errors Practicality According to Criteria According to Evaluation

7. Relevance of Performance Criteria Overemphasis Deficiency Contamination Performance Criteria

8. Relevance of Performance Evaluation Fairness Reliability Practicality Performance Evaluation

9. Objectives of Performance Evaluation Measuring the efficiency Maintaining organizational control Concrete and tangible particulars about their work Assessment of performance Mutual goals of the employees & the organization. Growth & development Increase harmony & effectiveness Personal development Work satisfaction Involvement in the organization. Employee Organization According to: Aims at:

10. PE and other HRM Functions Recruitment Selection Training & Development Compensation Labor Relations P E

11. Why Performance Evaluation may Fail? Unclear Language Mgr not taking PE seriously Mgr not prepared No on-going feedback Mgr not honest or sincere Ineffective discussion Lack of evaluation skills Mgr Lacks Infor. Insuff. Rewards

12. SUPERIOR CUSTOMERS TEAM SUBORDINATES PEERS SELF Sources must kept in mind for Evaluation

13. Methods of Performance Evaluation Paired comparison Graphic Rating scales Forced choice Method Checklists method Free essay method Critical Incidents Field Review Method Confidential Report Ranking method Assessment Center Cost Accounting method Behaviorally Coordinate Rating scales 360° Evaluation 720 ° Evaluation Traditional Methods Modern Methods

14. Traditional Methods

15. 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. It is useful where priorities are not clear This method is not appropriate if a large number of employee are required to be evaluated.

16. Graphic or Linear Rating Scales Attitude No interest In work: consistent complainer Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiastic about job & fellow-workers Enthusiastic opinions & advice sought by others Decisiveness Take decisions in consultation with others whose views he values Slow to take decisions Take decisions after careful consideration Takes decisions promptly Take decisions without consultation 0 5 10 15 20 0 5 10 15 20

17. Criteria Rating 1.Regularity on the job Most Least Forced choice method Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular

18. No. of employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve Forced distribution method

19. Free essay method The rater writes a brief essay providing an assessment of the strengths, weaknesses and potential of the subject. In order to do so objectively, it is necessary that the rater knows the subject well and should have interacted with them. Write a Behavioral Statement Strengths versus Weaknesses Describe Selected Traits Evaluate Performance

20. Critical Incident method Performance Subordinate Peers Superior Customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^

21. Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1 Critical Incident method Example

22. Confidential report It is mostly used in government organizations. A descriptive report prepared by the employee’s immediate superior. The report highlights the strengths and weaknesses of the subordinate. The impressions of the superior about the subordinate are merely recorded and kept confidential without revealing the facts.

23. As compared to A B C A + - + B - + - C + - + For the Trait “Quality of work” A - + + B + - + C + + - As compared to A B C For the Trait “Creativity” + + + + + + + + + - - - - - - + - - Person rated Person rated Ranking employees by paired comparison Method

24. Modern Methods

25. Assessment Center Paper Test Method Lunch Meetings The "Coin" Approach

26. Behavioral Coordinate Rating Scales Performance Points Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks & roam around purposelessly.

27. 180 Appraisal 90 180 270 Basic degree Performance Evaluation

28. 360 degree performance appraisal

29. 540˚: The Stakeholders Superiors Subordinates Peers Internal And External Customers Clients Or Suppliers Degree performance appraisal

30. 720 Degree Performance Evaluation Considered an “ all-round ” evaluation, the 720 degree performance evaluation gives an employee more than feedback from one person. This evaluation gives the employee a lot of feedback generally from anywhere from 5 to 8 people, to provide the employee with an all round assessment of his or her on the job performance. 720 degree as the name suggests is 360 degree twice It provide for two round of feedback (a pre and post ) or a feedback approach which is done again after nine to twelve months.

31. 90 Employee/Manager 180 Manager 270 Senior Manager Other Managers Peers Subordinates 360 Customers 720

32. Uses for Performance Evaluation PE

33. Issues in Evaluation system Evaluation Design Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods?

34. Advantages

35. Disadvantages

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