Performance Appraisal and problems associated

A quick overview about the performance appraisal process and problems associated with it. Please download the ppt for animation effects

1. Presented By: Kamlesh Mithbavkar (19) Hitesh Gadge (08) Avinash Pandhare ( 28) Department of Pharmaceutical Management, NIPER, Mohali PERFORMANCE APPRAISAL

2. Flow of Presentation Introduction Process of PA Methods Problems Associated Appraisal Interview Appraisal Vs. Management

3. Introduction It includes all the procedures such as Evaulating the personality of a person Evaluating the performance of person Finding the potential of each member in a group Performance Appraisal is a method in which the behavior of the employees is evaluated at workplace, including both quantitative and qualitative aspect of the job PA is a systematic & periodic rating of an employee’s excellence in his present job and also finding out the potential of a person for a better job in future Performance Management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization.

4. Performance Appraisal Performance Management Operational Strategic Top-down assessment More likely to involve dialog Retrospective for corrections Future-oriented for growth Typically once or twice per year Ongoing or continuous review, interspersed with formal reviews Often uses ratings or rankings Less likely to involve ratings Rigid structure/system Flexible process Not linked to business needs Linked to business needs Usually takes a quantitative approach Combines quantitative and qualitative approaches Individual Collective Often linked to compensation Not usually linked to compensation Often very bureaucratic with a focus on paperwork/documents Less concerned with documentation Usually housed in HR department Conducted by managers and supervisors Performance Appraisal Vs. Performance Mgmt.

5. Provide feedback about employees Provide database Diagnose the strengths & weakness of individuals Provide coaching, counseling, career planning to subordinates Develop positive relation and reduce grievance Facilitates research in personnel management Needs and Objectives

6. Develop performance standards Communicating Std. & Expectation Decision Making Measuring Performance Comparing With Statndards Discussing Result Process of Performance Appraisal Should be clear , easily understandable and measurable term Determine what outputs, accomplishments and skills will be evaluated Communicating to employee Feedback should be received Personal observation, statistical reports, oral reports, and written reports Comparison reveal the deviation between standard performance and actual performance To know their own strengths and weaknesses The impact may be positive or negative R ewarding , promotions, demotions, transfers, suspensions and dismissal

7. Methods of Performance Appraisal Traditional Methods Confidential report Essay evaluation Graphic rating scale Paired comparison Critical incidents Straight Ranking Checklists Modern Methods Assessment centre Behaviorally anchored rating scale Management by Objective 360 degree performance apparaisal

8. Confidential Report : I t is mostly used in government organizations. It is a descriptive report prepared by the employee’s immediate superior generally at the end of every year The report highlights the strengths and weaknesses of the subordinate Essay Method :The method ask managers/supervisors to describe strengths and weaknesses of an employee’s behavior in essay form Straight Ranking : In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance Merits- Ranked according to their performance Easier to rank the best and worst employees Demerits- Difficult to compare individual Difficult to rank large number of employees Traditional Method

9. Paired Comparison : A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time Merits -Value of job is expressed in monetary times Can be applied to wide range of jobs Demerits - The pay for each factor is based on judgment that are subjective Checklist Method : T he evaluator is given a checklist which contains a list of statements on the basis of which the he or she describes the on the job performance of the employees Merits : Improve task performance Improve memory recall Demerits: Unnecessary complexity decreases reliability Burdensome process delays completing evaluation

10. Critical Incidence : T he evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents It includes both negative and positive points The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur Merits : Its based on the direct observations Its time tested Demerits: It delays the giving of feedback All satisfactory and unsatisfactory behaviors are not equal Graphic Scale Method : In this method an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory

11. Management By Objective : A process by which the superior and subordinate members of an organization jointly identify its common objectives such as Establishment of Goals Setting the performance standard Establishing new goals and new strategies for goals which are not previously attained 360 Degree Feedback : It is a multi-evaluator feedback system where an individuals performance is evaluated by a number of persons such as his Boss Colleagues I nternal customers E xternal customers Modern Method

12. Appraisal Interview In appraisal interview supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths Types of Appraisal Interview : Satisfactory-Promotable Satisfactory-Not promotable Unsatisfactory-Correctable Unsatisfactory-Uncorrectable Things to keep in mind : Talk in terms of objective work data Don’t get personal Encourage the person to talk Don’t tiptoe around

13. Problems Associated Halo/Horn Effect Personal Biasness Comparison Rating Central Tendancy Recency Effect Varying Standards

14. The rater must use the same standards and weights for every employee The rater should be able to show coherent arguments in order to explain the difference A teacher wont give same grades to all students, few times it depends on the affection that the teacher has towards a specific student The evaluators uses different standards and expectations for different employees who are performing similar jobs Varying Standards Problem Example Solution

15. Train evaluator to recognize the problem and differentiating the person with the performance they do If a employee was absent for few days but the evaluator has a good relationship with him, then rating will be higher in all other areas of work in order to balance it When a evaluator rates an employee high on all items because of one characteristic that he or she likes Halo Effect Problem Example Solution

16. The re-examination is done by higher-level managers to correct such appraising because they are supposed to be more partial A manager treats someone different because he or she belongs to different religion or lower caste T he manager rates according to his or her values and prejudices which distort the rating The differentiations can be made due to the ethnic group, gender, age, religion, sex, appearance, etc. Personal Biasness Problem Example Solution

17. The rating should reflect the actual performance of an individual but not by comparing with others performance If a teacher has to evaluate 2 students who usually wont complete their homework but one is silent and other one is naughty then teacher will give more marks to silent one The evaluator may have tendency to evaluate a persons performance by comparing with others performance rather than his or her individual performance Comparison Rating Problem Example Solution

18. In order to avoid these the evaluator should use some methods such as documenting both in positive and negative aspects and should also consider past performances When a professor gives grades to the students based on their last week performance but not his or her entire semester performance T he evaluator may evaluate an employee by comparing his latest performance but not his or her entire years performance Recency Effect Problem Example Solution

19. Each group member should be evaluated individually based on his or her contribution If evaluator is using 7 pointer scales then he or she will rate all the employees in the range of 3-5 When the evaluator gives average score to a group, the member in group who have performed excellent work will also get average score Central Tendency Problem Example Solution

20. Thank You