Performance Appraisal Performance Appraisal

Performance Appraisal Performance Appraisal Performance Appraisal Performance Appraisal Performance Appraisal

1. Performance Appraisal 2/18/2023 Ketsela M ( [email protected] )

2. Training Outcomes Discuss the difference between performance management and performance appraisal Identify the necessary characteristics of accurate performance management tools Briefly discuss the purposes for performance appraisals 2/18/2023 Ketsela M ( [email protected] )

3. Training Outcomes Briefly discuss the commonly used performance measurement methods and forms Identify some of the common problems with the performance appraisal process Identify the major steps we can take to avoid problems with the appraisal process 2/18/2023 Ketsela M ( [email protected] )

4. Definition Performance Management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Basically it is trying to figure out how well employees perform and then to ultimately improve that performance level. Performance Management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time. 2/18/2023 Ketsela M ( [email protected] )

5. Cont… Performance Appraisal, on the other hand, is the ongoing process of evaluating employee performance. Performance Appraisals are reviews of employee performance over time, so appraisal is just one piece of performance management. The formal, systematic assessment of how well employees are performing their jobs in relation to established standards( wendell .F). 2/18/2023 Ketsela M ( [email protected] )

6. Cont… PA is the process through which an individual employees behavior and accomplishment for a fixed period of time are measured and evaluated. PA is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.( Flippo ) 2/18/2023 Ketsela M ( [email protected] )

7. Cont… PA is the process by which a manager examines and evaluates an employee’s work behavior/performance by comparing it with present standards, documents the results of the comparison, and uses the result to provide feedback to the employee to show where improvements are needed and why. http://www.businessdictionary.com/definition/performance-appraisal.html 2/18/2023 Ketsela M ( [email protected] )

8. Accurate Performance Measures Performance should be accurately measured so employees will know where they can improve. Knowing where to improve should lead to training employees to develop new skills to improve. To be an accurate measure of performance, the measure must be valid and reliable, acceptable and feasible, specific, and based on the mission and objectives. 2/18/2023 Ketsela M ( [email protected] )

9. Why Do We Conduct Performance Appraisals? If performance appraisals are done in the correct manner, they can provide us with a series of valuable results. However, done incorrectly, the process of evaluating employee performance can actually lead to lower levels of job satisfaction and productivity. Three major reasons why organizations complete performance evaluations—communicating, decision making, and motivating. 2/18/2023 Ketsela M ( [email protected] )

10. Cont… 1- Communicating Provide an opportunity for formal communication between management and the employees E mployees have the opportunity and ability to provide feedback to their bosses T wo-way communication 2/18/2023 Ketsela M ( [email protected] )

11. Cont… 2- Decision Making (Evaluating) P erformance appraisals is to allow management to make decisions about employees within the organization. D ecisions based on information from (Appraise, Appraiser, Subordinates , Colleagues, Customer) Decisions concerning including pay raises, promotions, demotions, training and development, and termination. 2/18/2023 Ketsela M ( [email protected] )

12. Cont… 3- Motivating (Developing) An effective performance appraisal process has two parts (evaluating and motivating), and it does both parts well. Evaluating is about assessing past performance, and motivating is about developing employees to improve their future performance. 2/18/2023 Ketsela M ( [email protected] )

13. What Do We Assess? Trait Appraisals Traits identify the physical or psychological characteristics of a person. We can evaluate the traits of an individual during the performance appraisal process. some traits, both physical and psychological, are fairly easy to identify, and make the assumption that they are related to how the individual will perform on the job. Many of us, individually and as managers, value certain things like enthusiasm even if enthusiasm has very little to do with the ability to do a particular job or the actual results of job performance. 2/18/2023 Ketsela M ( [email protected] )

14. Cont… Behavioral Appraisals Behaviors are simply the actions taken by individuals—the things that they do and say. Measure what individuals do at work, not their personal characteristics. Is this a good option to use in a performance appraisal process? Results/Outcomes Appraisals A measure of the goals achieved through a work process. 2/18/2023 Ketsela M ( [email protected] )

15. Method of Performance Appraisal There are a number of methods introduced to gauge the quantity and quality of work performed by an individual. Some of the methods are:- Graphing Rating Scales Form Checklist Method Critical Incidents Method Behaviorally Anchored Rating Scale (BARS) Management by Objectives (MBO) 360 Degree Feedback 2/18/2023 Ketsela M ( [email protected] )

16. Cont… The Graphic Rating scale form is a performance appraisal checklist on which a manager simply rates performance on a continuum such as excellent, good, average, fair, and poor. The continuum often includes a numerical scale, for example from 1 (lowest performance level) to 5 (highest performance level) 2/18/2023 Ketsela M ( [email protected] )

17. Graphing Rating Form Jobs 5 4 3 2 1 1 Knowledge 2 Supportive 3 Punctuality 4 Volunteering 5 Praise people in public when they have done good job Key Excellent Very Good Good Bellow Average Poor 2/18/2023 Ketsela M ( [email protected] )

18. Cheek List Method In the checklist method the manager answers Yes or No to a series of questions concerning the employee’s behavior sn Jobs Yes No 1 Does the employee lose his/her temper in public? 2 Does the employee Volunteer to do special job? 3 Does the employee praise people in public when they have done good job? 2/18/2023 Ketsela M ( [email protected] )

19. Cont… Critical Incidents Method:  Under this method, the critical behavior of each employee that make a difference in the effective or non-effective performance is recorded by the supervisor and is taken into consideration while evaluating his performance . 2/18/2023 Ketsela M ( [email protected] )

20. Behaviorally Anchored Rating Scale (BARS) Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares employee performance with specific behavioral examples that are anchor to numerical ratings. 2/18/2023 Ketsela M ( [email protected] )

21. Cont… 2/18/2023 Ketsela M ( [email protected] )

22. Management by Objectives (MBO) Method The Management by Objectives (MBO) method is a process in which managers and employees jointly set objectives for the employees, periodically evaluate performance, and reward according to the results. Although it is a three-step process, no standard form is used with MBO, so it is a method. MBO is also referred to as work planning and review, goals management, goals and controls, and management by results. 2/18/2023 Ketsela M ( [email protected] )

23. How do we use the MBO method? MBO is a three-step process : Step 1 . Set individual objectives and plans. The manager sets objectives jointly with each individual employee. The objectives are the heart of the MBO process and should be accurate measures of performance results. To be accurate, objectives should be SMART. They need to be Specific, Measurable, Attainable, Relevant, and Time-based. 2/18/2023 Ketsela M ( [email protected] )

24. Cont… Step 2 . Give feedback and evaluate performance. Communication is the key factor in determining MBO’s success or failure, and employees should continually critique their own performance. Thus, the manager and employee must communicate often to review progress. The frequency of evaluations depends on the individual and the job performed. However, most managers do not conduct enough review sessions. 2/18/2023 Ketsela M ( [email protected] )

25. Cont… Step 3 . Reward according to performance. Employees’ performance should be measured against their objectives. Employees who meet their objectives should be rewarded through recognition, praise, pay raises, promotions, and so on. Employees who do not meet their goals, so long as the reason is not out of their control, usually have rewards withheld and even punishment when necessary. 2/18/2023 Ketsela M ( [email protected] )

26. Setting Objectives Model To + 2. Action Verb + 3. Specific and Measureable Result + 4. Target Date To + produce + 20 units + per day To increase vehicle productivity 5% by December 31, 2020. To provide performance appraisal training for 20 supervisors and managers of EIC by April 2020. 2/18/2023 Ketsela M ( [email protected] )

27. 360 Evaluation The 360° evaluation, in effect, analyzes individuals’ performance from all sides—from their supervisor’s viewpoint, from their subordinates’ viewpoint, from customers’ viewpoint (if applicable), from their peers’ viewpoint, and using their own self-evaluation. The 360° evaluation would give us the most accurate, best possible analysis of individuals and their performance within the company. 2/18/2023 Ketsela M ( [email protected] )

28. Common Types of Rater Biases Bias is simply a personality-based tendency, either toward or against something. In the case of performance assessment, bias is toward or against an individual employee. Stereotyping : is mentally classifying a person into an affinity group, and then identifying the person as having the same assumed characteristics as the group. 2/18/2023 Ketsela M ( [email protected] )

29. Cont… Halo effect when the rater perceives one factor as having paramount importance and gives a good rating to an employee based on this one factor. Horns effect the evaluator gives an unfavorable rating to overall job performance essentially because the appraise has performed poorly in one particular aspect of the job 2/18/2023 Ketsela M ( [email protected] )

30. Cont… Central tendency when a rater avoids using high or low ratings and assign average ratings. Standards of evaluation perceptual differences in the meaning of the words used to evaluate employees. Thus, meets expectation, or exceeds expectation may mean different things to different raters. 2/18/2023 Ketsela M ( [email protected] )

31. Cont… Leniency effect Giving undeserved high ratings is referred to as leniency. This behavior is often motivated by a desire to avoid controversy over the evaluation. The downside of this error is that even poor performers may get good ratings and this could create resentment among the good performers. 2/18/2023 Ketsela M ( [email protected] )

32. Cont… Strictness effect Being unduly critical of an employee’s work performance is referred to as strictness. Some managers apply an evaluation more rigorously than the organization’s standards. Contrast effect This occurs when another employee’s performance influences the ratings that are given to someone else. 2/18/2023 Ketsela M ( [email protected] )

33. Cont… Similar-to-me error This error reflects a tendency on the part of raters to judge employees more favorably who they perceive as similar to themselves. It has been shown that the more closely an employee resembles the supervisor in attitude or background, the stronger the tendency of the supervisor to judge that person positively. 2/18/2023 Ketsela M ( [email protected] )

34. Cont… Personal bias/prejudice- Consciously or unconsciously, a rater may systematically rate certain employees lower or higher than others on the basis of race, origin, gender, age, or other factors. Recency effect This error occurs when a rater overemphasizes an employee’s most recent behavior. 2/18/2023 Ketsela M ( [email protected] )

35. Cont… Relationship effect Employees in high-quality trusting relationships with supervisors receive higher ratings regardless of how long they have worked for the supervisor, whereas employees in distant, low-quality relationships do better than average when the relationship is long-term. 2/18/2023 Ketsela M ( [email protected] )

36. Improving Performance Evaluations Begin with a strong performance plan - A clear performance plan greatly reduces the amount of time needed individual biases. Use a uniform evaluation cycle Conducting all evaluations at the same time helps supervisors devote enough time to write good evaluations, ensures consistency between employees. 2/18/2023 Ketsela M ( [email protected] )

37. Cont… Require regular coaching and feedback Providing ongoing feedback eliminates surprises in the evaluation, helps supervisors focus on supporting employees, and gives employees time to improve performance. Hold formal interim reviews Consider conducting one or more interim evaluations during the year. 2/18/2023 Ketsela M ( [email protected] )

38. Cont… Set clear expectations for supervisors : Supervisors should know both the time frames for completing evaluations, and the standards against which their evaluations will be judged. Provide supervisor training . Provide HR support to supervisors. 2/18/2023 Ketsela M ( [email protected] )

39. Cont… Build a culture that values feedback . Monitor and review evaluations Monitor the completion of performance evaluations, and report to senior management. Have second-line supervisors review draft evaluations. 2/18/2023 Ketsela M ( [email protected] )

40. Case Study 1 - My boss told me that I was not doing a very good job of data entry. When I asked him what he meant, he went around in circles and never gave me a good answer. If you are supposed, how do you arbitrate the case? 2- My boss said I have a bad attitude and gave me a lower overall rating. But I pointed out that I get all my work done well and by the deadline or early, and I questioned what my attitude had to do with my performance. How do you arbitrate the case? 3- One of your employees is not performing up to standard. You decide to talk to her in order to improve her performance. What will be the contents of the conversation? Describe the method of assessment applied . 4- My year’s performance was not going very well. So I made sure to really push and do a good job for the month of December, and I got a good performance review. (Explain the rating problem) 2/18/2023 Ketsela M ( [email protected] )

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42. Thank You 2/18/2023 Ketsela M ( [email protected] )