Amity Business School
Performance Appraisalpraisal
Amity Business School
Performance
• The action or process of performing a task.
• Fulfillment of an obligation
• It is actual application.
• It is always the external evidence
Amity Business School
Amity Business School
Amity Business School
Objective
• To provide a feedback to employees regarding their performance
and related status.
• To identify the strengths and weaknesses of employees to place
right men on right job.
• To maintain and assess the potential present in a person for
further growth and development.
• To maintain records in order to determine compensation packages,
wage structure, salaries raises, etc.
.
• To review and retain the promotional and other training
programmes.
Amity Business School
Summary of Objective
• Opportunity to Regularly Discuss Results
• Supervisor Identifies Strengths and Weaknesses
• Fair and Equitable Format
• Basis for Salary/Promotion Recommendations
Amity Business School
Amity Business School
Amity Business School
Amity Business School
QUIZ
LOGIN TO WWW.KAHOOT.IT
10
Amity Business School
What We Tend To Remember
• First impressions
• Recent behaviors
• Unusual behaviors
• Extreme behaviors
• Behavior consistent
with opinion
11
Amity Business School
What We Tend to Forget
• Details
• The source of
the information
12
Amity Business School
Common Rating Errors
• Halo or Horns
• Range Restriction
– leniency
– strictness
– central tendency
• Location Errors
– proximity
– contrast
13
Amity Business School
Low Rater Reliability
Common rating
errors:
• Different standards
and comparisons
• Observation of
different behaviors
14
Amity Business School
Making Attributions About Behavior
• Consensus
• Distinctiveness
• Consistency
15
Amity Business School
Other Rating Issues
• Evaluation
Frequency
– semi-annual
– annual
– more frequent during
probation?
• Formal vs. informal
16
Issues and Problems in Performance
Amity Business School
Appraisal
Incompetence
Lack of
impersonal
and timely Lack of Job
feedback- relatedness
Other issues
of
Performance
Lack of Appraisal- Lack of
Standardisation Reliability
Lack of Complicated
Documentation formats
17
Amity Business School
https://www.youtube.com/watch?v=jCPaQuY-ejg
Amity Business School
Historical Review/ Evolution of Performance
appraisal
19
Amity Business School
Amity Business School
Evolution of Performance Appraisal Methods
Amity Business School
Job Description & Performance
Appraisal
What better way to assess an employee’s
performance than to compare it to the
expectations of the job
Amity Business School
Job Description
• It is a list of:
o General Tasks/functions
o Key duties
o Key role interactions
o Professional skills
o Work environment
o Performance standards
o Salary and benefits
Amity Business School
Amity Business School
Effect of JD on Employee Performance
• Effective Recruiting
• Productivity
• Morale and Retention
• Annual reviews
• Organizational planning
Amity Business School
Amity Business School
Amity Business School
Amity Business School
History of PA Amity Business School
• Mid 1950 – Personality based system
• 1957 (McGregor) Participative and performance based
approach
• 1960- MBO – Goal setting and assessment of
performance related activities
• 1970 – Research on Rating scale and its use
• 1980-1990 – more holistic and vogue
• 1999 – Metacompetencies
Amity Business School
Traditional Methods
• Straight Ranking Method
• Paired Comparison Method
• Grading method
• Graphic Rating Scale
• Confidential Report
• Essay Evaluation
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Forced Choice Description Method
Amity Business School
Amity Business School
Checklist
Amity Business School
Forced Distribution Method
(Joseph Tiffin)
• Rating of Two Factors:
1. Job Performance
2. Promotability
Amity Business School
Essay Method
Amity Business School
Amity Business School
Modern Methods
• Critical Incident Technique
• BARS
• MBO
• Balance Score Card
• 360 Degree Appraisal
41
Amity Business School
Critical Incident Technique
(Behaviour Based)
• Identify the major dimensions of
performance on the job
• Generate ‘Critical incidents’ of performance
• Double check that the incidents represents
one dimension (Retranslation)
• Assign effectiveness values to each
incidents
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
How to Construct BARS
• Step I: Collect critical incidents
• Step II: Identify performance dimensions
• Step III: Reclassification of incidents
• Step IV: Assigning scale values to the incidents
• Step V: Producing the final instruments
Amity Business School
48
Amity Business School
MBO (Management By Objective)
Amity Business School
Key Elements:
1. Arranging organizational goals in a means- end
chain
2. Engaging in joint goal setting
3. Conducting periodic progress reviews
4. Conducting annual performance reviews
Amity Business School
Characteristics
• Helps to align the goals
• Provide focus
• Use S.M.A.R.T. system for establishing the
goals
• Prevents “Activity Trap”
• Empowers employees
• Emphasizes participative management
• Concentrates on key result areas
Amity Business School
360 Degree Appraisal Method
Amity Business School
Amity Business School
• Used for Middle and Senior level employees
• Offer a more comprehensive view towards the performance of employees.
• Min of 12 raters
• Create a channel of open communication
• Very expensive
Amity Business School
Balance Score Card
(Robert and David)
Setting of BSC:
Vision + Mission + Values = Goals + Objectives +
strategies
Strategy maps Action Plan (Projects &
Initiatives)
BSC : A careful selected set of quantifiable measures
derived from organization’s strategy maps
Amity Business School
56
Amity Business School
57
Amity Business School
BSC
Amity Business School
Financial Perspective
(How do we look to our share holders)
Amity Business School
Amity Business School
Customer Persepective
(How do our customer See us)
Amity Business School
Amity Business School
Internal Process Perspective
(How well the business is Running)
Amity Business School
Amity Business School
Employee Knowledge and Growth Perspective
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Two Types of KPIs
• Leading Indicators: Measure activities that has significant effect on future
performance
• Lagging Indicators: Measure the output of past activity
Amity Business School
Performance Management
Amity Business School
Factors affecting Performance
Amity Business School
Amity Business School
77
Amity Business School
Definition
Performance Management is
defined as :
Strategic & Integrated
approach to deliver successful
results in the organization by
improving the performance
and developing the capabilities
of team & individuals.
(Armstrong & Baron)
78
Amity Business School
Performance Management
Features:
•Emphasis on both Development & Evaluation
•Defining individual strength and developmental needs
•Integration of results and means of achieving it.
•Separation of developmental review from salary review
Basic aim of PMS:
1.Understanding + Participation + Use -- expectations
2.Capacity Levels of capability
level of support by management
resources made available to them
Amity Business School
Components of Effective PMS
• Performance Planning
• Performance appraisal and Reviewing
• Feedback followed by personal counseling and performance facilitation
• Rewarding good performance
• Performance improvement plans
• Potential apprasial
Amity Business School
PMS Cycle
Amity Business School
PERFORMANCE MANAGEMENT
SEQUENCE
Amity Business School
