Group Presentation

Team 2
Binay Chaudhary
Diya Adhikari
Prabin Rana
Radhika Adhikari
Contents:
I. Factors Affecting Performance Appraisal
II. Performance Appraisal Practices In Nepalese Organization
III. Methods to improve employee performance
IV. Counselling employees with problems on performance
appraisal
Factors affecting performance appraisal
1. Interpersonal (bias): refers to the influence of personal
feelings, preferences, and relationships on one’s judgment and
decisions about others. (Favouritism)
2. Leniency error: Leniency error is when a rater consistently
gives higher ratings or evaluations to individuals regardless of
their actual performance.
3. Halo effect: When our overall impression of someone
influences our perceptions about specific traits or abilities they
possess.
4. Similarity errors: when a rater gives higher ratings to
individuals who are similar to them in terms of background,
interests or attitudes.
5. Recency VS Primacy effect: The primacy effect occurs when
we tend to remember information that we encountered first,
while the recency effect happens when we remember
information that we encountered most recently.
6. Central tendency: It might happen when an interviewer rates
all candidates as average, regardless of their actual
performance.
7. In appropriate substitutes for performance: It could occur
when an interviewer relies on factors like personal appearance
or charisma to evaluate candidates instead of focusing on their
actual skills and qualifications.
8. Attribution error: It might happen when an interviewer
incorrectly attributes a candidate’s success or failure to
internal factors like personality traits, overlooking external
factors like to situation or luck.
9. Unclear Standards: It could lead to biases evaluations if the
interviewer’s criteria for assessing candidates are vague or
subjective.
Performance Appraisal Practices In Nepalese Organization
Performance appraisal (PA) is one of the most important
components in HRM practices. The objective of PA is to decide the
value of work done by an individual or group. Literally, in nay
organization, it is a systematic and objective way to judging
employees contribution.
Features of PA in Nepal:
• The focus of appraisal is mostly dominated by subjective
judgements rather than objective figures and facts
• Most organization in Nepal go through PA once in a year. Only
few organization have practical twice a year
• Only some organized sectors follows formal PA, other follows
informal PA
• In Nepal PA is done only for promotion.
• In Nepal there is no fairness in PA. Nepotism takes place in PA

PA practices in different sector:

 Government Office:
• Civil service act and rules are developed to appraise the
performance of government employees
• These reports are completed annually by supervisors.
• PA is done once in a year
• Total of 40 marks is allotted for performance evaluation. The
marks are divided as follow:-
 Immediate supervisor- 25 marks
 Reviewer- 10 marks
 Review committee- 5 marks
• In Nepal, majority of employees get good marks in PA due to
union influence and risk avoiding nature of raters.
• The PA of government sector is affected by political affiliation,
nepotism, likeness or dislikeness
 Public enterprises:
• Performance appraisal of employees of public enterprises are
done on the basis of “ General Principle” prescribed by Public
Service Commission.
• These reports are filled out by immediate supervisors and
reviewed by higher authorities.
• Metrics such as productivity, efficiency, financial performance,
project completion rates, and adherence to timelines are used to
measure performance. Assessments of soft skills such as
teamwork, leadership, communication, and innovation are also
included.
• Performance appraisal results are used to make decisions
regarding promotions, transfers, and sometimes salary
increments.
• PA helps in identifying the training and development needs,
enabling employees to enhance their skills.
• Again PA in public enterprises is also affected by nepotism, and
likeness or dislikeness.

Conclusion:
Performance appraisal in Nepal has remained unsystematic and
ineffective. Personal biasness and nepotism has affected the PA
practices of Nepal. The system has not motivated employees
towards higher performance. Nor the system is has been used for
employment development based on the results of PA.
 Methods to improve employee performance

1. Proper communication: The first way or method of improving

employee performance (both managerial and non-managerial)
is proper communication. Supervisors should encourage their
subordinates in this respect. Important informations can be
received from employee’s side by using team meetings,
suggestion boxes or surveys. In this context supervisors need
to be open minded. They should actually encourage expression
of ideas without criticizing any part of it.
2. Identify reasons for under performing: This method is only
applicable to those employers whose performance is below the
standard. In this case, it’s vital not to jump straight to the
conclusion. Supervisors need to discuss this problem with an
open-minded attitude. Managers need to identify the problems
background and its root cause . As the reason for
underperformance is identified, both of the parties should be
ready to solve the problem (improve the performance).
3. Creation of positive work environment: To improve the
performance, a better or positive work environment is always
necessary. The working environment has to be created in such a
way that all employees feel happy, important, and feel to spend
their time and effort. Employees should not feel restricted at any
moment.
4. Providing effective training: It is one of the proven way to
enhance employee performance. Employees can be helped to
improve skill through on-the-job and off-the-job training.
They can be encouraged to attend different seminars, and
workshops related to their job activities.
5. Rest and entertainment: Over pressure and monotonous work
activities can harm productivity. Therefore ,once in a while
work should be postponed and offer the rest and
entertainment activities if possible (or as far as possible).
Mnanagers can arrange lunch programs with their employees.
Managers can use other ways or methods as per need or
availability of facilities.
 .

6. Appreciate contributions: This is one of the most neglected

activity in many organizations. If managers want to boost
their employees morale and motivation, they have to
recognize their individual contributions and
accomplishments. No matter they are big or small. By this
approach employees will try to give the best they can give to
the company. They can be even more creative and eager to
work.
 .

Counselling employees with problems on performance

appraisal
When counseling employees who are facing issues with
performance appraisals, it’s important to approach the situation
with sensitivity and a focus on constructive solutions. Here are
some steps to guide you:
1. Create a Supportive Environment: Begin by creating a
comfortable and confidential space where the employee feels
safe to discuss their concerns openly
2. Listen Actively: Allow the employee to express their feelings
and frustrations about the appraisal process without
interruption. Show empathy and validate their emotions to
build trust..
3. Understand the Issues: Clarify the specific challenges the
employee is experiencing with the appraisal process. This
could include misunderstandings about expectations, perceived
unfairness, or unclear feedback.
 .

4. Provide Clarifications: Ensure the employee understands the appraisal

criteria and how assessments are conducted. Clarify any
misunderstandings about the process or the feedback received
5. Offer Constructive Feedback: Provide specific examples and evidence to
support your feedback. Focus on behaviors and outcomes rather than
personality traits or assumptions.
6. Explore Root Causes: Discuss with the employee to identify any
underlying reasons contributing to their performance issues. This
could involve factors such as training gaps, workload issues, or
personal challenges.
7. Develop an Action Plan: Collaboratively develop a plan to address
the identified issues and improve performance. Set clear, achievable
goals and outline steps to achieve them. Ensure the plan is realistic
and aligned with the employee’s capabilities and resources.
8. Provide Support and Resources: Offer necessary support, such as
additional training, mentoring, or resources, to help the employee
meet their performance goals. Encourage ongoing development and
provide feedback along the way.
 .

9. Follow-Up: Schedule regular follow-up meetings to monitor

progress, provide guidance, and adjust the action plan if
needed. This demonstrates your commitment to supporting
the employee’s improvement.
10. Document Discussions: Keep thorough records of your
discussions, agreements, and action plans. Documenting
these sessions helps track progress and ensures consistency in
future evaluations.

Conclusion: By approaching counseling sessions with empathy,

clear communication, and a focus on collaborative problem-
solving, you can help employees navigate performance appraisals
more effectively and improve their overall performance and
satisfaction in the workplace.
 .

Thank You 