Performance Appraisal

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Performance Appraisal
Any procedure that involves:
1.Setting work standards
2.Assessing the employee’s actual performance
Relative to those standards:
3.Providing feedback to the employee with the aim of motivating him or her to eliminate performance deficiencies or to contribute and continue to perform above par

Why Assess/Appraise Performance?
1.To provide feedback about strengths and weaknesses
2.To distinguish between individuals in allocating rewards
3.To evaluate and profile the quality of employees
4.To create a paper trail in documenting the reason for certain decisions

What Performance to Asses/Appraise?
1.Skills/Abilities/Needs/Traits
a.Job knowledge
b.Strength
c.Eye-hand coordination
d.Business Knowledge
e.Desire to achieve
f.Leadership
g.Social needs
h.Dependability
i.Loyalty
j.Honesty
k.Creativity
2.Behavior
a.Performance of task
b.Obey instructions
c.Report problems
d.Maintain equipment
e.Maintain records
f.Follow rules
g.Attend regularly
h.Submit suggestions
i.Smoking abstinence
j.Drugs abstinence
3.Results
a.Sales
b.Production levels
c.Production quality
d.Wastage
e.Accidents
f.Equipment repairs
g.Customers served
h.Customer satisfaction
Who should assess/appraise performance?
1.Immediate supervisor or manager
2.Higher-level managers
3.Independent outside observers (more objective)
4.Peers
5.Customers
6.Subordinates

Performance Management
An integrated process that unites goal setting, performance appraisal and development into a single system, common system whose aim is to ensure that the employee’s performance is supporting the company’s strategic aims

Building blocks of an effective performance management process:

Decision Sharing
Means communicating the organization higher level goals through the organization and then translating these into doable departmental goals

Role Clarification
Means clarifying each employee’s role in terms of his or her day-to-work

Goal Setting and Planning
Means translating organizational and departmental goals into specific goals for each employee

Goal Alignment
Means having a process in place that allows any manager to see the line between an employee’s goals and those of the department and organization

Developmental Goal Setting
Involves ensuring that each employee “thinks through, at the start of any performance period, and what do I have to do to achieve my goals”

Ongoing Performance Monitoring
Includes using computer-based systems that measure and then email progress and exception reports based on the person’s progress toward meeting his or her performance goals

Ongoing Feedback
Includes both face-to-face and computer-based feedback regarding progress toward goals

Coaching and Support
Should be integrated part of the feedback process

Guidelines for effective goal setting:
1.Assign specific goals
2.Assign measurable goals
3.Assign challenging but doable goals
4.Encourage participation
Steps in Appraising Performance:
1.Defining the job
2.Appraise performance
3.Provide feedback

Appraisal Methods:
Graphic Rating Scale
Lists traits such as quality and reliability and a range of performance values (from unsatisfactory-outstanding) for each trait The supervisor rates each subordinate by circling or checking the score that best describes his or her performance for each trait

Alternation Ranking Method
List of all subordinates to be rated and then cross out the naives of any not known well enough to rank, and then indicate the employee who is the highest on the characteristics being measured and also the one who is the lowest.

Paired Comparison Method
For every trait (quantity of work, quality of work and so on), you pair and compare every subordinate with every other subordinate

Forced Distribution Method
Grading on a curve

Critical Incident Method
The supervisor keeps a log of positive and negative...
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