Appraising and Managing Performance

1. Appraising and Managing Performance

2. Process of Performance Appraisal Objectives of performance appraisal Establish job expectations Design appraisal program Appraise performance Performance interview Adopted from: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 241 Performance |Management Archival appraisal data Use appraisal data

3. Performance Appraisal Process Designing Appraisal Program When to evaluate? What methods? Formal vs informal Appraisal Design Whom to evaluate? How to solve? What to evaluate? What problems/errors? Who are the raters?

4. Designing Appraisal Program 1 Formal vs Informal • Formal appraisal normally occur at specific time (six month or one year) • Informal regular when supervisor feels need • Whom to Evaluate • Individual or team performance • Who Should be the rater? a) Immediate supervisor b) Subordinates c) Peers d) Clients e) Self appraisal

5. 4 PerformanceAppraisal Errors

6. Designing Appraisal Program Solving Rater’s Error Training and Practice What to evaluate a) Traits b) Behaviors c) Results/Goals Other dimensions a) Quality b) Quantity c) Timeliness d) Cost effectiveness e) Independent working f) Interpersonal and cohesiveness effect

7. Designing Appraisal Program When to Evaluate? To decide the appraisal period (three months, six months or year) Methods of Performance Appraisal

8. Performance Appraisal Methods

9. Performance Appraisal Methods

10. Performance Appraisal Methods

11. Performance Appraisal Methods

12. GOAL-BASED APPRAISAL SYSTEM Supervisor sets goals for subordinate Organizational goals Agreed goals and objectives Department or Unit goals Subordinate proposes goals and Objectives Mid Term Review (Readjustment in goals if internal or external factor changes) Annual Review Adopted from: Snell, Bohlander & Vohra: Human Resource Management. A South Asian Perspective, (2010, p.337)

13. 360 Degree Performance Appraisal Supervisor Client Peers 360 Degree Performance Appraisal Team Members Self Subordinate

14. Source: Snell, Bohlander & Vohra: Human Resource Management. A South Asian Perspective, (2010, p. 324)

15. Process of Performance Appraisal • Appraise the Performance • Measure the performance what he does or what he does not do • It should also include potential of employee in addition to his actual performance • From different job different performance criteria should be used • Performance Management Feedback on performance must be used purposefully 1) Performance Interview • Performance appraisal outcome should be discussed and shared with employee • Three goals of performance interview a) change behavior of poor performers b) maintain behavior of employee who perform well c) appreciate superior performers

16. Designing Appraisal Program Archiving Performance Data Keep record of performance data for future Use of Performance Data Use performance data to streamline HR activities and make employee related decisions Key Message: Performance Appraisal System should be designed with care and organizational goals must linked with personal goals Performance appraisal must be shared with employees to identify their strength and weaknesses and tell them where they need improvement and how to improve the performance HR decisions must consider performance appraisal information

17. Summary • Performance Appraisal • Relationship between Performance Appraisal and Job Evaluation • Objectives of Performance Appraisal • Multi Purposes of PerformanceAppraisal • Performance Appraisal and Competitive Advantage • Process of Performance Appraisal • Performance Appraisal Methods • Goal Based Performance Appraisal • 360 Degree Performance Appraisal