Performance Appraisal

1. Performance Appraisal Determinants and obstacles Definition Importance Uses Process of appraisal Methods Goal setting Sources Errors

2. Performance • Refers to the effective and efficient accomplishment of objectives. • It may be stated in terms of levels of excellent, outstanding, good, and poor. • Is a result of the efforts expended by the employee and which is modified by his abilities and his perception of his role.

3. Environmental factors that may affect performance: • Conflicting demands on the employee’s time; • Inappropriate work facilities and equipment • Restrictive policies that affect the job • Lack of cooperation from co-employees • Poor supervision • Inappropriate temperature in the workplace • Poor lighting • Noisy surrounding • Improper shifting of the employee • Unsafe premises

4. Performance Appraisal Definition: It is the process of evaluating individual job performance as a basis for making objective personnel decisions. Objective: To motivate employees to adapt and maintain behavior that leads to expected performance

5. Performance Appraisal Uses: For performance appraisal and useful for making decision that involves: Compensation The major motivator of performance is financial reward. Linking performance with pay will result to attaining expected output. Placement Performance appraisal is required for decisions concerning promotion, demotion and discharges . Training and development Potential and weakness of an employee are identified in performance appraisal, which is necessary for training and development needs.

6. Performance Appraisal Formal and Informal: Informal – done whenever the supervisor feels the need of it, assessment is done during conversation of supervisor and employee. Formal - if it uses systematic appraisal system Characterized by: Managers and subordinates share understanding about what has to be accomplished Performance is measured using some techniques. Assessment of employee performance is done on a regular basis semi-annual or annually. During the assessment proceedings, the employee is well aware that his performance is being assessed.

7. Performance Appraisal Process: Consist of the following: Establishment of performance standards. Organization’s strategic goal basis to determine performance standard. Joint superior-subordinate setting of measurable goals. Measurement of performance What has been achieved must be measured Compare performance with standard Discuss result of appraisal with employee When necessary, corrective action is initiated.

8. Performance Appraisal METHODS: Work standard approach Critical-incident appraisal Checklist Essay appraisal or free-form appraisal Graphic rating scale Behaviorally anchored rating scale Ranking method Alternation Paired comparison Forced distribution Forced-choice rating Goal-setting or management by objectives.

9. METHODS of Appraisal • Work standards Approach – involves setting standard level of output and then comparing every employee’s performance with the standard. • Critical Incident Appraisal – to do a job effectively (or ineffectively), there are behaviors that are regarded as critical requirements. A description of these behaviors is referred to as critical incident.

10. METHODS of Appraisal 3. Cheklist – a list of behavioral descriptions is used by the evaluator in the checklist appraisal. 4. Essay Appraisal a.k.a. free-form appraisal – is a method where the appraiser writes a narrative about the person being appraised. 5. Graphic rating scale – uses a set of identified performance factors. 6. Behaviorally anchored rating scale – behavioral anchors are used to assess the performance of an employee.

11. METHODS of Appraisal 7.Ranking methods – comparing the performance of two or more employees. 8. Forced choice rating – where the rater must choose between two or more specific statements about an employee’s work behavior. • Goal setting or MBO – this is made possible with the use of four basic steps.

12. Performance Appraisal SOURCES OF PERFORMANCE INFORMATION Supervisors Able to make frequent observation from day to day activities of their subordinates. Peers Equal ranks often work together and are provided with the opportunity of observing one another while at work. Subordinates Self There is no better person to observe and employee but himself Customers Provides information of behavior of employee they encounter.

13. ERRORS IN PERFORMANCE EVALUATION Halo error – committed when the result of evaluation of one trait influences the evaluator in the assessment of the other traits. Single criterion- An error in appraisal may happen when a job consisting of several tasks is evaluated on the basis of a single criterion Leniency error- evaluators are confronted with the tendency to use his or her own value system in appraising the performance of certain individuals. Central tendency error – when all employees are rated within a narrow range as if the perfornamces of all employees are equal or almost equal. Recencyproblem – recent performance is given greater weight than earlier performance. Primacy error is the opposite

14. OVERCOMING ERRORS • Using multiple criteria • Emphasizing behavior rather than traits • Documenting performance behavior • Using multiple evaluators • Evaluating selectively • Training evaluators