Appraising and Managing performance by CQkc23E


									   Appraising and
Managing performance
Performance management

   Appraisal performance is only
    one part of the broader process
    is defined as the process
    through which managers ensure
    that employees' activities and
    outputs are congruent with the
    organization’s goals
The three parts of Performance
   1. Defining performance: which
    aspects of perforce are relevant
    to the organization (job analysis)
   Measuring performance (
    through appraisal)
   Feed backing performance
    information ( Performance
    feedback sessions to adjust
    their performance
Performance Planning and
Evaluation (PPE)
   This system seeks to tie the
    formal performance appraisal
    process to company’s strategies
    by specifying at the beginning of
    the evaluation period the types
    and level of performance that
    must be accomplished to
    achieve the strategy. Then at
    the end of the evaluation period
    the employees are evaluated
    based on how closely their
    actual performance met the
What is an appraisal process?

   It is a process where the
    performance of an employee is being
    appraised (evaluated).
   It involves:
   Setting work standards
   Assessing employees’ actual
    performance relative to these
   Providing feedback to the employee
    with the aim of motivating that person
    to eliminate deficiencies or to continue
    to perform above par.
Why should we appraise
   1. It provides information upon
    which to make promotion and
    salary decisions.
   2. provide opportunity for you
    and your subordinate to review
    his/her work related behavior
   3. it is part of the company’s
    career planning process
   4. Appraisals help you better
    manage and improve your firm’s
Who conducts the appraisal?

   It is a supervisory skill. Thus
    supervisors must be familiar
    with basic appraisal techniques,
    understand and avoid problems
    that can cripple appraisals.
   The Hr dept. serves as a policy
    –making and advisory role.
    However final decisions on
    procedures are left to operating
    division heads.
HRs’ responsibility

   To train supervisors to improve
    their appraisal skills. Also
    monitoring the appraisal system
Steps in Appraising Performance

   First: define the job:
   making sure that you and your
    subordinate agree on his or her
    duties and job standards.
   Second: Appraising performance:
    comparing your subordinate’s actual
    performance to the standard that has
    been set.
   Third: Provide feedback;
    the two discuss the subordinates’
    performance and progress and make
    plans for any development required.
A. The Attribute Approach

   The attribute approach to
    performance management focuses
    on the extent to which individuals
    have certain attributescharcteristics
    or traits) believed desirable for the
    company’s success. This technique
    defines a set of traits-such as
    competitiveness-and evaluate
    individuals on them
The Attribute approach

   Graphic rating scale:
   Is the simplest and most popular
   It lists traits (quality, reliability) and a range
    of performance (from unsatisfactory to
    outstanding) for each trait.
   The rater rates each subordinate by circling
    or checking the score that best describes
    his or her performance for each trait. You
    then total the assigned values for the traits.
Problems with Rating scales
   Unclear standards problem : Traits and
    degrees of merit are ambiguous because
    of the subjectivity of each supervisor, what
    may seem good for one rater may seem
    fair for another.
   Halo effect: a supervisor rates an
    employee as fair in all traits because the
    employee is unfriendly.
   Central tendency: rating most people in
    the middle ( average)
   Leniency or strictness: giving everyone a
    high( low) rate.
   Bias: (age, sex, race may affect the
B. The Comparative e
   This approach to performance
    management requires the rater
    to compare an individual's
    performance with that of others.
The comparative approach
   1. Ranking:
   Requires managers to rank employees
    within their departments from highest to
    poorest performers (or best to worst).
   This method has received specific attention
    in the courts. The court actually stated that
    “there is no way of knowing precisely what
    criteria of job performance that
    supervisors were considering, whether
    each supervisor was considering he same
    criteria or not.”’
The comparative approach

   2. Forced Distribution
   You place predetermined
    percentages of ratee’s into
    performance categories:
   15% high performers
   20% high-average performers
   30% average performers
   20% low-average performers
   15% low performers.

   Many firms are adopting this
    practice if there is( i.e.10% in
    the bottom they get 90 days to
    improve if not they get a chance
    to resign.
3. The Behavioral Approach

   This approach to performance
    management attempts to define
    the behaviors an employee must
    exhibit to be effective in this job
The Behavioral Approach

   1. Critical Incident Method:
   The supervisor keeps a log of
    positive and negative examples
    (critical incidents) of a
    subordinate’s work related
    behavior. Every six months, the
    supervisor and subordinate
    meet to discuss the latter’s
    performance using the incidents.
Advantages of the critical incident
   It provides actual examples of good and
    poor performance the supervisor can use
    to explain the person’s rating.
   It ensures that the manager or supervisor
    thinks about the subordinate ‘s appraisal all
    during the year.
   The rating does not only reflect the
    employee’s most recent performance.
   The list provides examples of what
    specifically the subordinate can do to
    eliminate deficiencies
   (This method is not useful in making
    salary decisions)
The Behavioral Approach

   2. Behaviorally Anchored
            Rating Scales
 (BARS) combines between the
  benefits of graphic rating scale
    (traits) and critical incidents
 (positive and negative behavior).
The Behavioral Approach
   3. Organizational Behavior
   OBM-entails managing the behavior
    of employees through a formal
    system of behavioral feedback and
    reinforcement. This system builds on
    the behaviorist view of motivation,
    which holds that individuals' future
    behavior is determined by past
    behaviors that have been positively
   It best suited to les complex jobs
4. The results approach

   This approach relies heavily on
    managing by objectives, it
    assumes subjectivity can be
    eliminated from the
    measurement process. There
    are two performance
    management stems: the MBO
    and the productivity
The Results Approach

   Management By Objectives
   Requires the management to
    set specific measurable goals
    with each employee and then
    periodically discuss the latter’s
    progress toward these goals.
Problems with the MBO approach

   1. Setting unclear ,un-measurable
   2. It is time consuming, setting
    objectives, measuring programs, and
    giving feedback can take several hours
    per employee per year.
   3. Setting objectives with subordinates
    sometimes turns into a tug-a –war, you
    pushing for higher quotas and the
    subordinate pushing for lower ones.
The Results Approach
   Productivity Measurement and
    Evaluation system (ProMES)
   The main goal is to motivate employees to higher
    levels of productivity. It is a means of measuring
    and feeding back productivity information to
   This depends on four steps:
   People identify the products, or sets of activities the
    organization expects to accomplish
   Then the staff defines indicators which measure
    how well it products are being generated by the
   3. the staff establishes contingencies between the
    amount of the indicators and the level of evaluation
    associated with that amount
   4. a feedback system is developed employees with
    specific level of performance on each indicator
Who should do the
   The immediate supervisor:
   He should be in the best
    position to observe and
    evaluate the subordinate’s.
   Peer appraisal:
    self-managing teams, it can
    predict future management
    success. except for logrolling:
    when peers collude to rate each
    other highly.
Who should do the
   Rating committees:
   By the immediate supervisor
    and three other supervisors .
   This eliminates halo effect or
    biases. If this committee can not
    be available it is advised that the
    manager of the supervisor
    makes the appraisal.
Who should make the appraisal?

   Appraisal by subordinates:
   Appraising their supervisors in a
    process called :upward feedback.
   This helps top managers
   Management styles
   Identify potential people problems
   Take corrective actions with
    individuals managers as required.
           This is essential for
       developmental rather than
            evaluative purposes.
360-Degree Feedback
   An employee
   Supervisor
   Subordinates
   Peers
   Internal and external customers.
   The survey will include skills like ”returns
    phone calls promptly” listens well”. A
    computer will gather the feedback into
    individualized reports that HR presents to
    the rate's . Then they meet with their
    supervisors to share information they feel
    is pertinent (considered essential) for the
    purpose of development
Types of interviews

   Performance is satisfactory
    leading to employee promotion.
   Performance is satisfactory not
    leading to employee promotion(
    because of no positions
   Unsatisfactory performance
    leading to correctable action.
Where does the problem lie?

   In the satisfactory performance with no
    positions for promotions.
   Companies overcome this by giving out
    bonuses, or incentives additional authority
    to handle a slightly enlarged job. Do you
    think this is satisfactory for the employee
   And in the poor performer that needs
    correctable actions. They become
    defensive and usually deny the fact that
    they are poor performers.
Do appraisals really help to
improve performance?
   Shocking research results
    claims that:
   32% of 300 managers rated that
    performance appraisals are
    “very ineffective” while 4%
    considered it” very effective”.
Performance Management

   Companies are changing the way
    people view the HR functions they
    are concentrating on working
    backwards by using the term”
    Performance management”
   what kind of performance is required
   Based on this what kind of
    compensation is required for that job
    to be performed
   Based on this what kind of people
    will be selected and hired.

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