Performance Appraisal & Performance Management
Performance Appraisal & Performance Management
Performance Appraisal & Performance Management
Performance Management
• Job performance is an individual output in
terms of quality and quantity expected from
every employee in a particular job
• Measuring performance is an essential
function in business management
Performance management:
It is the process of managing and developing employee performance
throughout the organization. It aims at planning, tracking and assessing
employee performance for a specific period. The end result of performance
management is to motivate employees and further increase their efficiency
and effectiveness.
Performance appraisal:
The process of evaluating employee performance on a regular basis is
called as performance appraisal. Although, unlike performance
management, it is restricted to evaluating past performance and conducted
once or twice a year, depending upon the organisation’s policies.
Appraise Performance
Performance Interview
What to What
Evaluate? How to Problems?
Solve?
a. Formal Vs Informal
• First step to decide whether appraisal should be
formal or informal
• Formal
- occur at specified time period- once or twice in
a year
-require for the purpose of employee evaluation
• Informal app. Occurs whenever supervisor feels
the need for communication eg. Recognition of
performance
• Mixture of both can be used
• Formal appraisal is used as primary evaluation
and informal is useful for more performance
feedback
b.Whose Performance should be rated
• Obviously Employees
• Individual or group?
• Group level- when there is difficulty in
identifying individual performance and if
group cohesiveness has to be assessed
• Group level- if the tasks are interdependent
c. Who are the raters
• Immediate Supervisor- most fit because he is
familiar with subordinate
• Subordinate- can assess the performance of
superiors- ability to communicate, delegate
work, allocate resources, disseminate
information, resolve intrapersonal conflict,
and deal with employees on fair basis
• Peers
- better position to evaluate certain facts of job
performance which supervisors or subord cannot
do
-Contribution to workgroup projects,
interpersonal effectiveness, communication skills,
reliability and initiative
-may result in distortion of evaluation
-serious conflicts among coworkers may develop
• Clients – seldom used for rating, provide
feedback on interest, courtesy, dependibility
and innovativeness
• Rating Committees
- composed of immediate supervisors and
three or four other supervisors
-objectivity in rating
• Self Appraisal-rate own performance
• In practice , combination of methods can be
used for ex. Evaluation of self may be followed
by a superior, the personnel department, or
by the HR department
d. Problems of Rating
• PA are subject to wide variety of inaccuracies
and biases referred to as ‘rating errors’
• Occur in raters observation, judgement and
information processing
e. Solving rater’s problem
• Providing training to raters
f. What should be rated
• Quality
result approaches perfection in terms of
conformity to standards
• Quantity
Amount produced in terms of no. of units,
monetary terms or no of completed activity
standards
• Timeliness
Activity completed at earliest time desirable
• Cost Effectiveness
The degree to which the use of the org’s
resources (HR, monetary, technological and
material) is maximized in the sense of getting
the highest gain or reduction in loss from each
unit
• Need of Supervision
The degree to which a job performer can carry out a
job function with minimum supervisory assistance
• Interpersonal Impact
The degree to which a performer promotes
feeling of self esteem , goodwill and co-
operation among coworkers and subordinates
Timeliness
• Employees should receive information about how they're doing as timely as possible
Specific
• Pinpoint discrete, observable performance expectations/ behaviors; Be objective
Simple
• Concentrate on one or two things at a time; don’t overwhelm the employee with too much
information at once.
Relevant
• Make sure the employee can act on feedback (does he or she have the skills,
knowledge, systems support, or whatever else is required)?