This document discusses performance management and performance appraisals. It defines performance as successfully accomplishing tasks through skills, knowledge and motivation. Performance management is establishing shared goals and developing employees to achieve organizational objectives. Key aspects of performance management include identifying, measuring, evaluating, improving and rewarding employee performance. Performance appraisals systematically evaluate employee performance against standards and provide feedback. They are used to provide rewards, training, determine potential and review performance. The document outlines the performance appraisal process and various appraisal techniques. It also discusses challenges in performance appraisals such as biases and ineffective practices.
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What is Performance?
Doing something successfully by using skills,
knowledge and motivation
“Outcomes, results or accomplishments”
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Performance Management
a process to establish a shared understanding
about what is to be achieved, and an
approach to managing and developing people
in order to achieve it
Getting better results for the organization via
the measurement of individual performance
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Nature of Performance Management
• Performance Management
Processes used to identify, encourage, measure,
evaluate, improve, and reward employee performance
Provide information to employees about their performance.
Clarify organizational performance expectations.
Identify the development steps that are needed to enhance
employee performance.
Document performance for personnel actions.
Informing and getting agreement on individual performance
Facilitate them to achieve better results
Provide rewards for achieving performance objectives.
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Performance Management is A Part of
HRM Cycle
Recruitment &
Selection
Performance Appraisal
Reward
Training and
Development
Performance depends upon each of the four components and how they are coordinated
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Performance Standards
• Performance Standards
▫ Expected levels of performance
Benchmarks, goals, and targets
▫ Characteristics of well-defined standards
Realistic
Measurable
Clearly understood
Challenging
E.g. - Finish 20 bags per hour
- Making 20 presentation with at least grade B in first semester
- Innovate 3 new products in the first three months
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Performance Appraisal
• “The systematic description of an
employee’s strengths and weaknesses”
• The process of evaluating how well
employees perform their jobs when
compared to a set of standards, and then
communicating the information to
employees.
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Performance Appraisal
▫ Informal appraisals: ongoing basic within the
organization
▫ Formal appraisals: occurrence at certain intervals
throughout that person’s history of employment
Performance Appraisal is a part of Performance Measurement Process
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Uses of Performance Appraisal
Performance
Appraisal
Performance
Appraisal
To provide rewardsTo provide rewards To provide trainingTo provide training To review potentialTo review potential
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Benefits of Performance Appraisal
Individual
• Objectives can be
established in relation the
whole organization
• Key results and timescale
can be established
• Can compare past
performance and future
activities against standards
• Can be known pay on the
basis of performance
Organization
• Suitable promotion
candidates can be identified
• Areas of improvement can
be seen
• Communication is improved
• Basis for medium to long
term HR planning
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The Process of Performance Appraisal
• Step 1- Identification of criteria
• Step 2- Appraise for a period of time
• Step 3- Prepare an appraisal report by manager
• Step 4- Appraisal interview
• Step 5- Modify the report if necessary as a result
of interview
• Step 6- Review of the assessment
• Step 7- Prepare the action plan for improvement
• Step 8- Implement the action plan
• Step 9- Follow up the result
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Who Conducts Appraisals?
Supervisors rating
their employees
Employees rating
their superiors
Multi-source
Outside sources
rating employees
Team members
rating each other
Employees rating
themselves
Sources of
Performance
Appraisals
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Appraisal Interview
• Interview between Manger (may be one of
the appraiser) and subordinate (appraisee)
• The purpose is to encourage collaborative
problem solving and improvement planning
• Three styles of manager that can be adopted
– Tell and sell
– Tell and listen
– Problem solving
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Appraisal Errors
• Halo error: A situation in which a supervisor
generalizes from one dimension of a person’s
job performance to all dimensions of
performance.
• Error of central tendency: An error that occurs
when a manager rates all employees average,
even when their performances vary.
• Leniency error: A situation occurs when
manager rates all employees in a group higher
than they deserve.
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Why PA May Fail
Unclear
Language
Mgr not taking
PA seriously
Mgr not
prepared
No on-going
feedback
Mgr not
honest or
sincere
Ineffective
discussion
Lack appraisal
skills
Mgr Lacks
Information
Insuff.
Rewards
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Sources of Ineffective Performance
Organization Policies and
Practices
• Ineffective job placement
• Insufficient job training
• Lack of attention to employee
needs or concerns
• Inadequate communication
within organization
• Unclear reporting relationship
Job Concerns
• Boredom job
• Lack of growth or
advancement opportunities
• Unsafe working conditions
• Excessive workload
• Lack of job skills
Personal Problems
• Marital problems
• Financial worries
• Emotional disorders
• Conflict between work
demand and family demand
• Other family problems
• Lack of effort
External Factors
• Industry decline or extreme
competition
• Conflict between ethical
standards and job demands
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Self-Managed Teams
Characteristics
• Focusing group result
• Larger Span of control
• More part-
time/contract workers
• More cross-functional
workers
Challenges
• Measuring individual
result Unfair & Hard
• Quality and
commitment std.
Diverse
• Measure cross-
functional performance
Tough