Chapter 5 Performance Appraisal Flashcards
determines whether employees perform effectively and meet the company’s expectations. It concretizes and measures performance as an aspect of the performance management system.
Performance appraisal
- one of the best ways to keep employees motivated.
Performance Evaluation
the roots of performance appraisal traced to Taylor’s pioneering time and motion studies.
In the early 20th Century
an employee’s accomplishment of assigned work measured against standards of the employee’s position
Performance
Refers to the integrated process by which organisation involves it employees in improving organisational effectiveness in the accomplishment of organisation mission & strategic goals.
Performance Management
Performance Management consists of:
~ Performance Planning
~ Monitoring Employee Performance
~ Employee Development
~ Evaluating Performance
~ Recognition
Characteristics of Performance Appraisal
• It is a step by step process.
• It is a Scientific & Objective study.
• It examines the employee’s strengths & weaknesses.
• It is an ongoing & continuous process
• It is a secure process for making correct decision on employees
Job Evaluation
Job rated keeping in mind responsibility.
Qualification. experience. working conditions.
A job rated before employee appointed.
Purpose is to establish wage differentials
It is not compulsory
Job evaluation committee is consulted for inc
burpose of Evaluation.
Performance appraisal
Employee rated on the basis of performance
Employee rated after the emolovee has been hired and placed.
Purpose is to decide promotion, rewards, punishments, etc.
Compulsory
Appraisal is done by the employees themselves
Objectives/Importance of Performance Appraisal
To review the performance of the employee over a given period of time.
To judge the gap between the actual & desired performance.
To help the management in exercising organizational control.
• elps to strengthen the relationship & communication between superior, subordinates & management-employee.
• To diagnose the strength & weakness of the individuals so as to identify the training & development needs for the future.
• To provide feedback to the employees regarding their past experiences.
• Provide information to assist in the other personnel decisions in the organisation.
Provide clarity on the expectations & responsibilities of the functions to be performed by the employees.
• To judge the effectiveness of other human resource function of the organisation such as recruitment, selection, training & development.
To reduce the grievances of the employees.
Pre-Requisites for Effective & Successful Performance Appraisal
• Documentation
Standards/Goals
Practical and Simple Format
Evaluation Technique
Communication
• Feedback
• Personal Bias
Challenges of Performance Appraisal
Determining the Evaluation Criteria
Create a Rating Instrument
• Lack of Competence
Errors in Rating and Evaluation
• Resistance
Traditional Approach/Overall
Approach
Method for determining and justifying the salaries of the employees.
Past Oriented
Training and Development
Modern Approach
Performance development has made the performance appraisal process more formal and structured.
Performance Appraisal is taken as a tool to
identity better performing employees from others
Future Oriented Aboroach towards its individuality
Process of Performance Appraisal
•Objectives of Performance Appraisal
•Establishing Performance Standards
•Communicating the Standards
• Measuring the Actual Performance
•Comparing the Actual with the Desired Performance
•Discussing Results
•Decision Making
Personal Qualities
Adaptability
Appearance and Bearing
Decisiveness
Dependability
Drive and Determination
Ingenuity
Initiative
Loyalty
Maturity
Stamina
Tenacity
Verbal Expression
Written Expression
Demonstrated Performance
Professional Knowledge
Administration ADITICY
Responsibility for Staft Develonmen
Foresight
Delegation
Motivation
Morale
Control
(Common errors in Performance Evaluation)
Tendency of a rater to evaluate people in comparison with other individuals rather than against the standards for the job.
Contrast Effect
Common errors in Performance Evaluation
Tendency of a rater to make an initial positive or negative judgment of an employee and allow that first impression to colour or distort later information.
First impression Error
Common Errors in Performance Evaluation
- Inappropriate generalizations from one aspect of an individual’s performance to all areas of that person’s performance
Halo/Horns Effect
Common Errors in Performance Evaluation
The inclination to rate people in the middle scale even when their performance clearly warrants a substantially higher or lower rating.
Central Tendency
Common errors in Performance Evaluation
The opposite of central tendency: the rating of all individuals as higher or lower that their performance warrants.
Negative and Positive Skew
Common errors in Performance Evaluation
The tendency to attribute performance failings to factors under the control of the individual and performance successes to external causes
Attribution Bias
Common errors in Performance Evaluation
The tendency of minor events that have happened recently to have more influence on the rating than major events of many months ago.
Recency Effect
