performance arraisal

Question 1

is a method of evaluating the behavior of employees in a work place, normally including both the quantitative and qualitative aspect of job performance. Performance here refers to the degree of accomplishment of the tasks that makeup an individual ‘job. It indicates how well an individual fulfilling the job demands. Performance is measured in terms of results.

Answer 1

Performance appraisal or Performance evaluation

Question 2

refers to the regular review of an employee’s job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof.
Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or quarterly.

Answer 2

performance appraisal

Question 3

Types of performance appraisal

Answer 3

4

Question 4

Types of Performance Appraisals

Individuals rate their job performance and behavior. A self‐assessment is an employee’s opportunity to provide a narrative description of their major accomplishments related to the performance elements and associated performance standards in their performance plan. In a self‐assessment, the employee can describe their major contributions and how they accomplished or did not accomplish their performance expectations. Additionally, accomplishments may include other achievements or recognition achieved during the performance year and training and developmental needs. Note: The rating is based on the substance of the contribution, not how well the contribution is described. Providing the self‐assessment does not negate the supervisor’s responsibility to provide a narrative of an employee’s accomplishments to support the end of year rating.

Answer 4

Self-assessment

Question 5

An individual’s workgroup or coworkers rate their performance. Peer feedback allows employees to gain an understanding of their own work as well as the work of their peers. This allows employees to figure an effective way to utilize the skills of their peers and be productive as a team. Asking your peers for feedback regularly, helps you understand your areas of development.

Answer 5

Peer assessment

Question 6

Includes input from an individual, supervisor, and peers. 360° feedback helps to give a fuller picture than just relying on one or two opinions. Multiple sources of feedback give a 3D view of an employee so they can better understand their personal development gaps.But 360° feedback shouldn’t be just about gaps – it should highlight your employees’ strengths, while giving them constructive ways to improve upon their weaknesses.

Answer 6

360-degree feedback assessment

Question 7

A newer trend that utilizes a mediator and attempts to moderate the adversarial nature of performance evaluations by allowing the subject to present first. Also focuses on what the individual is doing right before any criticism is given. This structure tends to be useful during conflicts between subordinates and supervisors.

Answer 7

Negotiated appraisal

Question 8

Characteristics of performance appraisal

Answer 8

7

Question 9

Characteristics of Performance Appraisal

Performance appraisal is not a one-act play. It is rather a process that involves several acts or steps. Performance Appraisal Process is defined as the series of steps which are undertaken in an organization (or Employer) to evaluate an employee on a set of pre-defined performance goals. Performance appraisal usually starts with goal setting which is initiated by the employee to set benchmarks or clear objectives on which he/she would like to contribute in the coming appraisal cycle. The performance goals can also be set by the employer in addition to the employee defined goals.

Answer 9

A Process

Question 10

Performance appraisal is a systematic assessment of an employee ‘s strengths and weakness in the context of the given job.

Answer 10

Systematic Assessment

Question 11

is to know how well an employee is going for the organization and what needs to be improved in him. Performance appraisals can also be good for setting employee goals, deciding who gets promoted, supporting a salary increase, and other business objectives. When you’re conducting a performance appraisal, keep these goals in mind to help you give a more effective review and make the most of the time you spend doing it.

Answer 11

Main Objective

Question 12

One of the most important objectives of a performance appraisal, after improving performance, should be to help employees set goals for the coming year. Employees need to know what you expect them to do and whether the goals are geared toward customer service, operations, or professional development.

Answer 12

Help employees set goals

Question 13

Performance appraisals are a great opportunity to let employees know what they’re doing right and how they can do more of it. The process itself will let you communicate to employees what superior performance looks like, whether that’s short resolution times for customer service calls or thinking fast in a crisis.
Since most people want to be high performers — it usually leads to a raise and/or a promotion — giving your employees this information will leave them with something to aim for. They’ll also be looking for examples in their own work to point to once they know what “high performing” means in your organization.

Answer 13

Motivate high performing employees

Question 14

It’s not an ideal situation, but the performance appraisal process also gives you an opportunity to counsel employees who aren’t meeting company standards. Maybe an underperforming employee hasn’t set goals, or maybe they need to better learn their job or skills related to their job. If this is the case, you can help them come up with an action plan to improve their performance.

Answer 14

Counsel underperforming employees

Question 15

It is an objective, unbiased and scientific evaluation through similar measure and procedures for all employees in a formal manner.

Answer 15

Scientific evaluation

Question 16

Although informal appraisals tend to take place in an unscheduled manner (on continuous) basis with the enterprises a supervisors evaluate their subordinates work and as subordinates appraise each other rand supervisors on a daily basis, yet the systematic (i.e., formal) appraisal of an individual employee is likely to occur at certain intervals throughout that person ‘s history of employment (say quarterly, six monthly, annually, etc.)

Answer 16

periodic evaluation

Question 17

In addition to being periodic performance usually is an ongoing process. It means that appraisals are regularly scheduled and are not dumped on the employee on whimsical dates without relevance. The process has not been broken in person ‘s history of employment however, the periodicity of appraisal may be changed as per needs of the situation.

Answer 17

continuous process

Question 18

Performance appraisal system provides information to employees on how well they are doing their jobs, and this feedback is provided to them when it is relevant.

Answer 18

employee feedback

Question 19

Purpose of performance appraisal

Answer 19

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Question 20

PURPOSE OF PERFORMANCE APPRAISAL

It provides a common and unified measure of performance appraisal, so that all employee is evaluated in the same manner. It gives an in discriminatory rating of all the employees.

Answer 20

Appraisal Procedure

Question 21

PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal of the employees is extremely useful in the decision making process of the organization. In selection, training, promotion, pay increment and in transfer, performance appraisal is very useful tool.

Answer 21

decision making

Question 22

PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal gives us a complete information in the form of records regarding every employee. In the case of industrial disputes even arbitrator accepts these records in the course of grievance handling procedure.

Answer 22

work performance records

Question 23

PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal guides the employees in removing their defects and improving their working. The weaknesses of the employee recorded in the performance appraisal provide the basis for an individual development programme. If properly recorded and used, the performance appraisal gives the fair opportunities to employees to correct and rectify their mistakes.

Answer 23

Employees Development

Question 24

PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal enables supervisor to be more alert and competent and to improve the quality of supervision by giving him a complete record of employee’s performance. He can guide an employee, where he is prone to commit mistakes.

Answer 24

Enables Supervisors to be More Alert and Competent

Question 25

PURPOSE OF PERFORMANCE APPRAISAL

Merit rating is another name of performance appraisal; it gives supervisors a more effective tool for rating their personnel. It enables them to make more careful analysis of employee’s performance and make them more productive and useful. merit rating is defined as, “employee rating achieved through a periodic employee evaluation system, often used as the basis for pay increases and/or promotion”.

Answer 25

merit rating

Question 26

PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal is not only a useful guide for the supervisors and employees but it improves the employer-employee relations by creating a more conductive and amicable atmosphere in the organization. It also stimulates free exchange of thoughts and ideas between the supervisor and his men. In this way performance appraisal bridges the emotional gap between the employer and employee by bringing them more close and by reducing man-toman differences in the organization.

Answer 26

Improves Employer Employee Relations

Question 27

Uses of performance appraisal

Answer 27

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Question 28

USES OF PERFORMANCE APPRAISAL

It is in the best interest of the management to promote the employees to the positions where they can most effectively use their abilities. A well-organized, development and administered performance appraisal programme may help the management in determining whether an individual should be considered for promotion because the system not only appraises the worth of the employee on the present job but also evaluates his potentialities for higher job.

Answer 28

help in deciding promotion

Question 29

Personnel actions such as layoffs, demotions, transfers and discharges etc. may be justified only if they are based on performance appraisal. While in some cases, actions are taken because of unsatisfactory performance of the employee, in some other cases it may be called for due to some economic conditions beyond control such as changes in production process. In former case, the action can only be justified on the basis of the result of performance appraisal.

Answer 29

help in personnel actions

Question 30

The wage increase given to some employees on the basis of their performance may be justified by the performance appraisal results. In some cases, appraisal, i.e., merit and seniority are combined for higher salaries on better positions.

Answer 30

Help in Wage and Salary Administration

Question 31

An appropriate system of performance appraisal helps the management in devising training and development programmes and in identifying the areas of skill or knowledge in which several employees are not at par with the job requirements. Thus the appraisal system points out the general training deficiencies which may be corrected by additional training, interviews, discussions or counselling. It helps in spotting the potential to train and develop them to create an inventory of executives.

Answer 31

Help in Training and Development

Question 32

Performance appraisal helps in conducting research in the field of personnel management. Theories in personnel field are the outcome of efforts to find out the cause and effect relationship between personnel and their performance. By studying the various problems which are faced by the performance appraiser, new areas of research may be developed in personnel field.

Answer 32

aid to personal research

Question 33

Performance appraisal helps the employee in another way also. Every employee is anxious to know his performance on the job and his potentials for higher jobs so as to bring himself to the level of that position.

Answer 33

help in self evaluation

Question 34

Performance appraisal brings out the deficiencies and shortcomings of the employees. Discussions between rater and rates may be conducted in a spirit of co-operation and mutual understanding. This gives an opportunity to the employer to have an insight on their performance and to take corrective measures to improve upon their performance.

Answer 34

Help in Creating Healthy Competition

Question 35

Essentials of an Effective Performance Appraisal System:

Answer 35

10

Question 36

Essentials of an Effective Performance Appraisal System

The existence of an atmosphere of confidence and trust so that both supervisor and employee may discuss matters frankly and offer suggestions which may be beneficial for the organization and for an improvement of the employee. An atmosphere of mutual trust and confidence should be created in the organization before introducing the appraisal system. Such an atmosphere is necessary for frank discussion of appraisal. It also helps to obtain the faith of employees in the appraisal system.

Answer 36

Mutual Trust

Question 37

The objectives and uses of performance appraisal should be made clear and specific. The objectives should be relevant, timely and open. The supervisor must very thoroughly evaluate the employee ‘s performance so that he is capable of meeting challenges about his ratings of his subordinate.

Answer 37

clear objectives

Question 38

Well-defined performance factors and criteria should be developed. These factors as well as appraisal form, procedures and techniques should be standardized. It will help to ensure uniformity and comparison of ratings. The appraisal techniques should measure what they are supposed to measure. These should also be easy to administer and economical to use. The appraisal system should be performance based and uniform. Employees should be made fully aware of performance standards and should be involved in setting the standards.

Answer 38

standardization

Question 39

Evaluators should be given training in philosophy and techniques of appraisal. They should be provided with knowledge and skills in documenting appraisals, conducting post appraisal interviews, rating errors, etc.

Answer 39

training

Question 40

The evaluators should focus attention on job-related behavior and performance of employees. The results of performance rather than personality traits should be given due weight. Suggestions for improvement should be directed towards the objective facts of the job (such as work schedules, output, reports completed, sales made, losses incurred, profits earned, accomplishments, etc.). Joint plans for the future must be developed after consultation with subordinates. The individual as a person should never be criticized.

Answer 40

Job Relatedness

Question 41

The raters should be required to justify their ratings. The supervisor should try to analyses the strength and weaknesses of an employee and advise him on correcting die weakness.

Answer 41

Strength and Weaknesses

Question 42

Arrangements should be made to communicate the ratings to both the employees and the raters. The employees should actively participate in managing performance and in the ongoing process of evaluation. The superior should play the role of coach and counselor. The overall purpose of appraisals should be developmental rather than judgmental.

Answer 42

Feedback and Participation

Question 43

While designing the appraisal system, individual differences in organizations should be recognized. Organizations differ in terms of size, nature, needs and environment. Therefore, the appraisal system should be tailormade for the particular organization. The needs of rates in terms of feedback, mobility, confidence and openness should also be considered.

Answer 43

Individual Differences

Question 44

A post-appraisal interview should be arranged so that employees may be supplied with feedback and the organization may know the difficulties under which employees work, so that their training needs may be discovered.

Answer 44

Post Appraisal Interview

Question 45

A mechanism for review of ratings should be provided. Which particular technique is to be adopted for appraisal should be governed by such factors as the size, financial resources, philosophy ‘and objectives of an organization. The results of the appraisal, particularly when they are negative, should be immediately communicated to the employees, so that they may try to improve their performance.

Answer 45

Review and Appeal

Question 46

Steps in appraising performance

Answer 46

6

Question 47

Steps in Appraising Performance:

The process of evaluation begins with the establishment of Performance Standards. While designing a job and formulating a job description, performance standards are usually developed for the position. These standard should be very clear and not vague, and objective enough to be understood and measured. These standard should be 55 discussed with the supervisors to find out which different factors are to be incorporated. Weights and points to be given to each factor and these then should be indicated on the Appraisal Form, and later on used for appraising the performance of the employees.

Answer 47

Establishing Performance Standard

Question 48

The next important step is to communicate the aforesaid standards to the concerned employees. Their jobs and jobs-related behavior should be clearly explained to them. It should be noted that job related behaviors are those critical behavior that constitute job success. The employee should not be presumed to guess what is expected of him. It should be noted that here communication means that the standards have been transmitted to the employee and he has received and understood them a two-way communication, i.e., transference of information from the manager to the subordinate regarding expectations, and feedback from the subordinate to the manager that this information has been received and understood in same context and contents.

Answer 48

Communicating Performance Expectations to Employees

Question 49

The third step is the measurement of actual performance. To determine what actual performance is, it is necessary to acquire information about it we should be concerned with how we measure and what we measure. Four sources of information are frequently used to measure actual performance: personal observation, statistical reports, oral reports and written reports.

Answer 49

measuring actual performance

Question 50

The next step is comparison of actual performance with the standards. By doing so the potentiality for growth and advancement of an employee can be appraised and judged. Efforts are made to find out deviations between standard performance and actual performance.

Answer 50

Comparing Actual Performance with Standards

Question 51

fter comparing actual performance with standards, the next step is to discuss periodically the appraisal with the employee. Under this discussion good points, weak points, and difficulties are indicated and discussed so that performance is improved. The information that the subordinate receives about his performance assessment has a great impact of his self-esteem and on his subsequent performance. Conveying good news is considerably less difficult for both the manager and the subordinate than when performance has been below expectations.

Answer 51

Discussing the Appraisal with the Employee

Question 52

The final step is the initiation of corrective action whenever necessary. Immediate corrective action can be of two types. One is immediate and deals predominantly with symptoms. The other is basic and delves into causes. Immediate corrective action is often described as putting out fires whereas basic corrective action gets to the source of deviation and seeks to adjust the difference permanently. Coaching and counseling may be done or special assignments and projects may be set. Persons may be deputed for formal training courses, and decision making responsibilities and authority may be delegated to the subordinates. Attempts may also be made to recommend for salary increases or promotions, if these decisions become plausible in the light of appraisals. It should be noted that the above details may vary from organization to organization, but these steps usually form the principal steps/features of a sound evaluation programme.

Answer 52

Initiating Corrective Action

Question 53

Methods and techniques of performance appraisal

Answer 53

4

Question 54

METHODS OR TECHNIQUES OF PERFORMANCE APPRAISAL

Ranking method is the oldest and simplest method of rating. Here, each employee is compared with all others performing the same job and then he is given a particular rank i.e. First Rank, Second Rank etc. It states that A is superior to B. B is superior to C and so on

Answer 54

ranking method

Question 55

Under this method of performance appraisal, different grades are developed for evaluating the ability of different employees and then the employees are placed in these grades. These grades may be as follows:
(I) Excellent; (ii) very good; (iii) Good; (iv) Average; (v) Bad; (vi) Worst.

Answer 55

grading method

Question 56

This method was first used in USA army during the 1st World War. Under this method, few factors are selected for analysis purposes. These factors are: leadership, dependability and initiative. After that a scale is designed by the rate for each factor. A scale of person is also developed for each selected factor. Each person to be rated is compared with the person in the scale, and certain scores for each factor are awarded to him/her. In other words, instead of comparing a whole man to a whole man personnel are compared to the key man in respect of one factor at a time. We can use this method in job evaluation. This method is also known as the Factor Comparison Method. In performance appraisal, it is not of much use because the designing of scale is a very difficult task.

Answer 56

man-to-man comparison method

Question 57

This is the very popular, traditional method of performance appraisal. Under this method, scales are established for a number of fairly specific factors. A printed form is supplied to the rater. The form contains a number of factors to be rated. Employee characteristics and contributions include qualities like quality of work, dependability, creative ability and so on. These traits are then evaluated on a continuous scale, where the rater places a mark somewhere along the scale. The scores are tabulated and a comparison of scores among the different individuals is made. These scores indicate the work of every individual.

Answer 57

Graphic Rating Scale Method of Performance Appraisal