Performance Appraisal

Prof. Promila Agarwal

 Appraisal Data Is Needed For...

 Assessment of current employee performance

 are performance standards being met?
 Training needs
 what does the employee need to learn in order to improve current work
performance?
 Career planning and development
 assessing an employee’s strengths and weaknesses to determine advancement
 Compensation programs
 provides a basis for rational decisions regarding pay adjustments (raises and
bonuses)
 Internal employee relations
 used for decisions in several areas of internal employee relations, including
promotion, demotion, termination, layoff, and transfer (transfers, layoffs,
terminations)
 Recruitment and selection
 generates data to validate selection criteria
 Human resource planning
 assessment data is helpful in building replacement or succession charts
 Promotion
Prepared by Prof. Promila Agarwal
 Characteristics of an ideal performance management system

 Strategically congruent
 Contextually congruent
 Practically feasible
 Meaningful
 Specific
 Identifies effective and ineffective performance
 Reliable
 Valid
 Acceptable and fair
 Inclusive
 Transparent
 Correctable
Prepared by Prof. Promila Agarwal
 Who Performs the Appraisal?

 Immediate Supervisor  Evaluation Teams

 Higher Management  Customers
 Self-Appraisals  “360° Appraisals”
 Peers (Co-Workers)

Prepared by Prof. Promila Agarwal

 Performance Appraisal Methods
Appraisal Methodologies

1 Graphic rating scale 6 Narrative forms

Behaviorally anchored rating scales

2 Alternation ranking 7
(BARS)

3 Paired comparison 8 Management by objectives (MBO)

Checklist-Line which best describe the

4 Forced distribution 9
person is marked

5 Critical incident 10 Merged methods

Prepared by Prof. Promila Agarwal

 Characteristics of PA
Who of appraisal

 Immediate supervisors
 Other supervisor
 Peers or colleagues
 Self
 Subordinates
 Personnel manager
 External consultant

Prepared by Prof. Promila Agarwal

 Characteristics of PA
What of appraisal

 Potential
 Personal traits
 Achieved results
 Process
 Current performance
 Output

Prepared by Prof. Promila Agarwal

 Characteristics of PA
Whom to appraise

 Individual
 Group
 Division

Prepared by Prof. Promila Agarwal

 Characteristics of PA
When of appraisal

 Formal
 Annually
 Semi annually
 Quarterly
 Weekly
 Daily
 Continuously

Prepared by Prof. Promila Agarwal

 Characteristics of PA
Miscellaneous

 Fine versus coarse

 Objective versus subjective
 Multi-criterion versus single summary statistics
 Multisource versus single source
 Relative versus absolute

Prepared by Prof. Promila Agarwal

 Appraisal Training Programs Needs

 Explain Objectives
 Review the Instrument
 Define the Performance Standards
 Understand Typical Subjective Errors
 Teach Interviewing Skills

Prepared by Prof. Promila Agarwal

 Things to Consider

 Training of Key People

 Resolving Issues
 Create an anonymous system
 Use it for developmental purpose

Prepared by Prof. Promila Agarwal

 Performance Management
1. Develop/Review
Position Description

9. Merit
Rewards 2. Establish Performance
Process Expectations

The
8. Discuss Possible
Professional Annual 3. Identify Tools and
Training Needed
Development Plan
Performance
Management
7. Formal Performance Process 4. Ongoing Feedback
and Communication
Evaluation (no surprises!)

6. Adjust Assignments 5. Handle Issues as

as Needed they Arise.
Prepared by Prof. Promila Agarwal
 Types of Rating Errors

 Leniency/Strictness Error
 Define Anchors (Dimensions)
 Force A Curve
 Central Tendency
 Reluctant to Give High/Low
 Explain Need for Variability
 Recency Error
 Last Action Halo
 Encourage Frequent Evaluation
 Similar to Me
 Personal Biases
 Dynamics Biases
Prepared by Prof. Promila Agarwal
 ATTRIBUTION

IS THE CAUSE OF BEHAVIOR SEEN AS INTERNAL (PERSONAL) OR EXTERNAL (SITUATIONAL)? WE

LOOK FOR THREE INDICATORS TO DECIDE.

DISTINCTIVE
IS THIS PERSON’S PERFORMANCE DIFFERENT ON OTHER TASKS AND IN OTHER
SITUATIONS? (YES = EXTERNAL, NO = INTERNAL)

CONSISTENT
OVER TIME, IS THERE A CHANGE IN BEHAVIOR OR RESULTS ON THIS TASK BY THIS
PERSON? (YES = EXTERNAL, NO = INTERNAL)

CONSENSUS
DO OTHERS PERFORM OR BEHAVE SIMILARLY WHEN ASSIGNED A SIMILAR
POSITION OR TASK? (YES = EXTERNAL, NO = INTERNAL)

Consistent “Yes” answers lead us to external attributions – Environmentally caused

“No” answers lead us to internal attributions -- The person is responsible
Prepared by Prof. Promila Agarwal
 ATTRIBUTIONAL MODEL OF FAILURE

INTERNAL ATTRIBUTION – Person Responsible?

LACK OF ABILITY
LACK OF EFFORT

EXTERNAL ATTRIBUTION – Situation Responsible?

DIFFICULT TASK
BAD LUCK

ENLIGHTENED SUPERVISOR RESPONSE

LACKS ABILITY -- Training or Transfer
LACKS EFFORT -- Reprimand or Motivational Strategy
DIFFICULT TASK -- Job Redesign
BAD LUCK -- Sympathy and Support

Prepared by Prof. Promila Agarwal

 The Process of Conducting a
Performance Appraisal Interview

Prepared by Prof. Promila Agarwal

 The Performance
Appraisal Interview

 Purpose of the interview

 communicate information about an employee’s
performance.
 Preparing for the interview
 allow plenty of time for completing the appraisal form
 notify the employee about the appraisal interview
ahead of time
 prepare an appropriate meeting place

17-18
 The Performance
Appraisal Interview

 Conducting the interview

 Problem solving and coaching
 Signatures
 Follow-up

17-19
 Thank You

References could be provided on request