Appraising

Performance

Purpose of Performance
Appraisal
The main focus of performance appraisal is:
improving organisation performance by focusing
on individual effort and by developing them
The other purpose of a performance appraisal is:
to communicate to the employee how
management views his/her productivity, based on
job specifications.
to provide a forum for an exchange of information
and input between employer and employee.

Performance Appraisal

Purpose:

How:

Where:
When:

By Whom:

improve organisational
performance
regular discussions between
individual & manager
at the work place
continuous; often at half
yearly or yearly interval
employee's supervisor and
the employee

What is it for?
The underlying purpose of performance management is to improve
the utilisation of staff resources by:

assigning work more efficiently

improving job placement
validating selection procedures and evaluating training programs
recognizing potential for development to managerial positions
identifying training needs
fostering a better working relationship between subordinate and
supervisor
fostering a better working relationship between work units
assisting employees in setting career goals
fostering improvements in work performance
meeting employees' needs for growth
keeping employees advised of what is expected of them

It is also to provide a basis for

such personnel actions as:
Periodic appraisal
promotion based on merit
recognition and rewards for past
performance
review at completion of a probationary
period
warning about unacceptable performance

What does it need?

a precise summary of the individual's

agreed contribution to the organisation
performance for the year

knowledge of what the individual has

achieved in the past period

knowledge of the way the individual

performs his/her tasks/duties

Designing an effective
system of appraisal

The process of designing an appraisal system

should ideally involve incumbents, supervisor,
clients, peers, customers and HR professionals in
making decisions about each of the following
issues:
measurement content
measurement process
defining the rater (i.e. who should rate the
performance)
defining the ratee (i.e., the level of performance
to rate)
administrative characteristics.

The Appraisal Process

An appraisal involves:

Setting work standards

Assessing actual performance vs. these
standards
Providing feedback to the employee

Why Appraise Performance?

Appraisals provide information for
promotion and salary decisions
Provides opportunity to review an
employees work related behavior with
the goal of correcting deficiencies
Is part of the career-planning process
Appraisals help manage and improve
your firms performance

The Supervisors Role

Must be familiar with basic appraisal

techniques

Be candid but fair when delivering bad

news

HR will often outline guidelines but leave

implementation to supervisors

Steps in Appraising
Performance
Define the Job
Make sure all
agree on duties

Appraise
Performance
Compare
performance
to the standard

Provide
Feedback
Discuss
progress &
make plans

Manage Expectations

Job descriptions are usually written for a

group of jobs leaving many aspects of a
job without specific goals

Quantify expectations with explicit goals

for each expectation

Employee should know basis of appraisal

ahead of time

Appraisal Methods
Graphic rating scale:
a scale that lists a number of traits and a
range of performance for each. The
employee is then rated by identifying the
score that best describes the level of
performance for each trait.
Quality
- 1-5 OVGIU
Productivity - 1 - 5

Appraisal Methods
Alternation Ranking Method:
Ranking employees from best to worst on
a particular trait, choosing highest then
lowest till all are ranked.
A particular trait
Ranking

Appraisal Methods
Paired Comparison Method:
Ranking employees by making a chart of
all possible pairs of the employee for each
trait and indicating which is the better of
the employee.

Appraisal Methods
Forced Distribution Method:
Similar to grading on a curve;
predetermined percentages of ratees are
placed in various performance categories.

Appraisal Methods
Critical incident method
Keeping a record of uncommonly good or
undesirable examples of an employees
work related behaviour and reviewing it
with the employee at the predetermined
time.

Narrative Forms

Final appraisals are frequently in

a written narrative form
Supervisor rates employees:

Performance factor or skill

Give examples & an improvement
plan
Explains good & bad performance
areas

Behaviorally Anchored
Rating Scales
BARS combine best features of narrative,
critical incidents, and quantified scales in
five steps
Generate

critical incidents
Develop performance dimensions
Reallocate incidents
Scale the incidents
Develop a final instrument

BARS for Grocery Clerks

Researchers developed a BARS for grocery clerks

by collecting critical incidents in 8 areas (rating
scale given below):

Knowledge and judgment

Skill in bagging

Conscientiousness

Ability of checkout work

Skill in human relations

Skill in monetary transactions

Skill in operation of register

Observational ability

1 Extremely Poor

Poor Average Good Extremely Good

Advantages of BARS
A more accurate gauge of performance
Clearer standards critical incidents
along the scale make it clear
Feedback its easier to explain ratings
to appraises
Independent dimensions clustering
critical incidents make dimensions more
independent
Consistency different raters appraisals
of same individual are similar

Management by Objectives
MBO refers to a organizational 6 step goal
setting and appraisal program

Set the
organizations
goals

Set the
departmental
goals

Discuss
developmental
goals

Define
expected
results

Performance
reviews

Provide
feedback

Dealing With Rating

scale Appraisal Problems

Unclear standards use of words like good or

fair on appraisals

Halo effect one trait affects all ratings

Central tendency everyones in the

Leniency or strictness no middle

Bias characteristics affect rating

middle

Research Insight

One study showed appraisal reviewers rated the

same woman differently when only difference was
pregnancy

It demonstrates that outside biases can influence

ratings

Men and women raters act differently; many

things influence how a review is conducted

How to Avoid Appraisal

Problems

Learn and understand the problems

Use the right appraisal tool
Train supervisors
Reduce outside factors: time constraints,
union pressures & turnover
Keep a diary of critical incidents

Legal Issues in Appraisals

Inadequate appraisal systems often lie at the root

of discriminatory layoffs, promotions, discharges
or merit pays

They are arguable if appraisals are:

Based on subjective observations

Not administered and scored consistently
Based on evaluators who did not have daily contact

Who Does the Appraising?

Peers
Your Boss
Rating committee
Subordinates
You

360o Appraisals

360o assessments evolved from upward

feedback appraisals

One study: 29% use it with 11% planning

to add multi-source assessments

Great deal of paperwork

The Appraisal Interview

Appraisal interview - an interview in
which the supervisor and subordinate
review the appraisal and make plans to
remedy deficiencies and reinforce
strengths.
Adequate preparation and effective
implementation are therefore essential.

Three Appraisal
Types/Objectives
Appraisal Type

The Objective

Performance is satisfactory
Employee promotable

Make development
Plans

Satisfactory
Not promotable

Maintain
Performance

Unsatisfactory
Correctable

Take corrective
Action

Keep These in Mind When

Conducting the Interview

Be direct and specific - talk in terms of objective work

data

Dont get personal - Youre too slow in producing those

reports.

Encourage the person to talk - stop and listen to what the

person is saying

Dont tiptoe around - make sure the person leaves

knowing exactly what they are doing right and wrong

A Defensive Subordinate

Understanding and dealing with defensiveness is

an important appraisal skill
Defensive behavior is normal
Never attack a persons defenses
Sometimes it is best to do nothing at all

Recognize your own limitations dont expect

to be able to solve every problem that arises

Use Constructive Criticism

Provide examples

Avoid yearly critical broadsides by giving

frequent feedback

No real surprises at formal appraisal

Criticism should be objective

How to Insure Improved

Performance
Set improvement goals
Establish comfort
Allow employee influences
Provide constructive information

Most Commonly Used

Appraisal Methods

Society for Human Resource Management reports about

89% of surveyed managers use performance appraisal
for all their employees

Do Appraisals Really Help?

Traditional appraisals may be

counterproductive

One study showed 32% rated appraisals

ineffective; 4% rated them effective