Performance Management &

Appraisal
PMS - Critical Business & People
Management Process -
Performance Appraisal
What comes to mind

Ratings, Targets, Incentives ????

What is performance ??
Why Appraise Performance
Helps in setting expectation or goals
Aligning with Company’s goals
Corrective actions
Developmental actions
Bonus/Rewards/Incentives
Career Plan
Opportunity to Communicate
 What is Performance

WHAT PEOPLE DO (THEIR WORK)

HOW THEY DO IT (THEIR BEHAVIOUR)

WHAT THEY ACHIEVE(RESULTS&REWARDS)

Performance
Performance - is essentially what an employee does or does not do . Employee
performance common to most jobs includes the following elements :

Quantity of output
Quality of output
Timeliness of output
Cost Efficiency
Team working

Job criteria - most imp element in a job , which identifies what an employee is
required to do , therefore the performance on job criteria is measured and
compared against standards and the result is communicated .
PMS Win/Win
The objectives of our performance management process include the following:

 Maximize the performance of all employees

 Initiate continual improvement of processes
 Set clear objectives and expectations
 Ensure on-going development of all employees
 Provide continuous feedback and coaching
 Recognize and reward results .
Linkage / Alignment
The Process
The Process ---
 Performance Planning - Goal Setting

On going Feedback & communication

Evaluation

Recognize & Rewards Results

Performance Improvement Plan

Uses of performance appraisal
Administrative & Developmental
 Performance Appraisal

• Identifying strengths
• Compensation • Identifying areas for
• Promotion growth
• Exit • Development
planning
Similarities & differences

Performance appraisal system

Performance management system

Who conducts Appraisal
Methodology
Graphic Rating scale method

Comparative method

Behavioral Rating

Management by objective ( MBO) methods

Narrative methods

Balance Score card

360 degree / 720 degree

Goal Setting ( vision –-- mission –goals--- objectives )
Alignment with Annual Biz Plan.

 Set Expectations

Define Targets

Goals are your Road map. Effective Goals are SMART

SMART - Specific, Measurable, Achievable, Relevant and

Time bound
Feedback & Communication
Mid term Review

Mid term changes

Ongoing process

Dos & Do nots

A group exercise --------

Multisource Rating
Evaluation
Target vs Achievement

Personal Effectiveness ( Competencies)

 Rating / Ranking
PMS G & O and R 1 sample data (1) - Shortcut.lnk

Normalization (Bell Curve)Normalization.pptx

Identification of Potential
Feedback & Communication
Mid term Review

Mid term changes

Ongoing process

Dos & Donots

A group exercise --------

Individual Development Plan
Identification of needs

Training plan

Job rotation

Cross functional training

Leadership / Managerial development

Recognition & Reward
Communication of the Results

Distribution of Rewards

promotions
Performance Improvement
Identification of Improvement areas

Improvement plans (PIP)

Possible Biases
Recency /primacy effect


Central tendency, leniency, strictness error



Rater Bias


Halo Effect


Contrast Error

Challenges :
The debate : Bell curve its effectiveness


THANK YOU