Performance appraisal and competitive

advantage
• Improving performance: Employee behavior towards org goals
& meeting goals
• Making correct decisions: To reward, coach, promote or exit
sustained employee satisfaction and competitive strength
• Ensure legal compliance: Promotions should be based on
performance
• Minimising job dissatisfaction and turnover
• Consistency between org strategy and behaviour: Rating
based on single point productivity
• Organizational strategy and performance appraisal: Defender,
prospector, analyser
Appraisal Process
Objective of performance appraisal
• Regular discussion of deficiencies and results.
• Clarifying job responsibilities and expectations
• Developing capabilities through feedback
• Providing the basis for making HR decisions
• Improving employee manager communication
• Useful for employee’s career planning purpose
• Aligning performance with organization’s goals
• Identify training needs, promotion decisions
 Establish Job Expectations
• In this stage, the expectation is set for the
employees and the stake holder. A discussion
is held with his or her supervisor to access his
duties and responsibilities those were
mentioned in the job description.s
Design Appraisal Program
 Who are the raters?
• Immediate Supervisor
• Higher Management
• Self-Appraisals
• Peers (Co-Workers)
• Evaluation Teams
• Customers
• “360° Appraisals”
 Rater’s Errors
• Halo Effect
• Central tendency
• Leniency or strictness
• Primacy or Recency effects
• Rater effect
• Bias
• Perceptual set
• Spillover effect
• Others
 What should be Rated?
• Quality
• Quantity
Objective
• Timeliness
• Cost effectiveness
• Need for supervision
• Interpersonal impact Subjective
• Community service
 How to solve?
• Provide Training:
Appraisal Methods