Unit 4

Employee Performance

Employee Performance: Performance Appraisal - Process, Methods, Ways

To Improve Performance, Potential Appraisal.
Morale-importance - Employee Attitudes, Employee Engagement, Their
Impact On Employee Productivity. - Empowerment –Process – Benefits
Performance Appraisal
 Performance Appraisal
 A performance appraisal is the periodic assessment of an employee’s job
performance as measured by the competency expectations set out by the
organization.
 Performance appraisal is generally done in systematic ways which are as
follows:
 The supervisors measure the pay of employees and compare it with targets
and plans.
 The supervisor analyses the factors behind work performances of
employees.
 The employers are in position to guide the employees for a better
performance.
Definitions Of Performance
Appraisal
 Gary Dessler, “Performance evaluation means
evaluating an employee’s current and/or past
performance relative to his performance standards.”

 Keith Davis, “Performance evaluation is the process

by which organizations evaluate individual job
performance.”
Objectives Of Performance Appraisal
 To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on
right job.
 To maintain and assess the potential present in a person for further growth and
development.
 To provide a feedback to employees regarding their performance and related
status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.
Process Of Performance Appraisal
Traditional methods of performance
appraisal
Traditional method of performance appraisal

Ranking Method

Paired Comparison

Grading Scale

Forced Distribution Method

Forced Choice Method

Checklist Method

Critical Incidents Method

Graphic Scale Method

Essay Evaluation Method

Field Review Method

Confidential Method
Modern methods of performance
appraisal
Modern methods of performance appraisal

Management By Objective (MBO)

360 Degree Feedback

Assessment Centre Method

Behaviorally Anchored Rating Scale (BARS)

Psychological Appraisals

Human-Resource (Cost) Accounting Method

Potential Appraisal
 Poten­tial refers to abilities of an employee which are currently not brought
to use by an organization.
 Potential means the talent capacity to under­take higher challenges on job in
future.
 Many organizations consider and use potential appraisal as a part of the
performance appraisal processes.
 The potential appraisal refers to the appraisal involving identification of
the hidden talents and skills of a person.
 Potential appraisal is a future-oriented appraisal whose main objective is to
identify and evaluate the potential of the employees to assume higher
positions and responsibilities in the organizational hierarchy.
 Objectives of Potential Appraisal
 Identify the abilities of an employee in order to evaluate whether that employee
is suitable for future assignments or otherwise, and
 Occupy higher positions in the organizational hierarchy and undertake higher
responsibilities because past performance may not be a good indicator for future
and higher role.
 Inform employees about their future roles.
 Make suitable corrections in training efforts from time to time.
 Inform employees about they must do something for their career prospects.
 Help organization for suitable succession plan;
 Improve quality and quantity of performance of an employee; and
 Give proper feedback to the employees for their potential.
Advantage of potential appraisal

 It encourages superior performance.

 It helps the management to decide if a salary raise is deserved by
an employee.
 It helps support manpower planning.
 It allows room for better communication and an enhanced
relationship with the management and the employee.
 It encourages accountability, as well as adds motivation and
satisfaction.
 It helps identify training and development needs.
 It helps monitor and enhances recruitment and induction practices.
Employee Morale
 Morale is generally referred to “willingness to work”.
 Morale is internal feeling and it is inspired by the environment. It depends
upon the relations between expectations and reality.
 Employee morale can be defined as the overall attitude, outlook and
satisfaction that people have in the workplace.
 When employee morale is high, productivity and performance increase.
 When it's low, people drag themselves into work and lack motivation, which
can lead to conflicts, poor performance and loss of revenue.
Definition of Employee Morale

 Mooney states, “Morale is the sum total of several psychic qualities which
include courage, fortitude, resolution and above all, confidence.”
 Davis states, “Organisational morale is basically a mental condition of
groups and individuals which determines their attitude.”
 Guion defines morale as “The extent to which an individual’s needs are
satisfied and the extent to which individual perceives that satisfaction as
stemming from his total job satisfaction.”
 Dr Leighton defined morale as “Capacity of a group of people to pull
together persistently and consistently in pursuit of a common purpose.”
Three approaches to the problem of
morale
 Classical Approach: the satisfaction of basic needs is the symbol of
morale. If the basic needs of the employees are satisfied, their morale will
be high.
 Psychological Approach: emphasizes not only the basic needs of the
people but psychological, needs also influence the morale of the people.
Psychological needs are the main motives of morale. According to this
view the attitudes and willingness to work is morale.
 Social Approach: For a social scientist, the morale is a social phenomenon
that pulls the men to live in society or groups in pursuit of a common goal.
Importance of Morale

 Production and productivity are directly affected by high morale.

 It promotes good feelings about the work policies, practices etc. morale
is very important factor in success or failure of an organization.
 Several labor problems are solved automatically by boosting up the
morale.
Benefits of Employee Morale

 Willing cooperation towards objectives of the organization.

 Loyalty to the organization and its leadership or management

 Good discipline—voluntary conformity to rules and regulations

 High degrees of employees’ interest in their jobs and organization

 Pride in the organization

 Reduction of rates of absenteeism and labour turnover

 Happy employees are productive employees

 Employee attitude
 Employee attitude definition basically includes characteristics such as
interest in the job, working without constant supervision, taking a positive
dimension of things, always ahead of the game and lastly, employee’s
willingness to contribute.
Four Simple Steps to Create Positive
Attitude
 Appreciation can help you to create a positive attitude.

 Try to focus on the solutions instead of problems.

 Try to understand the relationship between the employee and their

attitude towards the work.

 You can do some activities such as fun activities, organize events in the
workplace so that everyone can participate.
3 steps to handle negative attitude

 Finding out the employees with a negative attitude

 You can have a discussion with them about their attitude.

 You can help the employees to change their attitude.

Employee engagement
 Employee Engagement is a measureable degree of an employee's positive
or negative emotional attachment to their job, colleagues and organization
which profoundly influences their willingness to learn & perform at work.
 An "engaged employee" is one who is fully involved in, and enthusiastic
about, his or her work and thus will act in a way that furthers their
organization's interests
 Engagement is seen as a positive attitude to the job and it is distinguished
from both job satisfaction and commitment. It is more temporary and
volatile than commitment, which is a more stable perception.
 Employee Engagement is the means or strategy by which an organization
seeks to build a partnership between the organization and its employees,
such that:
 Employees fully understands and is committed to achieve the organization's
objectives, and
 The organization respects the personal aspirations and ambitions of its
employees.
 A definition of a fully engaged employee
 Is intellectually and emotionally bound with the organization
 Gives 100 percent
 Feels passionately about its goals and
 Is committed to live by its values.
 The employee goes beyond the basic job responsibility to delight the
customers and drive the business forward
The Impact Of Employee Engagement
On Productivity
 Satisfied And Happy Employees
 Improved Customer Experience
 Innovative Work-approach
 Better Employee Retention & Talent Acquisition
 Increased Employee Productivity
Benefits of Employee
Engagement
 Better performance
 Better communication
 Greater customer satisfaction
 Better team working
 Greater commitment
 Lower employee turnover and greater ability to recruit great
Employee Empowerment
 Empowerment is the process of giving employees in the organization the
power, authority, responsibility, resources, freedom to take decisions and solve
work related problems.
 In order to take such initiatives and decisions, they are given adequate
authority and resources.
 This allocation of authority is not based on the concept of “delegation” based
relationship.
 In empowerment it is a “trust based relationship”, which is established
between management and employees.
 It is a continuous process.
Process of Employee
Empowerment
Benefits of employee empowerment for
Organization

Increase
Fulfils organization productivity
vision
Enhance quality

Higher customer Reduce time and cost

satisfaction involved

Optimum
utilization of Benefits to Require less
human resource
Organization supervision
Benefits of employee empowerment
for employee