4. OVERVIEW
OVERVIEW
INTRODUCTION
MEANING, NEED, PURPOSE, OBJECTIVES
CONTENTS OF PAS, APPRAISERS
DIFFERENT METHODS OF APPRAISALS
USES OF PERFORMANCE APPRAISAL
LIMITATIONS & PROBLEMS OF pa
360 DEGREE APPRAISAL
POST APPRAISAL FEEDBACK
11–4
5. Performance Appraisal
Performance Appraisal
Performance Appraisal (PA)
– The process of evaluating how well employees perform
their jobs when compared to a set of standards, and
then communicating the information to employees.
– Performance Appraisal is essential to understand &
improve the employee’s performance through HRD.
– Performance appraisal indicates the level of desired
performance level, level of actual performance & the
gap b/w the two
11–5
6. Performance appraisal may be understood as
the assessment of an individual’s performance
in a systematic way.
The performance being measured against
such factors as job knowledge, quality and
quantity of output, initiative, leadership
abilities, supervision, dependability,
cooperation, Judgment, versatility, health etc..
11–6
7. It is the systematic evaluation of the individual
with respect to his/her performance on the job
and his/her potential for development”
Assessment is generally not confined to past
performance alone .
Potentials of the employee for future performance
must also be assessed.
11–7
8. Meaning Of Performance appraisal
Meaning Of Performance appraisal
Performance appraisal is method of evaluating
the behaviors of employees in the workplace.
It includes both qualitative & quantitative
techniques or aspects of job performance.
Performance refers to the degree of
accomplishment of the tasks that make up an
individual’s job.
It indicates how well an individual is fulfilling the
job demands.
Performance is always measured in terms of
results & not efforts.
11–8
9. Definition
Definition
Performance appraisal is
the systematic, periodic &
an impartial rating of an
employee’s excellence in
matters pertaining to his
present job and his
potential for a better job
- Edwin Flippo
11–9
10. Definition
Definition
“Performance Appraisal is a formal, structured
system of measuring and evaluating job
related behaviour and outcomes to discover
how and why the employee is presently
performing on the job and how the employee
can perform more affectively in the future so
that the employee, organization and society all
benefits”
-Randall S
Schuller
11–10
11. This definition states behaviour is also a part of
the assessment .Behaviour can be active or
passive – do something or do nothing.
Either way behaviour affects job results,
employee assessment is as old as the concept of
management.
Performance appraisal is linked to job analysis as
shown in the fig below.
11–11
12. NEED FOR PA
NEED FOR PA
Provide information about performance ranks.
Provide feedback information about the level of
achievement & behaviour of the subordinate,
Provide information which helps to counsel the
subordinate.
Provide information to diagnose deficiency in the
employee regarding skill, knowledge & needs.
To prevent grievances & in disciplinary activities.
11–12
13. Features
Features
PA is a systematic process consisting of a
number of steps to be followed for evaluating and
employees strengths and weaknesses
It is a systematic & objective description of an
employee’s strengths & weaknesses in terms of
the job.
PA seeks to secure information necessary for
making objective & correct decisions on
employees
11–13
14. PA is ongoing & continuous process where the
evaluations are arranged periodically according
to a definite plan.
PA is not job evaluation.
It refers to how well an employee is doing the
assigned job.
Job evaluation determines how much a job is
worth to the organization & what is the range of
pay should be assigned to the job.
Establish plan of improvement.
Appraisals are arranged periodically according to
the definite plan.
11–14
15. PURPOSES OF PA
PURPOSES OF PA
To create & maintain satisfactory level of
performance.
To contribute to employee growth & development.
To help the superiors to have a proper understanding
about the subordinates.
To guide the job changes with a help to continuous
ranking.
To facilitate fair & equitable compensation based on
performance.
To provide information for making decisions
regarding layoff retrenchment etc .
11–15
16. Objectives of performance
Objectives of performance
appraisal
appraisal
Data relating to performance assessment of
employees are recorded, stored and used for several
purposes.
They are listed below:
To effect promotions based on competence &
performance
To confirm the services of probationary employees
after the completion of probationary period.
To assess the training & development needs of
employees
11–16
17. To decide on pay rise unorganized sector)
To let the employees know where they stand & to
guide them for their development.
To improve communication between a superior &
subordinate & to set goals.
To ask HR programmes such as selection
training & transfer are effective or not
11–17
18. OBJECTIVES
OBJECTIVES
Work-Related Objectives
Career Development Objectives
Communications
Organizational Objectives
11–18
19. Work-Related Objectives:
Work-Related Objectives:
To assess the work of employees in relation to
job requirements
To improve the efficiency
To help management in fixing employees
according to their capacity, interest, aptitude
and qualifications
To carry out job evaluation
11–19
20. Career Development Objectives
Career Development Objectives
To assess the strong & weak points in the
working of the employees and finding
remedies for weak points through training
To determine career potential
To plan promotions, transfers, lay offs etc. of
the employees
To plan career goals
11–20
21. Communication
Communication
To provide feedback to employees so that
they come to know where they stand ad can
improve their job performance
To clearly establish goals
To provide coaching, counseling, career
planning & motivation to employees
To develop positive superior-subordinates
relations & thereby reduce grievances
11–21
22. Organizational Objectives
Organizational Objectives
To serve as a basis for promotion or demotion
To serve as a basis for wage & salary
administration & considering pay increases &
increments
To serve as a basis for planning suitable training
& development programmes
To serve as a basis for transfer or termination in
case of reduction in staff strength.
11–22
23. Identifying and Measuring
Identifying and Measuring
Employee Performance
Employee Performance
Performance Management System
– Processes used to identify, encourage, measure,
evaluate, improve, and reward employee
performance.
Performance
– What an employee does and does not do.
• Quantity of output • Quality of output
• Timeliness of output • Presence at work
• Cooperativeness
Job Criteria
– Important elements in a given job
11–23
24. Types of Performance Information
Types of Performance Information
Trait-based
Trait-based
Information
Information
Job
Job Behavior-based
Behavior-based
Performance?
Performance? Information
Information
Results-based
Results-based
Information
Information
11–24
27. STRATEGIC MANAGEMENT &
STRATEGIC MANAGEMENT &
PERFORMANCE APPRAISEL
PERFORMANCE APPRAISEL
STRATEGIES PA APPRAISER
TECHNIQUES
Stability& sustainable Traditional Superior
growth
Expansion,diversificati Modern 360
on,M & A Appraisal
Retrenchment Traditional Superior
Low cost leadership, Modern 360
New Product, Appraisel
Differentiation.
08/23/12
27
28. CONTENT OF PA
CONTENT OF PA
Content to be appraised is determined on the
basis of job analysis.
Content to be appraised vary with the purpose of
appraisal & type & level of employees.
11–28
29. CONTENTS TO BE APPRAISED
CONTENTS TO BE APPRAISED
FOR AN OFFICERS JOB
FOR AN OFFICERS JOB
Regularity of attendance.
Self Expression.
Ability to work with others.
Leadership styles & abilities.
Initiative.
Technical skill.
Technical ability.
Ability to grasp new things.
11–29
30. Ability to reason.
Originality & Resourcefulness.
Creative skills.
Area of interest.
Are of suitability.
Judgment skills.
Integrity.
Honesty .
Sincerity.
Knowledge of systems & Procedures.
11–30
31. Who Conducts Appraisals
Who Conducts Appraisals
Supervisors who rate their subordinates
Employees who rate their supervisors
Team members who rate each other
Outside sources
Employees’ self-appraisal
Multisource (360° feedback) appraisal
11–31
33. APPRAISERS
APPRAISERS
Who is an Appraiser?
An appraiser may be any person who has
thorough
knowledge about the job content
Contents to be appraised.
Standards of contents.
Who observes the employee while performing the
job.
11–33
34. Qualities of an appraiser.
Should be capable of determining what is more
important & what is less important.
Should prepare reports.
Make judgments without any bias.
11–34
36. Typical appraisers
Typical appraisers
Supervisors.
Peers.
Subordinates.
Employees Themselves.
Users of service
Consultants.
Performance by all these parties is called 360
performance appraisal.
11–36
37. Appraisers
Appraisers
The appraiser may be any person who has
thorough knowledge about
the job content
Contents to be appraised
Standards of contents
Who observes the employee while performing
a job.
He should prepare reports and make judgment
without bias.
11–37
38. Self-Appraiser
Self-Appraiser
Itis a common practice today , with the
employees being given a role in
evaluating their own performance.
The employee is best equipped to
evaluate his performance because he
understands his strengths and
weaknesses the best.
11–38
39. Superiors
Superiors
It is the responsibility to ensure that his
subordinates perform their jobs well
Hence, the authority to evaluate the employee
performance has traditionally with the
supervisor.
Even today, the supervisor has a very
important role to play in the appraisal of his
subordinates.
11–39
40. Peers
Peers
Peer evaluation is a very sensitive area
as it may lead to false and unhealthy
appraisals, because of the competition
among peers.
Peer appraisal has to be used to assess
the communication & interpersonal skills
of the employee, which can affect the
team performance.
11–40
41. Customers/ Clients
Customers/ Clients
The performance of an employee has a
direct & immediate impact on his
customers either internal or external.
11–41
42. Basic Performance Appraisal Process
Basic Performance Appraisal Process
Establishing Standards
Communicating Standards to Employees
Measuring Actual Performance
Comparing Actual with Standards
Discussing Reports with Employees
Taking Corrective Action
11–42
45. Methods of performance appraisal
Methods of performance appraisal
Traditional Methods
Modern Methods
Confidential Report
Graphic Scales
Straight Ranking
Assessment Centre
Paired Comparisons Human Resource
Grading System Accounting
Forced Distribution Management by
Check List Method Objectives
Critical Incident Method 360 Degree PA
Free Essay Method
Group Appraisal
Field Review
Nominations
Work Sample Tests
11–45
46. Confidential Report
Confidential Report
This method is used in government
departments and public enterprises.
These reports differ from dept to dept & from
level to level
CR is written for a unit of one year and relates
to the performance, ability & character of the
employee during that year.
CR is not data based but subjective
11–46
47. No feedback is provided to the employee bring
appraises and therefore its credibility is very low
This method focuses on evaluating rather than
developing the employee.
The employee who is appraised never knows his
weakness and the opportunities available for
overcoming them.
In recent years, due to pressure from courts &
trade unions, details of a negative confidential
report are given to the appraiser.
11–47
48. Graphic Rating scales Method
Graphic Rating scales Method
Comparing individual performance to an absolute
standard. Judgments about performance are recorded
on a scale.
Oldest & widely used.
Also known as linear rating scale or simple rating
scale.
Appraisers given printed forms which contain the
various objectives, the qualities to be rated like
analytical ability, creative ability, initiative, leadership
qualities, emotional stability etc in case of managerial
personnel.
11–48
49. Graphic Rating scales Method
Graphic Rating scales Method
The qualities in respect of workmen could
be quantity and quality of work, job
knowledge, attitude, dependability, initiative
etc.
The rating scale used could be continuous
rating scale or discontinuous rating scale.
In continuous scale, the points are in a
particular order. For e.g 0 to 5 i.e.
0,1,2,3,4,5 where 5 is the highest.
11–49
51. Graphic rating scales Method
Graphic rating scales Method
In discontinuous scale , the appraiser
assigns the points against each quality or
character.
The points given by the rater to each
character are added up to find out the
overall performance.
The employees are then ranked on the
basis of the total points assigned to them.
11–51
52. ATTITUDE
INTRESTED ENTHUSIASTIC VERY
NO INDIFFERENT ENTHUSIASTIC
INTREST
DISCONTINUOUS RATING SCALE
11–52
53. Straight Ranking Method
Straight Ranking Method
The employees are ranked from best to worst
on some characteristics.
The rater first finds the employee with the
highest performance & employees with the
lowest performance.
The rater then selects the next highest and
next lowest and so on until all the employees
in that group are rated.
Relatively easy and inexpensive but reliability
and validity open to doubt.
Another limitation is the size of the difference
between the various ranks is not well defined.
11–53
54. Paired Comparison Method
Paired Comparison Method
The appraiser ranks the employees by
comparing one employee with all other
employee in the group, one at a time.
Each employee is assigned a capital letter
like A,B,C,etc & one separate sheet used for
each employee.
For each plotted pair, write the letter of the
employee who has done a superior overall
job and assign a certain percentage of the
total positive evaluation.
11–54
55. If a department has two outstanding
employees and six average
employees and if this method is
correctly used, the two employees will
get a much higher percentage of
positive comparison than the other six.
Number of comparisons = N (N-1) / 2.
For large number of employees, it is
time consuming.
11–55
56. Grading System
Grading System
Certain features like analytical ability, co-
operativeness, dependability, job-knowledge, etc
are selected for evaluation.
The employees are given grades according to the
judgment of the rater.
The grades may be such as:
A-outstanding; B-very good; C-satisfaction
D-average; E-below average
The actual performance of every employee is rated
with various grades in mind
11–56
57. Forced Distribution Method
Forced Distribution Method
Is developed to prevent the raters from rating
too high or too low.
Under this method, the rater after assigning
the points to the performance of each
employee has to distribute his ratings in a
pattern to conform to normal frequency
distribution.
Requires the raters to spread their employee
evaluations in a prescribed distributions
11–57
58. Forced Distribution on a Bell-Shaped Curve
Forced Distribution on a Bell-Shaped Curve
11–58
59. Forced Distribution
Forced Distribution
– Performance appraisal method in which ratings of
employees are distributed along a bell-shaped
curve.
– Drawbacks
• Assumes a normal distribution of performance.
• Resistance by managers to placing individuals in the
lowest or highest groups.
• Providing explanation for placement in a higher or
lower grouping can be difficult.
• Is not readily applicable to small groups of employees.
11–59
60. Check List Method
Check List Method
A check list is a list of statements that
describes the characteristics and performance
of employees on the job.
Three types:
Simple Check List
Weighted Check List
Forced Choice Checklist
11–60
61. Simple Check List
Simple Check List
Under this method the supervisor are provided
with printed forms containing descriptive
questions about the performance of
employees
The supervisor has the answer in yes or no.
After ticking these questions the forms are
sent to Personnel Dept where final rating is
done
11–61
62. Check list for operators..
Check list for operators
Is the employee hard working? Yes/No
Does he/she possess adequate knowledge about the job? Yes/No
Is his/her attendance satisfactory? Yes/No
Does he/she maintain his/her equipment in good Condition? Yes/No
Does she/he cooperate with coworkers? Yes/No
Does he/she keep his/her temper? Yes/No
Does he/she obey orders? Yes/No
Does he/she observe safety preparations? Yes/No
Does he/she complete the work? Yes/No
Does he/she evade responsibility? Yes/No
11–62
63. Weighted Check List
Weighted Check List
It is used particularly with the objective of
avoiding scope for personal prejudices.
In this method, weights are assigned to
different statements to indicate statements to
indicate their relative importance.
It involves a very lengthy & time consuming
procedure.
11–63
65. Forced Choice Checklist
Forced Choice Checklist
In this checklist, 5 statements are given for
each trait, two most descriptive statements,
two least descriptive statements & one neutral
statement.
The rater is required to tick one statement
each from the most descriptive and least
descriptive ones.
Aim- to minimize the rater’s personal bias.
This approach is known as the forced choice
method because the rater is forced to select
statements which are ready made
11–65
66. Forced Choice Check List- Sample
Forced Choice Check List- Sample
1. Regularity Most Least
a. Always regular
b. Informs in advance for absence or delay
c. Never regular
d. Remains absent without prior notice
e. Neither regular nor irregular
11–66
67. Critical incident method:
Critical incident method:
In this method, the performance is rated the basis of
certain events or incidents which may have really
happened recording these incidents avoids biases
and Judgment is easy.
e.g.
refused to cooperate with co workers
refused to undergo future training
refused to obey orders
Showed presence of mind in saving a worker when
there was accidental fire
He helped fellow employees in solving their
problems
11–67
68. Free Essay Method
Free Essay Method
This method requires the manager to write a
short essay describing each employees
performance during rating period.
This format emphasizes evaluation of overall
performance, based on strengths/
weaknesses of employee performance rather
than specific job dimensions.
By asking supervisors to enumerate specific
examples of employee behavior, the essay
technique minimizes supervisory bias & the
halo effect
BPL, Birla 3M, Bata- follow this method
11–68
69. Group Appraisal
Group Appraisal
Employees are rated by an appraisal group,
consisting of their supervisor, 3 or 4 other
persons who have some knowledge of their
performance.
Supervisor- explains to the group the nature of
his subordinates duties.
Group then discusses the stds of performance
for that job, and actual performance of the
employee and the causes of their particular
level of performance
Offers suggestions for future improvements
11–69
70. Field Review Method
Field Review Method
An expert from the personnel dept interviews
line supervisors to evaluate their respective
subordinates.
The expert questions the supervisor & obtains
all the important information on each
employee and takes notes in his note book.
There is no rating form with factors or
degrees, but overall ratings are obtained.
Employees classified into 3 categories
Outstanding; satisfactory; unsatisfactory
11–70
71. Nominations
Nominations
Appraisers are asked to identify the
exceptionally good and exceptionally poor
performers, who are then singled out for
special treatment
11–71
72. Work Sample Tests
Work Sample Tests
Employees are given, from time to time, work
related tests which are then evaluated.
11–72
73. MODERN METHODS
MODERN METHODS
BARS
Assessment Centre
Human Resource Accounting
Management by Objectives
360 Degree PA
11–73
74. Behaviorally Anchored Rating Scales {BARS}
Behaviorally Anchored Rating Scales {BARS}
It combines the benefits of critical incidents &
graphic rating scales by anchoring a scale
with specific behavioral examples of good or
poor performance.
11–74
75. 3 steps in implementing a BARS System.
Determination of relevant job dimensions by the
Determination of relevant job dimensions by the
manager & the employee
manager & the employee
Identification of behavioral anchors by manager
Identification of behavioral anchors by manager
and employee for each job dimensions
and employee for each job dimensions
Determination of the scale values to be used & grouping
Determination of the scale values to be used & grouping
Of anchors for each scale value, based on consensus
Of anchors for each scale value, based on consensus
11–75
76. How to construct BARS
How to construct BARS
Step 1: Collect Critical Incidents
Step 1: Collect Critical Incidents
Step 2: Identify Performance Dimensions
Step 2: Identify Performance Dimensions
Step 3: Reclassification of Incidents
Step 3: Reclassification of Incidents
Step 4: Assigning Scale Values to the Incidents
Step 4: Assigning Scale Values to the Incidents
Step 5: Producing the Final Instrument
Step 5: Producing the Final Instrument
11–76
77. Sample of BARS system
Sample of BARS system
Dimension: Planning & Organizing
Scale Value Anchor
5 [ ] Excellent Develops a comprehensive plan, documents well,
obtains approval & distributes to all concerned
4 [ ] Good Lays out all plans and allows for slack. Satisfies
customer time constraints and overruns are
infrequent
3 [ ] Average Revises due dates as project progresses &
investigates customer complaints. Does not report
slippages in plan
2 [ ] Below Average Poor plans & unrealistic time schedules are
common. Cannot plan for more a day or two ahead
1 [ ] Unacceptable Seldom completes a project and does not bother.
Fails due to lack of planning and is not interested in
improving
11–77
78. Assessment Centre
Assessment Centre
This method of appraising was first applied in the
German Army in 1930.
It is a system, where assessment of several individuals
is done by various experts by using various techniques.
Techniques- in basket, role playing, case studies,
stimulation exercises, transactional analysis etc
Idea- to evaluate managers over a period of time, by
observing & later evaluating their behavior across a
series of select exercises.
An assessment centre generally measures interpersonal
skills, communication skills, ability to plan & organize,
self confidence, resistance to stress, mental alertness
etc
11–78
79. Human Resources Accounting
Human Resources Accounting
It deals with cost of and contribution of human
resources to the organization.
Cost of the employee includes cost of man
power planning, recruitment, selection,
induction, placement, training, development,
wages & benefits etc.
Employee contribution is the money value of
employee service which can be measured by
labour productivity or value added by human
resources.
11–79
80. Employee performance can be taken as
positive when contribution is more than the
cost
Performance can be viewed as negative if cost
is more than contribution.
+ Performance- measured in terms of
percentage of excess of employee
contribution over the cost of employee
- Performance calculated in terms of
percentage of deficit in employee contribution
compared to cost to the employee
11–80
81. Management By Objectives
Management By Objectives
Also called as Goal Setting Approach
Requires the managers to set a specific
measurable goals with each employee and
then periodically discuss his progress to wards
these goals
Always refers to a comprehensive,
organization wise goal setting and appraisal
programme that consists of the following
steps:
11–81
82. STEPS
STEPS
i. Set the Organization’s Goals
ii. Set departmental Goals
iii. Discuss Departmental Goals
iv. Define Expected Results {Set Individual
Goals}
v. Performance Review
vi. Provide Feed Back
11–82
83. 360 Degree Performance Appraisal
360 Degree Performance Appraisal
A 360 degree appraisal system aims at a
comprehensive & objective appraisal of
employee performance
In a 360 degree appraisal system, the
employee’s performance is evaluated by his
supervisor, his peers, his internal/external
customers, his internal/external suppliers and
his subordinates.
This system reduces the subjectivity of a
traditional supervisor appraisal
11–83
84. 360 Degree Performance Appraisal
360 Degree Performance Appraisal
It is also comprehensive because the
feedback is given by the peers, customers,
suppliers & subordinates of the employee,
who are more directly affected by his behavior
and performance, apart from the boss.
11–84
85. Supervisors
Supervisors
Supervisors include superiors of the
employee, other superiors having knowledge
about the work of the employee & department
head or manager.
Immediate superiors appraise then
performance which in turn is reviewed by the
departmental head/,manager.
11–85
86. Peers
Peers
Peer appraisal may be reliable if the work
group is stable over a reasonably long period
of time and performs tasks that require
interaction.
Little research has been conducted to
determine how peers establish standards for
evaluating others or the overall affect of peer
appraisal on the group’s attitude.
11–86
87. Subordinates
Subordinates
The concept of having superiors rated by
subordinates is being used in most
organizations today.
11–87
88. Self-Appraisal
Self-Appraisal
If individuals understand the objectives they
are expected to achieve and the standards by
which they are to be evaluated,
they are to a great extent in the best position
to appraise their own performance.
Employee development means self
development, employee who appraise their
own performance may become highly
motivated
11–88
89. Users of Services // Customers
Users of Services Customers
Employee performance in service org relating
to behaviors, promptness , speed in doing the
job and accuracy can be better judged by the
customers or users of services.
11–89
90. Limitations of performance
Limitations of performance
appraisal
appraisal
Leniency or severity : A manager may be too lenient
towards an employee rating or too severe (strict).
Central tendency : Average/middle range of rating
may be employed for all employees
Halo error: One aspect of the individual influences the
performance rating. E.g. an employee going very late &
works even after working hours may be favored &
promoted
Rater effect: Favoritism, stereotyping, biases, sex,
age, race and friendship are the reasons.
11–90
91. Primacy & recency effects : early stages of
career performance or recent performance are
count.
Spill over effect : past performance rating
influences current performance rating.
Status effect: depending on the hierarchy or
the job title, performance is rated.
Perception effect: strong beliefs / prejudice
e.g. regional favoritism.
Performance dimension effect : error in the
measurement of performance.
11–91
92. Uses of Performance Appraisal
Uses of Performance Appraisal
Performance Appraisal (PA)
– The process of evaluating how well employees
perform their jobs when compared to a set of
standards, and then communicating the information
to employees.
– Informal Appraisal
• Day-to-day contacts, largely undocumented
– Systematic Appraisal
• Formal contact at regular time intervals, usually
documented
11–92
93. Uses of Performance Appraisal
Uses of Performance Appraisal
T & D needs of the employees can be
determined
Org effectiveness can be improved by
improving the individual performances of the
employees
PAS forms the basis for compensation
management in org
Can be used for transfers, promotions and
other career planning activities of individual
employees
11–93
94. Uses of Performance Appraisal
Uses of Performance Appraisal
An effective PAS also helps in succession
planning in the org
An assessment of the value of the human
resources helps in org planning.
Helps in evaluating and auditing the existing
plans, processes and systems in the org.
11–94
95. Uses of Performance Appraisal (cont’d)
Uses of Performance Appraisal (cont’d)
Performance
Performance
Appraisal
Appraisal
Administering Wages
Administering Wages Giving Performance
Giving Performance Identifying Strengths
Identifying Strengths
and Salaries
and Salaries Feedback
Feedback and Weaknesses
and Weaknesses
11–95
96. Feedback as a System
Feedback as a System
Evaluation
Evaluation
Data
Data of Data
of Data
Feedback
Feedback
System
System
Action Based on
Action Based on
Evaluation
Evaluation
11–96
98. Essentials of an Effective Appraisal System
Essentials of an Effective Appraisal System
Mutual Trust & Job relatedness
confidence Feed back
Reliability Individual differences
Validity Post Appraisal
Specific Objectives Interview
Standardization Review & Appeal
Training to
Appraisers
11–98
99. Performance Management System
Performance Management System
Effective PMS systems are:
– Consistent with the strategic mission of the
organization
– Beneficial as development tool
– Useful as an administrative tool
– Legal and job-related
– Viewed as generally fair by employees
– Effective in documenting employee performance
11–99
100. Performance Appraisals and the Law
Performance Appraisals and the Law
PA is used as basis of so many HR Decisions
like promotions, dismissals, transfers etc
Appraisal system is a common target of legal
disputes by employees, involving charges of
unfairness and personal biases
Recommendations have been made to assist
the employers in conducting PA and to avoid
legal suits.
Recommendations are based on the court
judgment.
11–100
101. Performance Appraisals and the Law
Performance Appraisals and the Law
Legally Defensible Appraisal Procedures
– Every org should have a formal standardized
performance appraisal system. All the HR decisions
should be based on this system.
– Employees should be aware and knowledgeable
about all specific performance stds.
– All the employees should be given opportunity to
review their appraisal results.
– Supervisor should be trained to use the appraisal
instruments properly
11–101
102. Performance Appraisals and the Law
Performance Appraisals and the Law
Legally Defensible Appraisal Procedures
– Appraisal criteria based on job analysis
– Absence of disparate impact and evidence of validity
– Formal evaluation criterion that limit managerial
discretion
– Formal rating instrument linked to job duties and
responsibilities
– Personal knowledge of and contact with ratee
– Training of supervisors in conducting appraisals
– Review process to prevent undue control of careers
– Counseling to help poor performers improve
11–102
103. Performance Appraisals and the Law
Performance Appraisals and the Law
Legally Defensible Appraisal Content
– Job analysis should be conducted to establish the
performance appraisal contents.
– Appraisals based on traits should be avoided unless
these can be defined in terms of observable behavior.
– Specific job related performance dimensions should be
used rather than global measures.
– Subjective ratings should be used only as one
component of the overall appraisal process
– Performance dimension should be assigned weights to
reflect their relative importance in calculating the
composite performance score.
11–103
104. Performance Appraisals and the Law
Performance Appraisals and the Law
Legally Defensible documentation of appraisal
results
– Written documentation for extreme ratings should
be maintained and it must be consistent with
numerical ratings
– All the raters should follow consistent
documentation requirements
– A written documented record of all information and
reasons bearing on any HR decisions should be
properly maintained.
11–104
105. Performance Appraisals and the Law
Performance Appraisals and the Law
Legally Defensible appraisers
– The raters should be trained in or thoroughly
instructed in how to use an appraisal system
– The raters should have substantial daily contact
with employees they are rating.
– Whenever possible, have more than one rater
conduct the appraisal and conduct all such
appraisal & conduct all such appraisals
independently.
11–105
