2. Performance management is an
ongoing, continuous process of
communicating and clarifying job
responsibilities, priorities and
performance expectations in order to
ensure mutual understanding between
supervisor and employee .
It is a philosophy which values and
encourages employee development
through a style of management which
provides frequent feedback and
fosters teamwork.
3. It focuses on adding value to the
organization by promoting improved
job performance and encouraging
skill development.
Performance Management involves
clarifying the job duties, defining
performance standards, and
documenting, evaluating and
discussing performance with each
employee.
4.
5. Performance management is considered a
process, not an event.
It follows good management practice in which
continual coaching, feedback and
communication are integral to success.
The Performance Management Plan is
primarily a communication tool to ensure
mutual understanding of work
responsibilities, priorities and performance
expectations.
6. Elements for discussion and evaluation
should be job specific
The major duties and responsibilities
of the specific job should be defined and
communicated as the first step in the
process.
Performance standards for each major
duty/ responsibility should be defined and
communicated.
Employee involvement is encouraged in
identifying major duties and defining
performance standards.
7. Evaluating
an employees current & past
performance relative to his performance
standard.
According to Flippo- “performance appraisal is
the systematic, periodic and an impartial rating
of an employee’s excellence in the matters
pertaining to his present job and his potential
for a better job”
It is a powerful tool to reward the performance
of the employee.
L&T was the first company in India to use a
systematic performance appraisal system in
India.
8. Performance Appraisal
The process by which an employee’s
contribution to the organization during
a specified period of time is assessed .
Performance Feedback
Lets employees know how well they
have performed in comparison with
the standards of the organization
9. To review the performance of the employees over a
given period of time.
To judge the gap between the actual and the desired
performance.
To help the management in exercising organizational
control.
To provide feedback to the employees regarding their
past performance.
Provide information to assist in the other decisions
in the organization like training needs, transfers,
promotion
To judge the ef fectiveness of the other human
resource functions of the organization such as
recruitment, selection, training and development.
10. Training & Carrer
Development
Recruitment
P
A Compensation
Selection
Promotion
& transfer
11. Mgr not taking
PA seriously Lack appraisal
Unclear
skills
Language
Mgr not Mgr not
honest or prepared
sincere
Insuff.
No on-going Rewards
feedback
Ineffective Mgr Lacks
discussion Infor.
12. SUPERIOR
SUPERIOR
CUSTOMERS
CUSTOMERS
TEAM
SELF
SELF
PEERS
PEERS
SUBORDINATES
SUBORDINATES
13. Common
Common
Appraisal Errors
Appraisal Errors
Error of Central to Address in
to Address in
Training
Training Recency Error
Tendency
Leniency or
Contrast Error
Strictness Error
Similar-to-Me Error
14.
15.
16. Descriptive report
Prepared at the end of the year
Prepared by the employee’s immediate
supervisor
The report highlights the strengths and
weaknesses of employees
Prepared in Government organizations
Does not of fer any feedback to the
employee
17. The rater is asked to express the strong
as well as weak points of employee’s
behavior
The rater considers the employee’s :
Job knowledge and potential
Understanding of company’s programs,
policies, objectives etc
Relation with co-workers and
supervisors
Planning, organizing and controlling
18. This method has the following
limitations:
Highly subjective
Supervisor may write biased essay
Dif ficult to find ef fective writers
A busy appraiser may write the essay
hurriedly without assessing properly the
actual performance of the worker
If the appraiser takes a long time it becomes
uneconomical from the view point of the firm
19. Manager prepares lists of statements of very
ef fective and inef fective behavior of an
employee
These critical incidents represent the
outstanding or poor behavior of the
employees
The manager periodically records critical
incidents of employee’s behavior
20. Example:
July 20 - Sales clerk patiently attended to the
customers complaint. He is polite, prompt,
enthusiastic in solving the customers’
problem
July 20 - The sales assistant stayed 45
minutes beyond his break during the busiest
part of the day. He failed to answer store
manager’s call thrice. He is lazy, negligent,
stubborn and uninterested in work
21. Critical Incident Technique
Limitation of this technique are:
Negative incidents may be more noticeable than
positive incidents.
Results in very close supervision which may not be
liked by the employee.
The recording of incidents may be a chore for the
manager concerned who may be too busy or forget
to do it.
22. A checklist is a set of objectives or
descriptive statements about the employee
and his behavior.
Under weighted checklist, value of each
question may be weighted.
Example:
Is the employee really interested in the
task assigned?
Yes / No
Is he respected by his colleagues? Yes /
No
23. Graphic rating scales are one of the most common methods
of performance appraisal. Graphic rating scales require an
evaluator to indicate on a scale the degree to which an
employee demonstrates a particular trait, behavior, or
performance result. Rating forms are composed of a number
of scales, each relating to a certain job or performance-
related dimension, such as job knowledge, responsibility, or
quality of work. Each scale is a continuum of scale points, or
anchors, which range from high to low, from good to poor, from
most to least effective, and so forth. Scales typically have from
five to seven points, though they can have more or less.
Graphic rating scales may or may not define their
scale points.
24. Forced distribution is a form of comparative evaluation in
which an evaluator rates subordinates according to a
specified distribution.
Use of the forced distribution method is
demonstrated by a manager who is told that
he or she must rate subordinates according
to the following distribution: 10 percent
low; 20 percent below average; 40 percent
average; 20 percent above average; and 10
percent high. In a group of 20 employees,
two would have to be placed in the low
category, four in the below-average
category, eight in the average, four above
average, and two would be placed in the
highest category.
25. The propor tions of forced distribution can
vary. For example, a supervisor could be
required to place employees into top,
middle, and bottom thirds of a distribution.
Forced distribution is primarily used to
eliminate rating errors such as leniency and
central tendency, but the method itself can
cause rating errors because it forces
discriminations between employees even
where job performance is quite similar. For
example, even if all employees in a unit are
doing a good job, the forced distribution
approach dictates that a certain number be
placed at the bottom of a graded continuum.
For this reason, raters and ratees do not
readily accept this method, especially in
small groups or when group members are all
27. Management by Objectives
Mana gement by objectives (MBO) involves
setting specific measur able goals with each
employee and then periodicall y discussing
his/her pr og r ess towar d these goals. T he ter m
MBO almost always r efer s to a compr ehensive
or ganization-wide goal setting and appr aisal
pr og r am that consist of six main steps:
1. Set the or ganizations goals. Establish
or ganization-wide plan for next year and set
goals.
2. Set depar tmental goals. Her e depar tment
heads and their superior s jointl y set goals for
28. Discuss and allocate depar tment goals.
Depar tment heads discuss the depar tment's
goals with all subor dinates in the depar tment
(often at a depar tment-wide meeting) and ask
them to develop their own individual goals; in
other wor ds, how can each employee contribute
to the depar tment's attaining its goals
4. Define expected r esults (set individual
goals). Her e, depar tment heads and their
subor dinates set shor t-ter m perfor mance
tar gets.
5. Perfor mance r eview and measur e the r esults.
Depar tment heads compar e actual perfor mance
for each employee with expected r esults.
6. Pr ovide feedback. Depar tment heads hold
periodic perfor mance r eview meetings with
subor dinates to discuss and evaluate pr ogr ess
in achieving expected r esults.
29. Ranking method
The evaluator rates the employee from
highest to lowest on some overall criteria
Paired comparison method
Each worker is compared with all other
employees in a group
For several traits paired comparisons are
made, tabulated and then rank is assigned
to each worker
This method is not applicable when the
group is large
30. 360 degree feedback, also known as 'multi-rater feedback' ,
is the most comprehensive appraisal where the feedback about the
employees’ performance comes from all the sources that come in
contact with the employee on his job.
Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and motivating abilities, superior’s
ability to delegate the work, leadership qualities etc. Also known as
internal customers, the correct feedback given by peers can help to
find employees’ abilities to work in a team, co-operation and
sensitivity towards others.
31.
32. Communication Leadership
Personal Adaptability
Development
Development
Relationships
of Others
Production Task
Management
33. To help employees do a better job by clarifying what is
expected of them
To plan opportunities for development and growth
To strengthen the superior-subordinate working relationship
by developing mutual agreement of goals
To provide an opportunity for employees to express
themselves on performance related issues
Hinweis der Redaktion
One weakness in many performance appraisal programs is that managers and supervisors conducting the appraisal are not adequately trained for that task. Appraisal training, at the least, should focus on eliminating the subjective errors made by managers in the rating process. Common types of errors include: Error of Central Tendency . A type of distributional error that involves a group of ratings given across various employees (occurs when all employees are rated about average). Leniency or Strictness Error . Another distributional error, in which the appraiser tends to give employees either too high or too low a rating. Recency Error . Recency is a performance-rating error in which the appraisal is largely based on the employee’s most recent behavior rather than on behavior throughout the appraisal period. Contrast Error . Contrast error occurs when an employee’s evaluation is biased either upward or downward because of another employee’s performance who was just evaluated previously. Teaching Tip: This tendency is explained in part by Sherif’s Social Judgment Theory in which positions similar to our own are believed to be closer to what we believe than they actually are (assimilated) and those different from our own are believed to be even more different from what they actually are (contrasted). By extension, a manager either improves or depresses an appraisal becasue of the similarity or difference of a particularly salient appraisal recently given another employee. Similar-to-Me Error . This occurs when appraisers inflate the evaluations of people with whom they have something in common. Teaching Tip: Again, Social Judgment Theory applies, as does Balance Theory.
