Class 13. performance appraisal 1 v7.0

Jon Boyes
Employability and Graduate Development
PGDHRM
www.hrspot.co.in
Kolkata | Bhubaneswar | Hyderabad
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Performance Appraisal
Post Graduation Diploma in Human Resource Management
Performance Appraisal 1

What is Performance

Hiring
Training Target Work Evaluate
Result

Performance = Outcome – Expectation
The gap between company expectation
and the work result
Positive Gap
More than expectation
Negative Gap
Less than expectation

Goal Setting

 Fundamental component to success
 Goals help employees stay aware of what is expected from them
 Should be defined for next one year

 Specific
 Measurable
 Attainable
 Relevant
 Time-bound

Key Result Area

 Responsibilities identified as
important or crucial
 What a job is expected to
accomplish
 Accomplishment to be done

Key Performance Indicator

 Indicates the progress
 Identifies the achievement and
compares with expectation
 Mainly numeric in nature

Example of KRA and KPI

KRA without measurable KPI
KRA: Run from Kolkata to Delhi
Reward: You run well - Get trophy
Questions: Who will get trophy?
What is “Good Run”?
KRA with measurable KPI
KRA: Run from Kolkata to Delhi
KPI: Complete within 10 hours
Reward: If you can complete
within 10 hours then you will get
trophy

 Must be aligned with company goal
 If does not have any positive
impact on company goal, is not
qualified for KRA or KPI
KRA KPI
Employee satisfaction rate % of employees rated satisfaction as “excellent”
Attrition rate % of employees left
Hiring time % of vacancies filled up within 7 days of time
Recruitment cost % of recruitment cost reduced from last year
Recruitment cost Per hiring cost

How to Design KRA and KPI

 Go through employee’s Job Description
 Make a list of the functions/responsibilities which are critical to the job, i.e. KRA
 Categorize these critical functions and responsibilities in two categories
 Which can be measured in numbers or percentages or yes/no [A]
 Which cannot be measured in numbers and cannot be calculated [B]
 Functions in [A] are the KRAs, with KPIs
 Functions in [B] are the KRAs, without KPIs

 Write a self explanatory (one sentence) definition of each Goal (KRA)
 Describe each Goal (KRA)
 Mention a measurable target to be achieved and time frame for achievement for
each Goal (KRA)

Class Activity

KRA & KPI Designing
All Students will be asked to make 10 KRAs and 10 KPIs for the following job
roles:
1.HR Executive
2.Marketing Executive
3.Regional Sales Manager
4.Accounts Manager
Group Activity: 60 min

PMS Objective

 High performance culture
 Superior performance
 Identifying skills required
 Challenges of performance
 Career growth
 Rewarding

PMS Process

Design KRA & KPI – Goal
Setting
Communicating at
beginning of year
Recording performance
throughout the year
Announcement of PMS
Date, Time & Process
Self Appraisal by the
Employee
One to one discussion
with Manager
Performance Feedback &
rating by Manager
Finalisation of Rating
with HR approval
Announcement of Final
Rating and Rewards

Frequency of PMS

Type Frequency Remarks
Formal
Annual
For last 1 year performance, Increment, Bonus,
Promotion, Feedback, Training Need Identification
Half yearly
For each 6 month’s performance, generally no reward,
Feedback, Training Need Identification
Informal Any time Continuous Feedback, Training Need Identification

PMS Rating Scale

 A tool to rate performance
 Marking performance in terms
various ranking level
 1 (Good)  2 (Average)  3 (Bad) 1 (Good)  2 (Average)  3 (Bad)
 1 (Excellent)  2 (Good)  3 (Bad)  4 (Poor) 1 (Excellent)  2 (Good)  3 (Bad)  4 (Poor)
 1 (Poor)  2 (Bad)  3 (Average)  4 (Good)  5 (Excellent) 1 (Poor)  2 (Bad)  3 (Average)  4 (Good)  5 (Excellent)

PMS Techniques

Rating Scale Method
Rated on a scale that usually has
several points ranging from "poor" to
"excellent"

Essay Appraisal Method
Free Form method
Description of the performance
Example, Job knowledge, potential, attitude
of employee, training required etc.
Not countable and depends highly on
writing skills

Management by Objectives
Establish goals and desired outcomes
for each manager
Establish new goals and new
strategies for goals not achieved in
previous year
Mainly for higher position, not for
middle/lower position

Checklist Method
A checklist of the descriptions of the
behaviour of the employees
Example
Is the employee skill-full: Yes/No
Is he respected by his colleagues: Yes/No
Does he give respect superiors? Yes/No
Does he follow instructions? Yes/No

Confidential Report
Mostly used in government
Organisation
Described report of the employee’s
performance
To be maintained throughout the year
but to be submitted during appraisal
time

Critical Incident Technique
Lists of very effective and ineffective
Behaviour.
Recorded throughout the year.
Example
July 20 – The employee did not resolve
customers complaint.
July 20 – The sales assistant stayed 45
minutes over on his break during the busiest
part of the day. He failed to answer the
store manager's call thrice

PMS Form

 Self Appraisal Form
To evaluate self performance and to
identify self strength and weakness
 Manager Appraisal Form
To be written by the Manager about
the performance of the team
members

PMS Form
Information section
Key
parameters
section
Rating scale
section against
each key
parameters
Descriptive questions section
Final rating & Comments section

Sample PMS Form
Microsoft Word
97 - 2003 Document
Sample PMS Form - 1
Microsoft Word
97 - 2003 Document
Sample PMS Form - 2
v
Microsoft Word
97 - 2003 Document
Sample PMS Form - 3
Microsoft Excel
97-2003 Worksheet
Sample PMS Form - 4
Microsoft Excel
97-2003 Worksheet
Sample PMS Form - 5

PMS Process Designing & PMS Form Designing
All Students will be asked to design PMS process for HR SPOT. Set the
proper PMS objective, design the PMS process, PMS frequency, PMS
techniques regarding the same. Design PMS form for self appraisal &
manager appraisal.
Group Activity: 60 min

Class 13. performance appraisal 1 v7.0

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