hrm perf app
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8/8/2019 HRM Perf App
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HRM
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PERFORMANCE MANAGEMENT
AND PERFORMANCE APPRAISAL???
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PERFORMANCE APPRAISAL
ASSESSMENTASSESSMENT OFOF PERFORMANCEPERFORMANCE ESSENTIALESSENTIAL FORFORSURVIVALSURVIVAL ANDAND GROWTHGROWTH OFOF ANAN ORGANISATIONORGANISATION..
PERFORMANCEPERFORMANCE APPRAISALAPPRAISAL ------------------WHYWHY NEEDEDNEEDED ??
A)A) FORFOR THETHE ORGANISATIONORGANISATION::
UtilisationUtilisation of of abilitiesabilities andand potentialitiespotentialities
BasisBasis for for promotions,promotions, assignmentassignment of of responsibilitiesresponsibilities etcetc..
BasisBasis for for trainingtraining andand developmentdevelopment of of HRHR
B)B) FORFOR THETHE INDIVIDUALINDIVIDUAL::
PlanPlan andand controlcontrol workwork inin aa better better wayway
FeedbackFeedback
Career Career planningplanning andand developmentdevelopment
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PERFORMANCE APPRAISAL
IFIF YOU YOU DON¶TDON¶T ASSESSASSESS PERFORMANCEPERFORMANCE YOU YOU CANNOTCANNOT ::
MONITORMONITOR ITIT
CONTROLCONTROL ITIT
MANAGEMANAGE ITIT
IFIF YOU YOU WANTWANT TOTO ASSESSASSESS PERFORMANCE,PERFORMANCE, YOU YOU HAVEHAVE TOTO ± ±
UNDERSTANDUNDERSTAND ITIT
STATESTATE ITIT PLANPLAN ITIT
DEVELOPDEVELOP YARDSTICKS YARDSTICKS TOTO MEASUREMEASURE ITIT
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PERFORMANCE APPRAISAL
IFIF YOU YOU WANTWANT TOTO IMPROVEIMPROVE PERFORMANCE,PERFORMANCE, THETHEPERFORMERPERFORMER HASHAS TOTO ± ±
UNDERSTANDUNDERSTAND ITIT
ASPIREASPIRE FORFOR ITIT
POSSESSPOSSESS COMPETENCIESCOMPETENCIES WORKWORK FORFOR ITIT
APPRAISEEAPPRAISEE EXPECTSEXPECTS ::
TOTO KNOWKNOW WHATWHAT HIS/HERHIS/HER DUTIESDUTIES ANDAND RESPONSIBILITIESRESPONSIBILITIESAREARE
TOTO KNOWKNOW WHATWHAT ISIS EXPECTEDEXPECTED OFOF HIM/HERHIM/HER
TOTO KNOWKNOW HOWHOW HE /SHEHE /SHE ISIS DOINGDOING
TOTO HAVEHAVE APPRAISER¶SAPPRAISER¶S HELP,HELP, IFIF NEEDNEED BEBE
REWARDSREWARDS TOTO BEBE COMMENSURATECOMMENSURATE WITHWITH PERFORMANCEPERFORMANCE
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PERFORMANCE APPRAISAL
APPRAISERAPPRAISER SHOULDSHOULD ::
PreparePrepare job job responsibilitiesresponsibilities
FacilitateFacilitate appraiseeappraisee toto setset goals/targetsgoals/targets AnalyseAnalyse resultsresults withwith appraiseeappraisee
Advise,Advise, guide,guide, coachcoach andand counselcounsel
RewardsRewards for for goodgood resultsresults
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PERFORMANCE APPRAISAL
THUS,THUS,
PerformancePerformance appraisalappraisal andand reviewreview isis thethe formal,formal,systematicsystematic assessmentassessment of of howhow wellwell employeesemployees areareperformingperforming their their jobs jobs inin relationrelation toto establishedestablishedstandardsstandards andand thethe dialoguedialogue aboutabout thatthat assessmentassessmentwithwith employeesemployees..
MOREOVER,MOREOVER, THETHE RESULTSRESULTS OFOF PERFORMANCEPERFORMANCEAPPRAISALAPPRAISAL ALSOALSO HAVEHAVE AA SIGNIFICANTSIGNIFICANT IMPACTIMPACTONON OTHEROTHER HRHR PROCESSESPROCESSES SUCHSUCH ASAS TRAININGTRAININGANDAND DEVELOPMENT,DEVELOPMENT, COMPENSATIONCOMPENSATION ANDANDPROMOTIONPROMOTION DECISIONSDECISIONS««
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PERFORMANCE APPRAISAL
PURPOSE(S)PURPOSE(S) OFOF PERFORMANCEPERFORMANCE APPRAISALAPPRAISAL ((22 broadbroad categories)categories)
a)a) EVALUATIONEVALUATION GOALSGOALS ± ±
GivingGiving feedbackfeedback toto employeesemployees soso theythey knowknow wherewhere theythey standstand
DevelopingDeveloping validvalid datadata for for paypay andand promotionpromotion decisionsdecisions andand providingproviding aameansmeans for for communicatingcommunicating thesethese decisionsdecisions
HelpingHelping thethe manager manager makemake retentionretention andand dischargedischarge decisionsdecisions andand
providingproviding aa meansmeans for for warningwarning employeesemployees aboutabout unsatisfactoryunsatisfactoryperformanceperformance..
b)b) COACHINGCOACHING ANDAND DEVELOPMENTDEVELOPMENT GOALSGOALS ± ±
CounselingCounseling andand coachingcoaching employeesemployees inin order order toto improveimprove their their performanceperformance andand developdevelop futurefuture potentialpotential..
DevelopingDeveloping commitmentcommitment toto thethe organizationorganization throughthrough discussiondiscussion of of career career opportunitiesopportunities andand career career planningplanning
MotivatingMotivating employeesemployees throughthrough recognitionrecognition andand supportsupport
StrengtheningStrengthening superior superior--subordinatesubordinate relationsrelations
DiagnosingDiagnosing individualindividual andand organizationalorganizational problemsproblems..
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PERFORMANCE APPRAISAL
DEFINITIONDEFINITIONPAPA isis aa formal,formal, structuredstructured systemsystem of of measuringmeasuring andand evaluatingevaluating ananemployee¶semployee¶s job job relatedrelated behaviorsbehaviors andand outcomesoutcomes toto discover discover howhowandand whywhy thethe employeeemployee isis presentlypresently performingperforming onon thethe job job andand howhowthethe employeeemployee cancan performperform moremore effectivelyeffectively inin thethe futurefuture soso thatthat thetheemployeeemployee asas wellwell asas thethe organizationorganization benefitbenefit..
WHOSEWHOSE PERFORMANCEPERFORMANCE SHOULDSHOULD BEBE RATED?RATED? All All EmployeesEmployees
WHOWHO AREARE RATERSRATERS ??
RatersRaters cancan bebe ::
ImmediateImmediate supervisor supervisor SubordinatesSubordinates
PeersPeers
CustomersCustomers--internal/externalinternal/external
RatingRating committeecommittee
Self Self
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DEV. PERFORMANCE MGMT. SYSTEMS
THETHE PERFORMANCEPERFORMANCE MGMTMGMT.. PROCESSPROCESS (steps)(steps)
IdentifyingIdentifying dimensionsdimensions of of job job performanceperformance
DefiningDefining andand communicatingcommunicating performanceperformance standardsstandards
DeterminingDetermining whowho willwill conductconduct thethe appraisalappraisal
ChoosingChoosing appropriateappropriate methodsmethods of of performanceperformanceappraisalappraisal
CommunicatingCommunicating appraisalsappraisals toto employeesemployees
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PERFORMANCE APPRAISAL
COMPONENTSCOMPONENTS OFOF AA PERFORMANCEPERFORMANCE REVIEWANDREVIEWAND DEVELOPMENTDEVELOPMENTSYSTEMSYSTEM (An(An Example)Example)
PartPart II -- KRAs(*)KRAs(*)
PartPart IIII -- JOBJOB RELATEDRELATED FACTORS(*)FACTORS(*)
PartPart IIIIII -- ASSESSMENTASSESSMENT BYBY INTERNALINTERNAL CUSTOMER(*)CUSTOMER(*)
PartPart IVIV -- GROWTHGROWTH POTENTIALPOTENTIAL ASSESSMENTASSESSMENT
PartPart VV -- CommunicationCommunication
PartPart VIVI -- DEVELOPMENTALDEVELOPMENTAL PLANPLAN
PartPart VIIVII -- FINALFINAL COMMENTSCOMMENTS BYBY COMMITTEECOMMITTEE (APPRAISER,(APPRAISER,HOD,HOD, GM)GM)
(Self (Self Appraisal!)Appraisal!)
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PERFORMANCE APPRAISAL
(self (self--appraisal)appraisal)
KRAsKRAs ± ±
RealisticRealistic andand achievableachievable
MutuallyMutually agreedagreed
InIn lineline withwith depttdeptt../organization /organization objectivesobjectives
BEHAVIORBEHAVIOR ± ± ORIENTEDORIENTED DIMENSIONSDIMENSIONS ( job( job relatedrelated factors)factors)
AA TARGETTARGET--CHASINGCHASING EMPLOYEEEMPLOYEE COULDCOULD EASILYEASILY TRAMPLETRAMPLEOVEROVER THETHE COMPANY¶SCOMPANY¶S VALUES,VALUES, ITSITS CREDIBILITY,CREDIBILITY, ITSITS
CUSTOMERSCUSTOMERS ININ HISHIS RUTHLESSRUTHLESS BIDBID TOTO MEETMEET NUMERICALNUMERICALGOALSGOALS..
AppraisalAppraisal systems,systems, therefore,therefore, mustmust testtest employeesemployees notnot just just ononresultresult--orientedoriented parametersparameters butbut alsoalso onon ³behavior ³behavior orientedorienteddimensions´dimensions´
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PERFORMANCE APPRAISAL
INTERNALINTERNAL CUSTOMERCUSTOMER
EachEach departmentdepartment hashas internalinternal customerscustomers.. EveryEveryemployeeemployee shouldshould strivestrive for for 100100%% satisfactionsatisfaction of of thetheinternalinternal customer customer..
PERFORMANCEPERFORMANCE COUNSELINGCOUNSELING
AppraisalsAppraisals shouldshould bebe counselingcounseling--orientedoriented..CounselingCounseling helpshelps thethe appraiser appraiser gaugegauge thethe feelingsfeelings
of of thethe appraiseeappraisee soso thatthat he/shehe/she cancan analyseanalyse his/her his/her performanceperformance..
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PERFORMANCE APPRAISAL
POTENTIALPOTENTIAL APPRAISALAPPRAISAL
Director Director && Sr Sr.. VPVP (HR(HR && operationaloperational policy),policy), PhilipsPhilipsIndiaIndia :: ³People³People areare likelike icebergsicebergs.. WhatWhat youyou seeseeaboveabove thethe surfacesurface (performance)(performance) isis onlyonly aa smallsmall
partpart.. AA largelarge partpart ± ± thethe attributesattributes neededneeded toto performperformexcellentlyexcellently inin aa futurefuture job job ± ± whichwhich II callcall potentialpotential isisnotnot immediatelyimmediately visiblevisible.. ItIt isis hiddenhidden belowbelow thethesurface´surface´.. (BT)(BT)
UncoveringUncovering thethe icebergiceberg maymay bebe difficult,difficult, butbut itit isisalsoalso criticalcritical for for corporatecorporate survivalsurvival..
Director,Director, GlaxoGlaxo IndiaIndia :: ³It³It isis anan importantimportant areaareabecausebecause peoplepeople havehave toto bebe preparedprepared toto taketake upuphigher higher responsibilities´responsibilities´.. (BT)(BT)
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PERFORMANCE AND POTENTIALPERFORMANCE AND POTENTIAL
LowLow PotentialPotential ± ± LowLow PerformancePerformance (??(??-- PlannedPlanned Separation)Separation)
HighHigh PotentialPotential ± ± LowLow PerformancePerformance (Problem(Problem Children)Children)
HighHigh PotentialPotential ± ± HighHigh PerformancePerformance (Race(Race HorsesHorses--Stars)Stars)
LowLow PotentialPotential ± ± HighHigh PerformancePerformance (Solid(SolidC
itizens)C
itizens)
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PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
METHODS OF APPRAISING PERFORMANCEMETHODS OF APPRAISING PERFORMANCE(past oriented methods)(past oriented methods)
NARRATIVENARRATIVE ESSAYESSAY ± ± Rater Rater describes,describes, inin writing,writing, anan emplyoee¶semplyoee¶sstrengths,strengths, weaknessesweaknesses andand potential,potential, together together withwith suggestionssuggestions for for improvementimprovement..
RANKINGRANKING ± ± Rater Rater ordersorders allall employeesemployees fromfrom highesthighest toto lowest,lowest,
fromfrom ³best´³best´ employeeemployee toto ³worst´³worst´ employeeemployee..PAIREDPAIRED COMPARISIONCOMPARISION ± ± EachEach employeeemployee isis comparedcompared withwitheveryevery other other employeeemployee (for (for everyevery traittrait likelike quantityquantity of of work,work, qualityqualityof of work,work, soso on)on).. TheThe rater rater toto choosechoose thethe ³better´³better´ of of eacheach pair,pair, andandeacheach employee¶semployee¶s rankrank isis determineddetermined byby countingcounting thethe number number of of timestimes sheshe or or hehe waswas ratedrated superior superior..
FORCEDFORCED DISTRIBUTIONDISTRIBUTION
(DR AW(DR AW ± ± aa normalnormal probabilityprobability curve)curve) XX axisaxis ± ± nono.. of of employees,employees, YY axisaxis--scoresscores 1010%%------------2020%%----------------4040%%------------------------2020%%------------------1010%%))
Assumption Assumption ± ± OverallOverall distributiondistribution of of ratingsratings isis forcedforced intointo aa normal,normal,
bellbell--shapedshaped curvecurve..
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PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
BEHAVIORALBEHAVIORAL CHECKLISTCHECKLIST ± ± Rater Rater isis providedprovided withwith aaseriesseries of of statementsstatements thatthat describedescribe job job--relatedrelated behavior behavior..His/her His/her tasktask isis simplysimply toto ³check´³check´ whichwhich of of thethe statements,statements, or or thethe extentextent toto whichwhich eacheach statement,statement, describesdescribes thethe employeeemployee..
EgEg.. ³She/he³She/he followsfollows upup onon customer customer complaints´complaints´ ± ± always,always,veryvery often,often, fairlyfairly often,often, occasionally,occasionally, never never
FORCEDFORCED CHOICECHOICE ± ± TheThe rater rater isis givengiven aa seriesseries of of statementsstatements aboutabout anan employeeemployee.. TheThe statementsstatements arearearrangedarranged inin blocksblocks of of two/more,two/more, andand thethe rater rater indicatesindicateswhichwhich statementstatement isis mostmost or or leastleast descriptivedescriptive of of anan employeeemployee..
GRAPHICALGRAPHICAL RATINGRATING SCALESCALE ± ± HereHere thethe rater rater typicallytypicallyratesrates onon aa 55--ptpt.. scalescale.. EgEg.. JobJob knowledgeknowledge mightmight bebe ratedrated11(poorly(poorly informedinformed aboutabout workwork duties)duties) toto 55 (has(has completecompletemasterymastery of of allall phasesphases of of thethe job) job)..
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PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
CRITICALCRITICAL INCIDENTSINCIDENTS ± ± TheThe appraiser appraiser writeswrites downdownanecdotesanecdotes thatthat describedescribe whatwhat thethe employeeemployee diddid thatthat waswasespeciallyespecially effectiveeffective or or ineffectiveineffective (only(only specificspecific behaviors,behaviors,notnot vaguelyvaguely defineddefined personalitypersonality traits,traits, areare cited)cited)..
+ve+ve ± ±(date)(date) patientlypatiently attendedattended toto customerscustomers complaintscomplaints..
--veve-- (date)(date) overstayedoverstayed duringduring lunch,lunch, callscalls wentwent unattendedunattended..
BEHAVIORALLYBEHAVIORALLY ANCHOREDANCHORED RATINGRATING SCALESCALE (BARS)(BARS) ± ± A A combinationcombination of of ratingrating--scalescale methodsmethods.. TheThe appraiser appraiser ratesratesthethe employeesemployees basedbased onon itemsitems alongalong aa continuumcontinuum.. B ARSB ARSareare developeddeveloped inin aa 55--stepstep processprocess..
StepStep 11-- CollectCollect criticalcritical incidentsincidentsStepStep 22-- IdentifyIdentify performanceperformance dimensionsdimensions
StepStep 33-- ReclassificationReclassification of of incidentsincidents
StepStep 44-- Assigning Assigning scalescale valuesvalues toto thethe incidentsincidents
StepStep 55 ± ± ProducingProducing thethe finalfinal instrumentsinstruments
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PERFORMANCE APPRAISALPERFORMANCE APPRAISALMETHODS OF APPRAISING EMPLOYEE PERFORMANCEMETHODS OF APPRAISING EMPLOYEE PERFORMANCE
(future oriented) Contd«(future oriented) Contd«
MANAGEMENTMANAGEMENT BYBY OBJECTIVES(POBJECTIVES(P Drucker,Drucker,19541954)) ± ± ManagingManagingthatthat reliesrelies onon goalgoal settingsetting toto establishestablish objectivesobjectives for for thetheorganizationorganization asas aa whole,whole, for for eacheach depttdeptt..,, for for eacheach manager manager withinwithineacheach depttdeptt.. andand for for eacheach employeeemployee.. 33 thingsthings importantimportant herehere ::
MeetMeet toto agreeagree onon thethe major major objectivesobjectives for for aa givengiven periodperiod of of timetime..
DevelopDevelop plansplans for for howhow andand whenwhen thethe objectivesobjectives willwill bebe accomplishedaccomplished
Agree Agree onon thethe yardstickyardstick for for determiningdetermining whether whether thethe objectivesobjectives havehave
beenbeen metmet..
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PERFORMANCE APPRAISALPERFORMANCE APPRAISAL
METHODS OF APPRAISING EMPLOYEE PERFORMANCEMETHODS OF APPRAISING EMPLOYEE PERFORMANCE
(future oriented) Contd«(future oriented) Contd«
360360 DEGREEDEGREE APPRAISALAPPRAISAL ± ±MultipleMultiple ratersraters.. MultipleMultiple--sourcesourcefeedbackfeedback facilitiesfacilities greater greater self self--developmentdevelopment ;; itit makesmakes thetheemployeeemployee feelfeel muchmuch moremore accountableaccountable toto his/her his/her externalexternalcustomerscustomers..
ASSESSMENTASSESSMENT CENTRE(CENTRE(anan approachapproach notnot aa physicalphysical place)place) ± ±requiresrequires thethe participantsparticipants toto completecomplete aa rangerange of of tests/exercisestests/exerciseswhichwhich simulatesimulate thethe activitiesactivities theythey mightmight encounter encounter inin thethe targettarget job job..TheThe principalprincipal ideaidea isis toto evaluateevaluate managersmanagers over over aa periodperiod of of time,time,
saysay 11--33 days,days, byby observingobserving (and(and later later evaluatingevaluating )) their their behavior behavior acrossacross aa seriesseries of of selectselect exercisesexercises-- inin--basket,basket, casecase discussions,discussions,rolerole playing,playing, psycholpsychol..teststests etcetc.. TheThe characteristicscharacteristics assessedassessed inin aatypicaltypical AC AC includeinclude assertiveness,assertiveness, communicatingcommunicating ability,ability, self self--confidence,confidence, decisiondecision makingmaking ,, resistanceresistance toto stressstress etcetc..
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PERFORMANCE APPRAISALPERFORMANCE APPRAISALPROBLEMS/ERRORSPROBLEMS/ERRORS
HALOHALO EFFECTEFFECT ± ± ThisThis isis aa tendencytendency toto letlet thethe assessmentassessment of of aasinglesingle traittrait influenceinfluence thethe evaluationevaluation of of other other traitstraits tootoo..
HORNSHORNS EFFECTEFFECT ± ± ThisThis isis aa tendencytendency toto allowallow oneone negativenegative traittraitof of thethe employeeemployee color color thethe entireentire appraisalappraisal..
LENIENCYLENIENCY ERRORERROR ± ± DependingDepending uponupon thethe appraiser¶sappraiser¶s ownown valuevaluesystemsystem or or mentalmental makemake--up,up, whichwhich actsacts asas aa standard,standard, employeesemployeesmaymay bebe ratedrated lenientlyleniently or or strictlystrictly..
SuchSuch ratingsratings dodo notnot carrycarry anyany referencereference toto actualactual performanceperformance of of thethe employeesemployees.. SomeSome appraisersappraisers consistentlyconsistently assignassign highhigh valuesvaluestoto allall employees,employees, regardlessregardless of of meritmerit.. TheThe strictnessstrictness tendencytendency isis aareversereverse situaionsituaion
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PERFORMANCE APPRAISALPERFORMANCE APPRAISALPROBLEMS/ERRORS (Contd..)PROBLEMS/ERRORS (Contd..)
CENTRALCENTRAL TENDENCYTENDENCY ± ± HereHere thethe rater rater assignassign mostlymostly middlemiddle--rangerange scores/valuesscores/values toto allall individualsindividuals under under appraisalappraisal.. Usually,Usually, thisthisisis causedcaused byby lacklack of of informationinformation aboutabout thethe employeeemployee andand hishisbehavior behavior (attitude(attitude of of thethe rater rater isis toto playplay safe)safe)..
STEREOTYPINGSTEREOTYPING ± ± ThisThis isis aa standardstandard mentalmental picturepicture anan appraiser appraiser holdsholds aboutabout anan individualindividual accordingaccording toto thethe categorycategory he/shehe/sherepresentsrepresents ± ± whichwhich couldcould bebe sex,sex, age,age, religion,religion, caste,caste,etcetc..(generalizations)(generalizations)..
SPILLSPILL--OVEROVER EFFECTEFFECT ± ± ThisThis refersrefers toto allowingallowing pastpast performanceperformance
toto influenceinfluence thethe evaluationevaluation of of presentpresent performanceperformance.. PastPast ratingsratingsresultresult inin similar similar ratingrating thethe currentcurrent periodperiod..
PRIMACYPRIMACY && RECENCYRECENCY EFFECTEFFECT ± ± TheThe rater¶srater¶s ratingsratings areare heavilyheavilyinfluencedinfluenced byby behavior behavior exhibitedexhibited byby thethe rateeratee duringduring thethe earlyearlystagesstages of of thethe reviewreview periodperiod (primacy)(primacy) or or byby outcomes,outcomes, or or behavior behavior exhibitedexhibited byby thethe rateeratee near near thethe endend of of thethe reviewreview periodperiod (recency)(recency)..