3. 1. Meaning of Performance Appraisal.
2. Purposes of Performance Appraisal.
3. Criteria in the development of measuring
instruments.
4. Problems in Performance Evaluation.
5. How to convey the Performance
Appraisal feedback.
CONTENTS OF THIS LESSON
15. Process of Performance Appraisal
Establishing Standard of Performance
Measuring Actual Performance
Communication Standard to Employee
Taken Corrective Action
Comparing Actual with Standard Performance
Job Analysis
16. Scheduling the Performance Appraisal
Ask the employee to prepare for the session by
reviewing his or her performance, job objectives,
and development goals.
Clearly state that this will be the formal annual
performance appraisal.
Schedule the review and notify the employee ten
days or two weeks in advance.
17. Who performs the appraisal?
● Immediate Supervisor
● Higher Management
● Self Appraisals
● Peers or Co-workers
● Evaluation Teams
● Customers
● 360° Appraisals
18. Performance Appraisal Method
● Paired Comparison
● Graphic Rating Scales
● Forced Choice Method
● Forced Distribution Method
● Checklist Method
● Free Essay Method
● Critical Incident Method
● Group Appraisal Method
● Field Review Method
● Confidential Report
● Ranking
● Assessment Center
● Appraisal by Results or
Management by Objectives
(MBO)
● Human Asset Accounting
● Behaviorally Anchored Rating
Scales
● Psychological Appraisals
● 360° Appraisal Method
Traditional Method/
Past- Oriented Techniques
Modern Method/ Future-
Oriented Techniques
19. Paired Comparison
Ranking employees
by making a chart of
all possible pairs of
the employees for
each trait and
indicating which is the
better employee of
the pair.
20. Graphic Rating Scales
Graphic rating scale
is one of the oldest
and most commonly
used methods of
performance
appraisal.
21. Forced choice method of performance appraisal was introduced
by J.P. Guilford. It is one of the most systematic and reliable
approaches to evaluating employees accurately.
Forced Choice Method
22. Forced Distribution Method
Employers or raters are
found to have a tendency to
rate their employees near
average or above-average
performing categories.
Around the late 90s, Tiffen
introduced a new method of
performance appraisal
called forced distribution, in
an attempt to eliminate the
flaws of the raters.
24. It is a traditional and judgmental approach under which
an employee is evaluated and a descriptive essay is
written on him/her. The essay describes in detail the
strengths, weaknesses, potential, nature, etc.
Free Essay Method
26. This method considers the performance the
performance evaluation by a group of people holding
information about the job and performance standards.
Group Appraisal Method
27. Field review method of performance appraisal is
conducted by the rater who does not belong to the
employees’ department. The rater is someone from the
corporate, especially from the HR department.
Field Review Method
28. Confidential report is the method of evaluating an employee’s performance and
taking necessary actions without giving any feedback to the employees. The
confidential report should only be viewed by authorized personnel. Therefore, it
is not sent openly but in a sealed envelope. Generally, such method of
performance appraisal is conducted yearly and employees are appraised on the
following traits:
● Attendance
● Teamwork
● Dependability
● Leadership
● Behavior with superiors, colleagues, and junior workers
● Discipline
● Integrity and honesty
● Quality and quantity of output, etc.
Confidential Report
29. Ranking Method
Ranking is one of the simplest methods of
performance appraisal. Under this
method, employees are ranked from the
best to the worst according to their
performance level.
The best performing employees are
ranked #1 and the least performing one is
ranked the last. Based on these rankings,
the companies may take any actions, from
promotion to termination.
31. Assessment Center
Assessment Centers are mainly used for the
assessment of managerial or administrative capacity.
It is a central point where managers may appear jointly
to contribute to job-related exercises assessed by the
trained evaluators.
The basic purpose is to assess managers periodically,
says one to three days, with the help of observation and
evaluation of their actions across the cycle of chosen
exercises or work samples.
33. Appraisal by Results or Management by
Objectives (MBO)
Management by objectives (MBO) is a modern and systematic method of
appraising employees’ performance which was jointly founded by some
experts of management science like Drucker, McGregor, and Odiorne.
Managers of the present generation are aware of the fact that results of
traditional methods of performance appraisal were majorly based on the
perspective or opinion of the raters. They have realized that it is essential to
know what achievement from an employee’s point of view is.
MBO is the employer-employee-driven approach to performance appraisal
which involves superiors and subordinates in setting goals. The employees
work upon achieving their set goals and employers keep a record of how
close they are to the accomplishment of the goals. This way, employees
become clear about which path to walk on to get the goals, subsequently
increasing and improving their performance level.
34. This type of appraisal is employed in startups where the
imperative is to deliver or die. In this method, the
individual employee’s performance is linked to the
amount of revenue being generated, new deals won, or
average business size growth per customer.
Human Asset Accounting Method
35. Behaviorally Anchored Rating Scale (BARS)
Behaviorally anchored rating scales
(BARS) is the combination of critical
incident and rating scale methods of
performance appraisal. BARS usually
consists of a scale ranging from 5 to 9
points, each representing continuum of
statements that describes the behavior
of employees ranging from
unacceptable to most effective.
36. This type of performance appraisal assesses the
employee’s aptitude, emotional balance, analytical
skills, and other psychological attributes. This appraisal
type is best applicable to identify employees for fast
track or future leaders for the Management Cadre.
Psychological Appraisals
38. 360° Appraisal Method
360-degree appraisal is a modern technique to evaluate employee’s
performance which was developed in the early 90s in the U.S.A.
An evaluator asks various questions about these factors and collects
their feedback. The gathered information is then assembled through a
computerized system and individual reports are prepared. Such reports
are finally distributed to the employees, following which they can
communicate with their appraiser in regards to their opinion about how
to improve his performance.
The 360-degree method is considered to be the most effective way of
appraising employees’ performance as information and feedback are
collected from all around.
39. Traditional vs Modern Appraisal Method
Basis of Difference Traditional Methods Modern Methods
1. Guiding Values
Individualistic, Control
oriented, Documentary
Systematic, Development,
Problem solving
2. Leadership Styles Directional, Evaluative Facilitative, Coaching
3. Frequency Occasional Frequent
4. Formalities High Low
5. Rewards Individualistic Grouped, Organisational
41. Strategic purpose
● To point out the work goals and
directions of employees,
● To guide their work behaviors and work
results to be consistent with the
company's ultimate goal of maximizing
profits.
42. Management purpose
● To ensure that employees
perform their responsibilities
● To ensure all the organization's
rules, regulations and work
procedures can be implemented.
43. Incentive purpose
● To evaluate the performance
of employees
● To provide the basis for
salary distribution, rewards,
punishments, rank promotion,
and job transfer.
44. Diagnosis purpose
Analyze the factors that affect
performance, find out the key
unfavorable factors and solutions,
then :
To improve the management
mechanism and the management
efficiency of the organization.
45. Development purpose
Identify deficiencies in employees'
knowledges, abilities, attitudes,
etc.,
To guide them to improve
and develop their potential
To improve their
performance levels.
49. 1. Leniency or Severity
Situation where some managers
are too lenient and will send up
appraising all employees above
average, whereas other would
provide below average.
50. Halo Effect
The halo effect exists where a
supervisor assigns the same
rating to each factor being
evaluated for an individual.
51. Rater Effect
❏ This includes biasness and
favouritism.
❏ Excessively high or low
scores are given to certain
employees based on the
raters attitude towards the
ratee.
❏ They do not consider the
actual outcomes.
59. Feedback is not to be confused with Performance
Appraisal
Feedback – ensures that managers and employees have
the same understanding of the standards and the
expectations of the work to be performed through the
exchange of information about the status and quality of the
work.
Performance Appraisal - is a regular review of an
employee's job performance and contribution to a
company.
IMPORTANT!
60. FEEDBACK VS APPRAISAL
To understand the process of conveying a performance appraisal we must
consider their differences.
Feedback
● Can be used to motivate and support employees
● Provides non judgmental information
● Immediate and ongoing process
Appraisal
● May create fear and negative emotional reactions
● Provides a judgement or evaluation
● Retrospective and event based
61. FEEDBACK – A PRECURSOR TO APPRAISALS
Continuous Feedback
● Management better understands what is needed to continue good
performance
● Preemptively corrects poor performance
● Promotes better collaboration
● Discover employee inherances early on
Results
● Fosters a better relationship between management and subordinates
● Aids the employee in receiving a better performance evaluation
● Promotes dialogue within the company
● Employee is more receptive during the appraisal process
62. FEEDBACK – A PRECURSOR TO APPRAISALS
The longer it takes for management
and employees to have a feedback
dialog about performance issues the
greater the distance will be during the
evaluation process.
63. APPRAISALS WITHOUT PRIOR FEEDBACK
A Recipe For Disaster
● Management can accumulate a year’s worth of
criticism
● Criticism is administered to the employee in one
appraisal setting
● Employees may leave or be terinated
● Employee is unaware of any poor performance issues
● Employee has no time to absorb the information and
make corrections
64. PSYCHOLOGY OF CONVEYING THE EVALUATION
● Must aim at promoting a positive element
● Overwhelming negativity will create excessive emotions
● Must not contain excessive judgemental overtones
● Information clearly presented to avoid confusion
● Employee is already in a highened state of self defence
● Employee must not leave with a feeling of emptiness
about future support
65. EMPLOYEE DESIRES
● Desire clear improvement plans
● Notifications of poor performance with time for
improvement prior to a performance evaluation
● Regular construction feedback both positive and
negative
● Desire smaller doses of critisism instead of a massive
dose during the yearly evaluation
● The right amount of support to increase performance
66. RESPONSIBILITY OF THE APPRAISER
● Clear understanding of the employees job and
duties
● Active listening skills
● Foster dialog and feedback from the employee
● Promote consistency during the appraisal process
● Provide support after the appraisal process
● Set reasonable expectations and goals
● Avoid antagonism
67. CONVEYING THE APPRAISAL
● Get to the point. Be direct with any negative
feedback
● Be direct and specific on what you would like the
employee to do
● Each criticism should include some notes on how
that employee can improve
● Offer guidance to help them work towards these
objectives
68. CONVEYING THE APPRAISAL
● Encourage feedback from an employee during the
performance review.
● To be a productive conversation, the employee should
do much of the talking during these evaluations
● Encourage employees to talk about ways they can
improve
● Help them focus on what they like about their jobs
● Encourage them to set their own goals for their position
69. CONVEYING THE APPRAISAL
● Define a realistic plan of action
● What exactly does the employee need to do to
improve?
● How will those steps be measured?
● As a manager, what will you do to help the
employee achieve success?
● Ask the employee if they would like additional
training, new opportunities or other steps to help
them grow within the company.
70. CONVEYING THE APPRAISAL
Before the evaluation meeting ends, make
sure the employee understand the next
steps in the plan of action
71. AFTER THE APPRAISAL
● Any employee who does not agree with their appraisal needs to
be addressed at the earliest
● Sit with the employee and try to help them understand why they
received a poor performance rating
● Make sure no one feels left out. Congratulate everyone for being
consistent and most importantly loyal towards the organization
● Provide new realistic targets and guide them as to how you can
work together to increase satisfaction and performance
72. AFTER THE APPRAISAL
● Sit with each employee and try to find out why they under
performed. Understanding their emotions will shed light on their
appraisal
● Inform the employee of your intention to assist and support their
development in the future
● Try to determine if the employee is facing any problems and
assist them in finding a solution
● Make the performance review process less stressful by
interacting with the employee regularly between evaluations
73. AFTER THE APPRAISAL
● Allow the employee to speak and vent their
frustrations
● Regularly encourage them by sending them a
motivational email
● Encourage them to work in unison with their fellow
workers and most importantly believe in the organization
and its process
76. MAYBE YOU NEED TO
DIVIDE THE CONTENT
MERCURY
Mercury is the closest
planet to the Sun and
the smallest one
VENUS
Venus has a beautiful
name and is the second
planet from the Sun
77. YOU COULD USE THREE
COLUMNS, WHY NOT?
JUPITER
It’s a gas giant and
the biggest planet in
the Solar System
VENUS
Venus has a very
poisonous
atmosphere
MARS
Despite being red,
Mars is actually a
cold place
86. SOMETIMES, COMPARISONS
ARE GOOD
● You can define one of the
concepts here
● You can define one of the
concepts here
● You can define one of the
concepts here
● You can define one of the
concepts here
● You can define one of the
concepts here
● You can define one of the
concepts here
CONCEPT 1 CONCEPT 2
87. REVIEWING CONCEPTS IS A
GOOD IDEA
VENUS
Venus has a
beautiful name
MARS
Mars is actually a
cold place
MERCURY
Mercury is the
smallest planet
SATURN
Saturn is the ringed
one and a gas giant
NEPTUNE
It’s the farthest
planet from the Sun
JUPITER
It’s a gas giant and
the biggest one
88. You can use bullet points
to talk about the
concepts. It is much more
visual than a large text
● You can write about a concept
here and talk about it a little
● You can write about a concept
here and talk about it a little
● You can write about a concept
here and talk about it a little
● You can write about a concept
here and talk about it a little
● You can write about a concept
here and talk about it a little
● You can write about a concept
here and talk about it a little
A SUMMARY IS
GOOD!
89. You can replace the
image on the
screen with your
own work. Just
delete this one, add
yours and center it
properly
DESKTOP SOFTWARE
90. TABLET APP
You can replace the
image on the
screen with your
own work. Just
delete this one, add
yours and center it
properly
91. MOBILE WEB
You can replace the
image on the
screen with your
own work. Just
delete this one, add
yours and center it
properly
92. A GOOD WAY TO END THE
PRESENTATION
Mercury is the closest planet to the
Sun and the smallest one in the
Solar System—it’s only a bit larger
than the Moon
93. WHAT THEY SAY ABOUT US?
—HELENA PATTERSON, 22
“Jupiter is the biggest
planet of them all”
Purpose
Goals and
Objectives
Methods
Knowledge
Direction
Values
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