2. What is Evaluation?
The making of a judgement about
Amount
Number
Value of Something
a) Employer Prospective b) Employee Prospective
The process by which an employee’s contribution to the
organization during a specified period of time is assessed.
9. Objectives of Performance Evaluation
Measuring the efficiency
Maintaining organizational
control
Concrete and tangible
particulars about their work
Assessment of performance
Mutual goals of the employees &
the organization.
Growth & development
Increase harmony & effectiveness
Personal development
Work satisfaction
Involvement in the organization.
Employee Organization
According to:
Aims at:
10. PE and other HRM Functions
Recruitment
Selection
Training &
Development
Compensation
Labor Relations
P
E
11. Why Performance Evaluation may Fail?
Unclear
Language
Mgr not taking
PE seriously
Mgr not
prepared
No on-going
feedback
Mgr not honest
or
sincere
Ineffective
discussion
Lack of
evaluation skills
Mgr Lacks Infor.
Insuff. Rewards
15. Paired Comparison Method
• 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.
• It is useful where priorities are not clear
• This method is not appropriate if a large number of employee are
required to be evaluated.
16. Graphic or Linear Rating Scales
Attitude
No interest
In work:
consistent
complainer
Careless:
In-different
Instructions
Interested in
work: Accepts
opinions &
advice of
others
Enthusiastic
about job &
fellow-
workers
Enthusiastic
opinions &
advice sought
by others
Decisiveness
Take decisions
in consultation
with others
whose views he
values
Slow to
take
decisions
Take decisions
after careful
consideration
Takes
decisions
promptly
Take
decisions
without
consultation
0 5 10 15 20
0 5 10 15 20
17. Criteria Rating
1.Regularity on the job Most Least
Forced choice method
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
18. No.
of
employees 10% 20% 40% 20% 10%
poor Below
average
average good Excellent
Force distribution curve
Forced distribution method
19. Free essay method
The rater writes a brief essay providing an assessment of the strengths,
weaknesses and potential of the subject. In order to do so objectively, it
is necessary that the rater knows the subject well and should have
interacted with them.
• Write a Behavioral Statement
• Strengths versus Weaknesses
• Describe Selected Traits
• Evaluate Performance
21. Ex: A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
Critical Incident method Example
22. Confidential report
It is mostly used in government organizations. A descriptive
report prepared by the employee’s immediate superior. The
report highlights the strengths and weaknesses of the
subordinate. The impressions of the superior about the
subordinate are merely recorded and kept confidential without
revealing the facts.
23. As compared to A B C
A + - +
B - + -
C + - +
For the Trait “Quality of
work”
A - + +
B + - +
C + + -
As compared to A B C
For the Trait “Creativity”
+
+
++
+
+
+
+ +-
-
-
--
- +
- -
Person rated Person rated
Ranking employees by paired comparison Method
26. Behavioral Coordinate Rating Scales
Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable suggestions for
increased sales and to have positive relationships
with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved
sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in
time.
Below average 3 Can expect to unload the trucks when asked by the
supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor 1 Can expect to take extended coffee breaks & roam
around purposelessly.
30. 720 Degree Performance Evaluation
• Considered an “ all-round ” evaluation, the 720 degree
performance evaluation gives an employee more than feedback
from one person.
• This evaluation gives the employee a lot of feedback generally
from anywhere from 5 to 8 people, to provide the employee with
an all round assessment of his or her on the job performance.
• 720 degree as the name suggests is 360 degree twice
• It provide for two round of feedback (a pre and post ) or a
feedback approach which is done again after nine to twelve
months.
33. Issues in Evaluation system
Evaluation
Design
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
34. Advantages
Provide a record of
performance over a
period of time.
Provide an
opportunity for a
manager to meet &
discuss performance
Provide the
employee with
feedback about their
performance
Provide an opportunity
for an employee to
discuss issues and to
clarify expectations
Can be motivational
with the support of a
good reward and
compensation
35. If not done appropriately, can
be a negative experience.
Very time consuming,
especially for a manager
Subject to rater errors &
biases.
If not done right can be a
complete waste of time.
Can be stressful for all
involved
Disadvantages
