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Management and Appraisal concept of performance

Every manager needs some way to appraise employees performance. If employees performance
is good, management wants to reinforce it. If employees performance is weak, management want
to take improve action. Performance appraisal is a method of evaluating the behavior of
employees in the work spot normally including both the quantitative and qualitative aspects of
job performance. It is a process that involves determining and communicating to an employee
how he or she is performing the job. Performance appraisal always involves
1) Setting work stand
2) Assessing the employees actual performance relative to those standards &
3) Providing feedback to the employee with the aim of motivating him/her to eliminate
performance deficiencies perform above par.

Comparing Performance
Appraisal & Performance
Management

Performance Management
Performance Appraisal
An integrated approach to
ensuring that an employees
performance supports &
contribute o the organizations
strategic aims.

Setting work standards,


assessing performance &
providing feedback to
employees to motivate, correct
& continue their performance.

Fig: Comparing Performance Appraisal & Performance Management

Why Appraise performance?


Employees should be evaluated in terms of how well they accomplish duties specified in their
job descriptions & any other specific goals that may have been established. Regular performance
appraisals help create a corporate culture that promotes personal success along with
collaboration. Appraisal also assumes that the employees knew what their performance standards
were & received the feedback required to remove performance deficiencies. The appraisal
process offers several benefits organizationally, generating an atmosphere of excellence.
Performance appraisal needs four reasons. These are:
Measuring Employee Performance: Performance management is the continuous
process of identifying, measuring developing the performance of individuals & terms &
aligning their performance with the organizations goals.
Determining Pay & Promotion decision: Most of the organization employees pay &
promotional decision based on employees appraisal.
Career Planning: Appraisals should serve a useful career planning purpose. It provides
an opportunity to review the employees career plans in light of his/her exhibited
strengths & weaknesses.
Determining Training & Development needs: If specification lists particular
Knowledge, skill, ability & person filling position does not possess all necessary
qualifications, training& development is needed.

The Supervisors role


Appraising performance Supervisors role is important. Supervisors must familiar with appraisal
techniques, understand& avoid problems that can cripple appraisals & know how to conduct
appraisals fairly. The supervisor does the actual appraising & a supervisor who rates his or her
employees too high or too law is doing a disservice to them and to the company. The human
resources department serves a policy making & advisory role.HRM provide the advice &
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assistance regarding the appraisal tool to use, but leave final decisions on procedures to operating
division heads. In some firms human resource prepares detailed forms & procedures for all
departments such as marketing, accounts, financial, operations department. The human resource
team should also be responsible for training supervisors to improve to improve their appraisal
skills for monitoring the appraisal systems effectiveness.

Steps in Appraising performance


Prepare to manage performance by carefully setting objectives.
Assess and give feedback on performance throughout the year.
Review all pertinent documentation before meeting with the employee.
Appropriate place to deliver the appraisal away from interruptions or distractions.
Deliver the appraisal clearly, allowing for the employee to responding a dialogue.
Encourage employees to do more of what they do well and improve where they can. Make
them feel valued.
If performance meet desired performance standards ,rewards for performance

Behaviorally Anchored Rating Scales


Behaviorally Anchored Rating Scales (BARS) are designed to bring the benefits of both
qualitative and quantitative data to the employee appraisal process. BARS compare an
individuals performance against specific examples of behavior that are anchored to numerical
ratings. Developing BARS typically requires five steps. These are:
Write critical incidents: Jobholders or supervisors who know the job to describe
specific critical incidents (illustrations) of effective & ineffective job performance.
Develop performance dimensions: A group of employee peoples the incidents into 05
or 10 dimensions. This dimensions called salesmanship skills.
Reallocate incidents: To verify these groupings have another term of people who also
know the job reallocate the original critical incidents. Cluster definitions & the critical
incidents & must reassign each incident to the cluster it fits best.
Scale the Incidents: This second group then rates the behavior described by the incident
as to how effectively or ineffectively it represents performance on the dimension.
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Develop a finial instrument: Choose about six or seven of the incidents as the
dimensions behavioral anchors.
BARS eight performance dimensions. Researchers develop these dimensions, i.e.
Knowledge & Judgment
Conscientiousness
Skill in Human Relations
Skill in Operation of Register
Skill in Bagging
Organizational Ability of Check stand Work
Skill in Monetary Transactions
Observational Ability

Management by Objectives
Management by objectives (MBO) is a process of defining objectives within an organization so
that management and employees agree to the objectives and understand what they need to do in
the organization in order to achieve them. The essence of MBO is participative goal setting,
choosing course of actions and decision making. An important part of the MBO is the
measurement and the comparison of the employees actual performance with the standards set.
Ideally, when employees themselves have been involved with the goal setting and choosing the
course of action to be followed by them, they are more likely to fulfill their responsibilities.
MBO means-Specific, Measurable, Achievable, and Realistic & Time frame.

Specific

Time
frame

Measurable

MBO
MBO

Achievable

Realistic
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MBO Involves setting specific measurable goals with each employee and then periodically
reviewing the progress made.
1. Set the organizations goals.
2. Set departmental goals.
3. Discuss departmental goals.
4. Define expected results (set individual goals).
5. Performance reviews.
6. Provide feedback

Electronic Performance Monitoring


Electronic appraisals include tools supervisors can use to evaluate workers based on a variety of
criteria and allow the user to rank different categories using an objective system. They can be
part of a company intranet or served on a software program the user fills out. The programs can
reside on one computer in the human resources office or allow users to login from their own
computers, with access terminated once the form is filled out for privacy and security. In its most
primitive form, an electronic performance appraisal can be created and delivered using email.
Electronic performance appraisals allow a company to use one rating system for all employees,
putting all the forms into a main database that allows the business to rank or cross-reference
employees. EPM can also backfire. Electronic performance appraisals are impersonal, especially
if the employee receives the results on her computer with no face-to-face explanation from a
supervisor. Without this personal interaction, a critical rating can seem much worse than the
reviewer intended, or alternatively, a serious problem might not come across that way to an
employee. In this study, low skilled but highly monitored participants did more poorly than did
low-skilled, unmonitored participants.EPM also seem to raise employee stress.

Potential Appraisal Problem

Halo
Effect

Unclear
Standard

Performance
appraisal
Problems

Central
Tendency

Biasness
Leniency
or
Strictnes
s
Fig: Performance Appraisal Problems

Unclear Standards: Most of the appraisal scales are unclear. Standards & traits are
interpreted differently by different people:

Excellent

Good

Fair

Poor

Quantity of
work
Quality of work
Creativity
Integrity
Fig: A Graphic Rating Scale of Unclear Standard
Halo Effect: Occurs when the evaluator perceives one factor as being of paramount
importance and gives a good or bad overall rating to an employee based on this factor. To
minimizing the halo effect, we should appraise all the employees by one trait before
going to rate on the basis of another trait.
Central Tendency: The tendency of a rater to give average ratings. Some raters appraise
all the employees around the middle point of the rating scale and they avoid rating the
people higher or lower level. They follow play safe policy because of answer ability to
management or lack of knowledge about the job and person he is rating or least interest in
his job.
Leniency or Strictness: The giving of undeserved high or low ratings.
Biasness: Tendency to rate employees based on their differences on age, race, sex,
background & other characteristics

Five guidelines for holding Effective Appraisal


Conducting performance appraisals is beneficial to employers because while giving you a fair
idea of how every employee is operating, theyre also a great way of measuring an individuals
potential. Performance appraisal has effective when a organization follow five effective
appraisals. This are:

Know the Problem: Employee learn and understand the potential appraisal problems.

Use the right appraisal tool: Use the right appraisal tool or combination of tools.
Employers choose an appraisals tool based on several criteria:

No

Tool

Advantage

Disadvantage

Graphic Rating Scale

Simple to use

Standards may be
unclear.

BARS

Behavioral anchors is very

Difficult to develop.

accurate.
3

MBO

Tied to jointly agreed upon

Time consuming.

performance objectives.
4

Alternative Ranking

Simple to use

Disagreements
among employees

Forced distribution

End up with a predetermined

Employees appraisal

method

number.

results depend on
employees choice

Fig: Advantage and disadvantage of Appraisal Tool

Keep a Diary: Keep a diary of employees performance over the year. Some attended
a special diary keeping training program.

Get Agreement on a plan: The overriding aim of the appraisal should be to improve
unsatisfactory performance. The appraisals end product should therefore always be
plan for what the employee must do to improve his/her efforts.

Be Fair: This step is most important. Make sure that every appraisal employee give is
fair. Legal problems for an employer are to hold unfair. One relevant case involved
layoffs. Appraisals & the law follow the organization/Company.

Performance appraisals versus Performance Management


Setting work standards, assessing performance & providing feedback to employees to motivate,
correct & continue their performance that is called Performance Appraisal. Other hand,
Performance management is the continuous process of identifying, measuring & developing the
performance of individuals & teams & aligning their performance with the organizations goal.
Three main things distinguish performance management from performance appraisal.

First: Performance management never means just meeting with a subordinate


once or twice a year to review employee performance. It means continuous,
daily or weekly interactions & feedback to ensure continuous improvement.
Second: Performance management is always goal directed. The continuing
performance reviews always involve comparing the employees or teams
performance against goals that specially stem from & link to the companys
strategic goal.
Third: Performance management means continuously revaluating & modifying
how the employee & team get their work done. Depending on the issue, this may
mean additional training, changing work procedures etc.

Basic Building Blocks of Performance Management


Performance managements has follow some basic building blocks or DNA that is Direction sharing means communicating the companys higher level goals
thought the company & then translating these into departmental, team &
individual goal.
Goal alignment means having a process that enables any manager to see the
link between an employees goals & those of his/her department &
company.

Ongoing performance monitoring usually includes using computer based


systems that measure & then email progress & exception reports based on
performances progress toward meeting his or her performance goals.
Ongoing feedback includes both face to face & computer based feedback
regarding progress toward goals.

Coaching & development support should be an integral part of the feedback


process.
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Rewards, recognition & compensation all play a role in providing the


consequence needed to keep the employees goal directed performance on
track.

Recommendation
For Improve the Performance management & Appraisal there are have some of steps to improve
these. After make this assignments we get some of recommendations as a step of Performance
management & Appraisal which are mentioned below:
Planning is required to set the stage for effective appraisals. The majority of subordinates
cited unclear performance standards as a cause of ineffective appraisals.
Use the performance appraisal document periodically, at least quarterly, throughout the
year to assess employee progress.
Training appraisers are essential for achieving better results with performance appraisal.
The training should be designed to improve appraisers capabilities to: observe, conduct
constructive feedback, listen, support, counsel, set objectives and ask appropriate
questions.
Gathering performance information from a variety of sources increases objectivity and
ensures all factors impacting performance are considered. This information should
include objective data like sales reports, call records or deadline reports. Other valuable
information includes: feedback from others, results of personal observation,
documentation of ongoing dialogue, records of any external or environmental factors
impacting performance.
Training may be required to ensure managers feel adequately prepared to effectively
complete all the tasks related to performance management. This is especially the case for
newly promoted supervisors. Managers need to understand human behavior, how to
motivate, how to develop, provide coaching and deal with conflict.

Provide feedback to employees regularly - not just in the annual performance appraisal.
Employees like regular feedback and an effective manager takes time every day for
employee feedback. Managers get more comfortable with feedback, better at giving
feedback, and they nip problems before they become big.
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Conclusion
This assignment has covered the process of managing employee performance. We discussed the
concept of performance management, and noted that it is a continuous process, not a once-a-year
evaluation of performance. We then proceeded through a discussion of the steps in the
performance appraisal process. We answered the question of why we even do them. Next we
looked at what we evaluatetraits, behaviors, and resultsand identified and then discussed
how the evaluation is typically done using various assessment methods and forms. We then
discussed options for that can complete the appraisal, why we would choose one option over
others. After covering the assessment process itself, we then presented some of the common
problems that individual evaluators and organizations encounter with the appraisal process and
how to minimize or even overcome those problems.
Finally, we examined some of the trends in appraisal of employees in the firm, including whether
or not to even complete them, the use of electronic monitoring to evaluate performance, the
change in some organizations to a competency-based performance evaluation process, and,
finally, how to make the process more consistent across raters.

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