Ch.

(2) (A)- GAP ANALYSIS

Ch.(2) (B) PERFORMANCE APPRAISAL

What is Perfor a!"e A##raisa$%
A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. It should not, however, be considered the supervisor's only communication tool. pen lines of communication throughout the year help to make effective working relationships.

!er"berg said # The human inclination to pass judgment can create a serious motivational , ethical , and legal problems in the workplace. $ithout a structured Appraisal system, there is little chance of ensuring a lawful, fair , defensible , and accurate judgment %

&erformance Appraisal started by simply link salary to production # material outcome% 'o, if the employee meets his production target he gets his wage in full. And if the employee meets higher production target, he gets a pay raise. (ut if the employee meets lower production target, he gets a pay cut. !owever simple , this system FAILE& #$!)*%

(cu" motivational theorists have empirically confirmed in the early +,s that even though pay rates were important, they were not the only element that had an impact on employees performance. It was found that other issues such as morale and self esteem could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively -ejected.

.efinition of The /odern Appraisal

&erformance appraisal has been recently defined as 0 a structured formal interaction between a subordinate and a supervisor, that usually takes the form of a periodic interview to e1amine and discuss the subordinate2s performance to identify both weaknesses and strengths as well as opportunities for improvement and skill development.3

$!) &4-5 -/A674 A&&-AI'A8**

The performance appraisal is part of a larger system known as the performance management system. This system is the approach to the management of people using #erfor a!"e' #$a!!e( )oa$s a!( o*+e"ti,es' eas-re e!t' fee(*a". and re"o)!itio! to motivate people to reali"e their ma1imum potential. &erformance appraisal involves the setting of clear 9uantifiable goals and objectives and assessing individual performance against these measures.

T!4 AI/

5 &4-5 -/A674 A&&-AI'A8:

&erformance appraisals are a way to give feedback to staff regarding their performance. The appraisal can be used to encourage good work as well as point out opportunities for improvement. Appraisals can also be used to set measurable targets and objectives to continually spur performance improvement

 T!4 5I-'T AI/ : Increasing Role Clarity &erformance appraisal is a tool for communicating the skills, knowledge and attitudes re9uired for the different job roles. The appraisal criteria acts as a guide to the attitudes and behaviors that ;)< 7 /&A6) would like their staff in their various capacities to have.

 T!4 '47 6. AI/ :

Training and Development &erformance appraisals measure an individual2s performance and can identify opportunities for improvement or learning through training.

T!4 T!I-4. AI/ Compensation and Reward As ;)< 7 /&A6) bonuses and annual increments are
linked to performance, a system for measuring performance in an e9uitable way is necessary. The performance appraisal encourages the use of objective, 9uantifiable criteria to measure performance which will be known to all staff. This system improves fair judgment and the perception of e9uity among staff.

 T!4 5 =-T! AI/:

Career Planning &erformance appraisals will allow ;)< 7 /&A6) to assess the skill set of their e1isting staff to ascertain the career path for each individual.

T!4 5I5T! AI/:

Enhance Corporate Values
;)< 7 /&A6)2s corporate value is the pursuit of innovative 9uality in the areas of C-sto ers' E #$o/ees' So"iet/' Pro(-"ts' 0e"h!o$o)/' Ma!a)e e!t and Fair!ess. These values are translated to performance measures that are used in the appraisal. This enhances awareness of corporate values and promotes behaviors that are in line with ;)< 7 /&A6)2s values

Co!(-"ti!) the Perfor a!"e A##raisa$

BEFORE 01E APPRAISAL

2ee# )oo( re"or(s Both #raise a!( "riti"is Re,ie3 #re,io-s )oa$s 5se #re,io-s )oa$s to e,a$-ate #ro)ress Get i!#-t fro others See. fee(*a". fro others 3ho 3or. 3ith the a##raisee i! areas the/ 3i$$ ha,e o*+e"ti,e .!o3$e()e of a!( )et e4a #$es 3here a,ai$a*$e Pre#are "aref-$$/ Pre#are i! a(,a!"e so that /o- "a! (e$i,er the Pre#are a( i!istrati,e (etai$s a)ree o! a ti e - set asi(e at $east o!e ho-r. A,oi( #ost#o!i!) the a##oi!t e!t' a!( )i,e the e #$o/ee f-$$ atte!tio!. se$e"t a $o"atio! - offi"e or "o!fere!"e roo is *est. as. e #$o/ee to #re#are - as. the e #$o/ee to re,ie3 his6her )oa$s' a!( "o e #re#are( 3ith 7-estio!s. essa)e that /o- i!te!( to are ost ea!i!)f-$ 3he! s-##orte( */ fa"t-a$ e4a #$es


E4#$ai! the

&5RING 01E APPRAISAL

eeti!) a)e!(a

O-t$i!e 3hat is a*o-t to ha##e! for the sessio!

E!"o-ra)e "o

-!i"atio!

$iste! e!"o-ra)e t3o-3a/ "o -!i"atio! as. for i(eas o! ho3 the/ "a! i #ro,e their #erfor a!"e as. for ho3 the/ fee$ /o- "a! he$# the as. for fee(*a". o! the a##raisa$ se"tio!

Sta/ fo"-se(
2ee# the sessio! fo"-se( o! #ast a!( f-t-re #erfor a!"e' se!s-re a)ree e!t ari8e (is"-ssio! iss-es ofte! to

Co

-!i"ati!) short"o i!)s

0he e #$o/ee e4#e"ts a!( sho-$( .!o3 3hat he6she !ee(s to i #ro,e

Be o#e!
Be ,ersati$e a!( o#e!- i!(e( if /o- hear thi!)s that "a-se /o- to "ha!)e /o-r o#i!io!

&5RING 01E APPRAISAL ( "o!t(.)

E,a$-atio! #ro"ess (egin with the positive things that were well done 5ollow this with areas that need improvement and a plan on how to address them 7onclude with a reinforcement of your desire to help the person grow and improve Ma.i!) #ro ises .on2t make promises you do not have control over #e.g. salary increments, promotions, transfers etc% Re,ie3 )oa$s 7oncentrate on a few areas> things that make a difference. Try to encourage continuation and growth in the areas of strength. 'et up 0smart3 goals that will build strength in areas needing attention


A( i!istratio!

AF0ER 01E APPRAISAL

7omplete the paperwork re9uired for the results of the appraisal /ake sure the appraisee signs on the bottom line /ark the calendar on when your ne1t appraisal session with the person will be Fo$$o3--# 5ollow>up on agreements made during the appraisal Lear!i!) -eview what you have learnt about the employee, your records and systems, yourself, the appraisal process and your management style

No3' Let9s ha,e a (is"-ssio! after

$atching these videos

Co

o! Rati!) Errors
a/

, Whi$st "o #$eti!) the a##raisa$ for ' the a##raiser is a(,ise( to e4er"ise "a-tio!' as there *e se,era$ #itfa$$s 3hi"h a/ s.e3 the assess e!t:

1-Halo Effect A #erso! o-tsta!(i!) i! o!e area te!(s to re"ei,e o-tsta!(i!) or *etter tha! a,era)e rati!)s i! other areas as 3e$$' e,e! 3he! s-"h a rati!) is -!(eser,e(

2-Negative Effect A $o3 rati!) i! o!e area /ie$(s $o3er tha! (eser,e( rati!)s for other a""o #$ish e!ts

3-Central Tendency Assi)!i!) a! a,era)e rati!) for a$$ 7-a$ities

4-Confrontation voidance .iscomfort with giving negative feedback

!-Initial Performance -ating an employee based solely on initial impressions of performance

"-Recency -ating an employee based solely on most recent performance which overshadows the entire year2s performance

E$e e!ts of the A##raisa$ For

The appraisal form covers the following key areas: ?Assessment of performance ?4mployee2s growth and development > strengths and areas for improvement ?Training re9uirements ?Achievements ?@oals and targets #for managers and e1ecutives% ?-eview with staff #for managers and e1ecutives% ?-ecommendations ?/anagement review> -eview by 7ountersigning authorities

 4valuation
(a) 0ota$ E,a$-atio! The final score is the average score, calculated as follows Total 'cores ; A,, B

6umber of Cuestions Answered ; D

(*) Gra(i!) 0he a##raisee is the! )ra(e( a""or(i!) to the $e,e$ of his6her #erfor a!"e i! ea"h "ate)or/ a""or(i!) to the fi!a$ s"ore: O-tsta!(i!) Perfor a!"e is e4"e#tio!a$ a!( far e4"ee(s e4#e"tatio!s. Co!siste!t$/ (e o!strates e4"e$$e!t sta!(ar(s i! a$$ +o* re7-ire e!ts. ;er/ Goo( Perfor a!"e is "o!siste!t' a!( e4"ee(s e4#e"tatio!s i! a$$ sit-atio!s. Goo( Perfor a!"e is "o!siste!t. C$ear$/

eets esse!tia$ re7-ire e!ts of +o* .

Fair Perfor a!"e is satisfa"tor/. Meets re7-ire e!ts of the +o*. Nee(s I #ro,e e!t Perfor a!"e is i!"o!siste!t. Meets re7-ire e!ts of the +o* o""asio!a$$/. S-#er,isio! a!( trai!i!) is re7-ire( for ost #ro*$e areas. 5!satisfa"tor/ Perfor a!"e (oes !ot eet the re7-ire e!ts of the +o*. i!i -

Ste#s i! Writi!) Perfor a!"e 0ar)ets a!( Goa$s

Ste# <
Be)i! */ 3riti!) (o3! the *asi" !at-re of the tas. -si!) o!$/ a ,er* a!( a !o-! ' for e4a #$e: =So-r"e !e3 "$ie!ts =I!"rease sa$es ,o$- e =Re(-"e re+e"tio! rates =Co #$ete #$a!!i!) #hase

Ste# 2
I!"$-(e the 7-a!tit/ or 7-a$it/ that tas. ' for e4a #$e: -st *e et */ the #erso! res#o!si*$e for the o!ths

=So-r"e > !- *er of 7-a$ifie( "$ie!ts 3ithi! Y =I!"rease sa$es ,o$- e */ >? */ @-!e

=Re(-"e re+e"tio! rates */ A? */ the e!( of the /ear =Co #$ete the #$a!!i!) #hase */ BC O"to*er

'tep E If necessary, add any procedures or criteria that describe the action to be taken to achieve the target or goal 'ource ; number of 9ualified clients within ) months by actively advertising services to potential clients within the electronics industry 'tep F -eview and refine the target or goal if necessary

0o e!s-re that the o*+e"ti,es are #ro#er$/ (efi!e(, each of

the following 9uestions must be answered positively:> #i% ?.oes the statement of performance targets/goals limit the results to one specific area* #ii%?Are the results well defined in terms of what is e1pected of the job holder* #iii% ?Are the objectives measurable and observable* $ere objectives 9uantified whenever possible* #iv% ?$as a time frame specified* #v% ?Are the performance targets/goals reasonable and within the reach of the job holder*

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88 $I6@ 4;!I(IT%

The purpose of &erf. Apprsl. 5rom the employee viewpoint is four>fold: #A% Tell me what you want me to do* #I% Tell me how well I have done it* #E% !elp me improve my performanceJ #F% -eward me for doing wellJ 5rom the organi"ation's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accounta#ility. #why*%

5or decades it has been known to researchers that #one of the chief causes of organi"ational failure is non>alignment of responsibility and accountability.% 6on>alignment occurs where employees are given responsibilities and duties, but are not held accountable for the way in which those responsibilities and duties are performed. $hat typically happens is that several individuals or work units appear to have overlapping roles.

This 0overlap3 allows each individual or business unit to Kpass the buckK to the others. =ltimately, in the severely non> aligned system, no one is accountable for anything. In this event, the principle of accountability breaks down completely. rgani"ational failure is the only possible outcome.

 A##raisa$ Metho(s In a landmark study, found that the three most common appraisal methods in general use are rating scales #D+B%, essay methods #IDB% and results> oriented or /( methods #AEB%. 7ertain techni9ues in performance appraisal have been thoroughly investigated, and some have been found to yield better results than others.

6o matter which method we choose, we must do the following F items: <- E!"o-ra)e &is"-ssio! -esearch studies show that employees are likely to feel more satisfied with their appraisal result if they have the chance to talk freely and discuss their performance. It is also more likely that such employees will be better able to meet future performance goals.

4mployees are also more likely to feel that the appraisal process is fair if they are given a chance to talk about their performance. This especially so when they are permitted to challenge and appeal against their evaluation

 I> Co!str-"ti,e I!te!tio! It is very important that employees recogni"e that negative appraisal feedback is provided with a constructive intention, #i.e., to help them overcome present difficulties and to improve their future performance.% 4mployees will be less an1ious about criticism, and more likely to find it useful, when the believe that the appraiser's intentions are helpful and constructive. I! "o!trast, other studies have reported that Kdestructive criticismK > which is vague, ill>informed, unfair or harshly presented > will lead to problems such as anger, resentment, tension and workplace conflict, as well as increased resistance to improvement, denial of problems, and poorer performance.

 E> Set Perfor a!"e Goa$s It has been shown in numerous studies that goal> setting is an important element in employee motivation. @oals can stimulate employee effort, focus attention, increase persistence, and encourage employees to find new and better ways to work. The use of goals as a stimulus to human motivation is one of the best supported theories in management. It is also 9uite clear that goals which are K...specific, challenging, and accepted by employees will lead to higher levels of performance than easy, vague goals #such as do your best% or no goals at all.K

 F> A##raiser Cre(i*i$it/ It is important that the appraiser #usually the employee's supervisor% be well>informed and credible. Appraisers should feel comfortable with the techni9ues of appraisal, and should be knowledgeable about the employee's job and performance. $hen these conditions e1ist, employees are more likely to view the appraisal process as accurate and fair. They also e1press more acceptance of the appraiser's feedback and a greater willingness to change.

01E (D) BENEFI0s OF PERF. APPRAISAL: <- Moti,atio! a!( Satisfa"tio! &erformance appraisal can have a profound effect on levels of employee motivation and satisfaction > for better as well as for worse. &erformance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all.

 I> 0rai!i!) a!( &e,e$o# e!t &erformance appraisal offers an e1cellent opportunity > perhaps the best that will ever occur > for a supervisor and subordinate to recogni"e and agree upon individual training and development needs. .uring the discussion of an employee's work performance, the presence or absence of work skills can become very obvious > even to those who habitually reject the idea of training for themJ &erformance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. 5rom the point of view of the organi"ation as a whole, consolidated appraisal data can form a picture of the overall demand for training.

E> Re"r-it e!t a!( I!(-"tio! Appraisal data can be used to monitor the success of the organi"ation's recruitment and induction practices. 5or e1ample, how well are the employees performing who were hired in the past two years* Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. (y following the yearly data related to new hires #and given sufficient numbers on which to base the analysis% it is possible to assess whether the general 9uality of the workforce is improving, staying steady, or declining

D- EMPLOYEE E;AL5A0ION: the need to evaluate #i.e., to judge% is also an ongoing source of tension, since evaluative and developmental priorities appear to fre9uently clash. )et at its most basic level, performance appraisal is the process of e1amining and evaluating the performance of an individual. Though organi"ations have a clear right > some would say a duty > to conduct such evaluations of performance, many still recoil from the idea. To them, the e1plicit process of judgment can be dehumani"ing and demorali"ing and a source of an1iety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same timeL it must be one or the other. (ut there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced

(E) Co

o! A##raisa$ Mista.es

<- Fear of Fai$-re There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect badly upon them also, since they are usually the employee's supervisor. /any appraisers have a vested interest in making their subordinates Klook goodK on paper. $hen this problem e1ists #and it can be found in many organi"ations%, it may point to a problem in the organi"ation culture. The cause may be a culture that is intolerant of failure. In other words, appraisers may fear the possibility of repercussions > both for themselves and the appraisee

8ongenecker argues that accuracy in performance appraisal is impossible to achieve, since people play social and political games, and they protect their own interests.M K6o savvy manager...K, says 8ongenecker, K... is going to use the appraisal process to shoot himself or herself in the foot.0N 5udging the results has many motives. 'ome can be less admirable and some can be devious: the appraiser may fudge to avoid the possibility of an unpleasant confrontation, the appraiser may fudge to hide employee difficulties from senior managers, the appraiser may fudge in order to punish or reward employees.

 I> @-() e!t A,ersio! /any people have a natural reluctance to Kplay judgeK and create a permanent record which may affect an employee's future career. This is the case especially where there may be a need to make negative appraisal remarks. Training in the techni9ues of constructive evaluation #such as self>auditing% may help. Appraisers need to recogni"e that problems left unchecked could ultimately cause more harm to an employee's career than early detection and correction

B- FEE&BAC2-SEE2ING It2s a game employees play. It occurs where a poor performing employee regularly seeks informal praise from his or her supervisor at inappropriate moments. ften the feedback>seeker will get the praise they want, since they choose the time and place to ask for it. In effect, they KambushK the supervisor by seeking feedback at moments when the supervisor is unable or unprepared to give them a full and proper answer.

The game seems innocent enough until appraisal time comes around. Then the supervisor will find that the employee recalls, with perfect clarity, every casual word of praise ever spokenJ # what to do**%

This places the supervisor in a difficult bind. 4ither the supervisor lied when giving the praise, or least, misled the employee into thinking that their performance was acceptable #in fact, this is the argument that feedback>seekers will often make%. /aking supervisors aware of the game is usually sufficient to stop it. They must learn to say, when asked for casual praise, KI can't talk about it now... but see me in my office later.K This puts the supervisor back in control of the appraisal process

F> A##raiser Pre#aratio!

The bane of any performance appraisal system is the appraiser who wants to Kplay it by earK. 'uch attitudes should be actively discouraged by stressing the importance and technical challenge of good performance appraisal. &erhaps drawing their attention to the contents of this web site, for e1ample, may help them to see the critical issues that must be considered.
D> E #$o/ee Parti"i#atio!

4mployees should participate with their supervisors in the creation of their own performance goals and development plans. /utual agreement is a key to success. A plan wherein the employee feels some degree of ownership is more likely to be accepted than one that is imposed. This does not mean that employees do not desire guidance from their supervisorL indeed they very much do.

+> Perfor a!"e Ma!a)e e!t

ne of the most common mistakes in the practice of performance appraisal is to perceive appraisal as an isolated event rather than an on going process. 5re9uent mini>appraisals and feedback sessions will help ensure that employees receive the ongoing guidance, support and encouragement they need. f course many supervisors complain they don't have the time to provide this sort of ongoing feedback. This is hardly likely. $hat supervisors really mean when they say this is that the supervision and development of subordinates is not as high a priority as certain other tasks. In this case, the organi"ation may need to review the priorities and values that it has instilled in its supervisory ranks.

NOW' LE0S 3at"h the "$i# a!( (o the E4"er"ise

NOW ' LE0S RE;IEW W1A0 WE 1A;E CO;ERE& SO FAR

Wh/ A##raisa$s Are I #orta!t

e i"e ni" gn cog eco -e ts ents men hm lish plis mp com acco ac ss ress gre rog pro ep de uid @ui @ ce n a rm o rf e p ce ve n ro a p rm Im o rf e p ve ro Imp

Why Appraisals Are Important

-eview performance 'et goals Identify areas for improvement .iscuss career advancement

Appraisal (enefits 5or the rgani"ation

.ocumentation 4mployee development 5eedback 8egal protection /otivation system

Appraisal 5orms
.efine performance e1pectations .escribe measurement tools =se a rating system 'et measurable goals 7over specific e1amples

/easure &erformance
/easurement systems need to be: 'pecific 5air

Clear Useful

7onsistent

/easure &erformance #cont.%

'ystems can be: 6umerical Terms /anagement by bjectives #/( % (ehavior oriented

.ocument &erformance
(e objective

Include all employees &rovide complete and accurate information .ocument regularly

'et @oals
(ased on job re9uirements -ealistic /easurable bservable &rioriti"ed 7hallenging

4mployee Input
4mployees take an active role:
'etting goals .esigning action plans Identifying strengths and weaknesses

4mployees participate in the performance appraisal meeting

&reparation
4mployees: -eview performance Think about new goals

&reparation #cont.%
'upervisors: -eview performance 7omplete written appraisal Think about new goals 'chedule time and place

'tart the /eeting

8ay out agenda Talk about money 4ncourage input @ive good news first

&resentation Tips
5ocus on the professional @ive objective e1amples Invite response 8isten actively 7reate 0we3 mentality

.uring the /eeting

-eview performance: (ased on previous goals 6oting strengths and accomplishments Identifying areas for improvement

4nd the /eeting

4ncourage good performance 8ay out action plan 7ommunicate outcome of goals not met 7onfirm understanding

Is 0his A""e#ta*$e% Yes or No

An employee comes to an appraisal meeting without having identified whether past performance goals have been met. An employee comes to an appraisal meeting with a goal for the next period that you do not agree with. You have an appraisal meeting with an employee without having completed your written appraisal of the employee using your organization s form.

Is This Acceptable? Yes or No (cont.)

!uring an appraisal meeting" you try to listen intently to what the employee is saying. You professionally notify an employee during an appraisal meeting that his or her performance is not up to par and that it better improve #soon.$

Oey &oints to -emember

You must conduct ob%ective appraisals on a scheduled basis Appraisals tell employees how they re doing and how they can improve Appraisals help create a system of motivation and rewards based on performance