Ch 8 Performance Appraisal.pdf

SUMMARY CHAPTER 8 Performance Appraisal Performance appraisal is an objective assessment of the performance of employee against well-defined benchmarks. An employee is assessed on various factors such as job knowledge, quality and quantity of output, initiatives taken, leadership qualities displaye...

SUMMARY CHAPTER 8 Performance Appraisal Performance appraisal is an objective assessment of the performance of employee against well-defined benchmarks. An employee is assessed on various factors such as job knowledge, quality and quantity of output, initiatives taken, leadership qualities displayed by him, critical incidents handled successfully etc. Apart from past performance, present organizations also judge the future performance or potential of the employee in performance appraisal. Importance of performance appraisal organization and individual employee point of view is discussed. Performance appraisal process consists of objective of the appraisal such as new employee to be considered to give permanent job after probation period, improve performance, merit pay, promotion etc., establish job expectations by giving targets, design appraisal program, appraise the performance, and store/ archive performance appraisal data. Annual performance appraisal cycle involves self- appraisal, preparation for the performance review, the meeting of performance review regarding progress on tasksextent of achievement of targets, development initiatives taken by employee, variance in terms of delays, requisite quality, shortfall, analysis of causes of delay, problems faced, solutions, action plan for future training etc. and completion of performance appraisal form Current methods of performance appraisal such as rating scales using job performance criteria such as initiative taken, quality and quantity of work done, attendance, cooperation with colleagues and superiors, attitude etc., checklist having statements on the traits of employee and his job prepared in two columns “yes’ or “no” and the rater ticks and totals. Forced distribution curve method- bell shaped curve method assuming that 10% of Employees are excellent, 20% above average, 40% average, 20% below average and 10% are poor in performance. Critical incident method focuses on critical behaviors of employees when they do the job making all the difference between effective and no-effective performance of a job. Behaviorally anchored rating scales is a technique that combines rating scale and critical incidents method consisting of predetermined critical areas of job performance or sets of behavioral statements and assessing them. P.1 Internal Essay method is the rater’s overall impression on certain parameters on employee’s job performance. Ranking method- superior ranks his subordinates in the order of their merit, stating from the best to worst. Some modern performance appraisal methods used by renowned organizations are: Assessment Centers involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competences for higher responsibilities in future. Human Resources Accounting Method tries to find relative worth of human resources as assets in terms of money. 360-degree feedback method is also known as ‘multi-rator’ feedback: it has four integral components such as self-appraisal, superior’s appraisal, subordinate’s appraisal, and peer appraisal., management by objectives. Mainly useful for managers to assess their leadership and managing styles. Management by Objectives- create empowered employees who have clarity of roles and responsibilities expected from them. SMART Goals i.e., specific, measurable, achievable, realistic and time bound goals. Also, team performance appraisal and rank and yank method is discussed. Problems faced in performance appraisal- halo/horn effect, rater effect, initial efforts and recent efforts effects, past spillover effect, status effect, leniency or severity and tendency to play it safe are discussed. How to solve such problems of appraiser is taken care by human resource management giving them training is discussed. P.2 Internal