Appraising and Managing Performance PDF

CHAPTER 9 Appraising and Managing Performance Presented by: Aericka Bianca Lobarbio Janelle Aira De Ungria Ghil Anne Cabreros  Employee Performance Appraisal Employee Performance Appraisal is a key aspect of human resource management where an employee's past or cu...

CHAPTER 9 Appraising and Managing Performance Presented by: Aericka Bianca Lobarbio Janelle Aira De Ungria Ghil Anne Cabreros  Employee Performance Appraisal Employee Performance Appraisal is a key aspect of human resource management where an employee's past or current job performance is assessed. It involves regular reviews of their productivity based on predefined criteria and organizational goals, serving as a record to inform future  The Purpose of Performance Appraisal A central reason for the utilization of performance appraisal is measuring, correcting, and improving employee work performance. It can also be used as a basis for employment. decisions such as promotion,However, termination, transfers there are twoand demotion. basic reasons for the use of a performance appraisal that are favorable to both organizations and employees: 1.As an administrative tool 2.As a development-oriented tool  As an Performance appraisal review is relevant to administrative tool other HR roles specifically in promotions, demotions, and re-assignments. It is also essential to human resource planning especially in anticipating the changing needs relating to the acquisition and placement of employees. Above all, results of the performance appraisal are used to synchronize practically all HRM practices like designing  As development- oriented Performance tool reviews are valuable for providing feedback on employee performance, identifying strengths and weaknesses, and recognizing training needs. They allow organizations to leverage employee strengths, address weaknesses, and set goals to improve performance. The appraisal system fosters discussions between employers and employees to overcome challenges and achieve higher performance levels.  FUNDAMENTAL POINTS TO CONSIDER IN CREATING PERFORMANCE CRITERIA Relevance to company strategic goals- This is the degree to which performance criteria relate to organizational goals. This means that if the developmental strategy of a certain company is set in a standard that 90% of training activities are accomplished in a year, then it is relevant for the training specialist to comply with the standard in response to the set criteria  Failure to include all important aspects of a performance standard- leads to criterion deficiency. If only one measure, like quality of work, is used without considering other relevant factors, the performance standard becomes less relevant and effective. Inclusion of a "should not have been there" criterion- means using irrelevant measures that unfairly influence performance results. For example, a manager can't assess "productivity output" for  Reliableness-refers to the consistency and stability of performance standards over time. It can be measured by comparing ratings from the same or different evaluators. For example, two supervisors evaluating the same employee would have their assessments compared to check the reliability of the evaluation.  Evaluating Employee If Performance there are numerous criteria to measure performance, there are also lots of employees subject to appraisal. Evaluations is typically done by manager degree departmental heads, self, peers, and subordinates, and at times, through a 360-degree feedback. Each is approximately helpful for both administrative and developmental reasons. 1. Managers and Department Heads This has been the customary way of employee evaluation. In this approach, the managers or department heads rate the level of an employee's performance based on certain traits that present the accomplishments and 2. Self-Appraisal shortcomings of the employee. This method is otherwise referred to as self- evaluation. It is done by the employee himself who fills up an appraisal instrument to assess his or her own job performance. Then, a feedback session transpires between the manager and the employee, focusing on performance goals and career 3. Subordinate Appraisal This is a form of appraisal done by a subordinate to his supervisor. This is also referred to as upward appraisal. This method has been practiced by most companies to provide managers an idea on how subordinates perceive their leadership style, as well as their interpersonal 4. Peer Appraisal and conceptual skills. This method is done by an employee to another.employee. In peer appraisal, fellow workers complete the evaluation form then submit to the supervisor as basis for final appraisal. Although this method is seen as an exact way of determining worker behavior, there is a risk that those receiving low ratings might retaliate 5. 360-degree Assessment This appraisal technique gathers feedback from peers, colleagues, and supervisors. It may also involve gathering different points of view from outside sources such as the customers, investors, suppliers, and other stakeholders who are directly communicating and interacting with the employee. PERFORMANCE APPRAISAL METHODS Appraisal methods have been designed to gauge the quality of employee performance. However, some methods maybe effective to some companies only, and may not be applicable to others. Therefore, there is no one best way of appraising performance except as it applies to the specific needs of Character Traits Method This type of appraisal method is easy to create and grade, but oftentimes, highly subjective. This method could be an edge for employees who are more demonstrative, innovative, and are rewarded for work that requires such traits, but puts to a disadvantage employees who do not possess these characteristics. Each person has a distinguishing character trait often labeled as either good or bad. Good traits include integrity, loyalty, and 1. The Graphic Rating Scale - this method evaluates the extent to which an individual possess certain traits or behavior that are useful in achieving outstanding performance. The ratings should conform to the scale which describes the trait or behavior being appraised. For example, "Teaching Strategy" rating scale should be "Excellent, Very Good, Good, Fair and Poor" rather than rating it " Very High Extent, High Extent, Moderate Extent, At the bottom of rating scale is Slight Extent, Very Least Extent." "remarks" section to describe the behavior corresponding to the scale 2. Mixed Standard Rating Scale this method is a newer version of the graphic rating scale. In contrast with other rating scales, the evaluator is furnish graphic performance dimensions showing outstanding, average, and bad performance. Descriptive statements in a mixed standard are randomly combined, thus reducing rate biases by making it less obvious which item reflects best or worst performance 3.Forced Choice Method - This is a form of appraisal in which the evaluator is provided with questions in multiple choice format, from which he is required to choose a single option in rating the employees. The list of questions include only favorable or unfavorable behaviors to choose from. 4. Written Report Method - This is also known as the essay method. Here, the evaluator prepares a written report that details the employee's strengths and weaknesses in essay form and ultimately offers recommendations for improvement  Behavior-Based Method One great stumbling block of a character trait method is its tendency to be unclear and biased. Behavior-based appraisal was designed to especially outline which conduct or attitude is permissible and not permissible at work. 1. Critical Incident Appraisal Method - In this method, the manager keeps a record of exceptionally good and unacceptable employee behaviors. 2 Behavioral Checklist Method - From old times, this method has been used by evaluators to rate behavioral aspects that are relevant to the employee's job. It is done by putting a check mark on the statement describing the employee's 3. Behaviorally Anchored Rating Scale - This is a type of appraisal technique whose rating scales are behaviorally anchored on a sequence of statements that are descriptive of the employee's behavior. It is done by listing all areas of relevant performance behavior and recorded by the manager/evaluator.  Output-Based Method Instead of focusing at the character traits or the behaviors of employees on the job, most organizations assess employees' performance through the outputs they accomplished at work. Supporters of the output-based method claim that this method is unbiased and more motivating for employees. Additionally, output-based appraisal usually provide employees the control for their outputs, and at the same time giving them the freedom to choose the method they want to use to achieve them (in a predetermined limit). This is promoting empowerment to employees. 1.Production-Based - A performance review technique based on production is often a well-liked option for those in outcomes-based functions. 2.Management By Objectives - Management by Objectives or popularly known as MBO describes the particular purpose or objective of an organization that employers can convey to employees, then decide on how to achieve each objective. Planning and setting of organizational goals flow from top to bottom, and are transformed into personal goals.  CHOOSING THE BEST PERFORMANCE APPRAISAL METHOD Performance reviews are here to stay until a foreseeable future time. It is because regardless how the appraisal is managed, the fact remains that all employees need a friendly feedback or "conference" mechanism to inspire and guide them toward the improvement of their job performances. However, pinpointing what is the best method depends on your company's short- and long- term goals and  Table 7: Summary of Positive and Negative Points of Various Appraisal Methods Appraisal Method Advantages Disanvantages Prone to rating flaws Includes relevant dimensions Not advisable for employee counseling CHARACTER TRAITS Cost-efficient Not helpful for growth and advancement Simple to use decisions Makes use of specific job performance indicators Takes considerable time to complete Helpful in providing performance feedback BEHAVIOR-BASED Appropriate for compensation and benefit Expensive to prepare Errors are more likely to happen decisions Pleasing to workers and superiors Agreeable to workers and managers Longer time to complete Tie employee and organizational goals OUTPUT-BASED Ideal for remuneration and benefits May promote a shorter outlook May include irrelevant job standards decisions  Performance Evaluation Preferably, performance evaluation must be error-free. Errors However, it is often long way from being accurate, resulting in appraisal errors. Typical rating errors include the following: 1. Halo Effect - This error occurs when a supervisor gives an all-positive rating on the basis of one or more traits and characteristics of an employee although the performance is below standard; thus ignoring certain negative traits. 2. Horn Error - As opposed to halo effect, this error occurs when a supervisor sees only a particular negative trait of an employee and give the employee a low rating on all areas 3. Central Tendency - It is rating the performance of all or almost all employees as average, notwithstanding the level of performance of the employees. This is done to avoid possible conflict between the supervisor and employees. 4. Strictness/Leniency - This error occurs when a supervisor rates employee performance as either too low or too high. 5. Bias - The likelihood that the supervisor negatively rates employee performance on the basis of age, sex, race, and other personal characteristics.  Employee Appraisal Interview The employee appraisal interview is one of the means to assure good working environment and professional development. It is a friendly dialogue between an employee and the manager or supervisor. In an appraisal interview, the employee gets the chance to improve his efficiency and change work manners. Both employee and manager talk about employee performance and the major aspects of employee development. Thank You So Much Group 9 | Appraising and Managing Performance