Its year ending, how did you perform your job?
Did you meet your target?
How did you get rated in the appraisal?
These are a few questions that everyone faces!
Now, what is performance management?
Performance management is a process through which employees and managers work together to strategize, observe, and review the work goals and overall contribution of a worker to the organization. Performance management is a much broader, complex management function of human resources, as it includes activities such a setting common goals, a constant review of significant process and regular communication, feedback and review for better performance, execution of employee development programs, and achievements.
According to Dessler, “performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organizational goals.”
Objectives of performance management
- To encourage employees to achieve higher job performance standards.
- To help workers in identifying the knowledge and skills desired to carry out the tasks efficiently, as this would lead to the right task been carried out.
- To boost employee productivity by promoting employee motivation and empowerment along with the implementation of an effective reward system.
- To promote a two- where conversation system between managers and employees to clarify expectations about roles and accountability. The organization aims and delivers regular and transparent feedback to increase employee performance and ongoing coaching.
Performance appraisal is a method of evaluating the behavior of employees in the workplace, evaluating the quantitative and qualitative aspects of job performance in terms of output.
According to Dale Yoder”, performance appraisal includes or formal procedures used to evaluate contributions of group members in a working organization. It as on employees”.
Objectives of performance appraisal
Compensation decisions: it can serve as a basis for pay rises. Performance appraisal helps managers to identify employees who are performing at or above expected live compensate for merits.
Promotion decisions: individuals performing at their best are rewarded for promotion.
Training and development programs: performance appraisal can help employees to self assess their skills, any training requirements to improve skills for better performance.
Transfers: unsatisfactory performance can call for transfers, the motions, and discharge due to the economic conditions of the organization. It is greatly influenced by appraisals.
Feedback: performance appraisal enables the employee and employer to know how well the individual is performing.
Self-improvement: do discussions with the individual employee, a line manager can find out why they perform at lower levels, which steps can be initiated to improve their performance. The discussion between senior and subordinate give chance to the Employees for introspection and enhance their output to the organization.
Parties conducting appraisal
The appraiser at the evaluator can be a person who has complete knowledge about job content, parameters to be judged, standards of job contents, and also a person who observes the employee while performing a job. The surprising person must prepare reports and make judgments without any bias.
Surprises can be:
Methods of Performance Appraisal
Individual evaluation techniques
Confidential report: It is created by an immediate superior at the end of a year in subjective form.
Essay evaluation: Rater is asked to express strong as well as weak points of the employee’s behavior, his general planning, organizing abilities, and attitude towards the job.
Critical incident technique: Prepare a list of events that are critical to represent the outstanding for the Poor behavior of the employees on the job.
Checklists: It represents the simplest form of a list of descriptive statements about the employee’s behavior on the job. The rating score from the weighted checklist helps the manager in evaluating the performance to be good or bad for moderate.
Graphic rating scale: Under this method, kills are established in the form of very good, good, average, poor, and very poor. Then several specific job-related factors are and on these scales. Factors to be rated R personal characteristics like leadership, creativity, initiative, etc.
Forced choice method: This method requires the narrator to select the most descriptive statement in each pair of statements about the employee being evaluated.
Behaviorally anchored rating scale (BARS): It is also known as the behavioral Expectation sale. It is a combination of the rating scale and critical incident techniques. Critical incidents such as anger statements on the scale and the rating from usually contain 6 to 8 defined performance dimensions. Evaluators rate each statement on a 1 to 7 or 1 to 9. Rating of 1 represents ineffective performance and the top scale value reflects effective performance. Means and standard deviations are calculated on the scale value assigned to each incident.
Multi-person evaluation techniques
In these types of techniques, one employee is evaluated in comparison to another. These are also the modern methods of Appraisal.
Ranking method: The ranking of each employee in a workgroup is done against that of the other employees. The employee is ranked according to the performance in the group. And this method, the evaluator is asked to rate employees is from highest to lowest on some overall criterion.
Paired comparison: In this method, each worker is compared with all other employees in the group for every trait.
Management by objectives: It is also termed a goal-setting approach. The essential features of this method are the mutual establishment of job goals. Superior discusses key result areas with the subordinates, checkpoints are established for the evaluation, superior and subordinates meet the target mutually at half-yearly or yearly.
Field review method: A trained, skilled representative of the HR department goes into the field and helps line supervisors with the ratings of their respective subordinates. HR specialist requests the superior to provide information about employee performance. Based on this information, HR experts arrange a report which is sent to the administrator for review, changes, approval, and discussion with the employee who is being rated on the standardized objective forms.
Forced distribution method: The rater is asked to rate the employee on the pre-determined distribution scale between two extremes good or bad. The two criteria used for rating a job performance and promotability. There are no descriptive statements.
Problems of performance appraisal
Halo effect: It occurs when one aspect of treatment or the employee affects the rater’s evaluation of the other performance attributes.
Horn effect: The rater’s bias is directed towards one negative quality of the Rater, he is being rated harshly for his one negative trait.
Stereotyping: Generalizing behavior of a person based on the mental picture already set in the mind of the appraiser.
Lack of rater’s preparedness: Appraiser is not properly trained to carry out an appraisal. Insufficient time, lack of skill, lack of self-confidence, and fundamentals can be some of the reasons.
Poor appraisal forms: The rating scale may be quite vague and unclear. The important performance parameters, too lengthy forms can difficult and confusing.
Essentials of effective performance appraisal system
- A good appraisal system should provide reliable valid data that can be used to read the employee on a specified parameter.
- Performance appraisal form, process, data analysis techniques should be standardized
- They must comply with the provisions of various acts relating to labor and should be easy to understand.
- It should be ensured that the other prizes are honest and rational in their judgments and behavior.
- The top management must build trust among employees on the appraisal system to be a fair and error-free process.