Unit7:PerformanceAppraisal Structure:

7.1 Introduction Objectives 7.2 ConceptandNeedofEmployeeReview SAQs 7.3 ConceptofPerformanceAppraisal SAQs 7.4 TypesofAppraisalMethod 7.4.1 IndividualevaluationMethods 7.4.2.MultiplepersonEvaluationMethods 7.4.3.360DegreeAppraisal 7.4.4.MBO SAQs 7.5 7.6 7.7 7.8 BenefitsofPerformanceAppraisal Summary TQs Answersto SAQsandTQs

7.1Introduction In many organizations, two evaluation systems exist side by side: the formal and the informal. Supervisors often think about how well employees are doing this is the informal system.Itis influencedbypolitical and interpersonal processes so that employees who are likedmorethanothershaveanedge.Formalperformanceevaluationisasystemsetupby theenterprisetoregularlyandsystematicallyevaluateemployeeperformance.Thisunitdeals with the methods and techniques of evaluating the performance of employees and the significanceofrewardsandincentives.

Objectives: Afterstudyingthisunit,youwillbeableto:

 Understandperformanceevaluationandrecognition. Techniquesandmethodsofevaluation. Significanceofrewardsandincentives,promotions.

0 Conceptof 360 Appraisal.

7.2ConceptandneedofEmployeeReview Performanceevaluationisthepersonnelactivitybymeansofwhichtheenterprisedetermines theextenttowhichtheemployeeisperformingthejobeffectively.Generallyspeaking,the personnel specialists design the performance evaluation system, train the line managers in theuseofthesystems,andmaintaintherecords.Thelinemanagersdotheevaluationofthe employeesand,inmanycases,communicatetheresultstotheiremployees.Forperformance evaluationtobemorethanayearlypaperworkexercise,topmanagementmustencourageits useanduseittomakerewarddecisionssuchaspromotions.

SelfAssessmentQuestionsI 1. _____________________isthepersonnelactivitybymeansofwhichtheenterprise determinestheextenttowhichtheemployeeisperformingthejobeffectively. 2. The_______________dotheevaluationoftheemployees 3. ______________________mustencourageitsuseanduseittomakerewarddecisions suchaspromotions

7.3ConceptofPerformanceAppraisal

Research shows that performance management, when done correctly, can affect corporate performance and the bottom line. Despite the importance of performance appraisal, few organizationsclearlydefinewhatitisthattheyaretryingtomeasure.Todesignasystemfor appraising performance, it is important to first define what is meant by the term work performance. Although apersons jobperformance dependsonsome combination of ability, effort and opportunity, it can be measured in terms of outcomes or results produced. Performance is defined as the record of outcomes produced on a specific job function or activityduringaspecifictimeperiod.ForexampleatrainerworkingfortheWorldBankwas evaluated on her organization of presentation, which was defined as the presentation of

trainingmaterialinalogicalandmethodicalmanner.Theyextenttowhichshewasableto makesuchorderlypresentationwouldbeonemeasureofoutcomesrelatedtothatfunction. ASalesrepresentativecouldhavesomemeasureofsalesasanoutcomeforaprimaryfunction of that job. Customer service would have very different outcome measures for defining performance.Collageprofessorthattypicallywereevaluatedonthreegeneralworkfunction: teaching, research and service. Performance in each of these three areas is defined with differentoutcomemeasures. Performanceonthejobasawholewouldbeequaltothesum(oraverage)oftheperformance onthejobfunctionsoractivities.Forexample,theWorldBankidentified8jobfunctionsfor its trainers (example, use of relevant examples, participant involvement, and evaluation procedures). The function has to do with the work that is to be performance and not the characteristicsofthepersonperforming.Unfortunatelymanyperformanceappraisalsystems confusemeasuresofperformancewithmeasuresoftheperson.Thedefinitionofperformance referstoasetofoutcomesproducedduringacertaintimeperioditdoesnotrefertothetraits, personacharacteristicsorcompetenciesoftheperformer. SelfAssessmentQuestionsII 1. Todesignasystemforappraisingperformance,itisimportanttofirstdefinewhatis meantbytheterm_____________________. 2. Performanceisdefinedastherecordofoutcomesproducedonaspecificjobfunctionor activityduring.............. 3. Performanceonthejobasawholewouldbeequal tothesum(oraverage)of the............................................

7.4TypesofAppraisalMethods Whenithasbeendecidedwhowillevaluate,when,andonwhatbasis,thetechniquetobe used will be selected. A number of approaches will be described here. There are several ways to classify these tools. The three categories used here will be individual evaluation methodsmultiplepersonevaluationmethodsandothermethods.

7.4.1IndividualevaluationMethods There are fiveways to evaluate an employee individually. In these systems, employees are evaluatedoneatatimewithout directly comparingthemwithotheremployees. Graphic rating scale: Themost widelyusedperformance evaluation technique is a graphic rating scale. In this technique, the evaluator is presented with a graph and asked to rate

employees on each of the characteristics listed. The number of characteristics rated varies fromafewtoseveraldozen.Afactoranalysisoftheresultsindicatesthatonlytwotraitswere beingrated:qualityofperformanceandabilitytodothepresentjob. Theratingscanbeinaseriesofboxes,ortheycanbeonacontinuousscale(09)orso.Inthe latter case, the evaluator places a check above descriptive words ranging from none to maximum.Typically,theseratingsarethenassignedpoints.Forexample,outstandingmaybe assignedascoreof4andunsatisfactoryascoreof0.Totalscoresarethencomputed.Insome plans,greaterweightsmaybeassignedtomoreimportanttraits.Evaluatorsareoftenaskedto explaineachratingwithasentenceoftwo. Forced choice: The forcedchoice method of evaluation was developed because other methods used at the time led to a preponderance of higher ratings, which made promotion decisions difficult. In forced choice, the evaluator must choose from a set of descriptive statementsabouttheemployee.Thetwo,three,orfourstatementitemsaregroupedinaway thattheevaluatorcannoteasilyjudgewhichstatementsapplytothemosteffectiveemployee. Typically, personnel specialists prepare the items for the form, and supervisors or other personnelspecialistsratetheitemsforapplicabilitythatis,theydeterminewhichstatements describeeffectiveandineffectivebehaviour.Thesupervisorthenevaluatestheemployee.The Personnel Department adds up the number of statements in each category (for example, effectivebehaviour),andtheyaresummedintoaneffectivenessindex.Forcedchoicecanbe usedbysuperiors,peers,subordinates,oracombinationoftheseinevaluatingemployees. Essayevaluation:Intheessaytechniqueofevaluation,theevaluatorisaskedtodescribethe strongandweakaspectsoftheemployee'sbehaviour.Insomeenterprises,theessaytechnique is the only one used in others,the essay iscombined with another form, such as a graphic ratingscale.Inthiscase,theessaysummarizesthescale,elaboratesonsomeoftheratings,or discusses added dimensions not on the scale. In both of these approaches the essay can be openended,butinmostcasesthereareguidelinesonthetopicstobecovered,thepurposeof theessay,andsoon.Theessaymethodcanbeusedbyevaluatorswhoaresuperiors,peers,or subordinatesoftheemployeetobeevaluated. Management by objectives: Another individual evaluation method in use today is Management by Objectives (MBO). In this system, the supervisor and employee to be evaluated jointly set objectives in advance for the employee to try to achieve during a specified period. The method encourages, if not requires, them to phrase these objectives

primarily in quantitative terms. The evaluation consists of a joint review of the degree of achievement of the objectives. This approach combines the superior and selfevaluation systems. Critical incident technique: In this technique,personnel specialists and operating managers preparelistsofstatementsofveryeffectiveandveryineffectivebehaviourforanemployee. These are the critical incidents. The personnel specialists combine these statements into categories, which vary with the job. Once the categories are developed and statements of effective and ineffective behaviour are provided, the evaluator prepares a log for each employee. During the evaluation period, the evaluator "records examples of critical (outstandingly good or bad) behaviours in each of the categories, and the log is used to evaluate the employee at the end of the period. It is also very useful for the evaluation interview,sincetheevaluatorcanbespecificinmakingpositiveandnegativecomments,and itavoidsrecencybias.Thecriticalincidenttechniqueismorelikelytobeusedbysuperiors thaninpeerorsubordinateevaluations. Checklists and weighted checklists: Another type of individual evaluation method is the checklist.Initssimplestform,thechecklistisasetofobjectivesordescriptivestatements.If theRaterbelievesthattheemployeepossessesatraitlisted,theRatercheckstheitemsifnot, theRaterleavesitblank.Aratingscorefromthechecklistequalsthenumberofchecks. Amorerecentvariationistheweightedchecklist.Supervisorsorpersonnelspecialistsfamiliar withthejobstobeevaluatedpreparealargelistofdescriptivestatementsabouteffectiveand ineffective behaviour on jobs, similar to the critical incident process. Judges who have observedbehaviouronthejobsortthestatementsintopilesdescribingbehaviourthatisscaled fromexcellenttopoor(usuallyona711scale).Whenthere isreasonableagreementonan item (for example, when the standard deviation is small), it is included in the weighted checklist.TheweightistheaveragescoreoftheRaterstothechecklist'suse. ThesupervisorsorotherRatersreceivethechecklistswithoutthescores,andtheycheckthe itemsthatapply,aswithanunweightedchecklist.Theemployee'sevaluationisthesumof thescores(weights)ontheitemschecked.Checklistsandweightedchecklistscanbeusedby evaluatorswhoaresuperiors,peers,orsubordinates,orbyacombination. Behaviourallyanchored ratingscales:Anothertechnique whichessentially is basedon the criticalincidentapproachisthebehaviourallyanchoredratingscale(BARS).Thistechniqueis

alsocalledthebehaviouralexpectationscale(BES).Thisisanew,relativelyinfrequentlyused technique. Supervisorsgivedescriptionsofactuallygoodandbadperformance,andpersonnelspecialists grouptheseintocategories(fivetotenistypical).Aswithweightedchecklists,theitemsare evaluated by supervisors (often other than those who submitted the items). A procedure similartothatforweightedchecklistsisusedtoverifytheevaluations(outstandinglygood,for example)withthesmalleststandarddeviation,hopefullyaround1.5ona7pointscale.These itemsarethenusedtoconstructtheBARS. SelfAssessmentQuestionsIII 1. In_______________,theevaluatormustchoosefromasetofdescriptivestatements abouttheemployee 2. Inthe________________ofevaluation,theevaluatorisaskedtodescribethestrong andweakaspectsoftheemployee'sbehaviour. 3. In________________,personnelspecialistsandoperatingmanagerspreparelistsof statementsofveryeffectiveandveryineffectivebehaviourforanemployee.

7.4.2MultiplepersonEvaluationMethods The techniques described above are used to evaluate employees one at a time. Three techniquesthathavebeenusedtoevaluateanemployeeincomparisonwithotheremployees beingevaluatedarediscussedinthissection. Ranking:Inrankingmethod,theevaluatorisaskedtorateemployeesfromhighesttolowest on some overall criterion. This is very difficult to do if the group of employees being comparednumberover20.Itisalsoeasiertorankthebestandworstemployeesthanitisto evaluate the average ones. Simple ranking can be improved by alternative ranking. In this approachtheevaluatorspickthetopandbottomemployeesfirst,thenselectthenexthighest andnextlowest,andmovetowardsthemiddle. Pairedcomparison:Thisapproachmakestherankingmethodeasierandmorereliable.First, the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order, so that each person is compared to all others to be evaluated. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison. Typically the criterion is overall ability to do the present job. The number of

timesapersonispreferredistallied,andthisdevelopsanindexofthenumberofpreferences comparedtothenumberbeingevaluated. These scores canbe converted into standard scores by comparing the scores to the standard deviation and the average of all scores. This method can be used by superiors, peers, subordinates,orsomecombinationofthesegroups. Forced distribution: The forceddistribution system is similar to 'grading on a curve. The evaluator is asked to rate employees in some fixed distribution of categories, such as 10 percentinlow,20percentinlowaverage,40percentinaverage,20percentinhighaverage, and10percentinhigh.Onewaytodothisistotypeeachemployee'snameonacardandask theevaluatorstosortthecardsintofivepilescorrespondingtotheratings.Thisshouldbedone twice for the two key criteria of job performance and promotability. One reason forced distributionwasdevelopedwastotrytoalleviatesuchproblemsasinflatedratingsandcentral tendencyinthegraphicratingscale.

7.4.3360DegreeAppraisal Typically,performanceappraisalhasbeenlimitedtoafeedbackprocessbetweenemployees andsupervisors. However,with the increasedfocusonteamwork,employeedevelopment, and customerservice,theemphasishasshiftedtoemployeefeedbackfromthefullcircleof sourcesdepictedinthediagrambelow.Thismultipleinputapproachtoperformancefeedbackis sometimes called "360degree assessment" to connotethatfullcircle. There are no prohibitions in law or regulation against using a variety of rating sources, in addition to the employee's supervisor, for assessing performance. Research has shown assessment approaches with multiple rating sources provide more accurate, reliable, and credible information. For this reason,

Personnel Management supports the use of multiplerating sourcesasaneffectivemethod of assessing performance for formal appraisal and other evaluative and developmental purposes.

The circle, or perhaps more accurately the sphere, of feedback sources consists of supervisors, peers, subordinates, customers, and one's self. It is not necessary, or always appropriate, to include all of the feedback sources in a particular appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will differwitheachsource.Forexample,subordinateassessmentsofasupervisor'sperformance canprovidevaluabledevelopmentalguidance,peerfeedbackcanbetheheartofexcellencein teamwork, and customer service feedback focuses on the quality of the team's or agency's results. The objectives of performance appraisal and the particular aspects of performance thataretobeassessedmustbeestablishedbeforedeterminingwhichsourcesareappropriate. We shall discuss the contributions of each source of ratings and feedback. In addition, precautions are listed to consider when designing a performance management program that includes360degreeassessment. Superiors: Evaluations by superiors are the most traditional source of employee feedback. Thisformofevaluationincludesboththeratingsofindividualsbysupervisorsonelementsin anemployee'sperformanceplanandtheevaluationofprogramsandteamsbysenior managers. Whatdoesthissourcecontribute? 1. Thefirstlinesupervisorisofteninthebestpositiontoeffectivelycarryoutthefullcycle of performance management: Planning, Monitoring, Developing, Appraising, and Rewarding. The supervisor may also have the broadest perspective on the work requirementsandbeabletotakeintoaccountshiftsinthoserequirements. 2. Thesuperiors(boththefirstlinesupervisorandtheseniormanagers)havetheauthorityto redesign and reassign an employee's work based on their assessment of individual and teamperformance. 3. MostGovernmentemployeesinanationalsurveyfeltthatthegreatestcontributiontotheir performancefeedbackshouldcomefromtheirfirstlevelsupervisors. Whatcautionsshouldbeaddressed? 1. Researchdemonstratesthatappraisalprogramsthatrelysolelyontheratingsofsuperiors are less reliable and valid than programs that use a variety of other rating sources to supplementthesupervisor'sevaluation. 2. Superiors should be able to observe and measure all facets of the work to make a fair evaluation. In some work situations, the supervisor or rating official is not in the same

location or is supervising very large numbers of employees and does not have detailed knowledgeofeachemployee'sperformance. 3. Supervisors need training on how to conduct performance appraisals. They should be capableof coaching and developing employeesas well as planning and evaluating their performance. SelfAssessment:Thisformofperformanceinformation is actuallyquitecommonbutusually usedonlyasaninformalpartofthesupervisoremployeeappraisalfeedbacksession.Supervisors frequently open the discussion with: "How do you feel you have performed?" In a somewhat moreformalapproach,supervisorsaskemployeestoidentifythekeyaccomplishmentstheyfeel best represent their performance in critical and noncritical performance elements. In a 360 degreeapproach,ifselfratingsaregoingtobeincluded,structuredformsandformalprocedures arerecommended. Whatdoesthissourcecontribute? 1. The most significant contribution of selfratings is the improved communication between supervisorsandsubordinatesthatresult. 2. Selfratings are particularly useful if the entire cycle of performance management involves the employee in a selfassessment. For example, the employee should keep notes of task accomplishmentsandfailuresthroughouttheperformancemonitoringperiod. 3. Thedevelopmentalfocusofselfassessmentisakeyfactor.Theselfassessmentinstrument (inapaperorcomputersoftwareformat)shouldbestructuredaroundtheperformanceplan, but can emphasize training needs and the potential for the employee to advance in the organization. 4. The valueofselfratings iswidelyaccepted.Morethan halfof governmentemployees felt that selfratingswouldcontribute"toagreatorvery great extent"tofair andwellrounded performanceappraisal. 5. Selfappraisalsshouldnotsimplybeviewedasacomparativeorvalidationprocess,butasa critical source of performance information. Selfappraisals are particularly valuable in situationswherethesupervisorcannotreadilyobservetheworkbehaviorsandtask outcomes. Whatcautionsshouldbeaddressed? 1. Research shows low correlations between selfratings and all other sources of ratings, particularly supervisor ratings. The selfratings tend to be consistently higher. This

discrepancycanleadtodefensivenessandalienationifsupervisorsdonotusegoodfeedback skills. 2. Sometimes selfratings canbe lower than others'. In such situations, employeestend to be selfdemeaningandmayfeelintimidatedand"putonthespot." 3. Selfratingsshouldfocusontheappraisalofperformanceelements,notonthesummarylevel determination.Arangeofratingsources,includingtheselfassessments,helpto"roundout" theinformationforthesummaryrating. Peers:Withdownsizingandreducedhierarchiesinorganizations,as wellastheincreasinguseof teamsandgroupaccountability,peersareoftenthemostrelevantevaluatorsoftheircolleagues' performance.Peershaveauniqueperspectiveonacoworker'sjobperformanceandemployees aregenerallyveryreceptivetothe conceptofratingeachother.Peerratingscanbeusedwhenthe employee's expertise is knownortheperformance andresults canbeobserved.Thereareboth significant contributions and serious pitfalls that must be carefully consideredbefore including thistypeoffeedbackinamultifacetedappraisalprogram. Whatdoesthissourcecontribute? 1. Peer influence through peer approval and peer pressure is often more effective than the traditionalemphasistopleasetheboss.Employeesreportresentmentwhentheybelievethat theirextraeffortsarerequiredto"makethebosslookgood"asopposedtomeetingtheunit's goals. 2. Peerratingshaveproventobeexcellentpredictorsoffutureperformance.Therefore,theyare particularlyusefulasinputforemployee development. 3. Peer ratings are remarkably valid and reliable in rating behaviors and "manner of performance,"butmaybelimitedinratingoutcomesthatoftenrequiretheperspectiveofthe supervisor. 4. TheuseofmultipleRatersinthepeerdimensionof360degreeassessmentprogramstendsto averageoutthepossiblebiasesofanyonememberofthegroupofRaters.(Someagencies eliminatethehighestandlowestratingsandaveragetherest.) 5. The increased use of selfdirected teams makes the contribution of peer evaluations the central input to the formal appraisal because by definition the supervisor is not directly involvedinthedaytodayactivitiesoftheteam. 6. Theadditionofpeerfeedbackcanhelpmovethesupervisorintoacoachingroleratherthan a purelyjudgingrole. Whatcautionsshouldbeaddressed?

1. Peerevaluationsarealmostalwaysappropriatefordevelopmentalpurposes,butattemptingto emphasizethemforpay,promotion,orjobretentionpurposes(i.e.,theratingofrecord)may notbeprudent.Thepossibleexception is inan awardprogramasopposedtoperformance appraisal.Peerinputcanbeeffectivelyusedforrecognitionandawards. 2. There is a difference of opinion about the need for anonymity of the peer evaluators. Generally,itisadvisedthattheidentitiesoftheRatersbekeptconfidentialtoassurehonest feedback. However, in closeknit teams that have matured to a point where open communicationispartoftheculture,thedevelopmentalpotentialofthefeedbackisenhanced when theevaluatorisidentifiedandcanperformacoachingorcontinuingfeedbackrole. 3. It is essential that the peer evaluators be very familiar with the team member's tasks and responsibilities.Incrossfunctionalteams,thisknowledgerequirementmaybeaproblem.In these situations, the greatest contribution thepeers can make pertains to the behaviors and effort(input)theemployeeinvestsintheteamprocess. 4. Theuseofpeerevaluationscanbeverytimeconsuming.Whenusedinperformanceratings, the data would have to be collected several times a year in order to include the results in progressreviews. 5. Depending on the culture of the organization, peer ratings have the potential for creating tension and breakdown rather than fostering cooperation and support. A very competitive programforrewardingindividualsintheagencywilloftenfurthercompromisethevalueof peerratingsystems. 6. Employees and their representatives need to be involved in every aspect of the design of appraisalsystemsthatinvolvepeerratings. Subordinates:Anupwardappraisalprocessorfeedbacksurvey(sometimesreferredtoasSAM fora"SubordinatesAppraisingManagers")isamongthemostsignificantand yetcontroversial featuresofa"fullcircle"performanceevaluationprogram.Bothmanagersbeingappraisedand their own superiors agree that subordinates have a unique, often essential, perspective. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and supervisory behaviors. However, there is usually great reluctance, even fear, concerningimplementationofthisratingdimension.Onbalance,thecontributionscanoutweigh theconcernsiftheprecautionsnotedbelowareaddressed. Whatdoesthissourcecontribute? 1. A formalized subordinate feedback program will give supervisors a more comprehensive picture of employee issues and needs. Managers and supervisors who assume they will

sufficiently stay in touch with their employees' needs by relying solelyonan "open door" policygetveryinconsistentfeedbackatbest. 2. Employeesfeeltheyhaveagreatervoiceinorganizationaldecisionmakingand,infact,they do.Throughmanagerialactionplansandchangesinworkprocesses,theemployeescansee thedirectresultsofthefeedbacktheyhaveprovided. 3. The feedback from subordinates is particularly effective in evaluating the supervisor's interpersonal skills. However, it may not be as appropriate or valid for evaluating task orientedskills. 4. Combining subordinate ratings, like peer ratings, can provide the advantage of creating a compositeappraisalfromtheaveragedratingsofseveralsubordinates.Thisaveragingadds validityandreliabilitytothe feedbackbecausethe aberrantratings getaveragedoutand/or thehighandlowratingsaredroppedfromthesummarycalculations. Whatcautionsshouldbeaddressed? 1. The need for anonymity is essential when using subordinate ratings as a source of performance feedback data. Subordinates simply will not participate, or they will give gratuitous,dishonestfeedback,iftheyfearreprisalfromtheirsupervisors.Iftherearefewer than foursubordinates intheratingpoolforaparticularmanager,theratings(eventhough theyareaveraged)shouldnotbegiventothesupervisor. 2. Supervisorsmayfeelthreatenedandperceivethattheirauthorityhasbeenunderminedwhen they must take into consideration that their subordinates will be formally evaluating them. However,researchsuggeststhatsupervisorswhoaremoreresponsivetotheirsubordinates, basedonthefeedbacktheyreceive,aremoreeffectivemanagers. 3. Subordinatefeedbackismostbeneficialwhenusedfordevelopmentalpurposes.Italsocan beusedinarrivingattheperformanceratingofrecord,butprecautions shouldbetakento ensure that subordinates are appraising elements of which they have knowledge. For example, if a supervisor's performance plan contains elements that address effective leadershipbehaviors,subordinateinputwouldbeappropriate.Itmaynotbeappropriatefor theemployeetoappraisethesupervisor'sindividualtechnicalassignments. 4. Onlysubordinateswithasufficientlengthofassignmentunderthemanager(atleast1yearis the most common standard) should be included in the pool of assessors. Subordinates currently involved in a disciplinary action or a formal performance improvement period shouldbeexcludedfromtheratinggroup.

5. Organizations currently undergoing downsizing and/or reorganization should carefully balance the benefits of subordinate appraisals against the likelihood of fueling an already tensesituationwithdistrustandparanoia. Customers: Setting Customer Service Standards, requires agencies to survey internal and externalcustomers,publishcustomerservicestandards,andmeasureagencyperformanceagainst these standards. Internal customers are defined as users of products or services supplied by anotheremployeeorgroupwithintheagencyororganization.Externalcustomersareoutsidethe organizationandinclude,butarenot limitedto,thegeneralpublic. Whatdoesthissourcecontribute? 1. Customer feedback should serve as an "anchor" for almost all other performance factors. Combinedwithpeerevaluations,thesedata literally "roundout"theperformance feedback program and focus attention beyond what could be a somewhat selfserving hierarchy of feedbacklimitedtotheformal"chainofcommand." 2. Includingarangeofcustomersinthe360degreeperformanceassessmentprogramexpands thefocusofperformancefeedbackinamannerconsideredabsolutelycriticaltoreinventing Government Employees, typically, only concentrate on satisfying the standards and expectations of the person who has the most control over their work conditions and compensation. This person is generally their supervisor. Service to the broader range of customersoftensuffersifitisneglectedinthefeedbackprocess. Whatcautionsshouldbeaddressed? 1. With few exceptions, customers should not be asked to assess an individual employee's performance.Thevalueofcustomerservicefeedbackismostappropriateforevaluatingteam or organizational output and outcomes. This feedback can then be used as part of the appraisal for each member of the team. The possible exceptions are evaluations of senior officials directly accountable for customer satisfaction and evaluations of individual employeesinkey"frontline"jobspersonallyservinginternalorexternalcustomers. 2. Customers,bydefinition,arebetteratevaluatingoutputs(productsandservices)asopposed toprocessesandworkingrelationships.Theygenerallydonotseeorparticularlycareabout theworkprocesses,andoftendonothave knowledgeofhowtheactionsofemployeesare limitedbyregulations,policies,andresources. 3. Designing and validating customer surveys are an expensive and timeconsuming process. Thetimeandmoneyarebestspentdevelopingcustomerfeedbacksystemsthatfocusonthe organizationorworkunitasawhole.

Frequentlyaskedquestionsandanswersaboutthe360DegreeorFull Circleappraisal. 1. Must an agency or a company use all of the sources of rating information to be consideredusinga360degreeor"fullcircle"program? No.Theseterms(360degree,fullcircle,etc.)meanusingthevarietyofsourcesthatprovide thebestpictureofperformance.Therefore,forexample,anagencymayusesupervisor,self, and customer input to supplement the rating official's appraisal in one division's program. Another division of the same agency with "selfdirected teams" may use peer, self, and subordinateratingstoobtainthemostusefulinput. 2. Cananagencyorcompanyguaranteeconfidentialityandprotectprivacy?Howshould anagencyrespondtoaRTIActdemandforaspecificpeerorsubordinateratingina programthatassures anonymity? If the tool used to collect appraisal input from multiple sources containsthe names of the appraiserswiththeircomments,andthatinformationisfiledintotheEmployeePerformance File (EPF), the employee is entitled to see that information, even if the program assures anonymity.If,however,thetooluseddoesnotretainthenamesofappraiserswithdataand onlythefinal,aggregateresultsarefiledintotheEPF(e.g.,acomputerizedprogramisused that averages appraiser input and provides the results only), anonymity can be guaranteed becausethereisnodataretainedthatisidentifiableperappraiser. 3. Canemployeesfileagrievanceagainstapeerorsubordinateappraiser? Employeescan grievemanyaspectsoftheappraisalprocess, includingtheprocessusedto determinethefinalratingofrecordandtheappraisalofindividualelements.Ifthetoolused togatherthemultiplesourceinputretainsappraisernameswiththeirratingorcomments,the employee can file a grievance against a peer or subordinate. If, however, the data is anonymousandanaverageratingisderivedfromtheaggregateratingofallappraisers,the employeecannotfileagrievanceagainstonlyoneofthem. While 360Degree involves reviews by people other than just the immediate manager. It is importanttounderstandhowfinally italltiesup.Oftenthereviewobtainedfromthepeers, subordinates,customerandself,allserveas inputsforthemangertousetothefinalrating. Sometimesitcouldalsobeanaverageoftheratingfromallsourcestoarriveatthefinalrating howeverthisisnotaverypopularmethod.Infact360Degreefeedbackismorepopularwhere subjective feedback and comments are invited anonymously on a few general questions whicharemadeavailabletothemanagertouseforratingtheemployee.

7.4.4MBO:ManagementbyObjectives MBOisaverycommonindustrypracticeusedtoreviewemployeesattheworkplace.Atthe beginningoftheyearclearobjectivesarelaiddownforachievementduringthecourseofthe year.Theseobjectivesarepopularlycalledbythefollowingnames: 1.KRAkeyresultareas 2.KPA keyperformanceareas 3.Targets 4.Commitments These objectives are designed using the SMART framework as in... Specific, Measurable, Achievable,ResultsorientedandTimebound.Allobjectivesmustconformtothisframework. Thereafter the objectives are broken up into half yearly, quarterly and maybe monthly objectives, again keeping in mind the SMART framework. All along the process both the employeeandthemangerareinconsensusoftheobjectivesandthetimelinesaswellasthe deliverables. MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements andmodifiedongoingagaininconsensusbetweentheemployeeandthemanager. At the end of the review year, the MBOs are reviewed for completion with the SMART framework. Incaseofanewemployeeorsomeonemovingjobs/assignmentsbetweenteamsafterabout 68weeksofbeinginthejobthisprocessisundertakenandtheobjectivesareset.

SelfAssessmentQuestionsIV 1. In________________,theevaluatorisaskedtorateemployeesfromhighesttolowest onsomeoverallcriterion. 2. In_______________________approachfirst,thenamesofthepersonstobeevaluated areplacedonseparatesheetsinapredeterminedorder,sothateachpersoniscompared toallotherstobeevaluated. 3. The__________________________issimilarto'gradingonacurve.

7.5BenefitsofPerformanceAppraisal Whenhedoeshisworkwell,theemployeenaturallywantsittobepraisedandrecognisedby hisbossandfellowworkers."Praiseseemstohaveitsgreatestvaluewhengivenandreceived

asrecognition,andisnotperceivedbyeitherpartyasanattempttocontrolthebehaviourof therecipient."Recognitionsatisfieshumanneedforesteembyothersandforselfesteem.This recognitionmay be shownin theformofpraise,ofapaton theback of the employee ora recommendationforapayraise,promotion,orassignmentofmoreinterestingtasks.Awards maybegivenintheformofarticles,banquetshonouringcertainindividuals,certificatesand plaques,too,maybegiven,ortheemployee'snamemaybeenteredontheHonoursBoard. Such recognition may generally be given for good workable suggestions leading to a reductionintimeorcostorinimprovingthequalityofaproductforvaluableservicesinan emergency,aswhenafirebreaksout,orthereisabreakdown,orthereareriotsoraccidents exceeding sales beyond the set quota, and regularity in attendance on the job. Collective recognition may be given by the award of a shield or a banner or a certificate, special privilegesoramoneybonustotheemployees.

Anincentiveorrewardcanbeanythingthatattractsaworker'sattentionandstimulateshimto work. In the wordsof Burack and Smith, "an incentive scheme is a plan orprogrammes to motivate individualor groupperformance. Anincentive programme is most frequently built onmonetaryrewards(incentiveRayoramonetarybonus),butmayalsoincludeavarietyof nonmonetaryrewardsorprizes." The use of incentives assumes that people's actions are related to their skills and ability to achieve importantlongerrungoals.Eventhoughmanyorganisations,bychoice,ortradition or contract, allocate rewards on nonperformance criteria, rewards should be regarded as a "payoff"forperformance. Anincentiveplanhasthefollowingimportantfeatures: 1. An incentive plan may consist of both 'monetary' and 'non monetary' elements. Mixed elementscanprovidethediversityneededtomatchtheneedsofindividualemployees. 2. The timing, accuracy and frequency of incentive are the very basis of a successful incentiveplans. 3. Theplanrequiresthatitshouldbeproperlycommunicatedtotheemployeestoencourage individualperformance,providefeedbackandencourageredirection.

Promotionisatermwhichcoversachangeandcallsforgreaterresponsibilities,andusually involveshigherpayandbettertermsandconditionsofserviceand,therefore,ahigherstatus orrank.

Apromotionmaybedefinedasanupwardadvancementofanemployeeinanorganizationto another job, which commands better pay/wages, better status/prestige, and higher opportunities/challenges,responsibility,andauthority,betterworkingenvironment,hoursof workandfacilities,andahigherrank. A promotion is a vertical move in rank and responsibility. Involvedin a promotion may be some measure of skill and responsibility e.g. it may be from a machinist B grade to a machinist A grade, or it may involve an entirely different type of work, for example, from salesmantoaSalesManagerorfromaFitterGradeIIItoaFitterGradeII,orfromaclerkto thepostofaSectionincharge.Promotionsareusuallygiven: 1. To put the worker in a position where he will be of greater value to the company and wherehemayderiveincreasedpersonalsatisfactionandincomefromhiswork 2. Toremoveaworkerfromhisjobasanalternativetoavoidtheembarrassmentoffiringor demotinghim 3. Torecognizeanindividual'sperformanceandrewardhimforhisworksothathemayhave an incentive to forge ahead. Employees will have little motivation if better jobs are reservedforoutsiders: 4. Toincreaseanemployee'sorganisationaleffectiveness 5. Tobuildupmorale,loyalty,andasenseofbelongingonthepartoftheemployeeswhenit isbroughthometothemthattheywouldbepromotediftheydeserveit 6. To promote job satisfaction among the employees and give them an opportunity for unbroken,continuousservice 7. Toprovideaprocessof"selectivesocialization".Employeeswhosepersonalitiesandskills enablethemtofitintoanorganization'shumanrelationsprogrammetendtostayonwhile thosewhosepersonalitiesdonotfitwellwiththoseofthe organizationtendtoleave 8. Toattractsuitableandcompetentworkersfortheorganization 9. To create among employees a feeling of contentment with their present conditions and encouragesthemtosucceedinthecompany. SelfAssessmentQuestionsV 1. ______________satisfieshumanneedforesteembyothersandforselfesteem 2. Awardsmaybegivenintheformof............................. 7.6.Summary 3. Theuseof________________assumesthatpeople'sactionsarerelatedtotheirskills The personnel specialists design the performance evaluation system, train the line andabilitytoachieveimportantlongerrungoals. managersintheuseofthesystems,andmaintaintherecords.

 The three categories used here will be individual evaluation methods multiple person evaluationmethodsandother methods. Thefollowingmethodshelptoevaluateanemployeeindividually: Graphicratingscale Forcedchoice Essayevaluation Managementbyobjectives Criticalincidenttechnique Checklistsandweightedchecklists Threetechniquesthathavebeenusedtoevaluateanemployee incomparisonwithother employeesbeingevaluatedare Ranking Pairedcomparison Forceddistribution Recognitionsatisfieshumanneedforesteembyothersandforselfesteem. Thisrecognitionmaybeshownintheformofpraise,ofapatonthebackoftheemployee orarecommendationforapayraise,promotion,orassignmentofmoreinterestingtasks. An incentive or reward can be anything that attracts a worker's attention and stimulates himtowork. Theuseofincentivesassumesthatpeople'sactionsarerelatedtotheirskillsandabilityto achieveimportantlongerrungoals. Performance appraisal is limited to a feedback process between employees and supervisors. However,withtheincreasedfocusonteamwork,employeedevelopment,andcustomer service, the emphasis has shifted to employee feedback from the full circle of sources. This multipleinput approach to performance feedback is sometimes called "360degree assessment"toconnotethatfullcircle.

7.7TerminalQuestions 1. Explainthefivewaysofevaluatinganemployeeindividually. 2. Defineperformanceappraisal. 3. Explainbriefly,MultiplepersonEvaluationMethods.

4. Writeshortnoteon: a. Rewardsandincentives b. Purposeofpromotions

0 5. Explaintheconceptof360 Appraisal.

7.8AnswerstoSAQsandTQs SelfAssessmentQuestionsI 1Performanceevaluation,2 linemanagers,3topmanagement SelfAssessmentQuestionsII 1 Work performance, 2 a specific time period, 3 performance on the job functions or activities SelfAssessmentQuestionsIII 1Forcedchoice,2 essaytechnique,3 essaytechnique SelfAssessmentQuestionsIV 1Rankingmethod,2 Pairedcomparison,3 forceddistributionsystem SelfAssessmentQuestionsV 1. 1Recognition,2articles,banquetshonouringcertainindividuals,certificatesandplaques etc.,3incentives AnswerstoTQs: 1. Referto7.4.1 2. Referto7.3 3. Referto7.42 4. Referto7.5 5. Referto7.4.3