Objectives of Performance Appraisal

Objectives of Performance Appraisal

Reward Decision Reward Decision Increments Performance Pay Promotions Demotions Development Objectives Development Objectives Identification of Strength Identification of Weakness Training Needs Identification Career Planning Succession Planning Competence Planning Job Rotation Leadership Development Validating Recruitment Validating Training HR Planning Skills Inventory Performance Feedback

Punishments
Outplacement

Errors in Performance Appraisal

- Stereotyping - Halo Effect - Horn Effect - Central Tendency - Leniency Error - Strictness Error - Inflationary Error - Status Error

- Spillover Effect
- Low Appraiser Motivation - Rater Bias - Primacy Error/Recency Error

- Same-as-me Error
- Contrast Error - Performance Dimension Order - Attribution Error

Methods of Appraisal
MBO Method
Corporate Objectives Department Objectives Appraisers Objectives Appraisers Perception Resources Allocation Agreed Objectives Action Planning Implementation Appraisal, Review Consequences - Results orientation - Agreed objectives - Capacity utilisation - Better motivation - Goal setting culture - SHORT TERM FOCUS - TUG-OF-WAR - CONFLICTS - No Development Feedback Appraisees Perception

Methods of Appraisal
MBO Method Graphic Rating Scale Essay Method Assessment Development Centre Behaviourly Anchored Rating Scale Field Review Method

Forced DISTRIBUTION
CRITICAL INCIDENTS Forced Choice Method Check List Method

CRITICAL INCIDENT METHOD

Critical incidents are behaviors that result in good or

poor job performance. The rater records all such incidents and the ratees involvement in it. The rater plays the role of Observer rather than Judge.
For eg.

I saw Mishra closing the steam line valve at the

instant the pipeline burst. We could save a lot of lives due to the above factor.

RECORDING CRITICAL INCIDENTS

Should be Specific Focus on Observable behaviours that have been exhibited on the job Describe the Context in which the behaviour occurred Indicate the Consequences or Outcomes of the behaviour

Forced Distribution
30 25 20 15 10 5 0 Low Low- Avg High- High avg avg Low Low-avg Avg High-avg High

Appraisal Process
Objectives of Appraisal
Establish Job Expectations

Design of Appraisal Process and Format

Appraisal Performance and Competencies

Consequences

Performance Interview

Improving Effectiveness of Performance Appraisal

- Training of Appraisers and Appraisees - Consequences Management - Developmental Orientation

- Communication Climate - TRUST - EMPATHY - LISTENING - TIMELY

- COST EFFECTIVE - OPEN, TRANSPARENT - CONSTANT REVIEW of Process and Format

Assessment Development Centre

- Competency Focussed - Off the Job Method - days Workshop - Multiple, Trained Assessors - Top Management / Consultants - Case Analysis, Presentations - Interviews - Psychometric Tests - Group Discussions

Potential Appraisal

High P O T E N T I A L Problem Children

High

STARS

Outplacement Candidates Low Low

Solid Professionals High

Performance Performance TODAY Potential FUTURE For Career Planning For Succession Planning For Competency Development

Appraisal Interview
- LISTEN and TELL Method

- Listen and Sell Method

- Listen and Mutual Problem Solving Method

- Future Oriented

- Performance Improvement

- Competency Development