Performance Appraisal Measures - Designing the Managerial Job

Performance Appraisal Measures

^—    By means of HRD activities, the manager develops the technical, managerial, behavioral knowledge, skill ability and values, which are necessary to perform present and future role.

^—    The process of performance appraisals helps the manager and management to know the actual performance level of manager when compared to standard level.

^—    Performance appraisal is the basis of HRD, based on which promotions ,demotion, salary fixing etc. can be decided. It is the basis for the individual development

Definitions

^—    It is a method of evaluating the behaviour of the manager in work spot, both qualitative and quantitative aspect.

^—    It is the degree of accomplishment of the task that makes up an individual job.

^—    The performance of an employee is his resultant behavior on task which can be observed & evaluated

^—    Performance is measured in degree of the result achieved.

Performance Appraisal :

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members

Purpose of PA-Remedial, maintenance, development

Characteristic feature of performance appraisal

^—    Performance appraisal is the systematic description of the manager job relevant strength and weakness.

^—    Basic purpose is to find out how well the manager is performing the job.

^—    Appraisals are arranged periodically.

^—    Performance appraisal is a continuous process.

^—    Secure information for making correct decisions on employees

^—    Performance appraisal is followed by corrective measures

NEED FOR PERFORMANCE APPRAISAL

^ü   Provides information about the performance rank.

^ü   Provide feedback information about the level of achievements and behaviours of subordinate.

^ü    Prevent  grievances and maintains discipline

^ü   Creates and maintain satisfactory level of performance.

^ü   Contributes to manager growth and development through training programs.

^ü   Helps the superior to have proper understanding about their subordinates.

^ü   Helps to adopt job changes with the help of continuous ranking.

^ü   Facilitates fair and equitable compensation, based on performance.

^ü   Facilitates in testing and validating selection tests, interview techniques, by comparing their scores with performance standards.

^ü   Provides information for making decisions regarding layoff, retrenchment etc.

^— The Appraisal Model

The appraisal model consists of three kinds of appraisals:

^—    Comprehensive review

^—    Progress or periodic review

^—    Continuous monitoring Formal Comprehensive Review

^—    It is conducted at least once a year.

^—    Performance is reviewed for the period.

Progress or Periodic review

^—     Identifies the problems or barrier that hinder effective performance at regular intervals.

^—    Open communication between superior and subordinate

^—    Priorities can be rearranged and objectives can be reorganized

Continuous monitoring

^—    If the system deviates from the plan , one does not have to wait for the next periodic review to correct it. The superior and the subordinate discuss the situation such that corrective action can be taken immediately in order to prevent further deviation.

Process of PA

Performance appraisal methods

^—    With the evolution and development of the appraisal system a number of methods or techniques of performance appraisal have been developed. They can be classified as

^—    Traditional method

^—    Graphic rating scales

^—    Ranking method

^—    Paired Comparison Method

^—    Forced Distribution Method

^—    Check List Method

^—    Critical Incident Method

^—    Essay Appraisal Form

^—    Modern method

^—    BARS (Behaviourally Anchored Rating Scales)

^—    Assessment centres

^—    Management By Objective

^—    Psychological Appraisal

^—    360-Degree Feedback

Problems of Performance Appraisal

^—    Halo effect- one trait

^—    The Error of Central tendency

^—    Rating all in the middle – avoid both extremes of scale

^—    The leniency and strictness – liberal rating

^—    Personal prejudices - dislikes

^—    Recent effect

^—    Recent action

^—    Negative rating

^—    Less reliability and validity

How to minimize the problems

The problems of performance appraisal can be minimized through the following means:

^—    By covering an open meeting with the appraisers and discussing the performance of the manager before an after performance review discussions.

^—    By encouraging every one to comment on each other‘s achievements and area requiring improvement.

^—    The appraiser should be objective and speak the truth.

^—    By conducting counselling meeting with the managers to appraise them of their performance and consequences.