Performance appraisal
is the process of evaluating the work of employees against performance standards.
Performance appraisal objectives
1. Determine who will be promoted, transferred or terminated.
2. Determine training needs.
3. Motivate employees and improve performance.
Performance Appraisal Methods
1. Graphic Rate Scale
2. Alternative Ranking
3. Paired Comparison
4. Critical Incident
5. Narrative Forms
6. The Management by Objectives (MBO)
7. Mixing the Methods
Graphic Rate Scale
It is the simplest and most popular technique. It lists traits (such as quality and reliability) and a range of performance values (form unsatisfactory to outstanding).
Alternative Ranking
All employees to be ranked from highest to lowest, are listed, for each trait.
Paired Comparison
For every trait (quantity of work, quality of work,...), every employee is paired with and compared to every other employee. Then the number of times that an employee is rated better is added up.
Critical Incident
*) The supervisor keeps a log of desirable or undesirable incidents of each employee's work-related behavior.
*) Then every six months or so, the supervisor and employee meet and discuss the latter's performance using the specific incidents as examples.
*
Narrative Forms
*) In this form, the performance problem is described in specific details, and its organizational impact is specified.
*) This method also contains an improvement plan that identifies measurable improvement goals.
*) It provides directions regarding train
The Management by Objectives (MBO)
*) It requires the manager to set specific measurable goals with each employee and then periodically discuss his progress toward these goals. MBO consists of six steps:
(a) Set the organization's goals,
(b) Set departmental goals,
(c) Discuss departmental
Mixing the Methods
*) Most firms combine several appraisal techniques;
*) It is basically a rating scale in addition to a section for comments below each trait where the rater writes down several critical incidents.
Performance Appraisal Problems
(a) Unclear Standards
(b) Similar-to-me Bias
(c) Leniency or Strictness
(d) Appraisal Bias
(a) Unclear Standards:
Different supervisors would probably differently define "Excellent, good, fair, poor" performances. The best way to solve such a problem is to include descriptive phrases that define each trait.
( b) Similar-to-me Bias:
A supervisor tends to give higher ratings to employees with whom he has something in common. This bias can be discriminatory if it is based on similarity in race, gender, or other prohibited grounds.
(c) Leniency or Strictness:
Some supervisors tend to rate all of their employees consistently high (or low).
(d) Appraisal Bias:
Individual differences among rates in terms of a wide variety of characteristics such as age, race, sex or previous performance can distort their ratings. This bias is illegal under human rights legislation.
There are six things to keep in mind when conducting an appraisal interview:
1) Be direct and specific
2) Do not get personal
3) Encourage the person to talk
4) Develop an action plan
5) Handle wisely a Defensive Employee
6) Constructively Criticize an Employee's Performance
1) Be direct and specific:
*) Talk in terms of objective work data.
*) Such as quality records, scrap or waste, productivity records, materials used, accuracy of tasks or projects, control or reduction of costs, numbers of errors, costs compared to budgets, customers' comments, pro
2) Do not get personal:
*) Do not say, "You are too slow in producing those reports".
*) Instead, try to compare the person's performance to a standard (These reports should normally be done within 10 days). Similarly, do not compare the person's performance to that of other peo
3) Encourage the person to talk:
Stop and listen to what the person is saying;
Ask open-ended questions, such as "What do you think we can do to improve the situation?
4) Develop an action plan:
*) Do make sure that the person leaves knowing specifically what he is doing right and doing wrong.
*) Give specific examples, make sure that the person understands, and get agreement before he leaves on how things will be improved, and by when. Develop a
5) Handle wisely a Defensive Employee
When a person is accused of poor performance and gets angry and defensive, try to concentrate on his job-related issues and never get personal or irritated.
6) Constructively Criticize an Employee's Performance
When criticism is required, it should be done in a manner that lets the person maintain his dignity and sense of worth. It should be objective and free of any personal biases.