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Performance Appraisal
Definition:
An organizations performance appraisal is defined as a process, which generates valid information about employee work effectiveness for the purpose of making informed human resource decisions.
Why Evaluate:
Ø Employee
understand behaviour requirements of the job
Ø Evaluate work for
contribution to organization goals
Ø Employee needs to
know where they stand with organization in term of performance
Ø Increase Employee
motivation to do a good job
Ø Valid information
about Employee should be used to make decisions about salary increases,
promotions, bonuses and training needs.
Ø Employees have
clear understanding of what organization expects from them in terms of
performance.
Effect of Performance Appraisal for
Employee
|
Ø Need
fulfillments (security, social self-esteem) |
Ø Job Satisfaction |
|
Ø Organisational
commitment |
Ø Job Involvement |
|
Ø Satisfaction
with pay |
Ø Achievement of
promotion |
|
Ø Satisfaction
with supervisor |
Ø Greater
responsibility |
|
Ø Improved self
efficacy |
|
Effect of Performance Appraisal for
Organization
|
Ø
Performance Improvement |
Ø
Help with goal setting |
|
Ø
Validation of selection system |
Ø
Development of employee potential |
|
Ø
Employee Counseling |
Ø
Manpower Planning |
|
Ø
Training and Development |
Ø
Documentation of existing performance |
|
Ø
Clarification of job expectations |
Ø
Improved customer Satisfaction |
|
|
Ø
Quality Improvement |
Form of Validity
|
|
Content |
Performance
measured is related to actual job behaviour |
|
|
Empirical |
Performance
measured are statistically related to other important work outcomes |
|
|
Construct |
Performance
appraisal logically derives from a model or theory of performance behaviour
and motivation. |
|
|
Convergent |
Multiple measures
of same performance yield equivalent scores. Observation correlate with paper
pencil measure. |
|
|
Discrimination |
Measures of
performance using the same method produce different scores for different
aspects of performance. |
Error in Performance Appraisals
|
Ø
Personal Bias |
Ø
Strictness or Leniency |
|
Ø
Halo effect |
Ø
Similarity |
|
Ø
Recency Error |
Ø
Forcing the Rating |
|
Ø
Central Tendency |
|
Overcome Reliability Errors
|
Multiple
Criteria |
Several performance
dimensions or criteria. |
|
Emphasis
behaviour rather than Trait |
Traits can be
valued in employees however have very little to do with excellent performance
on the job. |
|
Several Raters |
As number of raters
increase accuracy of results improve significantly. |
|
Train Raters |
Training of
evaluators can reduce substantially the types of errors that threaten system
reliability. |
How Managers can
Improve Design of Performance Appraisal Systems
Ø Conduct job
Analysis
Ø Improving the
validity of performance measures
Developing Performance Measures with
Job Analysis
Ø Determine common
skills and qualification required to do the job
Ø Isolate the work tasks
which occur at the same place and time because of task co-ordination required
by technology
Ø Use externally
accepted qualities to cluster tasks based on professional definitions
Ø Use traditional
of organization which define how work has always been done
Ø Make validity
improvements in performance appraisal work
1.
Select most appropriate method to measure performance
2.
Develop a system which focuses on specific aspects of performance
3.
Effective training of raters are developing training manual for
appraisal
Performance Appraisal Methods
|
Absolute Standard |
Yes / No |
|
Graphic Scales Rating system |
1 – 5 |
|
Behaviour Anchored Rating Scale (BARS) |
How work performed rather than traits of employees. |
