You are on page 1of 4

P

erformance

ppraisal

Formal evaluation of employees conducted to determine the degree to


which they are meeting their specified objectives.

Purposes of Performance Appraisal


1. Evaluation Purpose :

Provision of feedback to subordinates to know their positions


regarding performance on the job.
Developing valid data for administrative actions.

2. Developmental Purpose :

Analysis of individual and organizational strengths &


weaknesses.
Counseling, coaching, career planning, and motivation of
subordinates.

Designing and implementing comprehensive, fair and transparent


systems and processes.
Appraisers and appraisees should be familiar with the relevant
information regarding performance appraisal.

1. The Evaluation Process

Appraiser and appraisees role should be clearly explained


Mechanisms should be developed
Off-the-shelf software
Suitability of the software

2. Scheduling the Evaluation


Annual evaluation, quarterly, bi-annual, conclusion of a project,
anniversary of the individual joining the organization, or around the
same date, or around the same date for everyone every year
Ensuring time and adhering to the required schedule
Ensuring that evaluations are linked with performance-based rewards
Employees planning for the next year

3. The Appraiser
Articulation of responsibility to the person who is going to conduct
appraisal
Mostly the appraiser is the immediate supervisor
Advantage of such a choice is first-hand knowledge
Enables feedback and coaching, provided throughout the review
period
360 or Multisource Feedback
Several sources of information (Suppliers, Peers, Supervisor,
Employee him/herself, Clients/Customers, Subordinates, Others)
Expectation from multisource evaluation
Problem with Multisource Feedback
a. Different sources, different aspects
b. Useful for developmental purpose rather than administrative
decisions

4. Evaluating Performance
Untrained individuals, a recipe for disaster
Trained individuals are needed to make PMSs effective
Training should include:
a. Organizations philosophy regarding PMSs
b. Primary purpose of appraisal (Developmental or Administrative)
c. Organizations performance appraisal process
d. Performance standards established by the organization
e. Appraisal forms
f. Feedback process
g. Impact of the evaluation on subordinates compensation and
career with the organization
Appraiser should be trained to avoid biases such as
a. Central Tendency Error
b. Severity/Leniency Error
c. Recency Error
d. Halo/Horn Error

a. Central Tendency Rating around the middle of scale to avoid

Error
b. Severity/Leniency
Error
c. Recency Error

d. Halo/Horn Error

5. What will
Outcomes)?

be

explanations
Rating lower/higher and not objectively in
order to project an image of being
tough/easy
Making
evaluations
keeping
current
performance in mind rather than past
performance
Rating outstanding/poor performance on all
dimensions
because
outstanding/poor
performance on one dimension was figured
out

evaluated

(Traits,

Behaviors,

or

Most commonly used three broad categories of criteria i.e. Traits,


Behaviors, and Outcomes
Right trait means performance as expected
Right behavior will bring desired results
Criticism on evaluating outcomes
The choice of these three categories depends on organizational
culture, values, its objectives, and its management philosophy
Information must be shared with the employees

6. Performance Related Information


Issue related to the information, how should it be used
Critical for an organization to design mechanisms to collect relevant
information
Global evaluation of the subordinate should be avoided
Establishment of information collection protocols
Ensuring that the information is collected and documented in
systematic fashion on a regular basis
A help in avoiding irrelevant information
Subordinate also become aware of what he/she will be evaluated on

istributing/Allocating

(Rewards/Punishment)

Outcomes

Employee expectation regarding rewards from the organization


Fair and transparent procedures
Organization should adhere to the stated policies and procedures

You might also like