Professional Documents
Culture Documents
People
may
be
able
to
perform
to
a
very
high
standard
but
within
the
context
of
the
given
role.
May
not
be
capable
of
moving
up
a
level
Performance
is
about
NOW
&
potential
is
about
performance
in
the
FUTURE
The
real
damage
is
done
when
the
high
performance
employee
is
promoted
to
a
managerial
level,
is
uncomfortable
and
struggles
in
the
new
role,
resulting
in
high
levels
of
stress
and
anxiety
causing
him/
her
to
quit.
For hidden
development
skill
Future oriented
Potential Appraisal
Evaluation of the
employee performance.
skill
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Pallavi
Srivastava,
Jaipuria
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1
KRA
Current
Standing
Deficiency
Action
Plan
The
Performance
&
Potential
Matrix
(The
9-box
Model
or
Inverted-L
Model):
The
performance
and
potential
matrix,
commonly
referred
to
as
the
nine
box,
is
a
simple
yet
effective
tool
used
to
assess
talent
in
organizations.
It
assesses
individuals
on
two
dimensions
their
past
performance
and
their
future
potential.
Prepared
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FIGURE
2
NINE
BLOCK
MODEL
PERFORMANCE APPRAISAL:
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3
PURPOSE
OF
PMS
i.
ii.
iii.
iv.
v.
vi.
vii.
ROLE OF HR DEPARTMENT:
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FIGURE
3
STRATEGIC
CHOICES
IN
PERFORMANCE
EVALUATION
WHO
EVALUATES?
a) Traditionally,
the
immediate
supervisor
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b) Peers
Only
effective
when
political
considerations
&
consequences
are
minimized,
&
employees
have
sense
of
trust
c)
Subordinates
Insights
into
interpersonal
&
managerial
styles
Excellent
measures
of
individual
leadership
capabilities
Same
political
problems
as
peer
evaluations
d) Customers
Feedback
most
free
from
bias
e) Self-evaluations
Allow
employees
to
participate
in
critical
employment
decisions
More
holistic
assessment
of
performance
f) Multi-rater
systems
or
360-degree
feedback
systems
Seeks
performance
feedback
from
supervisors,
peers,
employees,
customers
and
the
like
evaluate
the
individual.
Used
by
approximately
90%
of
the
Fortune
1000
firms
Due
to
delayering
supervisors
have
greater
work
responsibility
&
more
people
reporting
directly
to
them
hence
difficult
to
know
each
employee
extensively.
Peers
included
because
of
growth
of
project
teams.
Can
be
very
time-consuming
More
performance
data
collected,
greater
overall
facilitation
of
assessment
&
development
of
employee
Costly
to
collect
&
process
Consistent
view
of
effective
performance
relative
to
strategy
WHAT
TO
EVALUATE?
1. Traits
measures:
Assessment
of
how
employee
fits
with
organizations
culture,
not
what
s/he
actually
does
2. Behaviour-based
measures:
Focus
on
what
employee
does
correctly
&
what
employee
should
do
differently
3. Results-based
measures
(e.g.
KRAs):
Focus
on
accomplishments
or
outcomes
that
can
be
measured
objectively
Prepared
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Pallavi
Srivastava,
Jaipuria
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internal
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6
HOW
TO
EVALUATE?
I.
II.
METHODS
OF
PERFORMANCE
APPRAISAL/
EVALUATON
Methods
Rating
Graphic
rating
Scales
Behaviourally
Anchored
Rating
Scales
(BARS)
Ranking
Alternation
Ranking
Method
Paired
comparison
Forced
Ranking/
Distribution
Annual
Conhidential
Reports
(ACR)
Narrative
Management
By
Objectives
(MBOs)
Essays
Critical
Incident
Method
FIGURE
4
DIFFERENT
METHODS
OF
PERFORMANCE
EVALUATION
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I.
FIGURE
5
GRAPHIC
RATING
SCALE
II.
Prepared
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internal
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8
The
appraiser
rates
the
employees
based
on
items
along
the
continuum,
but
the
points
are
of
actual
behaviour
on
the
job
rather
than
general
descriptions
or
traits.
Time consuming.
DEVELOPING
A
BARS
1. Generate
critical
incidents
1. Develop
performance
dimensions
2. Reallocate
incidents
3. Scale
the
incidents
4. Develop
a
final
instrument
FIGURE
6
AN
EXAMPLE
OF
BARS
Prepared
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FIGURE
7
AN
EXAMPLE
OF
A
BARS
FOR
THE
DIMENSION
"SALESMANSHIP
SKILLS"
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III.
FIGURE
8
ALTERNATION
RANKING
IV.
Prepared
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FIGURE
9
PAIRED
COMPARISON
RANKING
Note:
+
means
better
than.
means
worse
than.
For
each
chart,
add
up
the
number
of
+s
in
each
column
to
get
the
highest-ranked
employee.
V.
FORCED
RANKING/DISTRIBUTION
Where
predetermined
percentages
of
appraisees
are
placed
in
various
performance
categories;
similar
to
grading
on
a
curve.
Arguments
in
favour
of
forced
ranking
Best
way
to
identify
highest-performing
employees
Data-driven
bases
for
compensation
decisions
Forces
managers
to
make
&
justify
tough
decisions
Arguments
critical
of
forced
ranking
Can
be
arbitrary,
unfair,
&
expose
organization
to
lawsuits
Inherent
subjectivity
Forced
rankings
tend
to
be
more
effective
in
organizations
with
high-
pressure,
results-driven
culture
EXAMPLE
Jack
Welch,
General
Electrics
former
CEO,
is
often
associated
with
a
20-70-10
distribution:
the
top
20
percent
is
rewarded
for
best
performance,
the
middle
70
percent
is
rated
average
and
the
bottom
10
percent
is
coached
for
improvement.
The
rank-and-yank
system,
also
associated
with
Jack
Welch,
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VI.
VII.
ESSAY M ETHOD
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VIII.
Focuses
on
the
key
behaviours
that
make
the
difference
between
doing
a
job
effectively
or
ineffectively.
The
rater
writes
down
anecdotes
describing
what
the
employee
did
that
was
especially
effective
or
ineffective.
Time consuming.
FIGURE
11
EXAMPLES
OF
CRITICAL
INCIDENTS
FOR
PLANT
MANAGERS
IX.
Prepared
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STEPS
IN
MBOS:
1. Goal
Setting:
organizations
overall
objectives
are
used
as
guidelines
to
set
departmental
&
individual
objectives
and
performance
standards
for
each
employee.
2. Action
Planning:
The
means
are
determined
for
achieving
the
ends
established
in
goal
setting;
identifying
the
activities
necessary
to
accomplish
the
objectives;
their
time
requirements,
resources
needed.
3. Periodic
reviews
&
Self
Control:
systematic
monitoring
&
measuring
of
performance-
by
having
the
employee
review
his
or
her
performance.
4. Feedback:
corrective
action
is
initiated
when
behaviour
deviates
from
the
standards
established
in
the
goal
setting
phase.
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Advantages
Disadvantages
BARS
Difficult to develop.
Alternation ranking
Forced distribution
method
Critical incident
method
MBO
Time-consuming.
I.
II.
III.
IV.
To
help
you
defend
your
rating,
both
to
your
own
boss
and
(if
needed)
to
the
courts.
Prepared
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RECENT
TRENDS
IBM,
Microsoft,
Accenture
and
Deloitte
are
some
of
the
companies
that
are
doing
away
with
their
annual
performance
review
process,
moving
away
from
rigid
rankings
into
more
fluid
systems.
Amazon
ensures
that
employees
can
get
feedback
anytime
from
managersa
nd
colleagues
rather
than
just
once
a
year.
GE
once
notorious
for
its
Rank
or
Yank
policy
is
rolling
out
a
process
that
focusses
on
employees
goals
rather
than
their
grades.
The
approach
is
developmental
where
employees
can
gain
access
to
their
feedback
(called
insights)
through
an
app
called
PD&GE
which
is
available
on
mobiles
and
other
platforms.
Similarly
at
Adobe,
instead
of
annual
rating
and
ranking,
employees
get
frequent
check-ins
with
their
managers.
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Prepared
by
Prof.
Pallavi
Srivastava,
Jaipuria
Lucknow
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internal
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Prepared
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Pallavi
Srivastava,
Jaipuria
Lucknow
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