Performance appraisal

Part II

 Performance appraisal , also known as employee appraisal , is a method by which the job performance of an employee is evaluated (generally in terms of quality , quantity , cost and time )

 Performance appraisal is a procedure that involves: - setting work standards - assessing the employees actual performance relative to those standards - providing feedback to the employees (with the aim of motivating him to eliminate deficiencies or to continue to perform above par

Defining performance appraisal.

it is a systematic description of an employees job relevant strength and weaknesses. --- Wayne Cascio

 Larsen & Toubro (L & T), with help of IIM, Ahmedabad faculty, was the earliest Indian company to introduce a developmentoriented appraisal system

Comparing Performance Appraisal & Performance Management

Performance management is a integrated process Performance management is a process that unites goal setting , performance appraisal, and development into single , common, system whose aim is to ensure that employees performance is supporting the companys strategic aims It means daily or weekly interaction to ensure continuous improvement in the employees capacity and performance And ensuring that employee has the training , he needs to the job

 This process starts the year with performance planning and is integral part of the way people are managed through out the year

Questions arise.
Why do we measure performance? How do we measure performance?

Need and importance

It reflects total quality management - PMs emphasis on the integrated nature of goal setting, appraisal and development Strategic focus: every employees competencies and efforts must focus on helping the company to achieve its strategic goals - continuous improvement is a management philosophy , so every employee and team must continuously improve performance, from one period to the next

Need and importance

Provide information about the performance ranks. -- decisions regarding salary fixation, confirmation, promotion , transfer and demotion are taken based on performance as practiced in Indian Rayon

Need and importance

Provide feedback information about the level of achievement and behavior of employees - practice in Raymond. Helps to determine training and developmental needs

Nature of performance appraisal

We need to answer the following questions: # what should be evaluated? # who should be evaluated? # when should the evaluation take place? # who is responsible for conducting appraisal?

What should be evaluated? Of PA

Generally it depends on the job analysis, the purpose , & type & level of employees. For e.g. contents to be appraised for an officers job
Regularity of attendance Ability to work with others Leadership style and abilities Initiative Technical skill Ability to grasp new things Creative skills Honesty & sincerity

Company example of performance measurement

Corning, KPMG Peat Marwick: -track levels of employee satisfaction through surveys, interviews , corporate statistics, - measure employee involvement in key corporate functions Federal express, AT & T UCS : -monitor the percentage of satisfied employees and evaluate employee turn over

who should be evaluated

Everyone in the organization needs to be evaluated on routine and objective basis.

When should be the evaluation take place

It depends upon number of factors: * nature of work * tenure of employee * employees need * managements desire

Who should conduct PA

Immediate superior Peers self Subordinate Panel of members Personnel department Clients Independent consultants Top management

Company examples of PA
measure newer reps more frequently to concentrate coaching efforts daily performance measurement reporting, design a balanced scorecard performance measurement system

Company examples of PA
Provide a core set of metrics for use across the organization