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Managing Employee Performance AND Performance Appraisal

An employee performance management system includes setting organizational objectives, implementing and monitoring work, and appraising performance. An effective appraisal system provides feedback, identifies training needs, and communicates between managers and subordinates. When designing an appraisal system, factors like potential bias, different appraisal methods, and skills for management must be considered. Follow-up after an appraisal can include setting new objectives, rewards, retraining, or disciplinary action.

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Hassan Kaleem
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38 views24 pages

Managing Employee Performance AND Performance Appraisal

An employee performance management system includes setting organizational objectives, implementing and monitoring work, and appraising performance. An effective appraisal system provides feedback, identifies training needs, and communicates between managers and subordinates. When designing an appraisal system, factors like potential bias, different appraisal methods, and skills for management must be considered. Follow-up after an appraisal can include setting new objectives, rewards, retraining, or disciplinary action.

Uploaded by

Hassan Kaleem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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MANAGING EMPLOYEE PERFORMANCE

AND
PERFORMANCE APPRAISAL
PREVIEW

 The main components in a performance


management system.
 The benefits of having an effective performance
appraisal system.
 The factors to consider when designing an appraisal
system.
 The requirements for implementing an appraisal
system.
 The types of follow-up action which may be taken
after an employee’s performance has been appraised.
WHAT IS PERFORMANCE MANAGEMENT SYSTEM?

An employee performance management system is a


means to ensure that every employee works in a
manner which is aligned with organizational goals
and which ensures that the employee reaches his
maximum potential on the job.
HR SYSTEMS RELATED TO PERFORMANCE MANAGEMENT

Recruitment of workers
Training
Compensation and reward systems
Managing the performance of individual employees
PERFORMANCE MANAGEMENT SYSTEMS

 An organization’s performance management system


is designed by HR specialists.
 The performance management system is
implemented by heads of departments and all
managers.
FACTORS AFFECTING EMPLOYEE PERFORMANCE

EMPLOYEE’S
EMPLOYEE’S
PERFORMANCE
PERFORMANCE

EMPLOYEE’S
EMPLOYEE’S EMPLOYEE’S
EMPLOYEE’S EMPLOYEE’S
EMPLOYEE’S WORK
WORK
KNOWLEDGE
KNOWLEDGE SKILL
SKILL MOTIVATION
MOTIVATION ENVIRONMENT
ENVIRONMENT
COMPONENTS OF A PERFORMANCE MANAGEMENT SYSTEM

Organizational plans, including the setting of


objectives which are established for all levels down to
the individual worker.
Implementation of the work by the individual
worker, accompanied by appropriate forms of
monitoring by the worker’s manager or supervisor.
Appraisal of the work of the individual workers.
Follow-up action taken after the appraisal.
OBJECTIVES

If employees are to perform well, they must:


KNOW WHAT they are supposed to do, and
KNOW HOW to do the work.
OBJECTIVES (cont.)

The objectives/targets/key result areas/key


performance indicators established for each
employee must be:
 Capable of achievement by the employee
 Measurable
 Accepted by the employee
 Time-bound
SMART objectives
OBJECTIVES (cont.)

Performance objectives may relate to:


 Quantity of output
 Quality of output
 Behaviour of employee
 Development of employee
IMPLEMENTATION OF WORK BY THE EMPLOYEE

While the work is being carried out by the employee,


the manager must:

 Monitor;

 Give feedback regularly; and


 Coach, if necessary.
BENEFITS OF A PERFORMANCE APPRAISAL SYSTEM

 Encourages quality performance by rewarding


those who do well.
 Improves current performance by giving workers
feedback.
 Assists in identifying training needs.
 Provides documentation if disciplinary proceedings
are needed.
 Provides a channel of communication between
managers and their subordinates.
EFFECTIVE APPRAISAL SYSTEMS

 Are integrated into a performance management


system.
 Receive top management support.
 Are customized to the needs of the organization.
 Are acceptable and understandable.
 Are reliable and unbiased as far as possible.
POTENTIAL BIAS IN PERFORMANCE APPRAISAL

Recency effect:
Recency bias is the tendency to think that trends and
patterns we observe in the recent past will continue in
the future. Predicting the future in the short term,
even for highly changeable events like the weather or
the stock market, according to events in the recent
past, works fine much of the time
POTENTIAL BIAS IN PERFORMANCE APPRAISAL

Halo effect
When we meet someone, and the first impression of him is very positive, then we
tend to ignore the negative characteristics in the person and concentrate only on
the positive characteristics. We start seeing the person in the halo of the
positive first impression. This is called Halo effect. For example, if the
interview starts with a very positive statement from the interviewee, then the
interviewer tends to form a positive impression about the interviewee.
Horn Effect:
If our first impression about a person is negative, we tend to ignore his positive
characteristics and concentrate only on the negative ones. We tend to see the
person in the light of the negative first impression and hence there is higher
probability that we will not like the person. This is called horn effect. Eg, if an
interview starts with a negative statement from the interviewee, there is higher
chance that he would be rejected due to horn effect.
POTENTIAL BIAS IN PERFORMANCE APPRAISAL

Central tendency
Central tendency occurs whenever an appraiser rates
all his subordinates as being average on all criteria
being evaluate
Leniency tendency occurs when the appraiser gives
high ratings to all his subordinates
POTENTIAL BIAS IN PERFORMANCE APPRAISAL

Prejudice (emotional bias)


 many people are prejudiced whether knowingly or unknowingly. They hold
negative opinions about a particular group of people.
POTENTIAL BIAS IN PERFORMANCE APPRAISAL

Fatigue
when an appraisal system requires a manager to
appraise all his subordinates at the same time, perhaps
within 2 week period, fatigue may blur his judgment.
WHO GIVES INPUT INTO AN APPRAISAL?

THE MANAGER

OTHER PARTIES THE EMPLOYEE

COLLEAGUES SUBORDINATES
APPRAISAL METHODS

• Comparative methods
Compare the employee's performance to others in similar positions.

• Trait rating scales


The graphic rating scale, a behavioral method, is perhaps the most popular choice for performance
evaluations. This type of evaluation lists traits required for the job and asks the source to rate the
individual on each attribute.

• Essay technique
In an essay appraisal, the source answers a series of questions about the employee’s performance
in essay form. This can be a trait method and/or a behavioral method, depending on how the
manager writes the essay. These statements may include strengths and weaknesses about the
employee or statements about past performance.
SKILLS NEEDED FOR EFFECTIVE PERFORMANCE
MANAGEMENT

 Observation of performance
 Coaching
 Counselling
AFTER THE APPRAISAL DISCUSSION

Follow-up???
 Set objectives for next time period
 Give rewards
 Provide retraining
 Institute disciplinary action
DISMISSAL FOR POOR PERFORMANCE

Prior to dismissing an employee for


poor performance, an employer must:
 Give warnings to the employee
 Provideassistance so that he or she can
improve
 Givesufficient time for the employee to
improve
REVIEW

 The main components in a performance


management system.
 The benefits of having an effective performance
appraisal system.
 The factors to consider when designing an appraisal
system.
 The requirements for implementing an appraisal
system.
 The types of follow-up action which may be taken
after an employee’s performance has been appraised.

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