...8 Performance Management and Appraisal Learning Outcomes After studying this chapter you should be able to: 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 Discuss the difference between performance management and performance appraisal Identify the necessary characteristics of accurate performance management tools List and briefly discuss the purposes for performance appraisals Identify and briefly discuss the options for “what” is evaluated in a performance appraisal Briefly discuss the commonly used performance measurement methods and forms Identify and briefly discuss available options for the rater/evaluator Briefly discuss the value and the drawbacks of a 360° evaluation Identify some of the common problems with the performance appraisal process Identify the major steps we can take to avoid problems with the appraisal process Briefly discuss the differences between evaluative performance reviews and developmental performance reviews Define the following terms: Performance management Performance appraisal Motivation Traits Behaviors Results Critical incidents method Management by Objectives (MBO) method Narrative method or form Graphic rating scale form Behaviorally Anchored Rating Scale (BARS) form Ranking method 360° evaluation Bias Stereotyping Electronic Performance Monitoring (EPM) Chapter 8 Outline Performance Management Systems Performance Management Versus Performance Appraisal The Performance Appraisal Process Accurate Performance Measures Why Do We Conduct...
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...Performance Appraisal system Performance appraisal is a system of review and evaluation of an individual or team’s job performance. An effective system assesses accomplishments and evolves plans for development. Performance management is a process that significantly affects organizational success by having managers and employees work together to set expectations, review results, and reward performance. Its goal is to provide an accurate picture of past and / or future employee performance. To achieve this, performance standards are established. I. The Performance Appraisal Process Many of the external and internal environmental factors previously discussed can influence the appraisal process. Legislation requires that the appraisal systems be nondiscriminatory. The labor union might affect the appraisal process by stressing seniority as the basis for promotions and pay increases. Factors within the internal environment can also affect the performance appraisal process. The type of corporate culture can serve to help or hinder the process. Identification of specific goals is the starting point for the PA process. After specific appraisal goals have been established, workers and teams must understand what is expected from them in their tasks. Informing employees of what is expected of them is a most important employee relations task. At the end of the appraisal period, the appraiser observes work performance and evaluates it against established performance standards. The evaluation...
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...Performance Appraisal Performance appraisal is concerned with determining how well employees are doing their jobs, communicating that information to employees, agreeing on new objectives and establishing a plan for performance improvement. Performance appraisal, by providing a dynamic link to employee recruitment, selection, training and development, career planning, compensation and benefits, safety and health, and industrial relations, is a vital tool for strategy execution. It signals to managers and employees what is really important; it provides ways to measure what is important; it fixes accountability for behaviour and results; and it helps to improve performance. Finally, it’s necessary to defend the organisation against individuals who legally challenge the validity of management decisions relating to promotions, transfers, salary changes and termination. Performance appraisal may be viewed as an overall measure of organisational effectiveness: organisational objectives are met through the effort of individual employees. If employee performance is improved, the organisation will lift its performance. However, it should be noted that some experts do not accept these assumptions. Performance appraisal typically involves measuring how well an individual employee is doing their job against a set of criteria, providing feedback and creating development plan. The performance process generates information that may be used for administrative purposes and/or developmental...
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...317.1.6-03-06 and 317.1.6-08-10 The manufacturing plant currently does not have a sound system of performance evaluation. The current system addresses the friendliness of the employee, the orderliness of the employee’s workspace, and the attitude of the employee towards others. The current performance evaluation does not address the needs of the employee by properly preparing the employee for the goals of the company. The employee has not been given or been informed of the standards of the company. Standards or goals, when issued upfront, enhance performance, motivate, and in turn serve as a basis to evaluate after a set period of time. Performance standards should be set for all bottom-line practices including quantity, quality, time used, and cost. An effective performance evaluation system is based on accurate performance standards that are easily defined, measured, and standardized for all employees. Behavioral evaluations are based on observable aspects of performance while trait evaluation involves personal judgment regarding characteristics of an employee related to performance. Some examples of trait appraisals would be initiative, leadership, and attitude. Behavioral evaluation is based on whether or not an employee is actively aware and proactive in developing procedures to improve the organization. It is also necessary to evaluate the specific job related criteria needed to perform the activity. In this case, the engineer is described as a bright and...
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...PERFORMANCE APPRAISAL Performance appraisal is assessment of how staff members are doing his job. Employee performance is the product of three underlying factors, i.e. ability, motivation and environment. Any defect in any of the three will impair his performance. It is quiet natural for a subordinate wanting to know what is supervisor thinks of his/her work. Performance appraisal is the evaluation of work done (quantity, quality and the manner it is carried out.) during a specified period against the background of the total work situation. DEFINITION: Performance appraisal of an employee refers to an evaluation of employee’s performance. OBJECTIVES: * To provide an opportunity for reflection and feedback on work performance and the work environment for a given period of time between an employee and supervisor. * To acknowledge and encourage appropriate and above standard performance. * To identify and remove distracters, dissatisfies and obstacles as well as ineffective behaviors. * To identify areas of growth for employees and organizations. * To provide data for management decisions concerning merits, increments, incentives, rewards, promotion, transfer, demotion or discharge from service. * To create a desirable culture and tradition in the department. * To meet the requirement for manpower planning and organizational development like identification of employees with promotion potential and developmental needs – what is expected of them...
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...EFFICIENCY OF EXISTING PERFORMANCE APPRAISAL SYSTEM FOR OFFICERS IN SRI LANKA NAVY BY LCdr (ASW) TR DANIEL PGD in Defence Management Naval and Maritime Academy (Accredited to General Sir John Kotelawala Defence University) DECLARATION I declare that this dissertation contains no material which has been accepted for the award of any other degree or diploma in any university or equivalent institution, and that to the best of my knowledge and belief, contains no material previously submitted or written by any other person, except where due reference is made in the text of this Dissertation. I carried out the work described in this under the supervision of Captain (ND) KJ Kularathne, RSP,Psc,MSc(D&SS) ........................................................ Date:.......................... TR DANIEL 7001 COMMENTS OF THE SUPERVISOR ..................................................... Date ........................................ KJ KULARATHNE,RSP,Psc,MSc(D&SS) Captain (ND) Sri Lanka Navy ABSTRACT Sri Lanka Navy is one of the largest organization in Sri Lanka with nearly 55000 men & women are working to date .SLN is not only one of the largest, but also diverse as more than 20 major professions are cohesion to form this organisation. Officers form the backbone of this large organisation; SLN and better performance of officers is a necessity to achieve organisational...
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...or informal means of appraising their employees’ performance. If employees’ performance is good, organizations will want to reinforce it; and if it is bad, they will try to take corrective actions. Performance appraisal is the ongoing process of evaluating and managing both the behavior and outcomes in the organization (Carrell, Elbert & Hatfield, 2008). It is not a process that happens once a year or every six months, but one that happens every day. Stripped to its essentials, performance appraisal always involves setting work standards, assessing the employees’ actual performance relative to those standards, and providing feedback to the employees with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par (Dessler, 2011). Indeed, performance appraisals are widely used for administrating wages and salaries, giving performance feedback, and identifying individual employee strengths and weaknesses (Mathis & Jackson, 2011). Definition of Performance Appraisal P erformance appraisal is the process of evaluating the behavior of the employees in the work place (Maxwell, 1992). This process assumes that the employees are aware of their performance standards, and that the supervisor also provides the employees with the feedback, development, and incentives required to help the person eliminate performance deficiencies. Basically, performance appraisal is intended to engage, align, and coalesce individual...
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...Performance appraisal Performance appraisal is a universal phenomenon in which the organization is making judgment about one is working with and about oneself. It serves as a basic element of effective work performance. Performance appraisal is essential for the effective management and evaluation of staff. It aims to improve the organizational performance as well as individual development. The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Performance appraisals have been increasingly implemented by most modern organization as a tool for employee assessment. Performance is an employee's accomplishment of assigned work as specified in the critical elements and as measured against standards of the employee's position. The term “Performance Appraisal” is concerned with the process of valuing a person’s worth to an organization with a view to increasing it. Traditional Appraisal system; Performance appraisal is developed as a simple method of income justification. Appraisal used to decide whether the salary of an individual was justified or not. The decrease or increase in pay depends upon employee’s performance. Modern Appraisal System: Performance appraisal is defined as a structured formal interaction...
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...EMPLOYEES’ PERCEPTION OF THE PROBLEMS AND PRACTICES OF EMPLOYEE PERFORMANCE EVALUATION: a Case study of Awash International Bank (AIB) BY: ZELALEM BAYISA GURMESSA A project paper submitted to the school of graduate studies of AAU in partial fulfillment of the requirements for the degree of Masters of Business Administration [MBA] Advisor: Dr. TILAHUN TEKLU Assistant Professor of Management Department of Management August, 2007 Addis Ababa University School of Graduate Studies MBA Program Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB) BY ZELALEM BAYISA Approval Board Committee ________________________ Chairman, Graduate Studies __________________ Research Advisor __________________ Examiner __________________ Examiner ________ Signature _________ Signature _________ Signature ________ Signature Dr. Tilahun Tek lu Assistant Professor of Management Department of Business Management Faculty of Business and Economics Addis Ababa University Addis Ababa, Ethiopia C E R T I F I C A T E This is to certify that this project work, “Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB)”, undertaken by Zelalem Bayisa for the partial fulfillment of Master’s of Business Administration [MBA] at Addis Ababa University, is an original work and not submitted earlier for any degree either at this University or any...
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...background of performance appraisal is quite brief. Its roots in the early 20th century and can be referred to Taylor's pioneering Time and Motion studies (Archer North, 2010). Unfortunately, this is not very helpful because for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the World War Two which is not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second most aged profession. People differ in their talents, skills and their aptitudes. There are always some inequalities between the quality and quantity for the same work and same job perform by two different people. Therefore, performance management and performance appraisal is necessary to critically understand each of the employee’s abilities, competencies and relative merit and worth for the organization. In a simple explanation, employee’s performance is being rates by the performance appraisal. This performance appraisal is universally used in the society. According to Khan (2008), it is an objective way to determine and evaluate employee work-related behaviour. An employer evaluating their employees is a truly classic concept. It is a crucial part or also can be seen as the heart of performance measurement...
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...JDT2 Human Resources Task 3 Performance Appraisal System “Presenter’s Notes” Western Governor’s University Grace H. Kwasman April 8, 2014 Introduction “The bottom line in leadership isn't how far we advance ourselves but how far we advance others.” John C. Maxwell Performance Appraisal Systems Performance appraisal is a process by which the job performance of an employee is evaluated. It is a part of employee’s professional development and consist of regular reviews of employee performance within organizations (Wikipedia.org). The performance appraisal is a quintessential part of the human resources management in any organization. Section A- Benefits Big and small, any organization must adopt an effective performance appraisal systems in order to keep their workforce productive, meet company objectives and at competitive edge in today’s market. When effectively used, performance appraisals the benefits to the employee, the manager and the company are invaluable: a. Alignment- It provides a forum to discuss clear understanding of the expectations and what actions are needed to achieve those job expectations for the employee. The manager/company gets the opportunity to connect team and individual objectives with the organizational strategic goals. b. Accountability- During the performance appraisal, the employee are able to gain a better understanding of their faults, strengths and are able to make plan for improvement as needed...
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...Performance Appraisal Week 3 Assignment BUS 303 Human Resources Management Performance Appraisal Performance appraisals are how an organization can rate and evaluate the accomplishments of their employees. Performance is considered to be the productivity, attitude, behaviors, and team skills. When an organization rates their employees they are also looking at that evaluation as it contributes to the organizations objectives and goals. Performance appraisals are important to an organization because they impact the way an employee performs within that organization as a whole. There are multiple ways to approach a performance appraisals, without them companies would have no means to evaluate how their employees are contributing to their company. “Performance appraisal is the process through which employee performance is assessed, feedback is provided to the employee, and corrective action plans are designed. “ (Youssef, 2012) There are multiple factors to consider when deciding to conduct a performance appraisal on an employee. The most important being how will the appraisal be conducted. It must be decided whether or not the evaluations will be conducted by the company itself, or will the organization hire out a company to do the evaluating. Will the employee rate themselves, will the supervisors rate the employees or vice versa, or will other team members evaluate their co-workers. Most organizations use a mixture of these options to get a well-balanced evaluation. The...
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...Developing a Performance Appraisal System Developing a Performance Appraisal System All organizations must have some staff in order to operate. These employees, paid or unpaid, need to be evaluated from time to time for pay raises, advancement, or rewards. The tools and evaluation techniques for performance appraisal are important and need to consider all aspects of an individual’s job position, attitude, and effectiveness in interactions with clients. Deciding which method is best suited to the specific organization, designing forms for evaluation, and distributing these tools often falls to the human resources department since their primary job duties are directly tied to employees. What is a performance appraisal system? Loosely defined, a performance appraisal system is the method by which an individual’s employment is evaluated by supervisors or management personnel to define how well or how poorly job duties are being performed. Additionally, the information gained can be used to counsel employees, document problems, or show what areas of training may need to be reviewed. Feedback for employees is one of the primary reasons appraisals are performed; however, they are equally important to the operation of the organization. Without some form of evaluation, there would be no way to know how well specific employees are doing their jobs and what aspects of employment may need to be changed to allow the agency to function more efficiently. Humans have an inherent need...
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...According to Mondy (2002) “Performance appraisal is a formal and critical system of review and evaluation of an individual or a team’s job performance.” (p. 279). In most firms, however, performance appraisal pays more attention on individual employee’s performance rather than the accomplishment in group. Moreover, the achievements and develop plans of individual employee as well as the team development, aims, objectives should be able to assess by an efficient performance appraisal system. When employees done well in their task or fail to achieve the target of job, all these performance will be detected by a performance appraisal system. Figure 1 The Performance Appraisal Process The figure 1 shown above is the process of performance...
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...A PROJECT REPORT ON “EMPLOYEE’S PERFORMANCE APPRAISAL” FOR ANIL INDUSTRIES KATNI PVT. LTD. SUBMITTED TO MODY INSTITUTE OF TECHNOLOGY AND SCIENCE SUBMITTED BY VISHAKHA KEWLANI (BATCH – 2011-2014) GUIDED BY DR. AJAY VERMA DECLARATION I, the under signed, hereby declare that the project report entitled “Performance Appraisal” is a research work made for Anil Industries Katni Pvt. Ltd. is genuine and benefited work presented by me under the guidance of Dr.. The empirical findings in this project report are based on the data collected by me. The matter presented in this report is not copied from any source. I understand that any such copy is liable to the punishment in way the university authority deems fit. The project Report is submitted to Mody Institute of Technology and Science, in the partial fulfillment of the Bachelor’s Degree course in Business Administration. ACKNOWLEDGEMENTS My training at Anil Industries Katni Pvt., Ltd. was a great experience to gain the knowledge one could acquire about Human Resource. The practical knowledge that I have gained during this training period has helped me tremendously to improve my knowledge about Performance appraisal system. I am extremely thanked to Mr. Ishwar Kewlani (Manager, HR.) who gave me an opportunity to work in such a highly esteemed organization. I would like to express my deep sense of gratitude to Mr. Sandeep Kewlani for his inspiring guidance, constant encouragement...
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