Performance appraisal in Human Resource Management

PREJI M P,
ASSISTANT PROFESSOR, IITTM, BHUBANESWAR.
Performance Appraisal

What Appraisal Is
 Performance appraisal is a formal, structured
system of
 measuring and
 evaluating an employee’s job related behaviors
and their potential for greater contributions to the
organizations
2Preji M P,Assistant Professor, IITTM, Bhubaneswar

Purpose of Appraisal
 The purpose of appraisal is to ascertain an
individuals present and the future value of the
organization.
 Employee’s present value
 is assessed by his past performance, while
 future value is determined by his present
potential. A good appraisal will bring into light
these aspects

Critical aspects
 Performance must be linked to results
 Performance is tied to results ( that produces
results)
 Behavior can be active or passive (not doing
something can also bring results)

Some dilemmas
 Many performance appraisal system confuse
performance with personality traits (
honesty, punctuality, patience etc)
 However personality traits should be a
function of recruitment and selection and not
performance appraisal. A person with out
those traits should not be hired at all.

Performance appraisal
 Performance appraisal on the other hand is
concerned with behaviors that effect
performance
 Behaviors such as punctuality, cost
consciousness and sociability are important
but it is the result of those behaviors that
matters in a performance appraisal and not
the behaviors themselves.

Concept of Performance appraisal
 To summarize performance appraisal is
concerned with work that is performed and
not the characteristics of the person who is
performing it

Benefits of Performance
appraisal
 Performance appraisal feed other
development programs such as career plans
and succession plans
 It also helps in reviewing and improving upon
recruitment and selection methods adopted
 It is used to compensate and reward (
increments, incentives, bonus etc)
 Ascertain staffing decisions such as
promotions, transfers etc

Long term benefits
 Performance management
 Relative value of the individuals contribution to
the organizational goals
 Performance improvement
 It encourages continued successful performance
and identifies weaknesses for improvement in
order that employee becomes more effective and
productive
 Compensation
 It rewards employee according to their
performance

Long term benefits
 Identifies potential
 It identifies employees that can be developed for
higher responsibilities
 Communication
 It establishes a dialogue between the superior and
subordinate on a regular basis to improve on
contributions
 Feedback
 It let an employee know what they are doing. This
gives emotional security and a chance to make
corrections if needed while taking pride of
achievements

Long term benefits
 Development
 It provides the framework for purposeful human
developmental inputs.
 Human resource planning
 It helps the organization take stock of human
capabilities and the knowledge and skill wealth
that it has

Techniques of appraisals
 Management by objectives ( MBO)
 180 degree and 360 degree assessment
 Appraisal interview’s
 Performance counseling

MBO
 MBO is an approach in management. It puts
goals and objectives at the heart of the style
of management. The philosophy of the
people is
 All people are responsible
 Individuals and organizations can grow together
 Assessment of performance should be
transparent
 Human potential is vital for success

MBO
 The main fault of other appraisal system is
the element of subjectivity like trait method.
 If it is based on MBO – it will be linked to
outcomes resulting in finding answers to
questions like
 Were the standards not met?
 Was there a loss in revenue ?
 Were services not delivered on time?
 Was there any wastage of money and if so how
much and because of what?

180 DEGREE & 360 DEGREE
 This system (180 degree) believes that every
individual is responsible to give the same
amount of attention to internal customers
(colleagues) as they would do it for external
customers
 This has become a formula for team work.
 It believes that internal people who are the most
influenced by a job position must be able to give
a feedback on
 whether they are getting the right service and
cooperation from a job position that helps them to
perform high standards

CONTD:-
 Eg:- 180 degree
 Front office receptionist – coordinates with the
telephone operator, reservationist, front office
cashier, housekeeping supervisor and bell captain.
 180 degree assessment system makes peers
assess his/her performance in addition to their
immediate superior.
 it is considered as a reasonable stepping stone to
the 360 degree system.

360 degree appraisal

360 Degree
 360 degree assessment includes the
subordinates as well. Through this a person’s
leadership is also assessed.
 An organization's culture need to be matured
enough and transparent to adopt a 360
degree assessment because nobody normally
likes to be assessed by juniors.

“Full-circle” feedback
 360 degree feedback is also known as ‘full-circle’
feedback, multi-rater feedback, upward &
downward appraisal and peer review.
 It involves being appraised by ‘multi-sources’
such as
 peers,
 subordinates,
 managers,
 customers,
 as well as self.

Rationale
 The rationale behind the use of 360-degree
feedback is that it is hard to discount the
views of just one person, which normally
represented by a line manager.
 It is normally used as a learning and
development aid in order to give individuals
 better information about their
skills, performance, and working relationships
than more traditional appraisal arrangements
based on line managers’ assessment alone. This is
all well and good if 360 degree done correctly

APPRAISAL INTERVIEW
 The appraisal interview is the occasion when
 a superior and subordinate meet to discuss the
performance of the subordinate in a given period.
 To make the meeting successful, both the
superior and subordinate have to prepare for
it believing that it is an important moment for
 both- the individual and the organization.

SUPERIOR’S TASK
 Inform the subordinate of the date and time
of the interview. The time must be
convenient to both as neither must be under
pressure.
 Advice the subordinate to come to the
meeting with their self assessment
 Honour the allotted interview time
 Review personally the performance record of
the individual

Subordinate’s Task
 Review the objectives set and evaluate the
achievements in the past performance
period. List the outstanding achievements in
self assessment forms.
 List reasons for not meeting some of the
targets set.
 Complete the self assessment forms which
also elicits the career aspirations, strengths,
areas of improvement, training and
development required.

The appraisal Interview
 Typically the interview will have the following
phases.
 Re explaining the purpose of meeting
 Discussing performance
 Identifying the strengths and areas of
improvement
 Reviewing career aspirations and recording
development plans

Emphasis will be on
 It is meant to review past and record future
directions
 All about individual and how to improve one’s
potential
 It will be an open discussion
 Disagreement will be recorded

How It goes on
 Normally an appraisal interview should go on
smoothly because the superior and
subordinates are in close communication
during the performance year.
 Quarterly reviews and mid-yearly reviews
reduce the element of shock
 Subordinate is given a chance to discuss their
performance first based on self assessment
form. Both then tally their perception against
performance.

How it works
 There should be little difference/ disagreement
 if performance is supported with actual data against
standards.
 The superior will discuss the rating that they are
going to give. Disagreements if any, will be
recorded for review by second appraiser.
 Both will finally review the career plans by
recording the programes (training, coaching
inputs , self learning) attended and future inputs
required against expected performance

PERFORMANCE COUNSELLING
 Performance counseling is a
 one –one interaction between an employee and
the counselor.
 The basic objective is to improve the performance
and address the grievance if any
 Such a meeting takes place if a deficiency in
the way employee is performing is identified.

The sources
 The deficiency in employee performance can
be reported from any of the following sources
 The supervisor’s opinion
 A shortfall in agreed outcomes
 Customer complaints
 Colleagues grievances
 Procedural irregularities
 Equipment abuse

The scenario
 Typically most employees tend to blame
 Boss
 Non cooperation from team members
 Faulty systems and procedures
 Faulty equipment
 Unreasonable guests

Options for improving
performance
 Coaching in some skills
 Self- learning using recommended reading
 Cross training
 Team building
 Attending training programs

DEMOTIVATION ?
 The employee and the counselor should be
able to
 identify exactly the reason for demotivation and
jointly work on resolving hurdles.
 There must be time bound meetings with
follow up meetings.

Some reasons for de motivation
 Lack of capability to do job
 Lack of challenges in the job
 Lack of recognition and attention
 Lack of future for advancement
 Inadequate support
 Poor team work

REWARD AND RECOGNITION
SCHEMES
 A reward is a physical token of appreciation
of service, effort or achievement . Rewards
can be in the form of cash or in the form of
non cash
 Recognition is an official praise of
service, effort or achievement.
 An incentive is not considered as a reward
most of the time as it is manipulative. Often
uncommitted workforces needed incentives
to perform.

Non Cash Rewards
 The non cash awards can be
 Free vacation
 Free meal
 Memberships
 Write off loans

RECOGNITION
 Recognition will always be done in public. It
raises the status of the individual among his
peers. It also raises his self esteem
 A simple pat on the shoulder
 Words of praise
 Certificates of recognition
 Gifts of recognition
 Trophies of recognition

Performance appraisal in Human Resource Management

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