7 perf apprsl & mgmt

Performance Appraisal
and Management

Performance Appraisal: Process, Methods; Factors that
distort appraisal
 Performance Management: Process, Relationship to
Performance Appraisal, Potential Appraisal and its
relevance


 Objective assessment on an individual’s performance
against well defined benchmarks
 Assessment should not be confined to past performance
alone
 Potential for future performance should also be
assessed
 Other terms used for Performance Appraisal:
 Performance rating, employee assessment, performance
review, personnel appraisal, performance evaluation,
employee evaluation, merit rating
 Closely linked to Job Analysis (Ref.Fig.10.1)

Objectives of Appraisal
 To effect promotions based on competence and
performance.
 To confirm the services of probationary employees
upon their completing the probationary period
satisfactorily.
 To assess the training and development needs of
employees.
 To decide upon a pay raise where (as in the
unorganised sector) regular pay scales have not
been fixed.

Objectives of Appraisal (contd..)
 To let the employees know where they stand in terms of their
performance and to provide constructive criticism and guidance to
help them develop
 To improve communication
 Finally, performance appraisal can be used to determine whether HR
programmes such as selection, training, and transfers have been
effective or not.

Multiple Purposes of Appraisal
General Applications Specific Purpose
Identification of individual needs
Performance feedback
Developmental Uses Determining transfer and job assignments
Identification of individual strengths and developmental
needs

Salary
Promotion
Retention or termination
Administrative Uses/Decisions Recognition of individual performance
Lay-offs
Identification of poor performers

HR planning
Determining organisation training needs
Organisational Evaluation of organisational goal achievement
Maintenance/Objectives Information for goal identification
Evaluation of HR systems
Reinforcement of organisational development

Criteria for validation research
Documentation Documentation for HR decisions
Helping to meet legal requirements

How Performance Appraisal can Contribute to Firm’s
Competitive Advantage
Improving
Performance
Making
Strategy and
Correct
Behaviour
Decisions

Competitive
Advantage

Ensuring
Values and
Legal
Behaviour
Compliance

Minimising
Dissatisfaction
and Turnover

How Performance Appraisal can Contribute to
Firm’s Competitive Advantage

 Improving performance:
 By directing employee towards organizational goals
 By monitoring employee behaviour to ensure that the goals
are met
 Making correct decisions:
 Appraisal is a critical input in making decisions on pay rise,
promotion, transfer, training etc
 Ensuring legal compliance:
 Fair appraisal systems help minimise performance-related
litigation

How Performance Appraisal can Contribute to
Firm’s Competitive Advantage

 Minimising dissatisfaction and turnover:
 Fair and accurate appraisal results in high motivation and
increased job satisfaction
 Consistency between organizational strategy and
behaviour:
 Employees want to be rewarded and hence they engage in
behaviour that they perceive will be rewarded
 Performance appraisal helps in judging this consistency
 It helps in bringing to the fore any negative consequences
of the strategy-behaviour link

Organizational Strategy and
 Based on strategy, organizations can be grouped as
defenders, prospectors and analysers
 Defender strategy:
 Have a narrow and relatively stable product-market
domain
 Primary attention is to improve the efficiency of existing
operation
 Performance appraisal is used for identifying training
needs and may be more behaviour-oriented

 Prospector strategy:
 These organizations continuously search for different
product and market opportunities
 Emphasise on skills identification and acquisition of
human resources from external sources
 Performance appraisal is used to identify staffing needs;
emphasis is on results
 They focus on division and corporate performance
evaluation as they compare with other companies during
the same evaluation period

 Analyser strategy:
 Operate in two types of product-market domains: one
is stable; other is changing
 They watch their competitors closely and rapidly adopt
the ideas that appear promising
 Both skill building and skill acquisition are emphasised;
training programmes are extensively employed
 Both training and staffing needs are identified through
appraisals
 Appraisal systems are considered at individual, group
and divisional levels
 Examine current and past performance within the
organization

The Performance Appraisal
Process Objectives of

Establish Job
Expectations

Design an Appraisal
Programme Feedback

Appraise Performance

Performance Interview

Performance
Management Archive Appraisal Data

Use Appraisal Data for
Appropriate Purposes

The Performance Appraisal Process:
Objectives of Appraisal
 Individual approach: focus on correcting the problems
 Effecting promotions and transfers, assessing training needs,
awarding pay increase, lay offs etc

 Systems approach: focus on improving the performance
 Appraisal system evaluates opportunity factors
 Physical environment: noise, ventilation, lighting, available
resources-human and computer assistance
 Social processes: leadership effectiveness

 Emphasis is on how the work system affects an individual’s
performance

Establish Job Expectations
 Inform the employee what is expected of him
or her on the job
 A discussion is held with the superior to
review the major duties contained in the job
description
 Individuals should not be expected to begin
the job until they understand what is expected
of them

Design Appraisal Programme
 Formal vs. informal appraisal
 Whose performance is to be assessed?
 Who are the raters?
 What problems are encountered?
 How to solve the problems?
 What should be evaluated?
 When to evaluate?
 What methods of appraisal are to be used?

The Performance Appraisal Process: Design
Appraisal Programme- Formal vs. informal
 Formal Appraisals:
 Occur at specified time periods
 Required by the organization for the purpose of
employee evaluation
 Most often used as primary evaluation
 Informal Appraisals:
 Occur whenever the supervisor feels the need for
communication
 Discussions are held in private
 Helpful for performance feedback
 Should not replace formal appraisal
 Both can be used in combination

Appraisal Programme- Whose performance
should be rated?
 Is it individuals or teams?
 Ratee may be defined as the individual, work
group, division or organization
 Ratee may be defined at multiple levels too
 E.g. at the work group level for merit pay
increases and at the individual level for training
needs assessment
 Group-level appraisals may be necessitated
by two conditions:
 Group cohesiveness
 Difficulty in identifying individual contributions

Appraisal Programme- Who are the raters?
 Immediate supervisor
 Subordinates
 Peers
 Clients (internal or external)
 Rating committee: consists of immediate supervisor
and few other supervisors who come in contact with
the employee
 Beneficial when employee has to perform a variety of
tasks in different environments
 Specific benefits:
 Objectivity in rating as more than one rater is involved

 Raters at different levels observe different facets of

performance
 Disadvantage:
 Diminishes the role of the immediate supervisor

 3600 system of appraisal: superiors, peers, subordinates
and clients are involved
 Developed at GE, US in 1992
 Popular in India too: Reliance Industries, Wipro, Godrej
Soaps etc. use this system
 Self appraisal: employee himself evaluates his
performance
 Provides the employee with an opportunity to participate
in evaluation
 Specifically so if combined with goal-setting (as in MBO)
 Employees are less defensive
 Best suited when executive development is the main
purpose: managers clearly assess their areas of
differences
 May be more lenient, less viable, more biased and less in
agreement with the judgement of others

 Two requisites that must be fulfilled by the
rater:
 Must be free from bias
 Must have an opportunity to observe the full
spectrum of activities and behaviour of the
ratee over an extended time period

Appraisal Programme- What are the Problems of
Rating?
 Leniency or severity: Either of these makes the
assessment subjective and defeats the purpose of
appraisal
 Requiring the ratings to conform to a forced distribution
is one way to reduce this error

 Central tendency: Employees are incorrectly rated
near the average or middle of the scale
 The rater tries to play safe by doing this
 Terms like ‘satisfactory’, ‘average’ etc. are used
 Forced distribution can also create problems with
accuracy; especially when most employees are
performing above standard

Rating?
 Halo error: One aspect of an individual’s
performance influences the evaluation of the
entire performance of the individual
 Rating employees separately on each of a
number of performance measures and
encouraging raters to guard against the halo
effect help in reducing the halo effect
 Rater effect: Favouritism, stereotyping and
hostility
 Perceptual set: Rater’s assessment is
influenced by previously held beliefs

Rating?
 Primacy and recency effects: Ratings are heavily
influenced by behaviour exhibited by the ratee
 During the early stages of the review period (primacy)
 Nearing the end of the review period (recency)
 To avoid this error, the rater may be asked to consider
the composite performance of the ratee
 Rater must also be aware of the tendency of ratees to
improve odds in their favour during the rating period
 Status effect: Overrating of employees in higher-level
or higher-esteem jobs and underrating employees in
lower-level or lower-esteem jobs

Rating?
 Performance dimension order: Two or more
dimensions on a performance instrument
follow or closely follow each other
 Both may describe similar qualities
 Rater rates the first one accurately and rates
the second similar to the first
 Rating would differ if the dimensions had been
arranged in a different order
 Spillover effect: allowing past ratings to
unjustifiably influence current ratings
 Other Errors: Self study

Appraisal Programme- Solving Rater’s Problems
 Provide training to raters
 This training should address real-life
problems like union influences
 Video tapes are played and trainees are
asked to rate
 Trainer gives the correct rating and illustrates
the rating errors made
 Self Study: Factors that help improve
accuracy, Factors that may lower accuracy,
Abilities of right evaluators (Page 292-293)

Appraisal Programme- What Should be Rated?
 Objective measures: Quantifiable and highly useful in
performance measurement
 Quality
 Quantity
 Timeliness
 Cost effectiveness

 Subjective criteria: Dependent upon human judgements; must
be based on careful analysis of behaviours viewed as
necessary for job performance
 Need for supervision
 Interpersonal impact
 Community service – Employer Supported Volunteering
(ESV). Eg: Standard Chartered Bank, IBM, Mindtree,HSBC
 Corporate Social Sustainability (CSS)

 Potential appraisal -PHILIPS

Appraisal Programme- When to Evaluate?
 Can be carried out once in three months, six
months or a year
 Frequent assessment may be better
 Helps in giving timely feedback and remedial
measures
 This helps the ratee to improve performance if
there is a deficiency
 Performance of trainees and probationers
should be evaluated at the end of the
respective programmes

Methods of Performance Appraisal
MBO
Future-oriented

Cost Rating
Accounting Scales
Checklists

Essay

360 Degree Appraisal
Forced
Assessment Centres

ACRS Choice

Appraisal
Tests and
Methods
Forced
Observations Distribution

Critical
Field Review
Incident

BARS Past-oriented

Psychological
Appraisals

Past Oriented: Rating scales
 Simplest and most popular technique
 Consists of several numerical scales each
representing a job-related performance criterion
 Dependability, initiative, output, attendance etc.
 Each scale ranges from excellent to poor
 Each criterion is rated and total numerical score is
calculated
 Advantages: Adaptability, easy use, low cost
 Disadvantages: Rater’s biases, numerical scoring
gives an illusion of precision that is really unfounded

Past Oriented: Checklist
 Checklist of statements on the traits of the employee and his job
is prepared in two columns: “yes” and “no”
 Each item is ticked off and the list is forwarded by the rater to the
HR department
 Rater only does the reporting; actual evaluation is done by the
HR department
 Points are assigned to each “yes” ticked and total score is
calculated based on this
 When points are assigned it is called a weighed checklist
 Advantages: economy, ease of administration, limited training of
rater, standardisation
 Disadvantages: Rater’s bias, more use of personality than
performance criteria, misinterpretation of checklist items, use of
improper weights, relative ratings

Past Oriented: Forced Choice Method
 Rater is given a series of statements about
the employee
 Rater is forced to select a statement which is
most or least descriptive of the employee
 After selection by the rater, HR does the
actual assessment
 Advantage: absence of personal bias
 Disadvantage: statements may not be
properly framed

Please circle or highlight the response that best describes
your behaviour and least describes your behaviour

 Works in accordance with organisational
policies and standards.
 1.1. Personal appearance/grooming
 Well groomed
 Usually neat
 Pays attention but untidy
 Little attention

Past Oriented: Forced Distribution
Method
 This method seeks to overcome the problem
of leniency
 Rater is compelled to distribute the ratees on
all points on the rating scale
 This method operates under the assumption
that the employee performance level
conforms to a normal statistical distribution
 It assumes that employee performance levels
conform to a bell shaped curve- this is also
the main weakness of this method

Past Oriented: Forced Distribution
Method
 In organizations that select and retain only the good
performers, this approach cannot be used
 If used it will result in reduces employee morale
 Error of central tendency: rater may resist placing an
employee in the lowest or the highest group
 It is also difficult to convince the ratee as to why he
has been placed in a particular group
 In small groups and in high ability groups, this
method is generally not acceptable to raters and
ratees

Past Oriented: Critical Incidents
Method
 Focuses on certain critical behaviours of an employee
that make all the difference between effective and
non-effective performance of a job
 These incidents are recorded by the superiors as and
when they occur
 Advantages: Evaluation is based on actual job
behaviour
 It has descriptions in support of ratings; giving
feedback is easy
 Increases the chances that the subordinates will
improve as they learn more precisely what is
expected of them

Past Oriented: Critical Incidents
Method
 Limitations:
 Negative incidents are more noticeable than positive
ones
 Recording of the incidents becomes a chore for the
supervisor; he may put it off and may even forget
 Overly close supervision may result
 Managers may unload a series of complaints about
incidents during an annual performance review session
 Feedback may be too much at once and appear as a

punishment to the ratee
 Management should use incidents of poor performance
as opportunities for immediate training and counselling

Behaviourally Anchored
Past Oriented:
Rating Scales- BARS
 Rating scales whose scale points are
determined by statements of effective and
ineffective behaviours
 The scales represent a range of descriptive
statements of behaviour varying from the
least to the most effective
 Rater must indicate which behaviour on each
scale best describes an employee’s
performance

Behaviourally Anchored
Past Oriented:
Rating Scales- BARS
 Features:
 Areas of performance to be evaluated are identified
and defined by the people who will use the scales
 The scales are anchored by descriptions of actual job
behaviour that represent specific levels of
performance
 Supervisors agree upon these
 Dimensions and anchors are precisely defined
 All dimensions of performance to be evaluated are
based on observable behaviour and are relevant to
the job; BARS are tailor-made to the job
 Raters who use the scale are actively involved in the
development process and hence they will be
committed to the final product

Past Oriented: Field Review Method
 Someone outside the assessee’s own department-
someone from corporate office or HR- does the
appraisal
 The outsider reviews employee records and holds
interviews with the ratee and his superior
 This method is primarily used for making promotional
decisions at managerial levels
 This method is useful when comparable information is
needed from employees in different locations
 Disadvantages:
 Outsiders may not usually be familiar with conditions in
work environment
 No opportunity to observe employee behaviour or
performance over a period of time

Past Oriented: Field Review Method
 Raters making field reviews generally receive
training on how to conduct the interview and
develop their writing skills
 They will be less biased in spite of biased
information from supervisors
 The rater may be able to pinpoint areas
requiring training and development
assistance

Past Oriented: Performance Tests and
Observations
 This applies to limited number of jobs
 Tests may be of the paper-and-pencil variety or an
actual demonstration of skills
 Test must be reliable and validated
 Such tests are apt to measure potential more than
actual performance
 For the test to be job related, observations should be
made under circumstances likely to be encountered
 Cost of test development and administration should
not be too high

Past Oriented: Confidential Records
 Confidential Record typically has 14 items:
 Attendance
 Self expression-written or oral
 Ability to work with others
 Leadership
 Initiative
 Technical ability (job knowledge)
 Ability to understand new material
 Ability to reason
 Originality and resourcefulness
 Areas of work that suit the person best
 Judgement
 Integrity
 Responsibility
 Indebtedness and memo served

Past Oriented: Confidential Records
 Twelve of these are filled on a four-point
scale: excellent, good, fair and poor
 Justification is required for good or poor
rating
 Overall rating on a five-point scale may be
separately given: Outstanding, Very Good,
Good, Average, Poor
 Justification is required for this too

Past Oriented: Essay Method
 Rater must describe the employee within a number of
broad categories such as:
 Rater’s overall impression of the employee’s
performance
 The promotability of the employee
 The jobs that the employee is now able or qualified to
perform
 Training and development assistance required by the
employee
 May be used independently or in combination with
other methods
 Extremely useful in filling information gaps about
employees that often occur in the better structured
checklist method

Past Oriented: Essay Method
 Strength of this method depends on the
writing skills and analytical ability of the rater
 Many raters do not have good writing skills-
they become confused as to what to write
 Time consuming method and depends on the
memory power of the rater
 A ‘high quality’ appraisal in this method may
provide little useful information about the
performance of the ratee

Past Oriented: Cost Accounting Method
 Evaluates performance from the monetary
returns the employee yields to his or her
company
 A relationship is established between the cost
included in keeping the employee and the
benefit the firm derives from him or her
 Performance is evaluated based on the
established relationship between the cost and
benefit

Past Oriented: Comparative Evaluation
Approaches
A collection of different methods that
compare one worker’s performance with that
of his co-workers
 Usually conducted by supervisors
 Can result in a ranking from best to worst
 Useful in deciding merit-pay increases,
promotions and rewards
 There are two methods under this:
 Ranking method
 Paired-comparison method

Approaches- Ranking Method
 Superior ranks his subordinates in the order of merit-
from the best to worst
 The HR department only knows that A is better than
B- the ‘how’ and ‘why’ are not questioned or
answered
 There is no fractionalisation into component elements
 Subject to halo and recency effects
 Rankings by two or more raters may be averaged to
reduce biases
 Ease of administration and explanation are the
advantages

Approaches- Paired Comparison Method
 Appraiser compares each employee with every other
employee, one at a time
 The number of comparisons is calculated with the
help of a formula: N(N-1)
2
 N stands for the number of employees to be
compared
 E.g. if there are 10 employees, the number of
comparisons will be 45
 The result is then tabulated and a rank is created
from the number of time each person is considered to
be superior

Future-Oriented Appraisals
 It is not sufficient to assess the past
performance alone
 How an employee can perform in the days to
come is equally important
 For this one must focus on employee
potential or setting future performance goals

Future-Oriented: Management by Objectives
 Concept proposed by Peter Drucker in 1954
 This management philosophy values and utilises
employee contribution
 How MBO works:
 First the goals each subordinate is to attain are
established
 It could be done by superiors alone or in consultation

with the subordinates
 These goals can then be used to evaluate performance

 Next, performance standards for a particular time
period are set
 As they perform, the subordinates know fairly well what

there is to do, what has been done and what remains
to be done

 How MBO works: (contd.)
 In the third step, the actual level of goal attainment is
compared with the goals agreed upon
 Evaluator explores reasons for the goals not met and

for the goals that were exceeded
 Possible training needs can be assessed in this step

 The superior may also be alerted to conditions in the

organization that affect a subordinate but over which
he has no control
 Final step involves establishing new goals and new
strategies for those not attained previously
 Subordinates who successfully reach the previously

established goals may be allowed to participate more
in the new goal-setting process

 Criticisms:
 It is not applicable to all jobs: those jobs with little
flexibility are not compatible with MBO
 Can be used only for managerial personnel and
employees who have a fairly wide range of flexibility
and self-control
 When linked to rewards, employees may try to set
easily accomplishable goals than challenging ones
 May lead to setting up of goals with short term
horizons to the disadvantage of long term goals

Future-Oriented: Psychological Appraisals
 Large organizations employ full-time industrial
psychologists
 They are used for evaluations to assess future
potential of employees
 Appraisal consists of in-depth interviews,
psychological tests, discussions with supervisors and
a review of other evaluations
 Psychologist then writes an evaluation of the
employee’s intellectual, emotional, motivational and
other-related characteristics that suggest potential
and may predict future performance
 The evaluation may be for a particular job opening, or
a global assessment

Future-Oriented: Assessment Centres
 Mainly used for executive hiring
 Now utilised for evaluating executive or supervisory
potential
 Assessees are required to participate in exercises,
activities etc which require the same attributes for
performance as in the actual job
 After recording the ratee behaviours, raters meet to
discuss these observations
 Decision regarding the performance of each
assessee is based upon this discussion
 Self-appraisal and peer evaluation are also used for
final rating

Future-Oriented: Assessment Centres
 In spite of having trained observers and
psychologists, measuring these over a few days’ span
is difficult
 Very costly approach
 Raters may be influenced by the personality of the
candidate; they may evaluate the individual’s social
skills rather than quality of decisions
 Involves hazards: Good job performers may feel
suffocated in the simulated environment

Future-Oriented: 3600 Feedback
 Multiple raters are involved in evaluation
 It is a systematic collection of performance data on
an individual or a group derived from a number of
stakeholders- immediate supervisors, team
members, customers, peers and self
 Provides a broader perspective about an employee’s
performance
 Facilitates greater self-development through multi-
source feedback
 Perceptions that the employee holds about himself
can be compared with those held by the others
 Makes the employee feel accountable to his internal
or external customers

Future-Oriented: 3600 Feedback
 Technique is helpful in assessing soft skills
 Helps in identifying and measuring interpersonal
skills, customer satisfaction and team building skills
 Receiving feedback from multiple sources can be
intimidating; so the organizations must create a non-
threatening environment by emphasising the
positives
 Selection of rater, designing questionnaires and data
analysis can be time consuming
 Getting a balanced objective feedback from multiple
raters is difficult
 Separating honest observations from personal
differences and biases could be difficult for raters
 Failure in India” Collectivism and Power distance

The Performance Appraisal
Process: Performance Management
 Performance appraisal provides feedback
about employee job performance
 Performance management consists of three
steps that are needed to complete the
process:
 Performance interview
 Archiving performance data
 Use of appraisal data

 Ref: Table 10.6: Appraisal and Management

Performance Management- Performance
Interview
 Once the appraisal has been made, the raters have
to discuss and review the performance with the
ratees
 The main aim is giving feedback on where they stand
 Goals of performance interview:
 To change behaviour of employees whose
performance does not meet organizational
requirements or their own personal goals
 To maintain the behaviour of employees who perform
in an acceptable manner
 To recognise superior performance behaviours so that
they will be continued

Interview
 Tell and sell/Directive Interview:
 Interviewer lets the assessee know how well
he is doing and sells him on the merits of
setting specific goals for improvement, if
needed
 Tell and listen Interview:
 Provides the subordinates with chances to
participate and establish a dialogue with their
superiors
 Purpose: communicate the rater’s perception
about ratee’s strengths and weaknesses and
let the subordinates respond to these

Interview
 Problem solving/Participative Interview:
 An active and open dialogue is established between
superior and subordinate
 Perceptions are shared, solutions to problems are
presented, discussed and sought
 Mixed Interview:
 Combination of tell and sell and problem solving
interviews
 Whatever be the approach, the aim should be
counselling and development and not criticism, witch-
hunting and buck passing
 Ref. Table 6.7: Guidelines for effective appraisal
interview

How to conduct an interview:

There are four things to keep in mind.
• Be direct and specific. Talk in terms of objective
work data and concrete examples.
• Don’t get personal. Do not directly attack the
person or compare directly.
• Encourage the person to talk. Stop and listen to
the person. Give him a fair chance to justify his
points.
• Develop an action plan. Make sure that by the
end of the day, the person knows his merits and
demerits and is willing to rectify.

Communication Skills for the
Appraisal Interview
Skills Benefit Description Example
Nonverbal Suggests interest Rater sits with a slight While the ratee is
Attending and active listening. forward, comfortable speaking, the rater
lean of the upper body, looks at the person
maintains eye contact, and gently nods head
and speaks in a steady to signal interest.
and soothing voice.
Open and Appropriate use of —Open questions — Open questions
Closed open and closed encourage information start with words like
Questions questions can sharing and are most “Could,” “Would,”
ensure an effective appropriate early in an “How,” “What,” or
flow of interview or in complex, “Why”.
communication ambiguous situations.
during an interview.
—Closed question — Closed questions
evoke short responses start with words like
and are useful for “Did,” “Is,” or “Are.”
focusing and clarifying.

Appraisal Interview (Cont.)
Paraphrasing Paraphrasing can clarify A paraphrase is a You might begin by
and convey to the ratee concise statement in saying “If I have this
that you are listening your own words of what right…” or “What
actively. someone has just said. you’re saying is…” and
It should be factual and end with “Is that
nonjudgmental. correct?” or “That’s
what you are saying?”
Reflection of Shows that you are Similar to paraphrase, a Start by saying
Feeling trying to understand the reflection of feeling is a something like “It
emotional aspect of the factual statement of the sounds like you’re
workplace. The empathy emotions you sense the feeling…” End as you
and sensitivity of such other person is feeling. would a paraphrase
reflection can open up Be cautious about using (“Is that right?”).
communication and this technique
allow the interview to insincerely or with those
move more who need professional
meaningfully to task- help.
related issues.

Appraisal Interview (Cont.)

Cultural Communication is more Pay attention to cultural When dealing with
Sensitivity effective when you are differences that may employees from a
sensitive to the possible influence how another culture that is highly
influence of cultural person communicates formal, avoid
differences. and how you might addressing them in the
communicate with workplace by their first
others. names. Doing so may
signal disrespect.

How to Determine and Remedy
Performance Shortfalls
Cause Questions to Ask Possible Remedies

Ability• Has the employee ever been • Train
able to perform adequately? • Transfer
• Can others perform the job • Redesign job
adequately, but not this employee? • Terminate
Effort • Is the employee performance • Clarify linkage between
level declining? performance and rewards
• Is performance lower on all • Recognize good
tasks? performance
•
Situation Is performance erratic? • Streamline work process
• Are performance problems • Clarify needs to suppliers
showing up in all employees • Change suppliers
even those who have adequate • Eliminate conflicting
supplies and equipment? signals or demands
• Provide adequate tools

Performance Management- Archiving
Performance Data
 Refers to storing the appraisal data
 This facilitates future use
 These details are very important when
employees raise issues regarding their
promotions, pay hikes, confirmation,
affirmative action etc.

Performance Management- Use of
Appraisal Data
 Remuneration administration
 Validation of selection programmes
 Employee training and development
programmes
 Promotion, transfer and lay-off decisions
 Grievance and discipline programmes
 HR Planning
 (Read: Edward Deming on Performance
Appraisal)

7 perf apprsl & mgmt

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