UNIT 5

• Performance


  Effective and efficient accomplishment of objectives
• Performance Appraisal


  Systematic review of an individual's job performance and overall contribution to the company
• Purposes of Performance Appraisal


  • Compensation
  • Placement
  • Training and Development
• Compensation


  Linking performance with pay to motivate employee behaviour towards expected output
• Placement


  Using performance to justify decisions to promote, demote or terminate an employee
• Training and Development


  Identifying strengths and weaknesses to determine training and development needs
• Who Should Evaluate Performance

  • Manager/Supervisor
  • Subordinates
  • Peers
  • Customers
  • Self
  • 360-Degree or Full Circle
• The Process of Performance Appraisal

  1. Setting performance standards

  2. Communicating standards to employees

  3. Measuring actual performance

  4. Comparing actual to standards

  5. Discussing the appraisal

  
• Performance that is expressed in numeric terms is easy to measure, while performance in soft skills is more difficult to evaluate
• ACE Method


  • Appreciation
  • Correction
  • Encouragement
• Traditional Methods


  • Graphic Rating Scales
  • Forced Choice Method
  • Checklist Method
  • Essay Evaluation Method
  • Group Appraisal Method
  • Critical Incident Method
  • Field Review Method
  • Ranking Method
• Modern Methods

  • Management by Objectives (MBO) Method
  • Assessment Centers
  • Behaviorally Anchored Rating Scales (BARS)
  • Appraisal by Peers
  • Self Evaluation
  • 360-Degree Feedback
• Errors of Performance Appraisal

  • Halo Effect
  • Central Tendency
  • Proximity Error
  • Recency Error
  • Stereotyping
• Performance Appraisal exists to improve organizational efficiency by ensuring that individuals perform to the best of their ability, develop their potential, and earn appropriate reward, which in turn leads to improved organizational performance