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Individual Appraisal Systems

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  1. Employability Skills Individual Appraisal Systems

  2. Use of Appraisals • Employee / system Strengths and weaknesses • Training needs • Communication • Criteria for appraisal • Personal data • Judgemental data • Rating methods What we discuss today

  3. “Making judgements about an employees contribution, value, worth, capability and potential has to be considered as a vital relationship with employees. “ Nickson (2013 p. 179) • 1. Promotions • 2.    Confirmations • 3.    Training and Development • 4.    Compensation reviews • 5.    Competency building • 6.    Improve communication • 7.    Evaluation of HR Programs • 8.    Feedback & Grievances Use of appraisals

  4. Performance Appraisal Methods : 1. Critical incident methodThe critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period2. Weighted checklistThis method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs3. Paired comparison analysisPaired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. Approaches.

  5. 4. Graphic rating scalesThe Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal.5. Essay EvaluationThis method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative technique. This method usually use with the graphic rating scale method.6. Behaviorally anchored rating scalesThis method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation.7. Performance ranking methodRanking is a performance appraisal method that is used to evaluate employee performance from best to worst.Manager will compare an employee to another employee, rather than comparing each one to a standard measurement. Approaches

  6. 8. Management By Objectives (MBO)MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)9. 360 degree performance appraisal360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.10.Forced ranking (forced distribution)Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.11. Behavioral Observation ScalesBehavioral Observation Scales is frequency rating of critical incidents that worker has performed.Most of the companies or organisations follow 360 degree performance appraisal. Approaches.

  7. Distinction 1 • “Performance Management is a process that unites Goal setting, performance appraisal, and development in to a single common system whose aim is to ensure that the employees performance is supporting the companies strategic aims. Performance management is therefore never just meeting with a subordinate once or twice a year to review performance. Its daily or weekly interactions to ensure continous improvement in the employees capacity and performance” Dessler p. 336 Use of appraisals

  8. Knowledge Ability skill on the job • Attitude to work, expressed as enthusiasm, commitment, motivation • Quality of work, consistency, attention to detail • Volume of product output • Interactions , communication, relating to others Nickson(2013 p. 181) Criteria

  9. Skills and Proficiencies Job proficiency is clearly an important strength worth mentioning in a performance appraisal. Employees with excellent job skills or proficiency demonstrate their expertise in performing the functional aspects of their jobs. An administrative assistant, for example, must be proficient with office programs and software applications to provide support to managers and directors. An example of a registered nurse’s proficiencies is mastery of clinical procedures. Strengths

  10. Ethics and Integrity • Personal characteristics such as work ethic, business ethics and integrity are strengths measured within a performance appraisal. Although quantitative measurement of personal characteristics is difficult, the actual measurement comes from peer evaluations and customer feedback. Employees who demonstrate high levels of integrity usually find it easy to gain others’ trust -- whether they are co-workers or external contacts such as clients, customers or colleagues outside the workplace. Strengths

  11. Job Knowledge • Job knowledge is a different measurement from job skills. Job knowledge demands understanding practices related to overall performance and how and when to apply certain practices, rules or regulations. A human resources manager exhibits strength in the area of job knowledge by embracing appropriate human resources best practices, understanding employment trends and applying labor and employment law to work situations. Job knowledge requires that an employee keep abreast of news that affects his profession and his career, which shows an effort in building his reputation as well as contributions to his employer. Strengths

  12. Conscientiousness • Conscientious employees care about work quality and customer satisfaction. They demonstrate this through ensuring each step they take during assigned projects is done the proper way and will produce the best outcome. For instance, a sales employee follows up with calls to clients after each sale to determine if the customer is satisfied with the product or service. • con·sci·en·tious  (knsh-nshs)adj.1. Guided by or in accordance with the dictates of conscience; principled: • Con shenshaz Strengths

  13. Commitment • There are several ways an employee can demonstrate commitment. Two popular ways include sticking with the company during lean times and building a long record of success while with the company. Companies in the growth stages of development depend heavily on employees who are committed to the organization. In fact, the company’s growth depends on employees capable of visualizing its success and using their talents to help achieve their own professional successes as well as the company’s goals. Strengths

  14. Class. Emp Negatives.

  15. Pros of Performance Appraisal☝ Performance appraisal helps to evaluate the actual performance of employees against the expected performance. It recognizes and rewards potential employees and motivates them to excel further. It provides a basis for determining the salary hikes, perks, promotions and bonuses of various employees based on merit. ☝ An appraisal process can provide a basis for improving the performance of employees. It helps to identify the training and development needs for employees who do not meet the set standards. This boosts the morale of employees and increases the productivity of the organization.☝ Through performance evaluation the supervisors can identify the strengths, weaknesses, job knowledge, skills and commitment of an employee. An employee comes to know about his key work areas and also the areas he needs improvement and has to work upon. He also gets a better understanding of the organization's needs and expectations. ☝ It helps to recognize the goals and objectives of an employee. Sometimes, through the appraisal, the managers may tap the interests, skills and proficiencies of an employee that may be suitable for some other job in the organization. This helps to ensure that an employee is being utilized effectively. Identifying people with right skills helps an organization achieve its mission and objectives and contributes to an employee's overall growth as well.☝ This process is a viable tool for establishing and maintaining an open communication between supervisors and employees, and enhances employee commitment and productivity. • http://www.buzzle.com/articles/performance-appraisal-strengths-and-weaknesses.html Pros of Appraisal

  16. Weaknesses of Performance Appraisal☟ On the downside, appraisals have been criticized on a lot of grounds. One of the arguments against performance appraisals is that they get affected by office politics. ☟ The superior or the manager, may not assess his subordinates fairly. Instead of basing his evaluation on the employee's actual behavior, the manager might give his feedback on the basis of his personal likings and disliking.☟ Another criticism that performance appraisals face is that they are unable to fulfill the aim they are conducted for in the first place. Since, in an appraisal, an employee is being evaluated and judged, and his pay rise and promotion is dependent on it, there is no way he will bring out the problem areas in his work, when doing self-assessment. ☟ In some cases a superior too might find it uncomfortable to judge his subordinates, since they are working together on a daily basis in the organization. Sometimes, it can cause souring of relationships in the office, leading to an unproductive work environment. Cons of Appraisal

  17. “performance appraisals should result in better performance and a sense of satisfaction on the part of the appraisee. Every employee may not have all the capabilities required to perform each and every function associated with his role performance appraisals should be able to indicate the capabilities the person has and the capabilities he lacks to perform each of the functions” (Rao 2004 p.110) Training needs

  18. The capabilities the employee lacks can once identified needs to be developed • Capability gaps can be identified in performance appraisals by looking at the ratings given in various dimensions. ( Rao 2004 p.110) Training cont.’

  19. The rating procedure, appraisal form or any other related information ought to be sent to each and every individual separately. Do not mark a common mail to everyone. If you do not want to take the pain of sending separate mails to everyone, create a common login id where each and every individual can register using their passwords and pull out the appraisal form. The appraisal form generally has information about employee’s designation, grade, level in the hierarchy, responsibilities and thus must be kept confidential. Communication requirements

  20. Counselling needs to be done on a one on one basis. Address their queries, confusions in private. Remember, appraisal is a very sensitive subject and should be handled gracefully. Call the employees one by one either in your cabin or conference room and try to find out if they need any help or guidance. Trust me, if you call them in a group, they would never open up. It is unethical to discuss one’s performance or salary in public. • Once the appraisals are done, communicating the same to the employees is another big challenge. The increment letters or appraisal letters should be handed over to the employees either by the functional head or human resource team personally. Communication 2

  21. Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages – Rater’s biases • 2.    Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings • 3.    Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages – Absence of personal biases because of forced choice. Disadvantages – Statements may be wrongly framed. rating

  22. 4.    Forced Distribution Method: here employees are clustered around a high point on a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that the performance is conformed to normal distribution. Advantages – Eliminates Disadvantages – Assumption of normal distribution, unrealistic, errors of central tendency. • 5.    Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment. • 6.    Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages – helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques. • 7.    Field Review Method: This is an appraisal done by someone outside employees’ own department usually from corporate or HR department. Advantages – Useful for managerial level promotions, when comparable information is needed, Disadvantages – Outsider is generally not familiar with employees work environment, Observation of actual behaviors not possible. rating

  23. .    Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage – Tests may be apt to measure potential more than actual performance. Disadvantages – Tests may suffer if costs of test development or administration are high. • 9.    Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items; attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like promotions etc. • 10.  Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promoteability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters. • 11.  Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis. • 12.  Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method. • Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation. • Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as under. • (HR wale.com) rating

  24. Discuss, clarify , clear • REPORT STRUCTURE • Using this structure will help to give your report the correct level of formality; it will also help to ensure that you do not leave out anything important.. • (Sections marked with an asterisk (*) are essential: others are optional • Edexcel Assignment front sheet – signed , dated. Don’t loose it** • Title page* • Table of contents* • List of abbreviations and/or glossary • Executive summary/abstract* • Introduction* • Body* • Conclusion* • Recommendations* - for this assessment go conclusion & Recommendations. • Bibliography* • Appendices. Assessment

  25. This is the Assessment that I hand over to you. • It will have the lecturers and the internal verifiers signature. • If you loose it, Ill have to get a visiting lecturer to come back and sign more again. • Especially tourism Students. • You must sign it and date it when you do your final handover. You also certify that its your own work and any contributors are referenced. Edexcel Assignment front sheet

  26. This must contain: • the report title which clearly states the purpose of the report – Assignment 1, Employability Skills, subject code,, • details of for whom the report was prepared - Department of sports and leisure, Cinec , course name, • full details of the person(s) who prepared the report -your name, Student number • the date of the presentation of the report – Semester 1 , December 2014. Title page*

  27. This is a list of the headings and appendices of the report. Depending on the complexity and length of the report, you could list tables, figures and appendices separately. Make sure the correct page numbers are shown opposite the contents. Up-to-date word processing packages can generate a table of contents for you. Table of contents*

  28. An abstract is quite different from an introduction. It is a summary of the report, in which you include one sentence (or so) for every main section of your report. For example, you can include: • the context of the research • the purpose of the report • the major findings (you may need several sentences here) • the conclusions • the main recommendations • Write the abstract after you have written the report. Abstract (Summary or Executive Summary)

  29. Give enough background information to provide a context for the report. – give a full detailed description of the appraisal, benefits, disadvantages, • State the purpose of the report. • Clarify key terms and indicate the scope of the report (ie what the report will cover). • You may use headings. • A rationale , purpose of the study, methodology, Assumptions and anticipated difficulties. Introduction*

  30. Do we do a Literature review ? No – “A report of primary research (based on your own observations and experiments) would include: A Literature review (what other people have written about this topic. The literature review should lead towards your research question. • Method (summarizes what you did and why). Use the past tense. • Findings or results (describes what you discovered, in your observations of the case). Use the past tense. – e.g. Smith has no appraisal process so he is suffering the disadvantages. • Discussion (discusses and explains your findings and relates them to previous research). Use the present tense to make generalizations. – must make logical sense. • A report of secondary research (based on reading only) would include: • Information organised under appropriate topics with sub-headings. It is unlikely that your report will discuss each source separately. You need to synthesise material from different sources under topic headings. • Analysis/discussion of the sources you are reporting. Body * *****

  31. Sum up the main points of the report. The conclusion should clearly relate to the objectives of your report. No surprises please! (that is, don’t include new information here.) • Recommendations – must make some logical ones class. • These are suggestions for future action. They must be logically derived from the body of your report. Conclusion.

  32. Use the material I have given on Harvard referencing. • Please use the correct format. • Please use many good sources.5 -6 books, use web sources of good standing. Don’t use all web sources. – No wiki. • Don’t quote my lecture slides, use the original references I have given. Bibliography.

  33. An appendix contains material which is too detailed, technical, or complex to include in the body of the report (for example, specifications, a questionnaire, Maslow's hierarchy, actual performance reviews), but which is referred to in the report. Appendices are put at the very end of the report, after everything else. Each appendix should contain different material. Number each appendix clearly. Appendices

  34. Nickson, D 2012, Human Resource Management for Hospitality, Tourism and Events, • Rao, TV 2004, Performance Management & appraisal systems, Sage Publications, New Delhi, India. • HRWale, http://corehr.wordpress.com/performance-management/performance-appraisal-methods/ viewed 29 Sep 14. • Buzzlehttp://www.buzzle.com/articles/performance-appraisal-strengths-and-weaknesses.html Bibliography