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the appraisal system concepts of appraisal appraisal methods

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The Appraisal System. Concepts of Appraisal & Appraisal Methods

M21 : Assessment in the Workplace

performance appraisal
Performance Appraisal
  • Aims of Appraisal
  • Content of Appraisal
  • Implementation
  • Maintenance and Evaluation of Appraisal
  • Appraisal and Performance Management (PRP)
perspectives on appraisal the organisation
Perspectives on Appraisal :The Organisation

‘to enable some kind of assessment to be made on an employee - either against pre-set objectives or job competencies… as a basis for…’

  • making equitable reward decisions
  • improving performance
  • motivating employees
  • succession planning and identifying potential
  • promoting manager-subordinate dialogue
  • formal assessment of unsatisfactory performance
perspectives on appraisal the appraisee employee
Perspectives on Appraisal :The Appraisee (Employee)
  • Want fair distribution of reward
  • Want performance feedback
  • Want constructive dialogue with ‘the organisation’

BUT, conditional on the extent to which -

  • the appraisal is perceived as fair
  • has a good working (social?) relationship with the appraiser
  • impact of the assessment on their rewards and well-being
perspectives on appraisal the appraiser immediate superior
Perspectives on Appraisal :The Appraiser (Immediate Superior)

Napier & Latham (1986) ‘Reluctance’

why…

  • lack of agreement with target (appraisee)
  • lack of confidence in own ability to appraise
  • very high administrative workload
  • office politics

all leads to...

bias in appraisal ratings

common practice aims of the appraisal
Common Practice : Aims of the Appraisal
  • Performance appraisal generally thought up by Personnel and/or senior management
  • NB1. Importance of setting realistic aims - conflicting perspectives on aims of appraisal (assessment vs motivation & development)
  • NB2. The aims of the appraisal will affect the nature and content of the scheme
    • assessment : common dimensions
    • motivate & develop : emphasis on the individual
content of appraisal for assessment comparison designing the questionnaire
Content of Appraisal(for Assessment & Comparison)DESIGNING THE QUESTIONNAIRE

‘Identify abilities that are central to good performance AND can discriminate between staff with varying levels of performance’.

How can we identify these job-related activities ?

identification of job related abilities assessment comparison techniques i
Identification of Job-Related Abilities (Assessment & Comparison) Techniques (I)

1. Committee Method

Personnel and Snr Mgr/Exec. determine by discussion of ‘key’ abilities.

2. Diary Method

Job-holder keeps an hour-by-hour record

3. Direct Observation

HR and/or Occupational Psychologist observes job holder at work

identification of job related abilities assessment comparison techniques ii
Identification of Job-Related Abilities (Assessment & Comparison) Techniques (II)

4. Questionnaire Methods (e.g. Position Analysis Questionnaire) : 187 items, 6 dimensions

  • Information Input
  • Mental Processes
  • Work Output
  • Relationships with Others
  • Job Context
  • Other Characteristics

5. Interviews with job holders & stakeholders (e.g.Critical Incident Technique) : Incidents of ‘very effective’ and ‘very ineffective’ performance.

rating scale format assessment and comparison
Rating Scale Format(Assessment and Comparison)

4 common formats for ratings scales :

1. Scales with verbally described intervals

2. Numerical/Alphabetical, with ‘low’-’high’ (intervals specified, but not described)

3. Graphic rating scales : extremes and mid-point specified, with detailed description of dimension of behaviour

4. Comparative scales : behaviour described relative to others.

why use rating scales
Why Use Rating Scales ?

Advantages

  • easily understood
  • encourage an analytic view of behaviour
  • provide quantitative data, so facilitates comparison

Disadvantages

  • idiosyncratic rating errors (halo, restriction of range, leniency, central tendency, acquiesence)
how to reduce idiosyncratic rating errors
How to reduce idiosyncratic rating errors
  • Train appraisers
  • Use forced distributions
  • Increase the number of raters
  • Use behaviourally based rating scales (e.g. BOS and BARS)
content of appraisal to motivate develop management by objectives mbo designing the questionnaire
Content of Appraisal(to Motivate & Develop : Management By Objectives, ‘MBO’)DESIGNING THE QUESTIONNAIRE

6 - 12 months, detailing :

  • key objectives
  • priority ranking
  • action needed (who and when)
  • extent to which objectives achieved

NB.

  • Very difficult to make any comparisons between people
  • not all jobs can be framed in terms of individual objectives
  • doesn’t help identify developmentneeds
content of appraisal motivate develop competency based designing the questionnaire
Content of Appraisal(Motivate & Develop : Competency Based)DESIGNING THE QUESTIONNAIRE

‘an underlying characteristic of a person which could be a motive, trait, skills, aspect of one’s self-image or social role or a body of knowledge which he/she uses.’ Boyatzis, 1982.

How to identify competencies :

(i) Traditional job analysis techniques, (ii) Rep Grid

(iii) Questionnaire methods (e.g. Generic Competency Questionnaire)

NB. Fletcher (1997). ‘competencies should not be equated with ratings of single job-related abilities - they are much more broader and complex. They should allow for progression and development’

training and the implementation of appraisal
Training and the Implementation of Appraisal
  • Fletcher & Williams (1982) : the effectiveness of performance appraisal is related to the training effort put into it
  • Traditionally, introduced ‘top-down’
  • Background briefing - history of appraisal in the org., ‘selling’ the system, familiarise with the process
  • Train the Appraisers - train on Assessment Skills, Appraisal Interview Skills, offer an appraisal clinic.

N.B. train for appraisal of diverse workforce

  • Train the Appraisees - e.g. aims of scheme, how to prepare, reassure, how to respond.
monitoring and maintenance of appraisals
Monitoring and Maintenance of Appraisals

Short-Term Criteria

  • completion rate
  • action generated
  • quality of appraisal reports
  • attitudes and perceived value of the appraisal
  • equity

Long-Term Criteria

  • organisational performance
  • quality of staff
  • retention of staff
  • levels of employee commitment
appraisal and performance management
Appraisal and Performance Management

‘a shared vision of the direction of the organisation, in which each individual employee recognises and accepts their contribution’

The Process of PM

  • develop org. mission statement and objectives
  • develop a business plan
  • enhance communication within the organisation
  • clarify individuals’ responsibilities
  • define and measure individual performance
  • implement appropriate reward strategies
  • develop staff to improve performance further
how does appraisal fit in to pm
How does Appraisal fit in to PM ?

Appraisal is the vehicle by which :

  • org. goals and objectives are translated to individuals
  • individual needs are identified, and objectives agreed

NB

  • Individual vs team achievement
  • line driven appraisal
  • appraisal as part of a feedback loop
  • excessive bottom-line emphasis
appraisal pay
Appraisal & Pay

Merit Pay (PRP) :

3% -10% of salary (+ cost of living rises)

Issues

  • Meyer (1980 : on average, employees felt they performed better than 75% of their peers.
  • High performing individual, poor org. performance
  • Bevan & Thompson (1991) : PRP is not related to higher levels of org. performance.
  • Implications for appraisers (leniency in ratings)
appraisal and pay
Appraisal and Pay

Alternatives

  • Direct and indirect links with merit pay
  • Wider (financial and non-financial) reward policies

e.g. promotions, office décor, more holidays/flexible working practices, technology, ‘better’ work, conferences and training