The Roles of Job Performance Appraisal
The roles of performance appraisal in HR management include ones as follows:
1. General appraisal
Appraising the job performance of staff provides basic information, based on which, new businesses can make decisions about promotion and salaries of employees.
2. In work review and improvement
Help HR officers and other employees have the opportunity to review the quality of work – related need for an employee. Most employees are keen to know the comments and evaluations of directors and leaders on their job performance. Assess the job performance of employees and provide this information to employees.
3. In career plan
Help HR officers and the staff make their plans to adjust the errors in their job performance.
Objectives and policies of performance appraisal
1. Objectives of performance appraisal
• Improve performance effectiveness and feedbacks: the whole company.
• Plan human resources: promotion, especially in management, overtaking.
• Recruitment and selection: Score tabulation allows forecasting employee’s work accomplishment possibility and measuring the effectiveness of tests.
• Development of human resources: Show the demand for training, education and development; identify employee’s imperfections to be corrected.
• Career plan and development: Identify employee’s potential imperfections; help them to carry out the plan.
• Salary and treatment: Decision of salary increase, bonus increase.
• Inferior personnel tie: Promotion, reduction in grade, contract termination, work suspension, transfer.
• Employee potential appraisal: Based on employees’ work accomplishment, examine past activities to forecast future performance. Common mistake is made when one of high professional capacity is promoted lacking leading capacity. The evaluated object needs to be specified so that an objective appraisal is guaranteed.
2. Policies of performance appraisal
Specify in handbook or publicize at meetings. Managers must bring these in their minds.
• Maintaining encouragement of outstanding achievements.
• Maintaining leading quality improvement, bonus increase for those of good performance.
• Creating favorable conditions for employees to get involved in management decisions.
• Encourage employees’ integration and involvement in company’s structure and goals.
• Creating opportunities for employees to excel, demonstrate talent and potential.
• Managers support their employees, labor force.
• No breach of state laws and company’s disciplines, no bias.
Notes in performance appraisal
1. General rule
Generally, the staff will improve their way of work before performance appraisal and this will be recorded in the appraisal. However, business should pay attention to that in the annual appraisal and appraise the whole process. The staff’s working behavior will returned to their original status after performance appraisal is completed.
2. Concession in performance appraisal
Remember that concession in performance appraisal results in many troublesome problems. The concession will offer the employees a highly appreciated result for mediocre work and they will be rewarded. However, the same results will continue in their work because they are not assessed at their true worth, not recommended improvement.
3. Overlooking mistake
Overlooking mistake will also make mental troubles. The good staffs have less motivation to work because there no difference between their rewards and that of bad staffs. Lack of strictness leads to concession. Once a high standard is sustained, the appraisal accurately reflects the work of staff. The over-rigorous assessment reduces the employee’s working motivation and makes them disappointed. They think that whatever they do, they also have not got fit reward.
4. Consolidation of employee’s attitude
The consolidation of employee’s attitude focuses on the impact of working behavior. The manager plays a key role in strengthening the staff’s current attitude and proving new working behavior.
5 advices on how to evaluate your employee’s performance
In business, however big or small, it is necessary to have a regular summary of sales result and more importantly, of the employee performance, as this may help the employees with experience to improve their work and to be more effective and productive later. Follows will be some advices for company leaders as well as managers of any department on how to evaluate an employee’s performance.
1. Encouraging employees to self-evaluate their performance to find out their strong and weak points. It will be much more comprehensive and objective if an employee’s performance is evaluated by both the manager and himself.
2. Having a straightforward but not much negative point of view toward the weak points of an employee. It should be considered as experience and lesson to improve the later performance.
3. However small your company may be, as a director, you should not take it lightly when evaluating your employees or regularly summarizing the business result.
4. Emphasizing on what you and your employee have been acquiring as well as on what can be achieved in the future. Never use performance report to criticize the mistakes the employee made, but to make it valuable lesson of experience.
5. Trying to be fair and applying general criteria or principles to evaluate the performance of all employees.
Employees Hates Performance Appraisal
I/ Why almost employees hates performance appraisal?
1. Lack of information about the purpose of appraisal
Many employees are not even aware that a good or bad appraisal can impact their career prospects.
2. Time consuming process:
The highly complex questions which they have no answers to or highly complex competencies which they have never heard of confuse them.
3. Difficulty in writing appraisals:
Many employees have poor language skills and they are unable to communicate their performance in right language and support with data.
4. Lack of faith in the appraisal process:
Employee think that his/her manager doesn’t write appraisals based on employee’s performance but bias his/her decisions based on their personal relations with employees.
5. Lack of feedback after appraisal:
Many companies do not provide feedbacks to employees on their performance.
II/ How to decrease hating of employee?
1. HR manager should clearly define the purpose of appraisals to employees and to managers.
2. Train employees on writing appraisals: Another key to make employee appraisals effective is to provide training to employees on appraisal writing skills.
3. Provide effective feedback: After an appraisal is done, let employees have a copy of the appraisal, then you let them know how it impacted their salary, compensation and career.
4. Employees should be involved in appraisal process.
Performance improvement plan?
1. What is Performance improvement plan (PIP) in Performance Management System?
A plan implemented by a manager or supervisor that is designed to provide employees with constructive feedback, facilitate discussions between an employee and his or her supervisor regarding performance-related issues, and outline specific areas of performance requiring improvement.
2. Other definitions:
2.1. PIP definition of nist.gov:
Performance Improvement Plan is a plan given to an employee whose performance is unsatisfactory in one or more critical elements for the purpose of identifying the deficiencies and how to correct them to attain and sustain performance at the Minimally Meets Expectations level.
2.2. PIP definition of Wikipedia
A Performance Improvement Plan or PIP is a set of explicit goals given to an employee to meet. These goals are usually given as a result of some failure, either dramatic or systemic, on the part of the employee.
Difference between Performance Appraisal and Evaluation?
1. Definitions of Wikipedia about performance appraisal and evaluation:
A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.
2. Performance appraisal definition of hr.unl.edu
The method of evaluating an employee’s performance which involves tracking, evaluating and giving feedback on actual performance based on key behaviors/competencies established in the goals that support the achievement of the overall organizational mission.
3. Definition of job evaluation at wikipedia:
Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established.
4. Dheerajgoyal ‘s point of views:
I guess the basic difference is that once is a process & another an outcome .. An appraisal has to be preceded by evaluation but the converse is not true .. An evaluation need not necessarily lead to appraisal , it may purely for providing development opportunities or a basic snapshot/track down of the current level of performance ..
5. Samvedan ‘s point of views:
Both lead to your/organization’s judgement as to the performance of the individual in question. Appraisal sounds more refined than the Evaluation, in that one is to “measure” against a yard-stick and the other is to judge (perhaps even without “measuring”.)
In that sense Appraisal tend to be understood as more “objective” and the Evaluation” appears to be more “subjective”. But this need not necessarily be so and how it will be depends upon the individual who appraises or evaluates, his training, his competence on the job and his own personality strengths and weaknesses.
Performance appraisal glossary / dictionary / terms
1. Performance appraisal: also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development.
2. Paired Comparison Method: Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair.
3. Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in various categories.
4. Graphic Rating Scale: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait.
5. Alternation Ranking Method: Ranking employees from best to worst on a particular trait.
6. Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times.
7. Behaviorally Anchored Rating Scale (BARS): An appraisal method that aims at combining the benefits of narrative and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.
8. Management By Objectives (MBO): Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.
9. Unclear Performance Standards: An appraisal scale that is too open to interpretation; instead, include descriptive phrases that define each trait and what is meant by standards like “good” or “unsatisfactory.”
10. Halo Effect: In performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits.
11. Central Tendency: A tendency to rate all employees the same way, avoiding the high and the low ratings.
12. Strictness / Leniency: The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.
13. Bias: The tendency to allow individual differences such as age, race, and sex to affect the appraisal rates these employees receive.
14. Appraisal Interviews: An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.
Performance appraisal criteria
1. Appraisal criteria of top management
• Extent of achievement of organizational goals.
• Contribution towards the society.
• Degree of organizational growth and expansion.
• Profitability and return on capital employed.
2. Appraisal criteria of middle managers
• Optimal use of resources.
• Performance of the departments or teams.
• Co-ordination with other departments.
• The communication with superiors and subordinates.
• Costs Vs. revenues for a given period of time.
3. Appraisal criteria of front line supervisors
• Quantity of actual output against the targets.
• Quality of output against the targets.
• Number of accidents in a given period.
• Rate of employee absenteeism.
PROBLEMS IN PERFORMANCE APPRAISAL
1. Problems with leniency and strictness:
• The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently.
• Equally damaging one is assigning consistently low rates.
2. Problems with central tendency:
• Some raters appraise all the employees around the middle point of the rating scale and they avoid rating the people higher or lower level.
• They follow play safe policy because of answer ability to management or lack of knowledge about the job and person he is rating or least interest in his job.
3. Problems with personal prejudice:
If the rater dislikes any employee, he may rate them at the lower end and this may distort the rating purpose and affect the career of these employees.
4. Problems with halo effect:
• To minimizing the halo effect, you should appraise all the employees by one trait before going to rate on the basis of another trait.
• A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well, even when such a rating is undeserved
5. Problems with recent performance effect:
In general, raters remember the recent appraisal of the employee and they usually follow appraisal results last time.