I have attached a good template of Performance Appraisal.
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.
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What is performance appraisal?
1. Definition of Performance appraisal of Wikipedia
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. Definition of Performance appraisal of Washington University:
Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis for determining merit increases.
3. Definition of personalpsychologie.com
In personnel psychology, this term is used for the evaluation of the performance of an employee or a group measuring their contributions to the goals of the organization by reference to traits, behavior and results.
Training KRAs can include: (can apply for KPIs management)
1. Identify causes of delays in conducting training and reduce it by 3%
2. Take training in the areas of
b) to upgrade the latest developments in these areas by July’2010.
It may include subject knowledge, communication skills, computer skills,
3. The feedback from participants on Program ABC to be improved from 75% Very Good rating to 85% very good rating.
4. Feedback on Effectiveness of training conducted 3 months ago to be take from superiors of the participants to understand usefulness and improvement areas.
6. Conduct Training of 5 batches of ………… by Jun 2010.
7. Prepare method for calculating cost of training by 10th Dec. Take KRA to reduce this by 7% by the end of next quarter.
5. Develop training module content in the area of ………….. by May 2010.
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1. Definition of Key Result Areas (KRA)
“Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s role is responsible.
Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable.
2. Importance of KRAs.
• Set goals and objectives
• Prioritize their activities, and therefore improve their time/work management
• Make value-added decisions
• Clarify roles of department or individual
• Focus on results rather than activities
• Align their roles to the organization’s business or strategic plan
• Communicate their role’s purposes to others
3. Conditions of KRAs
• Key result areas (KRAs) capture about 80% of the department’s work role. The remainders are usually devoted to areas of shared responsibility.
• Each KRA should capture at least 5 % of work role
4. Types of KRAs:
• Training KRAs
• Management KRA
• Purchasing KRA
• RD KRA
• Administration KRA
• Finance KRA
• HR KRA
• Manufacturing KRA
• Quality KRA
• Marketing KRA
• Sales KRA
• Key result areas
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Behavioral Observation Scales
1. Definition of Behavioral Observation Scales (BOS)
• Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.
• The BOS was developed by Latham & Wexley (1977) who believed that both graphic rating scales and BARS require supervisors to make vague judgments.
• The BOS is a list of critical incidents behaviors which the supervisor has to rate in terms of frequency.
2. Rating scales
We use 5 scales as follows to identify frequency of behavior.
3. Identification of critical incidents
Items indicate either desired or undesired aspects of work performance, for examples :
• Worker misses workdays ________
• Worker never needs her/his work to be double checked _______
Forced ranking method in performance appraisal
1. Definition of 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.
The top-ranked employees are considered “high-potential” employees and are often targeted for a more rapid career and leadership development programs.
In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.
2. Application of Forced Ranking
GE, Ford Motor, Conoco, Sun Microsystems, Cisco Systems, EDS, Enron and a host of other U.S. corporations have adopted similar policies of this method
3. Advantages and disadvantages of forced Ranking
• They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group.
• They create and sustain a high performance culture in which the workforce continuously improves.
• They increase unhealthy cut-throat competitiveness;
• They discourage collaboration and teamwork;
• They harm morale;
• They are legally suspect giving rise to age discrimination cases.
1. Definition of 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).
2. Classification of Objectives
• Corporate objectives
• Functional objectives
• Individual objectives
3. Conditions of Management By Objectives
An objective must be satisfied SMART conditions:
• Relevant, and
4. Advantages of MBO
• It is based on the assumption that the individual (employee) knows more than anyone else about her/his own capabilities, needs, strengths, weaknesses and goals.
• A further advantage of MBO is that the emphasis is on the future rather than on the past. Appraisal thus becomes a means to a constructive end.
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Performance ranking method in performance appraisal
1. Definition of performance ranking method
Ranking 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.
2. Rating scale of ranking
• Much better – 5 points
• Slightly better – 4 points
• Equal – 3 points
• Slightly worst – 2 points
• Much worst – 1 point
3. Process of ranking
• The scaled comparison asks a rater or evaluator to compare the performance of two individuals.
• Continue comparison to other two employees.
• Total points to each employee.
• Give point to employee, for example: A is Slightly better – 4 points so that B is Slightly worst – 2 points.