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I. Contents of getting performance appraisal tools $$$$$$$$$$$$$$$$$$ %hen your performance appraisal tools let the employee #no! e&actly !here they stand, it ma#es for much smoother employee relations. 'any companies use a performance and appraisal process to evaluate their staff on a re(ular basis. )ome or(anisations have *uite elaborate performance appraisal tools that mathematically tie the employee+s ne&t pay increase to their appraisal ratin(. thers are much less formal. In most cases, ho!ever, these systems are an effort to let the employee #no! ho! they are doin( on the -ob. Promotions or the rationale for not no t (ivin( them are much easier to mana( mana(ee !hen a formal statement of the employee+s performance is a(reed upon. "Lip Service"
0ood ideas are !orthless if they are not implemented. &cellent appraisal systems !ill fail if they are not follo!ed, or if mana(ers simply pay pa y lip service to them. ll too often, performance appraisals are done because bec ause the mana(er suddenly realises that it+s that time of year a(ain. 4hey then thro! somethin( to(ether rapidly, because they have to meet the deadline.
4he result is that the mana(ers appraisal tar(et is met, but the employee does not really (et properly appraised. ne reason for this is that many mana(ers consider appraisals as -ust another chore that must be done. 4hey see it as outside their immediate -ob 6 an added activity that does not really contribute to their immediate situation. Nothing could be further from the truth.
No Need for Complexity
nother reason for appraisals not bein( performed !ell is that the process itself is often far too comple&. If the mana(er does not really understand ho! the appraisal system !or#s, or ho! to ad administer minister it, they !ill see it as comple&. n appraisal system that is based on opinion can, indeed, be comple&. If the mana(er has to ma#e value -ud(ements about the !orth of a particular employee, they are -ustified in complainin( about the comple&ity of the process. pinions are never a stable basis for ma#in( such evaluations. 0ood performance appraisal tools should be7 • • •
)imple. asy to administer. 8elevant to the -ob and the employees performance. )uch a system is far more li#ely to be used by mana(ers. 4hey !ould see the value of it and h ho! o! relevant it !as to their activity. )o, ho! do you construct a performance and appraisal system that !ill meet these criteria9 Its simple simple 6 you base it on actual performance that can be measured. Define the Result
4he very first thin( you must do to ensure that your performance appraisal tools !ill !or#, is to define e&actly !hat result you !ant this employee to produce. • •
:oo# at the area they !or# in and ho! it relates to other areas around them. %hat part of the !hole activity do they contribute to9
4his is probably the most difficult part of the e&ercise and you should spend as much time as is necessary to (et this ri(ht. s has been said before, you pay people for the results they ach achieve. ieve. 8esults are measurable, tan(ible thin(s. If you thin# they are not producin( a measurable result, !hat are you payin( them for9 If they suddenly disappeared, !hat results !ould be lac#in( in your operation9 %ith some -obs it is very easy, of course, because the result is ri(ht there in front of you, for e&le7 • •
sales person produces sales, or revenue, or some such. production !or#er produces completed production p roduction items. ;ut ho! about a secretary or an accountant9 <ou need to loo# a little harder to establish the valuable results they produce. ;ut you !ill definitely find them. =ere are the #ey *uestions to as# yourself !hen establishin( the results for a particular employee7
1. Is it it of of va value tto o an another pa part of of the the or( or(anisation9 2. Is it measurable9 3. Is it !it !ithin hin the the empl employ oyee ees con contr trol ol to infl nfluenc uencee tthe he re ressul ultt9 Get the Employees !reement %hen mana(in( performance appraisals, it is vital that the employee understands !hat the measurable results are for the -ob. 4hey also need to a(ree that these results are, indeed, valid and achievable !ithin their o!n sphere of control. ne !ay to achieve this is to actually (et the employee to iden identify tify the valuable result they are supposed to be producin(. ;e careful here, ho!ever, as this !ill not al!ays !or#. %ith a top performer !ho is already resultsoriented you have a (ood chance. ;ut if the employee cannot see the bi( picture, they may have no concept of ho! their -ob fits into the !hole. >onse*uently, they could come up !ith a !ron( ans!er here. =o!ever, their ans!er !ill (ive you a startin( point for findin( the ri(ht one. nce you have their a(reement on the !ay you !ill be measurin( their performance, you can then set some specific tar(ets that can be measured and an d (raphed. ;ut (et the employees a(reement on these too. Performance appraisal tools depend a lot upon a(reement.
Its no! much easier to measure their pro(ress and final achievements because you have eliminated opinion# Opinion or $act%
;y focusin( on the valuable result that the employee is supposed to be producin(, you can no! tal# in terms of facts that can &e measured as statistics. <ou <ou can no! set some specific benchmar#s and tar(ets a(ainst !hich to measure their performance. <our performance appraisal tools are no! in the realm of numbers that can be measured and <our compared. 4heres no opinion involved !ith sayin(, %e %ell, ll, the tar(et !as 25,??? 25, ??? and you only achieved 15,5??. 4hats not very (ood. 4hey cant ar(ue !ith that. secretary can ar(ue !ith an opinion that they did not (ive sufficient support. %hats %hats sufficient9 r a trainin( mana(er could attac# an opinion that they did not run (ood trainin( • pro(rams. %hats %hats (ood9 ! 'or(a&le 'or(a&le System •
If you can eliminate the opinion and an d replace it !ith measurable statistics, you immediately remove the comple&ity from the process. 1.
;y !or#in( !ith an areed measure of the results, you ma#e it easier ea sier to administer the pro(ram. 2. %hen %hen yo you u tal tal# # in in tter erms ms of the the act actual ual valua valuabl blee rres esul ults ts th that at th thee emp employ loyee ee is su suppo ppose sed d tto o produce, you are definitely bein(relevant to the )o& and the performance. 0ivin( your employees an appraisal based upon an a(reed measure of the results they produce can be very po!erful. 4hey #no! e&actly !here they stand and there can be no ar(ument about the results !hen your performance appraisal tools are used this !ay@ $$$$$$$$$$$$$$$$$$
III. Performance appraisal methods
1. Essay Method
In this method the rater !rites do!n the employee description in detail !ithin a number of broad cate(ories li#e, overall impression of performance, promoteability of employee, e&istin( capabilities and *ualifications of performin( -obs, stren(ths and !ea#nesses and trainin( needs of the employee. dvanta(e A It is e&tremely useful in filin( information (aps about the employees that often occur in a betterstructured chec#list. Bisadvanta(es A It its hi(hly dependent upon the !ritin( s#ills of rater and most of them are not (ood !riters. 4hey may (et confused success depends on the memory po!er of raters.
2. Behaviorally Anchored Rating Scales statements of effective and ineffective behaviors determine the points. 4hey are said to be behaviorally anchored. 4he rater is supposed to say, !hich behavior describes the employee performance. dvanta(es dvanta(es A helps overcome ratin( errors. Bisadvanta(es A )uffers from distortions inherent in most ratin( techni*ues.
3. Rating Scale 8atin( scales consists of several numerical scales representin( -ob related performance criterions such as dependability, initiative, initiative, output, attendance, attendanc e, attitude etc. ach scales ran(es from e&cellent to poor. 4he total numerical scores are computed and final conclusions are derived. dvanta(es A daptability, daptability, easy to use, lo! cost, every type of -ob can be evaluated, lar(e number of employees covered, no formal trainin( re*uired. Bisadvanta(es A 8aters biases
*+ Chec(list method
Cnder this method, chec#list of statements of traits of employee in the form of <es <es or Do based *uestions is prepared. =ere the rater only does the reportin( or chec#in( and =8 department does the actual evaluation. dvanta(es A economy, econo my, ease of administration, limited trainin( re*uired, standardiEation. Bisadvanta(es A 8aters biases, use of improper !ei(hs by =8, does not allo! rater to (ive relative ratin(s
,+Ran(in -ethod
4he ran#in( system re*uires the rater to ran# his subordinates on overall performance. 4his consists in simply puttin( a man in a ran# order. Cnder this method, the ran#in( of an employee in a !or# (roup is done a(ainst that of another employee. 4he relative position of each employee is tested in terms of his h is numerical ran#. It may also be done by ran#in( a person on his -ob performance a(ainst another member of the competitive (roup. !dvantaes of Ran(in -ethod mployees are ran#ed accordin( to their performance levels. It is easier to ran# the best and the !orst employee. Limitations of Ran(in -ethod 4he F!hole manG is compared !ith another F!hole manG in this method. In practice, it is very difficult to compare individuals possessin( various individual
traits. 4his method spea#s only of the position !here an
employee stands in his (roup. It does not test anythin( about ho! much better or ho! much !orse an employee is !hen compared to another employee. %hen a lar(e number of employees are !or#in(, !o r#in(, ran#in( of individuals become a difficult issue. 4here is no systematic procedure for ran#in( individuals in the or(aniEation. 4he ran#in( system does not eliminate the possibility of snap -ud(ements.
H. Critical Incidents Method 4he approach is focused on certain critical behaviors of employee that ma#es all the difference in the performance. )upervisors as and !hen they occur record such incidents. dvanta(es A valuations are based on actual -ob behaviors, ratin(s are supported by by descriptions, feedbac# is easy, reduces recency biases, chances of subordinate improvement are hi(h. Bisadvanta(es A De(ative incidents can be prioritiEed, for(ettin( incidents, overly close supervision feedbac# may be too much and may appear to be punishment.
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