Documentation of Performance Appriasal Ch 10

7/28/2019 Documentation of Performance Appriasal Ch 10

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Human Resource Management

Documentation of Performance Management system

Submi tted To:

Respected Maam Saher Imtaiz

Submitted By:

Amana Habib (11022720-037)

Anum Ameer (11022720-127)

Saba Khalid (11022720-026)

Sonam Arshad (11022720-047)Sagheer Sadiq (11022720-021)

Sohai l Yousaf (11022720-074)


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Performance Management

Performance Management Systems Three Purpose of Performance of Management SystemDifficulties in Performance Management SystemsPerformance Management and EEO The Appraisal ProcessAppraisal MethodFactor that can Distort Appraisal Creating more Effective Performance Management Systems The Performance Appraisal MeetingInternational Performance Appraisal


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Introduction;Performance management(PM) includes activities that ensure

that goals are consistently being met in an effective and efficient manner. Performance

management can focus on the performance of an organization, a department, employee, or even

the processes to build a product or service, as well as many other areas.

Employees generally see performance evaluations as having a direct effect on their work lives.The performance management systemsneed to include:

Decisions about who should evaluate performance What format should be used How the results should be utilized

Performance Management system;The performance management

systems is the process of creating a work environment or setting in which people are enable toperform the best of their abilities. Performance management is the whole system that beings

when a job is defined as needed. It end when any employee leave the organization.


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Purpose Performance Management system:

Performance Management links people to performance and profit. It starts by understanding

what success looks like for an organization, and then ensures that everyone in an organization

works effectively to achieve that success.

Feedback;Every method of gathering employee feedback depends on what challenges

you need to address as a business. Consider: Is your employee base growing or downsizing? Are

you preparing for a merger or staying level?

Professionals in the industry of employee research say offering general feedback opportunities

are importantopen-office policies or meeting with managersbut specific targeting ofissues can help guide your company through difficult times.

Common questions managers seek input on include: how engaged are my employees? How

satisfied are they working for the company? What is the communication like with management?Do they have the right tools to do the job? How secure do they feel in the job?

Development"Employee Development" was seen as too evocative of the master-slave

relationship between employer and employee for those who refer to their employees as

"partners" or "associates" to be comfortable with. ". This activity focuses upon the activities thatthe organization employing the individual, or that the individual is part of, may partake in the

future, and is almost impossible to evaluate

Documentation

Managing people is one of the most time-consuming and difficult aspectsof any job. Whether you have one direct report or 20, the responsibilities loom large and finding

the time to follow sound management practices in everything you do as a supervisor can bechallenging. Documentation of performance and conduct issues often feels like one of the most

burdensome duties, and unfortunately it is the one that usually gets put off the longest.

How many managers actually take the time, either during a meeting with an employee orimmediately after, to write notes about the conversation and put it in his or her manager's file?

Most managers will say that they do not document everything they should and even if they do,

they admit it may not get done until several days, weeks, or months have passed and it's time for

annual performance reviews. They also acknowledge later, if the employee's performance orconduct has not improved, that the notes they wrote were not a complete representation of what

was actually discussed.

Employee Decision; -Employee involvement is creating an environment in

which people have an impact on decisions and actions that affect their jobs. Employeeinvolvement is not the goal nor is it a tool, as practiced in many organizations. Rather, employee

involvement is a management and leadership philosophy about how people are most enabled to

contribute to continuous improvement and the ongoing success of their work organization.


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Diff iculties in Performance Management System:-There are two

types of difficulties in performance management system these are given below.

Focus on the individual:-Discussions of performance may elicit strong emotions

and may generate conflicts when subordinates and supervisors do not agree.

Focus on the process:Company policies and procedures may present barriers to a

properly functioning appraisal process. Additionally, appraisers may be poorly trained.

Performance Management and EEO:-

HRM practices must be bias free, objective and job-related.Valid performance appraisals are conducted at established intervals and are done by trained

appraisers.

The Appraisal process:-The performance appraisal process consists of six

steps. A performance appraisal is a review and discussion of an employee's performance ofassigned duties and responsibilities. The appraisal is based on results obtained by the employee

in his/her job, not on the employee's personality characteristics. The appraisal measures skills

and accomplishments with reasonable accuracy and uniformity. It provides a way to helpidentify areas for performance enhancement and to help promote professional growth. It should

not, however, be considered the supervisor's only communication tool. Open lines of

communication throughout the year help to make effective working relationships.Each employee is entitled to a thoughtful and careful appraisal. The success of the process

depends on the supervisor's willingness to complete a constructive and objective appraisal and

on the employee's willingness to respond to constructive suggestions and to work with the

supervisor to reach future goals.

1. Establi sh perf ormance standards2. Communicate expectations3. Measure actual performance4. Compare actual performance with standards5. Discuss the apprai sal wi th the employees6. I ni tiate corrective action i f necessary


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Establishment of performance standards:-Performance expectations are the basis

for appraising employee performance. Written performance standards let you compare theemployee's performance with mutually understood expectations and minimize ambiguity in

providing feedback.

Communication Expectation:-Once performance standards are establish it is necessary to

communicate these standards to the employees to get better performance.

Measurement of per formance using inf ormation f rom:The third step in the

appraisal process in performance measurement. To determine what actual performance is, we

need information about it. We should be concerned with how we measure and what we measure.

Comparison of Actual Performance with standards;-In this step actual performance

is compared with standard performance. This step notes deviation between standard

performance and actual performance. The performance appraisal from should include a list and

explanation of the performance standards. It should also include a list and explanation of thedifferent levels of performance and their degree of acceptability against the performance

standard.

Discussion of appraisal with employee;-In this step you will discuss the employee

behaviour with employee and tell about what are the positive point of the employee and what the

negative point of the employee is during the working. You also suggest the employee how youwill remove his negative point which may occurs the hurdle in the performance of the employee.

I denti f ication of corrective action where necessary;-The final step of the

performance appraisal is the identification of corrective action where necessary. Corrective

action can be two types; one is immediate and deals predominantly with symptom, and other is

basic and delves into cause. Immediate corrective action is often describe as putting out fireswhere as basic corrective actions touches the source of deviation and seeks to adjust the

different permanently.


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Appraisal Methods:-HRM can actually establish performance standards

and devise instruments to measure and appraise an employees performance. There are three

types of appraisal method which is used by the HRM to evaluate the employees performance.

1. Absolute Standards2. Relative Standards3. Outcomes Methods.

No one Approach is always best; each has its strength and weakness. Mostly organization uses

the combination of these methods.

1. Absolute Standards:-This means that employees are compared to a standard ,and their

evaluation is independent of any other employee in a work group. This process assesses

employee job traits and/or behaviors. This method has further sub method in it. These are givenbelow

1. The cri tical incident appraisal.2. The Check list.3. The Graphic Rating Scale.4. Force Choice.5. Behaviorall y Anchored Rating Scales.

Cri tical I ncident Appraisal:-

The critical incident method of performance appraisalinvolved identifying and describing specific events (or incidents) where the employee didsomething really well or something that needs improvement. It's a technique based on the

description of the event, and does not rely on the assignment of ratings or rankings, although it

is occasionally coupled with a ratings type system.

Checkli st Appraisal: -This is the simplest way of evaluation wherein the rater is given a

checklist containing a description of the employee behaviour on the job. The duty of the superioris to find out which description best suits the employee. The checklist contains many statements

which might be appropriate in describing the employees on the job performance. The flawthe

checklist might not contain a certain statement which best describes the employee and is not freeof the raters bias. However, this system is widely used and accepted.


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Graphic r ating scale;-This is one of the oldest and the most commonly used methods

for appraisal used alongside Essay Appraisal Method. In this method, aprinted form is used formeasuring both the quality and the quantity of work done by an employee. The form has a

graphic scale, indicating the various degrees of a particular trait. The factors taken into

consideration are both personal and the professional ones in nature. It is an easy to understandand easy to use method where rating is done in a tabular form. But then, this method is also not

bias free as the supervisor may plot the graph depending on the rapport with the employee

rather than objectively marking performance..

Forced-Choice Appraisal: -

Appraisers choose from sets of statements which appear to beequally favorable, the statement which best describes the employee. Appraisal is based on a

choice from a number of pre-written statements. There is no provision for a rating that you think

falls between two choices. This is the reason why it is called forced choice.The end result is a "bell-shaped" evaluation results. The majority of employees will fall around

the middle range. There are very few people in the non-performance and outstanding

performance ranges of the scale.

This method does not truly reflect actual performance level of employees. One of the risks is thatsuperiors may rate all their people within the middle range. This does not serve any purpose. But

it can lead to dissatisfaction.

Behavioral ly Anchored Rating Scales (BARS):-

Appraiser rates employee on factors which

are defined by behavioral descriptions illustrating various dimensions along each rating scale. Itis combination of the critical incident technique and the rating scale method.

This method identifies behaviors that demonstrate high performance. But it requires the

preparation of detailed performance levels ranging from1 for very poor to 5 for very good or

from 1 for extremely poor to 7 for extremely good. How good is "good" and how poor is "poor"is something that every assessor must understand well. If not the results may not reflect actual

performance.


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2. Relative Standards:-Evaluating an employees performance by comparing the

employee with other employees.Relative Standards are further categories into three categories.

1. Group Order Ranki ng.2.

I ndividual Ranking.

3. Pair ed Comparison.Group Order Ranking:

Employees are placed in a classification reflecting their relative

performance, such as top one-fifth. The ranking system requires the rater to rank hissubordinates on overall performance. This consists in simply putting a man in a rank order.

Under this method, the ranking of an employee in a work group is done against that of another

employee. The relative position of each employee is tested in terms of his numerical rank. It may

also be done by ranking a person on his job performance against another member of thecompetitive group.

I ndividual Ranking:-Individual ranking: In this type of appraisal, individuals are

ranked from highest to lowest. It is assumed that the difference between the first and second

employee is equal to difference between 21 and 22 employees. In this method, the managercompares each person with others than work standards.

Paired Comparison:-This is a method of comparison where each employee is first

compared with the peers, one at a time, and when all the comparisons are done, the employees

are given the final rankings.

3. Using Achieved Outcomes to Evaluate Employees: -Employees are

evaluated on how well they accomplished a specific set of a objectives determined as a critical inthe successful completion of their job. This approach may be referred to as goal setting but is

more commonly referred to as management by objective (MBO).

The organization overall objectives are translated into specific objectives for eachsucceeding level, divisional, departmental and individuals in the organization.

Management by Objectives (MBO): -A performance appraisal method that

includes mutual objective setting and evaluation based on the attainment of the specificobjectives. Management by Objectives (MBO) is one of the more popular performance appraisal

methods among organizations.MBO requires you to establish the objectives of the job.

The questions asked in performance appraisal are whether these objectives are achieved by

employees and to what extent.


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Common Element in M BO Programs:-There are four ingredients are common in the

MBO Programs.

Specif ic Goals. Participative Decision Making. Specif ic Time Period. Performance Feed Back.

Effectively increases employee performance and organizational productivity.In MBO, the

objectives are not unilaterally set by the boss and assigned to employees, as is characteristic of

traditional objective setting. Rather, MBO replaces these imposed goals with anticipativelydetermined goals. The manager and employee jointly choose the goals and agree on how they

will be achieved. Each objective also has a concise time period in which it is to be completed.

Typically the time period is three months, six months, or a year.

Factors that can Distort Appraisals;-The appraisal process can be distorted by

many factors. Leaving the resulting appraisal meaningless. Evaluators need to be aware of the

factors that can cause can problems with the process and take care to eliminate their influences.

A completely error free performance appraisal is only and idle HRM professional can aim far. In

reality, most appraisal for short, open through one or more action that can significantly impede

objective evaluation.

Leniency err or; -

Leniency error is defined as the tendency for a raters overallpositive impression of an individual to influence performance ratings. Hence, the positive

impression impacts the ratings provided by therater.

When arateereceives this feedback, he/she has no reason or motivation to improve or develop

performance. Raters should focus on each goal, objective, responsibility, or competency

separately and identify independent areas of both strengths and development needs.

Halo err or:-Evaluator lets an assessment of an individual on one trait influence evaluation

on all traits.Amistakeorbiasthat can occur in evaluating anindividual'sperformancewhere

they are consistentlyratedbased on the evaluator's overall impression, rather than on theiractual performance in various categories.Human resourceprofessionalsevaluatingemployeesof abusinessneedto be aware of the halo error and correct for it.
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Centr al tendency:The reluctance to use the extremes of a rating scale and to adequately

distinguish among employees being rated.

I nf lationary pressures:

Pressures for equality and fear of retribution for low ratings leadsto less differentiation among rated employees.

I nappropriate substitu tes for per formance:Effort, enthusiasm, appearance, etc. are

less relevant for some jobs than others.

Attr ibution Theory;-Evaluations are affected based on whether someones performance

is due to

-internal factors they can control

-external factors which they cannot.If poor performance is attributed to internal control, the judgment is harsher than when it isattributed to external control.

Impression management;-If employee positively influences the relationship with the

supervisor, he/she is likely to receive a higher rating.

Creating more Ef fective PMS:-Managers can strive to make performance

appraisalsmore effective by making these steps.

1. Used behaviors-based measures.2. Combine absolu te and Relative standard.3. Provide ongoing feedback.4. Have mul tiple raters.5. Rate selectively.6. Train appraises.

Use Behavior -Based M easur es:-

Measures based on specific descriptions of behavior aremore job-related and elicit more inter-rater agreement than traits, such as loyalty or

friendliness.

Combine Absolute and Relative Standards:-Absolute standards tend to be positively

lenient; relative standards suffer when there is little variability. Combining the standards tendsto offset the weaknesses of each.


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Provide Ongoing Feedback:-Expectations and disappointments should be shared with

employees on a frequent basis.

Use Mul tiple Raters:-Increasing the number of raters leads to more reliable and valid

ratings.

Use peer evaluations: -Coworkers offer constructive insights and more specific

evaluations. Upward appraisals allow employees to give their managers feedback.

360-Degree appraisals:-Several parties are required to assess the same employee.

These include the employee himself / herself, working colleagues as internal customers, the

superior, outside parties such as customers and suppliers. There are some organizations that use

this appraisal method. It is yet to gain wide acceptance. Most organizations are not yet ready to

implement this far-reaching evaluation method.

.

Train Appraisers:-Untrained appraisers who do poor appraisalscan demoralize

Employees andincrease legal liabilities.

The Performance Appraisal M eeting:-

HRM spent all the time in doing that Linking goals to jobs. Developing assessment criteria of employment. Creating forms (Appraisal or etc) observing the employees And completing appraisal process.

There are some steps should be in mind while preparing effective appraisal meeting. Prepare Appraisal schedule in Advance. Explain the purpose of meeting. Describe the purpose of PA to employee. Involve employee in the Appraisal discussion. Focus on work behavior not on employee. Support your Evaluation with example. Give the positive and Negative feedback. Ensure that employees understand discussion of PA Generate Development Plan.

Prepare Appraisal schedule in Advance; -


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Before meeting with any employees you

must review, the job description, period of goals attain, any performance data you have about

the employee. You also comment on the last appraisal of employee which motivates them.

Create Suppotative Envir onment; -

To get constructive feedback from employeeand create supportive environment (friendly).your non verbal communication is none treating

the Employee?

Describe the pur pose of PA to employee;-Tell about Appraisal method .Make

sure employee must understand the appraisal performance.

I nvolve employee in the Appraisal discussion; -It means you also take chance

to employee to evaluate himself honestly or get his opinion while evaluating his performance

appraisal.

Focus on work behavior not on employee; -Dont verbally attack on the

employee your focus is on the working behavior of the employee while working hours.

Support your Evaluation wi th example;-You convince your evaluation to employee

with the help of some example .for e.g. you evaluate that employee working is bad may he

hearted but if u ask your working is not good than he feel less.

Give the positive and Negative feedback; -PA is not only concord with

negative point of the employee it also highlight the positive working of the employees which

encourage employees for working better.

Ensure that employees understand discussion of PA; -Where he is week in his

working and where he doing well and how to improve his working in future.

Generate Development Plan; -PA revolves around feedback & documentation but it also

need development efforts are encouraged. A Plan should be describe, what is to be done, when itto be done and how it to be done and who will supervise this plan.


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I nternational Performance Appraisal; -

International performance appraisal (IPA) is a strategic HRM process that enables the

multinational corporation (MNC) to evaluate and improve continuously individual, subsidiary

unit, and corporate performance against clearly defined, preset objectives. Effective IPA creates

an incentive system that can ensure international employees and overseas subsidiaries are actingin accordance with the home companys interests. IPA is complex mainly due to information

asymmetry and goal incongruence between the parent company and its subsidiaries. Thereare many approaches to IPAs for MNCs to choose from, and these approaches are affected by

many host-contextual and firm-specific factors

Evaluating employee performance in international environments brings other factors into play.For instance, cultural differences between the parent and the host country must be considered.

Cultural differences between the United States and china, for example. Thus, hostility or

friendliness of the cultural environment in which one manages should be considered when

appraising employee performance.

Who performs the evaluation?Companies must also consider who will be responsible

for the evaluation; the host-country management or the parent country management. Although

local managers would generally be considered a more accurate gauge, the typically evaluateexpatriates from their own cultural perspectives and expectations, which may not reflect those of

the parent country. For example, a participatory style of management is acceptable in some

countries, and on other hierarchical values makes it a disgrace to ask employees for ideas. This

could vastly alter a supervisors performance appraisal.

Evaluation Formats;-May make sense to use different forms for parent-country nationals

and host-country nationals. Performance criteria for a particular position should be modified to

fit the overseas position and site. Include a current expatriates insights as part of the

evaluation.Other issue surrounds the question of selecting the best format to use in performance appraisals

.if there is an overseas operation that includes both parent-country nationals (PCNs) and host-

country nations (HCNs), management must determine if they will use the same forms for allemployees. Employees in counties with collectivist cultures (Japan, china, Vietnam) that value

the group more strongly than the individual will probably not react well to performance

appraisal systems that evaluate the individual, raising suspicion and mistrust within group.

Evaluation of the work group or division may be a better choice. Employees in countries withindividualist cultures (Australia, France, and Italy) will react much better to individual

evaluations, but may not see much direct connection to a group performance appraisal.


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Explanation of Pak -Qatar Takaful insurance company

There are three types of appraisal method which is used by the HRM to evaluate the employees

performance.

1. Absolute Standards2. Relative Standards3. Outcomes Methods.

We have studied the performance appraisal form of the Pak-Qatar Takafu l insurance company

fir the practical understanding of the topic. The method used by this company is Graphic rating

scale appraisal. This method falls in the absolute standard.

Pak-Qatar Takafu l insurance companyappraisal consists of six sections of graphic rating.

Each section contains different criteria or performance factors, for e.g. the firsts section has

taken performance against key areas of responsibilities. The criteria than chosen then areweighted on a scale of 1 to 5.

As total weighted is 100% here the section rating comes out to be 30% with average rating of

75%.

Section A consists of the performance appraisal method that lists traits and range of the

performance for each. Every rating has a key that shows whether the score meets exportations is

below expectation or exceeds expectations. Its weighted is 40%.

Sections B is about Job Effectiveness that shows the ratings against the quality of the work,

organizing, Jon Knowledge, judgment, punctuality and dependability. In this way, the total

section weighted comes out to be 30%

Similarly, section C shows performance ratings against core company values with section

weighted of 30%.

Section D is to be filled by the supervisor, so its weighted is 0.

A performance appraisal evaluation of Mr. Kashif Zafar who is Executive officer in the Brachoperation of

Pak-Qatar Takafu l insurance companyin region Gujranwala will also be attaching for a

sample.

Documents

Documentation of Performance Appriasal Ch 10