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Performance Appraisal Methods Overview

The document discusses performance appraisal methods and examples in public sector organizations. It describes several performance appraisal techniques including rating scales, critical incidents, essays, work standards, ranking, forced distribution, and 360-degree feedback. Annual confidential reports are discussed as the traditional method used in many developing country public sectors, but this method is criticized for its lack of employee participation and feedback. The document also provides an example of the performance appraisal process used at the Islamia University of Bahawalpur which utilizes an annual confidential report system.

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0% found this document useful (0 votes)
91 views14 pages

Performance Appraisal Methods Overview

The document discusses performance appraisal methods and examples in public sector organizations. It describes several performance appraisal techniques including rating scales, critical incidents, essays, work standards, ranking, forced distribution, and 360-degree feedback. Annual confidential reports are discussed as the traditional method used in many developing country public sectors, but this method is criticized for its lack of employee participation and feedback. The document also provides an example of the performance appraisal process used at the Islamia University of Bahawalpur which utilizes an annual confidential report system.

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© Attribution Non-Commercial (BY-NC)
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Human resource management assignment

Performance and performance appraisal Performance appraisal is a continuous process through which performance of employees is identified, measured and improved in the organization. This process includes various practices like recognition of employees achievements, providing them regular feedback and offering career development (Aguinis, 2007; Lansbury, 1988). Wilson (2005) supported the idea and explored that performance management is neither a technique nor a single step process, it can be considered as a set of process that includes knowledge of employees about what their managers expect of them, their motivation to perform well, mentoring and evaluation of their performance aimed at identifying areas where the improvements are needed. Various practices in performance management Annual confidential report (ACR) system was introduced in the 1940s, and is still being used in public sector organizations of many developing countries. Communication gaps, personal biasness, lack of employees participation are some of the negative aspects of ACR system which makes it an old and ineffective system, that does not help in employees learning and development, (Stafylarakis et al., 2002). The next practice was management by objectives (MBO) which allows the managers to know what is being expected from them (Walters, 1995). However, critics argue that MBO focuses on results and fails to notice the job behavior (Greer, 2001; Stafylarakis and Eldridge, 2002). Afterwards, performance Appraisal systems were introduced in the 1970s. Newstrom et al. (1993) argued

of his performance in future is the best technique for an employee to plan his performance. Performance of employees should be increased by performance management system. But unfortunately, performance appraisals become ineffective when management gives focus to evaluation but not to the performance improvement and development of employees. Greer (2001) and Weihrich and Koontz (2005) maintained that when people are involved in goal setting they consider themselves responsible for their results, and achievement of their goals also depends upon the degree of support (resources, processes, systems) employees get from their management. Benefits of employees participation in performance appraisal systems Jordan (1992) have asserted his views about the participation of employees in appraisal systems. Jordan said that through participation, employees are given an opportunity to raise their voice. Biasness reduces and trust on the supervisors develops when performance standards and criteria for evaluation are set with the help of employee in a joint session between employee and supervisor. Decreased employee participation increases appraisal related tension and appraiser- appraisee conflicts.

Performance Appraisal Methods The type of performance appraisal system utilized depends on its purpose. If the major emphasis is on selecting people for promotion, training, and merit pay increases, a traditional method such as rating scales may be most appropriate. Collaborative

methods are designed to assist employees in developing and becoming more effective. a. 360-Degree Feedback:- Involves input from multiple levels within the firm and external sources as well. b. Rating Scales:-Rates employees according to defined factors. The factors chosen for evaluation are typically of two types: job related and personal characteristics. c. Critical Incidents:-Requires written records be kept of highly favorable and highly unfavorable work actions. d. Essay:-The rater simply writes a brief narrative describing the employees performance. This method tends to focus on extreme behavior in the employees work rather than routine day-to-day performance. e. Work Standards:-Compares each employees performance to a predetermined standard, or expected level of output. f. Ranking:-The rater simply places all employees in a given group in rank order on the basis of their overall performance. Paired comparison is a variation of the ranking method that involves comparing the performance of each employee with every other employee in the group. g. Forced Distribution:-An appraisal approach where the rater is required to assign individuals in the work group to a limited number of categories similar to a normal frequency distribution. h. Forced-Choice And Weighted Checklist Performance Reports:-The forcedchoice

performance report is a technique in which the appraiser is given a series of statements about an individual and the rater indicates which items are most or least descriptive of the employee. The weighted checklist performance report is a technique whereby the rater completes a form similar to the forced-choice performance report, but the various responses have been assigned different weights.

Examples of public sector


DATA INTEGRATION AND ANALYSES Demographics of the respondents The survey was conducted in three main campuses of the university; Abbasia, Khawaja Faridand Baghdad ul Jaded Campuses. Profile of the respondents includes professors, that the chairman of their department conducts their performance appraisal. 4% are of the view that this is the Vice Chancellor who actually conducts performance appraisal of teachers in university. In-depth research of secondary documents of the University shows that performance appraisal performance which is often called Annual Confidential Report (ACR) used for evaluating teachers performance in IUB has four parts. The 1st part of this form is to be filled by the teacher concerned and to be submitted to the Chairman of the department who is reporting officer for teachers in IUB, the 2nd part is to be filled by the reporting officer (Chairman) and to be submitted to the 1st countersigning authority who is Dean of the concerned faculty, the 3rd part is to be filled by Dean of the faculty

and then it goes to the second countersigning authority who is the Vice Chancellor of the university, who reviews the first three parts and on the basis of which, he finalizes performance appraisal of teachers. Indisputably, Vice Chancellor is the final competent authority to conduct performance appraisal of teachers in universities but chairman is the immediate supervisor in this case. A good indication in IUB is that performance appraisal forms have continuously been reviewed and improved by the university management that is, the reason why IUB performance evaluation Performa is considered to be an effective evaluation form by the current research respondents. The same response can be observed in the current research as 82% of the respondents agreed that it is categorized according to teachers designation that is, a different form for professor, assistant professor and lecturer. Performance appraisal system in IUB is an ACR (annual confidential report) system which is an obsolete performance appraisal technique. 71% of the respondents showed their extreme reservations about the current performance appraisal mechanism. Teachers stressed that ACR is a confidential report which is not shared with the person whom evaluation is being exercised. Also, teachers remain unaware about their high rated and low rated traits in the report. Review of the literature shows that researchers have explored many modern types of performance appraisal as management by objectives (MBO), performance appraisal with continuous feedback and 360 degree feedback systems. However, the research has shown that IUB is still relying on ACR system, where evaluation of the employee is kept confidential from him; hence hindering the improvement in his future performance. Results have shown that university needs to have a descriptive system rather than an evaluative one where

each teacher should be made aware of his evaluation, in order to give him constructive feedback for further
Performance Appraisal in HBL 2011Mariyam Najeeb The survey in order to collect the data was conducted in two branches of Habib Bank Limitedthat is Farid Gate Branch and Islamia University Branch, Bahawalpur. Questionnaires were g i v e n t o t h e e mp l o y e e s w h i l e i n t e r v i e w w a s c o n d u c t e d f r o m t h e ma n a g e r s o f t h e b r a n c h e s . Personal information of the employees was kept optional and many of them were hesitant indisclosing their [Link] exploring motivation of employees as an issue related to the performance appraisal in HBL,results show that employees are motivated if there is transparent and bias-free appraisal. Almosta l l t h e e mp l o y e e s w e r e i n f a v o r o f t h i s a s t h e y b e l ie v e d i f ma n a g e me n t i s e v a l u a t i n g t h e i r performance according to the job performance and awarding them with bonuses or incentivesrespective to that, employees will definitely be motivated to work harder than before.O n t h e r e s p o n s e t o t h e s t a t e m e n t t h a t t h e p e r f o r m a n c e a p p r a i s a l i n c r e a s e s e m p l o y e e mo t i v a t i o n , 5 6 % e mp l o y e e s a g r e e d s t r o n g l y w h i l e 4 4 % o f t h e e mp l o y e e s a g r e e d w i t h t h i s statement. Hence proved that transparent and proper performance appraisal does motivate theemployees to work to achieve the objectives of the organization. research is increase in performance. An efficient p e r f o r m a n c e a p p r a i s a l i n c r e a s e s t h e p e r f o r m a n c e o f a n e m p l o y e e . A s w e a l l k n o w t h a t performance appraisal is done to evaluate the job performance and if it is done according to theset rules keeping in mind the hard work done by the worker, the employees will perform their jobtasks happily and efficiently.O n t h e r e s p o n s e t o t h e s t a t e m e n t p e r f o r m a n c e a p p r a i s a l h e l p s t o w i n c o - o p e r a t i o n a n d teamwork, results show that 8% of the respondents agreed with this statement strongly, 40%simply agreed while 8% respondents were neutral, they neither agreed nor disagreed. Remaining44% disagreed with the above given statement strongly. This response of the employees showthat they do not believe that with performance appraisal teamwork and co-operation between theemployees is appreciated. 7

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Q2. Forecasting Technique in Human Resource Planning by Tara Duggan, Demand Media
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Analyze work operations so you can accurately predict staffing needs. Group of business people working together in the office. image by Andrey Kiselev from [Link] Related Articles

Characteristics of Human Resource Planning Common Pitfalls in Human Resource Planning A Definition of Human Resource Planning Approaches to Human Resource Planning Human Resource Planning Process Human Resource Planning Strategies

Determining the human resources required by an organization involves identifying the jobs, skills and knowledge required by those jobs and the performance level of the current workforce. Using this data, you can forecast hiring or reorganizing needs for both the short and long term. Forecasting methods typically includes using past data to predict future staffing. Additionally, organizations can use survey, benchmarking and modeling techniques to estimate workforce staffing numbers. Use several methods and cross-check your findings to obtain the most accurate results. Step 1 Analyze your work operations. Conduct a detailed job analysis for each function in your company and list the policies and procedures required to complete each task. Document the standard output per hour per person. Determine the desired level of output in order to calculate the number of people you need to produce that volume of operations. Step 2 Conduct a series of online surveys using the Delphi technique-asking several experts in your organization their opinion on forecasting needs based on their experience managing the employees in your organization who directly contribute to the creation of products or services. Experts typically do not share their opinions with each other. Create and distribute your survey using a tool such as Zoomerang, SurveyMonkey or Qualtrics to gather your data. Examine the input and prepare a forecast. Send the forecast to the original participants to get their new input. Repeat the survey process until all participants reach consensus that the forecast appears accurate. Step 3

Use calculators available from the Society of Human Resource Management website (see Resources) to calculate metrics such as the average length of service and 90-day turnover rates based on your current human resources data. Use this information to help predict future staffing needs. Step 4 Read reports available from the Department of Commerce on workforce planning needs to help you learn about trends and forecast your budget for hiring, training and paying staff required to compete in a global marketplace. For example, the Department of Defense estimates it spends about $250 annually to support workforce foreign language needs. Step 5 Document your forecasting process and follow it consistently throughout your company so that all managers align their forecast to your strategic direction, identify skill gaps, create action plans to address shortages, implement plans to hire and retain skilled personnel and evaluate forecasts on an ongoing basis. Using this model, you can more accurately guide workforce planning efforts for all skill areas such as information technology and knowledge management. Q3
What is the importance of human resources management in an organization? Answer: Improve HRM is the legal liason between the organization and the employees,they are to uphold the employment and safety laws (osha, and civil rights act) as well as follow the practices, which

may differ within federal guidelines, that the employer authorizes. Corporations are always searching for better ways to produce goods and services. When new technological developments give some organizations a competitive advantage, their rivals try to catch up by adopting and improving on the new technologies. Ford has put many of Toyota's technical advances to work in its own plants, and General Motors has spent over $50 billion in the last decade to modernize its production facilities to develop skills in flexible manufacturing. A large part of this growth is the Human Resources department of these companies, who are responsible for hiring the people with the knowledge to bring new technology into a company. To be successful in the automotive market, these companies needs a highly skilled, flexible and committed work force, a flexible and innovative management, the ability to retain developed talent, and a strong partnership between management and labor unions. To achieve these goals, the company needs a talented HR department. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by keeping them up to date about company plans, and laying out the implications for job security and working conditions. Such was the case when I worked at Velco. From the interview process to my exit interview at the end of the summer, the HR department was every employee's main connection between the production floor and the upper management. The HR department kept us informed via bi-weekly meetings, a company newsletter, and bulletin-board postings throughout the plant. Whenever a question arose, instead of asking middle-management, an employee could go straight to the HR rep they were assigned to. From my experiences, it seemed like the HR reps knew everything there was to know about the company and how it is run. And I found that to be a very valuable

asset. I imagine the same takes place at large corporations around the world, be it Velcro or General Motors.

The backbone of any successful company is the HR department, and without a talented group of people to hire, culture, and inform employees, the company is doomed for failure.

Why Human Resource Management is important inOrganization? HRM is very important in organization especially in public sectororganization. There are many issues arise in the public sectororganizations which need to resolve and HR managers are theperson who resolve these problems. In universities, there is all kindof people from President to security guard who should be managedproperly by some one. The Foremost and prime HR function in any organization isrecruiting the right person and then getting required quality andquantity of work in line with organizational goals which usesvarious tools and techniques for motivation, appraisal, training,cross cultural management, emerging issues in personnel lawslike, sexual harassment etc. One of the main reason for rise in corruption and selfishnesspursuit by public sector employees is jealousy towards unusuallyhigh wage rates in so called hifi and MNC organizations aroundthe globe, particularly in countries like Pakistan that are havingpoor quality of Public Administration, public awareness and legalsystems. With the help of HRM, loyalty can be developed and maintainedin employees. Another challenge facing Organizations is to handle legalpressures relating to employee related laws of new types likegender bias, racial or caste bias in employment, sexualharassment, ethical issues

Necessary expansion/contraction of work force. Training needed to utilize new technology Costs for hiring, training. Initiatives Control Job design Accountability Staff Specialists Employee Relations Bureaucratic-roles, policies, procedures Tight division of labor Training and developing people Managing employee performance Managing conflict in the workplace

Q4. There is actually quite a bit of difference between the three: Job analysis is a view of the work being done or needing to be done. You are analyzing the position which exists or is being created. You would look at what jobs are being done and how much time each job takes of the total. What responsibilities are involved. Whether or not supervisory duties are involved. How much is clerical or non exempt work. Is the position classified exempt or non exempt? What is the salary for the position. It is a plan and a pre requisite to write the job description. It actually gives you the information to write the job description. Basically it is a fact finding undertaking. I have a job analysis form I use for new job creations and for reevaluating current jobs. The Job description is a paper written description of what the person doing this job is expected to do and what is involved in the job. It is the final copy. This included the jobs being done, who the person reports to and what skills are needed to do the job. This is what the employee is given and also what is used to recruit candidates for the job. This is also used for EEOC purposes and other recordkeeping. This is the legal document and description of the job. It is the final document.

The Job specifications are what is needed to do the job. What skills are needed, what education is needed. Which job within the job needs special skills. Why are the skills needed for that specific part of the job. What education is needed to complete it and what experience is needed. What experience plus education is required. Sometimes it will be 5 years experience or a 4 year degree or something similar. This is the internal analysis of what it actually takes to get the job done broken down by specific jobs and their specific functions and what it takes to perfomthem.

Q5.

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Performance appraisals can be made more effective by ensuring they are transparent, bias-free, and focused on both evaluation and development. This involves engaging employees in the appraisal process, setting clear and mutual performance expectations, and delivering constructive feedback. The use of participative approaches, such as 360-degree feedback, can diminish bias and increase trust. Regular feedback and personal development plans can significantly boost motivation, as demonstrated by the response from Habib Bank Limited employees, who showed high motivation when appraisals were conducted fairly and resulted in rewards . Furthermore, incorporating participative elements, as suggested by Jordan (1992), helps reduce tension and conflict associated with appraisals .

The performance appraisal system at IUB, rooted in the Annual Confidential Report (ACR), highlights several limitations typical of traditional appraisal methods. It keeps evaluations confidential from the evaluated person, which inhibits constructive feedback and individual performance improvement . Respondents in IUB have expressed significant reservations about the ACR's effectiveness, emphasizing that a lack of transparency fails to uncover high and low rated traits, hindering development. The need for more descriptive rather than evaluative systems, where feedback is openly shared with employees, reflects potential improvements. Switching to comprehensive feedback systems like 360-degree feedback could address these issues by enhancing transparency and development focus .

Employee participation in the appraisal process positively impacts employee-supervisor relationships and appraisal outcomes by fostering trust and reducing bias. According to Jordan (1992), when employees engage in setting performance standards and criteria, transparency increases, leading to fewer conflicts and heightened trust in supervisors. Participation allows employees to express their views, which enhances their perception of fairness and ownership of the appraisal process. This participatory approach can lead to more meaningful appraisals, as employees are actively involved in the feedback loop, resulting in improved satisfaction and performance .

Performance appraisal systems can enhance cooperation and teamwork by emphasizing shared goals, recognizing team achievements, and providing balanced feedback that fosters a collaborative environment. By aligning individual objectives with team and organizational goals, appraisals encourage collective effort and responsibility. Transparent and participative appraisal processes can reinforce trust among team members, as they feel acknowledged and valued, which reinforces teamwork. Introducing team-based performance appraisals complements individual assessments, highlighting contributions to team success and fostering a cooperative culture . However, poorly designed appraisal processes that focus solely on individual achievements can hinder teamwork, as indicated by employee responses in HBL .

Utilizing multiple forecasting techniques in human resource planning is crucial for obtaining the most accurate staffing predictions. By using diverse methods such as historical data analysis, surveys, benchmarking, and modeling, organizations can cross-verify findings, minimizing the risk of errors inherent in any single technique. Such an approach allows organizations to better align their workforce with strategic goals by identifying current skill gaps and future staffing needs, and it helps mitigate risks associated with unexpected changes in workforce demand . Ensuring alignment and accuracy in forecasts supports long-term organizational agility and competitiveness.

The criticisms of Management by Objectives (MBO) involve its focus on results rather than on job behavior, leading to potential oversight of important developmental aspects of employee performance. Critics, including Greer (2001) and others, argue that while MBO is effective in clarifying expectations, its emphasis on end results without addressing the processes leading to those results can ignore significant performance issues related to job behavior and skills development . By not capturing the nuances of daily work behavior, MBO may miss opportunities for comprehensive employee development and motivation.

Modern performance appraisal methods, such as 360-Degree Feedback and continuous appraisal systems, surpass traditional methods by providing comprehensive, multi-source feedback that informs personal development plans. Unlike traditional methods that may focus on limited criteria and top-down assessments, modern methods incorporate diverse feedback sources, including peers and external stakeholders, thus reducing bias and offering a more balanced view of employee performance. This holistic approach encourages ongoing dialogue, enabling real-time feedback that supports immediate improvements and career development, thereby enhancing both individual and organizational performance . By focusing on both strengths and developmental needs, these methods align more closely with the dynamic goals of modern organizations.

Traditional performance appraisal methods, such as rating scales and ranking, often focus on measuring performance against predefined standards or relative ranking within a group. These methods typically involve limited input, primarily from a direct supervisor, and can overlook important nuances of employee behavior and performance over time . In contrast, modern methods like 360-Degree Feedback incorporate input from multiple levels and external sources, providing a holistic view of an employee's performance. This approach not only increases fairness by minimizing bias through diverse perspectives but also aids in identifying developmental areas by offering comprehensive feedback, encouraging continuous improvement and personal development .

Human Resource Management (HRM) ensures strategic alignment by identifying and recruiting talents that fit with organizational goals, implementing training programs to address skill gaps, and crafting policies that support long-term objectives. HRM functions as a bridge between strategic planning and operational execution; it prepares the workforce to meet future demands, facilitates adaptation to technological advancements, and fosters a culture of continuous improvement . By aligning recruitment, development, and retention strategies with organizational needs, HRM effectively contributes to achieving competitive advantages and supporting overall business success.

Improving performance appraisal systems in public sector organizations requires a shift from traditional methods, like the ACR system, to more transparent and participative approaches. This includes adopting methods like 360-degree feedback to capture diverse performance perspectives and enhance objectivity. Additionally, performance criteria should be collaboratively set with input from employees to ensure relevance and motivate performance improvement. Continuous rather than annual feedback cycles would facilitate timely interventions and development. Emphasizing descriptive feedback over mere evaluation supports employee growth and aligns appraisals with development goals. Leveraging technology for efficient data collection and analysis could also streamline the appraisal process and reduce biases .

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