Performance Management

Performance management and appraisal are related subjects. An organisation cannot afford to hoard knowledge and performance parameters and efficiency. It has to share it across the sub domains to be competitive. Performance management is a continuous phenomenon whereas performance appraisal is time stamp evaluation of performance based on certain parameters within a period.

Performance management/appraisal has the following four common steps

1. Definition of desired job performance
2. Individual’s performance on the job vis a vis defined performance
3. Feedback process and challenging goal setting
4. Decision regarding rewarding, retaining, promoting, training, demoting or terminating based on evaluation

1.      Define Job Performance

•   Coaching Appraisal instrument
•   Technology supporting it
•   Appropriate definition of performance
• Relevant performance dimensions
•  Performance standards or expectations
• Weightage of situational constraints
• Number of performance levels
• Absolute or relative comparison standards

Campbell et al.’s theory posits a taxonomy of higher-order performance components, namely, (1) job-specific task proficiency, (2) non-job-specific task proficiency (i.e. organizational citizenship behaviour), (3) written and oral communication proficiency, (4) demonstration of effort, (5) maintenance of personal discipline, (6) facilitation of peer and team performance, (7) supervision/leadership, and (8) management/administration.

Performance Appraisal Instruments

·         BARS (Behaviourally anchored rating scales)

·         BOS ( Behavioural observation scales)

2.      Observe Performance

• Reliability errors can occur like “Halo”, “First impression’, “Just like me” etc.
• To tackle this the observer must be trained
• Active participation, knowledge of results and practice is required
• FOR (Frame of Reference ) method of training is also used for performance observation so that correct observation or impression is made on each performance dimension
• Political and social context like age , gender, ethnicity etc. also affect the observation

3.      Feedback

• Continuous feedback is necessary
•  Feedback has to be clear and the basis of rating has to be communicated like absolute or relative
•  Feedback and goal setting has to be individual as well as team and should consider that team effort and contribution also matters
•  Training regarding goal setting is also required to set realistic and achievable goals relative to each context

4.      Make a decision

•   “Hindsight bias” , “availability bias”, “confirmation bias” etc tend to limit the decision
•   Decision should be taken by full consideration of facts
• Decision of whether an employee needs to be terminated or demoted should be taken by considering first whether training can improve the performance and whether the performance rating itself was influenced by factors beyond his/her control 

                                                                                ***

______________________________________________________________________________

गुड्डू रंगीला 

Knowledge Partner

Charcha Kendra