1. IMPLEMENTATION PROCESS
1. Decide the implementing programme
2. Plan the implementation
3. Develop the programme content
4. Implement the programme
5. Monitor
6. Evaluate the programme
UNIT-4
IMPLEMENTING PERFORMANCE MANAGEMENT
SYSTEM AND APPRAISAL SYSTEMS

2. FACTORS AFFECTING EFFECTIVE USE
OF PERFORMANCE MANAGEMENT
• Corporate culture
• Alignment
• Review and update
• Communication and reporting
• Involvement of employees
• Reward linkage
• Management leadership and commitment

3. PITFALLS IN IMPLEMENTATION
• Overcomplicating the process
• Measuring the wrong things
• Failing to engage the workforce
• Declaring victory to early
• Failing to institutionalize performance initiative

4. PERFORMANCE APPRAISAL
• It is a process of systematically evaluating
performance and providing feedback upon which
performance adjustments can be made
- Schermerhorn et al
• It is also called performance review, performance
evaluation, performance assessment,
performance measurement, employee
evaluation, personnel review, staff assessment,
service rating, etc.,

5. CHARACTERISTICS
• Reassurance
• Awareness
• Adequacy
• Means
• Opportunities
• Administrative decisions and reward
management
• Critical tool for training and development
• Foundation of career and succession planning
• Valuable source of talent management

6. OBJECTIVES
• Increased motivation to perform effectively
• Increased self-esteem of employees
• New insight gained into employees and managers
• Better clarity and definition of job functions and
responsibilities
• Valuable communication developed among appraisal
participants

7. OBJECTIVES
• Increased self-understanding among employees
• Rewards distributed on a fair and credible basis
• Organizational goals clarified
• Improved institutional/departmental manpower
planning, test validation and development of
training programmes

8. PROS & CONS OF APPRAISING
ADVANTAGES
• Increase motivation
• Increase self-esteem
• Clarity in job
• Valuable communication
• Organisational objectives and strategies can be
made clearer
• Rewards can be distributed on fair and credible
basis
• Valuable appraisal information can allow the
organisation to do better human resource
planning, test validation and development of
training programmes

9. DISADVANTAGES
• Large amount of time may be wasted
• Creates organizational conflicts
• Performance motivation may be lowered, means
that poor performance means no reward, biased
evaluation includes favoritism
• Money may be wasted on forms, training and a
host of support services

10. METHODS OF APPRAISING
METHODS
Past oriented Future oriented

11. Past oriented
• Essay appraisal
• Graphic rating scale
• Field review
• Forced-choice rating
• Critical incident
• Work standards
• Ranking

12. FUTURE ORIENTED
• Balanced score card
• 360-degree
• BARS
• Assessment centre
• MBO

13. Appraisal and HR decisions
Performance management involves two types of
assessments:
1. Comparing an employees current
performance with her own past performance
2. Comparing a manger’s performance to that of
her comparable or competing colleagues or
peers

14. Appraisal are important inputs for:
• Staff-related decisions
promotions
placements
compensation & rewards
career routing

15. Basic purpose of appraisal output is “it is used to
plan, co-ordinate, organize, motivate, guide,
develop and encourage”
Some org consider both performance and
potential
High low
High
low
Hi potential, hi performance
Decision: promote
Hi potential, lo performance
Decision: relocate
Lo potential, hi performance
Decision: reward in existing
job
Lo potential, lo performance
Decision: outplace

16. Reward system
• Amount of reward received versus the amount
that the manage feels she should receive
• Extrinsic reward( increase in pay)
• Intrinsic reward( larger responsibility)
• Herzberg’s theory (motivation-hygiene )
• Attribution process ( personal or situational
influences will affect).

17. • Steps in attribution
a. observe persons (behavior or action)
b. determine the whether the subject
behavior was intended or accidental
c. if it is intended try to assess it is because of
personality or personal character or
environmental or situational

18. Other decisions:
• Staffing:
1) strategic recruitment
planning
2) recruiting, selection
Motivation:
1. application of
motivation theories
2. Job design
3. performance appraisal
4. rewards &
compensation
Maintenance:
1. safety and health
2. communication
3. employee relations
Training development:
1) orientation
2) employee training
3) career development