FUTURE-ORIENTED APPRAISALS FUTURE-ORIENTED APPRAISALS

2. FUTURE-ORIENTED APPRAISALS

It is enough if only the past performance is assessed. How an employee can perform in the days It is enough if only the past performance is assessed. How an employee can perform in the days to come is equally important. This can be assessed by focusing on employee potential or setting to come is equally important. This can be assessed by focusing on employee potential or setting future performance goals. The commonly used future-oriented techniques are:

future performance goals. The commonly used future-oriented techniques are:

MANAGEMENT BY OBJECTIVES (MBO) MANAGEMENT BY OBJECTIVES (MBO)

It was Peter F.Drucker who first gave the concept of MBO to the world back in 1954 when his It was Peter F.Drucker who first gave the concept of MBO to the world back in 1954 when his The Practice of Management was first published. The MBO concept, as was conceived by The Practice of Management was first published. The MBO concept, as was conceived by Drucker, reflects a management philosophy which values and utilizes employee contribution.

Drucker, reflects a management philosophy which values and utilizes employee contribution.

How MBO works can be d

How MBO works can be describes in four steps:escribes in four steps:

The first step is to establish the goals each subordinates is to attain. In some organization, The first step is to establish the goals each subordinates is to attain. In some organization, superiors and subordinates work together to establish goals. In others, superiors established goal superiors and subordinates work together to establish goals. In others, superiors established goal for subordinates. The goals typically refer to the describes outcome to be achieved. These goals for subordinates. The goals typically refer to the describes outcome to be achieved. These goals can be then by used to evaluate employee performance.

can be then by used to evaluate employee performance.

The second

The second step involves settistep involves setting ng the performanthe performance ce standstandard for ard for the subordinathe subordinates in tes in a a previpreviouslyously arranged time period. As subordinates perform, they know fairly well what there is to do, what arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done.

has been done, and what remains to be done.

In the third step, the actual level of goal attainment is compared with the goal agreed upon. The In the third step, the actual level of goal attainment is compared with the goal agreed upon. The evaluator explores reasons for the goals that were not met and for the goal that were exceeded.

evaluator explores reasons for the goals that were not met and for the goal that were exceeded.

This step helps determine possible training needs. It also alerts the superior to conditions in the This step helps determine possible training needs. It also alerts the superior to conditions in the organization that may affect a subordinate but over which the subordinates has no control.

organization that may affect a subordinate but over which the subordinates has no control.

The

The finfinal al stestep p invinvolvolves es estestablablishishing ing new new goalgoals s and, and, pospossibsiblyly, , new new strstrateategiegies s for for goagoals ls notnot  previously attained. At this point, subordinates and superior involvement in goal setting may  previously attained. At this point, subordinates and superior involvement in goal setting may

change. Subordinates who successfully reach the established goals may be allowed to participate change. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the

more in the goal setting process the next time. The process is then repeated.next time. The process is then repeated.

MB

MBO O has has beebeen n crcrititicicizized ed alalsoso. . OnOne e cocommmmenent t mamade de agagaiainsnst t ththe e appapproroacach h is is ththat at it it is is notnot applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assembly-line applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assembly-line work, are not compatible with MBO. An assembly line worker usually has so little job flexibility work, are not compatible with MBO. An assembly line worker usually has so little job flexibility that the performance standards and objectives are already determined. The MBO process seems that the performance standards and objectives are already determined. The MBO process seems to be most useful with managerial personnel and employee who have a fairly wide range of  to be most useful with managerial personnel and employee who have a fairly wide range of  flexibility and self control in their jobs. Besides when the results of an MBO system are to be flexibility and self control in their jobs. Besides when the results of an MBO system are to be used to

used to all to all to allocallocate organizatiate organizational rewards, employonal rewards, employees may ees may be be less to less to less likely to establishless likely to establish challenging goals. They are confident that they can accomplish. Further, the allocation of merit challenging goals. They are confident that they can accomplish. Further, the allocation of merit   pay on a semi-annual or annual basis may encourage the setting up of goals with short tune   pay on a semi-annual or annual basis may encourage the setting up of goals with short tune

horizons to the disadvantage of important long term goals.

horizons to the disadvantage of important long term goals.

PSYCHOLOGICAL APPRAISALS PSYCHOLOGICAL APPRAISALS

Large organizations employ full-time industrial psychologist. When psychologists are used for  Large organizations employ full-time industrial psychologist. When psychologists are used for  evaluations, they assess an individual’s future potential and not past performance. The appraisals evaluations, they assess an individual’s future potential and not past performance. The appraisals normally consist of in-depth interviews, psychological test, discussion with supervisors and a normally consist of in-depth interviews, psychological test, discussion with supervisors and a rev

review iew of of othother er evaevalualuatitionsons. . The The psypsychochologlogist ist thethen n wriwrites tes an an evalevaluatuation ion of of the the empemployloyeesees intel

intellectuallectual, , emotiemotional onal motimotivationvations s and and other related other related characcharacteriteristics that stics that suggessuggest t indivindividualidual  potential and may predict future performance. The evolution by the psychologist mat be for a  potential and may predict future performance. The evolution by the psychologist mat be for a specific job opening for which the persons for which the persons is being considered, or it may specific job opening for which the persons for which the persons is being considered, or it may  be a global assessment of his or her future potentials. From these evaluations, placement and  be a global assessment of his or her future potentials. From these evaluations, placement and

development decisions may be made to shape the persons career  development decisions may be made to shape the persons career 

ASSESSMENT CENTERS evaluate managers over a period

evaluate managers over a period of time, say one to three days, by observing of time, say one to three days, by observing (and later (and later 

evaluating) their behaviors across a series of select exercises or work samples. Assesses are evaluating) their behaviors across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups (without leaders),computer 

requested to participate in in-basket exercises, work groups (without leaders),computer 

sim

simulaulatiotions, ns, rolrole e plaplayinying, g, and and othother er simsimilailar r actactiviivitieties s whiwhich ch reqrequiruire e the the samsame e attattribributes utes for for  successful performance, as in the actual job. After recording their observations of rate behaviors, successful performance, as in the actual job. After recording their observations of rate behaviors, the raters meet for the discussion of observations. Self-appraisal and peer evaluation are thrown the raters meet for the discussion of observations. Self-appraisal and peer evaluation are thrown in for final rating.

in for final rating.

The

The characcharacteristeristics assessed in tics assessed in a a typitypical cal assesassessment centre sment centre incluinclude de asserassertiventiveness, persuasiveess, persuasive ability, communicating ability, planning & organization ability, self confidence, and résistance to ability, communicating ability, planning & organization ability, self confidence, and résistance to stress, energy level, decision-making, sensitivity to the feelings of others, administrative ability, stress, energy level, decision-making, sensitivity to the feelings of others, administrative ability, creativity and mental alertness.

creativity and mental alertness.

First developed in the US and the UK in 1943, the assessment centre is gaining popularity in our  First developed in the US and the UK in 1943, the assessment centre is gaining popularity in our  country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with results being country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with results being highly positive.

highly positive.

The problem with the assessment centre is their cost. Not only are the assesses away from their  The problem with the assessment centre is their cost. Not only are the assesses away from their   jobs while the company pays for their travel and loading, but the evaluators are often company  jobs while the company pays for their travel and loading, but the evaluators are often company managers who are assigned to the assessment centre for short durations. These managers are managers who are assigned to the assessment centre for short durations. These managers are often supplemented by psychologists and HR specialists who run the center and also make often supplemented by psychologists and HR specialists who run the center and also make evaluations. Hence this approach is cost-effective only in

evaluations. Hence this approach is cost-effective only in large organizations.large organizations.

Assessment-center staffs are often influenced by subjective elements, such as personality of the Assessment-center staffs are often influenced by subjective elements, such as personality of the candidates. Raters tend to evaluate the quality of the individual’s social skill rather than the candidates. Raters tend to evaluate the quality of the individual’s social skill rather than the quality of the decisions he/she makes. Assessment center ratings seem to be strongly influenced quality of the decisions he/she makes. Assessment center ratings seem to be strongly influenced  by the participant’s interpersonal skills. environment. Another drawback is its potential adverse effect on those not selected to participate environment. Another drawback is its potential adverse effect on those not selected to participate in the exercise.

in the exercise.

Employee who receives a poor report from the center may react in negative ways. A rejected Employee who receives a poor report from the center may react in negative ways. A rejected employee would return to his or her former job, satisfied that he or she would not be promoted to employee would return to his or her former job, satisfied that he or she would not be promoted to a job he/she couldn’t handle. However, a good performer at one level may leave the organization a job he/she couldn’t handle. However, a good performer at one level may leave the organization

in order to remove the bad assessment report from his or her work record. Thus, a poor report in order to remove the bad assessment report from his or her work record. Thus, a poor report can demoralize an employee who was once an asset.

can demoralize an employee who was once an asset.

But

But a a welwell-cl-conduonductected d assassessessmenment t centcenter er can can and and doedoes s achachievieve e betbetter ter forforecasecast t of of forfortuntunee  performance and progress than other methods of appraisal. Also, reability, content validity, and  performance and progress than other methods of appraisal. Also, reability, content validity, and  predictive validity are said to be high in

 predictive validity are said to be high in the assessment centers.the assessment centers.

Th

The e tetest st alalso so mamakekes s susure re ththat at ththe e wrwrong ong pepeoplople e arare e not not hihirered d or or prpromomototeded. . FiFinanalllly, y, ththee assessment-center test clearly defines the criteria for selection and promotion.

assessment-center test clearly defines the criteria for selection and promotion.

360-Degree Feedback  360-Degree Feedback 

Where multiple raters are involved in evaluating performance, the technique is called 360-degree Where multiple raters are involved in evaluating performance, the technique is called 360-degree appraisal. The 360-degree technique is understood as systematic collection of performance data appraisal. The 360-degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders-the stake being the immediate on an individual or group, derived from a number of stakeholders-the stake being the immediate su

supepervrvisisorors, s, teteam am memembmberers, s, cuscustotomemersrs, , pepeerers s anand d seselflf. . If If fafactct, , any any one one who who hahas s ususefefulul information on ‘how an employee does the job’ may be one of the appraisers.

information on ‘how an employee does the job’ may be one of the appraisers.

The 360-degree appraisal provides a broader perspective about an employee’s performance. In The 360-degree appraisal provides a broader perspective about an employee’s performance. In ad

addiditition, on, ththe e tetechchninique que fafacicililitities es grgreaeateter r seself lf dedevelvelopmopmenent t of of ththe e ememplployoyeeee. . FoFor r oneone’s’s development, multi-source feedback is highly useful. It enables an employee to compare his or  development, multi-source feedback is highly useful. It enables an employee to compare his or  her perception about self with perceptions of others. Besides, the360-degree appraisal provides her perception about self with perceptions of others. Besides, the360-degree appraisal provides formalized communication links between an employee and his or her customer. It makes the formalized communication links between an employee and his or her customer. It makes the em

emplployoyee ee fefeel el mumuch ch momore re acaccocountuntabable le to to hihis s or or heher r ininteternrnal al or or exexteternrnal al cucuststomomerers. s. ThThee techniques are particularly helpful in assessing softs skills possessed by employees. By design, techniques are particularly helpful in assessing softs skills possessed by employees. By design, the 360 degree appraisal is effective in identifying and measuring interpersonal skills, customer’s the 360 degree appraisal is effective in identifying and measuring interpersonal skills, customer’s satisfaction, and team-building skills.

satisfaction, and team-building skills.

However, there are drawbacks associated with the 360-degree feedback. Receiving feedback on However, there are drawbacks associated with the 360-degree feedback. Receiving feedback on  performance from multiple sources can be intimidating. It is essential that the organization create  performance from multiple sources can be intimidating. It is essential that the organization create

a non-threatening environment by emphasizing the positive impact of the technique on an a non-threatening environment by emphasizing the positive impact of the technique on an

emplo

employee’s perforyee’s performance & mance & develdevelopmentopment. . FurthFurther, firms that use er, firms that use the technique take the technique take a a long timelong time on selecting and the rater, designing questionnaires and analyzing the data. In addition, multiple on selecting and the rater, designing questionnaires and analyzing the data. In addition, multiple raters are less adept at providing a balanced and objective feedback than the supervisors who are raters are less adept at providing a balanced and objective feedback than the supervisors who are sought to be replaced. Raters can have enormous problems separating honest observation from sought to be replaced. Raters can have enormous problems separating honest observation from  personal from personal differences and biases.

 personal from personal differences and biases.

Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal technique to assess the performance of their employees.

technique to assess the performance of their employees.

APPRAISALS ERRORS APPRAISALS ERRORS

The ideal approach to performance appraisal is that in which the evaluator is free from personal The ideal approach to performance appraisal is that in which the evaluator is free from personal   biases and prejudices. But there are many significant factors which deter or objective of the

Error:-every evaluator has his own value system which acts as a standard against which he makes every evaluator has his own value system which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibit .This is the his appraisals. Relative to the true or actual performance an individual exhibit .This is the tendency of awarding higher marks than what is really due. This depends on variation of  tendency of awarding higher marks than what is really due. This depends on variation of  value system or standard between different raters.

value system or standard between different raters.

1.

1. Halo EffectHalo Effect:-

:-sometimes an employee can create a certain impression on the rater because of some sometimes an employee can create a certain impression on the rater because of some inc

incideidents nts or or behbehaviavior. or. ThiThis s coulcould d be be eiteither her pospositiitive ve or or neganegativtive. e. For examplFor example, e, anan em

emplployoyee ee mimighght t hahave ve beebeen n seselelectcted ed as as a a chchamampipion on in in atathlhleteticics s memeetet. . ThThis is googoodd

emplployoyee ee mimighght t hahave ve beebeen n seselelectcted ed as as a a chchamampipion on in in atathlhleteticics s memeetet. . ThThis is googoodd