Unit 6 – Performance Appraisal

Unit 6 – Performance Appraisal

^{Personnel psychology in an organization}

• Personnel psychology is a branch of industrial and organizational psychology that deals with the selection, placement, training, promotion, evaluation, and counselling of employees.  

• Understanding and managing personnel psychology helps to ensure the employees within a workplace are happy and healthy; while it improves productivity for their employer through:  

Understanding and Managing Personnel Psychology

• Helps an organization:

• Improve the hiring process

• Reduction of job attrition

• Matching of the right personality to the job role

• Customize training

• Improve reward system

Instruments used to measure employee personality 

• Myers-Briggs Type Indicator (MBTI)

• DISC Personality Test

• Gardner’s Multiple Intelligences Test 

Myers-Briggs Type Indicator (MBTI)

• Allows respondents to understand their own personalities including their likes, dislikes, strengths, weaknesses, possible career preferences, and compatibility with other people.

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DISC Personality Test

• A detailed report about personality and behaviour. Respondents also receive tips related to working with people of other styles.

Gardner’s Multiple Intelligences Test 

• Gardner proposed that everyone has eight types of intelligence. You should strive to improve your other intelligences, but also focus on what makes you perform your best. 

Purpose of Performance Appraisal

• a)Identify outstand performance: Helps identify employees for promotion

• b) Identify training apps. The training and development efforts can then be directed to match the specific needs of individual employees

• c)  Recognise employee contribution. The parties involved will tend to take performance appraisals more seriously when employees’ contribution are recognized and when there’s a link to their pay.

Methods used to document performance

• a)Ranking. Compares one person with all others for the purpose of placing them in a simple rank order of worth

• b)  Grading. In the grading system, certain categories of worth are established in advance and carefully defined. Eg (outstanding, satisfactory, and unsatisfactory)

• c)   Rating Scale Checklist. Provides a quantitative analysis that is useful for comparison purposes. Rating scales can be used to assess factors such as quantity and quality of work, job knowledge, cooperation, dependability, etc. 

• d)Management By Objective. Employees are evaluated on how well they accomplished a specific set of objectives determined as critical in the successful completion of their job. 

• e)  360-degree Feedback. An appraisal device that seeks performance feedback from such sources as the person being rated, bosses, peers, team members, customers and suppliers.

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Performance Appraisal Process

• •Establish performance standards with employees

• •Mutually set measurable goals

• •Measure actual performance

• •Compare actual performance with standards

• •Discuss the appraisal with employees

• •Initiate corrective action

Steps in the appraisal process

• Step 1: Establish performance standards with employees

• •Should be clear and objective

• •In accordance with organization’s goals

• Step 2: Mutually set measurable goals

• •Supervisor communicates his/her expectations

• •Both supervisor and employee mutually agree to the job performance measures

• •The supervisor appraise the employees’ performance against established standards 

• Step 3: Measure actual performance

• •Personal observation, statistical reports, oral and written reports are used to determine actual performance

• Step 4: Compare actual performance with standards

• •Look out for deviations between standard performance and actual performance

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Steps in the appraisal process

• Step 5: Discuss the appraisal with employee

• •Evaluate the employee’s contribution and ability

• •Impression that employee receives will have an impact on his/her self esteem and future performance

• Step 6: Initiate corrective action

• •Identification of corrective action where necessary

• •Two types of corrective action

• •One is immediate and deals with symptoms•The other is basic and delves into causes