 with the virtual university course Human Resource Management that is MGT501 and we are here with our lecture number 26. So, let us start our today's session. Today as we said this is our lecture number 26 and we are already I think more than half way through. So, should we start? But let me ask you first, how are you doing? Any problem, anything which is not clear? Please do write us and do ask, do not leave anything unclear. Otherwise, let us start and as usual, we have to go back and see what we have covered during our last lecture. So, what was it? It was our 25th lecture and let us see what we covered. Basically, we started with the remaining part of the career. We started the career in the 24th lecture and we completed it in the 25th lecture. We discussed some part of the career in the 25th lecture and one aspect was the barriers, internal barriers as far as the organization is concerned. There is no opportunity, you are not allowed to move forward. The management is not clear and so on. And then we started a new concept, the new topic, very important, the performance. So, it is why it is important because that is the bottom line that what you want to be and any end result depends on the performance of your equipment, your machinery, your human resource, the outcome and the result depends on the performance. What was the performance? We tried to explain it to you in 2-3 different styles with reference. But the common sense is that what is the common concept developed? It has to do with something with the abilities which are knowledge and skills, the drive, the motivation and the last but also very important, the opportunity. So, do you remember what it was? Yes, that was the function of what? Ability, motivation and opportunity. The main thrust will not be there until you learn something, you will not get the opportunity, then you will not get a good performance. And then we also discussed few aspect, few things about performance management. How can you manage the performance? So, that was all about our previous lecture, the last lecture. And let us see what we are supposed to cover today. Now, once we have covered the performance, naturally the next step should be how to appraise it? How to see whether he or she is performing up to the standard or not? We will try to understand them today. What is the appraisal? Performance appraisal. As bookish definition I will tell you, the ongoing process of evaluating and managing. It is not only evaluating and it will be useless if you will only evaluate unless you will manage it. So, it is not just about evaluation, you have to manage it too. Let us take your example. Now, your instructor, your teacher wants to evaluate your performance. And that will be one indicator that how you are doing. That is not enough. So, if you are doing well, they should appreciate it, recognize it and encourage you that you should continue working hard. And if something is wrong in your results, they should make sure what is wrong. Either you are not understanding or you are not doing effort. Similarly, in the organization, this performance appraisal method is, the performance appraisal is an ongoing process of evaluating and managing of what? Both the behavior and outcome in the workplace. Again, it is twofold. Why? Because it is also affecting the outcome of not only the same person, but other people working around. So, performance appraisal, the ongoing process of evaluating and managing both the behavior and outcomes in the workplace. Its goal is to provide an accurate picture of past, which you have done, which you have done, which you have done, and are future employees' performance. Because you set goals in the basis of this. And to achieve this, performance standards are established. Now, how can this be achieved? Then you have to create some kind of standards, with which you will match, with which we call benchmarking. There are more things to be done in the future. But what happens in the performance appraisal system? Let me show you a small graph, then we will try to understand each step. Let's take an annual organization. And when we talk about performance appraisal, the first part of the system, which is its concept, why is performance major? Why do we have to do it? What is its objective? What is its use? What are we majoring? What are the criteria? What standards have we made? What basis will you major in? And how you are going to do it? Different kind of performance appraisal, different methods we are going to discuss today. There will be three things. What else can be done? Who is going to do that? Who will evaluate you? Who is going to evaluate the workforce of your organization? That is also a very important question. And part of that system of performance appraisal. And when will we do it? This is also important. For example, in your semester, midterm is there, during the term, and then there are final exams. Earlier we had an annual system, at the end of the year. Similarly, in appraisal, we will go ahead and see when we have to do it, that has to be decided. So first question, why? What is objective? And remember, the two broader objectives of performance appraisal are, number one, evaluational. You have to evaluate things. It has an evaluational objective. And second, developmental. Just go back a little bit. I just told you the definition of performance appraisal. You have to evaluate and manage. So that is what I am telling you. That evaluational objective and developmental objective. What is evaluating objective? What are we evaluating? First of all, while doing the performance appraisal, you can evaluate your own system of staffing. The whole complete, the recruitment, selection, the process, the orientation, the training and development. You evaluate all those things as well. Then you have to also evaluate what is its worth. How much you are going to compensate for the work you are doing. How much you are going to pay to him directly as in the form of money or in direct compensation. For your, as I told you, selection system that you created, right fit or not, that is also being evaluated. And of course, the outcome of the work, whatever he or she is doing. What is the developmental objective? Now based on that evaluation, what will you do? You are going to provide him the performance feedback. As I said, if he or she is doing excellent, appraise him, acknowledge him, recognize him, pay him extra, not only in the form of money maybe, maybe some other forms. So that the other people will get the motivation factor. And developmental, may be that based on that, your future, your promotion, your career development, you will also decide about that. The same performance appraisal will provide a parameter for you as a reference, and then you can make the decision whether that person is fit for promotion or not. And based on this, you can also decide what kind of deficiencies are there. Now how can you overcome this deficiency? Yes, through training and development, right? For example, I was giving your reference that if your exam is evaluated, and if your teacher figures out that you are weak in analytical part, you are not clear about math, they might suggest you to take another course in mathematics. Yeah, programming is not good for you. Accounting is not good for you, so you can be suggested for some extra training. So the same performance appraisal based on your developmental activities can also guide you as a manager, as a teacher, as a worker, whatever, that you are deficient in such and such things, so you need extra training, development, education. And that is the point that it will identify training and development needs. Now second question, what to evaluate? In that, its traits, behavior, and task outcomes. What was he supposed to do? What did he have to do? He had to look at it. His overall behavior, behavior at work, behavior with the colleagues, behavior with the superior, and even with the subordinates. Is he a team member or she is team member? Or what? And at the end, whatever task he or she was supposed to do, what is the outcome? So technically, these are the three things that we have to cover in performance appraisal. And for that, as I have told you, you need to have certain kind of standards. What are you going to compare them with? Those things should be clear before you do the performance appraisal. And it should relate back to the job description details. Now you have to see first the job description of that particular person, whom you want to evaluate. What he was supposed to do? When you know those things, then you can evaluate it on the same basis. And the well-defined standards are necessary so that you can properly evaluate it. You have given it equipment, facilities, and environment here. But you want to evaluate it. The sophisticated environment which is much better than you. So that is not fair. So let's see what should be the characteristics of a well-defined standard. First of all, it should be realistic. It is humanly possible. It is not that you have to pass these six groups in one year. That is not possible. Like you might be taking five or six subjects in this semester. Or if you say that you have 13 or 20 subjects in one semester which is not a realistic thing. That will be unfair. So the first characteristic of a well-defined standard should be that it should be realistic. And it should be measurable. It is difficult to measure generalized things. It should be measurable. It should be clearly understood on both parties. Now clearly understood by whom? The both. Those who have to be evaluated should also know what parameters should be checked. They should also know the standards. And those who have to be evaluated should also know. So the characteristic of a well-defined standard should be number one. It should be realistic. It should be measurable. And clearly understood. Then we can say that now you can have the real performance appraiser. What is the benefit of this? Both will benefit. The institution will benefit. Or the risk evaluation will benefit. Now let us move to the next stage. The next step is the appraisal process. You have to start with the requirements. What were the requirements of the performance? Again, those standards, those which were defined in the description. And what you are expecting from that person? So first of all, should this be clear? Then you have to pick a proper method of appraiser. You have to pick or choose and appropriate appraisal method. Let us see what are the methods. You have to train the supervisor who is going to supervise that performance appraiser method, the process. He or she should be clear. As I saw in the previous slide, it should be clearly understood. And the supervisor or the person who is going to do the evaluation should know. And then before you start the evaluation, you should discuss with the method with the employee. Look, this is the method. We have decided that through this method and using these standards, we are going to evaluate your work. Anyway, way before the evaluation. When I want to start a job, then I know which parameter will be tested on which standard. You have started your semester. You should know which kind of exams will be taken from you. I mean, when will it be? What kind of part? What subjects will be taken? What kind of a car will be used? And now, you have to appraise according to the job standards. Now one is clear on both parts. The supervisor and the tray implies you will actually do the appraiser. And when the appraiser is done, then what do we do? After that, the next phase, which we saw in the definition of performance appraiser, you evaluate and you manage it. Now the next stage is the development phase is coming. Now if you have been appraised and nobody is telling you what you have performed, then what is the big fun of having this performance appraiser? Now let's see if somebody is doing my performance appraiser and unless he will inform me what was the deficiency in it, then how can I improve it? Unfortunately, our system is getting better. Our performance review system, unless it is negative, nobody was telling you. In our system, we call it ACR. People do it in a different way. Some call it annual confidential report. Some call it annual confidential revenge. But whatever, that is also one method of appraiser. Now the drawback of the negative is that nobody is coming back and telling you. The good performance is face to face. The appraiser you are doing, you have to discuss each point with him. So that it is going to be good for him to, or her to, learn that lesson from him and tell him that you have done good or bad, learn that lesson from him and then improve it. So you have to discuss appraisal with the employer now. After you are done with the appraisal, now you should discuss with the employee so that he or she should make the correction action. Okay, if something is deficient, he can do it or she can do it with the efforts, with the training or development, whatever. If he did a good job, then he should appreciate it so that his morale is high and his motivation is high and he should try to do a good job. So this is a very important step. One should discuss this thing with the employees. And based on this discussion and performance appraiser, now they should determine the future goals. Goals about the performance. That you have achieved your GPA in this semester, well done. Now next time, we will be expecting better. So what should be your next goal, performance goal? It should be more than 3.5. And this is like, this is how we do the business, how we do the work. So based on this, you will try to do better. So in this organization, they determine the future performance goal based on the present performance appraiser. Now let's move to the next stage where we will have to discuss some methods. How do you do the performance appraiser? In your textbook, in the books that you are reading, all the methods are described. I will just quickly go through them. I will share one or two examples with you. You will read the rest. And I believe it should be clear to you. But if it is not clear, then we are here. Come back, discuss with us. First of all, the rating scale. You are making a scale. You must have seen that there are surveys. Even the evaluation that is done, and the performance that is done, they are made in a row. And in front of a parameter, it is written A, B, C, D, E. You write some points from one to the other. And on every point, you have to tick accordingly. According to your perception or your view, this point is correct. I will share one more example with you. Then there is another comparative method where you compare with each other. There is a ranking method, there is a force distribution, there is a paired comparison. What is your position in your class? What is happening? Here, someone is comparing you with that group of people who are working in the same class. There is a comparative method in the evaluation. And then, critical incident method. What is that? Let's go one. Like I told you before, it can be checklists. Behavior anchored, there is a rating scale. I will tell you the example of that. You can use a method like that. Sometime, you can just write a paragraph or such type of thing about a person. The moment you are there, or you have to work under it, they will write a paragraph about you and tell you how their performance was. And of course, they also pick some parameters, some standards based on which they write about you. There is another way, we call it MBO. Manage bit by objective. In that, in build performance, there is a surprise. Let's go ahead and discuss this. And sometime, you can combine the methods. And again, it depends on objectives, the type of organization you are talking. Even size of organization is very important too. And how much support you have and the legal requirements are also there. Let me give you an example. Graphics rating scale. As you can see in this slide. They are starting from 1 to 7. They have written a number of 107 and they have made it 7 times. And that is quantity of work. Someone has to check how much he has done. 1 represents the lowest and 7 represents the highest. And accordingly, they have the value. 1 is better than 2. 2 is better than 3. 3 is better than 4. And 7 is better than 7. And in this example, he has crossed 6. So, what does this mean? It is a very good performance. His work quantity has produced a lot of work. Though it is not the maximum, the excellent. But it is a little better. This is the same with this. This is also a way, as I told you. The rating. In addition, sometimes they are made from the diaries. 1 to A to A, B, C, D are shown. And you have to pick the appropriate circle or column. That is one method. Simple ranking, as I told you. In the class, the first, second, third, fourth positions are made. By the way, I have written 4 hypothetical names. On the first position, Mr. Aziz Ahmad is there. On the second position, Mr. Samar Abbas is there. And remember, I am not street type. I am not just a male. A female can also be there. These are all four names. The third name is Mr. Arshad Bhatt. And on the fourth number is Mr. Hamid Ali. So, this is a simple ranking. This can be a KB method. Then there is another one. The force distribution. You make a group. And then you see that it comes in this group. Let's see, in this case, they have 5 different groups. 10 percent. Number one group is called margin. Number two group is called unsatisfactory performance. Number two is called margin. Number three is satisfactory. Number four is good. Number five is outstanding. Now, in every group, you have gathered some people who come into that group. In this example, you have 10 percent unsatisfactory, 20 percent margin, 40 percent satisfactory and so on. Let's see this in a different way. This is the same example. For the force distribution. Lowest, next lowest, middle, next and highest. And what is its weight? There are 5 supplies. You have a total of 50 supplies. There are 5 supplies of which the performance is very low. You put them in the lowest. And there are 20 supplies of which in the middle, you put them on the average. And there are 5 excellent. So, a normal bell shape curve is called normal distribution. So, this step up. This is a rating curve. Don't confuse yourself with this. Just understand the concept. Because you have to see its application. Why are you doing this? What is the benefit of this? There may be other ways. You can make a lot of different ways from its combination. This is called Barge, Behaviorally Anchored Rating Scale. It is also done in such a way that you arrange it in a sequence of 3 or 4 in an effective way. An example is shown here. And then it is written in the parameter in front of it. Because in this, you don't just look at its performance, but you are also looking at how to do it. So, in this way, you can evaluate people and Management by Objective too. And this is very important. Management concept. First time I think we are using this term here. MBO. Management by Objective. In common sense, we call it Participation Management. When everybody is participating in this in making. And in this way, as I told you earlier, this performance appraisal method is already in build. And because of that, that Participation Management or MBO, it is also evaluating you. To see that, we have to understand the model of this MBO. So, in a simple way, it is the goal setting, planning, and evaluation. See, this evaluation part is built in in this system. It has another way. As I told you, if we look at its model, things will be more clear for you. There are 4 steps. Step number one. We have to set the goals. That can be strategic goal, individual goal, departmental goal, or whatever. We don't want to go on those things. But it is the goal setting. Once you have decided about the goals, next thing is, you have to develop the action plan. The second stage. And in between, you review it in the third stage. That is reviewing the progress. That is, the plan that I set and the plan that I have set, and this is the evaluation part. And if it is not working, what you will do? You will continue to do the same way? No. You have to go back to planning part and plan it again. And then again, do it and review it and make the corrective action. And if you are satisfied, your performance is according to your plan. Then, you will also appraise the whole process again. And this is the cyclic thing. You set the goal. You discuss with the people. This is how we call participative management. And you make the action plan. You decide about the action plan. Review it off and on during the process. Make the corrective action. And based on what? That performance appraisal you are doing. According to my plans, according to my goal, I am achieving those goals or not. And if you are not doing, you can again go back based on those corrective action. Replan it. Come back. Review it again. Do the evaluation. And this is how you will achieve your goal. We call this MBO. Managing by objective. Or participative management. And for appraisal, as a method, as I told you, there is a build in it. You review it and see it. And along with it, you do its active action. So these are the methods. Apart from that, as I told you, it is also written like this. You are in the form of a paragraph. You write one page about someone. Or you can combine them together. And by using the combined method, you can also do appraisal. So I believe these basic things should be clear in your mind now. Now let's see that when appraisal is done or you do appraisal as a manager, what happens in that? As I told you, there is a way to see the performance with the standard. And no need to talk about it with him. So this is not fair. This is not good. The good organizations, they have formal interviews with their employees. One-to-one. Even with a team. So they do the interview together. They sit together, discuss the performance. And then they set goals for the future. So let's see what should be considered in the interview. And now this is a different interview we are talking about. The selection interview was different. Now as a colleague, as a boss and subordinate, we are sitting together and talking about your performance. What do we have to do in that? You have to start with asking self-assessment. Participate. Ask him to talk. If I want to appraisal you, then I should start with you to tell yourself what you have done with us. Where you should be, you are feeling proud that you have achieved something there. What is the extra thing you have done here? What is the extra thing you have done? It will be your participation. And you as a appraisal, like I have told you, unless you appraise something else, you should also appreciate it. If you have done a good job, then you must appreciate it. Well done. Keep it up. From these two words, you will feel proud that you have achieved something. So whatever appraisal you have done, you have to see that you do not have to feel that you are useless. No. It should be realistic. You have to know the problem, know the reason, what is the reason. If the performance is not good, what is the reason? If it is good, then give it a credit and guide it so that next time it should be better. So the third part is express your appreciation. After that, as I have told you, don't criticise. What will be too much criticism? It will work now. If the performance is not good, then why is it not good? Was it his fault? Was it the environment's fault? Because as we defined the performance, it is the function of ability, motivation and environment. The opportunity. So according to these three things, you have to check and judge these three things. During the discussion, of course you have already expected to do this, but you couldn't do this. We were expecting that your GPA will go up from 3.5, but God forbid, that it will go down from 2. What was the reason? So that is the main objective of the performance. During that, instead of criticising, instead of just pushing him, say you are like this, you can't do anything, what is going to happen? Is it better than this or not? You have to realise that you have to tell him what was the problem. You didn't have the ability, you had less knowledge, you didn't have the skills. You have lost your drive, your motivation. You didn't get the opportunity. And if both you and your appraisal is going on, able to figure out the reason, then the main problem will be solved. From that point of view, just keep your hand up, don't criticise too much, try to know the reason. So that you can learn the lesson and improve your performance. What else? Now remember, what you will do, you can only change the behaviour. You can change the person, the person will stay the same. You have evaluated the two aspects of the performance plagiarism. Whatever development you want to bring in that development, you have to think that you have to change the behaviour so that your performance is good. You can't change the person, it will take a lot of time to change the personality, but you can manage and remember again, it's the same thing. You have to focus on the problem solving and you should be supported. Give them the feeling that you are his or her supporter. If you know that, I am talking about something which is good for you, you will listen it carefully. You will try to adopt that. If you have this feeling that I am doing this to give you trouble, trouble, then both are working for the organization. Both are working for something. So you should be supportive. You have to establish the goals and then follow day by day all those events you have evaluated. And how to do the monitoring in the future. The purpose of this interview is to see what was the problem in the previous ones, appreciate the good, don't criticize too much, but try to understand the problem and give him a high score. If you think he is deficient of some skills, tell him that this is the skill you have to learn and you should facilitate through your organization that you should provide him the chance that he can improve his skill and try to modify his behavior. And motivate him on the same basis and set the next goal and then monitor him. And that is how that performance appraisal thing will be useful, not only for that person but for the organization too. Who should do the performance appraisal? Here it is written who should do the rating. Rating means he is rating you. Who should do the performance appraisal? It is not necessary as we were talking about Subadi Nate and Bas that only Bas does not do the evaluation. There are so many different people who can do the evaluation within the organization. Naturally your supervisor is the person who will be doing your evaluation. Peer evaluation. Peer means your colleague with you. In institution even peer evaluation is always sometimes they use it and it is very effective. Of course it is beneficial. Now you can say that in peer evaluation there can be a big problem too. Yes, your evaluation is not good for others. Or sometimes they just say that together you scratch my back I will scratch your back. Then it becomes a club type. You did my good, I will do your good. These are the other parts of discussing the logical basic things. So who does the other way? Peer evaluation can be done. Your customer and client they can evaluate you too. If you go to the hotel for food then there is a small one that you have given your comments. What is this? You are evaluating their performance. You use someone's service and they write a card on it. Tell me how was our service? Is that customer-client evaluation? Even nowadays there are some organizations behind cars. The good organizations are written behind their office cars. How am I driving basically? Give me the number below. If I am driving wrong then call me and tell me that this is driving wrong. So this is also customer-client evaluation. Self rating? Very demanding and very important. It is very difficult to rate yourself. What I mentioned do follow this thing. When evaluation starts you have to evaluate yourself. Based on what objective, what goal you determined during the last evaluation. You have to evaluate yourself and tell yourself what you did. Then on the next stage your superior who is your boss and says that I drove this car so he justifies you that whether it was right or wrong. So self-rating is also one way one method of rating and evaluating. You can do it yourself. Your supervising is not only doing your evaluation but sometimes you are also doing his or her evaluation. It is called reverse appraisal. It is done inside. You should check your teacher. You give exams and grade. You also have teacher evaluation. You evaluate yourself what you learned from this class. Are you satisfied or not? This is also, we call it reverse appraisal. Team appraisal. In the form of a team. A team can also appraise someone. A project or a person. This is also one method. And sometimes they call it 360 degree appraisal. Multiple. The rate we have told you all these appraisals can be difficult. You should do it yourself. Your boss should do it. Your client is also doing it. Team is also coming and appraising you. This is called multiple or 360 degree appraisal. Let's see a few examples. We show it graphically. We did our appraisal. Your supervisor did your appraisal. She is the rate. Your subordinate, your peers, colleagues, peer evaluation customer and the team. You see there are so many different people who can do the appraisal. Within the organization. And from outside the organization. So you understand what we are reading. So we will rate the appraisal. Who will do it? You also speak. Who can do the appraisal? Self rate. You can do it yourself. Or your supervisor can do your evaluation. Even your subordinate can do reverse appraisal. Who else can do it? Client is your customer. Yes. And your peers also evaluate you. As we in education institution when we give a project to the group. We also take feedback from the group. What do you tell your group? Who did how much work? What is happening? Everyone is evaluating each other. So that is the peer evaluation. Apart from that even in the form of a team evaluation can be done. So these are different. You can do the evaluation, performance evaluation in sub-kind trust. So let us move on. As I told you a multiple does not need to have one appraisal. Some time people go with the multiple way of doing the appraisal. You are only doing low at the time. The limit of that is 360 degree. So what are you doing? As you see in this diagram. Self-lating is also happening here. Supervisor is also doing it. Subordinate is also doing it. Customer is also doing it. Observer is also doing it. People are also doing it in the form of a team. Now for each writer there are always some pros and some cons. You do not go at that level. You are basic. So I hope that you understand this and the next. It will be very easy. Now there are certain errors too. There are some common errors that happen every now and then. They come in the evaluation. There can be some behavioral aspect. There can be some personality problems. What are those? And if you know them then if they appear obviously then we can figure out that there is a problem here. Because of which the performance is not good. If your boss is the boss with you there is a way for that then nothing can happen. Then the evaluation is not good. There is a problem in that. If your boss is upset with you or there is a bias in him for any reason then we will do supervisory bias. The basic parameters and the basic things we did not do that. But because of that bias he has given you or any person whose evaluation has been done wrong grades have been given. So what has happened because the supervisor was biased. Another error is they call it hollow effect. What is the hollow effect? You are hearing a new term. The hollow effect is that when you look at something and you judge it then that is a hollow effect. Let's see when an employee comes home late then you say that all these things are wrong then that is a hollow effect. Because if he makes a mistake then you misunderstand all his things or it can be other way around. That he is 7 in the morning and if he doesn't do anything then you say he is excellent because he is there at 7.30. The behavior part or any action basically you influence all his actions and write around that is a hollow effect they call it. This is also a biasness. Central tendency is to average everyone. This is also wrong. You have a good average and some are lower. That is also one biasness. Linency means that everyone has done very good. So if everyone is good then where is the problem? That means this is also a biasness. Opposite of lenience is very strict no one has to give a good grade. Everyone is bad so that is also a biasness. Recency is very important. But recently someone did a very good job or made you happy and you are very good at the whole year's evaluation or the other way around that the whole year was a good job and right now when you want to do the evaluation then the whole year's work is wrong. So this is also a biasness. Overal rating sometimes people just want to see some performance of Paisal's performance in your book. When overall you write a common word that dedicated hardworking young man so if you do a rating for everyone then it is not giving you the real picture. So that is also a negative aspect of biasness. I think enough for today. I hope it is clear. Let us summarize what we have covered today. So basically our lecture today was about the performance appraisal. And in the performance appraisal we saw what criteria should be and how should be done and when should be done and when should be covered. We will leave it for next time. So in the next lecture we will continue this appraisal part and we will do the job evaluation. In that we will see how to compensate the workers you have taken and how to sell them. So that is about today's lecture. So with this summary today's session we will finish that you will study for the next lecture and will work hard. Till then Allah Hafiz and salamu alaikum.