Performance appraisal
Post on 22-Jan-2015
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Presented by:-
Nisha Goyal
Rakesh Singh
Performance Appraisal
IntroductionPurpose of Performance Appraisalprerequisites for conducting performance
AppraisalBasic Steps in a Performance AppraisalPerformance Appraisal and Competitive
AdvantageMethod of AppraisalChallenges of Performance AppraisalPerformance Appraisal in TCS
Contents
Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.
Strategic Performance Appraisal- employees evaluated by individual goals that are linked to overall organizational goals and objectives
Introduction
To effect promotions based on competence and performance.
To confirm the services of probationary employees upon their completing the probationary period satisfactorily.
To assess the training and development needs of employees.
To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed.
Purpose of Performance Appraisal
To let the employees know where they stand .To improve communication.Finally, performance appraisal can be used to
determine whether HR programmes such a selection, training, and transfers have been effective or not
Broadly, performance appraisal serves four objectives-
developmental uses,administrative uses/decisions,organizational maintenance/objectives, anddocumentation purposes
Contd…..
DocumentationStandards / GoalsPractical and simple formatEvaluation techniqueCommunicationFeedbackPersonal Bias
Prerequisites for Effective & Successful performance Appraisal
Calibration meetings- managers and supervisors discuss performance ratings and come to a consensus on individual ratings
Reinforces perceived importance of process Improves differentiation factorWorkforce performance and learning goals
identified, based on organizational objectivesDay-to-Day feedback
Strategic Performance Appraisal Trends
Manager as a ‘coach’ instead of ‘appraiser’Allows for future career planning and
organizational goal linkage Changing the employee perception of
performance managementHelp employees set appropriate goals
Contd…
A manager performs the appraisal annually, based on individual productivity stats
The appraiser fills out a form which states the employee’s productivity and some subjective comments about behavior
The appraisal’s main purpose is to determine raises and promotions
Example of Traditional PA
An organization’s core values include continuous improvement of customer service. A goal is set during the PA process that involves reducing customer service complaints by 15% in the coming year. This is linked to organizational values and is measurable.
The manager establishes bi-monthly feedback sessions, where employees and managers have a brief one-on-one conversation regarding current performance goals and standards related to the status of the organization at that specific point in time.
Examples of Strategic Performance Appraisal
Employees set their own goalsThe core competencies are all tied into one of
the five “pillars of excellence”
Change in focus from past performance to forward-focus and goal attainment
Employees and managers now have an ongoing ‘performance partnership’
Expectations adjusted and based on global corporate demands
How are Organizations Using Strategic PA?
Conduct ongoing observations and measurements to track performance
Exchange ongoing feedback about performance
Conduct a performance appraisal (sometimes called performance review)
If performance meets desired performance standards, reward for performance
Basic Steps in a Performance Appraisal
Performance Appraisal and Competitive Advantage
Minimizing dissatisfaction and
turnover
CompetitiveAdvantage
Strategy andBehavior
ImprovingPerformance
Making correct decisions
Ensuring Legal Compliance
Values and Behavior
Method of Appraisal
Performance Appraisal
Traditional
Modern
•Essay Appraisal Method•Straight Ranking Method•Paired Comparison•Critical Incident Method•Field Review•Checklist Method•Graphic Rating Scale•Forced Distribution
•Management By Objective•360 Degree Appraisal•Assessment Center•Behaviorally Anchored Rating Scale•Human Resource Accounting
Application of MBO in the field of performance appraisal is a recent thinking.
The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
Management By Objectives
Four Steps in the MBO ProcessThe first step is to establish the goals each
subordinate is to attain.The second step involves setting the performance
standard for the subordinates in a previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed upon.
The final step involves establishing new goals and, possibly new strategies for goals not previously attained.
MBO Process
360 Degree Appraisal
360 degree feedback
The combination of peer, subordinate, and
self-review
Sanctioned from the top Involve employees / managers in developing
appraisal criteria / processTrain employees how to give feedbackInform employees of the processPilot test in part of organizationReinforce goals of 360° appraisal Revise process when necessary
360 Degree Appraisal Process
An assessment centre will have a standardized process for evaluation of behavior using multiple inputs.
Assessment centers serve three main human resources functions:
Selection and promotion DiagnosisDevelopment
Assesment Center
Candidates participate in a series of exercises that simulate on- the job situations
A Typical Assessment Center
Trained assessors carefully observe and document the behaviorsdisplayed by the participants. Each assessor observes each participant at least onceAssessors individually write evaluation reports,
documenting their observations of each participant's performance
Assessors integrate the data through a consensus discussion process, led by the center administrator, who documents the ratings and decisions
Each participant receives objective performance information from the administrator or one of the assessors
Behaviorally Anchored Rating Scales (BARS) are scales used to rate performance. BARS are normally presented vertically with scale points ranging from five to nine.
Developing a BARS typically requires five steps:
1. Generate critical incidents2. Develop performance dimensions 3. Reallocate incidents4. Scale the incidents5. Develop a final instrument
BARs
Ratings Example: BARS
Indicate the appropriate level of performance on each factor:Quantity of work
Quality of work
Judgment
Volume low & erratic
Satisfactory steady volume
Volume above expectations
Results always accurate; model work
Results accurate and thorough
Results generally inaccurate and not thorough
Systematic, analytical, Good with complex problems
Practical judgment,
solves problems, difficulty with
assessing relative value of factors
Does not always show good judgment; problem analysis not always adequate
In 720 degree appraisal, raters include-Customers SuppliersStakeholders Family
This gives a pre and a post intervention results. The pre-intervention results set the baseline.
720 degree Appraisal
Human Resource Accounting is a method to measure the effectiveness of personnel management activities and the use of people in an organization.
In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees.
Human Resource Accounting
Appraiser DiscomfortLack of ObjectivityHallo/Horn effectLeniency/StrictnessCentral TendencyPersonal BiasManipulating the evaluation
Challenges of Performance Appraisal
“A poor performer is not always a poor performer for life,” says S Padmanabhan, executive vice president, global human resources, Tata Consultancy Services (TCS).
TCS conducts two appraisals:At the end of the yearAt the end of a project
Performance Appraisal Criteria at TCS
Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basis of targets at four levels —
financialcustomerinternallearning and growth
Based on their individual achievements, employees are rated on a scale of one to five
Contd…..
To avoid that, TCS shuffles its employees between projects every 18 months or so. “Performance drops if motivation drops”
TCS's performance appraisal system is supported by an online system called the Human Resource Management System- an Oracle Developer 2000 based tool.
Contd….
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