Ppt performance appraisal

PERFORMANCE APPRAISALPERFORMANCE APPRAISALMANAGEMENT SYSTEMMANAGEMENT SYSTEM

PRESENTED BY:PRESENTED BY:DIVYA SHARMADIVYA SHARMA (MBA SOMG)(MBA SOMG)

TOPICS INCLUDED:INTRODUCTION.

NEED OF PERFORMANCE APRRAISAL.

PERFORMANCE APRRAISAL Vs PERFORMANCE MANAGEMENT.

MODEL.

PROCESS.

METHODS OF APRRAISALS.

DIFFERENCE BETWEEN TRADITIONAL APRRAISAL & MORDERN APRRAISAL.

LIMITATIONS.

INTRDUCTIONINTRDUCTIONPerformance appraisalPerformance appraisal, also known as , also known as employee appraisalemployee appraisal, is a method by which the , is a method by which the job performance of an of an employee is evaluated is evaluated (generally in terms of (generally in terms of quality, , quantity, , cost and and time). Performance appraisal is a part of career ). Performance appraisal is a part of career development.development.

According to CIPD(U.K.)-”The 21According to CIPD(U.K.)-”The 21stst century century organisation is one in which people really are the organisation is one in which people really are the greatest asset, and people management needs to greatest asset, and people management needs to go beyond lip service to become a core go beyond lip service to become a core competence of every organisation.”competence of every organisation.”

NEED OF PERFORMANCE NEED OF PERFORMANCE APPRAISALAPPRAISAL

Give feedback on performance to Give feedback on performance to employees. employees.

Identify employee training needs. Identify employee training needs.

Document criteria used to allocate Document criteria used to allocate organizational rewards.organizational rewards.

Form a basis for personnel decisions: Form a basis for personnel decisions: salary increases, promotions, disciplinary salary increases, promotions, disciplinary actions, etc. actions, etc.

. .

Provide the opportunity for organizational Provide the opportunity for organizational diagnosis and development.diagnosis and development.

Facilitate communication between Facilitate communication between employee and administraton employee and administraton

Validate selection techniques and human Validate selection techniques and human resource policies to meet federal Equal resource policies to meet federal Equal Employment Opportunity requirementsEmployment Opportunity requirements

DIFFERENCE BETWEENDIFFERENCE BETWEENPERFORMANCE APPRAISALPERFORMANCE APPRAISAL

Top down assessment.Top down assessment.

Annual appraisal meeting.Annual appraisal meeting.

Use of rating.Use of rating.

Monolithic system.Monolithic system.

Focus on quantified objectives.Focus on quantified objectives.

Often linked to pay.Often linked to pay.

Bureaucratic- complex paperwork.Bureaucratic- complex paperwork.

Owed by the HR department.Owed by the HR department.

PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT

Joint process through dialogue.Joint process through dialogue.

Continuous review with one or more Continuous review with one or more formal reviews.formal reviews.

Rating less common.Rating less common.

Flexible process.Flexible process.

Focus on value and behaviors as well Focus on value and behaviors as well as objectives.as objectives.

Less likely to be direct link to pay.Less likely to be direct link to pay.

Documentation kept to be minimum.Documentation kept to be minimum.

Owed by line managers.Owed by line managers.

MODEL OF PERFORMANCE MODEL OF PERFORMANCE APPRAISALAPPRAISAL

Process of performance appraisalProcess of performance appraisal

MEASURING ACTUAL PERFORMANCE

COMPARING WITH STANDARDS

SETTING PERFORMANCE STANDARDS

Methods of performance appraisalsMethods of performance appraisals

Essay appraisal :Essay appraisal : Narrative description of the employee Narrative description of the employee

strength ,weakness, past performance and suggestions for strength ,weakness, past performance and suggestions for improvement in rater’s own words.improvement in rater’s own words.

Critical incident appraisal : KKey behavior of an employee like “aggressive” or ey behavior of an employee like “aggressive” or

“imaginative” or “relaxed" but does not tell anything about how “imaginative” or “relaxed" but does not tell anything about how well the job has been done.well the job has been done.

Checklist :Checklist : EEvaluator uses a list of “behavioral description", goes down the valuator uses a list of “behavioral description", goes down the

list and give yes or no responses. he checks and ticks the items. list and give yes or no responses. he checks and ticks the items.

Graphic rating scale :Graphic rating scale : The assessor goes down the list of factors and notes that The assessor goes down the list of factors and notes that

point along the scale that best describe the employee.point along the scale that best describe the employee.

Cont…Forced choice:Forced choice:

AAmong the mentioned statements the rater have to make choice mong the mentioned statements the rater have to make choice which statement is most descriptive of the individual being evaluated.which statement is most descriptive of the individual being evaluated.

Behaviorally anchored rating scaleBehaviorally anchored rating scale

( BARS) :( BARS) :

TThese scales are descriptions of various degrees of behavior hese scales are descriptions of various degrees of behavior relating to an aspect of performance dimension.relating to an aspect of performance dimension.

Ranking method :Ranking method :

Under this method a man is compared with all the other Under this method a man is compared with all the other employees without any specific factors.employees without any specific factors.

Cont…Cont…

Confidential report:Confidential report:

It is a descriptive appraisal involves a lot of subjectivity It is a descriptive appraisal involves a lot of subjectivity because it based on impressions rather than on data.no feedback because it based on impressions rather than on data.no feedback is provided to the employee being appraised.is provided to the employee being appraised.

Group appraisal method:Group appraisal method:

A group of evaluators assesses the employee. Personal bias is A group of evaluators assesses the employee. Personal bias is minimized due to multiple evaluators, but it is consuming method.minimized due to multiple evaluators, but it is consuming method.

Field review method:Field review method: Under this method ,the line manager do not themselves fill up Under this method ,the line manager do not themselves fill up

the rating form .instead representatives from the personnel the rating form .instead representatives from the personnel departement come to the shop floor and interview the supervisors departement come to the shop floor and interview the supervisors to obtain information about their employees.to obtain information about their employees.

Cont…Assessment centre method:Assessment centre method:

A group of employees is drawn from different work units. A group of employees is drawn from different work units. They work together on an assignment . The employees are They work together on an assignment . The employees are evaluated both individually and collectively, under this evaluated both individually and collectively, under this method ,job related characteristics are evaluated to determine method ,job related characteristics are evaluated to determine employee potential for promotion.employee potential for promotion.

Human resource accounting method:Human resource accounting method: Competent and well trained employees are a valuable asset of Competent and well trained employees are a valuable asset of

an organization. Performance is judged in terms of costs and an organization. Performance is judged in terms of costs and financial gains.financial gains.

Appraisal by objectives:Appraisal by objectives: Employees are evaluated by how well they accomplish a Employees are evaluated by how well they accomplish a

specific set of objectives that have been determined for their job. specific set of objectives that have been determined for their job. This method is also known as management by objectives(MBO).This method is also known as management by objectives(MBO).

Difference between traditional and modern Difference between traditional and modern performance appraisal methodsperformance appraisal methods

CATEGORIES TRDITIONAL APPRAISAL

SYSTEMATIC MORDERN APPRAISAL

Guiding values Individualistic, control oriented,documentory

Systematic,Developmental,problem solving.

Leadership styles Directional, evaluative

Facilitative, coaching.

Frequencies Occasional. Frequent.

Formalities High Low

Reward Individualistic. Grouped, organizational.

LIMITATIONS /PROBLEMS OF LIMITATIONS /PROBLEMS OF PERFORMANCE APPRAISALPERFORMANCE APPRAISAL

Clarity of standards.Clarity of standards.

Problems of bias.Problems of bias.

Excessive leniency or strictness.Excessive leniency or strictness.

Halo error.Halo error.

Influence of a man’s job.Influence of a man’s job.

Cont…Cont…Recency error.Recency error.

Similarity error.Similarity error.

Stereotyping.Stereotyping.

Central tendency.Central tendency.

Discrimination.Discrimination.

CONT..CONT..

Incompetence.Incompetence.

Negative approach.Negative approach.

Resistance.Resistance.

Mere formality.Mere formality.

Varying standards.Varying standards.

Contrast error.Contrast error.