Performance Appraisal

Presented by
Nishita Paul PG-10-37
AnandPurohit PG-10-38
GauravRastogi PG-10-39
VivekSanghavi PG-10-40
Alisha Sanghvi PG-10-41
VaibhavSarangale PG-10-42
ALISHA

INTRODUCTION-
A performance appraisal, employee appraisal, performance review, or (career)
development discussion is a method by which the job performance of an employee is evaluated
(generally in terms of quality, quantity, cost, and time) typically by the corresponding manager
or supervisor. A performance appraisal is a part of guiding and managing career development. It
is the process of obtaining, analyzing, and recording information about the relative worth of an
employee to the organization. Performance appraisal is an analysis of an employee's recent
successes and failures, personal strengths and weaknesses, and suitability for promotion or
further training. It is also the judgment of an employee's performance in a job based on
considerations other than productivity alone.
Aims-
Generally, the aims of a performance appraisal are to:
• Give employees feedback on performance
• Identify employee training needs
• Document criteria used to allocate organizational rewards
• Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
bonuses, etc.
• Provide the opportunity for organizational diagnosis and development
• Facilitate communication between employee and administration
• Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
• To improve performance through counseling, coaching and development.
ANAND
Methods-
A common approach to assessing performance is to use a numerical or scalar rating system
whereby managers are asked to score an individual against a number of objectives/attributes. In
some companies, employees receive assessments from their manager, peers, subordinates, and
customers, while also performing a self-assessment. This is known as a 360-degree appraisal
and forms good communication patterns.
The most popular methods used in the performance appraisal process include the following:
• Management by objectives
• 360-degree appraisal
• Behavioral observation scale
• Behaviorally anchored rating scales
GAURAV
Performance Appraisal Process
The performance appraisal process is a process that evaluates employee performance.
Normally it compares quality, quantity, cost, and time. Some of the things that performance
appraisal are used to do would be.
• Give something tangible to the employee regarding their work performance.
• Shows what training employees need.
• Determines what the employees raise might be.
There are some other things that performance appraisals do, these are just some of them.
There are some procedures that you should put in work at your work place. This will help the
employees know what you are expecting of them, and also establish a standard within your
work that everyone will be able to understand and follow. Some of these things would be
listed here.
• Establishing performance standards
• Communicate standards and expectations
• Set up a system that measures actual performance
• Compare employee with the standards implemented
• Discuss results with employee
• Make a decision on what you are going to do, or take corrective action.

Now as an employee, you should not get nervous when you hear anything about a performance
appraisal or review. As long as you have tried as hard as you can and done everything in your
capability to do your job duties, you can take what you hear from you employer and use it to
help yourself. You can take what your employer tells you about the appraisal and use it to help
you do your job better.
Now most Performance Appraisals are held annually, but it can be held whenever your
employer sees fit. Most companies hold their evaluations once a year because they feel that it
is too time consuming. Some feel that having it twice a year is better because you can let the
employee know if they are doing good, or if they are doing something that they could do better
you can tell them sooner then if it was help once a year. One good idea is when you are doing
the evaluations with the employees it is really nerve racking for both the employee and for
 you. One good idea would be to make your it is a private room and you can handle the
evaluation without interruption and where the employee can feel comfortable asking questions.
If you are an employer you can find many examples of great strategies in creating a good
performance appraisal process all over the Internet. There are many companies that just make
and implement these appraisals in your work place and train your managers on how to give
them out and will show you the best way to teach your employees about what you are
expecting from them.
Process of Performance Appraisal
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriate techniques of
measurement, taking care that personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance. It includes recalling, evaluating and analysis of data related
to the employees’ performance.

DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-
one basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have an
effect on the employees’ future performance. The purpose of the meeting should be to solve
the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.

Performance Appraisal Form

Employee Name_____________________ Appraiser's Name__________________

Employee ID _____________________ Employee ID __________________

Designation _____________________ Designation __________________

Department _____________________ Department __________________

D.O.J _____________________ Date of Appraisal__________________

Functional
Details of Achievement
KRAs

S Key Result Detailed Description of Self

Priority
No. Area Performance Rating
all
 all

NISHITA

Performance Appraisal System-

It is an ERP solution to assess all the employees in an organization and reward

accordingly depending on his contribution to the organizational goal.

Logical Flow Diagram for performance appraisal

As per the above process the appraisal can be performed on the following parameters.

Sr. No. Parameter Weightage

1 Work Performance 50%
2 Supervisor’s Appraisal 30%
3 Peer Appraisal 15%
4 Self-appraisal 5%

As per the standards set by the organization the employee can be rewarded. Eg in this case
Sr. No. Performance as per standards Recommendation
1 100% & above Promote
2 80% + 35% Salary increment
3 50% + 10% Salary increment
4 25% + No Increment , counseling
5 0-25% HR Counseling and T&D.

Master Data-
To initiate with the process of appraisal, following master data files are required.
1. Employee Master Data
2. Performance Appraisal Master Data

1. Employee Master Data-

This file will include all the employee data like his Name, Employee ID, Department,
Designation, Salary Structure, past performance etc.

NAME DATA TYPE

Employee_code (PK) TEXT(alphanumeric)
Name TEXT
Department TEXT
Designation TEXT
Regularity TEXT (alphanumeric)
Current_salary Numeric
Last_Appraisal_Score TEXT (alphanumeric)
Current_Appraisal_Score TEXT (alphanumeric)
Joining_Date Numeric
Address TEXT
City TEXT
State TEXT
 Country TEXT
Telephone / Mobile No Number
Account No. Number
Marital_Status Boolean (S/M/D)
Gender Boolean (M/F)
Age Number

2. Performance appraisal Master-

This data will include all the appraisal parameters which are predefined as per the
company policy. It will also help in the appraisal process such as transfer, promotion, training,
counseling etc. depending upon the performance of the employee as per the standards.

NAME DATA TYPE

Department_code TEXT(alphanumeric)
Employee_Work_performance TEXT(alphanumeric)
Standards
Supervisors_Appraisal_Standard TEXT(alphanumeric)
Peer_Appraisal_Standard TEXT(alphanumeric)
Self-appraisal_Standard TEXT(alphanumeric)
Department_Standard TEXT(alphanumeric)

Transaction Masters

Following are the transaction data files for the appraisal process.

1. Employee work performance (EWP) data

This is a transaction file where all data for a particular employee for his work
performance is recorded. The access is only for Production Manager.
NAME DATA TYPE
Employee_code (PK) TEXT(alphanumeric)
Name TEXT
Department TEXT
 Designation TEXT
Annual_Productivity Numeric
Regularity TEXT (alphanumeric)
Time_Management TEXT(alphanumeric)
Employee_Idle_time Numeric

2. Supervisor’s Appraisal data-

NAME DATA TYPE
Employee_code (PK) TEXT(alphanumeric)
Name TEXT
Department TEXT
Designation TEXT
Accountability TEXT(alphanumeric)
Behavior_With_Superior TEXT(alphanumeric)

3. Peer Appraisal data

NAME DATA TYPE

Employee_code (PK) TEXT(alphanumeric)
Name TEXT
Department TEXT
Designation TEXT
Accountability TEXT(alphanumeric)
Behavior_With_Peers TEXT(alphanumeric)
Team_Participation TEXT(alphanumeric)

4. Self-appraisal data
NAME DATA TYPE
 Employee_code (PK) TEXT(alphanumeric)
Name TEXT
Department TEXT
Designation TEXT
Accountability TEXT(alphanumeric)
Behavior_With_Peers TEXT(alphanumeric)
Behavior_with_superiors TEXT(alphanumeric)
Team_Participation TEXT(alphanumeric)
Productivity TEXT(alphanumeric)

VAIBHAV

Data Flow Diagrams (DFD) for the appraisal process-

1. Initiation of Appraisal Process-

1 Business Organization
Access Registration
PATIENT
Control Details
HR dept. MASTER
Initiation of 1 Employee
appraisal process Master

2. Response of employees-

a. Employee work assessment data-

2a Business Organization
Assessme
3. Registration
nt Data PATIENT
4. 1 Employee
Details
Producti Response MASTER
Master
on recording for
Employee work 1 Work
assessment Performance data
 b. Supervisor’s Appraisal data-

2b Business
Assessme
c. Organization Registration
nt Data PATIENT
d. 1 Employee
Details
Supervis Response MASTER
e.or Master
recording for
Supervisor’s 2 Supervisor’s
Appraisal Data

c. Peer Appraisal data-

2c Business
Assessme
d. Organization Registration
nt Data PATIENT
e. 1 Employee
Details
Peers Response MASTER
f. Master
recording for Peer
Appraisal 3 Peer Appraisal
Data

d. Self-Appraisal data-

2d Business
Assessme
b. Organization Registration
nt Data PATIENT
c. 1 Employee
Details
Employe Response MASTER
d. e Master
recording for Self-
Appraisal 4 Self-Appraisal
Data
 1. Calculation of performance as per set standards-

Weight
3 Business ed
Output
b. Organization Registration
averag
PATIENT
c.HR 1 Employee
e Details
Calculating MASTER
Master
d.
admin
e. \ weighted average 1 Work
of Appraisal Performance data
parameters 2 Supervisor’s
Appraisal Data
3 Peer Appraisal
Data
4 Self-Appraisal
Data
1. Performance Evaluation process-
a. Case of 100% performance-

Performa
4a Business
Email nce
Supervi Organization Registration
output PATIENT
Details
1 Employee
MASTER
Performance Master
HR Evaluation and
Email Recommendation
for Promotion 2 Performance App.
Em Master
Line ail Standard
Email Performa
Manager
nce

b. Case of 80% performance-

Employ
Performa
4b Business
Email nce
output Registration
Supervi Organization
PATIENT
Performance Details
1 Employee
MASTER
Evaluation and Master
HR Recommendation
Email
for 35% Salary
2 Performance App.
Em Increment Master
Line ail Standard
Email Performa
Manager
nce

Employ
 c. Case for 50% performance-

4c Business
Email
Supervi Organization Registration
Performa
nce PATIENT
Details
output
1 Employee
MASTER
Performance Master
HR Evaluation and
Email Recommendation
for 10% salary 2 Performance App.
Em Master
Line ail Standard
Email Performa
Manager
nce

Employ

d. Case of 25% performance-

4d Business
Email
Supervi Organization Registration
Performa
nce PATIENT
Performance Details
output
1 Employee
MASTER
Master
evaluation. No
HR
Email increment,
Recommendation 2 Performance App.
Em for Counseling Master
Line ail Standard
Email Performa
Manager
nce

Employ
 e. Case of0-25% performance-

4e Business Performa
Email nceRegistration
Supervi Organization
PATIENT
Performance Details
1 Employee
MASTER
Master
evaluation. No
HR
Email increment,
Recommendation 2 Performance App.
Em for HR Counseling Master
Line ail Standard
Email Performa
Manager
nce

Employ
VIVEK

Appraisal System and Other ERP modules-

ERP system helps to integrate all the activities in an organization. It helps to get the
information of one module to another.

• The appraisal system can be connected to sales master of Sale Moduleto get the
information of sales done by the employee which is a parameter for performance
appraisal.
• The system also affects finance module, as increase in salary during appraisal activity
would result in budgeting of employee cost.