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ë PURPOSE
ë Organisation -o help organisation to achieve its goals (Performance)
ë -o help employee reach his potential (Potential )
ë PROCESS
ë -he emphasis is on the way goals have been achieved ie Process used
ë Process is defined in the beginning
ë Judgement on quality of the process used
ë Judgement by multi-raters
ë OU-COMES
ë Feedback for improvements
ë Salary decisions
ë Performance planning for the next year
ë Developmental plan
ë Career planning /job matching
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# |%to the system
ë Ñey result areas and measurable ÑPIs linked to organisation goals in
the beginning of the year
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ë Focus is on achieving ÑPIs using process & Competencies as
defined for role
ë Assessment forms have become scientific with clearly laid down
guidelines .
ë Individuals appraises himself and expresses his /her voice
ë Evaluation is done on clearly laid criteria and moderations are
done by committees to avoid bias .
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ë Increments / Incentives based on rating
ë Gap identification for development
ë Job rotations for development
ë Promotions are done based on potential appraisal /assessment
centers
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. Performance is basically an
as seen based on goals achieved . Whereas the
potential is the hidden part of the person¶s
capability that he/she posses .
2. Potential is difficult to measure . Hence one
projects it based on the quality /delivery and
stretch an individual takes on goals.
3. A persons ability to take up next higher level of
job is basically depends on competencies that he
posses for next role .Most often people are
measured on current competencies and promote
them .
4. One needs to check the potential in terms of
competencies displayed in relation to next role .
o. -he assessment of potential is done
thru multi level assessment by internal
committees or external agencies.
6. Ideally the reward for performance
should be monetary where as the
reward for competencies displayed
/potential should be increase in
responsibility of the person. /growth
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. -he supervisor or boss plays the role of judge as well as the helper who
has to help the assesses in developing. He gets rated on output and not
on development of people.
2. Non clarity of Objectives. Is it for development or target achievement or
rewards or career planning or execution of annual plans.
3. Operational pressures force supervisors not to spend time with his
subordinates and observe them.Ultimately he goes by his limited
observations .
4. It becomes too late to get feedback as the process provides for yearly
feedback. Bosses wait for a year to give feedback.
o. Employees are not given clear cut goals and adequate resources and
powers to execute plans .
6. Bosses are not trained on assessment of people. Hence assessment is
based on perceptions.
7. -he Boss is always right makes it imperative for a subordinate to accept
the ratings given.
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ë A well documented system
ë A well trained manpower of assessors
ë A well designed goal setting system
ë A mechanism for assessment on goals with weightage on process
as well on ÑPis
ë ÑPIs should be qualitative and quantitative to meet internal
Organizational and external customer requirements
ë A well defined competency matrix for each level
ë Should not be used for rewards as well finding out development
gaps .
ë Should record the feedback given to employee by assessor .
ë Employees grievances are addressed by HR after the evaluation .