PERFORMANCE APPRAISAL

Group 6: Shreya Muralidhar-52 Varuna Singh-54 Rohan Gulati-56 Pravesh Dhavale-58 Siddhartha Jana-60

What is Performance Appraisal?

y Performance Appraisal is the systematic, periodic

and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job.
y It helps to evaluate ones achievements and ones

contributions to the overall goal of the organization.

OBJECTIVES
y To review the performance of the employees over a given period of y y y y y y y

time. To judge the gap between the actual and the desired performance. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Form a basis of personal decisions . Eg: salary increases, bonuses and promotions. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge effectiveness of other human resource functions such as recruitment, selection, training and development. To reduce the grievances of the employees.

Traditional Methods
1. Paired comparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. Free essay method 7. Critical Incidents 8. Group Appraisal 9. Field Review Method 10.Confidential Report 11.Ranking

Modern Methods
1. Assessment Center 2. Management by Objectives 3. Human Asset Accounting 4. Behaviorally Anchored Rating scales 5. 360 Degree Appraisal

Traditional Methods

y FORCED DISTRIBUTION

The evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve.
y GRAPHIC RATING SCALE

An employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. For example: Job Knowledge may be judged as average, above average, outstanding or unsatisfactory.

FORCED DISTRIBUTION METHOD FORCED DISTRIBUTION METHOD

No. of employees

10% 20% poor

40%

20%

10% Excellent

Below average good average Force distribution curve

GRAPHIC RATING GRAPHIC OR LINEAR RATING SCALES

0 No interest In work: consistent complainer 5 Careless: In-different Instructions 10 Interested in work: Accepts opinions & advice of others 10
Takes decisions promptly

15 Enthusiasti c about job & fellowworkers

20 Enthusiastic opinions & advice sought by others

0
Slow to take decisions

5
Take decisions after careful consideration

15
Take decisions in consultation with others whose views he values

20
Take decisions without consultation

y CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of the employees on job on the basis of which the rater describes the job performance of the employees. y FIELD REVIEW A senior member of the HR department discusses and interviews the supervisors to evaluate and rate their respective subordinates. y STRAIGHT RANKING METHOD The appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

y PAIRED COMPARISON

This method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
y CRITICAL INCIDENTS METHODS

The evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

FIELD REVIEW METHOD FIELD REVIEW METHOD

Performance Dimension Leadership Communication Interpersonal skills Decision making Technical skills Motivation subordinate peers superior customer

^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^

^ ^ ^

CRITICAL INCIDENT METHOD CRITICAL SUPERVISION METHOD

Ex: A fire, sudden breakdown, accident

Workers A B C D E

Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance Was happy to forced test

scale 5 4 3 2 1

PAIRED COMPARISON METHOD

For the Trait Quality of work Person rated
As compared A B C

For the Trait Creativity

Person rated
As compared A A + B + C + +

+ + + +

+ + -

+ + B

+ +

+ -

+ -

+ +

Modern Methods

Management By Objective
The superior and subordinate managers jointly fix common objectives. The superior and subordinate managers jointly make plans for achieving the objectives. The subordinate manager implements the plans. Then the actual performance of the subordinate manager is compared with the objectives and the deviations are found out. Necessary Corrective Action is taken or the plans are modified.

Assessment Centre
y An assessment centre for Performance appraisal of

an employee typically includes: Social/Informal Events Information Sessions Assignments being given to group of employees to assess their competencies to take higher responsibilities in the future. y The major competencies judged in assessment centers: interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation.

360 Degree Appraisals

360 degree appraisal has four integral components: 1.Self appraisal 2.Superiors appraisal 3.Subordinates appraisal 4. Peer appraisal.

Human Asset Accounting

y The aim of Human Resource Accounting is to

depict the Potential of the Employees in Monetary Terms. y Examined from 2 direction:
 Cost of Human Resource-expenditure incurred in

recruiting, staffing and training the quality of the employees  Value of Human Resource the yield which the above investment can yield in future.

Advantages of Performance Appraisals

Provides a record of performance over a period of time. Provides an opportunity for a manager to meet and discuss performance with an employee. Provides the employee with feedback about their performance and how they completed their goals. Offer an opportunity to think about the upcoming year and develop employee goals. Can be motivational with the support of a good reward and compensation system.

Disadvantages of Performance Appraisals

If not done appropriately, can be a negative experience. Very time consuming, especially for a manager with many employees. Based on human assessment and are subject to raters errors and biases. If not done right can be a complete waste of time. Can be very Stressful for the ones involved.

THANK YOU