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Performance Appraisal Systems1
Performance Appraisal Systems
Chapter 5
Performance Appraisal Systems2
Learning Objectives
• Meaning of PA• Process• Purpose of PA• Benefits• Methods of PA• Career Planning
Performance Appraisal Systems3
What is Performance Appraisal
Performance Appraisal (PA) refers to all those procedures that are used to evaluate the Personality, Performance, Potential, of its
group members
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Why Appraisals Are Important
•Recognize accomplishments•Guide progress•Improve performance
Performance Appraisal Systems5
Why Important (cont.)
• Review performance• Set goals• Identify problems• Discuss career advancement
Performance Appraisal Systems6
Objectives of PA
1. Compensation & Rewards2. Training & Development3. Administrative Decision4. Personal Development5. Feedback
Performance Appraisal Systems7
Process of PAJob Analysis
Establishing Standards of Performance
Communicating the Standards
Measuring Actual Performance
Comparing Actual performance with the Standards
Taking Corrective Actions
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Methods of PA
1. TRADITIONAL
2. MODERN
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Traditional Methods
1. Unstructured Method2. Straight Ranking3. Paired Comparison4. Man – to – Man Comparison5. Grading Method6. Graphic Rating Scale7. Forced Choice Method8. Check List9. Weighted Checklist10.Free Essay Method11.Critical Incidence Method12.Field Review Method13.Confidential Report14.Forced Distribution Method
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Forced Distribution method
10% 20% 40% 20% 10%
poor Belowaverage
average good Excellent
No. of employees
Force distribution curve
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Critical Incident method
Ex: A fire, sudden breakdown, accident
Workers reaction scale
A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1
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Checklist method
Simple checklist method:Is employee regular Y/NIs employee respected by subordinate Y/NIs employee helpful Y/NDoes he follow instruction Y/NDoes he keep the equipment in order Y/N
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weights performance rating(scale 1 to 5 )
Regularity 0.5Loyalty 1.5Willing to help 1.5Quality of work 1.5Relationship 2.0
Weighted checklist method
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Criteria Rating
1.Regularity on the job Most Least• Always regular• Inform in advance for delay• Never regular• Remain absent• Neither regular nor irregular
Forced choice method
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Graphic Rating Scale
Employee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor 5 4 3 2 1 _
DependabilityInitiativeOverall outputAttendanceAttitudeCooperationTotal score Continuous Rating Scale
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Paired comparison method
A B C D E Final RankA - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation
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Modern Methods
1. Behaviorally Anchored Rating Scales – BARS
2. MBO3. Assessment Centre4. Human Resource Accounting5. 360 degree Appraisal
Motivation18
What is MBO?
Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback
Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback
Management by Objectives (MBO)
A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.
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MBO(Management By Objectives)
1. Object formulation, 2. Execution process 3. Performance feedback
- Peter F Drucker 1954
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BARS( Behaviorally Anchored Rating Scale)
Step 1. Identify critical incidents
Step 2. Select performance dimension
Step 3. Assign scales to incidents
Step 4. Develop final instrument
It focuses on specific desirable and undesirable incidents of work behavior
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Human Resource Accounting
Cost & Contribution difference Techniques:• Probationary reviews• Observation• Survey of opinion• One-to-one review
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360 degree PA
Assessment Center23
What happens at an Assessment Centre?
Group exercises:• Discussions• Practical tasks• Role play
Individual exercises:• Written tasks• In-tray exercises• Psychometric tests• Presentations• Interviews
A number of different exercises, which are likely to include:
Plus socialising with assessors, fellow-candidates and recent graduates
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Sources of Appraisal
• Superior• Peer• Customers• Subordinates
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Problems in PA
1. Opportunity Bias2. Group Cohesiveness3. Similarity Error4. Rating Biases
– Leniency & Strictness– Halo effects– Central Tendency– Personal Prejudice– Recency effect
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Essentials of an effective appraisal system
1. Reliability & Validity2. Clear Objectives3. Job Relatedness4. Standardizations5. Training to Appraisers6. Documentation7. Feedback and participation8. Post appraisal review9. Periodic Review
Performance Appraisal Systems27
CAREER PLANNING
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Introduction
• Career: Herbert Simon defines career as “an honorable occupation with one normally takes up during his/her youth with the expectation of advancement and pursues it until retirement
• Career planning and development is a means by which an organisation can sustain or increase its employees productivity and at the same time preparing them for a changing world.
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Objective of Career Planning
• Identifying and making clear opportunities available. • To reduce employee turnover.• To Increase productivity.• To identify the career stages and enhance the
motivational level.• To achieve the organisation’s goal by providing the
employees paths to reach higher order needs.
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Career Planning Flow & StagesCareer Planning Career Goals
Career Paths
CareerFeed Back
Retirement
Needs Safety, Security Physiological
Safety, Security
Achievement esteem, autonomy
Esteem actualization
Self actualization
Age 20 25 30 45 55 65
Career Stages Exploration Establishment Advancement Maintenance
Career stages and Important needs
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Scope Of Career Planning
• Human Resource forecasting and planning• Career Information• Career Counseling• Career Pathing• Skill Assessment training• Succession Planning
Performance Appraisal Systems32
CAREER ANCHORS
• Technical Competence• Managerial competence• Stability and Security• Creativity and Challenge• Freedom and Autonomy• Dedication to a cause• Lifestyle
Performance Appraisal Systems33
Why A Career Plan Could Fail !
• Efforts are insincere• Look for immediate benefits• Lack of interaction with hired agencies• Impracticability in introduction• No system to evaluate• Bureaucratic model of organization
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Importance of career planning
• Involvement of the employer and employee• Employees need to be aware of the organizational
opportunities.
Performance Appraisal Systems35
Case Study – Colgate Palmolive
Employees fill the IDP FormThe form is sent to the managersEmployees and managers discuss
Employees interests Strengths Trainings
HR arrange for the training
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Cadbury – Case study
• Early Career
• Mid Career
• Senior career
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Early Career
• First 5 years of employment• Management skills training• Internal- short term placements• Workshops• Mentoring
Aim – Understanding of Business structure.
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Mid Career
• Team Management trainings• Strategic leadership trainings• International opportunities• Ongoing career dialogues
Aim – Equip with capability to lead teams, develop and deliver business stratergies
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Senior Level
• Highest level • Approximately 150 members globally• Global leadership conference• Executive development programme• External expert coaching
Aim – Support personal leadership styles to set business stratergies.
Performance Appraisal Systems42
Steps in Career planning (Employee perspective)
• Make Career Planning an Annual Event
• Map Your Path Since Last Career Planning
• Reflect on Your Likes and Dislikes, Needs and Wants
• Examine Your Pastimes and Hobbies
• Make Note of Your Past Accomplishments
Performance Appraisal Systems43
Contd.
• Look Beyond Your Current Job for Transferable Skills
• Review Career and Job Trends
• Set Career and Job Goals
• Explore New Education/Training Opportunities
• Research Further Career/Job Advancement Opportunities
Performance Appraisal Systems44
Learning Outcomes
• Understand the Performance Appraisal System and how to conduct it.
• Understand the Career Planning process