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Management Development
•Management Development relates to the development and growth of the employees in an organisation through a systematic process.
Objectives of Management Development•Improving the performance of managers•Identifying the talents in employees and
to develop them to make them capable of handling managerial tasks.
•Motivating and Updating managers from time to time
•Improving the analytical and logical skills of employees.
Performance Appraisal
•It is the process of evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee.
Objectives of Performance Appraisal
Employee Organization
measuring the efficiencymaintaining
organizational control.
concrete and tangible
particulars about their
workassessment of
performance
mutual goals of the
employees & the organization.growth & developmentincrease harmony &
enhance effectiveness
Personal development work satisfaction involvement in the organization.
According to:
Aims at:
Traditional Methods1. Management by objectives or Goal Setting2. Graphic rating scale3. Work Standards approach4. Essay Appraisal5. Critical Incident Method6. Forced Choice rating method7. Point allocation method8. Ranking Methods
▫ Paired Comparison▫ Forced Distribution
9. Checklist
Modern Methods
1. Behaviorally anchored rating scale (BARS)
2. 360 degree performance appraisal3. Team Appraisals4. Balanced Score Card method
Management By Objectives (MBO)• Main aspects of MBO :
▫Clear and well defined goals▫A definite time span to achieve the goals▫Timely and constructive feedback• MBO is most commonly used for managers and
professionals• The goals are set with the active
participation of the employee and his supervisor.
• The goals have to be in alignment with the organisational goals and have to contribute to their achievement
Graphic rating method
•Used to rate the employees on factors like quantity and quality of job, job knowledge, dependability, punctuality, attendance etc.
•Graphic Rating Scale includes numerical as well as written descriptions
Graphic or Linear Rating Scales Attitude
No interestIn work: consistentcomplainer
Careless: In-differentInstructions
Interested in work: Accepts opinions & advice of others
Enthusiastic about job & fellow-workers
Enthusiastic opinions & advice sought by others
Decisiveness
Take decisions in consultation with others whose views he values
Slow to take decisions
Take decisions after careful consideration
Takes decisions promptly
Take decisions without consultation
0 5 10 15 20
0 5 10 15 20
Criteria Rating
1.Regularity on the job Most Least
Forced choice method
•Always regular•Inform in advance for delay•Never regular•Remain absent•Neither regular nor irregular
Staff AppraisalName . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present jobSection I Appraisal Of Performance
Note to Appraiser1.Appraisal must cover the period of the preceding 12 months2.Consideration to every function & responsibility of the job3.An objective factual assessment of an employee’s improvement or deterioration
Section II Promotability & Potential
Promotability1.Promotion now2.Within 2 years3.Within 5 years4.Unlikely to qualify for promotion
Section III Career Development
Section IV Notes on Interview with employee
Section V Comments on & Endorsement by Reviewing Authority
Specimen of Staff Assessment Form [Descriptive Essay Type]
Ex: A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
Critical Incident method
No. of employees
10% 20% 40% 20% 10%
poor Belowaverage
average good Excellent
Force distribution curve
Forced distribution method
Performance Points Behavior
Extremely good
7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average
5 Can expect to keep in touch with the customers throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor
1 Can expect to take extended coffee breaks & roam around purposelessly.
Behavioral Anchored Rating Scales
These companies are using 360 Degree Performance Appraisal Method
Examples of 360 degree performance appraisal method
WiproInfosysReliance Industries
Maruti UdyogHCL TechnologiesWyeth Consumer Health (WCH)
Issues in appraisal system
Appraisal Design
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?