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MADE BY-Reshma tummala (6)
Richa mishra (8) Sneha rani (38)
Palak singhal (39)Aditi kakar (42)
Silkey varshney (46) Anuja agrawal (56)
Gitanjali arora (60)
What is performance appraisal Performance appraisal is the process of obtaining,
analyzing and recording information about the relative worth of an employee.
The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee.
Its aim is to measure what an employee does.
Objectives of performance appraisal To effect promotion based on competence and performance To confirm the services of probationary employees upon their
completing the probationary period satisfactorily. To assess the training and development needs of employees To decide upon a pay raise where ( as in the unorganized
sector ) regular pay scales have not been fixed. To let the employees know where they stand in so far as their
performance is concerned and to assist them with constructive criticism and guidance for the purpose o their development
To improve communication. It provides a format for dialogue between the superior and the subordinate.
It improves the understanding of personal goals and concerns. It can be used to determine whether HR programs such as
selection, training and transfer have been effective or not
Traditional approach
Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees.
After it is used as a tool for determining rewards and punishments for the past performance of the employees
This approach did not consider the developmental aspects of the employee performance.
The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees
In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed.
Modern approach
The modern approach to performance development has made the performance appraisal process more formal and structured.
the performance appraisal is taken as a tool to identify better performing employees from others, employees training needs, career development paths, rewards and bonuses and their promotions to the next levels.
Now appraisals have become a continuous and periodic activity in the organizations.
The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes
It also includes feedback.
Techniques of performance appraisal
Traditional method
Straight line method This is one of the oldest and simplest
techniques of performance appraisal. In this 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 No feedback is given This method is subject to hallow and recency
effect.
PAIRED COMPARISON
A better technique of comparison than the straight ranking method
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.
Modern methods
360 Degree Performance Appraisals
It is known as 'multi-rater feedback‘. It is the most comprehensive appraisal where the
feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.
360 degree appraisal has four integral components:
1. Self appraisal2. Superior’s appraisal3. Subordinate’s appraisal4. Peer appraisal
MANAGEMENT BY OBJECTIVES The concept of ‘Management by Objectives’
(MBO) was first given by Peter Drucker in 1954. It is a process where o employees and the superiors come together to
identify common goals,o the employees set their goals to be achieved,o the standards to be taken as the criteria for
measurement of their performance and contribution and deciding the course of action to be followed
Performance appraisal in Coca Cola Ltd
Performance appraisal in COCA-COLA LTD. is done annually.
For appraisal in Coca-Cola Ltd. a SELF-APPRAISAL form is given to the staff members and they fill it up.
Then after according to their self-observation and through the appraisal form filled by the staff members rating is given to the members.
Accordingly then incentives and promotions are granted. In COCA-COLA LTD. at the majority senior staff
members submit all the information timely to their superiors.
Old Performance Appraisal System
The appraisal occurred once a year. It required employees to document
their accomplishments. The manager would assess these
accomplishments in writing and assign numerical ratings.
The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory) to 5 (exceptional).
Merit increases were tied to the summary rating level.
Merit increase information and performance
appraisals occurred
in one session.
DRAWBACKS
Inequitable ratings Employee dissatisfaction All employees given merit
raises irrespective of their performances.
New Performance Appraisal System
The absence of a numerical rating system.
The presence of a half-year feedback session.
The provision for development planning. Prohibition in the appraisal guidelines of
the use of subjective assessments of performance.
Three stages
FIRST STAGE Occurs at the beginning of the year. Written agreement on the employee’s
goals, objectives, plans, and tasks for the year.
Standards of satisfactory
performance
SECOND STAGE
Mid-year Mandatory feedback Progress toward objectives performance strengths and
weaknesses Objectives sheet
THIRD STAGE
Takes place at year’s end. Written document Feedback and improvement. Training, education, or development
experiences Merit raise amount
SURVEY 81 percent better understood work group
objectives 84 percent considered the new appraisal fair 72 percent said they understood how their
merit raise was determined 70 percent met their personal and work
objectives 77 percent considered the system a step in the
right direction
CONCLUSION Improvement Employees satisfaction Better co ordination Employees are objective specific Achievement of set
targets and standards.