PERFRMNC AP

8/7/2019 PERFRMNC AP

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SLIDE 1

A performance appraisal is a method by which the job performance of

an employee is evaluated typically by the corresponding manager or supervisor .[2] A

performance appraisal is a part of guiding and managing career development . It is theprocess of obtaining, analyzing, and recording information about the relative worth of an

employee to the organization. Performance appraisal is an analysis of an employee¶s recent

successes and failures, personal strengths and weaknesses, and suitability for promotion or

further training. It is also the judgement of an employee¶s performance in a job based on

considerations other than productivity alone.

SLIDE 2 The aims of perfrmnc aprasl

G enerally, the aims of a performance appraisal are to:

G ive employees feedback on performance

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for personnel decisions: salary increases, promotions , disciplinary actions ,

bonuses, etc.

Provide the opportunity for organizational diagnosis and development

Facilitate communication between employee and administration Validate selection techniques and human resource policies to meet federal Equal

Employment Opportunity requirements.

To improve performance through counseling, coaching and development.

SLIDE 3

The various methods and techniques used for Performance appraisal can be categorized as the following

traditional and modern methods:



SLIDE 4

Traditionally, performance appraisal has been used as just a method for determining and justifying thesalaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay)

and punishments (a cut in the pay) for the past performance of the employees.

1.ESSAYAPPRAISALMETHOD This traditional form of appraisal, also known as "Free Form method" involves adescription of the performance of an employee by his superior. The description is anevaluation of the performance of any individual based on the facts and often includesexamples and evidences to support the information. A major drawback of the method isthe inseparability of the bias of the evaluator.

2 .STRAIGHTRANKINGMETHOD 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 overallperformance. It is quite useful for a comparative evaluation.

3.PAIREDCOMPARISON A better technique of comparison than the straight ranking method, this method compareseach employee with all others in the group, one at a time. After all the comparisons on thebasis of the overall comparisons, the employees are given the final rankings.

4.CRITICALINCIDENTSMETHODS In this method of Performance appraisal , the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes bothnegative and positive points. The drawback of this method is that the supervisor has to notedown the critical incidents and the employee behaviour as and when they occur.

5.FIELDREVIEW In this method, a senior member of the HR department or a training officer discusses andinterviews the supervisors to evaluate and rate their respective subordinates. A majordrawback of this method is that it is a very time consuming method. But this method helpsto reduce the superiors¶ personal bias.

6.CHECKLISTMETHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job.The checklist contains a list of statements on the basis of which the rater describes the onthe job performance of the employees..

SLIDE 5

NOW CMNG UP WID MODEREN APPROCH TO PERFRMNC APPRAISL

ASSESSMENT CENTRES -

An assessment centre typically involves the use of methods like social/informal events, testsand exercises, assignments being given to a group of employees to assess theircompetencies to take higher responsibilities in the future. The trained evaluators observe



and evaluate employees as they perform the assigned jobs and are evaluated on job relatedcharacteristics.

The major competencies that are judged in assessment centres are interpersonal skills,intellectual capability, planning and organizing capabilities, motivation, career orientationetc.

B EHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combinesthe graphic rating scale and critical incidents method.

In this method, an employee¶s actual job behaviour is judged against the desired behaviourby recording and comparing the behaviour with BARS. Developing and practicing BARSrequires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accountingmethod tries to find the relative worth of these assets in the terms of money. In this methodthe Performance appraisal of the employees is judged in terms of cost and contribution of theemployees. The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the costincurred on them.

2 ND comes 360 degree Performance Appraisals

360 degree feedback , also known as ' multi-rater feedback ' , is the most comprehensiveappraisal where the feedback about the employees¶ performance comes from all the sources thatcome 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.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, hisachievements, and judge his own performance. Superior¶s appraisal forms the traditional part of

the 360 degree performance appraisal where the employees¶ responsibilities and actualperformance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters likecommunication and motivating abilities, superior¶s ability to delegate the work, leadershipqualities etc. Also known as internal customers, the correct feedback given by peers can help tofind employees¶ abilities to work in a team, co-operation and sensitivity towards others.



DEN COMES THE 3 RD i.e Management by Objectives¶ (M B O)

The concept of µManagement by Objectives¶ (M B O) was first given by Peter Drucker in 1954.It can be defined as a process whereby the employees and the superiors come together toidentify common goals, the employees set their goals to be achieved, the standards to be takenas the criteria for measurement of their performance and contribution and deciding the course of

action to be followed. It inclds 3 main perspectvs «..

1) B etter communication and Coordination ± Frequent reviews and interactions betweensuperiors and subordinates helps to maintain harmonious relationships within the enterprise andalso solve many problems faced during the period.

2) Motivation ± Involving employees in the whole process of goal setting and increasingemployee empowerment increases employee job satisfaction and commitment.

3) Clarity of goals ± With MBO, came the concept of SMART goals

The goals thus set are clear, motivating and there is a linkage between organizationalgoals and performance targets of the employees.

SLIDE 6

Now I vl b discssngCriteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and their rolesand responsibilities change.For top level management

y Degree of organizational growth and expansion y Extent of achievement of organizational goals y Contribution towards the society y Profitability and return on capital employed

For middle level managers

y Performance of the departments or teams y Co-ordination with other departments y Optimal use of resources y Costs Vs. revenues for a given period of time

For front line supervisors

y Quantity of actual output against the targets y Quality of output against the targets y Number of accidents in a given period y Rate of employee absenteeism





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PERFRMNC AP