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Kunal Upadhyay Worry is a total waste of time, it doesn’t change anything but… Surely keeps us very very busy doing NOTHING !!!

BBA-SEM-3-HRM-Performance appraisal

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Page 1: BBA-SEM-3-HRM-Performance appraisal

Kunal Upadhyay

Worry is a total waste of time, it doesn’t change anything but…

Surely keeps us very very busy doing NOTHING !!!

Page 2: BBA-SEM-3-HRM-Performance appraisal

Performance Appraisal is an objective assessment of an individual’s performance against well defined benchmarks

Performance being measured against such factors as-

Job knowledge Quality of output Initiative Leadership abilities Supervision Dependability Co-operation Judgment Adaptability Health of employees

Page 3: BBA-SEM-3-HRM-Performance appraisal

To effect promotions based on ability and performanceTo confirm the services of probationary employees their

completing the probationary period To assess the training and development needs of

employeesTo decide upon a pay raise where regular pay have not

been fixedTo let the employees know where they standTo determine whether HR programmes such as

selection, training, and transfers have been effective or not

Page 4: BBA-SEM-3-HRM-Performance appraisal

General Application Specific PurposeDevelopmental Uses -Identification of individual needs

Performance feedback-Determining transfers and job assignments-Identification of individual strengths

Administrative Uses/Decisions -Salary -Promotion-Retention or termination-Lay-offs

Organizational Maintenance -HR Planning-Determining organization training needs-Identification of poor performance

Documentation -Criteria for validation research-Documentation for HR decisions-Helping to meet legal requirements

Page 5: BBA-SEM-3-HRM-Performance appraisal
Page 6: BBA-SEM-3-HRM-Performance appraisal

Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job-performance criteria should be changed

Excellent Good Acceptable Fair PoorDependabilityDependability - - - - -InitiativeInitiative - - - - -Overall OutputOverall Output - - - - -AttendanceAttendance - - - - -AttitudeAttitude - - - - -Co-operationCo-operation - - - - -TotalTotal + + + + +

Page 7: BBA-SEM-3-HRM-Performance appraisal

Rater is given a series of statements about an employee. These statements are arranged in blocks of two or more, and rater indicates which statement is most or least descriptive of employee

Learn fast------------------works hardWork is reliable------------performance is a good Absent often----------------others usually tardy

Page 8: BBA-SEM-3-HRM-Performance appraisal

The approach focuses on certain behaviors of an employee that makes the difference between effective effective and non-effectivenon-effective performance of a job

Continuing Duties Targets Critical IncidentsScheduled production for plant

Full utilization of personnel and machinery in the plant: order delivered on time

Decreased late orders by 10 % last monthIncreased machine utilization in plant by 20% last month

Page 9: BBA-SEM-3-HRM-Performance appraisal

Peter F. Drucker who first gave the concept o MBO ‘’Management By Objective’’ to the world way back in 1954 when his THE PRACTICE OF MANAGEMENT was first published

MBO process Setting of organizational purpose and objective key result area (KRA) Setting Subordinates objectives Matching resources with objective Appraisal

Page 10: BBA-SEM-3-HRM-Performance appraisal

The 360-degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders

Page 11: BBA-SEM-3-HRM-Performance appraisal
Page 12: BBA-SEM-3-HRM-Performance appraisal

Leniency or SeverityLeniency or Severity

The ratter may feel that anyone under his or her jurisdiction who is rated unfavourably who is rated unfavourably will reflect poorly on his or her own worthiness

He or she may feel that anyone who could have been rated unfavourably has already been discharged from the company

He or she may feel that derogatory rating will be revealed to the ratee to the determent of the relations between the ratter and the ratee

He or she may rate leniently because there exists, in the culture, a response set to approve rather than disapprove

Page 13: BBA-SEM-3-HRM-Performance appraisal

Central TendencyCentral Tendency

This occurs when employees are incorrectly rated near the averages or middle of the scale,

The attitude of the rater is to play safe “Do I know the man sufficiently well to be able to give a fair

assessment of him”? “If I rate him the way I think I should, what will be its influence on his

relation with me and on his performance in the future ”? “If I rate him the way I think I should, what will be its effect on his

relationship within the group or subordinates”? “If I rate him the way I think I should, will I bee accused to being

partial”?

Page 14: BBA-SEM-3-HRM-Performance appraisal

Halo ErrorHalo Error

A halo error take place when one aspect of an individual's performance influences the evolution of the entire performance of the individuals

If the introductory paragraph is poorly written, the chance of scoring high marks in that answer are diminished

Page 15: BBA-SEM-3-HRM-Performance appraisal

Primacy & Recency EffectsPrimacy & Recency Effects

The raters rating heavily influence either by behaviour exhibited by the ratee during the early sages of the review period (primacy)

Behaviour exhibited the ratee near the end of the review period (Recency)

Page 16: BBA-SEM-3-HRM-Performance appraisal

Spillover EffectsSpillover Effects

This refer to allowing past performance appraisal ratings

Good or Bad

Status EffectStatus Effect

Refers to overrating of employees in higher-level jobs or held in high esteem

Lower-level job or jobs or jobs held in low esteem

Page 17: BBA-SEM-3-HRM-Performance appraisal

Job evolution seeks to determine the relative worth of each job so that salary differential can be established. In job evolution only jobs are rated unlike in performance appraisal where only job holder are rated

Page 18: BBA-SEM-3-HRM-Performance appraisal

Job Evolution Performance AppraisalThe job is rated, keeping in view such factors as responsibility, qualification, experience and working condition required for perform the job

Employee is rated on the basis of his her performance

A job is rated before the employee is appointed to occupy it

Evolution takes place after the employee has been hired and placed on a job

The purpose is to establish satisfactory wage differentials

The purpose is effect promotions, offer reward, award punishments, resort to lay-offs an transfer

It is not compulsory many organizations carry on without it. Where it is followed it is mainly for lower level jobs

Compulsory, it is done regularly for all jobs

Job evolution committee is constituted for the purpose evolution

Appraisal is done by employee themselves, peers, superiors, superiors, group of people