Human Resource Management. Performance appraisal and its methods.

Submitted to : Prof. Priyanka Batra Submitted By : Hiran Patel (IB ) Roll no. 13

WHAT IS PERFORMANCE APPRAISAL?

It is concerned with behaviors that affects performance.

Assessment of an individual’s performance in a systematic way.

WHAT IS PERFORMANCE APPRAISAL CONTI…

“Performance appraisal is a systematic appraisal of the employee’s personality traits and performance on the job and is designed to determine his contribution and relative worth to the firm”

-Shubin

FACTORS TO BE CONSIDERED FOR PERFORMANCE APPRAISAL

Job knowledge Quality and quantity of an output Leadership abilities Dependability Co-operation

CHARACTERISTICS

Arranged periodically according to definite plan.

Continuous process. Basic purpose is to find out the output given

by employee. Systematic description of an employee’s job

relevant strength and weaknesses.

NEED OF PERFORMANCE APPRAISAL

To assess the training and development needs of an employee.

To effect promotions based on competence and performance.

To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

To determine whether HR programmes are effective or not.

BENEFITS

Improving Performance

Advantages/Benefits

Making correct decisions

Strategy and behavior

Minimizing dissatisfaction and turnover

Employee’s need

DESIGN APPRAISAL PROGRAMME

Formal vs informal Whose performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used?

METHODS

Approaches to appraisal can be classified in to two categories:

(i) Past oriented methods (ii) future oriented methods

PAST ORIENTED METHODS

Rating scale Check list Forced distribution method Forced choice method Critical incidents method Behaviorally anchored rating scaled Field review method Performance tests and observations

Rating scales:

simplest and most popular technique. it consists of several numerical scale

represents a job related performance criterion such as dependability, output, attendence, attitude, co-operation.

Each scale ranges from excellent to poor.

Checklist

a checklist of statements on the traits of the employee and his or her job is prepared in two columns- ‘yes’ column and ‘no’ column.

the evaluation is done by HR department. The HR dept. assigns some points to the

number of ‘yes’ and ‘no’ as well. On the basis of this final evaulation takes

place.

Forced distribution method

To measure performance appraisal for large number of employees is difficult.

To overcome this error the method helps the rater to distribute the rates on all points on the rating scale.

The method operates under assumption that employee performance level conforms to a normal statistical distribution.

Forced choice method

The rater is forced to select the statements which are readymade.

typical statements can be Learns fast - - - - - - - - - - - - works hard work is reliable - - - - - - - - - performance is

a good example for.

Critical incidents method

The approach focuses on certain critical behavior of an employee that make all the differences between effective and non-effective performance of a job.

such incidents are recorded by the superiors as and when they occur.

Behaviorally anchored rating scales (BARS)

here, the rater is expected to indicate which behavior on each scale best describe an employee’s performance.

Descriptive statements varying from the least to the most effective.

Field review method

Appraisal by someone outside the department usually from the corporate office or HR department.

Used for making promotional decisions at managerial level.

Performance tests and observations

In the case of limited no. of jobs, employee assessment done by knowledge or skills.

Test may be of paper and pencil or demonstration of skills.

FUTURE ORIENTED METHODS

Management by objectives Psychological appraisal 360 degree feedback

Management by objectives

Concept given by Peter F. Drucker . MBO is not applicable to all jobs in an

organization. For example assembly line work.

those workers has so little job flexibility that the performance standards and objectives are already determined.

MBO is useful with managerial personnel and employees who have a wide range of flexibility and self control in their jobs.

Psychological appraisals

Full time psychologists are employ in large organizations. They assess employee’s future potential and not the past performance.

It normally consists of interviews, psychological tests, discussions with supervisors and a review of other evaluations.

After that psychologists write an evaluation of the employee’s intellectual, emotional, motivational and other related characteristics that suggests individual performance and predict future performance.

the evaluation done for the specific job opening for which the employee has been considered.

As this approach is slow and also costly it used only for bright employees.

360 degree feedback

The 360 degree evaluation is understood as systematic collection of performance data on an individual or group, derived from a number of stack holders.

Enables an employee to compare his perception about self with other’s perception.

Provide formalized communication link between an employee and his or her customers.

effective in identifying and measuring interpersonal skills, customer satisfaction, and team building skills.