Performance Appraisals

Purvish Shah - NAVIGATOR

Performance Appraisal
 The

systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to::• His present job • His potential for a better job

Purvish Shah - NAVIGATOR

Objectives Of Performance appraisal
 Estimate

gap between the actual and the desired performance.  Exercising organizational control.  Feedback to the employees regarding their past performance.

Purvish Shah - NAVIGATOR

 Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.  training and development. selection.NAVIGATOR .  To reduce the grievances of the employees. To judge the effectiveness of the other HR functions such as recruitment. Purvish Shah .

NAVIGATOR .::Appraisals Assist::  Employee Training Needs Assessment  Organizational Performance  Succession Planning  TQM  Change organizational Culture Purvish Shah .

NAVIGATOR .Process Establishing Standards Communicating Standards and expectations Measuring the actual performance Comparing with standards Providing feedback Corrective Actions Purvish Shah .

The appraisal format should be simple.NAVIGATOR . clear. easy to understand. motivating. Purvish Shah .Pre-requisites for Performance Appraisal  Documentation --continuous noting and documenting the performance  Standards / Goals --should be clear. fair and objective. time bound and measurable  Practical and simple format . achievable.

technique – An appropriate evaluation technique should be selected  Communication –Expected results should be communicated to the employees as well as the evaluators  Feedback – Should be developmental rather than judgmental  Personal Bias --evaluators should be trained to carry out appraisals without personal bias  Evaluation Purvish Shah .NAVIGATOR .

Purpose Of Performance Appraisal Others Mobility Deciding future goals Gaps T&D needs Payroll 0% 20% 40% 60% 80% 100% (A Survey of 100 Companies done by AC Nelsons) Purvish Shah .NAVIGATOR .

assistance and counseling)    Purvish Shah . demotions and transfers – 49% Other purposes – 6% (job analysis and providing superior support.NAVIGATOR .  Payroll and compensation decisions – 80% Training and development needs – 71%  Identifying the gaps in desired and actual performance– 76% Deciding future goals and course of action – 42% Promotions.

a part of Performance appraisal.NAVIGATOR   . helps to identify the hidden talents and potential of the individuals Purvish Shah . Potential appraisal.Performance Appraisals as Career Development ―Get paid according to what you contribute‖  Performance appraisal as Career Development leads to the recognition of the work done by the employees It is a link between the organizational goals and the employees’ personal career goals.

Purvish Shah .NAVIGATOR . A positive feedback motivates employees to identify individual career developmental plans Based on the evaluation. employees can develop :: • Their career goals • Achieve new levels of competencies • Chart their career progression   Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses.

NAVIGATOR .Approaches to Performance Appraisals Traditional approach  Traditionally. P. has been used as just a method for determining and justifying the salaries 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 Purvish Shah .A.

Traditional Approach…   A past oriented approach Focused only on the past performance of the employees  Did not consider the developmental aspects of the employee performance Purvish Shah .NAVIGATOR .

Modern approach  Performance appraisal processes are more formal and structured. This recognizes employees as individuals and focuses on their development. Apart from the routine HR Functions.NAVIGATOR .   Purvish Shah . Modern approach to performance appraisals includes a feedback process This improves the communication between superiorsubordinates The modern approach to is a future oriented approach and is developmental in nature.

NAVIGATOR .Balanced Scorecard  The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results. the four perspectives of balanced scorecard • Linking the measures to Employee Performance Purvish Shah .  The two basic features of the balanced scorecard are: • A balanced set of measures based on. achievements and financial measures.

NAVIGATOR . customer satisfaction. The time taken to deliver the products and services. acquiring new customers.The 4 key areas::  The financial measures – • • • • Profits. Number of customer complaints. the customer’s perspective about the organisation. improvement in quality etc. customer loyalty.  The customers’ measures – • • • • • • • Purvish Shah . increase in the market share. return on investments and other economic measures as a result of the actions taken.

NAVIGATOR .  The internal business measures – These are the measures related to the organization’s internal processes which help to achieve the customer satisfaction. • Infrastructure. • Innovations and improvements • Key competencies • Value added and the revenue per employee. • The long term and short term goals and objectives. The innovation and learning perspective – • organization's ability to learn. • Systems and the human resources. • Organizational processes and procedures. Purvish Shah .


NAVIGATOR . Modern      Methods Assessment Center Human Resource Accounting Behaviorally Anchored Rating Scales MBO 360 Degree Appraisals Purvish Shah .

NAVIGATOR .Appraisal as Employee Motivation Mechanism  Inaccurate Performance Review + Increased Salary = De-motivated Employee  Accurate Review + No Change in Salary = De-motivated Employee  Accurate Review + Increased Salary = Highly Motivated Employee Purvish Shah .

NAVIGATOR .Arguments Against Performance Appraisal • Disparities between the theory and its application • PA is a bitter process for most of the employees • Creates emotional pressures and stress for the employees • PA is often looked upon as a tool to control the employees by the superiors which dampen the intrinsic motivation of the employees. • PA process increases the dependency of the employees on their superiors Purvish Shah .

Government Organizations Etc Purvish Shah .NAVIGATOR . ….This obstructs the genuine feedback. approvals and discourages the spirit of creativity and initiative by employees and also Demotivates them …are conducted by managers who are often not trained to be appraisers.Performance appraisal… …. leading to incorrect and unreliable data regarding the performance of the employees Example:: BPOs’. process encourages accountability.

MANAGING WITHOUT PERFORMANCE APPRAISALS  The "appraisals and review meetings". Therefore.NAVIGATOR . inputs are encouraged and incorporated in the actions. continuous accountability and check can cause emotional stress for the employees. it is recommended to create such a work culture where • the employees are made responsible for their own performance and development • the manager’s / superior’s suggestions. Purvish Shah .

 Changing pay practices--Periodic cost of living increases. Teamwork. Reminding them about their personal goals  Creating an organization with a culture that • • • • Encourages creativity. Fosters innovative efforts and productivity. profit and gain sharing  Motivating people—Challenging work. tem bonuses. rewards on some accomplishments.NAVIGATOR . Reformulating strategic plans and assumptions but can be effectively put into place without the need of performance appraisals Purvish Shah .

Performance Appraisal For Employees at Different Levels For top level management  Degree of organizational growth and expansion  Extent of achievement of organizational goals  Contribution towards the society  Profitability and return on capital employed Purvish Shah .NAVIGATOR .

NAVIGATOR .For middle level managers  Performance of the departments or teams  Co-ordination with other departments  Optimal use of resources  Costs Vs. revenues for a given period of time  The communication with superiors and subordinates Purvish Shah .

NAVIGATOR .For front line supervisors  Quantity of actual output against the targets  Quality of output against the targets  Number of accidents in a given period  Rate of employee absenteeism Purvish Shah .

Rank and Yank Strategy or “Up or Out Strategy Team Performance Appraisal Purvish Shah .Global Trends In Performance Appraisal Program      The focus of the performance appraisals is turning towards career development Trend towards a 360-degree feedback system The problems in the performance appraisal processes are being anticipated and efforts are being made to overcome them.NAVIGATOR .

Points to be Remembered  What is the purpose of performance appraisals?  How should the self appraisal be used?  How should the ratings be given if there has been a change of supervisor or manager during the period of the appraisal?  How can input/feedback be collected for the appraisal process?  What if the employee refuses to agree or/and accept the review?  How do you deal with an average or a non-performer? Purvish Shah .NAVIGATOR .

NAVIGATOR .:::Don't let employees come into the Performance Appraisal blindly or leave blindly. without a sense of direction or accomplishment!::: Purvish Shah .

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