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Performan Appraisal ance

Performanc Appraisal nce 

Performance Appraisal (PA) refers to all those isal procedures that are used to evaluate the us personality performance potential of its group members up   

Objectives of Perfo rformance Appraisal
Provide a basis for promo motion/ transfer/ termination: Identify those employe who deserve promotion oyees Or those who require lateral shift (transfer) or re l termination PA is used for career planning er p

Objectives of Perfo rformance Appraisal

yEnhance employees¶ eff s¶ effectiveness by helping to identify their strengths and weaknesses and ths an yInform them about expected levels of performance expe y If employees understan their roles well, they are rstand likely to be more effective on the job fective

Objectives of Perfo rformance Appraisal
Identify training and develo evelopment needs:

Identifying training and development needs of employees d dev

is necessary to prepare them for meeting challenges in e

their current and future employment emp

Objectives of Perfo rformance Appraisal

Aid in designing training and development programs: ing a

Identifying skills required to be developed would help ired t

in tailor- making training and development programs ng an

Objectives of Perfo rformance Appraisal

Remove work alienation: Counseling Employees n: Co

corrects misconceptions whi might result in work s which

alienation

Objectives of Perfo rformance Appraisal

Remove discontent: Identifying and removing factors Ident

responsible for workers¶ discontent would motivate rs¶ di

them for better work perfor erformance

Objectives of Perfo rformance Appraisal

Develop inter-personal relationships: Relations between l rela superior - subordinate can be improved through b realization that each is dependent on the other for better depe performance and success ess

Objectives of Perfo rformance Appraisal
Aid wage administration: Performance appraisal can help tion: in development of scientifi basis for reward allocation, ientific wage fixation, incentives ives

Improve communication: Performance appraisal serves as tion: a mechanism for communi munication between superiors and subordinates d sub

Process of Perfor formance Appraisal

Establish Performance Sta e Standards

}Performance standards s rds serve as benchmarks against which performance is measured mea

}Standards should relate to the desired results of each late t job

Process of Perfor formance Appraisal
Communicate the Standard ards 

Performance appraisal involves at least two parties, l in the appraiser who does the appraisal and the st ormance is being evaluated appraisee whose perform

Process of Perfor formance Appraisal

Communicate the Standards The appraiser should prepare job descriptions clearly; help re j

appraisee set his goals and targets; analyse results objectively tar offer coaching and guidance to appraisee whenever required e and reward good results

The appraisee should be very clear about what he is doing and ry why

Process of Perfor formance Appraisal

Measure Actual Perform ormance Performance measur sures, to be helpful must be easy to use, reliable and must report on the le critical behaviors that determine performance tha

}

Measure Actua Performance ual 

Performance measures may be objective or res subjective 

Objective performance measures are indications of ce job performance that can be verified by others tc and are usually quantit ntitative

Measure Actua Performance ual 

Subjective performance measures are ratings that are ce m based on the personal standards or opinions of those sta doing the evaluation and are not verifiable by others nd

Compare Actual performance with lp Standards and Disc iscuss the Appraisal

}

Actual performance may be better than expected m and sometimes it may go off the track ay

}

Whatever be the cons nsequences, there is a way to communicate and disc iscuss the final outcome

Taking Corre rrective Action 

Corrective action is of two types One puts out the fires immediately ires Other strikes at the root of the problem ro permanently  

Performanc Criteria ance 

In order to be effective, the criteria for performance he appraisal should be genuine related to success / failure in inely the job and should be amen enable to objective judgement 

MBO is an example of perfor rformancerformance-based appraisal approach that involves settin objectives and comparing tting performance against those objectives eo

Performanc Criteria ance

Objectives give greater freedom to both er management and the employees in deciding em how performance is to be measured b

Benefits of Perfor formance Appraisal
For the appraisee 

Better understanding of h role in the organization his what is expected and wh needs to be done to meet what those expectations 

Clear understanding of hi strengths and weaknesses f his to develop himself into a better performer in future

For the appraisee ea 

Increased motivation, job satisfaction, and self, jo selfesteem Opportunity to discuss w ss work problems and how they can be overcome Opportunity to discuss a ss aspirations and any guidance, support or training need to fulfil those aspirations eeded Improved working relat lationships with supervisors   

Benefits of Perfor formance Appraisal
For the Management 

Identification of perfor rformers and non-performers nonand their development towards better performance ent 

Opportunity to prepare employees for assuming are higher responsibilities ies

For the Management Ma 

Opportunity to improve c e communication between the employees and managem gement 

 

Identification of training and development needs ng Generation of ideas for improvements r im Better identification of potential and formulation of f po career plans

Benefits of Perfor formance Appraisal
For the Organization 

Improved performance throughout the organization ce Creation of a culture of continuous improvement and success  

Conveying the message that people are valued age

Performance Appr praisal - Individual Evaluation Methods ion 
      

Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale ed Forced choice method d MBO

Performance Apprais - Multiple Person aisal Evaluation Methods ion 

Ranking Paired comparison Forced distribution   

Other methods 

Performance tests Field review technique ue 

Confidenti Report ntial

Descriptive report 
 

Prepared at the end of the year Prepared by the employ s immediate supervisor loyee The report highlights th strengths and weaknesses of the employees 



Prepared in Governmen organizations ent Does not offer any feed eedback to the employee

Essay Evaluation Ev 

The rater is asked to express the strong as well as ex weak points of employe s behavior oyee The rater considers the employee s : he 
    

Job knowledge and poten tential Understanding of compan s programs, policies, objectives etc pany Relation with co-workers and supervisors coers Planning, organizing and controlling ability nd Attitude and perception n

Essay Evaluation Ev 

This method has the following limitations: ef 
  

Highly subjective Supervisor may write biased essay b Difficult to find effectiv writers tive A busy appraiser may write the essay hurriedly without yw assessing properly the actual performance of the worker ea If the appraiser takes a long time it becomes uneconomical s from the view point of the firm t 

Critical Incide Technique ident 

Manager prepares lists of statements of very effective ists and ineffective behavio of an employee avior 

These critical incidents represent the outstanding or nts poor behavior of the employees ee 

The manager periodica records critical incidents of dically employee s behavior r

Critical Incide Technique ident
Example: 

July 20 - Sales clerk patie atiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the , pr customers problem 

July 20 - The sales assist istant stayed 45 minutes beyond his break during the busiest part of the day. He failed to st answer store manager s call thrice. He is lazy, negligent, c stubborn and unintereste in work sted

Critical Incide Technique ident  



Limitation of this techniq nique are:
Negative incidents may be more noticeable than positive incidents. mo Supervisors have a tendency to unload a series of complaints about yt incidents. Results in very close supervisi ision which may not be liked by the employee. The recording of incidents ma be a chore for the manager ay concerned who may be too busy or forget to do it. bu  

Chec ecklist 

A checklist is a set of object ectives or descriptive statements about the employee and his behavior. 

Under weighted checklist, va , value of each question may be weighted. Example: Is the employee really intere terested in the task assigned? Yes / No 

 

Is he respected by his collea lleagues? Yes / No

Graphic Rating Scale Ra 

A form is used to evaluate the performance of the te t employees 

A variety of traits may be used in this device, the most eu common being quality and quantity of work nd 

Easy to understand and use use. Permits statistical tabulation of scores of employees tion 

Behaviorally Anch chored Rating Scale
Combination of rating scale and critical incidence sc 

Steps: 
   

Collect critical incidents nts Identify performance dimensions d Reclassification of incid cidents Assigning scale values to incidents st Producing the final inst strument

Forced Choi Method hoice 

This method uses several sets of paired phrases, two of al s which may be positive and two negative nd 

The rater is asked to indica which of the four phrases is icate the most and least descript riptive of a particular worker 

Favorable qualities earn plus credit and unfavorable ones plu earn the reverse

Management by Objectives (MBO) 

MBO emphasizes collect ectively set goals that are tangible, verifiable, and measurab rable 

 

Focuses attention on goals rather than on methods go Concentrates on Key Result Areas (KRA) Re Systematic and rational technique that allows al management to attain maximum results from available nm resources by focusing on achievable goals

Key Elemen Of MBO ents 


Arranging organizational goa in a means-ends chain goals meansEngaging in joint goal setting ting 

This process has the follo ollowing steps: 
  

Identify KRAs Define expected resul sults Assign specific respon ponsibilities to employees Define authority and responsibility relationship dr 



Conducting periodic progress review ress Conducting annual performa mance review

Multiple Person Evaluation Methods Ev
Ranking method 

The evaluator rates the emp mployee from highest to lowest on some overall criteria

Paired comparison method 


Each worker is compared with all other employees in a group wi For several traits paired com omparisons are made, tabulated and then rank is assigned to eac worker ach This method is not applicabl when the group is large able 

Forced Distribu ibution Methods 

The rater is asked to appraise the employee according to ise predetermined distribution sc scale. 

Two criteria used for rating are: job performance and g ar promotability. 

A five point performance scal is also used without mentioning cale any descriptive statements. . 

The worker is placed between two extremes of good and bad een performance.

Group Ap Appraisal 



Employee is appraised by a group of appraisers. ed The group consists of f 


Immediate supervisor of the employee ro Other supervisors who have close contact with the oh employee s work. 



Manager or head of the departments. he Consultants or Clients s

Field Review Technique iew 

The appraiser goes to the field and obtains the information about work performance of the rk p employee by way of ques uestioning the said individual, his peer group, and his s is superiors

360o Apprai raisal System 

It is a systematic collection and feedback of ion performance data on an individual or group, derived in from a number of stakeho eholders 

Data is gathered and fed back to the individual db participant in a clear way designed to promote yd understanding, acceptance and ultimately behavior nce

Appraisal Interview and Feedback - Let the an Employee Know Where He Stands W 

To help employees do a better job by clarifying what is b expected of them 



To plan opportunities for d or development and growth To strengthen the superio -subordinate working relationship riorrior by developing mutual agr agreement of goals 

To provide an opportunity for employees to express nity themselves on performan related issues ance

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