Professional Documents
Culture Documents
It was remarkable and memorable experience undergoing the training at Luminous Teleinfra Ltd.
Gagret during the training work.
The Training that I undertook bears the imprint of many people, so I take this opportunity to
express my deep sense of gratitude toward them for helping me to complete the training.
I am highly thankful to Mr. Vikas Rana(Asst. Manager) and Mr. Rahul Thakur (Executive-
I.T.) for providing me the information about the project. Their valuable guidance and support me a
lot to work on my training.
• WELCOME FRIENDS
• This presentation has been designed as an information guide for you to have a better
understanding of the organization and to help you to grow the SAR and thereby contribute
to its growth.
• A very warm welcome again, we look forward to a happy, fruitful and long professional
association with you.
• Best regards.
HR Dept.
Company Profile:
• Luminous presently exports its Power Products and Batteries to 32 countries worldwide and is
actively looking for association with reputed channel partners in many countries.
• Its Global Technology Centers located in India, United States & China deliver
cutting edge technology that go into every Luminous Product.
• Luminous has been consistently winning awards & accolades for the excellent
reliability of its products & market leadership. Luminous is now poised for a very
rapid growth at over 100% CAGR (Compounded Annual Growth Rate) for the next
few years.
VISION
MISSION
• We will constantly listen and respond to our End Customers, Channel Partners and
Suppliers.
• All our products and processes will be aligned to meet the end customer needs.
• We will be a lean and flexible organization that quickly and correctly responds to business
opportunities.
• All our employees, suppliers and channel partners must make a measurable, positive
contribution towards the success of our business.
• All aspects of our business will be quantified and performance measurement will be
directly linked to business decisions, compensation and rewards.
• We will create a work environment where employees are encouraged and rewarded for
innovation and continuous improvement.
FINANCIAL POSITION:
POWER ELECTRONICS:
Luminous R&D team of over 25 bright engineers located in the India and United States are
constantly working towards developing cutting edge designs in the domain of :-
Our teams are supported by our well organized knowledge base build through over 200 man
years of development work.
Our team of over 12 experienced engineers based in India and United States are working
towards developing improved Deep Cycle Lead Acid Batteries and other alternate energy
storage products, required to complete our Packaged Power offerings and to meet the needs
of Inverters and Solar Power applications. We also develop rugged, long lasting, vibration
resistant Lead acid Batteries for Automotive applications.
Our team is supported by a well organized knowledge base built through over 150 years of
R&D work.
PACKAGED POWER
This group is an application Engineering group, which draws its members from both the
power Electronics and Battery R&D teams.
This group is based in India and is focused on improving the compatibility of the Battery or
stored energy source with the Power Electronics Sub systems e.g. Inverters, Chargers etc.
The group develops and engineers application specific products that best meet the total
power backup needs of these customers.
This is an application specific engineering group, which is a part of the Power Electronics
R&D. This group is based in India and is focused on developing Balance of Systems
components for Solar, Wind, Fuel Cells and Hybrid Renewable Energy Systems. Recently we
have added Solar PV modules in our product portfolio.
• Power control and Management panels with up to four different energy sources like
Solar, Wind and D Solar, Wind and Diesel etc.
PERFORMANCE APPRAISAL SYSTEM AT
Human Resource (or personnel) management, in the sense of getting things done through people, is
an essential part of every manager’s responsibility, but many organizations find it advantageous to
establish a specialist division to provide an expert service dedicated to ensuring that the human
resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of any senior management team
would disagree with. Yet, the reality for many organizations are that their people remain under
valued, under trained and under utilized.
Performance Appraisal is the process of assessing the performance and progress of an employee or
a group of employees on a given job and his / their potential for future development. It consists of
all formal procedures used in the working organizations to evaluate personalities, contributions and
potentials of employees.
PREFACE
Managing human resources in today’s dynamic environment is becoming more and more complex
as well as important. Recognition of people as a valuable resource in the organization has led to
increases trends in employee maintenance, job security, etc
My research project deals with “Performance Appraisal as carried out at Bhart Sanchar Nigam Ltd.
(BSNLK)”. In this report, I have studied &evaluated the performance appraisal process as it is
carried out in the company.
The first section of my report deals with a detailed company profile. It includes the company’s
history: its activities and operations, organizational structure, etc. this section attempts to give
detailed information about the company and the nature of it’s functioning.
The second section deals with performance appraisal. In this section, I have given a brief
conceptual explanation to performance appraisal. It contains the definition, process and
significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate the process of
performance appraisal at Bharat Sanchar Nigam Ltd.; this section also contains my findings,
conclusions, suggestions and feedback.
The forth and final section of this report consists of extra information that I related to the main
contents of the report. These annexure include some graphs and diagrams relating to the company,
graphs relating to the research study and important documents upon which the project is based.
Human Resource (or personnel) management, in the sense of getting things done through people, is
an essential part of every manager’s responsibility, but many organizations find it advantageous to
establish a specialist division to provide an expert service dedicated to ensuring that the human
resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of any senior management team
would disagree with. Yet, the reality for many organizations are that their people remain under
valued, under trained and under utilized.
The market place for talented, skilled people is competitive and expensive. Taking on new staff
can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’,
product / process / organization knowledge and experience for new staff members.
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
Recruitment
The process of recruitment begins after manpower requirements are determined in terms of quality
through job analysis and quantity through forecasting and planning.
Selection
The selection is the process of ascertaining whether or not candidates possess the requisite
qualificationns, training and experience required.
Induction
a) Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.
Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in working organizations and potential of employees.
According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating of
an employee’s excellence in matters pertaining to his present job and his potential for a better job.
Performance appraisal is a formal system that evaluates the quality of a employees performance.
An appraisal should not be viewed as an end in itself, but rather as an important process within a
border performance management system that links :
Operational Objectives
Day to Day performance
Professional Development
Rewards & Incentives
It is a systematic evaluation of the individual with respect to his or her performance on the job &
his or her potential for development.
Performance appraisal is a formal, structured system of measuring & evaluating an employees job
related behaviours & outcomes to discover how & why the employee is presently performing on
the job & how the employee can perform more effectively in the future so that the
employee,organization,& society all benefits.
The history of performance appraisal is quite brief, its root in the early 20TH century can be traced
to Taylors pioneering time & motion studies, But this is not very helpful for the same may be said
about almost everything in the field of modern human resources’ management
During the first world war appraisal concept was adopted by US army which was in the form of
merit rating. It was man to man rating system for evaluation of military personal from the army
this concept enter the business field was restricted to hourly paid worker .during 1990 relation
wage structures for hourly paid worker were adopted in the industrial units & each worker was
used to be rated in comparison to other for determining wages rates. This system was called merit
rating.
The Process was firmly linked to materials outcomes. If an employee’s performance can found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to developmental possibilities of appraisal. If was felt that a
cut in pay ,or a rise, should provide the only required impetus for an employee to either improve or
continue to perform well. sometimes this basic system succeeded in getting the results that were in
tented, but more often than not, it failed.
For Example, Early motivational researchers were aware that difficult people with roughly equal
work abilities could be paid the same amount of money & yet have quite different levels of
motivation & performance.
These observations were confirmed in empirical studies. Pay rates were important yes but they
were not the only element that had an impact on employee performance. It was found that other
issues, such as morale and self esteemed, could also have a major influence.
As a result ,the traditional emphasis on reward outcomes was progressively rejected. IN the 1950s
in the United States, the potential usefulness of appraisal as tool for motivation & development
was gradually recognized. The general model of performance appraisal, as it is known today,
began from that time.
Modern Appraisal
Enforcement appraisal may be defined as a structured formal interaction between a subordinate and
supervisor, that usually takes the form of a periodic interview (annual or semi annual),in which the
work performance of the subordinate is examined& discussed, with a view to identifying the
weaknesses & strength as well as opportunities for improvement and skill development.
In many organizations-but not all-appraisal results are used, either directly or indirectly, to help
determine reward outcomes .that is, the appraisal; results are used to identify the better performing
employees who should get the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performance who may require
some form of counseling, or in extreme cases, demotions, dismissed or decreases in pay.
(organizations need to be aware of laws in their country that might restrict their capacity to
dismissed employees or decrease pay)
Whether this is an appropriate appraisal-the assignment and justification of rewards & penalties-is
a very uncertain & contentious matter.
CHARACTERISTICS
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged periodically
according to a definite plan.
5. The main purpose of Performance Appraisal is to secure information necessary for making
objective and correct decision an employee.
A) PRIMARY OBJECTIVE
1) To study the performance appraisal system of luminous power technology pvt. Ltd.
2) To study the transformation of performance appraisal from traditional to modern.
3) To get an insight into the relative importance of performance appraisal in
organization.
4) To study the effectiveness of performance appraisal system in organization.
5) How can company use performance appraisal as an effective tool to achieve
organizational effectiveness & effiency.
B) SECONDARY OBJECTIVE
LIMITATION OF STUDY:
In order to obtain accurate & valid performance appraisals, appraisal measures should be
tailored to scientific job or “job family” (Group of similar jobs).An evaluation of factors in
the work environment which help or hinder performance is also recommended. this ensures
that realistic expectations are set for employee performance. And is also likely to increase
the perceived fairness & acceptability of performance appraisal.
. Ensuring that appraisers have adequate knowledge & direct experience of the employee’s
performance.
Salary Increases
Performance appraisal plays a role in making decision about salary increases. Normally salary
increases of a employee depends upon on how he is performing his job. There is continuous
evaluation of his performance either formally or informally. This may disclose how well an
employee is performing & how much he should be compensated by way of salary increases.
Promotion
Performance Appraisal plays significant role where promotion is based on merit & seniority.
Performance appraisal discloses how an employee is working in his present job & what his strong
& weak points are. In the light of these ,it can be decided whether he can be permoted to the next
higher position.
Performance Appraisal tries to identify the strength & weakness of an employee on his present job.
This information can be used for devising training & development programmes appropriate for
overcoming weakness of employees.
Feedback
Performance Appraisal provides feedback to employees about their performance. A person works
better when he knows how he is working. This works in two ways, firstly the person gets feedback
about his performance. Secondly ,when the person gets feedback about his performance, he can
relate his work to the organizational objectives.
Pressure on Employees
Performance Appraisal puts a sort of pressure on employees for better performance. If the
employees are conscious that they are being appraised in respect of certain factors & their future
largely depends on such appraisal.
Other
a) Identify systematic factors that are barriers to, or facilitators of, effective performance.
b) To confirm the services of probationary employees upon their completing the probationary
period satisfactorily.
c) To Improve communication, performance appraisal provides a format for dialogue between
the superiors & their subordinates, and improve understanding of personal goals &
concerns. This can also have the effect of increasing the trust between the rater & the rate.
d) To determine whether the HR programmes such as selection, training, & transfer have been
effective or not.
LIMITATIONS
1. Errors
2. in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding
what to assess. In essence, four key dimensions of performance should be considering in
performance appraisal.
To ensure the performance criteria are relevant to work practice & acceptable to appraisers and
employees.
i) Base the performance criteria on an up to date job description.
ii) Develop criteria in consideration with appraisers & employees.
Clear and explicit links between performance appraisal & job description will ensure the relevance
of the appraisal.if a detailed job description is not available or is out of date ,it is strongly
recommended that an accurate job description be developed prior to conducting a performance
appraisal.
Linking performance appraisals with job descriptions can help to focus the appraisal process on
the key competencies, behaviors, & outcomes associated with a particular role or position. it
can also be useful to consult with employees to:
Conduct assessments
Plan interventions
Manage cases
Liaise with and refer to other providers
Keep up to date service records & case notes
Write reports
• Identify how these key competencies, behavior, & outcomes can fairly and accurately
assessed.
Employees are more likely to accept & be satisfied with the appraisal system if they participate in
the development of appraisal criteria and measures, and in the process of conducting appraisal
It is also important that employees perceive the appraisal system to be equitable and fair.
Step 2: Develop Appraisal Measures
Once clear and specific performance criteria have been developed, the next step is to decide how to
assess employee’s performance. It is recommended that a structured and systematic approach is
taken to assessing performance. Problem that arise when an unstructured “Black sheet” approach is
used include :
Many workplaces use a generic rating form for all employees irrespective of their role or
position within the organization, Although this approach can save time and minimize cost, the
accuracy and relevance of appraisal may be significantly diminished. The “one size fits all”
approach of generic measures may overlook important performance criteria that are relevant to
particular jobs, and may also include criteria that are irrelevant to other.
Where time and other resources permit, it is more appropriate to construct appraisal formats
tailored to specific jobs or ‘families’ of jobs. If the development of job- specific (i.e..individually
tailored) appraisal formats is beyond the resource capacity of the organization, an alternative
would be to develop two groups of criteria:
• Core competences that have applicability to the performance appraisal of all employees
Within the organization.
• Additional competences applicable only to some jobs and included in the performance.
Appraisal if relevant.
A basic distinction between different type of appraisal measures concerns the use of objective or
subjective criteria.
Objective assessment of work performance
Objective measures can be relatively quick and easy to obtain (given good organizational
record-keeping). However, it can be unwise to place too much emphasis on these types of
objective measures. An exclusive focus on result/outcome may mask factor that impact on
employee’s performance that are beyond their control (e.g., client workload).
Many employees in the organization operate with a relatively high degree of autonomy. This
combined with the heavy workload of most managers/supervisors, may limit opportunities to
conduct regular observation of employee’s performance. In Addison, perception of ongoing
monitoring may foster a sense of surveillance which can damage staff morale.
A more suitable approach may be to keep critical incident reports that note specific examples of
both excellent and unsatisfactory performances. Supervisors can also encourage employees to keep
track of their own performance record such as emails or letters that commend them on their
achievements.
Traditionally, it has been the sole responsibility of managers / supervisors to assess performance.
However, other organizational members can be a valuable source of information as they are likely
to have exposure to different aspect of a employee’s performance. This approach is known as 360-
degree feedback. For instance, coworkers can provide valuable information on teamwork skills,
and subordinates can provide useful on leadership style.
There are many advantages to obtaining feedback on performance from sources other than
supervisors or managers. Key benefits include:
• Accuracy and reduced bias (incorrect information from one source can be corrected from
another.
• Increased likelihood that employees will provide the performance appraisal system to be
fair and accurate reflection of their performance(compared to relying on supervisors rating
alone)
If time and resources are limited, it is recommended that supervisors’ appraisals be conducted in
conjunctions with self assessment. Including self-assessment as part of appraisal process is likely
to enhance employee’s commitment to, and satisfaction with, the appraisal process. It also provides
employees with an opportunity to identify barriers and facilitating to effective performance in their
work environment.
Five different sources of performance appraisal information are considered here:
i) Manager/supervisor appraisals
ii) Self appraisals
iii) Coworker appraisals
iv) Subordinate appraisals
v) Client appraisals
i) Manager and supervisor appraisals
Manager/supervisors play a central role in the appraisal process, and should always be one of the
main appraisers. In essence, manager, supervisors have to role in performance appraisal:
1.”Judge”: assessing performance
2.”Coach”: providing constructive feedback and identifying areas for improvement.
Performing both roles simultaneously can be difficult. Employees may be reluctant to admit
areas for improvement if performance assessment is linked with desire outcome such as pay,
promotion or opportunities to work in desired areas. One solution is to separate the judge and
coach role by conducting separate appraisal meeting.
ii) Self Appraisals:
The process of evaluating one’s own performance to increase employees’ commitment to the
appraisal process, perceptions of appraisal fairness and satisfaction with the appraisal process.
Self-appraisal can also be useful for identifying for development. Not surprisingly, self –appraisal
are usually biased toward leniency. Strategies to increase the accuracy of self appraisal include:
a) Using clear definition of performance criteria linked to specific, observable behaviors.
b) Informing employees that their rating will be checked and compare to other sources of
c) Appraisal (i.e., for accuracy)
d) Ensuring employees receive regular feedback on their performance
It is recommended that self appraisal are used for professional development purposes, rather than
for making administrative decisions(i.e, pay increases, promotion).
iii) Coworker appraisal
Coworker can provide valuable feedback on performance, particularly where teamwork occurs.
Coworkers are often aware of different aspect of a employee’s performance that managers versus
supervisor may not have the opportunity to observe. In addition, as there is usually more then one
coworker who rates a worker’s performance, their evaluation tends to be more reliable. Coworker
evaluation, however, may be bias towards those individuals most well linked in an organization
(i.e., friendship bias). Further more, coworker appraisal may have a negative impact on teamwork
and cooperation if employees are competing with one another for organizational incentives and
rewards. It is recommended that coworker appraisals are used for professional development rather
then administrative decisions.
iv)Subordinate appraisals
v)Client appraisal
Client may also offer a different prospective on a employee’s performance, particularly for jobs
that require a high degree of interaction with people. For example, client appraisals can be a
valuable source of feedback regarding the quality of service provision (e.g., the quality of
interaction, degree of empathy, level of support, degree of professionalism).
Organizations often have performance contracts that specify goals and deliverables for client
outcomes. Whilst it is important that organizational goals and deliverables are reflected in the
appraisal criteria for individuals and teams, it is recommended that particular care be taken if in
corpora ting client outcomes.
Relying on client outcome as an indicator of performance can have undesirable effects due to the
complex and sensitive nature of the work. A range of factors may influence client outcomes, many
of which are outside the control of an individual employee. It is rare for a successful (or otherwise)
outcome to be the sole result of one person efforts. This makes client outcomes a poor reflection of
the quality of treatment provided by the employee. For Example, “Good” employee performance
will not always bring about client improvements, and client relapses may not be due to “poor
“employee performance.
In addition to considering client outcomes, it may also be beneficial to focus on employee’s skills
and abilities in providing services per se (i.e., independent of client outcomes).
Strategies to support appraisals and enhance appraisal accuracy
Rating another person’s performance is not an easy task, particularly with complex jobs or
performance criteria. Strategies to support appraisers and increase the likelihood of accurate
assessment include:
• Providing practical training and in rating techniques, which includes opportunities to
practice appraising performance and providing feedback.
• Limiting the assessment to performance criteria that an appraiser training has
observed/experienced in regard to the employee.
• Providing structured assessment tools with clear explanation regarding the criteria to be
assessed and performance standard.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.
This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable.
Typically, a graphic scale assesses a person on the quality and quantity of his work (is he
outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary
with the job but usually include personal traits like reliability and cooperation. It may also include
specific performance items like oral and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or central
administrative staff meets with small groups of raters from each supervisory unit and goes over
each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the
group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. .
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a third
party.
MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance goals.
Within the past five or six years, MBO has become something of a fad and is so familiar to most
managers that I will not dwell on it here.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly useful.
Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to
which a host of additional facts and impressions must somehow be added. There is no single form
or way to do this.
The two most effective methods are alternation ranking and paired comparison ranking.
1. “Alternation ranking”:
Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees than
to rank them, an alternation ranking method is most popular. Here subordinates to be rated are
listed and the names of those not well enough to rank are crossed. Then on a form as shown below,
the employee who is highest on the characteristic being measured and the one who is the lowest are
indicated. Then chose the next highest and the next lowest, alternating between highest and lowest
until all the employees to be rated have been ranked.
2. “Paired-comparison ranking”:
This technique is probably just as accurate as alternation ranking and might be more so. But with
large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or
more people are asked to make independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-of-merit rankings for salary
administration purposes.
ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of prediction be
made most validly and most fairly?
Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.
The feedback is generally used for training and development, rather than for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties – peers,
supervisors, subordinates and customers, for instance – complete survey, questionnaires on an
individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not
given just by the next manager up in the organizational hierarchy, but also by peers and
subordinates. Appropriates customer ratings are also included, along with the element of self
appraisal. Once gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God."
Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee
meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The MBO
method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements
that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly observed
and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to use
MBO appraisal methods. They will need these skills during the initial stage of objective setting,
and for the purposes of self-auditing and self-monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid objectives may be
distorted to disguise or justify failures in performance.
Benefits of Performance Appraisals
Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
'rating errors'. These errors can seriously affect assessment results. Some of the most common
rating errors are: -
Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are
lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably
will reflect poorly on his or her own worthiness.
b) She/he may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the rate.
c) She/he may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.
Central tendency: - This occurs when employees are incorrectly rated near the average or middle
of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain
doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance influences
the evaluation of the entire performance of the individual. The halo error occurs when an employee
who works late constantly might be rated high on productivity and quality of output as well ax on
motivation. Similarly, an attractive or popular personality might be given a high overall rating.
Rating employees separately on each of the performance measures and encouraging raters to guard
against the halo effect are the two ways to reduce the halo effect.
Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score
are given only to certain individuals or groups based on the rater's attitude towards them and not on
actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of
error.
Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior
exhibited by the rate during his early stage of the review period (primacy) or by the outcomes, or
behavior exhibited by the rate near the end of the review period (regency). For example, if a
salesperson captures an important contract/sale just before the completion of the appraisal, the
timing of the incident may inflate his or her standing, even though the overall performance of the
sales person may not have been encouraging. One way of guarding against such an error is to ask
the rater to consider the composite performance of the rate and not to be influenced by one incident
or an achievement.
Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably
influence current ratings. Past ratings, good or bad, result in similar rating for current period
although the demonstrated behavior docs not deserve the rating, good or bad.
a) Reporting Manager
Ø Discuss with the reporting managers on the behavioral traits of all the
employees for whom he / she is the reviewer
Ø Where required, independently assess employees for the said behavioral traits;
such assessments might require collecting data directly from other relevant
employees
Ø Presents the proposed Performance Rating for every employee of his / her
function to the Normalization committee.
d) HR Head
e) Normalization Committee
Ø Decides on the final bell curve for each function in the respective Business Unit
/ Circle
o What are the guidelines for setting the KRA’s for an employee?
o How does an employee write down his KRA’s for a particular financial year?
o How is the KRA score calculated for an employee on the basis of the targets sets
and targets achieved?
Ø THE PERFORMANCE RATING PROCESS: The rating process tries to explain the
four different types of rating that an employee can achieve i.e. EC, SC, C and PC. It also
explains the criteria, which is considered for awarding any of these ratings to the employee.
· Performs consistently and substantially above · Performs above expectations in all areas
expectations in all areas
· Achieves final score between 100-114%
· Achieves a final score greater than or equal to
115% • Versatile in his/ her area of operation
• Develops creative solutions and require
little / minimal supervision
· Consistently delivers on stretch targets
• Sets examples for others
· Is proactive
• Take ownership of own development
· Spots and anticipates problems, implements • Coaches others
solutions • Demonstrates business initiative
· Sees and exploits opportunities • Is self motivated
· Develops others
JASBIR SINGH
TAHEER AHMED JAFRI
KRISHAN KUMAR
DIBYENDU SETH
ASHWANI KUMAR
SURESH KUMAR
AMIT KUMAR
NIRZAL KUMAR
WEAKNESSES :
WEAKNESSES :