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3rd UNIT

PERFORMANCE APPRAISAL INTRODUCTION:


Performance appraisal is about employee performance and accountability.Performance appraisal,like every other HR function forms eventually a line responsibility,although involving the staff assistance and advice.It is an ongoing responsibility of the supervisor to determine how effectively subordinates are performing different tasks allotted to them in their position,to identify and correct their weak points and to recommend them on the basis of there potentialities for promotions to higher positions in the organization.

DEFINITION: According to Heyel,the process of evaluating the performance and


qualifications of the employees in terms of there requirements of the job for which he is employed,for purpose of administration including placement,selection,for promotions,providing financical reward and other actions which require differential treatment among the members of a group as distinguished from action affecting all members equally.

OBJECTIVES:
It seeks to provide an adequate feedback to each individual and his/her performance.

It purports to serve as a basis for improving or changing behavior towards more effective working habits. It aims at providing data to managers with which they may judge future job assignment and compensation. a. To judge the gap between the actual and the desired performance. b. To help the management in exercising organizational control. c. Helps to strengthen the relationship and communication between superior subordinates andmanagement employees.

d. To diagnose the strengths and weaknesses of the individuals so as to identify the training anddevelopment needs of the future. e. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

f. To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and developmen

PROCESS OF PERFORMANCE APPRAISAL


The process beings with the establishment of PERFORMANCE STANDARDS Standards are bench marks against which performance is measure. These standards should be clear and not vague and objective enough to be understood and measure. Standards should be discussed with the superiors to find out which factors are to be indicated on the appraisal form to appraise the performance of the employees.

Next step is to communicate these standards to the employees so that the employees learn as to what is expected of them.

Third step is measurement of performance. Measurement is done through ratings and scales available.

Fourth step is the comparison of actual performance with the standards. Employee is apprised and judged of his potential for growth advancement.

Fifth step is discussion of appraisal with employees, where good points, weak points and difficulties are indicated and discussed so that performance is improved.

Final step is the initiation of corrective action when necessary. Corrective action can be in the form of coaching, counseling, and training, problem solving.

METHODS/TECHNIQUES OF PERFORMANCE APPRAISAL


TRADITIONAL METHOD 1.STRAIGHT RANKING METHOD 2.PAIRED COMPARISON METHOD

MODERN METHOD
1.MBO 2.HUMAN ASSET ACCOUNTING

3.MAN TO MAN COMPARISON METHOD 4.GRADING METHOD 5.LINEAR RATING SCALE METHOD 6.FORCED CHOICE METHOD 7.FORCED DISTRIBUTION METHOD 8.CHECKLIST METHOD 9.FREE ESSAY METHOD 10.CRITICAL INCIDENT METHOD 11GROUP APPRAISAL METHOD 12.FIELD REVIEW METHOD

METHOD 3.ASSESSMENT CENTER 4.BARS

STRAIGHT RANKING METHOD: It is the oldest and simplest method, in which the man and his performance is considered as a single entity by the rater. It is effective where 10 or less numbers of individuals are to be evaluated. According to this procedure each individual is assigned such ranks as first,second,third so on..The rankings process may be facilitated by using small cards, that contain the names of the individuals who are being ranked.