It is a process of identifying, measuring & Developing the performance of Human Resources in an Organization



It is an ongoing process of evaluating employees performance. Reviewing employees performance overtime

Step 1

PA Process

Job Analysis

Org. Mission & Objectives

Step 2 Step 4

Conduct Formal PA

Develop Standards & Measurement methods, Communication

Step 3 Informal PA Coaching & Discipline

Characteristics of PM Tools

1 Valid & Reliable 2 Acceptable & Feasible 3 Based on Mission & Objectives

Purpose of PA


2 Decision Making(Evaluation)
3 Motivating (Developing)

What to Assess?

1 Trait Appraisal 2 Behavioral Appraisal 3Result/Outcome Appraisal

Who should Rate?

1 Supervisors 2 Peers 3 Subordinates 4 Self 5 Customers 6 360 Degree Evaluation

Appraisal Methods

Critical Incidents


Narrative Method



Ranking Method

Key Result Areas

KRAs refers to general areas of outcomes or outputs for which a role is responsible

Importance of KRAs

•Clarifying Roles of Individuals •Alignment with Strategies •Focus on Result •Set Goals & Objectives •Prioritize Results •Communicate Purpose •Monitor their Performance

KRA Process

•Listing Day to Day Activities
•Each Activity---why to do this? •Identify KRAs from Why •Share KRAs with those they Report

Result Based Management

RBM Focus on Reviewing and Realigning system so that organization Develop a linkage between organizational outcomes & performance outcomes


1 Organizational Goals & Performance

2 Realigning Structure & Policies.
3 Organizing Development Activities

HR Cycle






Strategic Performance Measurement and the Balance Scorecard (Strategy Map} Financial
Goals, Earnings, Sales, Growth

Customer Goals
Satisfaction, better staff response to customers Needs

Operations Goals
Staff apply their Competencies & strategic awareness

Learning & Innovations Goals
Staff competencies, Strategy awareness


A movement to a position in which A movement to a positionin which responsibilities responsibilities and presumably , prestige are and presumably , prestige are increased’ increased.

Purpose / Objective of Promotion:

• To recognize an individual’s performance and reward for their work. • To put the employees in a position where they will be of greater value to the company. • To promote job satisfaction among the employees and give them an opportunity for unbroken continuous service.

 To build up morale , loyalty and a sense of belonging on the part of the employees.  To demonstrate effective career development plans.  To attract suitable and competent employees for the organization.

 To create among employees a feeling of contentment with their present conditions and encourage them to succeed in the company.

Types of Promotion:




Multiple Chain


Promotion Policy

Each organization should strike a balance between the internal sources of personnel promotion and external sources of recruitment

Between merit and ability as against length of service on the other.

Promotion Policy
1) It should have consistency and related

to the career planning.
2) It should be fair and impartial. 3) It should be a planned activity , so that there is no phenomena of ‘bunching’ or no period of ‘ promotional drought’.

4 Clarity- whether vacancies are to be filled from within an organization or by recruitment from outside.

5 Establish some type of formal and systematic promotional channels. 6 Preparing employees for advancement, through the provision of some training. 7 Communicating the policy either in the form of manual or in the form of a set of standing orders or policy guidelines. 8 Detailed personnel and service records should be kept ready.

Promotion System:

• • • • • •

Clear cut line of future advancement, Promotion Criteria Detailed personnel records, Specific promotion plans , Identifying promotion able individuals and Centralized co-ordination of promotion function”
Promotion Criteria :- Seniority v/s Merit.

Seniority v/s Merit.

Seniority refers to the length of service in the company or in its plants or in its departments or in a particular position. Under this method of promotion , the promotion goes to the senior-most person , provided he is fit for the job.

Seniority v/s Merit.

Promotion on Merit will be given to a qualified Person in recognition of their performance .This is not based on seniority. This method is an incentive for a performing employees.

Merit Based Promotion- benefits

•No Favoritism •Workplace Harmony •Motivational Boost •Reward for Ability •Training for Advancement

Practices in India.
Seniority & Merit Both

PSU –It is Seniority Pvt Sector=Merit mostly
Developing country - Capabilities

10 Strategies of Getting Promoted

1 Developing Mentoring Relationship 2Quantify Results 3 Practice Self Promotion 4 Establish Bond with the Boss 5 Acquire New Knowledge & Skill 6 Build your Network 7 Ask for more Responsibilities 8 Act Professionally 9 Be a team Player 10 Create Opportunities

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