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Human Resource Development

Performance appraisal

Meaning
Method of evaluating the performance of employees in the work spot Performance rating, employee rating , employee performance review, personnel appraisal, performance evaluation, employee evaluation Job analysis set out requirements, which are translated into performance standards which in turn forms the basis of performance appraisal

Needs and objectives of Performance appraisal


Decisions regarding salary fixation Confirmation on service Promotion, transfer ,demotion Helps to review the performance-rectify performance deficiencies-set new standards of work Provides information which helps to counsel the subordinates To prevent grievances and indisciplinary activities

Needs and Objectives of performance appraisal


To create and maintain satisfactory level of performance To contribute to employee growth and debt. To facilitate fair and equitable compensation based on performance Provides information for making decisions regarding Lay off, retrenchment Performance appraisal determines whether HR programmes have been effective or not

Who are the Appraisers


A person with Thorough knowledge on job content One who observes the employee while performing the job One who knows the contents to be appraised Supervisors , Subordinates, Peers , Self appraisal, Customers ,Consultants 360 degree performance appraisal

When to appraise
Whenever the supervisor, superiors, managers, management feel it necessary Systematic appraisals

Uses of performance appraisal


Performance improvement Compensation adjustments Placement decisions Training and developmental needs Staffing process deficiencies Job design errors Equal employment opportunities Feedback to human resources

Methods
1.Graphic rating scale It is also called as linear rating scale or simple rating scale Compares individual performance to an absolute standards Judgments are recorded on scale Appraisers are supplied with printed forms It contains characters to be rated and scales average would be taken to find overall performance Points are assigned KPMG, DuPont, Unilever

2.Ranking Method
Employees are ranked from best to worst Lists the category of jobs Rater finds the employees with highest performance first Then finds the employees with lowest performance Then assigns the rank from the highest to the lowest Most easiest and inexpensive

Methods
3.Essay or free form appraisal Job knowledge, employees understanding of the company's policies, programmers, the employees relation with co-workers 4.Group appraisal-employee is appraised by group of appraisers 5.Confidential report-Govt. organizations Descriptive report-superior-not disclosed 6.Critical Incident method- list of statements effective and ineffective behavior of an employee-taken into consideration at the end

Methods
7.Checklists and weighted checklists Is the employee really interested in the task assigned to him Yes/No 8.BARS It is a combination of Rating Scale and critical incident -collect critical incidents -Identify performance dimensions -Reclassification of incidents -Assigning scale values to the incidents -Producing final instruments 9.Assessment centers-First introduced by German army in 1930. Assessed by experts, and the techniques include role play, case studies 10. Field review method-

Techniques /Methods
11.Paired Comparison method Here the appraiser ranks the employees by comparing one employee with all the other employees in a group. N(N-1)/2 12.Human Resource Accounting HRA deals with cost and contribution of Human Resource to the organization. Employee performance can be measured in terms of employee contribution to the organization Performance + Contribution> Cost Performance - Contribution< Cost

Methods Or techniques
13.Psychological Appraisal Conducted to assess the employees potential It consists of Psychological tests, In-depth interviews, Conducted in the areas of- employees intellectual ability ,emotional stability, reasoning skills, interpretation and judgement, ability to foresee the future

Methods /techniques
14.Management by objectives Superiors and subordinates will - Jointly identify its common goals - Define individuals major areas of responsibility - Measure the performance - Update and alter goals as required participatively set goals that are verifiable and measurable It emphasizes on what must be accomplished rather than how it must be accomplished

Problems of Performance appraisal


Halo Effect-one aspect of the performance affects the raters evaluation of other performance dimensions First Impressions-FI of candidate may colour his evaluation of all subsequent behavior Central tendency Playing safe appraisers rate all the employees as avg. performers Recency Effect-Weightage given to recent occurences Stereotyping-Opinion the appraiser holds about a person based on background Horns Effect-Tendency of superiors to rate lower than their performances

Career Development
Career- is a sequence of position held by a person during the course of a lifetime Career planning- The process by which one selects career goals and the path to those goals Career Development-The personnel actions one undertakes to achieve the career plan. Career management-It is a continuing process of setting career goals, formulating and implementing strategies for reaching the goals and monitoring the results

Career Stages
Exploration(Initial stage of getting into work) Establishment(acceptance) Mid career(continues to show improvements) Late Career(Stage of relaxation,command respect,judgement has a value) Decline(Stage of retiring)

Career development
Individual Performance Exposure Networking Loyalty to career Mentors (Older employees offering career options) Sponsors(creating developmental opportunities) Key Subordinates Organisational Self assessment tools Individual counselling Employee assessment programmes(Assessment centres,psychological tests ,Promotability forecasts) Employee developmental programmes(Seminars ,workshops,conferences)