Objectives of Performance Appraisal Objectives of Performance Appraisal Reward Decision Reward Decision Increments Performance Pay Promotions Demotions Development Objectives Development Objectives Identification of Strength Identification of Weakness Training Needs Identification Career Planning Succession Planning Competence Planning Job Rotation Leadership Development Validating Recruitment Validating Training HR Planning Skills Inventory Performance Feedback Punishments Outplacement .

Performance Dimension Order .Rater Bias .Attribution Error .Halo Effect .Strictness Error .Low Appraiser Motivation .Inflationary Error .Spillover Effect .Horn Effect .Central Tendency .Errors in Performance Appraisal .‘Same-as-me’ Error .Primacy Error/Recency Error .Leniency Error .Contrast Error .Stereotyping .Status Error .

TUG-OF-WAR .Capacity utilisation .Goal setting culture . Review Consequences .Agreed objectives .SHORT TERM FOCUS .No Development Feedback Appraisee’s Perception .CONFLICTS .Results orientation .Methods of Appraisal MBO Method Corporate Objectives Department Objectives Appraiser’s Objectives Appraiser’s Perception Resources Allocation Agreed Objectives Action Planning Implementation Appraisal.Better motivation .

Methods of Appraisal • MBO Method • Graphic Rating Scale • Essay Method • Assessment Development Centre • Behaviourly Anchored Rating Scale • Field Review Method • Forced DISTRIBUTION • CRITICAL INCIDENTS • Forced Choice Method • Check List Method .

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CRITICAL INCIDENT METHOD • Critical incidents are behaviors that result in good or poor job performance. • For eg.” . We could save a lot of lives due to the above factor.  “I saw Mishra closing the steam line valve at the instant the pipeline burst. • The rater plays the role of ‘Observer’ rather than ‘Judge’. • The rater records all such incidents and the ratee’s involvement in it.

RECORDING CRITICAL INCIDENTS • • • • Should be Specific Focus on Observable behaviours that have been exhibited on the job Describe the Context in which the behaviour occurred Indicate the Consequences or Outcomes of the behaviour .

Forced Distribution 30 25 20 15 10 5 0 Low Low.High avg avg Low Low-avg Avg High-avg High .Avg High.

Appraisal Process Objectives of Appraisal Establish Job Expectations Design of Appraisal Process and Format Appraisal – Performance and Competencies Consequences Performance Interview .

COST EFFECTIVE .Developmental Orientation .LISTENING .TRUST . TRANSPARENT .CONSTANT REVIEW of Process and Format .Improving Effectiveness of Performance Appraisal .Communication Climate .Training of Appraiser’s and Appraisees .OPEN.EMPATHY .TIMELY .Consequences Management .

Multiple. Trained Assessors .Assessment Development Centre .¾ days Workshop .Interviews .Case Analysis.Off the Job Method .Group Discussions .Top Management / Consultants . Presentations .Psychometric Tests .Competency Focussed .

Potential Appraisal High P O T E N T I A L Problem Children High STARS Outplacement Candidates Low Low Solid Professionals High Performance Performance – TODAY Potential – FUTURE For Career Planning For Succession Planning For Competency Development .

Competency Development .LISTEN and TELL Method .Appraisal Interview .Listen and Sell Method .Performance Improvement .Listen and Mutual Problem Solving Method .Future Oriented .

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