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PERFORMANCE APPRAISAL

CONTENTS
DEFINITION OBJECTIVES CONTRIBUTION OF P - A TO A FIRM

PITFALLS

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P - A PROCESS P - A METHODS A STUDY OF P - A AT L&T

DEFINITION
Performance appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) by the corresponding manager or supervisor.

OBJECTIVES
Basis for promotion / transfer / termination Enhancing employee effectiveness
Identify employee training and development needs

Aiding wage administration

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Aiding in desigining and development programmes Removing work alienation Removing dis content Developing interpersonal relationship

CONTRIBUTIONOF PERFOMANCE APPRAISAL TO A FIRMS COMPETITIVE ADVANTAGE

PERFORMANCE

LEGAL COMPLIANCE

CORRECT DECISIONS

AND TURNOVER

COMPETITIVE ADVANTAGE

PITFALLS
SHIFTING STANDARDS
DIFFERENT RATERS PATTERN CENTRAL TENDENCY FIRST IMPRESSION

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LATEST BEHAVIOR HALO EFFECT HORN EFFECT

SPILL - OVER EFFECT

P.A PROCESS
ESTABLISHING PERFORMANCE STANDARDS COMMUNICATING STANDARDS & EXPECTATIONS MEASURING THE ACTUAL PERFORMANCE COMPARING WITH STANDARDS DISCUSSING RESULTS (PROVIDING FEEDBACK) DECISION MAKING (TAKING CORRECTIVE ACTIONS)

METHODS OF P.A.
TRADITIONAL METHODS
MAN TO MAN ANALYSIS GRADING METHODS CHECK LIST CRITICAL INCIDENT FIELD REVIEW CONFIDENTIAL REPORT RATING SCALE

FREE ESSAY METHOD

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FORCED CHOICE
FORCED DISTRIBUTION BARS ACRS ESSAY

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MBO

MODERN METHODS

360 DEGREE APPRAISAL PSYCHOLOGICAL


ASSESSMENT CENTRES

STUDY OF PERFORMANCE APPRAISAL AT L&T

STAGE 1

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The process of P.A at L&T starts in April each year.

Each employee reviews his past performance with respect to the objectives & targets.
After this employee gives his overall assessment of the results by him.

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They also carries out a self review with regard to significant contributions made by him and the factors that facilitated or hindered his performance. Then the immediate supervisor measure and marks the performance against objectives.

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Grades such as OUTSANDING , VERY GOOD , GOOD , ADEQUATE , AND INADEQUATE are given by him.
STAGE:2

Now the supervisor along with the employee carries out performance planning and development planning for the next year.

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The supervisor analyzes the subordinates past performance and gives him a feedback on his past performance.

He also assesses the critical attributes of his subordinates with respect to five important criteria i.e.

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INNOVATIVENESS INITATIVE INTERPERSONAL AND TEAM RELATIONSHIP RESOURCEFULNESS COMMUNICATION SKILLS

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The areas of weakness and strengths and the areas where employee has the potential to make significant contribution is also being marked .
STAGE 3

Finally the boss suggest the areas in which training can be imparted to the employees.

REVIEW BY TOP MANAGEMENT


The whole process takes about three months. The HRD department receives the assessment in July. It carries out overall assessment of various training needs and complies various reports which are submitted to GMs and corporate management.

BIBLIOGRAPHY
BOOKS REFERED

ASWATHAPPA K , HUMAN RESOURCE MANAGEMENT , FIFTH EDITION , PUBLISHED BY : TATA Mc GRAW HILL PUBLISHING COMPANY LIMITED , NEW DELHI , PG NO. (239 267)

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PATTANAYAK BISWAJEET , HUMAN RESOURCE MANAGEMENT ,THIRD EDITION , PUBLISHED BY : PRENTICE HALL OF INDIA (P) LIMITED , NEW DELHI , PG NO (121 - 130)

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