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Performance

Appraisal

Group Members
Jigisha
Neelam
Parul
Col. Sanjay
Sucharita
Vipin

Content
Definition
Objectives
Who will appraise?
Process
Methods
Advantages of Performance Appraisal
Disadvantages of Performance Appraisal

Definition

It is the process of evaluating the performance


of employees, sharing that information with
them and searching for ways to improve their
performance.

Objectives of Performance
Appraisal
Compensation Decisions
Promotion Decisions
Training and Development Programmes
Feedback
Personal Development

Who will Appraise?


Supervisors
Peers
Subordinates
Self- appraisal
Users of services
Consultants

The Performance Appraisal


Process
Establish performance standards
Communicate the standards
Measure actual performance
Compare actual performance with standards and
discuss the appraisal
Taking corrective action, if necessary

SETTING
PERFORMAN
CE
STANDARD

TAKING
CORRECTI
VE ACTION

COMMUNICATIN
G STANDARD

DISCUSSIN
G RESULT

MEASURING
ACTUAL
PERFORMAN
CE
COMPARIN
G WITH
STANDARD

Methods of Performance
Appraisal

Individual
Evaluation
Methods
Confidential
Report
Essay Evaluation
Critical Incidents
Checklists
Graphic Rating
Scale
Behaviourally
anchored rating
scales (BARS)
Forced Choice
Method
Management by

Multiple- person
Evaluation
methods
Ranking
Paired
Comparison
Forced
Distribution

Other Methods
Group Appraisal
Human Resource
Accounting (HRA)
Assessment
Centre
Field Review
360- Degree
Feedback System

1) Individual Evaluation Methods


Confidential Report

Descriptive Report
Mostly used in Government Organizations
Prepared at the end of the year; by employees immediate
supervisor
Report highlights- Strengths and weaknesses of the
employees
Doesn't offer any feedback to the employee

Essay Evaluation

The rater is asked to express the strong as well as


weak points of employees behaviour
The rater considers the following factors:
- Job Knowledge and potential
- Understanding of companys programs, policies,
objectives
- Relation with co-workers and supervisors
- Planning, organizing, and controlling ability
- Attitude and Perception

Critical Incident Technique

Manager prepares lists of statements of very


effective and ineffective behaviour of an employee
These critical incidents represent the outstanding or
poor behaviour of the employees
The manager periodically records critical incidents
of employees behaviour

Checklist Method

Simple Checklist Method


Weighted Checklist Method

Graphic Rating Scale

A form is used to evaluate the performance of the


employees
A variety of traits may be used in this device, the
most common being quality and quantity of work
Easy to understand and use
Permits statistical tabulation of scores of employees

Behaviourally Anchored Rating


Scales (BARS)

Also known as Behavioural Expectations Scale


Combination of Rating Scale and Critical Incident Techniques
The HR department is involved in the process of preparing
the BARS.

Contd..

How to construct BARS?

Step 1: Collect Critical Incidents


Step 2: Identify Performance Dimensions
Step 3: Reclassification of Incidents
Step 4: Assigning Scale Values to the Incidents
Step 5: Producing the final instrument

BARS

Forced Choice Method

This method uses several sets of paired phrases, two


of which may be positive and two negative
The rater is asked to indicate which of the four
phrases is the most and least descriptive of a
particular worker
Favourable qualities earn plus credit and
unfavourable ones earn the reverse.

Management by Objectives
(MBO)

MBO emphasises collectively set goals that are


tangible, verifiable, and measurable
Focuses attention on goals rather than on methods
Concentrates on Key Result Areas (KRA)
Systematic and Rational Technique that allows
management to attain maximum results from
available resources by focusing on achievable goals

2) Multiple- person Evaluation Methods

Ranking Method
Ranking of an employee in a work group done against
that of another employee
Ranking his job performance against member of
competitive group

Paired Comparison Method


Each worker is compared with all other employees in
the group
Formulae for number of decisions n(n -2)

2) Multiple- person Evaluation Methods

Forced Distribution Methods

No.
of
employees

10% 20%
poor

40%

20%

Below average good


average
Force distribution curve

10%
Excellent

3) Other Methods
Group Appraisal

Employee is appraised by a group of appraisers


Immediate supervisor of the employee
Other supervisors
Manager or head of the departments
Consultants or Clients
Use of multiple technique ranking / paired / forced distribution
Eliminates personal bias
Time consuming

Human Resource Accounting


(HRA)
Process for accounting for people as an organisational
resource.
HRA process shows the investment the organisation
makes in its people and how the value of these
people changes over time.
It is the measurement of the cost and value of people
to organizations.
It involves measuring costs incurred by private firms

Human Resource Accounting


(HRA)

Assessment Centre
It is a system or
organisation.
Assessment by
various experts using
various techniques.
Spend two or three
days working on
individual or group
assignments similar
to the ones they
would be handling

Field Review Method

In this method, a trained, skilled representative of


the HR department goes into the field and assists
line supervisors with their ratings of their respective
subordinates.
HR specialists request from the immediate
supervisor specific information about the employees
performance.

360 Appraisal System

This system collects performance information from


multiple parties, including ones subordinates,
peers, supervisor, customers as well as self
evaluation.
Data is gathered and fed back to the individual
participant in a clear way designed to promote
understanding, acceptance and ultimately
behaviour.

Advantages of Performance
Appraisal
Provide a record of
performance over a period
of time.
(a)

Can be motivational with


the support of a good
reward and compensation
(e)

Provide an opportunity for


an employee to discuss
issues and to clarify
expectations
(d)

Provide an opportunity for


a manager to meet &
discuss performance
(b)

Provide the employee with


feedback about their
performance
(c)

Disadvantages of
Performance Appraisal
If not done appropriately, can be a negative
experience.
Very time consuming, especially for a manager.
Subject to rater errors & biases.
If not done right can be a complete waste of time.
Can be stressful for all involved.

Thank you