This action might not be possible to undo. Are you sure you want to continue?
Gupta (108I08) Khyati Khemka (108I04) Mayank Raturi (108J53) Sameer Chawla (108J31) Akshita Saxena (108)
Introduction to Performance Management
³Performance Appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members´.
Performance Appraisal is a process supporting the use of human resource in an organization. It is possibly management¶s most powerful tool in controlling performance and productivity of human resources in the organization. Used effectively, it can have tremendous strategic potential for governing employee behavior and in turn, organization¶s direction through its dynamic links to selection, training, career-path planning and reward systems.
Appraisal Practices in India
Rao (1982) conducted a survey of appraisal practices of 45 organizations. Observations: 50% organizations-regulating employee behavior and developing employee capabilities y 30% organizations-only controlling and regulating employee behavior y 10% organizations-development purposes
The survey revealed some interesting practices being followed in these organizations: Appraisal of a person falling under the category µoutstanding¶ should be accompanied by a brief citation of the individual¶s performance y The final ratings are given by an officer three levels above the appraisee
Appraisal forms for workers and staff are simple (one page). Lengthy for officers and managers A µmerit award¶ system operates for those whose performance is praiseworthy Ratings are given for various qualities in a printed form First assessment is finalized by the reporting officer after discussions with the appraisee. Then sent to the head of the division who sends it to the divisional director The senior managers of the company are expected to give a minimum of four objectives per year and plans as to how they will be achieved
PERFORMANCE MANAGEMENT SYSTEM AT GRASIM INDUSTRIES
TRADITIONAL METHOD: a) Supervisors used to rate the employees. b) Time consuming, lot of paper work- Logistical
CURRENTLY USED METHOD:
In the year 2001 Grasim outsourced its HR system to a company named ICOMM. a) Appraisals are done online. EmployeeAppraiser communications are also maintained online. b) All the users were empowered independently using separate Login ID's to maintain complete confidentiality during the process.
ANALYSIS OF THE PERFORMANCE MANAGEMENT SYSTEM
BENEFITS: y Time saving y Can easily differentiate between poor performers and good performers y Helps in forecasting budgeting for the next year. DRAWBACKS: y Though the system is doing well but since everything is standardized so it can lead to less consideration of human factors. HR as a human science can lose its significance. SUGGESTIONS: y Rather than making the whole process completely technical, monitoring of the process can be done by skilled experts such that it becomes less time consuming and takes special cases into consideration.
Appraisal systems in banks
y 1. 2. 3. 4. 5. 6.
7. 8. 9. 10. 11.
Traditional approach: (assessment) General Intelligence Job knowledge Initiative and resourcefulness Supervision Business capacity Ability to access sound business propositions Dependability Employee relationship Public relationship Appearance, conduct and manners Significant achievements etc
y y y y
1. 2. 3.
Performance related as well as trait based appraisals. Identification of strengths and weaknesses. Laid stress on the use of self appraisal and 360 degree feedback. Allahabad bank developed a system for appraisal in the following areas of assessment: Job performance Job knowledge / skills and personal characteristics Potential ability and development.
Punjab National Bank
PNB Pariwar 2. Mission-Committed work force 3. Emphasis on ethical conduct 4. People Soft
PMS in PNB
Development Oriented Appraisal. The company follows a Self Appraisal Method, which is then assessed rated) by the senior authority, and then goes to the higher authorities for the sanction. Appraisal is done on the Achievement Figure Indicator, which includes business indicators like deposits, advances. In addition to this performance appraisal breakup is also based on various other activities like Sanction overdue for renewal, No. of complaints outstanding, no. of offices visited, no. of villages adopted (in case of rural schemes which the bank launches)
EXPERIENCES OF THE LAST DECADE
in performance appraisal system at Eicher reflect maturing of the HR function with emphasis on quality, teamwork & process of development. Current system has moved away from trait-oriented subjective system to an objective form. y Appraisal system at TELCO is MBO based & process is mostly closed.
The SAIL system of appraisal includes self appraisal, primary grading, performance review committee & development plan. UTI has an appraisal system whose aim is to develop boss-subordinate relationship. It broadly has three parts: y Focus on self appraisal of performance y Focus on confidential aspect of potential y Review of appraisal
At MODI Xerox, performance planning & appraisal is based on the RRO¶s which are filled for every appraisee.
The 4 goal areas taken are : y Customer satisfaction y Employee satisfaction y Business results y Quality
In the area of performance appraisals, the movement from a top-down approach to a completely employee centered approach is almost complete with the realization that the appraisee is the most critical component of any performance appraisal system.
MANAGERIAL PREFERENCES AND ATTITUDES TO APPRAISALS Surveys conducted seeking the opinions and preferences of managers indicate that managers themselves are interested in open appraisals systems. y Another survey conducted in 1978 showed that 98% of 588 officers surveyed felt that the appraisal system should help recognize their strengths and weakness.
This open appraisal system of the kind was introduced on an experimental basis. A year after introducing the new system a second survey was conducted to assess the opinions of officers. About 63 % stated that they were willing to show the full report to their appraisees. 84% of them preferred to have performance review discussion. 53% of them preferred trait-based assessment of their subordinates.
Kulkarni, Nangia and Prakasam Prakasam(1980) of the National Institute of Bank Management conducted a nation wide opinion survey of the bank employees on various personnel issues.
Only about 14% of the employees stated that they were aware of the basis on which their supervisor evaluated their work in annual confidential reports. Remaining 55% had no idea at all of the criteria used, 33% had some general idea. 68% felt that data filled in annual confidential performance. reports do not focus on the job performance 73% felt that the appraisee should be interviewed about his performance and given opportunity to provide inputs for his performance assessment.
Appraisal Methods Of Wipro
y e-performance management y PCMM People Capability Maturity PCMM(
Model) y Identification Of Star performers y Intensive training programs y Quarterly and half yearly performance appraisal y Wipro Employee Stock Option Plan (WESOP) allows employees to share in the companies success
A sizeable number of private and public sector organizations continue to follow trait-based, confidential formats of performance appraisal. Almost all them are dissatisfied with such forms of appraisals, particularly for assessing their managers.(dissatisfaction arises mainly from : high subjectivity in appraisals, lack of correlation with job-related factors, the appraisee not having an opportunity to project his performance etc) With increased recognition being given to the personnel function, a few organization have already begun to experiment with new systems of appraisals.
A large number of executives including those at senior level see the role of developing HR as mainly that of personnel or HRD department. This lack of recognition prevents most executives from effective use of development-oriented appraisal systems. In some originations the symbols are taken more seriously than the purpose or the spirit behind these. Personnel departments are still struggling to overcome such problems. Managers want open systems of appraisals and personnel departments are still struggling to find appraisal models suitable for their organizations.
FUTURE OF PERFORMANCE APPRAILS
Great degree of awakening taking place in the managerial world about potential uses of performance appraisals. Unlike west where training is perceived as the most important mechanism of developing employees, in India appraisal systems are being recognized as an equally potential tool for development. In coming years there is likely to be more and more experimentation with new appraisal systems that contribute to improvements in the quality of work life as well as to the development of human resources.
Role Descriptions : Organizational roles and functions must be defined clearly. To this end, job descriptions must be prepared for each job. Qualities needed to perform the roles : Based on job descriptions, the roles to be played by people must be prepared (i.e. technical, managerial jobs and behavioral dimensions). Rating mechanisms : Besides listing the function and qualities, the potential appraisal system must list mechanisms of judging the qualities of employees such as : i. Rating by others, ii. Tests, iii. Games and iv. Records. Organizing the system : After covering the above preliminaries, the HR manager must set up a system that will allow the introduction the scheme smoothly incorporating answers to some complex questions.