Unit - IV

PERFORMANCE APPRAISAL

PERFORMANCE APPRAISAL
Definition: It is a systematic and objective way of evaluating both work related behaviour and potential of employees

PERFORMANCE APPRAISAL
Features 1. Systematic process a. setting work standards b. Assessing actual performance c. offering feedback of employees 2. Measures the current performance and establish a plan for further improvement 3. Appraisal is a regular process

PERFORMANCE APPRAISAL
Features 4. Future oriented activity not a past oriented activity 5. Performance appraisal is not job evaluation 6. Focuses on employees development not limited to calling the fouls 7. Performance appraisal may be formal or informal

Objectives of performance Appraisal

Compensation decisions Promotion decisions Training and development programmes Feedback Personal development

PERFORMANCE APPRAISAL

What is to be Appraised ?

PERFORMANCE APPRAISAL
What is to be appraised? 1. Ability to plan, delegate, control and coordinate 2. Knowledge of job 3. Clarity about objectives 4. Cost conciousness 5. Power of expression 6. Decision making 7. Use of discretion and judgement

PERFORMANCE APPRAISAL
What is to appraised? 8. Dealing and relations with superiors and subordinates 9. Leadership 10. Organising ability 11. Loyalty 12. Inititative 13. attendance

Who will Appraise?

Supervisors Peers subordinates Self appraisal User of services Consultants

When to Appraise?
Informal Appraisals - whenever the supervisor feel it is necessary Formal Appraisals conducted systematically on regular basis
1. every six months or 2. annually

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

PERFORMANCE APPRAISAL
Methods: 1. Individual evaluation methods 2. Multiple-person evaluation methods 3. Other methods

PERFORMANCE APPRAISAL
Individual evaluation methods a) Confidential reports Descriptive report prepared by the superior Highlights the strengths and weaknesse No feedback is offered

PERFORMANCE APPRAISAL
Individual evaluation methods b) Essay evaluation Job knowledge and potential understanding of the companys programmes,policies,objectives,etc relationship with co-workers and superiors general planning, organizing and controlling ability attitudes and perceptions

PERFORMANCE APPRAISAL
Individual Evaluation Methods c) Critical Incident Technique Prepare the lists of statements of every effective and ineffective behaviour of an employee Manager maintain the logs and Periodically records critical incidents Provides an objective basis for conducting a thorough discussion of an employees performance

PERFORMANCE APPRAISAL
Individual Evaluation Methods d) Checklists and weighted checklists Is the employee really interested in the task assigned? (Yes/No) Is he respected by his colleagues? (Yes/No) Does he respect his superiors? (Yes/No) Does he make mistakes frequently? (Yes/No)

Methods of performance Appraisal

Limitations of checklist method Biased in distinguishing the positive and negative questions Assign biased for weighted questions Expensive and time consuming Difficult to assemble analyse and weigh no. of statements about employees characteristics, contributions and behaviour

Methods of performance Appraisal

5.Graphic rating scale Variety of traits may be used in these types of rating devices Performance standards of the employees are obtained

Methods of performance Appraisal

Merits Graphic rating scale Easy to understand Objective in nature, they can be effectively used as evaluators. Demerits Graphic rating scale Arbitrary and the rating may be subjective Each characteristic is equally important in evaluation of the employees performance

Methods of performance Appraisal

6.Behaviorally anchored rating scales It is combination of the rating scale and critical incident techniques. It contains various dimension it include following things Collect critical incidents Identify performance dimensions Reclassification of incidents Assigning scale values to the incidents Producing the final instrument

Methods of performance Appraisal

7. Forced choice method Aim: To eliminate bias and preponderance of high rating Contains several sets of pair phrases two 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

Methods of performance Appraisal

Forced choice items 1. Least: A Does not anticipate difficulties B Grasps explanations easily and quickly C Does not waste time D Very easy to talk to 2. Least: A Can be a leader B Wastes time on unproductive things C Always cool and calm D Smart worker Most A B C D Most A B C D

Methods of performance Appraisal

8.Management by objectives: Set the specific, measurable goals with each employee Periodically discuss the latters progress towards these goals It mainly focused on what must be accomplished rather than how it is to be accomplished It include following six steps Set the organization's goals Set the departmental goals Discuss the departmental goals Define expected results Performance reviews

Methods of performance Appraisal

Multiple person evaluation technique 9.Ranking method Employees are ranked according to the relative level of performance Limitations: Very difficult to compare individuals possessing varied behavioural traits This method speaks only of the position where an employee stands in his group There is the no systematic procedure Difficult when employees are many in number

Methods of performance Appraisal

10. Paired comparison method Each worker compared with all other employees in the group For every trait the worker is compared with all the other employees 11. Forced distribution method Appraise the employee using predetermined distribution scale. A five point scale is normally used without any descriptive statements

Methods of performance Appraisal

12 Group Appraisal 13. Human Resource Accounting

Methods of performance Appraisal

14.Assessement center This done by using various experts and various techniques Spend the time of observer min 2 days Evaluating potential candidates to be considered for promotion training or development 15.Field review method: Trained, skilled representative of HR department Assists line supervisors with their ratings of their respective subordinates Ratings are done in standardized forms

360 degree Feedback system

Collect the information from subordinates oneself peers Supervisors and customers (e.g.) GE, Reliance, crompoton graves, wipro, Infosys TV Rao developed this concept-IIM A This appraisal system only used on promotion and reward

360 degree Feedback system

Merits: Evaluates methods applied to achieve targets Reveals strength & Weakness Forces inflexible managers to initiate change Creates team work and improvement Demerits Ignores performance in terms of reaching goals Assessees deny the truth of negative feedback Colleague's responses tend to be biased Can be used to humiliate people