Methods of performance appraisal
Download as PPTX, PDF46 likes19,306 views
This document discusses performance appraisal methods used to evaluate employee performance. It describes traditional methods like confidential reports, essays, rankings, checklists and critical incidents. It also outlines modern methods like assessment centers, human resource accounting, behaviorally anchored rating scales, and management by objectives. The goal of performance appraisals is to provide regular feedback to employees, identify strengths and weaknesses, and make compensation, promotion and development decisions in a fair manner. A variety of quantitative and qualitative techniques are used to holistically assess an employee's overall job performance.
Methods of performance appraisal
- 1. PERFORMANCE APPRAISAL BY :- KARAN DALVI
- 4. Objectives Opportunity to Regularly Discuss Results Supervisor Identifies Strengths and Weaknesses Fair and Equitable Format Basis for Salary/Promotion Recommendations
- 5. Performance Appraisal: Uses Performance improvement Compensation adjustments Placement decisions Training & Development needs Career planning & development Identify deficiencies in staffing process Detect informational inaccuracies Diagnose job design errors Avoidance of discrimination External challenges
- 6. Methods of Performance Appraisal Several methods and techniques are used for evaluating employee performance. These may be classified into broad categories. Performance Appraisal Traditional Methods Modern Methods 1. Confidential Report 2. Free Form or Essay 3. Straight Ranking 4. Paired Comparisons 5. Forced Distribution 6. Graphic rating Scales 7. Checklist Method 8. Critical Incidents 9. Group Appraisal 10. Field Review 1. Assessment Centre 2. Human Resource Accounting 3. Behaviorally Anchored rating Scales 4. Appraisal through MBO
- 7. TRADITIONAL METHOD 1. Confidential Report This is a traditional form of appraisal used in most government organization. A confidential report is a report prepared by the employee’s immediate superior. It cover the strengths and weaknesses, main achievements and failure, personality and behavior of the employee’. It is descriptive appraisal used for promotion and transfers of employees. 2. Free Form or essay Method Under this method, the evaluator writes a short essay on the employee’s performance on the basis of overall impression. The description is expected to be as factual and concrete as possible. An essay can provide a good deal of information about the employee especially if the evaluator is asked to give examples of each one of his judgments.
- 8. 3. Straight Ranking Method In this method technique, the evaluator assigns relative ranks to all the employees in the same work unit doing the same job. Employees are ranked from the best to the poorest on the basis of overall performance. The ‘wholeman is compared with the whole man’ without analyzing performance. The relative position of an employee is reflected in his numerical rank. Employee Rank A 2 B 1 C 5 D 4 E 3 Straight ranking is one of the oldest and simplest methods. It is time saving and a comparative evaluation technique of appraisal.
- 9. 4. Paired Comparisons Method This is a modified from of man to man ranking. Herein, each employee is compared will all the others in pairs one at a time. The number of times an employee is judged better then the others determines his rank. Comparison is made on the basis of overall performance. 5. Forced Distribution Method In this technique, the rater is required to distribute his rating in the form of a normal frequency distribution. The purpose is to eliminate the rater’s basis of central tendency. Here also ranking technique is used. This method is highly simple to understand and easy to apply
- 10. 45 40 35 30 25 20 15 10 5 0 Poor Below Average Average Good Excellent No. of employee
- 11. 6. Graphic Rating Scales It is a numerical scale indicating different degrees of a particular trait. The rate is given a printed from for each employee to bee rated. The form contains several characteristics relating to the personality and performance of employees. Intelligence, quality of work , leadership skills, judgment, etc. are some of these characteristics. The rater records his judgment on the employee’s trait on the scale. The numerical points given to an employee are added up to find out his overall performance a standing in the group.
- 13. 7. Checklist Method A checklist is a list of statements that describe characteristics and performance of employee on the job. The ratter checks to indicate if the behavior of an employee is positive or negative to each statement. The performance of an employee is rated on the basis of number of positive checks. There are three types of checklist. 1.Simpale Checklist 2. Forced Choice Block 3. Weighted Checklist
- 14. Simple Checklist 1. Is the employee regular on the job Yes/No 2. Is the employee respected by his subordinates Yes/No 3. Is the employee always willing to help his peers Yes/No 4. Does the employee follow instruction properly Yes/No 5. Dose the employee keep the equipment in order Yes/No Forced Choice Block 1. Regularity on the job Most Least (a) Always regular √ (b) Informs in advance for absence/delay √ (c) Newer regular √ (d) Remains absent without prior notice √ (e) Neither regular nor irregular
- 15. Weighted Checklist Traits Weights Performance Ratings 1. Attendance 0.5 1. Knowledge of the job 1.0 1. Quantity of work 1.0 1. Quality of work 1.5 1. Dependability 1.5 1. Interpersonal relation 2.0 1. Organization loyalty 1.5 1. Leadership potential 1.5
- 16. 8. Critical Incidents Method In this method the supervisor keeps a written record of critical events and how different employee behaved during such events. The rating of an employee depends on his positive/negative behavior during these events.
- 17. 9. Group Appraisal Method Under this method, a group of evaluators assesses employees. This group consists of the immediate supervisor of the employee, other supervisor having close contact with employee’s work, head of the department and a personnel expert. The group determines the standers of performance for the job , measures actual performance of an employee, analyses the causes of poor performance and offers suggestions for improvement in future.
- 18. 10. Field Review Method In this method, a training officer from the personal department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these questions a supervisor gives his opinions about the level of performance of his subordinate, the subordinate’s work progress, his strengths and weaknesses, promotion potential, etc.
- 19. Modern Methods 1. Assessment Centre Method An assessment centre is a group of employees drawn from different work units. These employees work together on an assignment similar to the one they would be handling when promoted. Evaluates observe and rank the performance of all the participants. Experienced managers with proven ability serve as evaluators. This group evaluaters all employees both individually and collectively by using simulation techniques like role playing, business games and in basket exercises. Employees are evaluated on job related characteristics considered important for job success. The evaluators observe and evaluate employees as they perform jobs.
- 20. 2.Human Resource Accounting Method Human resources are a valuable asset of any organisation. This asset can be valued in terms of money. When competent, and well-trained employees leave an organisation the human asset is decreased and vice versa. Under this method performance is judged in terms of costs and contribution of employees. Costs of human resources consist of expenditure on human resource planning, recruitment, selection, induction, training, compensation, etc. Contribution of human resources is the money value of labour productivity or value added by human resources is the money value of labour productivity or value added by human resources.
- 21. 3. Behavioral Anchored Rating Scales Performance Point Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks & roam around purposelessly.
- 22. 4.Appraisal by Results or MBO The concept of management by objectives(MBO) was developed by Peter Drucker in 1954. He called it management by objectives and self control’. Since then MBO has became an effective and operational technique of performance appraisal and a powerful philosophy of managing. It is also known as Work Planning and Review or Goal setting approach to appraisal. Management by objectives has been defined as “a process whereby the superior and subordinate managers of an organisation jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members” In other words.MBO involves appraisal of performance against clear, time bound and mutually agreed job goals.
- 23. THANK YOU