Performance Appraisal (1).pdf
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Performance appraisal of Dr. Shikha Rana at IMS Unison University is discussed. The document provides an overview of performance appraisal, including its definition, objectives, processes, techniques and common errors. It also discusses performance appraisal practices in the banking, IT and pharmaceutical sectors, highlighting how companies like State Bank of India, Yes Bank, Infosys, Accenture, IBM, Piramal Healthcare and GlaxoSmithKline conduct performance evaluations. The conclusion emphasizes that performance appraisal is a key factor in organizational effectiveness.
Performance Appraisal (1).pdf
- 1. PERFORMANCE APPRAISAL DR SHIKHA RANA ASSISTANT PROFESSOR -SELECTION GRADE IMS UNISON UNIVERSITY
- 2. Introduction to Performance Appraisal *95% of HR leaders were unhappy with the traditional annual performance review process, and 60% of employees felt that performance reviews did not help improve their performance in any way: A Survey *A 2018 Global Culture Study revealed that continuous performance feedback is one the four most underutilized parameter in employee engagement and culture improvement. *Research shows that people become high performers by identifying specific areas where they need to improve and then practicing those skills with performance feedback. *Consistent evaluation, coaching conversations and upskilling through technology are some of the ways through which organisations can retain their employees. *“82% of employees really appreciate receiving feedback, regardless if it’s positive or negative.” And, other studies show that while 75% of employees feel feedback is important, 65% of employees say they want more. * Research Findings
- 4. Contents Definition of Performance Appraisal (PA) Brief overview of the evolution of Performance Appraisal Objectives of PA What should be Rated in PA? Process of PA Techniques of PA Performance Appraisal Feedback Errors in conducting PA Industry practices
- 5. Definition and Meaning of PA “Performance Appraisal is the systematic, periodic and impartial rating of an employee’s excellence, in matters pertaining to his present job and his potential for a better job”. -Edwin Flippo “Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development". -Dale S Beach Hence, performance appraisal is a technique utilized in a systematic and factual way to evaluate the actual performance of employees against the standards set by the organization followed by feedback from the senior for examining the relative worth or competency of the employee while performing the task (Dessler, 2011)
- 6. DEVELOPMENT OF PERFORMANCE APPRAISAL INFORMAL BEGINNING: BY ROBERT OWEN IN EARLY 1800s FORMAL BEGINNING: EARLY 1900 ADOPTED BY US ARMY DURING FIRST WORLD WAR MAN TO MAN RATING GRAPHIC RATING SCALE 6
- 7. PERFORMANCE APPRAISAL DURING 1940s FOCUS WAS MORE ON REDUCING RATING ERRORS AND BIASES FORCED CHOICE DISTRIBUTION METHODS CRITICAL INCIDENTS METHODS 7
- 8. PERFORMANCE APPRAISAL 1950-1990 EMPLOYEE INVOLVEMENT, SELF ASSESSMENT, FEEDBACK, CREATING BENCHMARKS AND RESULT ORIENTATION 8
- 9. PERFORMANCE APPRAISAL AFTER 1990s- TILL NOW: DECENTRALIZATION OF PERFORMANCE APPRAISAL PERFORMANCE-BASED REWARDS EMPLOYEE INVOLVEMENT FEEDBACK ORIENTED PLATFORM FOR OPEN DISCUSSION OVERALL PERFORMANCE MANAGEMENT 360 DEGREE PERFORMANCE APPRAISAL POTENTIAL APPRAISAL 9 AI Driven Performance Appraisal
- 10. Objectives of Performance Appraisal Identifying the gap between the actual and the desired performance. Compensation Decisions Training and Development of employees Promotions & Transfers Feedback Self-development Downsizing Decisions Controlling mechanism
- 11. What should be Rated? Quality Quantity Timeliness Cost Effectiveness Need For Supervision Interpersonal Impact Community Service
- 12. PROCESS OF PERFORMANCE APPRAISAL
- 13. Methods OF Performance Appraisal Traditional Methods Modern Methods Rating Scales MBO Checklist 360 Degree Appraisal Forced Choice Methods Assessment Centres Forced Distribution Method Psychological Appraisal Critical Incidents Methods HR Score Card BARS Field Review Essay Method Ranking Method
- 14. Performance Appraisal Feedback Norman R. F. Maier addressed three types of appraisal interview styles: 1) Tell & Sell 2) Tell & Listen 3) Problem Solving.
- 15. Errors in PA Stereo Types Halo Effect Central Tendency Error Leniency Error Severity Error
- 16. Errors in PA
- 17. PA Practice in Banking Sector State Bank of India which is one of the largest public sector commercial bank in India in terms of assets, deposits, profits, branches, customers and employees has rolled up a new system of performance appraisal and that is “Career Development System” where the KRAs (Key Result Areas) would be identified and employees having same profiles would be rated against each other on the basis of five grades such as AAA, AA,A B and C. Career Development system is originally meant to reward the top performers but loosely linked with identifying low performers Yes bank has adopted Yes-Talent Optimization Program which ensures transparent, timely, unbiased and multi-level performance evaluation of all the executives further the annual appraisal is extremely merit- based.
- 18. PA Practice in IT sector Infosys has abandoned the old bell-shaped curve appraisal by introducing icount where the individual performance would be focused and managers would be empowered by being flexible in their operations. Further, icount will give continuous feedback on short term performance to the employees throughout the year and the basic idea behind iCount is that every employee must contribute to the organization by an effective performance. Accenture another big name in IT has also vanished the bell curve appraisal by introducing a real time, progressive appraisal which focuses on setting priorities jointly and rewarding the employees at the same time. The existing appraisal is inclined towards “Performance Achievement” and opt for holistic approach towards employee’s career growth. Additionally the leaders in Accenture also coach the employees on their performance-related issues
- 19. IBM another leader in IT has dropped annual appraisal system by launching “CheckPoint” performance appraisal technique which will evaluate the quarterly performance of employees. In checkpoint appraisal the performance would be monitored and evaluated against five dimensions such as business results, client’s success, skills, individual responsibilities to others and innovations. The Performance Appraisal Techniques Across Various Sectors in India new appraisal systems aims at improving the productivity of employees by being target-oriented.
- 20. PA Practice in Pharma Sector Piramal healthcare have a very comprehensive performance management system known as eVolve where scores are calculated on the basis of Key Result Areas and Critical Values like communication skills, initiatives, team work, customer responsiveness etc in which self appraisal and appraisal by superior is done adding the score of KRAs and Critical Values. Ninety percent weightage is given to KRAs while ten percent weightage is given to “Critical Attributes”. GlaxoSmithKline pharmaceuticals follows 360 Degree performance appraisal and goals are clearly defined and well linked with the organizational strategies further supported by the six GlaxoSmithKline Expectations which makes the performance appraisal more result -oriented. Additionally the current appraisal system strengthen the reward -based performance.
- 21. Conclusion Robert J. Greene, CEO of Reward Systems Inc., stated that performance appraisal is the single largest factor which is solely responsible for organizational effectiveness. (Tyler, 2005).