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Objectives Meaning  Definition Modern Traditional Index About Performance appraisal Process of Performance Appraisal  Methods / Techniques of Performance Appraisal  Issues in Performance Appraisal  Advantages of Performance Appraisal  Disadvantages of  Performance Appraisal
Definitions According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
Meaning Performance appraisal  is the step where the management finds out how effective it has been at hiring and placing  employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
 
Objectives of Performance Appraisal According to: Aims  at: Employee Organization measuring the efficiency maintaining organizational control. concrete and tangible particulars about their work assessment of  performance mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness  Personal development work satisfaction involvement in the  organization.
Process  Setting  performance standards Taking corrective standards Discussing results Comparing  standards Measuring standards Communicating standards
Methods of Performance Appraisal Paired comparison  Graphic Rating scales Forced choice Description method Forced Distribution Method Checks lists Free essay method Critical Incidents Group Appraisal Field Review Method  Confidential Report Ranking Assessment Center Appraisal by Results or Management by Objectives Human Asset Accounting Behaviorally Anchored Rating scales Traditional Methods   Modern Methods
As compared to  A  B  C A  +  -  + B  -  +  -  C  +  -  +  A  -  +  +  B  +  -  +  C  +  +  - As compared to  A  B  C For the Trait “Creativity” + + + + + + + + + - - - - - - - - - Person rated  Person rated Ranking employees by paired comparison Method  For the Trait “Quality of work”
Graphic or Linear Rating Scales Take decisions in consultation with others whose views he values Slow to take decisions Take decisions after careful consideration Takes  decisions promptly  Take decisions without consultation  0   5   10   15   20 0   5   10   15   20 Attitude No interest In work:  consistent complainer Careless:  In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiastic about job &  fellow-workers Enthusiastic opinions & advice sought by others Decisiveness
Criteria Rating 1.Regularity on the job  Most  Least Forced choice method Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular
Forced distribution method No.  of  employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve
Staff Appraisal Name . . . . . . . Job Title . . . . . . .  Department . . . . . . . . . . . . Date of Review . . . . . . .  Age . . . . . .. . Years in present job Section I   Appraisal Of Performance Note to Appraiser Appraisal must cover the period of the preceding 12 months Consideration to every function & responsibility of the job An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability Promotion now Within 2 years Within 5 years Unlikely to qualify for promotion Section III   Career Development Section IV   Notes on Interview with employee Section V   Comments on & Endorsement by Reviewing Authority  Specimen of Staff Assessment Form [Descriptive Essay Type]
Ex: A fire, sudden breakdown, accident Workers  Reaction   scale A   Informed the supervisor immediately   5 B   Become anxious on loss of output   4 C   Tried to repair the machine   3 D   Complained for poor maintenance   2 E   Was happy to forced test   1 Critical  Incident  method
Performance   subordinate peers  superior  customer Dimension Leadership   ^   ^ Communication  ^   ^ Interpersonal skills   ^   ^ Decision making   ^   ^   ^ Technical skills   ^   ^   ^ Motivation   ^   ^   ^ Field review method
Group appraisal method
MBO Process Set organizational goals Defining performance target Performance review feedback
Behavioral Anchored Rating Scales Performance Points 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.
360 degree performance appraisal
These companies are using 360 Degree Performance Appraisal Method Examples of 360 degree performance appraisal method Wipro Infosys Reliance Industries  Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)
Issues in appraisal system Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods? Appraisal Design
Constant check induces employee to perform better
Advantages
Disadvantages
 

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Performance Appraisal ppt [hrm]

  • 1.  
  • 2. Objectives Meaning Definition Modern Traditional Index About Performance appraisal Process of Performance Appraisal Methods / Techniques of Performance Appraisal Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal
  • 3. Definitions According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
  • 4. Meaning Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
  • 5.  
  • 6. Objectives of Performance Appraisal According to: Aims at: Employee Organization measuring the efficiency maintaining organizational control. concrete and tangible particulars about their work assessment of performance mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness Personal development work satisfaction involvement in the organization.
  • 7. Process Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards
  • 8. Methods of Performance Appraisal Paired comparison Graphic Rating scales Forced choice Description method Forced Distribution Method Checks lists Free essay method Critical Incidents Group Appraisal Field Review Method Confidential Report Ranking Assessment Center Appraisal by Results or Management by Objectives Human Asset Accounting Behaviorally Anchored Rating scales Traditional Methods Modern Methods
  • 9. As compared to A B C A + - + B - + - C + - + A - + + B + - + C + + - As compared to A B C For the Trait “Creativity” + + + + + + + + + - - - - - - - - - Person rated Person rated Ranking employees by paired comparison Method For the Trait “Quality of work”
  • 10. Graphic or Linear Rating Scales Take decisions in consultation with others whose views he values Slow to take decisions Take decisions after careful consideration Takes decisions promptly Take decisions without consultation 0 5 10 15 20 0 5 10 15 20 Attitude No interest In work: consistent complainer Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiastic about job & fellow-workers Enthusiastic opinions & advice sought by others Decisiveness
  • 11. Criteria Rating 1.Regularity on the job Most Least Forced choice method Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular
  • 12. Forced distribution method No. of employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve
  • 13. Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser Appraisal must cover the period of the preceding 12 months Consideration to every function & responsibility of the job An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability Promotion now Within 2 years Within 5 years Unlikely to qualify for promotion Section III Career Development Section IV Notes on Interview with employee Section V Comments on & Endorsement by Reviewing Authority Specimen of Staff Assessment Form [Descriptive Essay Type]
  • 14. Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1 Critical Incident method
  • 15. Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^ Field review method
  • 17. MBO Process Set organizational goals Defining performance target Performance review feedback
  • 18. Behavioral Anchored Rating Scales Performance Points 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.
  • 20. These companies are using 360 Degree Performance Appraisal Method Examples of 360 degree performance appraisal method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)
  • 21. Issues in appraisal system Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods? Appraisal Design
  • 22. Constant check induces employee to perform better
  • 25.