PRESENTATION ON PERFORMANCE APPRAISAL SYSTEM
- 2. PERFORMANCE APPRAISAL Performance appraisal is the assessment of individual performance in a systematic way. The individual performance can be measured against factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, denpendability , cooperation, judgement, versatility, health and many more. “The performance appraisal is the process through which managers assess employee’s present performance and potential for future development. --------------- J.E. POST
- 3. “Performance appraisal is the systematic evaluation of individual with respect to their performance on the job and their potential for development.” --------------- Dale S. Beach Thus in sum we can say that performance appraisal is an objective assessment of an individual’s performance against well defined benchmark (standard performance). It is a developmental tool used for the overall development of the organization and the employees. The performance appraisal defines the overall performance of the employees toward the job by comparing between the actual performance and the standard performance.
- 4. Uses/Advantages of performance appraisal • Promotion and transfer decision • Training and development decision • Reward and punishment decision • Compensation, pay and fringe benefit decision • Performance feedback • Improvement in understanding • Making correct decisions • Providing guidance to correct the mistakes and employees development. • Flow of effective communication
- 5. Performance Appraisal Process 1. Establishment of Standard performance 2. Communicating the standard performance 3. Measurement of actual performance. 4. Comparing the actual performance with the standard performance. 5. Taking the corrective actions
- 6. Technique/Methods/procedure of PERFORMANCE APPRAISAL 1. Assessment Center method: An Assessment centers is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The main idea is to evaluate managers over a period of time observing their behaviour across a series of selected exercises or work samples. Assesses (participants) take part in work groups, computer simulations, role playing and other similar activities which requires the same attributes for successful performance, as in the actual job.
- 7. The typical assessment centre includes assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making , sensitivity to the feeling of others, administrative ability, creativity and mental alertness.
- 8. 2. Management By Objective(MBO): Under this methods of performance appraisal the objectives of each and every employees towards the works they can perform is known and asked by the management. The rating is done of the performance against the achievement of objectives stated by the management. The MBO follow • Establish goals and desired outcomes of each employees. • Setting the performance standards. • Compare the actual performance with standard performance. • New goals and stratregy formulation for unaccomplished goals.
- 9. 3. Behaviourally Anchored Rating Scales(BARS): It is also called behavioural expectation scale in which as per the statements of effective and ineffective behaviours plays a vital role in determining scales points .In this actual job behaviour of an employee is evaluated against the predetermined behaviour. A range of descriptive statements of behaviour varies from the least to the most effective.
- 10. 4. 360 Degree appraisal: It is another methods of performance appraisal in which multiple raters are involved in evaluating performances of an employees.It is a systematic collection of performance data on an individual or group, derived from a number of stakeholders like supervisors, team members, peers, customers, and self. It provides a broader perspective about an employees performances and self development of the employees. It makes the employees much more accountable to his /her internal or external customers.
- 11. 5. Rating scales: This is the most simplest and most popular techniques used by the management for the performance appraisal. The rating scales consists of severals numerical scales each representing job related performance like dependability, initiative, output, attendance, cooperation and many more. Each scales ranges from excellent to poor.
- 12. 6. HR Accounting Methods: It is a methods of performance appraisal which evaluates performance from the monetary returns the employees yields to his/her organization. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her.