Limitations of performance appraisal system

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ABOUT performance appraisal system & Limitations of performance appraisal system

ABOUT performance appraisal system & Limitations of performance appraisal system

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  • 1. 1Limitations of PerformanceAppraisal SystemByManisha Vaghela
  • 2. Limitations of Performance Appraisal System 2FLOW OF PRESENTATION1.)Introduction of Performance Appraisal System2.)What is a Performance Appraisal?3.)Definition of Performance Appraisal System4.)Limitations of Performance Appraisal System5.)Conclusion6.)Review of the Topic7.)Bibliography Prepared By :-Manisha Vaghela
  • 3. 3Introduction of PerformanceAppraisal SystemPerformance Appraisal is the systematicevaluation of the individual with respect tohis or her potential for development. Prepared By :-Manisha Vaghela
  • 4. Limitations of Performance Appraisal System 4• Performance Appraisal is the formal conclusion to a performance management process at the end of a prescribed term.• Prescribed terms may be any length but are usually a 12 month period. Prepared By :-Manisha Vaghela
  • 5. Limitations of Performance Appraisal System 5 The Performance Appraisal process involvesan interview between a staff member and theirmanager where the objectives and deliverablesfor the staff member are reviewed, and anoverall assessment of the staff membersperformance is agreed. It must be understood that a PerformanceAppraisal is only a component part of aPerformance Management System. Many peopleconfuse the two and interchange theterminology. Prepared By :-Manisha Vaghela
  • 6. Limitations of Performance Appraisal System 6• Feedback is an important component of performance appraisal. While positive feedback is easily accepted, negative feedback often meets with resistance unless it is objective, based on a credible source and given in a skilful manner. Prepared By :-Manisha Vaghela
  • 7. Limitations of Performance Appraisal System 7What is a PerformanceAppraisal?• A performance appraisal is an evaluation of job performance over a period of time. It is basically an annual report card on an employee and how they performed over the prior year.• Unfortunately not all performance appraisal processes are the same and some are designed to not only fail, but to create a negative experience for both the employee and the manager. Prepared By :-Manisha Vaghela
  • 8. Limitations of Performance Appraisal System 8• Performance Appraisal is the formal, systematic assessment of how well employees perform their jobs in relation to established standards . Prepared By :-Manisha Vaghela
  • 9. Limitations of Performance Appraisal System 9DEFINITION OF PERFORMANCEAPPRAISAL SYSTEM1.)The process by which a manager or consultant examines and evaluates an employees work behavior by comparing it with preset standards, documents the results of the comparison, and uses the results to provide feedback to the employee to show where improvements are needed and why. Prepared By :-Manisha Vaghela
  • 10. Limitations of Performance Appraisal System 102.)Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.3.)Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. Prepared By :-Manisha Vaghela
  • 11. 11LIMITATIONS OF PERFORMANCEAPPRAISAL SYSTEM Prepared By :-Manisha Vaghela
  • 12. Limitations of Performance Appraisal System 121. Halo effect :-• In this case the superior appraises the person on certain positive qualities only. The negative traits are not considered. Such an appraisal will no give a true picture about the employee. And in some cases employees who do not deserve promotions may get it. Prepared By :-Manisha Vaghela
  • 13. Limitations of Performance Appraisal System 132. Horn effect :-• In this case only the negative qualities of the employee are considered and based on this appraisal is done. This again will not help the organization because such appraisal may not present a true picture about the employee. Prepared By :-Manisha Vaghela
  • 14. Limitations of Performance Appraisal System 143. Central tendency :-• In this case the superior gives an appraisal by giving central values. This prevents a really talented employee from getting promotions he deserves and some employees who do not deserve any thing may get promotion. Prepared By :-Manisha Vaghela
  • 15. Limitations of Performance Appraisal System 154. Leniency and strictness :-• Some bosses are lenient in grading their employees while some are very strict. Employee who really deserves promotions may loose the opportunity due to strict bosses while those who may not deserve may get benefits due to lenient boss. Prepared By :-Manisha Vaghela
  • 16. Limitations of Performance Appraisal System 165. Spill over effect :-• In this case the employee is judged +vely or – vely by the boss depending upon the past performance. Therefore although the employee may have improved performance, he may still not get the benefit. Prepared By :-Manisha Vaghela
  • 17. Limitations of Performance Appraisal System 176. Fear of loosing subordinatesand spoiling relations :-• Many bosses do not wish to spoil their relations with their subordinates. Therefore when they appraise the employee they may end up giving higher grades which are not required. This is an injustice to really deserving employees. Prepared By :-Manisha Vaghela
  • 18. Limitations of Performance Appraisal System 18 7. Goodwill and techniques to be used :-• Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly when different departments in the same company use different methods of appraisal it becomes very difficult to compare employees. Prepared By :-Manisha Vaghela
  • 19. Limitations of Performance Appraisal System 198.Lack Of Clarity:- The objective of performance appraisal is to evaluate and develop employees. An organization should avoid using one appraisal system to achieve both objectives. The particular system of the appraisal system should clarify Prepared By :-Manisha Vaghela
  • 20. Limitations of Performance Appraisal System 20before it is designed and should be discussedwith all managers and employees to gain their commitment. Any performance appraisalsystem, however good the design, is unlikely tosucceed if the managers and employees aresuspicious of its objectives. Prepared By :-Manisha Vaghela
  • 21. Limitations of Performance Appraisal System 21CONCLUSION• Finally ,a performance appraisal is only as good as the performance management, system it is part of. If an organization merely does performance appraisals for the sake of doing them, they are wasting their time. But if they strategically incorporate performance management into their strategic plan to implement business goals, they will provide a process to accomplish those goals.• It is a powerful tool to calibrate, refine and reward the performance of the employee. Prepared By :-Manisha Vaghela
  • 22. Limitations of Performance Appraisal System 22REVIEW OF THE TOPIC1.)Introduction of performance appraisal system2.)What is a performance appraisal?3.)Definition of performance appraisal system4.)Limitations of performance appraisal system5.)Conclusion Prepared By :-Manisha Vaghela
  • 23. Limitations of Performance Appraisal System 23Bibliography1.) Human Resource Management-C.B.Gupta Sultanchand & Sons2.)Human Resource &Personnal Management- K.Aswathappa Tata Mc Graw hill Prepared By :-Manisha Vaghela
  • 24. Limitations of Performance Appraisal System 243.) Management of Performance Appraisal. By Monga, M. L. 1983. Bombay: Himalaya Publishing House.4.) Performance Appraisal Theory and Practice. By Rao, T. V. 1985. New Delhi: Vikas Publishing House.5.)www.google.com - www.appraisal-smart.com -www.soft tech.com -www.newmanglobal.biz Prepared By :-Manisha Vaghela
  • 25. Limitations of Performance Appraisal System 25Prepared By :-Manisha Vaghela
  • 26. 26Prepared By :-Manisha Vaghela