The Performance Appraisal System.

The Appraisal System.Concepts of Appraisal & Appraisal Methods Presenters: [Group 2] Roll Nos. ARKAPAL SIL 09 ARUN MOHTA 12 BINIT KUMAR DAS 14 ARPO MUKHERJEE 11 ADITYA SINGH BAIS 13 ANKUR ANAND 08

CONTENTSDefinitionsMeaningObjectives of Performance AppraisalMethods of Performance Appraisal360 degree performance appraisalIssues in appraisal systemAdvantagesDisadvantagesConclusion

DefinitionsAccording to Newstrom, “It is the process of evaluatingthe performance of employees, sharing thatinformation with them and searching for ways toimprove their performance’’.

Meaning Performance appraisal is the step where themanagement finds out how effective it has been athiring and placing employees . A “Performance appraisal” is a process ofevaluating an employee’s performance of a job in termsof its requirements.

Objectives of Performance Appraisal According to: Employee OrganizationConcrete and tangible Measuring the efficiencyparticulars about their work Maintaining organizationalAssessment of control.performance Aims at: Mutual goals of the Personal development employees & the organization. Work satisfaction Growth & development Involvement in the Increase harmony & enhanceorganization. effectiveness

Methods of Performance Appraisal Traditional Methods Modern Methods 1. Paired comparison 1. Assessment Center 2. Graphic Rating scales 2. Appraisal by Results or 3. Forced choice Description method Management by 4. Forced Distribution Method Objectives 5. Checks lists 3. Human Asset 6. Free essay method Accounting 7. Critical Incidents 4. Behaviorally Anchored 8. Group Appraisal Rating scales 9. Field Review Method 10.Confidential Report 11.Ranking

Paired Comparison Method• Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair.• It is useful where priorities are not clear• This method is not appropriate if a large number of employee are required to be evaluated.

Ranking employees by paired comparison Method For the Trait “Quality of For the Trait “Creativity” work” Person rated Person ratedAs compared to A B C As compared to A B C A - + + A + - + - + - + + + B + - + B -- ++ - - - + - C ++ -- + + C ++ -+ + -

Graphic or Linear Rating Scales• A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait.• It includes the employee characteristics and employee contribution

Graphic or Linear Rating Scales Attitude 0 5 10 15 20No interest Careless: Interested in Enthusiasti EnthusiasticIn work: In-different work: c about job opinions &consistent Instructions Accepts & advicecomplainer opinions & fellow- sought by advice of workers others othersDecisiveness 0 5 10 15 20Slow to Take Takes Take Taketake decisions decisions decisions in decisionsdecisions after careful promptly consultation without consideration with others consultation whose views he values

Forced choice methodCriteria Rating1.Regularity on the job Most Least•Always regular•Inform in advance for delay•Never regular•Remain absent•Neither regular nor irregular

Forced distribution methodNo.of 40% 20%employees 10% 20% 10% poor Below average good Excellent average Force distribution curve

Critical Incident methodEx: A fire, sudden breakdown, accidentWorkers Reaction scaleA Informed the supervisor immediately 5B Become anxious on loss of output 4C Tried to repair the machine 3D Complained for poor maintenance 2E Was happy to forced test 1

Specimen of Staff Assessment Form [Descriptive Essay Type] Staff AppraisalName . . . . . . . Job Title . . . . . . .Department . . . . . . . . . . . . Date of Review . . . . . . .Age . . . . . .. . Years in present jobSection I Appraisal Of PerformanceNote to Appraiser1. Appraisal must cover the period of the preceding 12 months2. Consideration to every function & responsibility of the job3. An objective factual assessment of an employee’s improvement or deteriorationSection II Promotability & PotentialPromotability1. Promotion now2. Within 2 years3. Within 5 years4. Unlikely to qualify for promotionSection III Career DevelopmentSection IV Notes on Interview with employeeSection V Comments on & Endorsement by Reviewing Authority

Field review methodPerformance subordinate peers superior customerDimensionLeadership ^ ^Communication ^ ^Interpersonal skills ^ ^Decision making ^ ^ ^Technical skills ^ ^ ^Motivation ^ ^ ^

Management By ObjectivesThe MBO concept, as was conceived by Drucker, reflecteda management philosophy which values and utilizesemployee’s contributions. Application of MBO in the fieldof performance appraisal is a very recent thinking.

MBO ProcessSet organizational goalsDefining performance targetPerformance reviewFeedback

Behavioral Anchored Rating Scales Performance Points BehaviorExtremely 7 Can expect trainee to make valuable suggestionsgood 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

Examples of 360 degree performance appraisal methodThese companies are using 360 DegreePerformance Appraisal MethodWipro Maruti UdyogInfosys HCL TechnologiesReliance Industries Wyeth Consumer Health (WCH)

Issues in appraisal system Formal and informal What methods? Whose performance?When to evaluate? Appraisal Who are the raters? Design What problems? What to evaluate? How to solve?

Advantages Provide a record of performance over a period of time.Can be motivational Provide anwith the support of a opportunity for agood reward and manager to meet &compensation discuss performance Provide an opportunity for an Provide the employee employee to discuss with feedback about issues and to clarify their performance expectations

Disadvantages If not done appropriately, can be a negative experience.Very timeconsuming, especially for amanager Subject to rater errors & biases.If not done right can be acomplete waste of time. Can be stressful for all involved

Conclusion Because many of the more conventional performance appraisal methods have often proved unpopular with those being appraised and evaluators a like, 360 is gaining popularity with many managers and employees. It offers a new way of addressing the performance issue. When used with consideration and discipline, feedback recipients will feel that theyre being treated fairly. In addition, supervisors will feel the relief of no longer carrying the full burden of assessing subordinate performance. The combined effect of these outcomes should result in increased motivation, which in turn improves performance.

The Performance Appraisal System.

by Binit Das

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