Performance appraisal in Human Resource Management


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Performance appraisal in Human Resource Management

  2. 2. What Appraisal Is  Performance appraisal is a formal, structured system of  measuring and  evaluating an employee’s job related behaviors and their potential for greater contributions to the organizations 2Preji M P,Assistant Professor, IITTM, Bhubaneswar
  3. 3. Purpose of Appraisal  The purpose of appraisal is to ascertain an individuals present and the future value of the organization.  Employee’s present value  is assessed by his past performance, while  future value is determined by his present potential. A good appraisal will bring into light these aspects 3Preji M P,Assistant Professor, IITTM, Bhubaneswar
  4. 4. Critical aspects  Performance must be linked to results  Performance is tied to results ( that produces results)  Behavior can be active or passive (not doing something can also bring results) 4Preji M P,Assistant Professor, IITTM, Bhubaneswar
  5. 5. Some dilemmas  Many performance appraisal system confuse performance with personality traits ( honesty, punctuality, patience etc)  However personality traits should be a function of recruitment and selection and not performance appraisal. A person with out those traits should not be hired at all. 5Preji M P,Assistant Professor, IITTM, Bhubaneswar
  6. 6. Performance appraisal  Performance appraisal on the other hand is concerned with behaviors that effect performance  Behaviors such as punctuality, cost consciousness and sociability are important but it is the result of those behaviors that matters in a performance appraisal and not the behaviors themselves. 6Preji M P,Assistant Professor, IITTM, Bhubaneswar
  7. 7. Concept of Performance appraisal  To summarize performance appraisal is concerned with work that is performed and not the characteristics of the person who is performing it 7Preji M P,Assistant Professor, IITTM, Bhubaneswar
  8. 8. Benefits of Performance appraisal  Performance appraisal feed other development programs such as career plans and succession plans  It also helps in reviewing and improving upon recruitment and selection methods adopted  It is used to compensate and reward ( increments, incentives, bonus etc)  Ascertain staffing decisions such as promotions, transfers etc 8Preji M P,Assistant Professor, IITTM, Bhubaneswar
  9. 9. Long term benefits  Performance management  Relative value of the individuals contribution to the organizational goals  Performance improvement  It encourages continued successful performance and identifies weaknesses for improvement in order that employee becomes more effective and productive  Compensation  It rewards employee according to their performance 9Preji M P,Assistant Professor, IITTM, Bhubaneswar
  10. 10. Long term benefits  Identifies potential  It identifies employees that can be developed for higher responsibilities  Communication  It establishes a dialogue between the superior and subordinate on a regular basis to improve on contributions  Feedback  It let an employee know what they are doing. This gives emotional security and a chance to make corrections if needed while taking pride of achievements 10Preji M P,Assistant Professor, IITTM, Bhubaneswar
  11. 11. Long term benefits  Development  It provides the framework for purposeful human developmental inputs.  Human resource planning  It helps the organization take stock of human capabilities and the knowledge and skill wealth that it has 11Preji M P,Assistant Professor, IITTM, Bhubaneswar
  12. 12. Techniques of appraisals  Management by objectives ( MBO)  180 degree and 360 degree assessment  Appraisal interview’s  Performance counseling 12Preji M P,Assistant Professor, IITTM, Bhubaneswar
  13. 13. MBO  MBO is an approach in management. It puts goals and objectives at the heart of the style of management. The philosophy of the people is  All people are responsible  Individuals and organizations can grow together  Assessment of performance should be transparent  Human potential is vital for success 13Preji M P,Assistant Professor, IITTM, Bhubaneswar
  14. 14. MBO  The main fault of other appraisal system is the element of subjectivity like trait method.  If it is based on MBO – it will be linked to outcomes resulting in finding answers to questions like  Were the standards not met?  Was there a loss in revenue ?  Were services not delivered on time?  Was there any wastage of money and if so how much and because of what? 14Preji M P,Assistant Professor, IITTM, Bhubaneswar
  15. 15. 180 DEGREE & 360 DEGREE  This system (180 degree) believes that every individual is responsible to give the same amount of attention to internal customers (colleagues) as they would do it for external customers  This has become a formula for team work.  It believes that internal people who are the most influenced by a job position must be able to give a feedback on  whether they are getting the right service and cooperation from a job position that helps them to perform high standards 15Preji M P,Assistant Professor, IITTM, Bhubaneswar
  16. 16. CONTD:-  Eg:- 180 degree  Front office receptionist – coordinates with the telephone operator, reservationist, front office cashier, housekeeping supervisor and bell captain.  180 degree assessment system makes peers assess his/her performance in addition to their immediate superior.  it is considered as a reasonable stepping stone to the 360 degree system. 16Preji M P,Assistant Professor, IITTM, Bhubaneswar
  17. 17. 360 degree appraisal 17Preji M P,Assistant Professor, IITTM, Bhubaneswar
  18. 18. 360 Degree  360 degree assessment includes the subordinates as well. Through this a person’s leadership is also assessed.  An organization's culture need to be matured enough and transparent to adopt a 360 degree assessment because nobody normally likes to be assessed by juniors. 18Preji M P,Assistant Professor, IITTM, Bhubaneswar
  19. 19. 19Preji M P,Assistant Professor, IITTM, Bhubaneswar
  20. 20. “Full-circle” feedback  360 degree feedback is also known as ‘full-circle’ feedback, multi-rater feedback, upward & downward appraisal and peer review.  It involves being appraised by ‘multi-sources’ such as  peers,  subordinates,  managers,  customers,  as well as self. 20Preji M P,Assistant Professor, IITTM, Bhubaneswar
  21. 21. Rationale  The rationale behind the use of 360-degree feedback is that it is hard to discount the views of just one person, which normally represented by a line manager.  It is normally used as a learning and development aid in order to give individuals  better information about their skills, performance, and working relationships than more traditional appraisal arrangements based on line managers’ assessment alone. This is all well and good if 360 degree done correctly 21Preji M P,Assistant Professor, IITTM, Bhubaneswar
  22. 22. APPRAISAL INTERVIEW  The appraisal interview is the occasion when  a superior and subordinate meet to discuss the performance of the subordinate in a given period.  To make the meeting successful, both the superior and subordinate have to prepare for it believing that it is an important moment for  both- the individual and the organization. 22Preji M P,Assistant Professor, IITTM, Bhubaneswar
  23. 23. SUPERIOR’S TASK  Inform the subordinate of the date and time of the interview. The time must be convenient to both as neither must be under pressure.  Advice the subordinate to come to the meeting with their self assessment  Honour the allotted interview time  Review personally the performance record of the individual 23Preji M P,Assistant Professor, IITTM, Bhubaneswar
  24. 24. Subordinate’s Task  Review the objectives set and evaluate the achievements in the past performance period. List the outstanding achievements in self assessment forms.  List reasons for not meeting some of the targets set.  Complete the self assessment forms which also elicits the career aspirations, strengths, areas of improvement, training and development required. 24Preji M P,Assistant Professor, IITTM, Bhubaneswar
  25. 25. The appraisal Interview  Typically the interview will have the following phases.  Re explaining the purpose of meeting  Discussing performance  Identifying the strengths and areas of improvement  Reviewing career aspirations and recording development plans 25Preji M P,Assistant Professor, IITTM, Bhubaneswar
  26. 26. Emphasis will be on  It is meant to review past and record future directions  All about individual and how to improve one’s potential  It will be an open discussion  Disagreement will be recorded 26Preji M P,Assistant Professor, IITTM, Bhubaneswar
  27. 27. How It goes on  Normally an appraisal interview should go on smoothly because the superior and subordinates are in close communication during the performance year.  Quarterly reviews and mid-yearly reviews reduce the element of shock  Subordinate is given a chance to discuss their performance first based on self assessment form. Both then tally their perception against performance. 27Preji M P,Assistant Professor, IITTM, Bhubaneswar
  28. 28. How it works  There should be little difference/ disagreement  if performance is supported with actual data against standards.  The superior will discuss the rating that they are going to give. Disagreements if any, will be recorded for review by second appraiser.  Both will finally review the career plans by recording the programes (training, coaching inputs , self learning) attended and future inputs required against expected performance 28Preji M P,Assistant Professor, IITTM, Bhubaneswar
  29. 29. PERFORMANCE COUNSELLING  Performance counseling is a  one –one interaction between an employee and the counselor.  The basic objective is to improve the performance and address the grievance if any  Such a meeting takes place if a deficiency in the way employee is performing is identified. 29Preji M P,Assistant Professor, IITTM, Bhubaneswar
  30. 30. The sources  The deficiency in employee performance can be reported from any of the following sources  The supervisor’s opinion  A shortfall in agreed outcomes  Customer complaints  Colleagues grievances  Procedural irregularities  Equipment abuse 30Preji M P,Assistant Professor, IITTM, Bhubaneswar
  31. 31. The scenario  Typically most employees tend to blame  Boss  Non cooperation from team members  Faulty systems and procedures  Faulty equipment  Unreasonable guests 31Preji M P,Assistant Professor, IITTM, Bhubaneswar
  32. 32. Options for improving performance  Coaching in some skills  Self- learning using recommended reading  Cross training  Team building  Attending training programs 32Preji M P,Assistant Professor, IITTM, Bhubaneswar
  33. 33. DEMOTIVATION ?  The employee and the counselor should be able to  identify exactly the reason for demotivation and jointly work on resolving hurdles.  There must be time bound meetings with follow up meetings. 33Preji M P,Assistant Professor, IITTM, Bhubaneswar
  34. 34. Some reasons for de motivation  Lack of capability to do job  Lack of challenges in the job  Lack of recognition and attention  Lack of future for advancement  Inadequate support  Poor team work 34Preji M P,Assistant Professor, IITTM, Bhubaneswar
  35. 35. REWARD AND RECOGNITION SCHEMES  A reward is a physical token of appreciation of service, effort or achievement . Rewards can be in the form of cash or in the form of non cash  Recognition is an official praise of service, effort or achievement.  An incentive is not considered as a reward most of the time as it is manipulative. Often uncommitted workforces needed incentives to perform. 35Preji M P,Assistant Professor, IITTM, Bhubaneswar
  36. 36. Non Cash Rewards  The non cash awards can be  Free vacation  Free meal  Memberships  Write off loans 36Preji M P,Assistant Professor, IITTM, Bhubaneswar
  37. 37. RECOGNITION  Recognition will always be done in public. It raises the status of the individual among his peers. It also raises his self esteem  A simple pat on the shoulder  Words of praise  Certificates of recognition  Gifts of recognition  Trophies of recognition 37Preji M P,Assistant Professor, IITTM, Bhubaneswar