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Performance Appraisal

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HRM functions

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  • 1. Performance Appraisal
    Submitted by:-
    Shantanuroy
    RBS BANGALORE
  • 2. CONCEPT
    Evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee
  • 3. DEFINITION
    “performance appraisal is a formal assessment and rating of individuals by their managers at-usually-an annual review meeting”
    - Michael Armstrong
  • 4. OBJECTIVES
     
    Setting performance standards
    Evaluating employee performance
    Identifying training and developmental needs
    Rewarding performance
    Improving performance
     
  • 5. Setting
    performance
    standards
    Taking corrective
    standards
    Communicating
    standards
    Discussing
    results
    Measuring
    standards
    Comparing
    standards
    PROCESS OF PERFORMANCE APPRAISAL
  • 6. THE APPRAISAL PROCESS
     
    Determining performance standards
    Measuring performance of the employees
    Providing regular feedback to employees
    Communicating results to employees
    Rewarding and developing employees
  • 7. METHODS USED IN PERFORMANCE APPRAISAL PROCESS
    Management by objectives
    360- DEGREE FEED-BACK
    Graphic Rating Method
    Behaviorally Anchored Rating Scales (BARS)
  • 8. MANAGEMENT BY OBJECTIVES
    Clear and well defined goals
    Goals set with the active participation of the employees
    Used for managers and professionals
    In alignment with organizational goals
  • 9. 360- DEGREE FEED-BACK
    The employees performance is evaluated by his supervisor, his peers, his internal/external customers, his internal/external suppliers and his subordinates
  • 10. GRAPHIC RATING METHOD
    Includes numerical ranges and written description
    Rating quality and quantity of work
    Disadvantages are…
    Choice of employee behavior categories
    Interpretation of description
  • 11. Graphic Rating Scale
    Employee name_________ Deptt_______
    Rater’s name ___________ Date________
    ------------------------------------------------------------------------
    Exc. Good Acceptable Fair Poor
    5 4 3 2 1 _
    Dependability
    Initiative
    Overall output
    Attendance
    Attitude
    Cooperation
    Total score Continuous Rating Scale
  • 12. Behaviorally Anchored Rating Scales (BARS)
    Concentrate on behavioral traits demonstrated by the employees instead of actual performance
  • 13. BARS( behaviorally Anchored rating scale)
    Step 1. Identify critical incidents
     
    Step 2. Select performance dimension
     
    Step 3. Retranslate the incidents
     
    Step 4. Assign scales to incidents
     
    Step 5. Develop final instrument
  • 14. Pitfalls in performance appraisal
     
    Halo effect: Appraising based on single characteristic.
    Horn Effect : The raters bias is in the other direction, where one negative quality of the employee is being rated harshly.
    Leniency effect : Depending on rater’s own mental make-up at the time of appraisal , raters may be rated very leniently.
    Stringency effect : Depending on rater’s own mental make-up at the time of appraisal, raters may be rated very strictly
    Recencyeffect : The rater gives greater weightage to recent occurrences than earlier performance.
  • 15. Primacy effect ( First Impressions ) : The appraiser’s first impression of a candidate may colour his evaluation of all subdequent behavior.Central tendency effect : An Alternative to the leniency effect. Which occurs when appraisers rate all employees as average performers.Stereotyping : It is a mental picture that an individual holds about a person because of that person’s sex, age, religion, caste etc.,
  • 16. USES OF PERFORMANCE APPRAISAL
    Training and development needs
    Improving organizational effectiveness
    Compensation management
    Transfer and promotions
    Identifying competency and skills
     
  • 17. THANKS
    TO
    ALL