Performance Appraisal Method AdoptedTopic By GACL Presented by Jay Visavadiya (11) Jigar Chauhan. (12) Manoj Sharma. (13) Submitted to :- Mrs. Shikha.
A performance appraisal A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employees recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. According to Michael Armstrong “Performance appraisal is a formal assessment & rating of individual by their managers, usually at annual review meeting.” Performance can be defined as the degree of accomplishment of tasks by an employee in his job. In some organizations it is measure of the result achieved & target
The Appraisal ProcessESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees.COMMUNICATING THE STANDARDS Once standards are set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them.MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees i.e. the work done by the employees during the specified period of time. It is a continuous process of monitoring the performance throughout the year
The Appraisal ProcessCOMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set.DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus.DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
Performance Appraisal MethodsA. Management by objective or goal setting.B. Graphic rating scale.C. Work standard approach.D. Essay appraisal.E. Critical incidence method.F. Forced choice rating method.G. Point allocation method.H. Ranking method.I. Check list.J. Behavioral anchored rating scale.(BARS)K. 360 degree performance appraisal.L. Team appraisal.M. Balanced scorecard method.
Performance Appraisal Methods–1MANAGEMENT BY OBJECTIVE (MBO) The main aspect of MBO is clear & well defined goals, a definite time span to achieve the goals, action plan & finally, timely & constructive feedback. It is also called a goal setting approach; MBO is more commonly used for managers & professionals.GRAPHIC RATING SCALE This method of appraisal requires the rater to rate the employee on factors like quantity & quality of work, job knowledge, dependability, punctuality, attendance etc. This method is also used for performance appraisal of employees. They check their employees daily by using this method.WORK STANDARD APPROACH This method of appraisal is more suitable in a manufacturing scenario, where the goals are pre determined work standard. These work standards can be set based on the average output of a typical employee
Performance Appraisal Methods–2ESSAY APPRAISAL In the essay appraisal method, the appraiser prepares a document describing the performance of the employees. Questions or guidelines are provider to the appraiser based on which analyses & describes the employees‟ performance.CRITICAL INCIDENT METHOD In this method of performance appraisal, the appraiser makes a note of all the critical incident that reflect the performance & behavior of the employee during the appraisal period. These are recoded as & when they occur & can demonstrate either positive or negative traits or performance.FORCED CHOICE RATING METHOD In this method the appraiser is required to assign ranks to different attributes are all seemingly positive, but have different weights which are unknown to the appraiser. Once the employees‟ attributes are ranked the human resource department applies the weights & arrives at
Performance Appraisal Methods–3POINT ALLOCATION MATHOD In this method of appraisal, the appraiser has to allocate points to different members in his team. He has at disposal , a specific number of points which he has to distribute among his team members, based on their performance during the appraisal period.RANKINNG METHOD There are three commonly used methods of ranking namely alternation, paired comparison & forced distribution. The first two methods are used when there are only a few employees to be ranked, whereas forced distribution method is used in large companies which have thousands of employees.CHECKLIST In this method the rater has to respond „yes‟ or „no‟ to a set of questions which assess the employee‟s performance & behavior. Normally weights are attached to each of these questions based on which the final appraisal score of the employee is calculated.
Performance Appraisal Methods–4BEHAVIOR ANCHORED RATING SYSTEM (BARS) BARS concentrates on the behavioral traits demonstrated by the employees instead of his actual performance. Some of the other methods like graphic rating scale & checklist also measure the behavior based on the assumption that desirable behavior result in effective performance.360 DEGREE PERFORMANCE APPRAISALS A 360 degree appraisal system aims at a comprehensive & objective appraisal of employee performance. In a 360 degree appraisal system the employees‟ performance is evaluated by his supervisor, his peers, his internal external customers, his internal external suppliers & his subordinates. This system reduces the subjectivity of a traditional supervisor appraisal.TEAM APPRAISAL In the new economy era, where team work is essential for any venture to succeed, team appraisal has emerged as one of the best tool for the
Performance Appraisal Methods–5BALANCED SCORECARD The balanced scorecard as a method of measuring performance channelizes the efforts of people to achieve organizational goals. The implementation of balanced scorecard involve formulating a strategy & deciding what each employee needs to do to achieve the objectives based on strategy.
Performance appraisal process atGACLPAR in respect of an employee is required to be assessed by levelsindicated below□ By the reporting officer under whom employee is working.□ By the reviewing officer.□ The reporting officer for writing PAR of an employee of class III/IV and E- 0 level category will be the executive under whose control the employee is working. The reviewing officer will be of one grade above the grade of reviewing officer. The PAR‟s in respect of class III/IV employees duly reviewed is maintained at Region/Institute/Headquarters group wise in the concerned establishment section.□ The performance appraisal of the executive up-to E-4 level i.e. manager and equivalent would be reviewed by the functional head/GM/CGM not less than E-7.□ The performance appraisal reports of executives of E-5 level i.e. chief manager and equivalent will be reviewed by the RD/ED/Nominee of the
Performance appraisal process atGACL□ The performance appraisal reports of executives of E-6 level i.e. Deputy general manager and above will be submitted to concern functional Director for final review and acceptance.□ As regards E-7 and above all such reports which are received from Regions/Institutes/Headquarters are maintained at Chairman-cum- managing Director‟s office. The reviewing officer will be the officer to whom the executive reports for his day to day work. Review of the PAR will be done by the executives to whom the reporting officer is responsible for his functions. Accepting authority will be the executive higher than the reviewing officer at different levels depending upon the nature of the grades as per delegation of powers in PAR rules.
Performance Appraisal Format –11) Personal details of the individual being appraised.2) Than appraisee is required to mention the tasks achieved in the appraisal period including enabling and constraining factors. These achievements are then rated by the individual itself and the appraiser.3) Now appraiser conduct performance appraisal on the basis of Key Result Areas and a certain weightage is assigned to each. Following are the Key Result Areas: 1) Performance in respect to volume – 40. 2) Quality of output – 30. 3) Timeliness of jobs completed – 30. The total of the score gained by the individual is noted and termed as (P)4) Potential of the candidate is appraised on the scale of 1 to 5 keeping the existing role as well as future positions in perspective. Scale 1 to 5 is given for (1-poor, 2-fair, 3-good, 4-very good, 5-
Performance Appraisal Format –2Potential is appraised on the basis of following traits: Result oriented approach. Willingness to accept challenges. Diligence and reliability. Initiative. Professional competence. Communication skills. Commitment and dedication. Personal conduct and discipline. Leadership. Inter personal relationshipTotal of score gained by an individual in this section is again noted andtermed as (Q)
Performance Appraisal Format –35) Total score(S) is calculated as : S = a * P + b * 2 * Q Where a & b are weightages for performance and potentials. This weightage is as per the level. The grading system Level a b A+ 95 and above E1 0.9 0.1 A 85 and above but less than 95 E2 0.8 0.2 A– 75 and above but less than 85 E3 0.7 0.3 B+ 65 and above but less than 75 E4 0.6 0.4 B 55 and above but less than 65 E5 0.5 0.5 C 45 and above but less than 55 E6 0.4 0.6 D less than 45
Performance Appraisal Format –4 The final grade given by the accepting authority after detailed and due consideration to the rating by the 1st and 2nd appraisers, will be the decisive grade of the appraisee executive. In case this final rating is different from those of the 1st and 2nd appraiser, adequate justification must be mentioned by the accepting authority. There must be adequate explanation by the 1st and 2nd appraisers and the accepting authority for any grade assigned to the appraisee. In the absence of adequate explanation the report will be considered incomplete and returned back to the appraisers for confirming to the directives contained in the instructions.