SlideShare a Scribd company logo
1 of 28
PERFORMANCE APPRAISAL
HUMAN RESOURCE MANAGEMENT
INDEX
 INTRODUCTION
 DEFINITIONS
 OBJECTIVES
 SIGNIFICANCE AND LIMITATIONS
 METHODS OF PERFORMANCE APPRAISAL
 TRADITIONAL METHODS
 MODERN METHODS
 STEPS IN PERFORMANCE APPRAISAL
INTRODUCTION
Performance Appraisal (PA) is a method by which
the job performance of an employee is evaluated.
In other words, Performance Appraisal is a review of
an employee's performance of assigned duties and
responsibilities. The appraisal measures skills and
accomplishments with reasonable accuracy and
uniformity. It provides a way to help identify areas
for performance enhancement and to help promote
professional growth.
DEFINITIONS
According to Edwin Flippo, "Performance Appraisal
is the systematic, periodic and impartial rating of an
employee's excellence, in matters pertaining to his
present job and his potential for a better job.”
According to Dale Beach, "Performance Appraisal is
the systematic evaluation of the individual with
regards to his or her performance on the job and
his potential for development.”
OBJECTIVES
 Record employee’s performance to determine
wages and incentive pay.
 Identify employees who have been placed on
wrong jobs to transfer them to jobs for which they
are better suited.
 Facilitate employee to know his performance level
and take steps to develop himself
 Locate employees with adequate potential for
promotion and development.
 Identify strengths and weaknesses of employees.
 Determine the training and development needs of
the employees.
SIGNIFICANCE
 Performance evaluation
 Guiding employees to perform efficiently
 Human resource planning
 Employee training and development decisions
 Evaluation of effectiveness of training programmes
 Promotions, transfers and lay-offs decisions
 Compensation decisions: Increments and
Incentives
 Performance feedback
LIMITATIONS
 If the factors included in assessment are irrelevant,
the result of performance appraisal will not be
accurate.
 Different qualities to be rated may not be given
proper weightage in certain cases.
 Some of the factors are highly subjective like
initiative and personality of the employees because
of which performance rating may not be on
scientific lines.
 Supervisor may be guided by their personal
emotions and likes.
METHODS OF PERFORMANCE
APPRAISAL
There are various methods of merit rating which may be
classified into:
 Traditional Methods – They are very old
techniques of performance appraisal based on
standards of personal qualities or traits such as
attitude, initiative, loyalty, knowledge of job etc.
 Modern Methods – They are the latest methods of
appraisal used by modern organizations.
PERFORMANCE APPRAISAL
TRADITIONAL METHODS
CONFIDENTIAL REPORT
EMPLOYEE RANKING
FORCED DISTRIBUTION
GRAPHIC RATING SCALES
CHECKLISTS
CRITICAL INCIDENTS
ESSAY METHOD
GROUP APPRAISAL
MODERN METHODS
MANAGEMENT BY OBJECTIVES
BARS
360 DEGREE APPRAISAL
CONFIDENTIAL REPORT
This is an old and traditional method of rating the
employees. A confidential report is a report about
the employee. It is prepared by his immediate
superior. It contains information about the
employee's strengths, weaknesses, major failure
and achievements. It also contains information
about the employee's personality traits (qualities)
and about his behaviour. Confidential report is used
to take decisions about transfers, promotions, etc.
EMPLOYEE RANKING
Ranking method is the oldest and simplest method of
rating the employees. Here, all the employees who
are doing the same job are compared with each
other. Then, each employee is given a particular
rank, i.e. First Rank, Second Rank, etc. The best
employee is given the first rank, and the worst
employee is given the last rank.
However, It is difficult to adopt this method, in case of
evaluating large number of employees.
FORCED DISTRIBUTION METHOD
Forced distribution method forces the appraiser to fit
the employees being appraised into pre-determined
ranges of scale. In this system, the appraiser is
asked to distribute the employees into the
categories in such a way that 10% of men are in
group ‘outstanding’, 20% ‘above average’, 40%
‘average’, 20% ‘below average’ and 10% ‘poor’. It
eliminates the room for subjective judgement on the
part of supervisors.
GRAPHIC RATING SCALE METHOD
In Graphic Rating Scale Method, a graphic scale is used to rate the
degree to which the employee has achieved various characteristics.
Factors such as quality of work, quantity of work, dependability, etc.
are rated.
Graphic rating scale method is easy to understand and simple to use.
It also consumes less time. However, it involves a lot of paper work
and there are chances of bias by the rater.
CHECK-LISTS
In this method a dichotomous questionnaire containing
some statements about the employees behaviour on the
job is used. The rater has to tick mark "Yes" or "No" for
each statement. The main advantages of this method:
 It is simple,
 It is convenient,
 It takes less time, and
 it is very economical.
The main disadvantage of checklist method is that the
statements are structured, and it does not have depth
like the Critical Incident Method and the Essay Method.
CRITICAL INCIDENT
In Critical Incident Method, the supervisor writes a brief
report about any incident, which affects the
performance of the job. The incident may be positive or
negative. For e.g. A salesman is very patient with a
difficult customer, and he succeeds in selling the goods
to that customer. This is a critical incident. The
supervisor writes a brief report about this incident. This
report is in favour of the salesman, so the salesmen will
get a high rating.
This method has some disadvantages, as some
supervisors only record negative incidents. They do not
record positive incidents. Some supervisors are also
biased while recording the incidents.
ESSAY APPRAISAL
Essay is the simplest method of rating an employee.
Here, the rater writes in detail, the employee's
strengths, weaknesses and potential. He also gives
suggestions for improvement.
. The essay appraisal is often used along with other
types of appraisals, notably graphic rating scales.
They provide an opportunity for supervisors to
describe aspects of performance not thoroughly
covered by an appraisal questionnaire. The
disadvantage of this method is that their quality
depends on the supervisor’s writing skills.
MANAGEMENT BY OBJECTIVE (MBO)
According to George S. Odiorne, "Management by
objectives can be described as a process whereby
the superior and subordinate managers of an
organisation jointly identify its common goals,
define each individuals major area of responsibility
in terms of results and use these measures as
guides for operating the unit and assessing the
contribution of each of its member.“
It is philosophy of management that rates
performance on the basis of employee achievement
of goals set by mutual agreement of employee and
manager. The appraisal is based on whether or not
the employee has met his or her objectives.
BEHAVIORALLY ANCHORED RATING SCALE
(BARS)
In this method the employee's behavior and
performance dimensions are analyzed and used for
evaluating the performance of the employee. The
HR department is involved in the process of
preparing the BARS. Based on the Employee's
performance and behavior, employees are
anchored in different slots of good, average and
poor. The rater is required to give corresponding
ratings to the employee.
360 DEGREE FEEDBACK
A 360 Degrees Performance Appraisal is an
arrangement or practice in which workers get
confidential, unspecified feedback from the individuals
who work around them. This system has four major
integral components which include: self appraisal,
superior's appraisal, subordinate's appraisal and peer
appraisal. This process is also known as Multi-rater
Feedback. It is effective for career coaching and
identifying strengths and weaknesses. It provides a
comprehensive perspective of employee performance
STEPS IN PERFORMANCE APPRAISAL SYSTEM
DETERMINATION OF PURPOSE
ESTABLISHING THE CRITERIA OF PERFORMANCE MEASUREMENT
DETERMINATION OF FREQUENCY OF APPRAISAL
SELECTION AND TRAINING OF APPRAISER
DESIGNING OF APPROPRIATE FORMS
1. Determination of purpose: It includes determining the objectives for
performance appraisal.
2. Establishing the criteria of performance measurement: Standards of
performance should be set up to measure the performance of various individuals
on their jobs.
3. Determination of frequency of appraisal: Although it is a continuous
process, formal appraisal programmes are implemented one or twice a year. The
frequency of appraisal must also be determined.
4. Selection and training of appraiser: Appraiser must be sufficiently trained. It
is suggested that performance of one man should be appraised by two person
independently.
5. Designing of appropriate forms: It is important to keep proper results of
performance appraisal as they are used for many important decisions.
ESSENTIALS OF SOUND PERFORMANCE
APPRAISAL SYSTEM
 It must be simple to operate and easy to
understand.
 It must be performance based and uniform.
 Employees must be aware of performance in
terms of goals and targets.
 It should be devised in consultation with
subordinates.
 It must be designed to achieve specific objectives.
 Appraiser must be properly trained.
A STUDY ON PERFORMANCE APPRAISAL
SYSTEM AT
HCL ENTERPRISE
ABOUT THE COMPANY
HCL is a leading global Technology and IT Enterprise with
annual revenues of US$ 6.4 billion. The HCL Enterprise
comprises two companies listed in India, HCL
Technologies and HCL Infosystems.
The 37 year old Enterprise, founded in 1976, is one of
India's original IT garage start ups. Its range of offerings
span R&D and Technology Services, Enterprise and
Applications Consulting, Remote Infrastructure
Management, BPO services, IT Hardware, Systems
Integration and Distribution of Technology and Telecom
products in India. The HCL team comprises 91,000
professionals from diverse nationalities, operating across
31 countries.
PRESENT PERFORMANCE APPRAISAL SYSTEM
The Present Performance Appraisal system that is
been followed by the company is Managerial
Appraisal System.
The company is not following it frequently. It is
followed only at the period of probationary and
training period and it is also followed only for the
management levels.
PROCEDURE FOLLOWED
The procedure of the Performance Appraisal is as follows:
 Once the person is entering the probationary period for
one year, he will be given an Appraisal form and to fill
his performance and what he wants to improve and to
be trained;
 After this the person will be trained in his area of work
and he is entering the Probationary period; &
 Then after the completion of Probationary period he will
be again given an Appraisal form wherein, in this turn
the Appraisal form will be filled by the Person himself
and the Department head and will be confirmed for the
position.
SOURCE
 Google Images
 Wikipedia
 ‘Essentials of Human Resource Management’ By
T.N. Chhabra
 http://www.iosrjournals.org/iosr-jbm/papers/Vol9-
issue3/B0930823.pdf
 http://www.digitallibrary.ac.in/dspace/bitstream/1234
56789/1217/1/287.pdf
 http://www.hcl.in/
Performance Appraisal Methods

More Related Content

What's hot

What's hot (20)

Ppt performance appraisal
Ppt performance appraisalPpt performance appraisal
Ppt performance appraisal
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisal
 
Performance Appraisal and problems associated
Performance Appraisal and problems associatedPerformance Appraisal and problems associated
Performance Appraisal and problems associated
 
Performance appraisal
Performance  appraisalPerformance  appraisal
Performance appraisal
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Placement
PlacementPlacement
Placement
 
Job analysis-ppt
Job analysis-pptJob analysis-ppt
Job analysis-ppt
 
Job analysis
Job analysisJob analysis
Job analysis
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisal
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Management
 
Functions of HRM.ppt
Functions of HRM.pptFunctions of HRM.ppt
Functions of HRM.ppt
 
Recruitment
RecruitmentRecruitment
Recruitment
 
job analysis
job analysisjob analysis
job analysis
 
method of job evaluation
method of job evaluationmethod of job evaluation
method of job evaluation
 
staffing ,recruitment and selection
staffing ,recruitment and selectionstaffing ,recruitment and selection
staffing ,recruitment and selection
 
Selection process
Selection processSelection process
Selection process
 
ppt on Human resources management recruitment
ppt on Human resources management recruitmentppt on Human resources management recruitment
ppt on Human resources management recruitment
 
HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)
HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)
HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)
 
Job Evaluation
Job EvaluationJob Evaluation
Job Evaluation
 
STAFFING
STAFFINGSTAFFING
STAFFING
 

Viewers also liked

Performance appraisal methods
Performance appraisal methodsPerformance appraisal methods
Performance appraisal methodsMohammad Aamir
 
Performance Appraisal
Performance AppraisalPerformance Appraisal
Performance AppraisalRajesh Patel
 
The Performance Appraisal System.
The Performance Appraisal System.The Performance Appraisal System.
The Performance Appraisal System.Binit Das
 
Technical officer performance appraisal
Technical officer performance appraisalTechnical officer performance appraisal
Technical officer performance appraisalgracesamuel6
 
Perfomance evaluation ( group 4)
Perfomance evaluation ( group 4)Perfomance evaluation ( group 4)
Perfomance evaluation ( group 4)nurelveana
 
Процесс управления тарифной политикой на примере отдельного банка
Процесс управления тарифной политикой на примере отдельного банкаПроцесс управления тарифной политикой на примере отдельного банка
Процесс управления тарифной политикой на примере отдельного банкаИнфобанк бай
 
Performance appraisal ppt
Performance appraisal pptPerformance appraisal ppt
Performance appraisal pptDeeksha Tiwari
 
Cashier stocker performance appraisal
Cashier stocker performance appraisalCashier stocker performance appraisal
Cashier stocker performance appraisalmaxhernandez781
 
H R Professionals Business Coaching Guide
H R  Professionals  Business  Coaching  GuideH R  Professionals  Business  Coaching  Guide
H R Professionals Business Coaching GuideVanHalen
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisalSivaprasad,K I
 
Questionnaire on effectiveness of performance appraisal
Questionnaire on effectiveness of performance appraisalQuestionnaire on effectiveness of performance appraisal
Questionnaire on effectiveness of performance appraisalcoxdennis362
 
Performance management in airtel
Performance management in airtelPerformance management in airtel
Performance management in airtelHari Thirumal
 
Hrm Quality Of Work Life
Hrm Quality Of Work LifeHrm Quality Of Work Life
Hrm Quality Of Work Lifeajithsrc
 
Great Leader Subhash Chandra Bose
Great Leader Subhash Chandra BoseGreat Leader Subhash Chandra Bose
Great Leader Subhash Chandra Bosemanshbalwani
 

Viewers also liked (20)

Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance appraisal methods
Performance appraisal methodsPerformance appraisal methods
Performance appraisal methods
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance Appraisal
Performance AppraisalPerformance Appraisal
Performance Appraisal
 
The Performance Appraisal System.
The Performance Appraisal System.The Performance Appraisal System.
The Performance Appraisal System.
 
Technical officer performance appraisal
Technical officer performance appraisalTechnical officer performance appraisal
Technical officer performance appraisal
 
Coaching & mentoring
Coaching & mentoringCoaching & mentoring
Coaching & mentoring
 
Perfomance evaluation ( group 4)
Perfomance evaluation ( group 4)Perfomance evaluation ( group 4)
Perfomance evaluation ( group 4)
 
Процесс управления тарифной политикой на примере отдельного банка
Процесс управления тарифной политикой на примере отдельного банкаПроцесс управления тарифной политикой на примере отдельного банка
Процесс управления тарифной политикой на примере отдельного банка
 
Performance appraisal ppt
Performance appraisal pptPerformance appraisal ppt
Performance appraisal ppt
 
Training Evaluation
Training EvaluationTraining Evaluation
Training Evaluation
 
Cashier stocker performance appraisal
Cashier stocker performance appraisalCashier stocker performance appraisal
Cashier stocker performance appraisal
 
H R Professionals Business Coaching Guide
H R  Professionals  Business  Coaching  GuideH R  Professionals  Business  Coaching  Guide
H R Professionals Business Coaching Guide
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Methods of performance appraisal
Methods of performance appraisalMethods of performance appraisal
Methods of performance appraisal
 
Questionnaire on effectiveness of performance appraisal
Questionnaire on effectiveness of performance appraisalQuestionnaire on effectiveness of performance appraisal
Questionnaire on effectiveness of performance appraisal
 
Performance management in airtel
Performance management in airtelPerformance management in airtel
Performance management in airtel
 
8 hrd challenges
8  hrd challenges8  hrd challenges
8 hrd challenges
 
Hrm Quality Of Work Life
Hrm Quality Of Work LifeHrm Quality Of Work Life
Hrm Quality Of Work Life
 
Great Leader Subhash Chandra Bose
Great Leader Subhash Chandra BoseGreat Leader Subhash Chandra Bose
Great Leader Subhash Chandra Bose
 

Similar to Performance Appraisal Methods

performanceappraisal-160117065718.pdf
performanceappraisal-160117065718.pdfperformanceappraisal-160117065718.pdf
performanceappraisal-160117065718.pdfMayuriSinghal2
 
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGT
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGTHUMAN RESOURCE MANAGEMENT PERFORMANCE MGT
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGTSobhika2
 
Hrm notes %28on almost every topics%29
Hrm notes %28on almost every topics%29Hrm notes %28on almost every topics%29
Hrm notes %28on almost every topics%29sunitaiacr
 
Methods of performance appraisal hrm
Methods of performance appraisal hrmMethods of performance appraisal hrm
Methods of performance appraisal hrmKajalDahiya6
 
HRM - PERFORMANCE APPRAISAL
HRM - PERFORMANCE APPRAISALHRM - PERFORMANCE APPRAISAL
HRM - PERFORMANCE APPRAISALSwati Daga
 
Performance Management @ G.A.C.L - Baroda, Gujarat.
Performance Management @ G.A.C.L - Baroda, Gujarat.Performance Management @ G.A.C.L - Baroda, Gujarat.
Performance Management @ G.A.C.L - Baroda, Gujarat.Jay Visavadiya
 
modern methods of performance appraisal.pdf
modern methods of performance appraisal.pdfmodern methods of performance appraisal.pdf
modern methods of performance appraisal.pdfKiran Dubb
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisalSanjeev Kotur
 
performance appraisal reliance
performance appraisal relianceperformance appraisal reliance
performance appraisal reliancepragati jain
 
Performance Evaluation 分享.pptx
Performance Evaluation 分享.pptxPerformance Evaluation 分享.pptx
Performance Evaluation 分享.pptxQianZhang340771
 
Performance Appraisal of the employee.pptx
Performance Appraisal of the employee.pptxPerformance Appraisal of the employee.pptx
Performance Appraisal of the employee.pptxnandhini manivannan
 
Performance appraisal final ppt.
Performance appraisal final ppt.Performance appraisal final ppt.
Performance appraisal final ppt.Vaibhav Sagar
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisalsunil pandey
 

Similar to Performance Appraisal Methods (20)

performanceappraisal-160117065718.pdf
performanceappraisal-160117065718.pdfperformanceappraisal-160117065718.pdf
performanceappraisal-160117065718.pdf
 
Performance Appraisal
Performance AppraisalPerformance Appraisal
Performance Appraisal
 
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGT
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGTHUMAN RESOURCE MANAGEMENT PERFORMANCE MGT
HUMAN RESOURCE MANAGEMENT PERFORMANCE MGT
 
Hrm notes %28on almost every topics%29
Hrm notes %28on almost every topics%29Hrm notes %28on almost every topics%29
Hrm notes %28on almost every topics%29
 
Methods of performance appraisal hrm
Methods of performance appraisal hrmMethods of performance appraisal hrm
Methods of performance appraisal hrm
 
HRM - PERFORMANCE APPRAISAL
HRM - PERFORMANCE APPRAISALHRM - PERFORMANCE APPRAISAL
HRM - PERFORMANCE APPRAISAL
 
Performance Management @ G.A.C.L - Baroda, Gujarat.
Performance Management @ G.A.C.L - Baroda, Gujarat.Performance Management @ G.A.C.L - Baroda, Gujarat.
Performance Management @ G.A.C.L - Baroda, Gujarat.
 
modern methods of performance appraisal.pdf
modern methods of performance appraisal.pdfmodern methods of performance appraisal.pdf
modern methods of performance appraisal.pdf
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
performance appraisal reliance
performance appraisal relianceperformance appraisal reliance
performance appraisal reliance
 
Performance Evaluation 分享.pptx
Performance Evaluation 分享.pptxPerformance Evaluation 分享.pptx
Performance Evaluation 分享.pptx
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance Appraisal of the employee.pptx
Performance Appraisal of the employee.pptxPerformance Appraisal of the employee.pptx
Performance Appraisal of the employee.pptx
 
Performance appraisal final ppt.
Performance appraisal final ppt.Performance appraisal final ppt.
Performance appraisal final ppt.
 
Appraisal method
Appraisal methodAppraisal method
Appraisal method
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
2. FINAL PROJECT.pdf
2. FINAL PROJECT.pdf2. FINAL PROJECT.pdf
2. FINAL PROJECT.pdf
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 

More from Ashutosh Mittal (14)

Gold Standard
Gold StandardGold Standard
Gold Standard
 
Browser Helper Object
Browser Helper ObjectBrowser Helper Object
Browser Helper Object
 
Amway
AmwayAmway
Amway
 
Introduction to Income Tax
Introduction to Income TaxIntroduction to Income Tax
Introduction to Income Tax
 
E commerce
E commerceE commerce
E commerce
 
Evolution of universe
Evolution of universeEvolution of universe
Evolution of universe
 
Green banking
Green bankingGreen banking
Green banking
 
Data
DataData
Data
 
GST
GSTGST
GST
 
Codes of CG
Codes of CGCodes of CG
Codes of CG
 
Costing
CostingCosting
Costing
 
Business economics
Business economicsBusiness economics
Business economics
 
Hindustan Unilever Limited
Hindustan Unilever LimitedHindustan Unilever Limited
Hindustan Unilever Limited
 
Planning
PlanningPlanning
Planning
 

Recently uploaded

Mastering Management Insights from First Break All the Rules.pptx
Mastering Management Insights from First Break All the Rules.pptxMastering Management Insights from First Break All the Rules.pptx
Mastering Management Insights from First Break All the Rules.pptxAS Design & AST.
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Designshakkardaddy
 
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBusiness of Software Conference
 
The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsCIToolkit
 
Yokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingYokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingCIToolkit
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesMassimo Canducci
 
The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsCIToolkit
 
Operations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfOperations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfcoolsnoopy1
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationPMIUKChapter
 
Exploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisExploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisCIToolkit
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...dsnow9802
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingCIToolkit
 
Critical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxCritical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxcalinagavris17
 
Flowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsFlowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsCIToolkit
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementCIToolkit
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsCIToolkit
 

Recently uploaded (16)

Mastering Management Insights from First Break All the Rules.pptx
Mastering Management Insights from First Break All the Rules.pptxMastering Management Insights from First Break All the Rules.pptx
Mastering Management Insights from First Break All the Rules.pptx
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
 
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & EngineeringBoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
BoSUSA23 | Chris Spiek & Justin Dickow | Autobooks Product & Engineering
 
The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data Insights
 
Yokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingYokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice Sharing
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human Resources
 
The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data Sets
 
Operations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdfOperations Management -- Sustainability and Supply Chain Management.pdf
Operations Management -- Sustainability and Supply Chain Management.pdf
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentation
 
Exploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram AnalysisExploring Variable Relationships with Scatter Diagram Analysis
Exploring Variable Relationships with Scatter Diagram Analysis
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-Making
 
Critical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxCritical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptx
 
Flowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of FlowchartsFlowcharting: The Three Common Types of Flowcharts
Flowcharting: The Three Common Types of Flowcharts
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous Improvement
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
 

Performance Appraisal Methods

  • 2. INDEX  INTRODUCTION  DEFINITIONS  OBJECTIVES  SIGNIFICANCE AND LIMITATIONS  METHODS OF PERFORMANCE APPRAISAL  TRADITIONAL METHODS  MODERN METHODS  STEPS IN PERFORMANCE APPRAISAL
  • 3. INTRODUCTION Performance Appraisal (PA) is a method by which the job performance of an employee is evaluated. In other words, Performance Appraisal is a review of an employee's performance of assigned duties and responsibilities. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth.
  • 4. DEFINITIONS According to Edwin Flippo, "Performance Appraisal is the systematic, periodic and impartial rating of an employee's excellence, in matters pertaining to his present job and his potential for a better job.” According to Dale Beach, "Performance Appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development.”
  • 5. OBJECTIVES  Record employee’s performance to determine wages and incentive pay.  Identify employees who have been placed on wrong jobs to transfer them to jobs for which they are better suited.  Facilitate employee to know his performance level and take steps to develop himself  Locate employees with adequate potential for promotion and development.  Identify strengths and weaknesses of employees.  Determine the training and development needs of the employees.
  • 6. SIGNIFICANCE  Performance evaluation  Guiding employees to perform efficiently  Human resource planning  Employee training and development decisions  Evaluation of effectiveness of training programmes  Promotions, transfers and lay-offs decisions  Compensation decisions: Increments and Incentives  Performance feedback
  • 7. LIMITATIONS  If the factors included in assessment are irrelevant, the result of performance appraisal will not be accurate.  Different qualities to be rated may not be given proper weightage in certain cases.  Some of the factors are highly subjective like initiative and personality of the employees because of which performance rating may not be on scientific lines.  Supervisor may be guided by their personal emotions and likes.
  • 8. METHODS OF PERFORMANCE APPRAISAL There are various methods of merit rating which may be classified into:  Traditional Methods – They are very old techniques of performance appraisal based on standards of personal qualities or traits such as attitude, initiative, loyalty, knowledge of job etc.  Modern Methods – They are the latest methods of appraisal used by modern organizations.
  • 9. PERFORMANCE APPRAISAL TRADITIONAL METHODS CONFIDENTIAL REPORT EMPLOYEE RANKING FORCED DISTRIBUTION GRAPHIC RATING SCALES CHECKLISTS CRITICAL INCIDENTS ESSAY METHOD GROUP APPRAISAL MODERN METHODS MANAGEMENT BY OBJECTIVES BARS 360 DEGREE APPRAISAL
  • 10. CONFIDENTIAL REPORT This is an old and traditional method of rating the employees. A confidential report is a report about the employee. It is prepared by his immediate superior. It contains information about the employee's strengths, weaknesses, major failure and achievements. It also contains information about the employee's personality traits (qualities) and about his behaviour. Confidential report is used to take decisions about transfers, promotions, etc.
  • 11. EMPLOYEE RANKING Ranking method is the oldest and simplest method of rating the employees. Here, all the employees who are doing the same job are compared with each other. Then, each employee is given a particular rank, i.e. First Rank, Second Rank, etc. The best employee is given the first rank, and the worst employee is given the last rank. However, It is difficult to adopt this method, in case of evaluating large number of employees.
  • 12. FORCED DISTRIBUTION METHOD Forced distribution method forces the appraiser to fit the employees being appraised into pre-determined ranges of scale. In this system, the appraiser is asked to distribute the employees into the categories in such a way that 10% of men are in group ‘outstanding’, 20% ‘above average’, 40% ‘average’, 20% ‘below average’ and 10% ‘poor’. It eliminates the room for subjective judgement on the part of supervisors.
  • 13. GRAPHIC RATING SCALE METHOD In Graphic Rating Scale Method, a graphic scale is used to rate the degree to which the employee has achieved various characteristics. Factors such as quality of work, quantity of work, dependability, etc. are rated. Graphic rating scale method is easy to understand and simple to use. It also consumes less time. However, it involves a lot of paper work and there are chances of bias by the rater.
  • 14. CHECK-LISTS In this method a dichotomous questionnaire containing some statements about the employees behaviour on the job is used. The rater has to tick mark "Yes" or "No" for each statement. The main advantages of this method:  It is simple,  It is convenient,  It takes less time, and  it is very economical. The main disadvantage of checklist method is that the statements are structured, and it does not have depth like the Critical Incident Method and the Essay Method.
  • 15. CRITICAL INCIDENT In Critical Incident Method, the supervisor writes a brief report about any incident, which affects the performance of the job. The incident may be positive or negative. For e.g. A salesman is very patient with a difficult customer, and he succeeds in selling the goods to that customer. This is a critical incident. The supervisor writes a brief report about this incident. This report is in favour of the salesman, so the salesmen will get a high rating. This method has some disadvantages, as some supervisors only record negative incidents. They do not record positive incidents. Some supervisors are also biased while recording the incidents.
  • 16. ESSAY APPRAISAL Essay is the simplest method of rating an employee. Here, the rater writes in detail, the employee's strengths, weaknesses and potential. He also gives suggestions for improvement. . The essay appraisal is often used along with other types of appraisals, notably graphic rating scales. They provide an opportunity for supervisors to describe aspects of performance not thoroughly covered by an appraisal questionnaire. The disadvantage of this method is that their quality depends on the supervisor’s writing skills.
  • 17. MANAGEMENT BY OBJECTIVE (MBO) According to George S. Odiorne, "Management by objectives can be described as a process whereby the superior and subordinate managers of an organisation jointly identify its common goals, define each individuals major area of responsibility in terms of results and use these measures as guides for operating the unit and assessing the contribution of each of its member.“ It is philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. The appraisal is based on whether or not the employee has met his or her objectives.
  • 18. BEHAVIORALLY ANCHORED RATING SCALE (BARS) In this method the employee's behavior and performance dimensions are analyzed and used for evaluating the performance of the employee. The HR department is involved in the process of preparing the BARS. Based on the Employee's performance and behavior, employees are anchored in different slots of good, average and poor. The rater is required to give corresponding ratings to the employee.
  • 19. 360 DEGREE FEEDBACK A 360 Degrees Performance Appraisal is an arrangement or practice in which workers get confidential, unspecified feedback from the individuals who work around them. This system has four major integral components which include: self appraisal, superior's appraisal, subordinate's appraisal and peer appraisal. This process is also known as Multi-rater Feedback. It is effective for career coaching and identifying strengths and weaknesses. It provides a comprehensive perspective of employee performance
  • 20. STEPS IN PERFORMANCE APPRAISAL SYSTEM DETERMINATION OF PURPOSE ESTABLISHING THE CRITERIA OF PERFORMANCE MEASUREMENT DETERMINATION OF FREQUENCY OF APPRAISAL SELECTION AND TRAINING OF APPRAISER DESIGNING OF APPROPRIATE FORMS
  • 21. 1. Determination of purpose: It includes determining the objectives for performance appraisal. 2. Establishing the criteria of performance measurement: Standards of performance should be set up to measure the performance of various individuals on their jobs. 3. Determination of frequency of appraisal: Although it is a continuous process, formal appraisal programmes are implemented one or twice a year. The frequency of appraisal must also be determined. 4. Selection and training of appraiser: Appraiser must be sufficiently trained. It is suggested that performance of one man should be appraised by two person independently. 5. Designing of appropriate forms: It is important to keep proper results of performance appraisal as they are used for many important decisions.
  • 22. ESSENTIALS OF SOUND PERFORMANCE APPRAISAL SYSTEM  It must be simple to operate and easy to understand.  It must be performance based and uniform.  Employees must be aware of performance in terms of goals and targets.  It should be devised in consultation with subordinates.  It must be designed to achieve specific objectives.  Appraiser must be properly trained.
  • 23. A STUDY ON PERFORMANCE APPRAISAL SYSTEM AT HCL ENTERPRISE
  • 24. ABOUT THE COMPANY HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 6.4 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies and HCL Infosystems. The 37 year old Enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The HCL team comprises 91,000 professionals from diverse nationalities, operating across 31 countries.
  • 25. PRESENT PERFORMANCE APPRAISAL SYSTEM The Present Performance Appraisal system that is been followed by the company is Managerial Appraisal System. The company is not following it frequently. It is followed only at the period of probationary and training period and it is also followed only for the management levels.
  • 26. PROCEDURE FOLLOWED The procedure of the Performance Appraisal is as follows:  Once the person is entering the probationary period for one year, he will be given an Appraisal form and to fill his performance and what he wants to improve and to be trained;  After this the person will be trained in his area of work and he is entering the Probationary period; &  Then after the completion of Probationary period he will be again given an Appraisal form wherein, in this turn the Appraisal form will be filled by the Person himself and the Department head and will be confirmed for the position.
  • 27. SOURCE  Google Images  Wikipedia  ‘Essentials of Human Resource Management’ By T.N. Chhabra  http://www.iosrjournals.org/iosr-jbm/papers/Vol9- issue3/B0930823.pdf  http://www.digitallibrary.ac.in/dspace/bitstream/1234 56789/1217/1/287.pdf  http://www.hcl.in/