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PERFORMANCE
APPRAISAL SYSTEM
7
GROUP MEMBERS
AISHA SHAIKH
JUNED MANSURI
DEEPAK DHADICH
SAYALI
SHIVAM SHARMA
LEARNING OBJECTIVES
UNDERSTAND
WHAT
PERFORMANCE
APPRAISAL
MEANS.
UNDERSTAND
HOW IT IS
DESIGNED
LEARN ABOUT
THE PROCESS
OF
PERFORMANCE
APPRAISAL
HOW
INDIVIDUALS
ARE EVALUATED
AND VARIOUS
METHODS OF
PERFORMANCE
APPRAISAL
RELATE
CONCEPTS
WITH REAL
WORLD
EXAMPLES
3
CONTENT
Performance Appraisal
Objectives And Design of PAS
Process Of Performance Appraisal
Methods Of Performance Appraisal
PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities
of a person for further growth and development.
APPRAISAL PROGRAM
DESIGINING
APPRAISAL
DESIGN
WHAT METHODS?
WHO ARE THE RATERS?
WHOSE PERFORMANCE IS TO BE
EVALUATED?
WHICH PERFORMANCE?
WHAT AND WHEN TO EVALUATE?
WHAT PROBLEMS CAN BE ENCOUNTERED
AND HOW TO SOLVE THEM?
Establishing performance standards
Communicating the standards
Measuring the actual performance
Comparing actual performance with desired performance
Discussing results (Feedback)
Decision-making
METHODS OF PERFORMANCE APPRAISAL
PAST ORIENTED
oRATING SCALES
oCHECKLISTS
oBARS
FUTURE ORIENTED
o360°
oMBO
oBALANCED SCORECARD
RATING SCALE METHOD
The rating scale method is a performance appraisal method that rates employees according to
the evaluators created and records their judgments about performance on a scale .
The scale includes several categories defined by objectives such as outstanding, meets
expectation, or needs improvement.
SAP is a German-based European multinational software
corporation that makes enterprise software to manage business
operations and customer relations.
SAP – RATING SCALE METHOD
Believe in One to One Manager Interaction
Rating will be given by manager and by employee once in an year
Final appraisal of an employee will be decided by HR.
Employee Performance Review Form will be given to individual employees.
Client appreciation mail or any other attachment can be added.
If not satisfied, then again one to one interaction will be done with HR and Manager.
Final payroll will be decided in the next month.
 General Electric, American multinational corporation incorporated in
New York and headquartered in Fairfield, Connecticut in the United
States. In 2011, GE ranked among the Fortune 500 as the 26th-largest
firm in the U.S. by gross revenue, as well as the 14th most profitable.
MBO (Management By Objectives)
It is a method whereby managers and employees define objectives for every
department, project, and person and use them to monitor subsequent
performance.
GE – MBO & RATING SCALE METHOD
“Management by Objective” and “Rating Scale Method” are the methods which are
used in Performance Appraisal System.
Online system of EMS (evaluation measurement system) portal is created:
 3 Participant will be there in EMS. I.e. Employee, Manager and Senior Manager.
EMS will be done once in a year and reviewed quarterly.
EMS verticals are defined as
◦ 1. Leadership 2. Team Work and Pipeline 3. Quality 4. Cost.
Wipro Limited is an India-based information technology, consulting
and business process services company headquartered in Bengaluru,
India.
WIPRO – 360 DEGREE APPRAISAL
The mission and the objective of the feedback must be clear.
Employees must be involved early
Resources must be dedicated to the process, including top management's time.
Confidentiality must be assured.
The organization, especially top management, must be committed to the program
-Pratik Kumar Corporate VP HR, Wipro Technologies
Limited One of the pioneers of 360 degree PA in India.
Tata Consultancy Services Limited is an Indian multinational information
technology service, consulting company headquartered in Mumbai,
Maharashtra. It is part of the Tata Group and operates in 46 countries.
TCS is one of the largest Indian companies by market capitalization.
TATA – BALANCE SCORE CARD
TCS conducts two appraisals: 1. At the end of the year 2. At the end of a project.
Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on
the basis of targets at four levels :
1. Financial perspective
2. Customer perspective
3. Internal perspective
4. Learning and growth
ITC
ITC Limited is an Indian company headquartered in Kolkata, West
Bengal. Its five diversified businesses are Fast-Moving Consumer
Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business and Information Technology.
ITC - ASSESSMENT CENTRE METHOD-
An assessments center is a method in which employees work together on Assignments .
The most important feature of the assessments center is job-related simulations.
The evaluation of employees are both individually and collectively by using simulations
techniques like role- playing & business games.
The evaluators prepare a summary report on job related characteristics and feedback is given
on a face-to-face to the employees.
It generally measures interpersonal skills, communicating ability to plan and organize, etc.
HUMAN RESOURCE ACCOUNTING METHOD
Under this method, performance is judged in terms of costs and contributions of employees.
 Costs of human resources consist of expenditure on human resource planning, recruitment,
selection, induction, training, compensation, etc.
Contribution of human resources is the money value of labor productivity or value added by
human resources. Difference between cost and contribution will reflect the performance of
employees.
This method is still in the transitory stage and is, therefore, not popular at present.
PSYCHOLOGICAL APPRAISAL METHOD-
Psychological appraisals are conducted to assess the employee potential. It is conducted in the
areas of employees.
Intellectual abilities
Emotional stability
Sociability
Interpretation and judgments skills
Motivational response
Psychological appraisals results are useful for decision making about employee placement,
career planning, development and training .
Performance Appraisal
Checklist
Forced choice method
Critical incident method
Behaviourally anchored rating scale
Field review method
Annual confidential report method
Easy method
comparative evolution approaches
A. Ranking method
B. Paired-comparison method
“”There is something that is much more scarce,
something rarer than ability. It is the ability to
recognise ability.”
-Robert Half
27
Thank You

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Performance appraisal System

  • 2. GROUP MEMBERS AISHA SHAIKH JUNED MANSURI DEEPAK DHADICH SAYALI SHIVAM SHARMA
  • 3. LEARNING OBJECTIVES UNDERSTAND WHAT PERFORMANCE APPRAISAL MEANS. UNDERSTAND HOW IT IS DESIGNED LEARN ABOUT THE PROCESS OF PERFORMANCE APPRAISAL HOW INDIVIDUALS ARE EVALUATED AND VARIOUS METHODS OF PERFORMANCE APPRAISAL RELATE CONCEPTS WITH REAL WORLD EXAMPLES 3
  • 4. CONTENT Performance Appraisal Objectives And Design of PAS Process Of Performance Appraisal Methods Of Performance Appraisal
  • 5. PERFORMANCE APPRAISAL Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.
  • 6. APPRAISAL PROGRAM DESIGINING APPRAISAL DESIGN WHAT METHODS? WHO ARE THE RATERS? WHOSE PERFORMANCE IS TO BE EVALUATED? WHICH PERFORMANCE? WHAT AND WHEN TO EVALUATE? WHAT PROBLEMS CAN BE ENCOUNTERED AND HOW TO SOLVE THEM?
  • 7. Establishing performance standards Communicating the standards Measuring the actual performance Comparing actual performance with desired performance Discussing results (Feedback) Decision-making
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  • 9. METHODS OF PERFORMANCE APPRAISAL PAST ORIENTED oRATING SCALES oCHECKLISTS oBARS FUTURE ORIENTED o360° oMBO oBALANCED SCORECARD
  • 10. RATING SCALE METHOD The rating scale method is a performance appraisal method that rates employees according to the evaluators created and records their judgments about performance on a scale . The scale includes several categories defined by objectives such as outstanding, meets expectation, or needs improvement.
  • 11. SAP is a German-based European multinational software corporation that makes enterprise software to manage business operations and customer relations.
  • 12. SAP – RATING SCALE METHOD Believe in One to One Manager Interaction Rating will be given by manager and by employee once in an year Final appraisal of an employee will be decided by HR. Employee Performance Review Form will be given to individual employees. Client appreciation mail or any other attachment can be added. If not satisfied, then again one to one interaction will be done with HR and Manager. Final payroll will be decided in the next month.
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  • 14.  General Electric, American multinational corporation incorporated in New York and headquartered in Fairfield, Connecticut in the United States. In 2011, GE ranked among the Fortune 500 as the 26th-largest firm in the U.S. by gross revenue, as well as the 14th most profitable.
  • 15. MBO (Management By Objectives) It is a method whereby managers and employees define objectives for every department, project, and person and use them to monitor subsequent performance.
  • 16. GE – MBO & RATING SCALE METHOD “Management by Objective” and “Rating Scale Method” are the methods which are used in Performance Appraisal System. Online system of EMS (evaluation measurement system) portal is created:  3 Participant will be there in EMS. I.e. Employee, Manager and Senior Manager. EMS will be done once in a year and reviewed quarterly. EMS verticals are defined as ◦ 1. Leadership 2. Team Work and Pipeline 3. Quality 4. Cost.
  • 17. Wipro Limited is an India-based information technology, consulting and business process services company headquartered in Bengaluru, India.
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  • 19. WIPRO – 360 DEGREE APPRAISAL The mission and the objective of the feedback must be clear. Employees must be involved early Resources must be dedicated to the process, including top management's time. Confidentiality must be assured. The organization, especially top management, must be committed to the program -Pratik Kumar Corporate VP HR, Wipro Technologies Limited One of the pioneers of 360 degree PA in India.
  • 20. Tata Consultancy Services Limited is an Indian multinational information technology service, consulting company headquartered in Mumbai, Maharashtra. It is part of the Tata Group and operates in 46 countries. TCS is one of the largest Indian companies by market capitalization.
  • 21. TATA – BALANCE SCORE CARD TCS conducts two appraisals: 1. At the end of the year 2. At the end of a project. Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basis of targets at four levels : 1. Financial perspective 2. Customer perspective 3. Internal perspective 4. Learning and growth
  • 22. ITC ITC Limited is an Indian company headquartered in Kolkata, West Bengal. Its five diversified businesses are Fast-Moving Consumer Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri- Business and Information Technology.
  • 23. ITC - ASSESSMENT CENTRE METHOD- An assessments center is a method in which employees work together on Assignments . The most important feature of the assessments center is job-related simulations. The evaluation of employees are both individually and collectively by using simulations techniques like role- playing & business games. The evaluators prepare a summary report on job related characteristics and feedback is given on a face-to-face to the employees. It generally measures interpersonal skills, communicating ability to plan and organize, etc.
  • 24. HUMAN RESOURCE ACCOUNTING METHOD Under this method, performance is judged in terms of costs and contributions of employees.  Costs of human resources consist of expenditure on human resource planning, recruitment, selection, induction, training, compensation, etc. Contribution of human resources is the money value of labor productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees. This method is still in the transitory stage and is, therefore, not popular at present.
  • 25. PSYCHOLOGICAL APPRAISAL METHOD- Psychological appraisals are conducted to assess the employee potential. It is conducted in the areas of employees. Intellectual abilities Emotional stability Sociability Interpretation and judgments skills Motivational response Psychological appraisals results are useful for decision making about employee placement, career planning, development and training .
  • 26. Performance Appraisal Checklist Forced choice method Critical incident method Behaviourally anchored rating scale Field review method Annual confidential report method Easy method comparative evolution approaches A. Ranking method B. Paired-comparison method
  • 27. “”There is something that is much more scarce, something rarer than ability. It is the ability to recognise ability.” -Robert Half 27