Performance appraisal or Employee Appraisal - Meaning - Elements or Process - Methods. or Techniques. (Traditional and Modern Methods MBO etc.. ) This Powerpoint covers all these topics.

1. JUSTICE BASHEER AHMED SAYEED COLLEGE FOR WOMEN
(Autonomous) Afternoon Session Chennai 18.
S.I.E.T.
PERFORMANCE APPRAISAL
HUMAN RESOURCE MANAGEMENT

2. PERFORMANCE APPRAISAL
MEANING
A performance appraisal is a regular review of an employee's job performance
and overall contribution to a company. Also known as an annual review,
performance review or evaluation, or employee appraisal, a performance
appraisal evaluates an employee’s skills, achievements, and growth--or lack
thereof. Companies use performance appraisals to give employees big-
picture feedback on their work and to justify pay increases and bonuses, as
well as termination decisions. They can be conducted at any given time but
tend to be annual, semi-annual, or quarterly.
3 September 2020
PRESENTER NAME: ASMA I
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3. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
ESTABLISHING PERFORMANCE STANDARDS
COMMUNICATING THE STANDARDS
MEASURING PERFORMANCE
COMPARING ACTUAL WITH THE STANDARDS
DISCUSSING THE APPRAISAL
TAKING CORRECTIVE ACTIONS
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4. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
ESTABLISHING 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. This
step requires setting the criteria to judge the performance of
the employees as successful or unsuccessful and the degrees of
their contribution to the organizational goals and objectives.
The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
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5. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
COMMUNICATING THE STANDARDS
Once 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 the employees. This will
help them to understand their roles and to know what exactly is
expected from them. The standards should also be communicated
to the appraisers or the evaluators and if required, the standards
can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.
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6. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
MEASURING PERFORMANCE
The most difficult part of the Performance appraisal process
is measuring the actual performance of the employees that is
the work done by the employees during the specified period of
time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the
careful selection of the appropriate techniques of measurement,
taking care that personal bias does not affect the outcome of the
process and providing assistance rather than interfering in an
employees work.
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7. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
COMPARING ACTUAL WITH THE STANDARDS
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. The result
can show the actual performance being more than the desired
performance or, the actual performance being less than the
desired performance depicting a negative deviation in the
organizational performance. It includes recalling, evaluating and
analysis of data related to the employees’ performance.
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8. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
DISCUSSING THE APPRAISAL
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. The feedback should be given with a
positive attitude as this can have an effect on the employees’ future performance.
Performance appraisal feedback by managers should be in such way helpful to
correct mistakes done by the employees and help them to motivate for better
performance but not to demotivate. Performance feedback task should be handled
very carefully as it may leads to emotional outburst if it is not handing properly.
Sometimes employees should be prepared before giving them feedback as it may
be received positively or negatively depending upon the nature and attitude of
employees.
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9. PERFORMANCE APPRAISAL PROCESS
(ELEMENTS)
TAKING CORRECTIVE ACTIONS
The purpose of conducting employee performance appraisal
is for making decisions about employees without any bias by
the HR manager. Decision-making by HR managers about
employees rewarding, promotions, demotions, transfers and
sometimes suspensions/dismissal of employees are depended
upon the employee performance appraisal. The decision taken
by HR manager should match exactly with performance
appraisal results of employees to avoid grievance or
disturbances in between them, as they affects overall
performance of the organisation.
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10. METHODS OR TECHNIQUES OF
PERFORMANCE APPRAISAL
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11. METHODS OR TECHNIQUES OF
PERFORMANCE APPRAISAL
Traditional Methods
Traditional methods are also known as trait methods. Trait
approaches to performance appraisal are designed to measure
the extent to which an employee possesses certain
characteristics such as dependability, creativity, initiative and
leadership that are viewed as important and desirable for the
job and the organisation in general. There may also be added
work-related characteristics such as job knowledge, ability to
complete an assignment, success in carrying out plans, etc.
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12. TRADITIONAL METHODS
Rating Scales
In this method, each trait or characteristic to be rated is represented by
the scale on which a rater indicates the degree to which an employee
possesses that trait or characteristic. This is the simplest and most popular
technique for appraising employee performance. The typical rating scale
system consists of several numerical scales, each representing a job-related
performance criterion such as dependability, initiative, attendance, output,
attitude and cooperation. Each scale ranges from excellent to poor. The rater
checks the appropriate performance level on each criterion, and then
computes the employee’s total numerical score.
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13. TRADITIONAL METHODS
Confidential Report
Confidential Reports are maintained mostly in government
departments, though its application in the industry is not ruled
out. These reports differ from department to department and
from level to level. The confidential report is written for a unit
for one year and relates to the performance, ability, and
character of the employee during that year. The report is not
data based but is subjective. No feedback is provided to the
employee being appraised and therefore, its credibility is very
low.
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14. TRADITIONAL METHODS
Ranking Method
In this, the superior ranks his or her subordinates in the order of
their merit, starting from the best to the worst. It is the simplest and
old method of merit rating. Every employee is judged as a whole
without distinguishing the rates from his performance.
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15. TRADITIONAL METHODS
Paired Comparison Method
The paired comparison method is almost similar to ranking method.
When variations are made in the ranking method so that it can easily be
used in large groups, it becomes paired comparison method. In paired
comparison method, every person is compared trait wise with the other
persons one at a time. The number of times one person is compared
with others is tallied on a piece of paper. With the help of these numbers,
ranks are allotted to the employees.
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16. TRADITIONAL METHODS
Checklist Method
Under this method, a checklist of statements on the traits of the
employees and his or her job is prepared in two columns – viz. a ‘Yes’
column and a ‘No’ column. It is a list of statements that indicate the
performance of the employees on the job. All that the rater has to do is to
tick ‘Yes’ column if the answer to the statement is positive and column ‘No’
if the answer is negative. The performance of the employee is rated on the
basis of the number of positive checks.
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17. TRADITIONAL METHODS
Forced Choice Method
This method requires the rater to choose from statements,
often in pairs, that appear equally favourable or equally
unfavorable. The statements, however, are designed to
distinguish between successful and unsuccessful
performance. The rater selects one statement from the pair
without knowing which statement correctly describes
successful job behaviour.
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18. TRADITIONAL METHODS
Essay Method
This method requires the appraiser to compose a statement that
best describes the employee being appraised. The appraiser is usually
instructed to describe the employee’s strengths and weaknesses and
to make recommendations for his or her development. Essay method
is often used in combination with some other rating method. Here, the
supervisor continuously watches the subordinates and writes his
assessment in the report.
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19. TRADITIONAL METHODS
Forced Distribution Method
Raters sometimes suffer from a constant error i.e., either they rate the
employees as good, average, or poor. They do not evaluate the employees
properly. This system minimizes the rater’s bias so that all employees are
not similarly rated. In this method, the appraiser is forced to appraise the
appraises according to the pattern of the normal curve. This system is
based on the assumption that all employees can be divided in five
categories i.e., outstanding, above average, average, below average, and
poor.
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20. TRADITIONAL METHODS
Field Review Method
In this method, an employee is not appraised by his direct superior but
by another person usually from the HR department. This is an appraisal
by someone outside the assesses own department, usually someone from
the corporate office or the HR department. The basic idea is that such a
person may take a more objective view in the appraisal as he is not under
the pressure as the superior of the employee may be. The rater also
conducts the interview with the employee and his superior for making a
qualitative assessment of the employee. Field reviews are useful and are
done when comparable information is needed from employees in different
units or locations.
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21. TRADITIONAL METHODS
Critical Incident Method
The critical incident method of performance appraisal involved identifying
and describing specific events (or incidents) where the employee did
something really well or something that needs improvement. It's a technique
based on the description of the event, and does not rely on the assignment of
ratings or rankings, although it is occasionally coupled with a ratings type
system.
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22. TRADITIONAL METHODS
Graphic rating scale
It is one of the oldest and commonly used methods of performance appraisal.
Under this approach, the employees are evaluated on the basis of various job
performance criterions, such that each criterion is categorically divided into
poor, fairly poor, fairly good, good and excellent. Also, these criterions carry
certain score weight. The rater ticks the category that best describes the
employee and finally the score is totaled.
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23. MODERN METHODS
MANAGEMENT BY OBJECTIVES (MBO)
Management by objectives (MBO) is a strategic management model
that aims to improve the performance of an organization by clearly
defining objectives that are agreed to by both management and
employees. According to the theory, having a say in goal setting and
action plans encourages participation and commitment among
employees, as well as aligning objectives across the organization.
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24. MODERN METHODS
360 Degree Feedback
A 360-degree feedback (also known as multi-rater feedback, multi
source feedback, or multi source assessment) is a process through which
feedback from an employee's subordinates, colleagues, and supervisor(s),
as well as a self-evaluation by the employee themselves is gathered.
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25. MODERN METHODS
Behaviorally anchored rating scale (BARS)
It is a measuring system which rates employees or trainees according to
their performance and specific behavioral patterns. BARS is designed to
bring the benefits of both quantitative and qualitative data to the employee
appraisal process as its mechanism combines the benefits of narratives,
critical incidents, and quantified ratings.
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26. MODERN METHODS
Assessment center method
It is often used in selection procedures to test the suitability of the
candidates. An assessment consists of several tests and practical
simulations that are intended to show whether a person is the right fit for a
particular position or still performs optimally. The assessment often
consists of different components including intelligence tests, psychological
tests and presentations. Role-playing often is part of an assessment too.
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27. MODERN METHODS
Assessment center is:
 Standardized procedure of evaluation.
 A program designed to measure required skill sets / dimensions for
particular job.
 A key HR process especially of recruitment and selection.
 Aim is to know the suitability of candidate for particular job.
 Series of activities to know the suitability of candidate for particular
job.
 Drawing conclusion with statistical process.
Assessment Centre allows candidate to demonstrate skill sets and
behaviors.
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28. PROMOTION
Promotion
Promotion refers to the advancement of an employee's rank or position in
a hierarchical structure. A promotion will typically deliver a higher salary to
compensate for the increased job responsibilities. A promotion might also
include expanded benefits and managerial authority over other employees.
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29. TRANSFER
MEANING OF TRANSFER
A transfer is a horizontal or lateral movement of an employee from one job,
section, department, shift, plant or position to another at the same or
another place where his salary, status and responsibility are the same.
DEFINITION
Yoder and others (1958) define transfer as “a lateral shift causing
movement of individuals from one position to another usually without
involving marked change in duties, responsibilities, skills needed or
compensation”.
Transfer may be initiated either by the company or the employee. It also
can be temporary or permanent.
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