HRM is all about employing people, developing their resources, utilizing maintaining and compensating their services in tune with the job and organizational requirements.

1. By : Kawita Bhatt
44592

2.  Human Resource Management
 HRM functions
 Importance of HRM
 Personnel management & HRM
 Performance appraisal
 Objectives of performance appraisal
 Process
 Uses
 Methods
 Related cases and studies

3. Human resource management can be defined as:
“ employing people, developing their resource, utilizing
maintaining and compensating their services in tune
with the job and organizational requirements”

4. HRM FUCTIONS
• HR audit• HR research
• HR
accounting
• HR
Information
system
HR planning
Recruitment
Selection
Placement
Career planning
Training &
development
Organizational
Development
Empowerment
Health & Safety
HR mobility
Creating
motivating
environment
Performance
Management
Incentives&
benefits
HR
acquisition
HR
Development
Performance appraisal Motivation &
maintenance

5. 1. In-charge of Overall Recruitment and Training of the Workforce
2. Monitors Company Culture
3. Supervises Overall Talent Management Processes
4. Develops Standardized, Fair, and Strategic Compensation Plan
5. Develop loyalty & commitment
6. Finds Out, Recommends, and Implements Employee Benefits and
Compensation Programs that would help attract and retain superior
employees.
7. Improve job satisfaction
8. Enhance standard of living
9. Generate employment opportunity
10.Greater trust & respect

6. DIFFERENCE BETWEEN PERSONNEL MANAGEMENT & HRM
PERSONNEL MANAGEMENT
 Management of people employed.
 Employees are treated as economic
man as his service are exchanged
with salary.
 Employee are viewed as tool,
 Equipment.
 Employee are treated as cost center.
Therefore mg controls cost of labor.
 Employees used for organization’s
 Benefit
 Personnel function is only auxiliary
(secondary).
 Short term perspective
HUMAN RESOURCE
MANAGEMENT
 Management of employees’ skills,
 Knowledge, abilities
 Employees are treated as
economic, social & psychological
man
 Employee are treated as a
 resource
 Employees as treated as profit
center. Therefore, invest in
human resource.
 Employees used for multi-mutual
benefit for org, employees &
family
 Long term perspective

7. PERFORMANCE APPRAISAL
According to Flippo, a prominent personality in the field of
Human resources, "performance appraisal is the systematic,
periodic and an impartial rating of an employee’s excellence in
the matters pertaining to his present job and his potential for a
better job."
Performance appraisal is the step where the management finds
out how effective it has been at hiring and placing employees .
A “Performance appraisal” is a process of evaluating an
employee’s performance of a job in terms of its requirements.

8. OBJECTIVES OF PERFORMANCE APPRAISAL
Employee Organization
Measuring the efficiency
Maintaining organizational
control.
Concrete and tangible
particulars about their work
Assessment of
performance
 Personal development
 work satisfaction
 involvement in the organization.
 mutual goals of the employees & the organization.
 growth & development
 increase harmony & enhance effectiveness
According to:
Aims at:

9. Setting
performance
standards
Taking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards
Process
PROCESS

10. Uses
Performance improvement
Compensation adjustments
Placement decisions
Career planning &development
Identify deficiencies in staffing process
Detect informational inaccuracies
Diagnose job design errors
Avoidance of discrimination
External challenges
Training & Development needs

11. 1. Confidential Report
2. Free Form or Essay
3. Straight Ranking
4. Paired Comparisons
5. Forced Distribution
6. Graphic rating Scales
7. Checklist Method
8. Critical Incidents
9. Group Appraisal
10. Field Review
Several methods and techniques are used for evaluating employee performance. These
may be classified into broad categories.
Modern MethodsTraditional Methods
METHODS OF PERFORMANCE APPRAISAL
1. Assessment Centre
2. Human Resource Accounting
3. Behaviorally Anchored rating Scales
4. Appraisal through MBO

12. 1. Confidential Report
This is a traditional form of appraisal used in most government organization. A
confidential report is a report prepared by the employee’s immediate
superior. It cover the strengths and weaknesses, main achievements and
failure, personality and behavior of the employee’. It is descriptive
appraisal used for promotion and transfers of employees.
2. Free Form or essay Method
Under this method, the evaluator writes a short essay on the employee’s
performance on the basis of overall impression. The description is expected
to be as factual and concrete as possible. An essay can provide a good deal
of information about the employee especially if the evaluator is asked to
give examples of each one of his judgments.
TRADITIONAL METHOD

13. 3. Straight Ranking Method
In this method technique, the evaluator assigns relative ranks to all the
employees in the same work unit doing the same job. Employees are ranked
from the best to the poorest on the basis of overall performance. The
‘wholeman’ is compared with the whole man’ without analyzing performance.
The relative position of an employee is reflected in his numerical rank
Employee Rank
A 2
B 1
C 5
D 4
E 3
Straight ranking is one of the oldest and simplest methods. It is
time saving and a comparative evaluation technique of appraisal.

14. As compared to
A
B
C
+
-
+
-
+
-
+
-
+
For the Trait “Quality of
work”
A
B
C
-
+
+
+
-
+
+
+
-
C
For the Trait “Creativity”
+
+
++
+
+
+
+ +
-
-
-
--
- -
- -
Person rated
A B C
Person rated
As compared to A B
Ranking Employees by Paired Comparison Method

15. Performance Points Behavior
Extremely 7
good
Can expect trainee to make valuable suggestions for
increased sales and to have positive relationships with
customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in
time.
Below average 3 Can expect to unload the trucks when asked by the
supervisor.
Can expect to inform only a part of the
customers.
Poor 2
Extremely poor 1 Can expect to take extended coffee breaks & roam
around purposelessly.
Behavioral Anchored Rating Scales

16. 360 Degree Performance Appraisal
 Wipro, Infosys, Reliance Industries, Maruti Udyog, HCL
Technologies and Wyeth Consumer Health (WCH) are using 360
Degree Performance Appraisal Method.

17.  Survey responses from 112 employees were matched with their
performance ratings from two different appraisal periods to test specific
hypotheses.
 Results indicate that satisfaction with rater and previous performance
ratings influence employees’ satisfaction with appraisal feedback.
Satisfaction with appraisal feedback was positively related to job
satisfaction and organizational commitment and negatively related to
turnover intentions.
 Supervisory status moderated the relationship between satisfaction with
appraisal feedback and subsequent performance such that the relationship
existed only for supervisory employees who, in addition to receiving
feedback about their own performance, also provided feedback to their
subordinates.
Jawahar, I.M. “Correlates of satisfaction with performance appraisal feedback”, Journal of Labor
Research, Vol. 27, No. 2, 2006, pp.213-236.
Correlates of satisfaction with performance appraisal feedback

18. This study was aimed at exploring the differences in performance
appraisal systems between these two industries.
Based on empirical data derived from 328 questionnaires, 125
from the service industry and 203 from the manufacturing
industry, The results show that the service industry pays more
attention to administration, while manufacturing industry
emphasizes on development more.
The service industry is also more concerned about quantitative
criteria, while the manufacturing industry emphasizes qualitative
ones.
Chu, Chen-Ming, and Dar-Hsin Chen, “Performance Appraisal Systems in Service and Manufacturing
Industries: Evidence from Taiwan”, International Journal of Management, Vol. 24 No. 3, 2007, pp. 512-
521.
Performance Appraisal Systems in Service and Manufacturing Industries: Evidence
from Taiwan

19.  The study was conducted to determine if this relationship would hold up in a
field setting. The study was also designed to examine how structured diary-
keeping, and the nature of the appraisal instrument, might be related to affect-
appraisal relationships.
 The results for 85 raters and 404 ratees, suggested that affect was
significantly related to all ratings, but more strongly related to trait-like
ratings than task/outcome-like ratings, and that having raters keep
performance diaries actually increased the strength of the relationship
between affect and ratings.
Arup Varma and Shaun Pichler, “Interpersonal Affect: Does It Really Bias Performance Appraisals?”,
JOURNAL OF LABOR RESEARCH, Vol.28, No.2, 2007, pp. 397-412,
Article: Interpersonal Affect: Does It Really Bias Performance Appraisals?”
They concluded that affect may not be a biasing influence on ratings, but may be
a result of better subordinate performance. Results from an analysis of the diary
content supported this conclusion. Implications for the role of affect on ratings
and the nature of the relationship between past performance and interpersonal
affect in field settings are discussed.