4. According to Newstrom, “It is the process of
evaluating the performance of employees,
sharing that information with them and
searching for ways to improve their
performance’’.
Definitions
5. 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."
8. Performance Criteria
First Phase: The origin of performance management can
be traced in the early 1960’s when the performance
appraisal systems were in practice. . During this
period, Annual Confidential Reports (ACR’s) was also
known as Employee service Records were maintained for
controlling the behaviors of the employees and these
reports provided substantial information on the performance
of the employees.
Second Phase: This phase continued from late 1960’s till
early 1970’s, and the key hallmark of this phase was that
whatever adverse remarks were incorporated in the
performance reports were communicated to the employees
so that they could take corrective actions for overcoming
such deficiencies
9. Performance Criteria
Third Phase: In this phase the term ACR was replaced by
performance appraisal. One of the key changes that were
introduced in this stage was that the employees were permitted
to describe their accomplishments in the confidential
performance reports, several new components were considered
by many organizations which could measure the productivity
and performance of an employee in quantifiable terms such as
targets achieved, etc.
Fourth Phase: This phase started in mid 1970’s and its origin
was in India as great business tycoons like Larsen & Toubro,
followed by State Bank of India .
10.
11. Gaining a better understanding of their role
Understanding more clearly how and where
they fit in within the wider picture
A better understanding of how performance is
assessed and monitored
Getting an insight
Improving understanding of their strengths
and weaknesses and developmental needs
Identifying ways in which they can improve
performance
12. Opportunities to
hear and exchange views and opinions away
from the normal pressure of work
to identify any potential difficulties or
weaknesses
to plan for and set objectives for the next
period
to think about and clarity their own role
to plan for achieving improved performance
to plan for further delegation and coaching
to motivate members of the team
15. • If not done right, they can create a NEGATIVE EXPERIENCE.
• Performance appraisals are very time consuming and can be
overwhelming to managers with many employees.
• They are based on human assessment and are subject to rater
errors and biases.
• They can create a very stressful environment for everyone
involved.
16. Issues In appraIsal system
appraIsal
DesIgn
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
20. Performance Appraisal Methods
The type of performance appraisal system utilized depends on its purpose.
If the major emphasis is on selecting people for promotion, training, and
merit pay increases, a traditional method such as rating scales may be most
appropriate. Collaborative methods are designed to assist employees in
developing and becoming more effective.
a. 360-Degree Feedback—Involves input from multiple levels within
the firm and external sources as well.
b. Rating Scales—Rates employees according to defined factors.
The factors chosen for evaluation are typically of two types: job
related and personal characteristics.
c. Critical Incidents—Requires written records be kept of highly favorable
and highly unfavorable work actions.
d. Essay—The rater simply writes a brief narrative describing the
employee’s performance. This method tends to focus on extreme behavior
in the employee’s work rather than routine day-to- day performance.
21. Harnessing New
Technology
1. Use of technology to communicate
with employees
Company intranets
E-Newsletters
Company emails
E.Newsletters
22. 2. A move toward single software platforms
Integrated HRIS
PeopleSoft
SAP
Oracle
SAP SE
Software company
SAP SE is a German multinational software corporation that
makes enterprise software to manage business operations and
customer relations. SAP is headquartered in Walldorf, Baden-
Württemberg, Germany, with regional offices in 130 countries
23. PeopleSoft
Company
PeopleSoft, Inc. was a company that provided Human Resource
Management Systems, Financial Management Solutions, Supply Chain
Management, Customer Relationship Management, and Enterprise
Performance .
Founder: David Duffield
Founded: 1987
Acquisition date: January 2005
Parent organization: Oracle Corporation
25. Perhaps most significant development is the use
of organizational intranets
An intranet is internal network that makes use of
World Wide Web technology (browsers, servers, etc.)
to gather and disseminate information within the firm
