Performance appraisal


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Performance appraisal

  1. 1. Performance Appraisal
  2. 2. Concept Of Performance Appraisal <ul><li>PA is the method of evaluating the behavior of the employees in the job it includes both quantitative and qualitative aspects of job performance. </li></ul>
  3. 3. Purpose Of Performance Appraisal <ul><li>Compensation Decision- Pay raise </li></ul><ul><li>Promotion decision- level raise </li></ul><ul><li>Training and development programmes- Enhance performance </li></ul><ul><li>Personal development- self actualization need </li></ul>
  4. 4. Performance Appraisal Process <ul><li>Establish performance standard </li></ul><ul><li>Communicate the standard </li></ul><ul><li>Measure Actual performance </li></ul><ul><li>Compare actual performance with standards performance </li></ul><ul><li>Take corrective actions </li></ul>
  5. 5. What is to be appraised? <ul><li>Behaviour of the employee -for eg : Doctor’s behaviour with the patient. </li></ul><ul><li>Objectives of the organization- market share , profit contribution, strategy alignment. </li></ul><ul><li>Traits in performing the job- the precision, time taken by the employee to perform any job. </li></ul>
  6. 6. Who will appraise? <ul><li>Supervisors </li></ul><ul><li>Peers </li></ul><ul><li>Subordinates </li></ul><ul><li>Self appraisal </li></ul>
  7. 7. METHODS OF PA <ul><li>The PA method are of 15 types- </li></ul><ul><li>Individual Evaluation method- This is done by individual employee </li></ul><ul><li>Group evaluation Method- one employee is compared with others </li></ul><ul><li>Modern methods- these are new methods and research is still carried on </li></ul>
  8. 8. Performance Appraisal method Individual Evaluation method Group evaluation Method Modern methods <ul><li>Confidential report </li></ul><ul><li>Essay evaluation </li></ul><ul><li>Critical incident technique </li></ul><ul><li>Check list </li></ul><ul><li>Graphic rating scale </li></ul><ul><li>BARS </li></ul><ul><li>Forced choice method </li></ul><ul><li>Ranking </li></ul><ul><li>Paired comparison </li></ul><ul><li>Forced distribution </li></ul><ul><li>Group Appraisal </li></ul><ul><li>HRA </li></ul><ul><li>Assessment centre </li></ul><ul><li>Field review </li></ul>
  9. 9. Individual Evaluation method <ul><li>Confidential Report- </li></ul><ul><li>Used in Government organisations </li></ul><ul><li>Prepared at the end of the year. </li></ul><ul><li>Done by immediate senior </li></ul><ul><li>Strength and weaknesses of employee are taken </li></ul><ul><li>Impression based </li></ul><ul><li>No feedback is offered </li></ul>
  10. 10. Individual Evaluation method <ul><li>2. Essay Evaluation- </li></ul><ul><li>It’s a non quantitative subjective analysis </li></ul><ul><li>Strong and weak points of employee are rated. </li></ul><ul><li>Parameters are- </li></ul><ul><li>Understanding of programmes, policies, objectives etc </li></ul><ul><li>Job knowledge </li></ul><ul><li>The employees relations with coworkers and superiors </li></ul><ul><li>The employee general ability of planning, controlling, organizing etc. </li></ul><ul><li>General perception of the employee </li></ul>
  11. 11. Individual Evaluation method <ul><li>Critical Incident technique- </li></ul><ul><li>The manager prepares the lists of statements of every effective and ineffective behaviour of the employee. </li></ul><ul><li>These rated incidents represents the outstanding or poor behaviour of the employee. </li></ul><ul><li>The manager maintains the log book wherein the critical incidents are reported periodically and considered at the time of appraisal. </li></ul>
  12. 12. Individual Evaluation method <ul><li>Checklists: </li></ul><ul><li>A checklist is the set of objectives or descriptive statements about the employee and his behaviour. </li></ul><ul><li>The rater marks the characteristics which employee possess rest are kept blank. </li></ul><ul><li>Eg- Is the employee really interested in the task assigned? Yes/No </li></ul>
  13. 13. Individual Evaluation method <ul><li>Graphic rating scale- </li></ul><ul><li>A printed form is used to evaluate the performance of the employee . </li></ul><ul><li>A variety of traits are judged on the scale and summarised. </li></ul><ul><li>For eg: Knowledge of job- Clear understanding of the factors connected with the job rated on a scale unsatisfactory, fair, satisfactory, good, outstanding. </li></ul>
  14. 14. Individual Evaluation method <ul><li>6. BARS- Behaviourally Anchored Rating </li></ul><ul><li>Scale </li></ul><ul><li>The critical incidents are selected and rated on the scale which has 6-8 defined performance dimension. </li></ul><ul><li>Process of Implementing BARS- </li></ul><ul><li>Collect critical incidents </li></ul><ul><li>Identify performance dimension </li></ul><ul><li>Reclassification of Incidents </li></ul><ul><li>Assigning scale values to the incidents </li></ul><ul><li>Producing the final instrument </li></ul>
  15. 15. Individual Evaluation method <ul><li>7. Forced Choice Method- </li></ul><ul><li>This method makes use of several sets of paired phrases. Two which are positive and two are negative. The rater has to rate as least applicable most applicable. </li></ul><ul><li>The phrases are non uniformally divided so the chances of biases are not apparent </li></ul>
  16. 16. Individual Evaluation method <ul><li>8. MBO (Management by objective)- </li></ul><ul><li>This technique emphasises on the goals which are tangible, verifiable, measurable. </li></ul><ul><li>It’s a six stepped process- </li></ul><ul><li>Set departmental goals </li></ul><ul><li>Discuss departmental goals </li></ul><ul><li>Define expected results </li></ul><ul><li>Performance review </li></ul><ul><li>Provide feedback </li></ul>
  17. 17. Group Evaluation Method <ul><li>Ranking method- </li></ul><ul><li>The relative position of each employee is expressed in terms of his numerical rank. </li></ul>
  18. 18. Group Evaluation Method <ul><li>Paired comparison method- </li></ul><ul><li>Each worker is compared with all other employees in the group , for every trait , the worker is compared with all other employees. </li></ul>
  19. 19. Group Evaluation Method <ul><li>Forced Distribution Method- </li></ul><ul><li>A predetermined distribution scale. </li></ul><ul><li>Two criteria are used for rating are the job performance and promotability. </li></ul><ul><li>Five point scale is used for descriptive statements. </li></ul>
  20. 20. MODERN METHOD <ul><li>Group Appraisal- </li></ul><ul><li>Employee appraised by group of appraiser </li></ul><ul><li>It is a bias free method </li></ul>
  21. 21. MODERN METHOD <ul><li>2.Human Resource Accounting: </li></ul><ul><li>The HRA process shows the investment the organisation makes I its people and how the value of these people change over time. The acquisition cost of employee is compared to the replacement cost from time to time. </li></ul><ul><li>2. </li></ul>
  22. 22. MODERN METHOD <ul><li>3.Field review method- </li></ul><ul><li>Here the HR department representative goes to the field and assist line supervisors . </li></ul>
  23. 23. MODERN METHOD <ul><li>4. 360 Degree feedback system- </li></ul><ul><li>The system involves overall appraisal of the employees . All the employees are part of te performance appraisal. </li></ul>
  24. 24. Biases in Performance Appraisal <ul><li>First impression </li></ul><ul><li>Halo effect </li></ul><ul><li>Horn effect </li></ul><ul><li>Leniency </li></ul><ul><li>Central tendency </li></ul><ul><li>Stereotyping </li></ul><ul><li>Recency effect </li></ul>