Performance appraisal


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Performance appraisal

  1. 1. Presented by:-<br />NishaGoyal<br />Rakesh Singh<br />Performance Appraisal<br />
  2. 2. Introduction<br />Purpose of Performance Appraisal<br />prerequisites for conducting performance Appraisal<br />Basic Steps in a Performance Appraisal<br />Performance Appraisal and Competitive Advantage<br />Method of Appraisal<br />Challenges of Performance Appraisal<br />Performance Appraisal in TCS<br />Contents<br />
  3. 3. Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.<br />Strategic Performance Appraisal- employees evaluated by individual goals that are linked to overall organizational goals and objectives <br />Introduction<br />
  4. 4. To effect promotions based on competence and performance.<br />To confirm the services of probationary employees upon their completing the probationary period satisfactorily.<br />To assess the training and development needs of employees.<br />To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed.<br />Purpose of Performance Appraisal<br />
  5. 5. To let the employees know where they stand .<br />To improve communication.<br />Finally, performance appraisal can be used to determine whether HR programmes such a selection, training, and transfers have been effective or not<br />Broadly, performance appraisal serves four objectives-<br /> developmental uses,<br />administrative uses/decisions,<br />organizational maintenance/objectives, and<br />documentation purposes<br />Contd…..<br />
  6. 6. Prerequisites for Effective & Successful performance Appraisal<br />Documentation<br />Standards / Goals<br />Practical and simple format<br />Evaluation technique<br />Communication<br />Feedback<br />Personal Bias<br />
  7. 7. Calibration meetings- managers and supervisors discuss performance ratings and come to a consensus on individual ratings <br />Reinforces perceived importance of process <br />Improves differentiation factor<br />Workforce performance and learning goals identified, based on organizational objectives<br />Day-to-Day feedback<br />Strategic Performance Appraisal Trends<br />
  8. 8. Manager as a ‘coach’ instead of ‘appraiser’<br />Allows for future career planning and organizational goal linkage <br />Changing the employee perception of performance management<br />Help employees set appropriate goals<br />Contd…<br />
  9. 9. A manager performs the appraisal annually, based on individual productivity stats<br />The appraiser fills out a form which states the employee’s productivity and some subjective comments about behavior <br />The appraisal’s main purpose is to determine raises and promotions <br />Example of Traditional PA<br />
  10. 10. An organization’s core values include continuous improvement of customer service. A goal is set during the PA process that involves reducing customer service complaints by 15% in the coming year. This is linked to organizational values and is measurable. <br />The manager establishes bi-monthly feedback sessions, where employees and managers have a brief one-on-one conversation regarding current performance goals and standards related to the status of the organization at that specific point in time. <br />Examples of Strategic Performance Appraisal<br />
  11. 11. Employees set their own goals<br />The core competencies are all tied into one of the five “pillars of excellence”<br />Change in focus from past performance to forward-focus and goal attainment<br />Employees and managers now have an ongoing ‘performance partnership’ <br />Expectations adjusted and based on global corporate demands <br />How are Organizations Using Strategic PA?<br />
  12. 12. Conduct ongoing observations and measurements to track performance<br />Exchange ongoing feedback about performance<br />Conduct a performance appraisal (sometimes called performance review)<br />If performance meets desired performance standards, reward for performance<br />Basic Steps in a Performance Appraisal<br />
  13. 13. Performance Appraisal and Competitive Advantage<br />Improving<br />Performance<br />Strategy and<br />Behavior<br />Making correct decisions<br />Competitive<br />Advantage<br />Ensuring Legal Compliance<br />Values and <br />Behavior<br />Minimizing dissatisfaction and turnover<br />
  14. 14. Method of Appraisal<br />Performance Appraisal<br />Traditional<br />Modern<br /><ul><li>Management By Objective
  15. 15. 360 Degree Appraisal
  16. 16. Assessment Center
  17. 17. Behaviorally Anchored Rating Scale
  18. 18. Human Resource Accounting
  19. 19. Essay Appraisal Method
  20. 20. Straight Ranking Method
  21. 21. Paired Comparison
  22. 22. Critical Incident Method
  23. 23. Field Review
  24. 24. Checklist Method
  25. 25. Graphic Rating Scale
  26. 26. Forced Distribution</li></li></ul><li>Application of MBO in the field of performance appraisal is a recent thinking.<br />The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.<br />Management By Objectives<br />
  27. 27. Four Steps in the MBO Process<br />The first step is to establish the goals each subordinate is to attain.<br />The second step involves setting the performance standard for the subordinates in a previously arranged time period.<br />In the third step, the actual level of goal attainment is compared with the goals agreed upon.<br />The final step involves establishing new goals and, possibly new strategies for goals not previously attained.<br />MBO Process<br />
  28. 28. 360 Degree Appraisal<br />The combination of peer, subordinate, and <br /> self-review<br />360 degree feedback<br />
  29. 29. Sanctioned from the top <br />Involve employees / managers in developing appraisal criteria / process<br />Train employees how to give feedback<br />Inform employees of the process<br />Pilot test in part of organization<br />Reinforce goals of 360° appraisal <br />Revise process when necessary<br />360 Degree Appraisal Process<br />
  30. 30. An assessment centre will have a standardized process for evaluation of behavior using multiple inputs.<br />Assessment centers serve three main human resources functions: <br />Selection and promotion <br />Diagnosis<br />Development<br />Assesment Center<br />
  31. 31. Candidates participate in a series of exercises that simulate on- the job situations<br />A Typical Assessment Center<br />Trained assessors carefully observe and document the behaviors<br />displayed by the participants. Each assessor observes each participant at least once<br />Assessors individually write evaluation reports, documenting their observations of each participant's performance<br />Assessors integrate the data through a consensus discussion process, led by the center administrator, who documents the ratings and decisions<br />Each participant receives objective performance information from the administrator or one of the assessors<br />
  32. 32. Behaviorally Anchored Rating Scales (BARS) are scales used to rate performance. BARS are normally presented vertically with scale points ranging from five to nine.<br />Developing a BARS typically requires five steps:<br />Generate critical incidents<br />Develop performance dimensions <br />Reallocate incidents<br />Scale the incidents<br />Develop a final instrument<br />BARs<br />
  33. 33. Ratings Example: BARS<br />Indicate the appropriate level of performance on each factor:<br />Quantity of work<br />Quality of work<br />Judgment<br />Volume low & erratic<br />Satisfactory steady<br /> volume<br />Volume above expectations<br />Results always accurate;<br /> model work<br />Results accurate and<br /> thorough<br />Results generally<br /> inaccurate and not thorough<br />Systematic, analytical, <br />Goodwith complex problems<br />Practical judgment, <br />solves problems, difficulty with assessing relative value of factors<br />Does not always show goodjudgment; problem analysis not always adequate<br />
  34. 34. In 720 degree appraisal, raters include-<br /> Customers <br /> Suppliers<br /> Stakeholders <br /> Family<br />This  gives  a  pre and  a  post   intervention results. The  pre-intervention results   set   the  baseline. <br />720 degree Appraisal<br />
  35. 35. Human Resource Accounting is a method to measure the effectiveness of personnel management activities and the use of people in an organization.<br />In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees.<br />Human Resource Accounting<br />
  36. 36. Appraiser Discomfort<br />Lack of Objectivity<br />Hallo/Horn effect<br />Leniency/Strictness<br />Central Tendency<br />Personal Bias<br />Manipulating the evaluation<br />Challengesof Performance Appraisal<br />
  37. 37. “A poor performer is not always a poor performer for life,” says S Padmanabhan, executive vice president, global human resources, Tata Consultancy Services (TCS). <br />TCS conducts two appraisals:<br />At the end of the year<br />At the end of a project<br />Performance Appraisal Criteria at TCS<br />
  38. 38. Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basis of targets at four levels — <br /> financial<br /> customer<br /> internal<br /> learning and growth <br />Based on their individual achievements, employees are rated on a scale of one to five <br />Contd…..<br />
  39. 39. To avoid that, TCS shuffles its employees between projects every 18 months or so. “Performance drops if motivation drops”<br />TCS's performance appraisal system is supported by an online system called the Human Resource Management System- an Oracle Developer 2000 based tool.<br />Contd….<br />