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performance appraisal

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performance appraisal

  1. 1. PERFORMANCE APPRAISAL An Evaluation Of The Sales Force
  2. 2. <ul><li>Performance appraisal is the assessment of an individual’s performance in a systematic way.( against well defined benchmarks). Assessment should not be confined to the past alone, potentials of the employee for future performance must also be assessed. </li></ul><ul><li>Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality performance potential of its group members , </li></ul><ul><li>Managing employees performance facilitates the effective delivery of sales incentive plans. </li></ul>Definitions
  3. 3. Measurement Of Actual Performance Compare Actual Perfrmn With Perfrmn Stds Initiate Corrective Actions-if any Establish Performance Standards Communicate Performance Expectations Performance appraisal - Process
  4. 4. <ul><li>For promotion, selection, training, transfer and HR programme. </li></ul><ul><li>To assess the need of T&D. </li></ul><ul><li>To improve the communication: understanding the goals. </li></ul><ul><li>To identify individual strengths & weaknesses. </li></ul><ul><li>Identification of poor performers. </li></ul><ul><li>To remove work alienation. </li></ul><ul><li>To help develop inter-personal relationships. </li></ul><ul><li>Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. </li></ul><ul><li>To reduce the grievances of the employees. </li></ul>Objectives Of Performance Appraisal
  5. 5. <ul><li>Performance Appraisal is generally done on an annual basis, though many companies now measure the performance of employees on an quarterly basis. </li></ul><ul><li>One period of evaluation is called a performance cycle and is related to specific product goals or job activities. </li></ul><ul><li>Cyclic evaluation provide an adequate input for a semi annual and annual review of sales performance. </li></ul><ul><li>The more the frequency of the appraisal, the more the paper work for the sales manger, thus reducing their time for supervising and serving their own accord. </li></ul>Frequency of Performance Appraisal
  6. 6. <ul><li>Traditional Method </li></ul><ul><li>Rating Scale </li></ul><ul><li>Checklist </li></ul><ul><li>Forced Choice </li></ul><ul><li>Forced Distribution </li></ul><ul><li>Confidential Reports (ACRs) </li></ul><ul><li>Critical Incident Method </li></ul><ul><li>Essay Method. </li></ul><ul><li>Modern Methods </li></ul><ul><li>Written essay </li></ul><ul><li>Critical incidents </li></ul><ul><li>Graphic rating scales </li></ul><ul><li>Behaviourally Anchored Rating Scale </li></ul><ul><li>Multi-person </li></ul><ul><li>360 Degree Application system </li></ul><ul><li>Mgmt By Objectives </li></ul>Methods Of Appraisal
  7. 7. Performance Appraisal Methods Method Advantage Disadvantage Written essay Simple to use More a measure of evaluator’s writing ability than of employee’s actual performance Critical incidents Rich egs behaviorally based Time consuming; lack quantification Graphic rating scales Provide quantitative data; less time-consuming than others Do not provide depth of job behavior assessed BARS Focus on specific n measurable job behaviors Time consuming; diff to dev measures Multi-person compares employees with one another Unwieldy with large no. of employees MBO Focuses on end goals; results oriented Time consuming 360° apprisl More thorough Time consuming
  8. 8. <ul><li>Compensation administration </li></ul><ul><li>Employee benefits </li></ul><ul><li>Union pressure and Strategies </li></ul><ul><li>Cost of Living </li></ul>How are pay levels determined?
  9. 9. <ul><li>Definations: </li></ul><ul><li>Competency Mapping is a process to identify key competencies for an organization and /or a job & incorporating those competencies throughout the various processes (i.e. Job evaluation, training, recruitment) of the orgnisation. </li></ul><ul><li>Competency Mapping is the process of identification, evaluation of employees’ competencies and organizational requirements and establishing perfect collaboration between them. It also includes develpoment and sustainability of competencies based on the changing organizational needs. </li></ul>Competency Mapping
  10. 10. <ul><li>Enhancement of business needs </li></ul><ul><li>Aligning behaviors with business strategies </li></ul><ul><li>Integration of HR system with competencies </li></ul><ul><li>Measurement of human capital </li></ul><ul><li>Help to appreciate human capital </li></ul><ul><li>Enhances organizational competitive advantage </li></ul><ul><li>Talent retention </li></ul><ul><li>Develop situational leadership skills </li></ul><ul><li>Manage at the rate of organizational change </li></ul>Advantages Of Competency Mapping
  11. 11. <ul><li>Most of the performance appraisals are done on an individual basis. However, modern day organizations have brought the idea of team appraisals to evaluate the performance of a team as a whole instead of appraising performance of individual employees. </li></ul><ul><li>This development is due to the fact that organizations are assigning work to teams rather than individuals. </li></ul><ul><li>Companies following TQM principles follow team appraisals as TQM sets for the team assignment of the work rather than individual assignments. </li></ul>Individual vs. Team Appraisal
  12. 12. <ul><li>The following steps are initiated by the organization against the employees whose performance falls short of the standard set by the organization: </li></ul><ul><li>Discipline actions – such actions are taken by a manager to enforce an organization's standards and regulations. </li></ul><ul><li>Employee counseling- a process designed to help employees overcome performance-related problems. </li></ul><ul><li>CAP Letter- Corrective Action Plan Letter has 3 parts: </li></ul><ul><li>CAP 1 - Verbal Warning </li></ul><ul><li>CAP 2 - Written Warning </li></ul><ul><li>CAP 3 -Termination Letter </li></ul>What happens when performance falls short??
  13. 13. <ul><li>Rating biases- halo effect, error of central tendency, leniency and strictness, personal prejudice, etc </li></ul><ul><li>Poor performance appraisal interviews </li></ul><ul><li>Less reliability and validity of the performance appraisal techniques </li></ul><ul><li>Negative ratings affect inter-personal relations </li></ul><ul><li>Influence of external environmental factors and uncontrollable internal factors </li></ul><ul><li>Mgmt emphasis on punishment rather than development </li></ul><ul><li>Many ratings about potential appraisals is based on guess work </li></ul><ul><li>Most part of the appraisal is based on subjectivity </li></ul>Problems of Performance Appraisal
  14. 14. <ul><li>Mr. Devang Dutta is a successful salesperson for Godrej Security Systems, a leading company in India, selling security systems. Dutta has been an above average performer by meeting targets and going ahead and achieving higher sales. The problem is that he is not as great as he would like himself to believe. He has a feeling that he should be promoted as a sales manager for the opening in a nearby territory so that he can supervise salespeople. </li></ul><ul><li>Mr. Ramakant Sen, his supervisor, feels that there is going to be some trouble if Dutta is not given the job. He has a feeling that though Dutta is a good salesperson, he probably cannot handle the additional responsibility of a sales manager, which involves man-management issues. </li></ul><ul><li>contd… </li></ul>CASE STUDY Godrej Security Systems : A Salesperson's Story
  15. 15. <ul><li>Dutta is no doubt one of the shining stars of the company as a salesperson, but he is found to be a loner. Mr. Sen has a feeling that he is not at all ready to manage a group of sales people. There is no scope of openings at the managerial level in the near future. Mr. Sen received an letter from Dutta, which indicates a crises within him. </li></ul><ul><li>The letter basically stated that how Dutta has always met his targets, brought new customers, and has been rated as a star performer in the review report. It mentioned that Dutta didn’t have any complaints regarding his salary and perks but that he feels that he is ready for the sales manager’s job. If the company does not wish to use his talent he’ll go and work in the competitor's company. </li></ul><ul><li>Q. Dutta expects the company to promote him to the next level, if not now, then maybe in the next performance cycle. What should Mr. Sen do now? </li></ul>… contd
  16. 16. <ul><li>Bhavisha Sharma 808 </li></ul><ul><li>Khushboo Jain 816 </li></ul><ul><li>Siloni Sangra 844 </li></ul><ul><li>Vikrant Raghav 856 </li></ul>Thank You!!

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