Complete topic covered of performance appraisal

1. Performance Appraisal
Name: Richa Shroff

3. Performance is measured
against
Abilitie
s
Supervisio
n
Versatilit
y
Co-
operation
Job
KnowledgeQuality

4. Objectives of
Performance
Appraisal
To identify strengths and weakness
To access the potential in a person
To provide feedback to employees
regarding their performance
To retain their promotional l training
program

5. Promotion
Compensation
Employee
Development
Communication
Selection
Validation

6. Halo Effect
• Positive
qualities are
considered
• Results are
not correct
Criterion Effect
Central
tendency
• Appraisal is
given on
central
tendency
basis
Spillover effect
• Employee is
judged
positively or
negatively on
past
performance
basis
Leniency and
strictness
• Due to strict
bosses it
might happen
some
employees
may loose
the
opportunity
to be
promoted
Limitations of Performance Appraisal

7. Decision Making
Feedback
Comparing the actual performance with desired performance
Measuring the actual performance
Communicating the standards
Establishing Performance standards
Process of Performance Appraisal

8. Methods of Performance Appraisal
1. Graphic Rating Scale
Method
2. Ranking Method
3. Paired Comparison Method
4. Essay Method
5. Group Appraisal
6. Confidential Reports
7. Checklists method
1. Behavioral anchored rating scale
2. Assessment centre
3. Human Resource Accounting
4. Management by objectives
5. Psychological Appraisals
6. Results method
7. Productivity method
8. Balance score method
9. 360 degree feedback appraisal
Traditional Methods Modern Methods

9. 1 Graphic rating scale
method
• Compares individual performance to
absolute standard
• Simple scale
• Each attribute is provided on graph
• Provides numerical scale for
performance
Traditional Methods

10. 2 Ranking Method
1. Oldest and simplest method
2. It involves of ranking from best to the
worst
3. Overall qualities are considered
4. Difficult to use with large group of
employees

11. 3 Paired Comparison Method
•Under this method employee is ranked by
appraiser by comparing one employee with
all in the group one at a time
•Can be employed fairly when number of
employees are less
•Formulae used here: N(N-1)/2
Suppose there are 5 employees to compared ..
A,B,C,D,E
A B
A C
A D
A E

12. 4 Essay method
•Under this method the
rater is asked to rate
•It is a descriptive method
•It is a non quantitative
technique
•It is a narrative method
•Time consuming method
•Depends upon the
writing skills of managers

13. 5 Group Appraisal
1. Under this group of evaluator
assess employees
2. Members involved in this group
might be superiors, immediate
supervisor, head of the
department and a personal
expert

14. 6 Confidential Reports
1. Used by the government
departments
2. Report is been prepared through
supervisors observation
3. Report that is prepared is kept
confidential and not revealed to
anyone in the organization
4. Directly passed to the top
management
5. Used by departments like police
and other judiciary department

15. 7 Checklists method
1. Rater is given a
checklists of
questions based on
behaviour
2. It is simplest form
3. It might be set of
objectives or
descriptive
questionsQuestions might be in the following form:
1) Is the employee interested in the work assigned?
Yes/No

16. Modern Methods
1
Behaviorally anchored rating
scale (BARS)
• It is a combination of graphic rating
scale and critical incident method
• Behavior and incident is identified
Incidents Behavior

17. 2 Assessment centre
•Was used first time in 1930 by
Germany and then in 1960’s by the
British Army
•Techniques like business games role
playing and in basket exercises are used
under this method
•Helps in measuring the planning ability,
interpersonal skills and organizational
skills

18. 3 Human Resource Accounting
•It deals with cost
contribution of human
resources to the
organization
•Cost of employees may
include manpower
planning, recruitment,
selection, induction etc

19. 4
•Concept was introduced by Peter
Drucker
•Focuses attention on participative
process
•Times consuming method
•Also known as goal setting appraisal
Management by objectives
(MBO)

20. 5 Psychological Appraisals
•Conducted to assess
employees potential
•Consists of in-depth,
interview, consultations &
psychological tests etc
•It is conducted in the areas
of:
A. Intellectual abilities
B. Emotional stability

21. 6 Balance Scorecard method
•Continuous loop process
•Provides continuous feedback
•Suppose in area of sales customer,
sales man
•Learning and people management
contributes to the enhancement of
the internal process

22. 7 360 Degree feedback method
•Also known as multi rater method
•Number of raters involved
•Most comprehensive appraisal
•It includes of superior, subordinates,
team members, customers and
suppliers
•Most credible method
•Evaluation is done by one and all

23. Process of Performance Appraisal
Establishing performance standards
Communicating standards
Measuring the actual performance
Comparing the actual performance with
desired performance
Feedback
Decision Making

24. 1. Setting up standard that will be used to compare performance
2. Standards set should be clear and understandable
3. Helps in identifying successful and unsuccessful contribution
Establishing standards

25. Communicating Standards
1. Once set it is responsibility of management to communicate the
standards
2. Employees should be clearly explained
3. Helps in knowing their responsibilities and role
4. Should be also introduced to appraisers and raters

26. Measuring the actual
performance
1. Continuous process
2. It is the amount of work done by employees in a specified period
3. It requires careful selection of techniques which should not create
biasness

27. Measuring the actual
performance with desired
performance
1. Actual performance is compared with desired performance
2. Tells the deviations in the performance
3. Helps in depicting negative deviation
4. Recalling, Evaluating and analysis

28. Feedback
1. Result of appraisal is communicated
2. Discussed with employees one to one
3. Focus of feedback is communication and listening

29. Decision making
1. Decisions regarding promotion demotion and sometimes suspension and
dismissal are taken
2. Decision should match with his appraisal in order to avoid grievances

30. Promotions
Advancement of an
employee
Reassignment of higher
level job to an employee
Greater responsibility
Greater skills
High pay

31. Objectives of Promotion
To utilize
employee’s skill
Develop internal
competent
human resource
Built loyalty and
boost up morality
Develop a sense
of belongingness
Reward committed and
loyal employees

32. Basis of
promotion
Merit
basis
Seniority
basis
Merit like job
knowledge skills,
ability and efficiency
Relative strength of
service in same job
No favoritism
Minimizes grievances
and conflicts

33. Types of promotion
Vertical
promotion Up gradation Dry promotion
•Employee is moved to
higher level
•Higher salary
•Higher responsibility
•Higher Authority
•Job is only upgraded
•High salary
•High Authority
•High Responsibility
•Employee is moved to
higher level
•High Authority
•High Responsibility
•No higher pay

34. Rule :
•Must be fair and impartial
•Must provide equal opportunities to all
•Must contain clear cut norms, criteria
•Favoritism should not be considered
Principles of Promotion

35. Rewards and Incentives
Acts as
benefits
To both employees
and employers
Productivity
increases
Creates positive
work environment

36. Types of Rewards and Incentives
Monetary
Non
Monetary
Employee
Recognition
Employee
Assistance

37. Monetary Incentives
Money form
Incentives include
Employee stock
option plan
Bonuses/ cash
awards
Encourages friendly
competition

38. Non Monetary Incentives
Non monetary form
No money is provided
Perks and opportunities
are provided
Includes flexible working
hours, training
opportunities and work
independently
It allows the workers to
pursue what they want

39. Employee Recognition
People who receive recognition
tend to have more positive
attitude
Helps in providing feedback and
encouragement to employees
Includes verbal praise, awards,
and public announcements
Recognition might be in form of
weekly daily or monthly basis

40. Employee Assistance
Balance between
work life and
home life
Day care for
children
Job fitness program
for healthy lifestyle

41. HR records
Records
pertaining
to
employees
Records are
maintained in
systematic
manner
Complete details
are maintained
like name, date
of birth,
qualification and
education

42. Purpose of
Personnel
records
To supply crucial information to
managers regarding the
employees
Keep an update of leaves, lockouts
and transfers, turnovers etc
Helps managers to make necessary
salary provisions , allowances and
other benefits

43. HRIS (HUMAN
RESOURCE
INFORMATION
SYSTEM)
SOFTWARE
SOLUTION
FOR SMALL & MID
SIZED BUSINESS
TO MANAGE
PAYROLL,
MANAGEMENT
AND ACCOUNTING
ACTIVITIES

44. HRIS HELPS
IN
PROVIDING
MORE
EFFECTIVELY
PLAN
CONTROL
MANAGE HR
COSTS
BENEFITS
TRAINING

45. FOLLOWING MODULES ARE DESIGNED FOR HRIS
• PAYROLL MODULE • TIME &
ATTENDANCE
MODULE
• HR MANAGEMENT
MODULE
• BENEFITS
ADMINISTRATION
MODULE
• ONLINE RECRUITING • TRAINING MODULE

46. PAYROLL MODULE
1. AUTOMATES GATHERING DATA ON
EMPLOYEE TIME AND ATTENDANCE
2. CALCULATES VARIOUS TAX
DEDUCTIONS
3. ALSO HELPS IN CREATING TAX
REPORTS
4. IT INTEGERATES ALL FINANCIAL
ACTIVITIES

47. TIME & ATTENDANCE
MODULE
1. GATHERS TIME AND WORK
RELATED EFFORTS
2. BROAD FLEXIBILITY IN DATA
3. COST ANALYSIS AND EFFIECIENCY
METRICS ARE THE PRIMARY
FUNCTIONS

48. BENEFITS
ADMINISTRATION
MODULE
1. HELPS TRACKING
EMPLOYEES BENEFITS
PROGRAMS
2. TYPICALLY ENCOMPASSES
INSURANCE,
COMPENSATION, PROFIT
SHARING AND RETIREMENT

49. HR MANAGEMENT
MODULE
•THIS RECORDS BASIC
DEMOGRAPHIC AND ADDRESS
DATA, SELECTION, TRAINING AND
SKILLS RELATED ACTIVITIES

50. ONLINE RECRUITING
MODULE
•HELPS IN IDENTIFYING THE
PERSONNEL USAGE WITHIN AN
ORGANIZATION
•HELPS IN IDENTIFYING
POTENTIAL APPLICANTS
•HELPS IN RECRUITING THROUGH
ONLINE SITES

51. TRAINING MODULE
•THIS SYSTEM IS NORMALLY CALLED AS
“LEARNING MANAGEMENT SYSTEM”
•HEPLS TO HR TO TRACK EDUCTATION,
QUALIFICATIONS AND SKILLS OF
EMPLOYEES
•AS WELL AS HELPS IN OUTLINING WHAT
TRAINING COURSES, BOOKS, CD’S OR
WEB BASED MATERIAL ARE AVAILAIBLE