PPT ON PERFORMANCE APPRAISAL AND CAREER PLANNING IN HRM

1. PERFORMANCE
APPRAISAL AND
CAREER PLANNING
Shabeeba k
(Mcom, B.Ed.,
NET)
Asst.professor
Regional
College,
Kizhisseri

2. FEATURES OF
PERFORMANCE APPRAISAL
OR MERIT RATING
1. Continues process
2. Examination of strength and weakness
3. Examination of potential abilities.
4. Periodical.
5. It is a scientific study.

3. MEANING AND DEFINITION
Performance appraisal is a process of assessing, summarizing and
developing the work performance of the employee.
Performance appraisal is the process of evaluating personal job
performance and his potential for development.
According to Scot, Clothier and Spreigal, “performance appraisal is
the process of evaluating an employee’s performance of a job in
terms of its requirements”

4. NEED AND IMPORTANCE
Development and training needs of employees.
Helps to improve performance.
Helps to take personnel decisions.
Useful to rectify the effectiveness of recruitment selection etc.
Creation of competitive spirit.
Helps in develop confidence among employees.
Aids to personnel research.
Identify strengths and weakness.
Systematic evaluation.
Inspiration.
Feedback.

5. OBJECTIVES
To evaluate the job performance.
To improve the job performance.
To identify the strength and weakness.
To motivate the employees.
To evaluate the training program.
To provide training and coaching.

6. PROCESS OF
PERFORMANCE APPRAISAL
Determining objectives.
Establishing performance standard or criteria.
Communicating the standards.
Measuring performance.
Comparing the actual performance with standards.
Discussion.
Corrective action.

8. METHODS OF
PERFORMANCE APPRAISAL
Traditional method
1. Ranking method
2. Paired comparison method
3. Grading system
4. Graphic scale
5. Check list
6. Forced distribution
7. Critical methods
8. Field review
9. Confidential report
10. Free essay method
11. Group appraisal
12. Comparative evaluation

9. Modern methods
1. Assessment center
2. Human resource accounting
3. Behaviorally anchored rating scales
4. Appraisal through MBO
5. Psychological appraisal

10. RANKING METHOD
The ranking method is possibly one of the oldest
employee performance appraisal methods.
The process involves assessing an employee according to a set of
parameters compared to all the other employees.
Essentially, this places them in order of the most to the least
productive.
Although the ranking method has been around for quite some time,
its advantages are limited and do not result in extremely useful
outcomes.
It is implemented in different variations, and each variation has its
own benefits.

11. PAIRED COMPARISON
METHODS
This method involves comparing employees against each other,
meaning one-on-one.
This method traditionally selects a particular trait on which to focus.
The process is quite simple.
The designated 'rater' selects slips with two names on them, then
proceeds to mark the one they believe is the better one.
The number of times the employee's name gets marked for specific
traits decides how high up on the list they will be.

12. GRADING METHOD
Under this method of performance appraisal, different grades are
developed for evaluating the ability of different employees and then
the employees are placed in these grades.
These grades may be as follows: (i) Excellent; (ii) very good; (iii) Good;
(iv) Average; (v) Bad; (vi) Worst

13. GRAPHIC RATING SCALES
The graphic Rating Scale is a performance appraisal method to
evaluate employee engagement, performance & productivity-related
criteria.
Respondents can choose a particular option on a line or scale to show
how they feel about something.
A graphic rating scale shows the answer choices on a scale of 1-3, 1-
5, etc.

14. CHECK LIST METHOD
With a checklist scale performance evaluation method in which a
series of questions is asked and the employees simply responds yes
or no to the questions., a series of questions is asked and the
employee simply responds yes or no to the questions, which can fall
into either the behavioral or the trait method, or both.

15. FORCED DISTRIBUTION
METHOD
Forced distribution is a performance appraisal rating method
requiring the rater to force employee ratings into a bell-shaped curve.

16. CRITICAL INCEDENT
APPRAISAL
A critical incident appraisal focuses on the essential behaviors that
determine whether a task is done well or poorly.
Documentation in this case involves briefly summarizing situations
(incidents) that demonstrate either successful or unsuccessful
behavior and outcomes.

17. FIELD REVIEW METHOD
The field review method is conducted by someone outside of the
employee's own department, most often from HR or corporate.
The reviewer observed the employee for several days, then evaluates
performance.

18. CONFIDENTIAL REPORT
This is a traditional method of appraisal. Generally, government
organizations use it for appraisal.
Employee's immediate superior prepares this report. It covers the
strengths and weaknesses, main achievements and failure, etc.

19. ESSAY APPRAISAL METHOD
the appraiser prepares a written statement about the employee being
appraised.
The statement usually concentrates on describing specific strengths
and weaknesses in job performance.
It also suggests courses of action to remedy the identified problem
areas.

20. GROUP APPRAISAL
both managers and team members receive performance feedback.
Organizations are using team-based performance reviews more and
more to measure employee effectiveness.
Team-based performance reviews are less biased and more inclusive
than individual performance reviews.

21. ASSESSMENT CENTERS
During the assessment, employees are asked to take part in social-
simulation exercises like in-basket exercises, informal discussions,
fact-finding exercises, decision-making problems, role-play, and
other exercises that ensure success in a role.

22. HUMAN RESOURCE
ACCOUNTING
Also known as Human Resource Cost Accounting Method, it is used
to evaluate an employee's performance as per the monetary benefits
they yield from the organization.
This means the performance of an employee is compared against the
salary & other costs the company pays to the employee.

23. BEHAVIOURAL ANCHORED
RATING SCALES (BARS)
A behaviorally anchored rating scale is a tool for measuring employee
performance by measuring them based on predefined behavioral
patterns.
The process typically uses a vertical scale with ratings ranging from
five to nine that represent various degrees of performance, from poor
to very good.

24. MANAGEMENT BY
OBJECTIVES(MBO)
Management by objectives (MBO) is a process in which a manager and
an employee agree on specific performance goals and then develop a
plan to reach them.
It is designed to align objectives throughout an organization and
boost employee participation and commitment.

25. STEPS INVOLVED IN PERFORMANCE EVALUATION TROUGH MBO
1. Establishing objectives
2. Establish targets to be achieved
3. Review of performance
4. Feed back

26. PSYCHOLOGICAL APPRAISAL
This method assesses the employee's potential for future
performance rather than the past one.
It focuses on the employee's emotional, intellectual, and motivational
and other personal characteristics affecting his/her performance.

27. PROBLEMS IN
PERFORMANCE APPRAISAL
1. Faulty assumptions.
2. psychological barriers.
3. Technical difficulties.
4. Other difficulties.

28. 1. FAULTY ASSUMPTIONS
The germinating faulty assumptions between the superior and the
subordinate create problems during the appraisal.
i) The managers naturally wish to make fair and accurate appraisal of
their subordinates.
ii) The managers consider that the method they have selected for
appraisal is the best one and shall work for years.
iii) Sometimes managers believe that personal opinion is better than
formal appraisal

29. iv)fourth assumption is that employees wants to know where they
stand. subordinate resist the appraisal and their reaction against
appraisal has often been powerful.

30. 2.PSYCHOLOGICAL
BARRIERS
i) Feeling of insecurity.
ii) Considering appraisal as an extra burden.
iii) Being excessively modest or skeptical.
iv) Feeling to treat subordinates failures as their inefficiency.
v) Disliking of resentment by subordinates.

31. 3. TECHNICAL DIFFICULTIES
1. criterion problem.
A criterion is the standard of performance the manager desires of his
subordinates and against which he compares their actual
performance. Criteria are hard to define in measurable term or
objective term. Ambiguity, vagueness and generality of criteria are
difficult hurdles for any process to overcome.

32. 2. DISTORTION
Distortions occur in form of biasness and errors in making the
evaluation. such distortion may be introduced by evaluator
consciously or unconciously
An appraisal system has the following distortions:-

33. I) HALO EFFECT:
This distortion occurs when the rater is influenced by rate’s one or
two outstanding good or bad performances and he evaluates complete
performance accordingly. The ‘Halo’ effect refers to the tendency to
rate an individual consistently high or low or average on the various
traits, depending upon whether the rater’s overall impression of the
individual is favorable or not. This means that the halo effect allows
one characteristics, observation or occurrence (good or bad) to
influence the rating of all performance factors.

34. (II) CENTRAL TENDENCY:
This error occurs when the rater marks all the rate’s as average. He
fails to discriminate between superior and inferior persons. The
reason behind this may be lack of knowledge about the behaviour of
individuals, carelessness, lack of time or to avoid chaos.

35. (III) FIRST IMPRESSION
(PRIMACY EFFECT):
The appraisers first impression of a candidate may affect his
evaluation of all subsequent behaviour. In a positive primacy effect,
the employee can do nothing wrong and in negative primacy effect,
employee can do nothing right.

36. (IV) HORN EFFECT:
The rater’s bias is in the other direction, where one negative quality of
the employee is being rated harshly. For E.g, the rate rarely smiles;
therefore he cannot work in teams.

37. (V) CONSTANT ERRORS:
Every evaluator has his own value system, which acts as a standard
against which he makes his appraisals. There are easy raters and
tough raters. Relative to the actual performance some raters have the
tendency to give ‘high values’ to their employees while some assign
‘low values’ The former is called as Positive leniency error and later is
known as ‘Negative leniency error’. In such a situation, the results of
two raters are hardly comparable.

38. (VI) RATERS LIKING AND
DISLIKING:
Managers being human beings have strong liking or disliking for
people, particularly close associates.
The rating is influence by personal factors and emotions and raters
may weigh personality traits more heavily than they realize. Raters
give higher rating to whom they like and vice versa.

39. (IX) STEREOTYPING:
Stereotyping is a mental picture, which an individual holds about a
person because of that person’s sex, age, religion, caste, etc. On such
basis the rater grossly overestimates or underestimates a person’s
performance. For E.g. A person who has sophisticated urban
background and considers rural background as negative may rate
employees from rural India low.

40. (X) RECENCY EFFECT:
Tine rater gives greater weightage to recent occurrences than earlier
performance. For e.g., an excellent performance that may be 6 or 7
months old is conveniently forgotten while giving a poor rating to an
employee ‘s performance which is not so good in recent weeks.
Alternatively, the appraisal process may suffer due to a ‘spill over
effect”, which takes place when past performance influences present
ratings.

41. 3. OTHER DIFFICULTIES
1. poorly trained managers
2 Poor Appraisal forms:
The appraisal process might also be influenced by the following factors relating to the forms that are used by raters:
a. The rating scale may be quite vague and unclear.
b. The rating form may ignore important aspects of job performance.
c. The rating form may contain additional, irrelevant performance dimensions.
d. The forms may be too long and complex.

42. 3. Lack of rater preparedness:
The raters may not be adequately trained to carry out performance
management activities. This becomes a serious limitation when the
technical competence of a rate is going to be evaluated by a rater
who has limited functional specialization in that area. The raters may
not have sufficient time to carry out appraisals systematically and
conduct thorough feedback sessions.
4. ineffective organisational policies and practices.

43. CAREER DEVELOPMENT AND
PLANNING

44. CAREER PLANNING
Career Planning and Development is the process of selecting career
goals, providing a path to those objectives, and taking personal steps
to accomplish those goals.
Career planning is the process by which one selects career goals and
the path to these goals.
The major focus of career planning is on assisting the employees
achieve a better match between personal goals and the opportunities
that are realistically available in the organization.
Career programmers should not concentrate only on career growth
opportunities. Practically speaking, there may not be enough high
level positions to make upward mobility a reality for a large number
of employees.

45. CAREER PLANNING IS
NEEDED FOR THE
FOLLOWING REASONS:
1. Provides career goals and paths
2. Develop competencies
3. Creativity
4. Employee retention
5. Motivation

46. Career planning seeks to meet the following objectives:
i. Attract and retain talent by offering careers, not jobs.
ii. Use human resources effectively and achieve greater
productivity.
iii. Reduce employee turnover.
iv. Improve employee morale and motivation.
v. Meet the immediate and future human resource needs of the
organization on a timely basis

47. ORGANISATIONS CAREER
PLANNING PROCESS OR METHOD
1. assessment of employees
Most individuals do not have a clear cut idea about their
career aspirations, anchors and goals. The human resource
professionals, help an employee by providing as much information as
possible showing what kind of work would suit the employee most,
taking his skills, experience, and aptitude into account.
Such assistance is extended through workshops/seminars while the
employees are subjected to psychological testing, simulation
exercises, etc.
The basic purpose of such an exercise is to help an employee form a
clear view about what he should do to build his career within the
company.
Workshops and seminars increase employee interest by showing the
value of career planning.

48. 2. Analysing career options
Once career needs and aspirations of employees are known, the
organization has to provide career paths for each position. Career
paths show career progression possibilities clearly.
3. Feedback meeting with employees
It is required to determine the organizational goals at first hand try to
place the employees in the pockets suitable to them in terms of their
knowledge, skills , aptitude and experience

49. 4. Formulating and implementing strategies
strategies are those concrete items that lead the organization to
acquire specific goal or competency. This stage involves individual
staff member prioritizing their developmental needs and pursuing
certain activities to address these needs. This means they need to
attend training workshop , undertakes special assignments and
appoint mentors or corporate coaches.

50. CAREER DEVELOPMENT
Career Development is defined as the efforts that are
made by the organization to equip its employees with the
skills, knowledge & experience that help them to perform
the duties of their current as well as future jobs
effectively. The organization develops and implements
certain policies including counseling the employees,
promotion & opportunities to attain excellence that
facilitate the employee to prepare their career.

51. THE SIGNIFICANCE AND ADVANTAGES OF CAREER
DEVELOPMENT BOTH FROM ORGANIZATIONS’ AND
EMPLOYEES’ VIEWPOINTS
It reduces employee turnover by providing increased promotional
avenues.
It improves employees’ morale and motivation.
It enables organizations to man promotional vacancies internally,
thereby reducing the cost of managerial recruitment.
It ensures better utilization of employees’ skills and provides
increased work satisfaction to employees.
It makes employees adaptable to the changing requirement of the
organization.
It reduces industrial disputes related to promotional matters and
thereby provides opportunity to the organization to sustain
harmonious industrial ...