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ObjectivesObjectives
About Performance appraisal
MeaningMeaning
DefinitionDefinition
Process of Performance Appraisal
ModernModern
Methods / Techniques of Performance Appraisal
TraditionalTraditional
Index
Issues in Performance Appraisal
Advantages of Performance Appraisal
Disadvantages of Performance Appraisal
defInItIons
According to Newstrom, “It is the process of evaluating
the performance of employees, sharing that
information with them and searching for ways to
improve their performance’’.
MeanIng
Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees .
A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in terms
of its requirements.
objectIves of PerforMance aPPraIsal
Employee Organization
measuring the efficiency
maintaining organizational
control.
concrete and tangible
particulars about their work
assessment of
performance
mutual goals of the
employees & the organization.
growth & development
increase harmony & enhance
effectiveness
 Personal development
 work satisfaction
 involvement in the
organization.
According to:
Aims at:
Setting
performance
standardsTaking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards
Process
1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description
method
4. Forced Distribution Method
5. Checks lists
6. Free essay method
7. Critical Incidents
8. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
1. Assessment Center
2. Appraisal by Results or
Management by
Objectives
3. Human Asset
Accounting
4. Behaviorally Anchored
Rating scales
Traditional Methods Modern Methods
Methods of PerforMance
aPPraisal
As compared to A B CAs compared to A B C
A + - +
B - + -
C + - +
For the Trait “Quality of
work”
A - + +
B + - +
C + + -
As compared to A B CAs compared to A B C
For the Trait “Creativity”
+
+
++
+
+
+
+ +
-
-
-
--
- -
- -
Person rated Person rated
ranking eMPloyees by Paired coMParison
Method
graPhic or linear rating
scales
attitude
No interest
In work:
consistent
complainer
No interest
In work:
consistent
complainer
Careless:
In-different
Instructions
Careless:
In-different
Instructions
Interested in
work:
Accepts
opinions &
advice of
others
Interested in
work:
Accepts
opinions &
advice of
others
Enthusiastic
about job &
fellow-
workers
Enthusiastic
about job &
fellow-
workers
Enthusiastic
opinions &
advice
sought by
others
Enthusiastic
opinions &
advice
sought by
others
decisivene
ss
Take decisions
in
consultation
with others
whose views
he values
Take decisions
in
consultation
with others
whose views
he values
Slow to
take
decisions
Slow to
take
decisions
Take
decisions
after careful
consideration
Take
decisions
after careful
consideration
Takes
decisions
promptly
Takes
decisions
promptly
Take
decisions
without
consultation
Take
decisions
without
consultation
0 5 10 15 20
0 5 10 15 20
Criteria Rating
1.Regularity on the job Most Least
forced choice
Method
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
No.
of
employees 10% 20% 40% 20% 10%
poor Below
average
average good Excellent
Force distribution curve
forced distribution
Method
Staff Appraisal
Name . . . . . . . Job Title . . . . . . .
Department . . . . . . . . . . . . Date of Review . . . . . . .
Age . . . . . .. . Years in present job
Section I Appraisal Of Performance
Note to Appraiser
1.Appraisal must cover the period of the preceding 12 months
2.Consideration to every function & responsibility of the job
3.An objective factual assessment of an employee’s improvement or
deterioration
Section II Promotability & Potential
Promotability
1.Promotion now
2.Within 2 years
3.Within 5 years
4.Unlikely to qualify for promotion
Section III Career Development
Section IV Notes on Interview with employee
Section V Comments on & Endorsement by Reviewing Authority
sPeciMen of staff assessMent forM [descriPtive
essay tyPe]
Ex: A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
critical incident Method
Performance subordinate peers superior customer
Dimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
Field review method
Group appraisal method
mBo process
Set organizational goals
Defining performance target
Performance review
feedback
Performance Points Behavior
Extremely
good
7 Can expect trainee to make valuable suggestions
for increased sales and to have positive
relationships with customers all over the
country.
Good 6 Can expect to initiate creative ideas for improved
sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods
in time.
Below average 3 Can expect to unload the trucks when asked by
the supervisor.
Poor 2 Can expect to inform only a part of the
customers.
Extremely poor 1 Can expect to take extended coffee breaks &
roam around purposelessly.
Behavioral anchored ratinG scales
360 deGree perFormance appraisal
These companies are using 360 Degree
Performance Appraisal Method
examples oF 360 deGree perFormance
appraisal method
Wipro
Infosys
Reliance Industries
Maruti Udyog
HCL Technologies
Wyeth Consumer
Health (WCH)
issues in appraisal system
appraisal
desiGn
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
Constant checkinducesemploye
e to
perform
better
AdvAntAges
disAdvAntAges
Performance appraisal ppt

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Performance appraisal ppt

  • 1.
  • 2. ObjectivesObjectives About Performance appraisal MeaningMeaning DefinitionDefinition Process of Performance Appraisal ModernModern Methods / Techniques of Performance Appraisal TraditionalTraditional Index Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal
  • 3. defInItIons According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
  • 4. MeanIng Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
  • 5.
  • 6. objectIves of PerforMance aPPraIsal Employee Organization measuring the efficiency maintaining organizational control. concrete and tangible particulars about their work assessment of performance mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness  Personal development  work satisfaction  involvement in the organization. According to: Aims at:
  • 8. 1. Paired comparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. Free essay method 7. Critical Incidents 8. Group Appraisal 9. Field Review Method 10.Confidential Report 11.Ranking 1. Assessment Center 2. Appraisal by Results or Management by Objectives 3. Human Asset Accounting 4. Behaviorally Anchored Rating scales Traditional Methods Modern Methods Methods of PerforMance aPPraisal
  • 9. As compared to A B CAs compared to A B C A + - + B - + - C + - + For the Trait “Quality of work” A - + + B + - + C + + - As compared to A B CAs compared to A B C For the Trait “Creativity” + + ++ + + + + + - - - -- - - - - Person rated Person rated ranking eMPloyees by Paired coMParison Method
  • 10. graPhic or linear rating scales attitude No interest In work: consistent complainer No interest In work: consistent complainer Careless: In-different Instructions Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Interested in work: Accepts opinions & advice of others Enthusiastic about job & fellow- workers Enthusiastic about job & fellow- workers Enthusiastic opinions & advice sought by others Enthusiastic opinions & advice sought by others decisivene ss Take decisions in consultation with others whose views he values Take decisions in consultation with others whose views he values Slow to take decisions Slow to take decisions Take decisions after careful consideration Take decisions after careful consideration Takes decisions promptly Takes decisions promptly Take decisions without consultation Take decisions without consultation 0 5 10 15 20 0 5 10 15 20
  • 11. Criteria Rating 1.Regularity on the job Most Least forced choice Method •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
  • 12. No. of employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve forced distribution Method
  • 13. Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1.Appraisal must cover the period of the preceding 12 months 2.Consideration to every function & responsibility of the job 3.An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability 1.Promotion now 2.Within 2 years 3.Within 5 years 4.Unlikely to qualify for promotion Section III Career Development Section IV Notes on Interview with employee Section V Comments on & Endorsement by Reviewing Authority sPeciMen of staff assessMent forM [descriPtive essay tyPe]
  • 14. Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1 critical incident Method
  • 15. Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^ Field review method
  • 17. mBo process Set organizational goals Defining performance target Performance review feedback
  • 18. Performance Points Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks & roam around purposelessly. Behavioral anchored ratinG scales
  • 20. These companies are using 360 Degree Performance Appraisal Method examples oF 360 deGree perFormance appraisal method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)
  • 21. issues in appraisal system appraisal desiGn Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods?