2. Performance Appraisal system is a part of ongoing
management process, the purposes of which are to:
Provide for systematic planning by allowing the
manager to identify critical job elements & objectives.
Conduct a systematic review of employees overall
performance & provide constructive feedback.
Provide objective information to guide management
decisions on promotions etc.
Establish an objective basis for determining annual
performance.
3. Establishing Performance Standards
Communicating Performance Standards to
employees
Measuring Actual Performance
Comparing Actual Performance with Standards
Discussing appraisal with the employees
Taking Corrective Action
4. The following criteria should be followed to make the
performance appraisal more effective:
Make performance appraisal part of an ongoing
process
Look at all aspects of an employee’s performance
Make specific and constructive judgments
Criticize work habits & behavior, not the person
Don’t let marginal employees slide
Keep complete written records for all performance
appraisals.
5.
6. Developing Business Plans
Establishing aspects of performance that need to be
measured
Setting up Systems to Monitor & Evaluate
Defining the General Performance Expectations of
Employees
Agreements on Specific Performance Objectives
Developing an Internal Communications System
Ensuring that the performance Appraisal System is
well understood & is working effectively
Supporting employees to help them perform well
Seeking Performance improvement
Recognizing & Rewarding good performance
7. Jobs
Capabilities
Technical Managerial Human Concept
ual
Skilled workers,
operators, clerks,
typist, foreman, etc.
Very much
essential
Not needed Some
desirable
Some
essential
Not
Needed
First level supervisor,
junior
Very essential A few are
desirable
Some
desirable
Some
essential
Not
Needed
Junior & middle level
manager
Some important
many not
essential
Important Some
essential
A few
are
useful
8. Junior &
middle level
manager
Some
important
many not
essential
Important Some
essential
A few are
useful
Senior
managers,
Head of
Dept./Sec
A few are
desirable
Very essential Many are
needed Some
are important
Desirable
Unit Heads,
GM etc.
A few are
desirable
Very essential Many are
essential &
important
Essential
Chief
Executives
Not needed Important Very essential Most
Essential
9. Traditional Modern
•Graphic Rating Scales
•Confidential Report
•Straight Ranking Method
•Paired Comparison Method
•Forced Distribution Method
•Grading System
•Checklist Method
•Critical Incident Method
•HR Scorecard
•HR Accounting
•Competency Mapping
•Assessment & Development Centre
•360 degree Appraisal
•540 degree Appraisal
•Management by Objective (MOB)
•Behaviorally Anchored Rating Scale
(BARS)
12. Development of Reward
Strategy
.
Business Strategy
Satisfy need and expectations of stake holders
Provide added value to customers
HR Stratery
Define what the organization wants & is prepared to pay for encourage & support desired behavior
Develop & maintain competitve pay policies which will attract & retain high quality people.
Adopt a total rewards approach which includes a mix of rewards the best meets & individuals needs.
Reward Strategy
Obtain, develop and retain the skilled, motivated & committed people the organization needs
13. Reward Management Process
Non Financial
Rewards
Employee
Benefits
Market
Surveys
Business Reward Pay Pay Levels Total Improved
Strategy Strategy Structures & relativities remuneration performance
Job Evaluation
Performance Pay
Perfomance Employee
Mangement development
