This document provides information about performance appraisal. It discusses the objectives, process, methods, and errors of performance appraisal. It also covers topics like job evaluation, organizational strategies related to appraisal, psychological appraisal and assessment centers. Different analytical and non-analytical methods of job evaluation are described along with the process of employee classification. The document is presented by Group 3 and contains an outline and explanations of key areas regarding performance appraisal.

1. Welcometo presentation
PerformanceAppraisal

2. Group-3
 DipanwitaDey 120305
 PriyankaHui Chowdhury 120316
 ArnaBanerjee 120324
 Nusrat Jahan 120329
 SumonaHossain 120336
 Niaz Bhuian 120354
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3. Outline
 Performance Appraisal
 Objectives of performance appraisal
 Appraisal process
 Rating errors
 Method of appraisal
 Psychological appraisal
 Assessment center
 Method of job evaluation
 Organizational Strategy &Performance Appraisal
 Job evaluation &it’s process
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4. It is assessment of an individual’s
performance in a systematic way &
measurement performance against
factors like job knowledge, quality,
quantity of output , leadership,
abilities, supervision, dependability,
co-operation, judgment, versatility,
health etc.
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5. Performance appraisal
 “It is the systematic evaluation of individual with respect
to his or her performance on the job.”
 “Performance appraisal is a formal, structure system of
measuring an employee and evaluating an employee’s
job related behaviors and outcome.”
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6.  Effect promotions based on competence and
performance.
 Confirmation of the service of probationary employees.
 Assess the training & development needs of employee.
 Decide pay raise .
 Assist, guide employees with constructive criticisms.
 Improve communication skill of employees .
 Determine HR programmers'(selection, training, transfer)
effectiveness.
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8.  Objectives of appraisal
 Assessment of work system that effect
performance
 Identification of system obstacles
 Facilitate development & motivation
 Establish job expectation
 Informing employees about the expectations
 Review major duties
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9.  Design appraisal program
 Following questions needed to be answered
• Whose performance to be assed?
• Who are the raters?
• What problems are encounter?
• How to solve problems?
• What should be evaluated?
• When to evaluate?
• What method of appraisal?
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10. Rating errors
• Leniency or severity
• Central tendency
• Halo error
• Rater effect
• Primary & recency effects
• Perceptual set
• PerformanceDimension order
• Spillover effect
• Statuseffect
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11. Leniency or severity
At the time of rating rater may have following
misconceptions
 May think anyonerated unfavorably isdischarged
 May think derogatory rating will harm relationships
 May rateleniently to win promotions
 May projecting
 Try to gel approval
 Want to set cultureof approval
 May rateunfavorably for showing own worthiness
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12. Central tendency
The attitude shown by the rater to be safe
– Do I know theperson sufficiently well to givefaireassessment?
– What will beimpact on our relationship?
– What will effect relationswith my subordinates?
– What will beitseffect on hisor her relationship within groups,
subordinates?
– Will I beobjectivein view of pressureof peers, superiors&
tradeunions?
– Will I beaccused of being partial?
– How will my bossreview theappraisal ?
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13. Rating errors(cont.)
 Halo effect
 oneaspect of an individual’sperformanceinfluences
theentireperformance
 Ratereffect
 includesfavourisam, stereotyping, and hostility attitude
toward ratee
 Perceptual set
 assessment influenceon previousbeliefs
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14. Rating errors(cont.)
• Performance dimension order
• oneor two dimensionson aperformanceinstrument
follow or closely followed each other
• Spillovereffect
• past performanceappraisal effect current appraisal
unjustifiably
• Status effect
• overrating of employeeshigher-level or jobsheld in
high esteem
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15. Methods of appraisal
 Forced ChoiceMethod
Therater isforced to select statementswhich are
readymade.
 Advantage
 Absenceof personal biasin rating.
 Disadvantage
 Statements may not be properly framed and they may
not beprecisely descriptiveof theratee’straits.
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16.  Critical Incidents Method
Focuson certain critical behavior of an
employeethat makeall thedifferencebetween
effectiveand non-effectiveperformanceof a
job. Such incidentsarerecorded by the
superiorsasand when they occur.
Methods of appraisal
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17. Critical Incidents Method (Cont.)
 Advantage
• Evaluation isbased on actual job behavior.
 Limitation
• negativeincidentsaremorenoticeablethan positive
ones.
• Overly closesupervision may result.
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18. Appraisal by outsider
 Appraisal by someoneoutsidetheassessee’sown
department (Corporateofficeor HR department)
 Advantage
– Primarily used for making promotional decision at the
managerial level.
– Useful when comparableinformation isneeded from employees
in different unitsor locations
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19. Field Review Method
 Disadvantage
 Outsidesunconsciousnessabout an employee’swork
environment may affect employee’sability or
motivation.
 Outsiderscan not observeemployeebehavior over a
period of timeand in variety of situations.
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20. Cost Accounting Method
 Evaluatesperformancefrom themonetary returnsthe
employeeyieldsto hisor her organization.
 A relationship isestablished between thecost included in
keeping theemployeeand thebenefit theorganization
derivesfrom him or her.
 Then theperformanceof theemployeeisevaluated based
on therelationship.
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21. Psychological Appraisal
 Industrial psychology
 Assesspast performance& futurepotentials
 Appraisal processConsistsof –
 Interviews
 Psychological tests
 Evaluate individuals‘ emotional, motivational & work
related behaviors.
 Dependslargely on thequality of psychologists.
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22. Assessment Centre
An assessment center is a central location where managers come
together to have their participation in job related exercises
evaluated by trained observers.
Mainly used for :–
Executivehiring
Observing executives
Evaluating executiveperformanceby self & peer evaluation
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23. Characteristics Assessed
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24. Problems of Assessment Centers
 Excessivecost
 Slow process
 Influenced by subjectivematters
 Examination taking syndrome
 Unhealthy senseof competition
 Overemphasizing test performance
 Difficulty in conducting tests
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25. Advantages of Assessment centers
 A well conducted assessment center can providesuch
advantages-
 Forecast futureperformance
 Increasereliability, content validity
 High Predictivevalidity
 Clearly definesselection & promotion
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27. Non Analytical Method
• No useof detailed job factors
• Treat each job asawholein determining itsrelativeranking
• Two methods:
a)Ranking method
b)Job-grading method
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28. Ranking Method
 Job evaluation – on the basis of its title or its content
comparing thejob with others& determining itsplace.
 Advantages: Simple, inexpensiveand expedient method
 Drawbacks: i) Subjectivemethod of evaluation
ii) Hard to measurewholejob
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29. Job Grading Method (cont..)
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simpleand inexpressive
Providesatisfactory
result when thenumber
job issmall.

30. Analytical Methods
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31. Point Ranking method (cont..)
Advantages Disadvantages
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Determination of the
worth job on thebasisof
factors.
Systematic and can
easily beexplained to the
employees.
Simpleto understand and
easy to administer.

32. Factor – comparison Method
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33. Wage Survey
 Fourth stepsof job evaluation process.
 For fixing wagerate, wagesurvey isrequired.
 In wagesurvey, thefirst step isto select key jobs.
 Secondly, asampleof firmsin thelabor market must be
chosen.
 Thefinal task isto obtain appropriateinformation, taking
careto ensurethat job comparisonsbeing madearevalid.
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34. Employee classification
 Last phaseof job evaluation process.
 Theprocessof assigning ajob titleto every employee.
 Easy to classify clearly definablejob likecashier in abank.
 But difficult to classify family typejob likesecretarial job.
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35. Organizational Strategy & Performance Appraisal
From thestrategic management point of view,
organizationscan begrouped into 3 categories:
1. Defenders
2. Prospectorsand
3. Analyzers
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36. 1. Defenders
 Narrow focuson product market domain
 Improving theefficiency of existing operations
 Identifying training needs
 Morebehavior oriented
1. Prospectors
 Search for different product and market opportunities
 Emphasison skillsidentification
 Identifying staffing needs
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37. 3. AnalyzerStrategy
 Two typesof product market domains
 Onedomain isstableand another ischanging
 Emphasison both skill building and skill acquisition
 Examinecurrent performancewith past performance
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38. Job Evaluation
• Theprocessof analyzing and assessing thevariousjobs
• To ascertain job’srelativeworth in organization
• Based on job content
• Jobsareplaced in theorder of their importance
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39. Difference between Job evaluation and Performance
Appraisal
JobEvaluation Performance Appraisal
Job israted hereon thebasisof
somefactors
Employeeisrated on thebasisof
performance
A job israted beforetheemployee
isappointed
Evaluation takesplaceafter the
employeeishired
Thepurposeisto establish
satisfactory wagedifferentials
It’spurposeisto effect
promotions, offer rewards, award
punishment etc.
It isnot compulsory It iscompulsory
It’sdoneby job evaluation
committee
It’sdoneby employees
themselves, peers, superiors, group
of peopleor combination of these
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40. Job Evaluation Process
Job evaluation process program involves answering the following
questions:
 Which jobsareto beevaluated?
 Who should evaluatethejobs?
 What training do theevaluatorsneed?
 How much timeisinvolved?
 What should bethecriteriafor evaluation?
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41. Jobs, to be Evaluated?
 A sampleof benchmark jobsisto beselected
 Thesamplesizedependson thenumber of different jobs
 It’sunlikely to belessthan about 25 percent of thetotal jobs
• Staffing the evaluation Exercise
Job evaluation processisdoneby ----------
 A committeeconsisting headsof variousdepartment
 Representativesof employeeunions
 Specialistsdrawn from National Productivity Council
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42. Training for the Committee
In training session, thefollowing issuesarediscussed:
 What isjob evaluation?
 Why doesthiscompany need job evaluation?
 How will it work?
 How doesit affect promotion policy?
 How will thesystemsbekept up-to-date?Etc.
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43. Questions????
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