4. PERFORMANCE APPRAISAL AND
PERFORMANCE MANAGEMENT
•Evaluating performance of
employees v/s standards
Performance
Appraisal
•The process using appraisals for
enhancing organizational goals
achievements.
Performance
Management
9. Management by Objective (MBO)
Behavior Anchor Rating Scales (BAR Scales)
Annual Confidential Report (ACR)
Forced Distribution
Competency Based Management
360 feedback/720 feedback
Balance Score Card (BSC)
TYPES OF PMS
10. What was achieved? How Achieved?
PERFORMANCE-TWO DIMENSIONS
Leadership
Performance
Goal Results
11.
12. Key objectives needed to achieve the
business goals and objectives of the
organization.
IDENTIFY GOALS & OBJECTIVES
13. Employee
1. Meet with your manager to ensure
your goal support the achievement of
your business
2. Agree on the critical competencies
requires
Manager
1. Communicate goals
2. Identifies critical competencies to
achieve your goals
3. Communicate performance
expectation for the years
GOAL SETTING
ROLES & RESPONSIBILITIES
19. PMS is one of the key
HR issues at ABC for
last many years
Several initiatives
taken place to
indicate some visible
improvements
There is still a need to
focus and work on
improving the process
for moving towards
efficiency of the
system
BACKGROUND
20. ACR System
No linkage of ACR
with pay
Factors of
evaluation were
subjective
Salary increase for
“Non Performers”
PMS BRIEF BACKGROUND
21. ACR - RATINGS DISTRIBUTION
5% 15% 80%
Performance rating
#ofcases
Expected standard was at top of range; no motivation to exceed
expectations
C
BD A
Good Very Good ExcellentUnsatisfactory
22. Moving from flat across
the board annual salary
increase towards “Pay for
Performance” concept
Forced
distribution
required
BELL CURVE INTRODUCTION
23. ACR BELL CURVE
True
Performance
# of
cases
100%80% 120% 130%70%
Old distribution
Target
distribution
100% of expectation;
= fully satisfactory
D C B A
1 2 3 4 5
ACR levels:
6
MMP MSP MAP ESP EMPNew Ratings T 10
24. A four tier performance rating followed with bell curve
distribution and increase given in 2004 was as under
Category Rating Desired Actual
A Excellent 10 % 13 %
B Very Good 20 % 29 %
C Good 60 % 55 %
D Unsatisfactory 10 % 3 %
IMPLEMENTATION EXPERIENCE
97%
Only 3 % under performers
25. DISTRIBUTION OF THE BELL CURVE
0
5
10
15
20
25
30
35
T 10 EMP ESP MAP MSP MMP
Performance Rating Analysis
Underperformers 20%
30. Reinforcement of Bell Curve Implementation
Simplification of current complicated form
Minimize subjectivity
Standard evaluation criteria for all groups not working
Implementation standard not seen consistent
Personal bias perception management
MANAGEMENT SUGGESTIONS
32. PMS in all organizations in the world has always been a
source of employees concern as it involves human factor
despite sophistication of systems
It is a part of HR strategy to review this process every year
and keep it aligning with the new business requirements
Free two way communication with line management and
employees will be key to success of the system
CONCLUSIONS