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net/angel01021990/performance-appraisal-ppt-hrm Performance management Performance management is a process through which companies ensure that employees are working toward organizational goals. It includes practices through which the manager defines the employee s goals and work, develops the employee s capabilities, and evaluates and rewards the person s efforts. Performance appraisal It is a managerial process through which an individual employee s behavior and accomplishments for a fixed time period are measured and evaluated. It is a formal or systematic process by means of which the job relevant strengths and weaknesses of employees are identified, observed, measured, & developed. The most important and valuable workers executives, managers, and knowledge workers generally perform jobs that require subjective skills such as analysis, problem solving, creativity, and judgment. Objectives Objectives Of Performance appraisal:

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

Making reward decisions Improving performance (training and development needs) Motivating staff (feedback, assessment, setting targets) Succession planning and identifying potential Promoting manager-subordinate dialogue Formal assessment of unsatisfactory performance

Evaluation Process 1. Establish performance standards 2. Measure actual performance 3. Communicate performance expectations to employees 4. If necessary, initiate corrective action 5. Discuss appraisal with employee 6. Compare actual performance with standards Appraisal methods Traditional methods: 1. Confidential report 2. Essay evaluation 3. Critical incidents 4. Checklists 5. Graphic rating scale 6. Straight Ranking 7. Paired comparison 8. Forced distribution 9. Grading system 10. Field review technique 11. Nominations 12. Work samples Modern Methods: 1. Assessment centre 2. Behaviorally anchored rating scale 3. MBO 4. 360 performance appraisal

Performance Appraisal can be conducted by a number of methods. They can be classified according to the main purpose that the procedure serves. Absolute standard (Developmental purpose) Relative standard (Comparative purpose) Objectives

I. Absolute standard methods: Absolute standards methods allow the evaluator to evaluate performance in relation to trait or behavior criteria. Each employee is evaluated against the standards. Performance is measured on a number of specific dimensions so that employees can be given a more helpful feedback. Common absolute rating techniques are 1. Grading method 2. Graphic or Linear rating scale 3. Checklist 4. Free Essay method 5. Critical Incident method 6. BARS 7. Forced choice method 1. Grading method Certain categories of worth are first established and carefully defined. Executives are compared with these grade definitions. Grade definitions A Outstanding B Very good C Fair D Poor 2. Graphic or Linear rating scale The rater evaluates an employee on each of the several performance dimensions using a continuum made up of clearly defined scale points. He describes an employee as falling at some points in the performance continuum such as unsatisfactory, average or outstanding on each dimension. The scale points can be assigned scores and total score can be computed for an employee by summing the ratings across all dimensions.

3. Check list The rater or supervisor is given a series of questions or words and asked to check those representing the characteristic of the employee. E.g. (manager): - Is he respected by his subordinates? - Does he give recognition and praise to employees for work done well?

4. Free Essay method The manager writes a short essay describing each employees performance during the rating period. Evaluation of overall performance based on strengths/weaknesses of employee performance rather than specific job dimensions. Manager should have good writing skills.

5. Critical Incident method Measures performance in terms of certain events or episodes that occur (critical incidents) Certain significant acts make the difference between success and failure. A written record of the events is kept.

6. Behaviorally Anchored Rating Scale (BARS) The BARS consists of a series of five to ten vertical scales - one for each important dimension of job performance anchored by the incident judged to be critical. Behavioral anchors in the form of statements are established for each dimension. Many dimensions of performance are identified in behaviorspecific terms The behavioural Anchored Rating Scale method is normally used only for part of your employee perfromance evaluations, that being the assessment of employee behaviour. For other performance criteria such as Judgement or decision making other methods of appraisal are generally used. As with the graphic rating scale, the behavioural anchored rating scale aims to assign a score to a range of performance criteria. However, the BARS method focuses only on observable behaviour and provides examples of the observable behaviour for each score. This makes it easier to have consistent rating across a large organisation. For example when assessing a leader on their passion for people you may consider Conducts one on one with each employee monthly,

Score 7, reschedules missed one on ones as a priority. 8 or 9 Actively seeks opportunities to give positive informal feedback to their employees Has several touch points with each employee each day Provides their employees with development opportunities Seeks opportunities to share their good people with others in the business Consults their team on decisions that effect them Score 4, Provides one on ones periodically to most employees 5 or 6 Provides occasional feedback tot heir employees Communicated mostly to team in email Talks to employees mostly about tasks, and sticks to own team Score 1, Arrives quietly and keeps to self 2 or 3 Provides little direction to their team Communicates extensively in email Tends to blame own employees for performance

Example BAR Worksheet (Behavioral Anchored Rating Scale) This sample BAR worksheet is used to assess a team leader on the leadership capability of Monitoring Progress. There are 9 common leadership capabilities, to find out what they are, click here

Capabili ty Monitori ng Progress

Behavior

Score

Needs constant reminders and Score 1or 2 follow up on assigned tasks Often misses deadlines Not aware of teams current performance Team is not meeting

performance targets Is reliable and remains focused on the delivery of delegated tasks Follows through on personal commitments and undertakings Strives to complete work on or before deadlines Renegotiates dates in advance, when required Monitors individual performance against agreed performance expectations Is reliable and keeps the team focused on the delivery of outcomes Monitors the teams progress and adjusts the plan to ensure tasks are successfully completed Maintains focus on the most important goals Closes of discussions with action plans Sets challenging stretch goals for self and team that align with the business units goals Takes personal responsibility for achieving results, just like an owner of the business Consistently follows through to achieve agreed outcomes Score 7 or 8 Score 5 or 6 Score 3 or 4

T o use this employee performance appraisal form you need to determine which set of behaviors best describes the person that your are evaluating, and then assign a performance score. The employee can clearly see what is expected for each performance rating. The Behavioral Anchored Rating Scale method will provide your employee with clarity of how their behavior will influence their performance rating.

7. Forced choice method It is a type of checklist where the rater chooses between two or more statements about the employee being rated. Each statement may be favorable or unfavorable. The appraiser s job is to identify which statement is more descriptive of the individual being evaluated. Each statement is given a weight according to its relevance to the particular job. The employee getting the highest score is judged the better performer Forced Choice Method In this, the rater is given a series of statements about an employee. These statements are arranged in blocks of 2 or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are : Learns fast _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ works hard Work is reliable_ _ _ _ _ _ _ _ _ _ _ _ _ _ _performance is a good example for Absents often_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ others usually tardy. As in the checklist method, the rater is simply expected to select the statements that describe the rate. Actual assessment is done by the HR Department. This approach is known as the forced choice method because the rater is forced to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed they may not be precisely descriptive of the ratees traits.

RANKING METHOD

 Under this method, the employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and the latter as the poorest. Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group. PAIRED COMPARISION METHOD This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all the other employees in the group, one at a time. Paired comparison method helps make the ranting method more precise. For every trait (quality of work, quality etc), Pairs are made and every subordinate is compared with every other subordinate.

8. Other methods i. Assessment center method Testing job-related simulations that managers feel are important to the job success. Assessments are made to determine managerial potential for purpose of promotion. Paper-and-pencil test, interviews and situational exercises.

 It is a system or organisation, where assessment of several individuals is done by various experts by using various techniques. In basket, role playing ,case studies, simulation etc are used to evaluate the employee ii. 360 Degrees Appraisal The subordinates and colleagues of the manager appraise his or her performance. Each of these evaluators rates the manager on certain qualities listed in the Appraisal Format. Managers become keenly aware about the need to have good relations with their subordinates and colleagues. Definition of 360 degree performance appraisal 360 Degree Feedback is a system orprocess in which employees receive confidential, anonymous feedback from the people who work around them. Who should conduct 360 degree performance appraisal? Subordinates. Peers. Managers (i.e. superior). Team members. Customers. Suppliers/ vendors. Anyone who comes into contact with the employee and can provide valuable insights and information. 3. Whats 360 degree measures? 360 degree measures behaviors and competencies. 360 degree addresses skills such as listening, planning, and goal-setting. 360 degree focuses on subjective areas such as teamwork, character, and leadership effectiveness. 360 degree provide feedback on how others perceive an employee. 4. 360 degree appraisal has four components: Self appraisal Subordinates appraisal Peer appraisal. Superiors appraisal iii. 540 Degrees Appraisal In this, the customers and suppliers of a manager also evaluate him. General Electric Company, USA, was the first to try out this concept in early 1990s. This practice has found many takers in India too - Reliance Industries, Godrej- GE, Godrej Soaps, Tata Steel, Telco, Voltas, Crompton Greaves, Infosys, Wipro, Eicher, American Express, Thomas Cook, and Thermax, to name a few.

The range of feedback on the performance of an employee is generated from the stakeholders - Superiors, Subordinates. Peers, Internal and External Customers, Clients or Suppliers is known as 540 Degree feedback or appraisal. In this, the customers and suppliers also evaluate the performance which helps us to defferentiate from the 360 degree performance appraisal. III. Management by Objectives Objectives set at each level should be quantifiable and measurable. Manager and subordinates have to establish specific times when goals are to be reviewed and evaluated. Each employee goal must be accompanied by a description of how that goal will be accomplished. Management By Objectives (MBO) The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. MBO Employee Performance Evaluation Form On this page you will find an example of a MBO form, which includes sections for the employees performance plan and their development plan.

The performance plan requires you to identify the top three major areas of responsibility for the employee and define a performance goal for each area of responsibility.

Given this employee performance evaluation form is for use with goals developed using an MBO approach it is acceptable for the goals to have an intangible element to them. Some goals have a long timeframe to them, for example to achieve an employee engagement score of greater than 80%. As a leader you are required to give feedback on the employees progress towards this goal each month, even though you are likely to only measure employee engagement annually. So, whilst the goal is tangible your feedback on progress during the year will be based on intangibles. You will also note, on this form you are not required to provide a numeric rating, rather you are required to comment on the employees goal achievement. In this section it is common to describe the method the employee adopted in their attempt to achieve their goals.

Feedback Interview: One of the most important uses of appraisal is to provide performance feedback to employees. The feedback interview is the discussion between the supervisor and the employee concerning the employee s past performance and how that performance can be improved in future. Supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths. Purpose Encouraging present behavior Explaining what is expected of employees Communicating results of salary or promotion decision Planning for future performance improvement Improving supervisor subordinate relationship Types of feedback interview approaches Tell and sell approach: The supervisor acts as a judge and persuades the employee to change his or her behavior in a prescribed way Tell and listen approach: during the first phase of interview the employee s strong and weak areas of performance are addressed and in the second phase the focus falls on the employee s feeling about the appraisal.

Problem solving approach: The supervisor acts as a helper and facilitator and discusses the problem, needs, innovations dissatisfaction that the employee might have experienced since the last performance review.
http://www.scribd.com/doc/10159892/Grievance-Procedure

A grievance is a sign of employees discontent with job and its nature. The employee has got certain aspirations and expectations which he thinks must be fulfilled by the organisation where he is working. When the organisation fails to satisfy the employee needs, he develops a feeling of discontent or dissatisfaction. Thus, grievance is caused due to the difference between the employee expectation and management practices. Breach defines a grievances as any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of the management Jucius defines a grievance as ---- any discontent or dissatisfaction, whether exposed or not, whether valid or not, arising out of anything connected withthe company which an employee thinks, believes or even feels to be unfair, unjust or inequitable Steps in the Grievance Procedure Identify grievances: Employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them. Define correctly: The management has to define the problem properly and accurately after it is identified/acknowledged. Collect Data: Complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinions, etc. Prompt redressal: The grievance should redressed by implementing the solution. Implement and follow up: The Implementation of the solution must be followed up at every stage in order to ensure effective and speedy implementation. GRIEVANCE MANAGEMENT IN INDIAN INDUSTRY At present, there are three legislations dealing with the grievances of employees working in industries. The Industrial Employment Standing Orders) ACT, 1946, REQUIRES THAT EVERY ESTABLISHMENT EMPLOYING 100 OR MORE WORKERS SHOULD FRAME STANDING ORDERS. These should contain, among

other things, a provision for redressal of grievances of workers against unfair treatment and wrongful actions by employer or his agents. The Factories Act, 1948, provides for the appointment of a Welfare Officer in every factory ordinarily employing 500 or more workers. These Welfare Officers also look after complaints and grievances of workers. They will look after proper implementation of existing labour legislation. Besides, individual disputes relating to discharge, dismissal or retrenchment can be taken up for relief under the Industrial Disputes Act, 1947, as amended in 1965.

Model grievance procedure: The Model grievance procedure suggested by the National Commission of Labour involves six successive time bound steps each leading to the next, in case of dissatisfaction. The aggrieved worker in the first instance will approach the foreman and tell him of his grievances orally. The foreman has to redress his grievance and if the worker is not satisfied with this redressal, he can approach the supervisor. The Supervisor has to provide an answer within 48 hours. In the event of the supervisor not giving an answer or the answer not being acceptable to the worker, the worker goes to the next step. At this stage, the worker either alone or accompanied with his departmental representative approaches the Head of the Department who has to give an answer within three days. If the Department fails to give answer or if the worker is not satisfied with his answer, the worker may appeal to the Grievance Committee, consisting of the representatives of the employer and the employees. The recommendation of this Committee should be communicated to the Manager within seven days from the date of the grievance reaching it. Unanimous decisions, if any, of the Committee shall be implemented by the Management. If there is no unanimity, the views of the members of the Committee shall be placed before the Manager for decision. The Manager has to take a decision and the worker within three days. The worker can make an appeal against the managers decision and such an appeal has to be decided within a week. A Union official may accompany the worker to the manager for discussion and if no decision is arrived at this stage, both the union and management may refer the grievance to voluntary arbitration within a week of receipt of the managements decision. The worker in actual practice may not resort to all the above mentioned steps. For example, if the grievance is piqued because of his dismissal or discharge he can resort to the second step directly and he can make an appeal against dismissal or discharge.