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    Performance Appraisal: Presented by Arun Lal V.L. Hithesh Krishnan

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    The document provides information on performance appraisals. It defines performance appraisal as the process of evaluating an employee's current or past performance relative to their performance standards. The document outlines the purposes of performance appraisals, which include identifying employee potential, determining training needs, and motivating employees. It also describes the traditional and modern approaches to performance appraisals and various methods used to conduct them, including rating scales, checklists, and MBO.

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    Performance Appraisal: Presented by Arun Lal V.L. Hithesh Krishnan

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    THOUFEEK
    365 views81 pages
    The document provides information on performance appraisals. It defines performance appraisal as the process of evaluating an employee's current or past performance relative to their performance standards. The document outlines the purposes of performance appraisals, which include identifying employee potential, determining training needs, and motivating employees. It also describes the traditional and modern approaches to performance appraisals and various methods used to conduct them, including rating scales, checklists, and MBO.

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    The document provides information on performance appraisals. It defines performance appraisal as the process of evaluating an employee's current or past performance relative to their performance standards. The document outlines the purposes of performance appraisals, which include identifying employee potential, determining training needs, and motivating employees. It also describes the traditional and modern approaches to performance appraisals and various methods used to conduct them, including rating scales, checklists, and MBO.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    365 views81 pages

    Performance Appraisal: Presented by Arun Lal V.L. Hithesh Krishnan

    Uploaded by

    THOUFEEK
    The document provides information on performance appraisals. It defines performance appraisal as the process of evaluating an employee's current or past performance relative to their performance standards. The document outlines the purposes of performance appraisals, which include identifying employee potential, determining training needs, and motivating employees. It also describes the traditional and modern approaches to performance appraisals and various methods used to conduct them, including rating scales, checklists, and MBO.

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    of 81

    PERFORMANCE

    APPRAISAL

    Presented by
    Arun Lal V.L.
    Hithesh Krishnan
     WHAT IS PERFORMANCE
    APPRAISAL??????
    Performance appraisal
     Evaluating an employee’s current or past
    performance relative to the person’s
    performance standards.
     Performance appraisal is the process of
    obtaining, analyzing and recording
    information about the relative worth of an
    employee.
    Performance appraisal
     It is a process to identify the strengths and
    weaknesses of the employee.
     Meaning
     “Differentiate between individuals”

     First introduced in New York city in 1883.


     It involves

     Setting work standards


     Assessing the employee’s actual performance
    relating to the standards
     Feedback
    Purposes
     Identify the potential in employees.
     Determining training needs for further
    improvement
     Motivating employees
     Establishing a basis for research.
    Process of Performance Appraisal

     ESTABLISHING PERFORMANCE STANDARDS


     COMMUNICATING THE STANDARDS
     MEASURING THE ACTUAL PERFORMANCE
     COMPARING THE ACTUAL WITH THE
    DESIRED PERFORMANCE
     DISCUSSING RESULTS
     DECISION MAKING
    ESTABLISHING PERFORMANCE
    STANDARDS

     used to as the base to compare the actual


    performance of the employees
     setting the criteria to judge the
    performance of the employees
     Standard should be clear, easily
    understandable and in measurable terms.
    COMMUNICATING THE STANDARDS
     Help to understand their roles
     Standards should also be communicated to
    the appraisers
    MEASURING THE ACTUAL PERFORMANCE

     continuous process which involves


    monitoring the performance
    COMPARING THE ACTUAL WITH THE
    DESIRED PERFORMANCE

     Tells the deviations in the performance of


    the employees
     It includes recalling, evaluating and
    analysis of data related to the employees’
    performance.
    DISCUSSING RESULTS

     Focus is on communication and listening


    DECISION MAKING

     Take the required corrective actions


    relating to the appraisal
    APPROACHES
     Traditional approach
     Modern approach
    TRADITIONAL APPROACH
     Also called as overall approach
     Past oriented approach
     Tool for determining rewards
     Did not consider the developmental aspects
    of the employee performance
    Modern approach
     More formal and structured process
     It includes a feedback process
     Development process
    Methods of
    Performance
    Appraisal
    Methods of performance appraisal
     Numerous methods have been devised to
    measure the quantity and quality of
    employee’s job performance.
     Appraisal can be classified into two types:
     Past oriented method
     Future oriented method
    Past oriented method
     Rating scales
     Check list
     Forced choice method
     Forced distribution method
     Critical incidents method
     Behaviorally anchored rating scales
     Field review method
     Performance test and observations
     Confidential records
     Essay method
     Cost accounting
     Comparative evaluation approach
     Paired-comparison method
    Rating scales
     Simplest and most popular technique
     Job performance criterion such as
    dependability, initiative, output, attendance,
    attitude etc. are take as rating scales.
     Each scale ranges from excellent to poor.
     Rating scales offer the advantages of
    adaptability, relatively easy use and low cost.
    A large number of employees can be
    evaluated in a short time and the rater does
    not need any training to use the scale
    Check list
     A checklist of statements on the traits of the
    employee and his or her job is prepared in
    two columns (Yes column or a No column).
     The rater can tick the Yes column if answer
    is positive and no column answer is
    negative.
     The advantages are economy, easy to
    administration, limited training and
    standardization.
    Forced choice method
     The rater is given a series of statement about the
    employee.
     These statements are arranged in blocks of two or
    more and the rater indicates which statement is
    most or least descriptive of the employee.
     Advantage of this method is the absence of
    personnel bias in rating
     Disadvantage is that the statements may not be
    properly framed i.e. they may not descriptive of the
    ratee’s traits
    Forced distribution method
     This method operates under an assumption that
    the employee performance level conforms to a
    normal statistical distribution.
     Generally assumed that employee performance
    levels conform to a bell shaped curve.
     The major weakness is that employee performance
    level always conform a normal distribution.
    Cont…

    For e.g.
    The assumed distribution exist as
    excellent 10%, good 20%, average 40%,
    below average 20%, unsatisfactory 10%.
    Critical incidents method
     It focuses on certain critical behavior of an
    employee that make all the difference
    between effective & non-effective
    performance of a job.
     Such incidents are recorded by the superiors
    as and when they occur.
     Advantage is that the evaluation is based on
    actual job behavior, giving job related
    feedback to the ratee is easy.
    Behaviorally anchored rating scales
     Sometimes called behavioral expectation scales.
     Are rating sales whose scale points are determined
    by statements of effective & ineffective behaviors.
     The rater is expected to indicate which
    behavior on each scale describes employees
    performance.
     Developed to provide results which
    subordinates could use to improve
    performance
    Field review method
     This is an appraisal by someone outside the
    assessee’s own department.
     The outsider reviews the employee records
    and holds interviews with the ratees and his
    or her superior.
     The method is primarily used for making
    promotional decisions at the managerial
    level
    Performance tests and observations
     Here employee assessment may be based
    upon a test of knowledge or skills.
     The test may be oral, written or actual
    demonstration of skills.
     The test must be reliable and valid.
     The performance test are apt to measure
    potential more than actual performance.
    Confidential records
     Are maintained mostly in govt. departments.
     A typical confidential report should have 14 items:
     Attendance
     self-expression
     ability to work with others
     leadership
     Initiative
     technical ability
     ability to understand new material
     ability to reason
     originality and resourcefulness
     areas of work that suits the person best
     Judgment
     Integrit
     responsibility
     indebtedness.
    Essay method
     The rater must describe the employee within a
    number of categories such as:
    1. The rater’s overall impression of the employees
    performance.
    2. The promotability of the employee.
    3. The jobs that the employee is now able or
    qualified to perform.
    4. The strength and weakness of employee.
    5. The training and development required by the
    employee.
    Cont…
     Its extremely useful in filling information gaps
    about the employees.
     The strength of the essay method depends
    on the writing skills and the analytical ability
    of the writer.
     It consumes much time because the rater
    must collect the information necessary to
    develop the essay.
    Cost accounting method
     It evaluates performance from the monitory
    returns the employee yields to his or her
    company.
     The performance of the employee is
    evaluated based on the relationship between
    cost & benefit.
    Comparative evaluation approach
     It compare one worker’s performance with
    his or her co-workers.
     Usually conducted by supervisors.
     This can result in a ranking from best to
    worst.
     They are useful in deciding promotions &
    rewards.
    Paired-comparison method
     Appraiser compares each employee with
    each other employee, one at a time.
     For e.g. there are 5 employees named A, B,
    C, D & E. The performance of A is compared
    with the performance of B & a decision is
    made about who is better. Then A is
    compared with C D & E in that order. The
    same procedure is repeated for other
    employees.
    Cont…
     The number of comparisons may be calculated
    with the help of the formulae:
    N (N-1) / 2
    where N= No. of employees to be
    compared.
     FUTURE ORIENTED APPRAISALS
    Future oriented appraisals
     Performance can be assessed by focusing on
    employee potential or setting future performance
    goals.
     The commonly used future oriented techniques
    are:
    1. MBO
    2. Psychological appraisals
    3. Assessment centers
    4. 360 degree appraisal
    MBO
     MBO process seems to be most useful with
    managerial personal and employees who
    have a fairly wide range of flexibility & self-
    control in their jobs.
    . It is a process by which the superiors and
    subordinate managers of an organization
    jointly identify common goals.
    Disadvantages of M.B.O
     Takes more time
     Incompatibility due to the higher expectations
    of the supervisor.
    Psychological appraisals
     The Psychologist evaluate the employee’s
    intellectual, emotional, motivational & other related
    characteristics that suggest individual potential &
    may predict future performance.
     The quality of the appraisal depends largely
    on the skills of the Psychologist.
     The approach is slow & costly.
    Assessment centers
     It’s a central location where managers may
    come together to have their participation in
    job related exercises evaluated by trained
    observers.
     Its now used for evaluating executive or
    supervisory potential.
     The problem with the assessment centers is
    their cost.
    360 degree appraisal
     Here multiple raters are involved in
    evaluating performance.
     Its understood as systematic collection of
    performance data on an individual or group,
    derived from supervisors, team members,
    colleagues & self.
     Its effective in identifying and measuring inter
    personal skills, customer satisfaction & team
    building skills.
     What should be rated?
     One of the steps in designing an appraisal
    programme is to determine the evaluation
    criteria .It is obvious that the criteria
    should be related to the job.
     The six criteria for assessing
    performance are:
     1. Quality: employee should care upon
    the quality of work.

     .
     2. Quantity: The amount produced, expressed
    in monetary terms, number of units, or number
    of competed activity cycles.
     3. Timeliness: The degree to which an activity
    is completed or a result produced, at the
    earliest time desirable from the standpoints of
    both coordinating with the outputs of others
    and of maximizing the time available for other
    activities.
     4. Cost of Effectiveness: the degree to which
    the use of the organizations resources
     e.g. human, monetary, technological and
    material) is maximized in the sense of getting
    the highest gain or reduction in loss from each
    unit or instance of use of a resource.
     5. Need for supervision: The degree to
    which a job performer can carry out a
    job function without either having to
    request supervisory assistance or
    requiring supervisory intervention to
    prevent an adverse outcome.
     6. Interpersonal impact: The degree
    to which a performance promotes
    feeling of self-esteem, goodwill
    and cooperation among co-
    workers and subordinates
    Appropriate weightages
    Superiors

    Peers Self Appraisal Citizens-Clients

    Subordinates
    Weightages depend on the Department and
    nature of work
     From subordinates (10% to 20%)

     From peer group (only when in a functional peer


    network; not for supervisory level officers
    functionally not connected) (0% to 10%)

     From customers/clients ( 20% to 30%)

     From superior officers (50% to 70%)


    Problems
     Central tendency
    Tendency to rate all employees in
    the same way
    ie. average
     Strictness
    rate all subordinates high or low
     Halo effect
     rating based on specific rate
    qualities
     That affect the other qualities.
     Affect the rating
     Leniency or severity:
     Leniency or severity on the part of the
    rater makes the assessment a subjective.
    Subjective assessment defeats the very
    purpose of performance appraisal
     Another factors that affect the appraisal are
     Age
     Sex
     Race
     Character etc..
    How to avoid appraisal problems?
     Learn the problem
     Use right appraisal tool
     Train supervisors to reduce rating errors
     Diary keeping
     Another method to avoid problem is using the
    appraisal software
    The appraisal interview
     An interview in which the supervisor and
    subordinate review the appraisal and make
    plans to remedy deficiencies and reinforce
    strengths.
    Types of interviews

    performance employee objective

    satisfactory Promotable Make


    development
    plans
    satisfactory Not Maintain
    promotable performance

    Unsatisfactory correctable Plan


    correction
    Performance management
     Managing all elements of the organizational
    process that affect how well employees
    perform.
     It encompass goal setting.
     Who should appraise?
     Supervisor

    It may be direct supervisor


    He should give the feedback
     Rating committee

    It contains one direct supervisor and 2


    or 3 other supervisors
     Peer appraisal

    rating by the employees who has same


    rank
     Self appraisal

    But it will be higher than that rated by


    supervisor
     Subordinate
     It is a reverse process
     Superiors are rated with respect to their
    work.
     Eg. Feedback given by the students for the
    performance of a teacher.
    uses
     Determinig individual and group training
    needs
     Assessing potential for promotion
     Increasing job satisfaction
     Mutual understanding b/w managers and
    subordinates.
     Primary step
     set standards and measure the
    performance of the employee..
     Second step
     Give notice to the employee minimum
    before 10 day of appraisal
     Third step
     determine the place and date
     References
     HUMAN RESOURCE MANAGEMENT –9th
    edition , GARY DESLER

     THE MANAGEMENT OF HUMAN


    RESOURSE- 2nd edition , N. RAMASWAMI

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