Performance Appraisal Final PPT HRM

MADE BY-
Reshma tummala (6)

Richa mishra (8)
Sneha rani (38)
Palak singhal (39)
Aditi kakar (42)
Silkey varshney (46)
Anuja agrawal (56)
Gitanjali arora (60)
What is performance
appraisal
 Performance appraisal is the process of obtaining,
analyzing and recording information about the
relative worth of an employee.
 The focus of the performance appraisal is

measuring and improving the actual
performance of the employee and also the future
potential of the employee.
 Its aim is to measure what an employee does.

Objectives of performance appraisal
 To effect promotion based on competence and performance
 To confirm the services of probationary employees upon their
completing the probationary period satisfactorily.
 To assess the training and development needs of employees
 To decide upon a pay raise where ( as in the unorganized
sector ) regular pay scales have not been fixed.
 To let the employees know where they stand in so far as their
performance is concerned and to assist them with constructive
criticism and guidance for the purpose o their development
 To improve communication. It provides a format for dialogue
between the superior and the subordinate.
 It improves the understanding of personal goals and concerns.
 It can be used to determine whether HR programs such as
selection, training and transfer have been effective or not
Traditional approach
 Traditionally, performance appraisal has been used as just a
method for determining and justifying the salaries of the
employees.
 After it is used as a tool for determining rewards and punishments
for the past performance of the employees
 This approach did not consider the developmental aspects of the
employee performance.
 The primary concern of the traditional approach is to judge the
performance of the organization as a whole by the past
performances of its employees
 In 1950s the performance appraisal was recognized as a complete
system in itself and the Modern Approach to performance
appraisal was developed.
Modern approach
 The modern approach to performance development has
made the performance appraisal process more formal and
structured.
 the performance appraisal is taken as a tool to identify
better performing employees from others, employees
training needs, career development paths, rewards and
bonuses and their promotions to the next levels.
 Now appraisals have become a continuous and periodic
activity in the organizations.
 The results of performance appraisals are used to take
various other HR decisions like promotions, demotions,
transfers, training and development, reward outcomes
 It also includes feedback.
Techniques of performance appraisal
Traditional method
Straight line method

 This is one of the oldest and simplest
techniques of performance appraisal.
 In this method, the appraiser ranks the
employees from the best to the poorest on the
basis of their overall performance.
 It is quite useful for a comparative evaluation
 No feedback is given
 This method is subject to hallow and recency
effect.
PAIRED COMPARISON
 A better technique of comparison than the
straight ranking method
 this method compares each employee with

all others in the group, one at a time.
 After all the comparisons on the basis of

the overall comparisons, the employees are
given the final rankings.
Modern methods
360 Degree Performance Appraisals
 It is known as 'multi-rater feedback‘.
 It is the most comprehensive appraisal where the
feedback about the employees’ performance
comes from all the sources that come in contact
with the employee on his job.
 360 degree appraisal has four integral
components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal
MANAGEMENT BY OBJECTIVES
 The concept of ‘Management by Objectives’
(MBO) was first given by Peter Drucker in 1954.
 It is a process where
o employees and the superiors come together to
identify common goals,
o the employees set their goals to be achieved,
o the standards to be taken as the criteria for
measurement of their performance and
contribution and deciding the course of action to
be followed
Performance appraisal in Coca Cola
Ltd
 Performance appraisal in COCA-COLA LTD. is done
annually.
 For appraisal in Coca-Cola Ltd. a SELF-APPRAISAL
form is given to the staff members and they fill it up.
 Then after according to their self-observation and through
the appraisal form filled by the staff members rating is
given to the members.
 Accordingly then incentives and promotions are granted.
 In COCA-COLA LTD. at the majority senior staff
members submit all the information timely to their
superiors.
Old Performance
Appraisal System
 The appraisal occurred once a year.
 It required employees to document
their accomplishments.
 The manager would assess these
accomplishments in writing and
assign numerical ratings.
 The appraisal included a summary written
appraisal and a rating from 1 (unsatisfactory) to 5
(exceptional).
 Merit increases were tied to the summary rating
level.
 Merit increase information and performance
appraisals occurred
in one session.
DRAWBACKS
 Inequitable ratings
 Employee dissatisfaction
 All employees given merit
raises irrespective of their
performances.
New Performance Appraisal
System
 The absence of a numerical rating
system.
 The presence of a half-year feedback
session.
 The provision for development planning.
 Prohibition in the appraisal guidelines of
the use of subjective assessments of
performance.
Three stages
FIRST STAGE
 Occurs at the beginning of the year.
 Written agreement on the employee’s
goals, objectives, plans, and tasks for the
year.
 Standards of satisfactory
performance
SECOND STAGE
 Mid-year
 Mandatory feedback
 Progress toward objectives
 performance strengths and
weaknesses
 Objectives sheet
THIRD STAGE
 Takes place at year’s end.
 Written document
 Feedback and improvement.
 Training, education, or development
experiences
 Merit raise amount
SURVEY
 81 percent better understood work group
objectives
 84 percent considered the new appraisal fair
 72 percent said they understood how their
merit raise was determined
 70 percent met their personal and work
objectives
 77 percent considered the system a step in the
right direction
CONCLUSION
 Improvement
 Employees satisfaction
 Better co ordination
 Employees are objective specific
 Achievement of set
targets and standards.

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MADE BY-

Reshma tummala (6)

 The focus of the performance appraisal is

 Its aim is to measure what an employee does.

Straight line method

 this method compares each employee with

 After all the comparisons on the basis of

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