performance appraisal methods
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PERFORMANCE APPRAISAL
Ms.Sadhana BanerjiAssistant Professor-NDIM
MEANING OF PERFORMANCE APPRAISAL
PERFORMANCE- It refers to the degree of accomplishment of the tasks that make up an individuals job. it indicates how well an individual is fulfilling the job requirement.
APPRAISAL- assessment, evaluation, judgment, review, consideration
Act of evaluation of performance
???????????IS PERFORMANCE APPRAISAL.
Basically it is systematic process involving 3 steps:
Setting work standards
Assessing employees actual performance relative to these standards
Offering feedback to the employee so that he can eliminate deficiencies and improve performance in the course of time.
Definition of performance appraisal Written assessments of employees carries out in a
systematic way at regular intervals. It is a process of evaluating an employee’s
performance and the qualifications of the employee in terms of the requirements of the job for which
he/she is employed.
Features of Performance appraisal
It tries to find out how well the employee is performing the job and tries to establish a plan for further improvement.
It is carried out periodically. It is not one shot deal.
It is not past oriented activity.Performance appraisal is not job
evaluation.
OBJECTIVES OF PA
1.1. To improve the performance of the To improve the performance of the organisationorganisation
2.2. To assess actual against expected performanceTo assess actual against expected performance
3.3. To assist subordinate to improve own performance.To assist subordinate to improve own performance.
4.4. To contribute to determining fair rewardsTo contribute to determining fair rewards
5.5. To identify employees suitable for promotionTo identify employees suitable for promotion
6.6. To contribute to development of individualsTo contribute to development of individuals
BENEFITS OF PERFORMANCE APPRAISAL
It provides a scientific basis for judging the merits or worth of employees who will try to improve their performance.
It provides a sound basis for promotion , demotion, transfer or termination.
It helps in distinguishing between efficient and in efficient workers. In this way it actually reveals the defects in the selection procedure.
BENEFITS OF PERFORMANCE APPRAISAL TO THE MANAGER
It helps the supervisors to evaluate the performance and to know the potentials of their subordinates systematically.
It also help to assign work to individual for which they are best suited.
If the performance appraisal is done scientifically and systematically ,it will prevent employee grievance.
Uses of Performance Appraisal
PerformancePerformanceAppraisalAppraisal
Giving Performance Giving Performance FeedbackFeedback
Administering Wages Administering Wages and Salariesand Salaries
Identifying Strengths Identifying Strengths and Weaknessesand Weaknesses
What to Evaluate?
Traits MeasuresAre an assessment of what the employee is,
not what the employee actually does.Behavior-based measures
Focus on what an employee does and what the employee should do differently.
Results-based measuresFocus is on accomplishments or outcomes that
can be measured objectively.
How to Evaluate?
Relative Assessment Employees are measured against other
employees and ranked on their distance from the next higher to the next lower performing employee.
Absolute Measurement Employees are all measured strictly by
absolute performance requirements or standards of their jobs.
The Appraisal Process
Establish Performance Standard 1.
Communicate the Standard2.
Measures actual Performance3.
Compare actual performance with Standards 4.
Taking corrective Action, if necessary5.
Performance appraisal methods
AppraisalMethods
Performance appraisal
Individual evaluation1. Confidential report2. Essay evaluation3. Critical incident4. Checklist5. Graphic rating scales6. Forced choice method7. MBO
Individual evaluation method)
1.FREE ESSAY
In this method the rater is asked to express the strong as well as weak point of the behavior.
It describes an employee's actions rather than indicating an actual rating
Essay contd…
While preparing the essay on the employee the rater considers the following factors:
a)Job knowledge
b)Employees understanding of the company’s programmes, policies.
c)Employee relations with co –workers and superiors.
d)The attitudes and the perceptions of the employee.
2.CRITICAL INCIDENT METHOD
Critical incidents are behaviors that result in good or poor job performance.
Such incidents are recorded by the superiors. The rater plays the role of ‘Observer’ rather
than ‘Judge’.
For e.g. “I saw Mishra closing the steam line valve
at the instant the pipeline burst. We could save a lot of lives due to the above factor.”
CHECKLIST
A check list represents in its simplest form ,a set of objectives or descriptive statements about the employee and his behavior.
Checklists consist of groups of statements that pertain to a given job.
For e.g. I. is the employee really interested in the task?
Yes/No II.Does he respects his superior? Yes/No
GRAPHIC RATING SCALE (GRS)
I. In this method a printed form is used to evaluate the performance of an employee.
II. A variety of traits may be used in these types of rating devices .
III. In a Graphic Rating Scale, the rater assesses a rate on performance-related characteristics and personality characteristics,
ie. factors like quantity of work, dependability, job knowledge, cooperativeness, ability to lead, interpersonal skills, etc. by using a rating scale.
Forced Choice Method
A rating technique specially designed to increase objectivity and to decrease biasing factors in ratings.
It comprises of the use of statements that are grouped into sets according to certain statistical properties.
Rater is “forced” to select from each group of statements a subset (usually 2) of those statements which is most or least descriptive of the employee.
For e.g..
Least Most A Does not anticipate A difficulties B Grasps explanation B easily and quickly
C Does not waste time C
D Very easy to talk to D
Multiple –person evaluation methods
1. Ranking
2. Paired Comparison
3. Forced Distribution
1.Alternation ranking
2.PAIRED COMPARISON: For the trait “Creativity”
_+++EESHWAR
+_++DILIP
_++_CHARLES
____BHAVANA
__++ARUP
EESHWARDILIPCHARLESBHAVANAARUP
Forced distribution
One of the errors in rating is leniency i.e. Clustering a large number of employees
around a high point on a rating scale. This method compel the rater to
distribute the rates on all points on the rating.
For e.g. the following distribution might be assumed to exist – excellent 10%,good 20%,average 40%,below average 20%.
3.Forced Distribution
0
5
10
15
20
25
30
Low Low-avg
Avg High-avg
High
LowLow-avgAvgHigh-avgHigh
MANAGEMENT BY OBJECTIVES
The use of Management By Objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker.
MBO requires the management to set specific measurable goals with each employee.
This technique emphasis anticipatively set goals(that are agreed upon by the superior and the employee).
MBO………(process)
1. Set the organizational goals2. Set departmental goals3. Discuss departmental goals4. Define expected results5. Performance reviews6. Provide feedback
360 Degree Appraisal
A 360 degree appraisal system collects performance information from multiple parties, that interact with the employee on a routine basis.
Generate more accurate feedback by gathering information from people about an individual’s performance .
It was originally developed by TV Rao in mid eighties at IIM ,A.
18–35
360 DEGREES
Parties involved
1. Supervisors2. Peers3. Subordinates4. customer
360 Degree Appraisals
Supervisors
Peers Outsiders
Subordinates
Parties involved……
1. Supervisor –It includes supervisor of the employee having knowledge about the work of the employee. General practice is that immediate superiors.
2. Peers-Peer rating may reliable in rating behavior and manner of performance.
3. Subordinates-the concept of having superiors rated by subordinated .
4. Customers- employee performance in terms of behavior ,promptness ,speed in doing the job can be better judged by customers.
Contd……..
Corporation like GE, Reliance, Wipro,Infosys,SBI,Aditya Birla
Group are all using this tool to discover home truth about their managers.
For e.g. If manager has 6 subordinates ,the manager does not know which subordinates said what ,the result are summarized and averaged.
It may be possible one may criticize the boss for standing too close to people ,another may comment on boss’s aggressive tone.
Factors that can Distort Appraisals
1. First Impression The appraisers first impression of a candidate
may color his evaluation of all subsequent behavior.
2. Personal prejudice if the rater dislikes any employee or any
group ,he may rate them at the lower end .3. Halo effect: when one aspect of the
subordinate's performance affects the rater’s evaluation of the other performance.
Factors that can Distort Appraisals
4. Central tendency: Play safe policy in rating by rating all the
employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale.
5 .The Leniency and Strictness: 6. The Recency effect: The raters generally remember the recent
actions of the employee at the time of rating and rate on the basis of these recent action.
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