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A process that unites goal setting,
performance appraisal, and
development into a single, commonsystem whose aim is to ensure that the
employees performance is supporting
the companys strategic aims.
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Performance Appraisal is a process ofevaluating an employees performancein terms of its requirements.
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Performance appraisal, is considered to be one part or
phase of performance management system. It can also be
defined as a difference between an event and a year roundactivity. Performance Management ensures continuous
improvement in employees capacity and that he possesses
the required training and skills to achieve his targets along
with feed back.
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Broader Than
Performance AppraisalBegins with a look at goals &
strategies of the organization
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Researchers found that companiesthat used performance managementprograms had greater profits, bettercash flow, stronger stock marketperformance, greater stock value andhigher sales per employee (orproductivity) than companies thatdidnt.
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A leading edge organization seeks to create an efficient and effective
performance management system to:
Translate agency vision into clear measurable outcomes that
define success, and that are shared throughout the agency and
with customers and stakeholders; Provide a tool for assessing, managing, and improving the overall
health and success of business systems;
Continue to shift from prescriptive, audit- and compliance-based
oversight to ongoing, forward-looking strategic partnership
involving agency headquarters and field components; Include measures of quality, cost, speed, customer service, and
employee alignment, motivation, and skills to provide an in-depth,
predictive performance management system; and
Replace existing assessment models with a consistent approach
to performance management
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Employee performance management includes:
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Provide information about the performance ranks basing on whichdecisions regarding salary fixation, confirmation, promotion,transfer and demotion.
Provide feedback information about the level of achievement andbehavior of subordinate. This information helps to review the
performance of the subordinate, rectifying performancedeficiencies and to set new standards of work, if necessary.
Superior uses them as a base for coaching and counseling theindividual. Provide information which helps to counsel thesubordinate.
Provide information to diagnose deficiency in employee regardingskill, knowledge, determine training and development needs andto prescribe the means for employee growth provides informationfor correcting placement.
To prevent grievances and in disciplinary activities.
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To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development throughtraining, self and management development programs.
To help the superiors to have a proper understanding about theirsubordinates.'
To guide to job changes with the help of continuous ranking. To provide fair and equitable compensation based on
performance.
To facilitate for testing and validating selection tests, interviewtechniques through comparing their scores with performanceappraisal ranks
To provide information for making decisions regarding lay off,retrenchment etc.
To ensure organizational effectiveness through correctingemployee for standard and improved performance, and suggestingthe change in employee behavior.
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At the first stage, performance standards are established based on
job description and job specification.
The second stage is to inform these standards to all employees
including appraisers.
The third stage is following the instructions given for appraisalmeasurement of employee performance by the appraisers through
observations, interview, records and reports.
The fourth stage is finding out the influence of various internal and
external factors on actual performance of the employee and
others.
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The fifth stage is comparing the actual performance with the
standards and finding out the deviations.
The sixth stage is communicating the annual performance of the
employee and other employees doing the same job and discuss
with him about the reason for positive or negative deviations. The seventh stage is suggesting necessary changes in standards,
job analysis, and internal and external environment.
The eighth stage is follow-up of performance appraisal report.
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Supervisor
Peers
Subordinates
Self Appraisal
Customers
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Graphic rating scale.
Ranking method.
Forced distribution method.
Critical incident method. Essay method.
BARSbehaviorally anchored rating scale.
MBOmanagement by objectives.
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Graphic or Trait Rating Scales
Ratings are based on traits or characteristics of the
job incumbent
Examples: Dependability, Honesty, TeamPlayer, Job Knowledge, etc.
Ratings are usually on a Liker-type scale (1-5)
Usually the least helpful or accurate
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Forced Distribution Method
Just like a bell curve in academia
Categories are just like in Trait Scales
Difficult for supervisors to use and VERY difficult tojustify to employees
Standards for ratings have to be crystal clear in order
to work properly
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Behaviorally Anchored Rating Scales (BARS)
Provides concrete examples for the desirable,
acceptable, and unacceptable behaviors
Very easy to use for supervisors, and valid toemployees
Legally defensible
Expensive and time-consuming to develop
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Management By Objectives (MBO)
Based on achievement of goals/objectives
Feedback is given frequently over the goal-
setting period
Adjustments are made to the goals and time
tables as feedback is given
Rewards are typically given for meeting goals Problem: setting low, unchallenging goals
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360r Feedback
Method uses multiple raters (e.g., supervisor, peers,
subordinates, customers) to gather feedback on those
aspects of performance well-known to the rater All information is compiled into one feedback report
that is presented to the employee
A self-improvement plan is developed to overcome
weaknesses and capitalize on strengths
Usually used for development; generally not used for
salary increases because of political reasons
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INTERVIEW
An interview in which the supervisor andsubordinate review the appraisal and make
plans to remedy deficiencies and reinforcestrengths.
There are four types of appraisal interviews.
1. Satisfactory Promotable
2. Satisfactory Not promotable3. Unsatisfactory Correctable
4. Unsatisfactory - Uncorrectable
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Halo Effect:Appraising based on single characteristic.
Horn Effect : The raters bias is in the other direction, where onenegative quality of the employee is being rated harshly.
Leniency Effect : Depending on raters own mental make-up atthe time of appraisal , raters may be rated very leniently.
Stringency Effect : Depending on raters own mental make-up atthe time of appraisal, raters may be rated very strictly
Regency Effect : The rater gives greater weight age to recentoccurrences than earlier performance.
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1. Environmental constraints.2. Organizational leadership3. Interdependence of sub-systems4. Organizational structure
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To improve the performance of the employees of the organizationone should have to follow these recommendations:
The first step should be that every department and employee ofevery department should clearly know about the goals and missionof the company.
It is suggested that individual employees may be informed about
his /her performance rating. A report on the assessment may begiven to the individual concerned to know about his strength andweakness. This will give an opportunity to the employee toimprove up on his strength and overcome his weakness for furtherdevelopment.
Strong commitment from top management is required.
Each employee knows about the rules and regulations of thecompany.
There should be some standards made for comparing the presentperformance of each employee against that performance. Theperformance standard should be different from level to level.
The reporting officer should contact with his/her subordinate workerafter every week so that if he/she have any problem, it can betackled out or through this if the worker is not working well thesupervisor can guide him/her for improving the performance
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The incentives given to the employees should be basis on the
right decision. Appraisal form could be provided so that everyone can know
about his/her performance.
The employees hired for the job should have the abilities whichare required by the organization.
The reporting officer should have keep the performance data ofeach subordinate.
The reporting officer should give monthly feedback to thesubordinates regarding their performances and thereby givingsuggestions to improve.
Guideline should be given to every employee in this regard.
Follow the rule of right people on the right job is necessary forthe performance.
The performance appraisal system in the organization isconducted once in a year and this is used mostly foradministrative purpose like promotions, salary increases etc., itis suggested that performance appraisal could be done at morefrequent intervals, so that it will provide feedback on acontinuous basis.
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Developing an effective performance appraisalsystem requires strong commitment from topmanagement: if the system does not provide
the linkage between employee performanceand organizational goals, it is bound to be lessthan completely effective. An effective systemof performance appraisal is a major componentof an organization that allows every employee
to feel that his/her contribution has contributedto the success of the organization and a desireto add to that success.
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Thank You