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    &Performance ManagementAppraisal

    ,eam memberseorge MathewANISH SONIoseph Georgeyoti Jainagini C SEKHARowmya Ranjanyed AlitejASWINI

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    7/31/2009 THEJASWINI 2

    CONTENTS

    Introduction Performance Measures & Appraisal

    System

    Objectives of PerformanceManagement System & Appraisal

    The Appraisal Process

    The Appraisers

    Performance Appraisal Methods

    The Appraisal Interview

    Pitfalls in Performance Appraisal

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    INTRODUCTION

    A formal definition of performance appraisal is:

    It is the systematic evaluation of theindividual with respect to his or her

    performance on the job and his or herpotential for development.

    OR

    Performance Appraisal (PA) refers to all thoseprocedure that are used to evaluate thepersonality, the performance, and thepotential of its group member.

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    PA are of two types 1.)

    Formal 2.) Informal.

    PA is used for basically three purposes

    Remedial, Maintenance, and Development.

    PA systems provides management an

    opportunity to recall as well as feedbackto employees.

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    7/31/2009 JOSEPH GEORGE 5

    Formal performance appraisal

    It occurs usually annually on formalizedbasis that involves appraise &appraiser in finding answer toquestions like:

    What performance was set to achieveduring the period?

    Has it been achieved & how will we know

    that we have done it? What assistance can be expected to

    improve performance?

    What rewards & opportunities are likely

    to follow from the performance

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    7/31/2009 JOSEPH GEORGE 6

    Informal performance appraisal

    Informal performance appraisal is acontinuous process of feeding backinformation to the subordinatesabout how well they are

    doing their work in the organization

    Conducted on day to day basis

    Informal appraisal quickly encouragesdesirable performance & discouragesundesirable performance.

    It is an integral part of the

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    7/31/2009 JOSEPH GEORGE 7

    Key Elements

    EmployeeEmployeeFeedbackFeedback

    EmployeeEmployee&Records &Records

    HR DecisionsHR Decisions

    HumanHumanPerformancePerformance

    Performancerformance &easures &easuresCriteriariteria

    PerformancePerformanceAppraisalAppraisalInterviewInterview

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    7/31/2009 JOSEPH GEORGE 8

    PerformanceMeasures

    IndirectIndirect

    ObjectiveObjective

    Rater must evaluate substitutes( )for performance constructs

    Verifiable by others Usually quantitative

    SubjectiveSubjective Not verifiable by others Usually rater s personal opinions

    DirectDirect Rater actually sees the

    employee s performance

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    7/31/2009 GEORGE MATHEW 9

    -Jo b re la te dSystem evaluates critical behaviors

    that constitute job success

    Practical

    Understood and relatively simplePerformance standards

    Related to the desired results ofeach job

    Performance measuresReports on critical behaviors

    Appraisal Systems

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    7/31/2009 GEORGE MATHEW 10

    OBJECTIVES OF PERFORMANCEAPPRAISAL

    Setting targets and goals asperformance standards.

    To identify individuals with high

    potentials Evaluating & enhancing employees

    effectiveness

    Identifying employees training &development needs

    To Rewarding Performance

    Improving Performance &

    Communication

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    7/31/2009 GEORGE MATHEW 11

    B y m a kin g e ffe ctiv e u se o f P e rfo rm a n ce,a p p ra isa l sy ste m a n o rg a n iza tio n m a y

    .seek to Im p ro ve p ro d u ctiv ity C re a te a p o sitive w o rk e n viro n m e n t

    &S tim u la te re co g n ize re w a rda ch ie ve m e n ts

    Provide objective measures of performance Furnish information for other HR sub

    systems

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    7/31/2009 GEORGE MATHEW 12

    Relationship between job analysis and:performance appraisal

    ob analysis PerformancePerformancetandards appraisal

    Describes work& Personnel

    RequirementOf a particular

    job

    Translate jobInto levels of

    acceptableOr

    unacceptableperformance

    DescribestheJob relevant

    strengthsand

    weakness ofEach

    individual

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    7/31/2009 HANISH SONI 13

    Who are the Raters

    A p p ra isee

    Possible in organizations whereself appraisal is an important

    component Help the employee to review and

    control his own performance

    Superior..

    Immediate superior would rate theperformance of the subordinates

    Subordinates He will rate the performance of

    (superior students will evaluate)the faculty

    Peers

    Colleagues will rate each,others performance

    particularly where team

    work matters more

    /Clients usersIn service e oriented organiza

    Consultants

    Outside consultants may beinvolved in ratingemployees

    Top management

    Who report directly to them

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    7/31/2009 HANISH SONI 14

    Low High

    High

    Low

    WorkHorses

    Stars

    Deadwood

    Problemchildren

    Performance

    Potential

    What to evaluate? (PhilipModel)

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    Stars are the people with high potentialand high performance therefore they lead

    the organizations.

    Work Horses perform highly but normallyit is due to threat or pressure since their

    potential is limited.

    Problem Children are those people whohave immense potential but this is not

    properly channelized into performance forbetter development.

    Dead Woodis that kind of people whoneither have potential nor are able to

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    Establishing job standards

    Designing an appraisal programme

    Appraise performance

    Performance interview

    Use appraisal data

    For appropriate purpose

    teps in performance appraisal

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    7/31/2009 HANISH SONI 17

    rocess of PA

    ettingperformancestandardsakingcorrectivestandards

    Discussingresults

    omparingstandards

    Measuringstandards

    Communicatingstandards

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    7/31/2009 SOWMYA 18

    erformance Appraisal Methods Point allocation method Essay evaluation Critical incidents

    Checklists Graphic rating scale

    Ranking methods

    Forced distribution Behaviorally anchored rating scale

    360 degree performance appraisal

    Balanced scorecard

    Traditiona

    l methods

    Modernmethods

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    Point allocation method

    The appraiser has to allocate points todifferent members in his team

    A specific number of point which isdistribute to the members are based ontheir performance during the appraisalperiod

    Best performer gets the highest score andthe last one gets the least.

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    Essay Evaluation

    The appraiser prepares a documentdescribing the performance of theemployee

    Questions or guidelines are provided to theappraiser, based on which he analyses anddescribes the employee performance

    Appraiser can express all his views and clearit on the employees performance

    The writing skills, or lack of it, of the appraiser

    can make an inadequate performance seemto be ade uate.

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    Critical Incident method

    Workers reaction scale

    A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1

    The appraiser makes a note of all the criticalincidents that reflect the performance of the

    .employee during the appraisal period

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    7/31/2009 SYED ALI 22

    Checklist method

    S im p le ch e ck list m e th o d W e ig h te d ch e ck listm e th od

    Fo rce d ch o ice m e th o d :imple checklist methodIs employee regular /Y NIs employee respected by subordinate /Y NIs employee helpful /Y NDoes he follow instruction /Y NDoes he keep the equipment in order /Y N

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    Weighted checklist method

    w e ig h ts p e rfo rm a n cera tin g

    ( )scale 1 to 5R e g u la rity .0 5Lo y a lty .1 5

    W illin g to h e lp .1 5

    Q u a lity o f w o rk .1 5R e la tio n sh ip .2 0

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    Forced choice method

    C rite ria R a tin g

    .1 R e g u la rity o n th e jo b Most Le a st A lw a y s re g u la r In fo rm in a d v a n ce fo r d e la y N e v e r re g u la r R em ain ab sen t N e ith e r re g u la r n o r irre g u la r

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    Graphic Rating Scale

    .xc Good Acceptable Fair Poor 5 4 3 2 _DependabilityInitiative

    verall outputAttendanceAttitudeCooperation

    otal score

    The rater rates the employee on:factors like

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    Ranking method

    E m p lo y e e R a n k

    A 2

    B 1

    C 3

    D 5

    E 4

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    Forced Distribution method

    %0 %0 %0 %0 %0poor Belowaverageaverage good Excellent

    .ofemployees

    orce distribution curve

    Behaviorally anchored rating

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    Behaviorally anchored rating{ }scale BARS

    It concentrates on the behavioraltraits demonstrated by the employeeinstead of his actual performance.

    .Step 1 Determine the relevant jobdimensions

    .Step 2

    Identify behavioral anchors

    .Step 3 Determine the scale

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    360 degree performance appraisal

    Data/feedback/rating is collectedfrom all sections of employee

    An employee is evaluated from all

    the angles

    Comprehensive.

    Reduces subjectivity.

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    Balanced scorecard

    Channelizes the effort of theemployee.

    HR score card.

    Job assignment.

    Online feedback is given.

    COMP n BEN

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    7/31/2009 RAGINI C SEKHAR 31

    The Appraisal Interview

    Self appraisal & self assessment.

    Identification of training &development inputs.

    Discusses with the supervisor. Future course of action.

    Supervisor evaluates subordinates. Feedback to employee.

    Training & development.

    Draw an action plan.

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    Challenges

    The organizational culture

    The maturity level of the individuals.

    An apprehensive employee.

    A wary appraiser.

    A biased appraiser.

    Inexperience.

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    Dealing with challenges

    Productive & constructivecontributor.

    Dealing with inherent problems.

    Setting specific measurable goals.

    Training on process of PA interview.

    Chance to reflect.

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    .Pitfalls in performance appraisal

    Halo effect: The appraiser allows asingle characteristics of the appraiseto dominate.

    Leniency effect: Appraiser gives only+ve result

    Stringency effect: Opposite of the above.

    Regency effect: Occurs when the recentperformance of the appraiserdominates the appraisal.

    Primacy effect: Beginning of thea raisal eriod dominates the

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    ..Pitfalls contd

    Central tendency effect: Rating in themiddle of the scale.

    Culture: Culture influences rater in a

    particular way. Stereotyping: Potential error in

    personality analysis.

    Perceptual set: exception of theperformance level.

    Fundamental attribution error:performance affected due to someexternal factors.

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    Conclusion

    Measures the qualitative &quantitative aspects of jobperformance.

    To assess the past performance.

    To identify training needs.

    To set & agree on the future

    objectives.

    To facilitate the achievement of thesegoals.

    Acts as an audit.

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    Bibliography

    vHuman resource management - Biswajeet Pattnayak

    vHuman Resource Management -Gary Dessler

    vEssentials of HRM & IndustrialRelations

    -P.Subba Rao

    vWIKIPEDIA

    vGOOGLE

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    Thanking you all...

    Our special thanks to

    Prof. PRADEEPfor his constant support & guidance.

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