SEMINAR ON HUMAN RESOURCE MANAGEMENT

PRESENTED BYASWATHY G UDAYAN

S2 MBA

TOPIC

PERFORMANCE APPRAISAL

INTRODUCTION

Performance appraisal is the process of measuring quantitatively and qualitatively an employees’ past or present performance against the background of his expected role performance, the background of his work environment ,and about his future potential for an organization.

DEFINITION

According to Edward Flippo , “performance appraisal is the

systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.”

According to Dale S. Beach ‘’Performance appraisal is the systematic evaluation

of the individual with respect to his or her performance on the job and his or her potential for development’’.

FEATURES OF PREFORMANCE APPRAISAL

It is systematic and objective description of an employee’s strength and weaknesses in terms of the job.

The appraisal is an ongoing and continuous process.

The performance appraisal seeks to secure information.

Performance appraisal may be formal or informal.

OBJECTIVES OF PERFORMANCE APPRAISAL

1)Work –Related Objectives. 2)Career Development Objectives. 3)Communication . 4)Organizational Objectives

BENIFT AND USE OF PERFORMANCE APPRAISAL

An effective system of performance appraisal help the supervisor to evaluate the performance of his employees systematically and periodically.

The result of performance appraisal may be used by the supervisor in constructively guiding the employees in the efficient performance of their jobs.

It provides the management and objective basis.

It can be used for transfer and promotion of employee.

Appraisals can be used to analyze the training and development needs and evaluate the effectiveness of existing training programs.

LIMITATIONS 1.Leniency or strictness. 2.Similarty error 3.Miscellaneous biases. 4.faulty assumptions 5.Psychological blocks.

Performance Appraisal Process

Communicating standards to employees

Establishing standards

Measuring actual performance

Comparing actual with standards

Discussing reports with employees

Taking corrective action

METHODS

A)TRADITIONAL METHODS B)MODERN METHODE

Traditional method 1,Confidential report 2,Graphic scales 3,Straight ranking 4,Paired comparisons 5,Grading system 6,Forced distribution

MODERN METHODE

Assessment centre Human resource accounting Behaviorally anchored rating scales Management by objectives 360 degree performance appraisal

1.Confidential report

The confidential report is written for a unit of one year and relates to the performance ,ability and character of the employee during that yerar.The report is not data based but subjective.

2.Graphic scale methodA rating scale lists traits and a range of performance value

for each trait. The supervisor rates each subordinates by circling or checking the score that best describes his performance for each trait. The assigned value for the trait are then tottaled .The selection of factor to be measured on the graphic rating scale is an important point under this system.

3.Straight Ranking MethodEvery employee is judged as a whole without

distinguishing the rate from his performance .A list is then prepared for ranking the workers in order of their performance on the job so that an excellent employee is at the top and the poor at the bottom.

4.Paired comparisons methodIn this method every person is compared trait –

wise, with other persons ,one at a time , the number of times one person is compared with other is tallied on a piece of paper. These numbers help in yielding rank order of employees.

5.Grading SystemUnder this system certain features like

analytical ability,co-operativenes ,dependability, job knowledge etc. are selected for evaluation. The employees are given grades according to the judgement of the rater.

6.Forced distribution method This system minimizes rater’s bias so that all

employees are not similarly rated. This system is based on the presumption that all employees can be divided in to five categories.ie,outstanding, above average , average ,below average and poor.

1,Assessment centreAssessment center is a method also used to

select candidate for entry level position. All candidate get an equal opportunity to prove their merit. They are evaluated by a team of trained evaluators under similar condition.

2.Human resource accounting Under this method ,performance is judged

in terms of cost and contributions of employees.

3, Behaviorally anchored rating scaleIt combines the benefit of critical incidents

and graphic rating scale by anchoring a scale with specific behavioral examples of good or poor performance.

4,Management by objectivesMBO can be on a modest scale with

subordinates and superiors jointly setting goals and periodically providing feedback. It refers to a comprehensive,organisation wise goal setting and appraisal programme .

6,360 Degree performance appraisalThis appraisal provides formalized

communication link between an employee and his customers. By design this appraisal is effective in identifying and measuring interpersonal skills, customer satisfaction and team building skills.

CONCLUSION

Performance appraisal is a significant element of information and control system in organisations.It can be put to several uses concerning the entire spectrum of HRM function.

THANKYOU