the performance appraisal system
DESCRIPTION
Concepts of Appraisal & Appraisal Methods.TRANSCRIPT
The Appraisal System.Concepts of Appraisal & Appraisal Methods
Presenters: [Group 2] Roll Nos.
ARKAPAL SIL 09ARUN MOHTA 12BINIT KUMAR DAS 14ARPO MUKHERJEE 11ADITYA SINGH BAIS 13ANKUR ANAND 08
CONTENTS
Definitions
Meaning
Objectives of Performance Appraisal
Methods of Performance Appraisal
360 degree performance appraisal
Issues in appraisal system
Advantages
Disadvantages
Conclusion
According to Newstrom, “It is the process of
evaluating the performance of employees, sharing
that information with them and searching for ways to
improve their performance’’.
Definitions
Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees .
A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in
terms of its requirements.
Meaning
Objectives of Performance Appraisal
Measuring the efficiencyMaintaining organizational
control.
Concrete and tangible
particulars about their
workAssessment of
performance
Mutual goals of the
employees & the organization.Growth & developmentIncrease harmony &
enhance effectiveness
Personal development Work satisfaction Involvement in the organization.
Employee Organization
According to:
Aims at:
1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description
method
4. Forced Distribution Method
5. Checks lists
6. Free essay method
7. Critical Incidents
8. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
1. Assessment Center
2. Appraisal by Results or
Management by
Objectives
3. Human Asset
Accounting
4. Behaviorally Anchored
Rating scales
Traditional Methods Modern Methods
Methods of Performance Appraisal
Paired Comparison Method
• Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair.
• It is useful where priorities are not clear• This method is not appropriate if a large
number of employee are required to be evaluated.
As compared to A B C
A + - +
B - + -
C + - +
For the Trait “Quality of work”
A - + +
B + - +
C + + -
As compared to A B C
For the Trait “Creativity”
+
+
++
+
+
+
+ +-
-
-
--
- +
- -
Person rated Person rated
Ranking employees by paired comparison Method
Graphic or Linear Rating Scales
• A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait.
• It includes the employee characteristics and employee contribution
Graphic or Linear Rating Scales Attitude
No interestIn work: consistentcomplainer
Careless: In-differentInstructions
Interested in work: Accepts opinions & advice of others
Enthusiastic about job & fellow-workers
Enthusiastic opinions & advice sought by others
Decisiveness
Take decisions in consultation with others whose views he values
Slow to take decisions
Take decisions after careful consideration
Takes decisions promptly
Take decisions without consultation
0 5 10 15 20
0 5 10 15 20
Criteria Rating
1.Regularity on the job Most Least
Forced choice method
• Always regular• Inform in advance for delay• Never regular• Remain absent• Neither regular nor irregular
No. of employees
10% 20% 40% 20% 10%
poor Belowaverage
average good Excellent
Force distribution curve
Forced distribution method
Ex: A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
Critical Incident method
Staff AppraisalName . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present jobSection I Appraisal Of Performance
Note to Appraiser1. Appraisal must cover the period of the preceding 12 months2. Consideration to every function & responsibility of the job3. An objective factual assessment of an employee’s improvement or
deterioration
Section II Promotability & Potential
Promotability1. Promotion now2. Within 2 years3. Within 5 years4. Unlikely to qualify for promotion
Section III Career Development
Section IV Notes on Interview with employee
Section V Comments on & Endorsement by Reviewing Authority
Specimen of Staff Assessment Form [Descriptive Essay Type]
Performance subordinate peers superior customerDimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
Field review method
Management By Objectives
The MBO concept, as was conceived by Drucker, reflected a management philosophy which values and utilizes employee’s contributions. Application of MBO in the field of performance appraisal is a very recent thinking.
MBO Process
Set organizational goalsDefining performance targetPerformance reviewFeedback
Performance Points Behavior
Extremely good
7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average
5 Can expect to keep in touch with the customers throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor
1 Can expect to take extended coffee breaks & roam around purposelessly.
Behavioral Anchored Rating Scales
360 degree performance appraisal
360 degree performance appraisal
These companies are using 360 Degree Performance Appraisal Method
Examples of 360 degree performance appraisal method
WiproInfosysReliance Industries
Maruti UdyogHCL TechnologiesWyeth Consumer Health (WCH)
Issues in appraisal system
Appraisal Design
Formal and informal
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?
AdvantagesProvide a record of
performance over a period of
time.
Provide an opportunity
for a manager to
meet & discuss
performance
Provide the employee
with feedback
about their performanc
e
Provide an opportunity
for an employee to
discuss issues and to clarify
expectations
Can be motivational
with the support of a good reward
and compensati
on
If not done appropriately, can
be a negative experience.Very time
consuming, especially for a
managerSubject to rater errors & biases.
If not done right can be a complete waste
of time.Can be stressful for
all involved
Disadvantages
Conclusion Because many of the more conventional performance
appraisal methods have often proved unpopular with those being appraised and evaluators a like, 360 is gaining popularity with many managers and employees.
It offers a new way of addressing the performance issue. When used with consideration and discipline, feedback
recipients will feel that they're being treated fairly. In addition, supervisors will feel the relief of no longer carrying
the full burden of assessing subordinate performance. The combined effect of these outcomes should result in
increased motivation, which in turn improves performance.
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