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TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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Page 1: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN
Page 2: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

Dr.K.Baranidharan

Present by…

Page 3: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

RECOGNITION/REWARD/PERFORMANCE APPRAISAL

Presented by

Dr.K.Baranidharan

Page 4: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

RECOGNITION

• A process where by management shows acknowledgement of an employee’s outstanding performance• Accepted and winning role• Continuous improvement

Page 5: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

WHY

• Improve employees morale• Stimulate creative efforts• Create satisfied work place• Create highly motivated workplace• Behavior • Show the company’s appreciation for

better performance

Page 6: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

WAYS TO RECOGNISE• STEVE Smith have identify different ways to recognize the

employees.• 1.contribution• 2.interested knowledge up gradation(seminar, conference,

workshop)• 3.facing real challenges (work performance)• 4. news letter• 5.achievement• 6.tour arrangement• 7.training• 8.coffee or lunch an ay time • 9.create best ideas of the year• 10.involvment

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REWARD

• Is a tangible one, such as increased salaries, commission, cash bonus, gain sharing, etc., to promote desirable behavior.

Page 8: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

TYPES OF REWARDS

• 1. Intrinsic rewards: these are related to feelings of accomplishment or self-worth.

• Non-monetary, achievement, appreciation, performance appraisal, quality based promotion etc.,

• 2. Extrinsic rewards: these are related to pay for compensation issues.

• Profit sharing, gain sharing, job security, compensation etc.,

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Performance Appraisal9

(1) According to Edwin Flippo, "Performance Appraisal is the systematic, periodic and impartial rating of an employee's excellence, in matters pertaining to his present job and his potential for a better job."

(2) According to Dale Beach, "Performance Appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development."

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APPRAISAL PROCESS10

The Performance Appraisal process involves the following steps :

(1)Establish the Standards of Performance.

(2)Communicate these standards to employees.

(3)Measure the actual performance.

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(4) Compare actual performance with the standards established.

(5) In case of variation, initiate corrective action.

(6) Communicate the rating to the employee.

(7) Discuss the feedback with the employee.

(8) Conduct post-appraisal Interview.

(9) Initiate corrective action if required.

Page 12: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

Purpose / Uses 12

The main purposes of employee assessment are as follows :

(1) Identify employees who are eligible for salary increase.

(2) Generate data to take personnel decisions such as promotion, transfer and lay-off or termination decision.

(3) Determine the training and development needs of the employees.

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(4) Validate the selection process. (5) To measure whether standards

laid down has been achieved by the employees or not.

(6) Estimate the future requirement of work force.

(7) Helps to recognise potential of promising employees.

(8) Last but not the least, performance appraisal also helps in motivating employees by providing feed back about their level of performance.

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Advantages of Performance Appraisal :

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(1) SWOT Analysis : Performance Appraisal gives a complete idea of the employee's strength, weaknesses and based on that their opportunities and threats.

(2) Career Planning : On the basis of one's own SWOT analysis, an employee can have his career plans.

(3) Suitable Placement : Performance appraisal enables a company to give suitable placement to an employee based on their talents and skills.

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(4) Self-Development : Performance Appraisal is very much a positive activity which enables an employee to know his own weaknesses and also enables him to remove their weaknesses and lead to self-development.

(5) Effective Training Programme : Training programmes can be drawn out on the basis of the needs of employees to remove their weaknesses.

(6) Sound Personnel Policies : Personnel policies for promotions, transfer must be sound and objective. Performance Appraisal provides valuable information and reliable data for such decisions.

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(7) Employee – Employer Relations will be healthy if performance Appraisal information will be used for personnel management. This will minimise grievances and improve confidence in the management.

(8) Higher Employee Productivity : Employer morale will be high because there can be a system of rewards for employees with higher performance. This will improve organization productivity.

(9) Performance Appraisal will help in potential human resource planning.

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Limitations of Performance Appraisal :

17 Personal Bias : The biggest limitation of performance Appraisal is subjectivity. Due to human element in Appraisal, there is always a fear of one's own opinion coming in the way of Appraisal.

(2) Halo Effect : The tendency of an individual to rate an employee consistently high due to some earlier good performance rather than his existing performance is called as carrying a halo around oneself.

(3) Horn Effect : The tendency of a superior to rate a subordinate lower than his performance justifies due to some recent/earlier failures.

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(4) Lack of Uniform Standards : The standards used by different departments in the organisation may not be the same, hence, rating becomes unscientific and employees suffer. Some rates are too liberal while others are too strict causing lack of uniformity.

(5) Appropriate Appraisal Technique : Selection of appropriate appraisal technique is important to give the correct result. Some of the techniques are time-consuming and costly and so avoided. If wrong techniques are applied performance appraisal results may prove defective.

(6) Wrong Appraisal by Superior : Superiors have continuous and daily relations with the subordinates, giving accurate ratings may lead to spoiling relations with them which the superiors may want to avoid, hence higher rating to the subordinates.

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(7) Stress on Individual and not on Performance : Performance Appraisal must lay stress on the performance of the individual and not on his individual and not on his personal characteristics. Many a times this is overlooked and the personnel characteristics comes in the way of his performance appraisal.

(8) Central Tendency : Many a times to be on the safer side the rater would put the ratee on average scores. This happens because of 2 reasons — first of all if the rater does not want low scores to the ratee. Secondly, if he himself is not competent and would not like to show his incompetency.

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(9) Lack of Importance to Self-Development : Performance Appraisal is not for witch hunting but for finding out strengths as well as weaknesses. The strengths can be consolidated upon and the weaknesses too be removed through appropriate training. However, this aspect is not given importance and so the main objective of performance appraisal is neglected.

(10) Lack of Communication and Participation with Employees : Performance appraisal is not complete without communicating to the employee the results of the appraisal and also give him a chance to give his opinion, otherwise it is a one-sided affair without participation of employee and will not lead to their development.

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(11) Time-Consuming and Huge Paperwork : Performance appraisal is a continuous job for the superiors. There is need to continuously observe the subordinates, keep records, fill documents, write reports, hence time-consuming and costly.

Page 22: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

Methods of Performance Appraisal

(1) Ranking Method

(2) Paired Comparison Method

(3)Forced Distribution

(4)Forced Choice Method

(5) Check List Method

(6) Critical Incident Method

(7) Graphic Rating Scale

(8) Essay Method (9) Field Review

Method (10) Confidential

Report (11) Person-to-

Person Method

(1) MBO (2) BARS (3) Assessment

Centres (4) 360o

Appraisal (5) Cost

Accounting Method

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Page 23: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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  TABLE 1  Types of Quality Problems      

               

   Problem type  

Defining characteristics

Key problem solving tasks Strategies and techniques  

     

Unsatisfactory performance

Diagnosis; determining why Use statistical process control to

 

       

   Conformance problems  

         by a well-specified system;

the system is not performing as

identify problems, cause and effect  

         users not happy with system intended. diagrams to diagnose causes.  

          outputs.      

   Unstructured perfor-

Unsatisfactory performance

Setting performance goals;

Diagnostic methods; Use incentives  

   mance problems  

by a poorly specified system.

diagnosis; generating viable to inspire improvement; develop  

            solution alternatives.expertise; add structure appropriately.  

   Efficiency problems

Unsatisfactory performance

Setting performance goals;

Use employees to identify problems;  

         from the standpoint of sys-

localizing inefficiencies;

eliminate unnecessary activities; reduce  

         tem owners and operators.

devising cost effective input costs, errors and variety.  

            solution alternatives.    

   Product design problems

Devising new products that

Determining user requirements;

Quality function deployment translates  

          satisfy user needs.generating new product con-

user needs into product characteristics.  

           cepts and elaborating them into

Value analysis and “design for” meth-  

            viable artifacts. ods support design activity.  

   Process design problems

Devising new processes or

Problem definition, including

Use flowcharts to represent processes,  

         substantially revising exist-

requirements determination;

process analysis to improve existing  

          ing processes.generating and elaborating new

processes, reengineering to devise new  

            process alternatives.processes and benchmarking to adapt  

              processes from others.  

                 

Page 24: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

Type 5w2H Description Counter measure

Subject matter

What? What is being done?can this task be

eliminated

Eliminate unnecessary

tasks

Purpose Why? Why is this task necessary?

Clarify the purpose

Location Where? Where is it being done?

Does it have to be done there?

Sequence When? When is the best time to do it? Does it have

to be done then?

Change the sequence or combination

People Who? Who is doing it?Should someone else

do it?Why I am doing it?

Method How? How is it being done?Is this the best

method?Is there some other

way?

Simplify the task

cost How much?

How much does it cost now?

What will the cost be after improvement?

Select improvement

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Page 25: TQM - RECOGNITION, REWARD, PERFORMANCE APPRAISAL - FINAL YEAR ECE - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

Dr.K.BaranidharanTHANK YOU