Performance appraisal PPT submitted to annu mam

Performance appraisal: 

Performance appraisal

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Submitted By TESSY ANTONY MAMS 2

Performance appraisal: 

Performance appraisal Performance Appraisal : process through which an organization gets information about how well an employee is doing his/her job; also called Performance Evaluation Performance appraisal is the systematic, periodic and impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Process of obtaining, analyzing and recording information about the relative worth of an employee 3

Features of PA: 

Features of PA under stand the difficulties of the employees and to remove the difficulties at workplace. Understand the strength ad weakness of the employee Help the employees to aware of their positive contribution Encourage employee to accept more responsibilities and challenges. Help employees to acquire new capabilities Plan effective utilization of the talent of employees 4

: 

To provide feedback to employees so that they come to know where they stand and can improve their job performance. To provide a valid database for personnel decisions concerning placements, pay, promotion, transfer,…… To diagnose the strengths and weaknesses of individuals so as to identify further training needs. To provide coaching, counseling, career planning and motivation to subordinates. To test the effectiveness of recruitment, selection, placement and induction programmers. Objectives of Performance Appraisal 5

Factors That Influence Performance: 

Factors That Influence Performance 6

WHO: Source for Performance Measures: 

WHO: Source for Performance Measures 7

Uses of Performance Appraisal – personal view: 

Uses of Performance Appraisal – personal view Performance Appraisal Performance Feedback Wages and Salaries Identifying Strengths and Weaknesses 8

Uses of performance- organization view: 

Uses of performance- organization view 9

Performance Appraisal Process: 

Performance Appraisal Process 10

Methods of Performance Appraisal: 

Methods of Performance Appraisal Traditional methods Confidential report Free Form/Essay Straight Ranking Paired Comparison Forced Distribution Graphic Rating Scales Checklist Method Critical Incident Method Group Appraisal Modern methods Assessment centers Human resource accounting Behaviorally Anchored rating scales Management by objectives 360 degree PA 11

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Traditional Methods 12

Confidential report: 

Confidential report Used in government and pubic enterprises. Report prepared by the employee’s immediate superior. It covers the strengths and weaknesses, main achievements and failure, personality and behavior of the employee. Descriptive appraisal used for promotions and transfers. No feed back is provided to the employee being appraised and, therefore, its credibility is very low. Focus on evaluating rather than developing. The employee who is appraised never knows his weaknesses and the opportunities available for overcoming them. 13

Free Form/Essay Method: 

Free Form/Essay Method The evaluator writes a short essay on the employee’s performance on the basis of overall impression. An essay can provide a good deal of information about the employee especially if the evaluator is asked to give examples of each one of his judgments. 14

Free Form/Essay Method: 

Free Form/Essay Method It involves bias since no criteria for appraisal. Quality of appraisal depends on the writing ability of the evaluator rather than on employee performance. Very time consuming method of appraisal. It is not possible to compare two essay appraisals due to variations in their length and contents. 15

Straight Ranking Method: 

Straight Ranking Method Simplest and oldest method of performance appraisal. Employees are ranked from the best to the poorest on the basis of overall performance. The ‘wholeman is compared with the wholeman’ without analyzing performance. The relative position of an employee is reflected in his numerical rank. 16

Straight Ranking Method: 

Straight Ranking Method Employee Rank Anil 2 Bindhu 1 Chinju 5 Don 4 Elizebath 3 17

Paired comparison: 

Paired comparison Every person is compared trait wise with other persons one at a time. The no. of times one person is compared with other is tallied on a piece of paper. Comparison is made on the basis of overall performance. n(n-2) determines no. of comparisons to be made; where n is the no. of persons to be compared. 18

Paired Comparison Method: 

Paired Comparison Method As compared to A B C D E Final Rank A + - - - 4 B - + - + 3 C + - + + 2 D - - - - 5 E + + + + 1 19

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Graphic or Linear Rating Scales Attitude No interest In work: consistent complainer Careless: In-different Instructions 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

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No. of employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve Forced distribution method

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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

Modern Methods of Performance Appraisal: 

Modern Methods of Performance Appraisal 23

Assessment Centers : 

Assessment Centers Assessment center is a central location where the managers come together to participate in job related exercises evaluated by trained observers. Measures interpersonal skills, communication skills, ability to plan and organize, self confidence, resistance to stress, mental alertness. 24

Assessment Centers- importance: 

Assessment Centers- importance Helps to determine training and development needs of employees. This method is also used to select students for entry level positions. Candidates are evaluated by a team of trained evaluators under similar conditions and so rater’s bias is reduced 25

Assessment Centers- limitation : 

Assessment Centers- limitation Time consuming and expensive method. The candidates who receive a negative report from the assessment center may feel demoralized. Difficult to conduct the tests frequently. Create strong and unhealthy sense of competition among the employees. 26

Behaviorally Anchored Rating Scale (BARS): 

Behaviorally Anchored Rating Scale (BARS) Combines critical incidents and graphic rating scales. BARS are description of various degrees of behavior relating to specific performance dimensions. Critical areas of job performance and the most effective behavior for getting results are determined in advance. The rater records the observable job behavior of an employee and compares these observations with BARS 27

Behaviorally Anchored Rating Scale (BARS): 

Behaviorally Anchored Rating Scale (BARS) Advantage . BARS helps to clarify what is meant by extremely good performance, average performance ….. The technique is not biased by the experience and evaluation of the rater. BARS evaluations seem to be relatively consistent and reliable in that different raters’ appraisals of the same person tend to be similar. Demerits Time consuming and expensive method. Several appraisal forms are required to accommodate different types of jobs in an organization 28

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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

Appraisal by Results or MBO : 

Appraisal by Results or MBO Refers to a comprehensive org wise goal setting and appraisal programme. MBO can be applied with great success if the performance appraisal programme consists of the following elements: Detailed job descriptions should be available to help setting of goals for different positions. Superiors should have trust in subordinates to establish reasonable goals. Emphasis should be on problem solving rather than criticism of the performance of the subordinates. 30

Process of Mbo: 

Process of Mbo 31

MBO : 

MBO Advantages Role Clarity Objective Appraisal Motivation and Commitment Management Development Coordination Disadvantages Difficulty in goal setting Problem of Participation Lack of Understanding Time Consuming Expensive 32

Human Resource Accounting : 

Human Resource Accounting This method attaches money values to the value of a firm’s internal human resources and its external customer goodwill. When competent and well trained employees leave an organization the human asset is decreased. Performance is judged in terms of costs and contribution of employees. Cost: HRP, recruitment, selection, induction, training, compensation Contribution: money value of labor productivity or value added by HR 33

360 degree performance appraisal: 

360 degree performance appraisal Involves a systematic collection of performance data on an individual or group, derived from a no. of stake holders. Provides a broader perspective about an employee’s performance. 34

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SUPERIOR CUSTOMERS SUBORDINATES PEERS SELF TEAM 360 0 Feedback 35

Advantage and demerit of 360-Degree Appraisal: 

Advantage and demerit of 360-Degree Appraisal Advantage The system is more comprehensive in that responses are gathered from multiple perspectives. Quality of information is better. It may lessen bias/prejudice since feedback comes from more people, not one individual. Feedback from peers and others may increase employee self-development. Demerits The system is complex in combining all the responses. The system requires training to work effectively. Employees may collude or “game” the system by giving invalid evaluations to one another. Appraisers may not be accountable if their evaluations are anonymous. 36

Limitations of Performance Appraisal: 

Limitations of Performance Appraisal Errors in Rating Halo Effect : tendency to rate the employee consistently high or low on the basis of overall impression. Stereotyping : forming a mental picture of a person on the basis of his age, sex, caste or religion. Central Tendency : assigning average ratings to all the employees in order to avoid commitment or involvement . 37

Limitations of Performance Appraisal: 

Limitations of Performance Appraisal d) Constant Error : some evaluators tend to be lenient while others are strict in assessing performance. In the first case performance is overrated(leniency error) while in the second type it is underrated(strictness error). e) Personal Bias : performance appraisal may become invalid because the rater dislikes an employee. f) Spill Over Effect : this arises when past performance affects assessment of present performance. 38

Limitations of Performance Appraisal: 

Limitations of Performance Appraisal 2. Lack of Reliability : lack of consistency over time and among different raters may reduce the reliability of performance appraisal. 3. Incompetence : raters may fail to evaluate performance accurately due to lack of knowledge and experience. 39

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Disadvantages

Essentials of an Effective Performance Appraisal System: 

Essentials of an Effective Performance Appraisal System Mutual Trust Clear Objectives Standardization Training to Evaluators Job Relatedness Post Appraisal Interview 41