HRD_Performance appraisal

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PERFORMANCE APPRAISALA Key to Organisation Success : 

Taken From HRM review The ICFAI university press international careerists adaptability styles By Deepika PERFORMANCE APPRAISALA Key to Organisation Success

The latest mantra being followed by organizations across the world is “ Get paid according to what u contribute” : 

The latest mantra being followed by organizations across the world is “ Get paid according to what u contribute” Organization are paying more attention to performance management and specially to individual performance. So, if the process of performance appraisal is properly structured, it will help employees understand their roles, responsibilities, enable them to align their individual performance with organizational goals and also help review their performance.

People differ in their abilities and attitudes so there is always some difference between the quality and quantity of same work done by two different individuals. : 

People differ in their abilities and attitudes so there is always some difference between the quality and quantity of same work done by two different individuals. Therefore, performance appraisal is necessary to understand the employee’s individual abilities, competencies, relative worth and merit for the organization. Performance appraisal is practiced in 90% of the organization world wide.

THE OBJECTIVE OF PERFORMANCE APPRAISAL : 

THE OBJECTIVE OF PERFORMANCE APPRAISAL To analyze the performance of the employees over a specified period of time. To find out the gap between the actual and desired performance. To judge the effectiveness of the other human resource functions of the organization, such as recruitment, selection, training and development. To provide inputs to the system of reward and salary administration. To help in creating an organizational culture. To generate adequate feedback and guidance from the immediate superior o the employees working under him.

It is a powerful tool to refine and reward the performance of the employee which analyze his achievement of the overall organizational goals. : 

It is a powerful tool to refine and reward the performance of the employee which analyze his achievement of the overall organizational goals. It creates a sense of insecurity in the working environment and becomes an obstacles in achieving the required changes in the attitudes, but on the other, it also improves the work performance and employee satisfaction

PROCESS OF PERFORMANCE APPRAISAL : 

PROCESS OF PERFORMANCE APPRAISAL Establishing performance standards It is used as a base to compare the actual performance of the employees. This step sets the criteria to judge the performance of the employees whether they will successful or unsuccessful and to analyze the degrees of their contribution to the organizational goals. Goals should meet the criteria of SMART S – Specific R – Relevant M – measurable T - Time based A – Attainable

Slide 7: 

Communicating the standards After setting the standards, it is the responsibility of the management to communicate the standards to all the employees of the organization which will help them under their roles and know that exactly is expected from them. Measuring the actual performance In performance appraisal process, the actual performance of the employees is measured during the specified period of time i.e., after the work has been completed by the employee. It is a continuous process which involves monitoring the performance. This stage requires the careful selection of the appropriate techniques of measurement and taking care about personal bias so that it does not affect the outcome of the process.

Slide 8: 

Comparing the actual with the desired performance The actual performance is compared with the desired performance. The comparison tells evaluation and analysis of data related to the employees performance. Discussing result The result of the appraisal is discussed with the employees on one-to-one basis. The results problems and possible solutions are examined with the aim of problem solving. The purpose of discussing results is to solve the problems faced and motivate the employees to perform better.

Slide 9: 

Decision Making The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers, etc.

Slide 10: 

Establishing Performance Standards Communicating the standards Measuring the Actual Performance Comparing the Actual with the Deasired Performance Discussing Result

360-degree performance appraisal : 

360-degree performance appraisal 360-degree performance appraisal is also known as ‘multi-rater feedback’ in which the feedback about the employee’s performance comes from all the sources who come in contact with the employee. 360-deree performance appraisal has a significant impact on the behavior and performance of an employee. It is a powerful development tool which helps keep track of the changes and other’s perceptions about the employees Some of the organizations which follow it are: WIPRO, Infosys and Reliance industries.

360-degree performance appraisal has four integral components : 

360-degree performance appraisal has four integral components Self –appraisal: Gives a chance to the employee to look at his strengths, weakness, achievements and judge his own performance. Superior’s appraisal: This type of appraisal helps from the employees responsibilities and actual performance is rated by the superior. Subordinate’s appraisal: Here the subordinates assess the employees on the parameters like communication and motivating abilities, leadership qualities, etc.

Slide 13: 

Peer Appraisal: The correct feedback given by peers can help find the employees abilities to work in a team, cooperation and sensitivity towards others.

Performance appraisal in Rourkela Steel Plant(RSP) : 

Performance appraisal in Rourkela Steel Plant(RSP) Performance appraisal process is the driving force behind the RSP’s success as it enables effective engagement of employees. The performance appraisal process is designed so as to improve performance of the employees by assigning various objectives which includes. To assess the individual performance indicators with its vision and mission. To assess the values shared and practiced by the employees. To establish two-way communication between the employees and the managers. To develop technical competencies in relation to leadership and managerial competencies.

Four Integral components of 360-degreee Appraisal : 

Four Integral components of 360-degreee Appraisal Peers Team Members Subordinate Superior Employee Suppliers/vendors Customer

Five-stage performance appraisal process of RSP : 

Five-stage performance appraisal process of RSP Performance planning: At the beginning of the year the key performance areas are identified. The various measures that should taken as well as the competencies required for fulfilling them are also considered. Mid-year review: A joint review on competencies, measures on key performance areas, etc., are held and it is well documented.

Annual Assessment:The reporting officer identifies the values and then if required, plans for a training program .these are subsequently reviewed by the officer. : 

Annual Assessment:The reporting officer identifies the values and then if required, plans for a training program .these are subsequently reviewed by the officer. Normalization Process: Integrity is maintained by handling variation across the departments and ensuring the transparency of this process. Feedback: Feedback is provided to improve performance which is based on discussion. Various developmental programs are arranged to enhance the skill levels of the employees.

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