Performance Appraisal

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Presentation Transcript

Slide 1:

Performance Appraisal

Slide 2:

Objectives About Performance appraisal Meaning Definition Process of Performance Appraisal Modern Methods / Techniques of Performance Appraisal Traditional Index Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

Slide 3:

Definitions 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’’.

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Meaning 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.

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Objectives of Performance Appraisal Employee Organization measuring the efficiency maintaining organizational control. concrete and tangible particulars about their work assessment of performance mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness Personal development work satisfaction involvement in the organization. According to: Aims at:

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Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards Process

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Paired comparison Graphic Rating scales Forced choice Description method Forced Distribution Method Checks lists Free essay method Critical Incidents Group Appraisal Field Review Method Confidential Report Ranking Assessment Center Appraisal by Results or Management by Objectives Human Asset Accounting Behaviorally Anchored Rating scales Traditional Methods Modern Methods Methods of Performance Appraisal

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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

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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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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

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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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Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser Appraisal must cover the period of the preceding 12 months Consideration to every function & responsibility of the job An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability Promotion now Within 2 years Within 5 years 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]

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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

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Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^ Field review method

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Group appraisal method

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MBO Process Set organizational goals Defining performance target Performance review feedback

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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

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360 degree performance appraisal

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These companies are using 360 Degree Performance Appraisal Method Examples of 360 degree performance appraisal method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)

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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?

Slide 22:

Constant check induces employee to perform better

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Advantages

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Disadvantages