Performance Appraisal

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Performance Appraisal:

Performance Appraisal Pavani.V Asst Prof GRCP HYD

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Systematic evaluation of an individual with respect to his/her performance on the job and the potential for development performance rating, employee assessment, employee performance review and merit rating One of the fundamental jobs of HRM Objectives of Performance Appraisal:- It is done for each employee and records are maintained Promotions Services of probationary employees Pay raise Employees are informed where they stand Improves understanding of personal goals and concerns

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Includes establishing performance standards and reviewing the performance Means to ensure organizational goals are being met

Designing a performance management system:

Designing a performance management system Conduct job analysis Set performance standards Appraise performance Feedback information to employee 4

Establish Performance Criteria:

Establish Performance Criteria Traits Behaviors Competencies Goal Achievement Improvement Potential 6

The Appraisal Period:

The Appraisal Period Prepared at specific intervals Usually annually or semiannually Period may begin with employee’s date of hire All employees may be evaluated at same time 7

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Multiperson Graphic Rating Scales Critical Incidents Written Essay BARS Performance Review Methods 360-Degree Review MBO

Appraisal categories and types:

Appraisal categories and types Comparative Ranking (Simple, alternation) Forced distribution Paired comparison Attribute Graphic rating scale Behavioral Critical incidents BARS BOS Results MBO Quality 9

Methods of Performance Appraisal:- :

Methods of Performance Appraisal:-

Problems in Performance Appraisal:

Problems in Performance Appraisal Lack of objectivity Halo error Leniency/strictness Central tendency Recent behavior bias Personal bias Manipulating the evaluation 11

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Straight ranking method: Oldest and simplest Compared with other individuals separates most efficient from least efficient Man to man comparison method: Certain factors – leadership, dependability, initiative etc Scale for each factor Used in job evaluation

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Grading method: Certain features – marked acc to scale Like analytical ability, cooperativeness, dependability, self expression, job knowledge, judgment, leadership, organizing ability, etc A – outstanding B – very good C – good D – average E – below average F – very poor Grade is allotted to the employee that describes his performance

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Rating scales :- Most commonly used Consists of several numerical values A printed form Two factors – employee characteristics - employee contributions

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Forced distribution method: Simple to understand and easy to apply in organization Job performance and promotability Placed bet 2 extremes of good and bad performances 10% - top end of the scale (outstanding merit) 20% - good rating (above average) 40% - satisfactory (average) 20% - fair 10% - unsatisfactory (below average or poor)

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Checklists:- Statements of traits of a job and are recorded in columns along with remarks a ‘Yes’ column and a ‘No’ column Not evaluation…a report Expensive and time consuming

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Critical incidents method:- Focus on certain behavior of an employee that identify the differences between effective and non-effective performance of a job Objective method A written record of events Ranked in order of frequency and importance Close supervision is required

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Group appraisal method: By an appraisal group Thorough and simple But time consuming Field review method: For large organization

Modern methods of evaluation:

Modern methods of evaluation Appraisal by results or management by objectives (MBO) Superior and subordinate managers of an organization – identify common goals - define individual’s major areas of responsibility Frequent feedback and interactions Effective technique Combination of new ideas and experience

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2. Assessment centre method: Many evaluators judge the employee performance in several situations with the use of a variety of criteria Assessments are made to determine employee potential for the purpose of promotion Done with the help of a couple of employees Involves a paper and pencil test, interviews and situational exercise Measures interpersonal skills and other aspects such as organizing and planning, interpersonal competence, quality of thinking, resistance to stress, motivation to work and dependence on others

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3. Human asset accounting method: not very popular 4. Behavioral anchored rating scale (BARS): new technique – 5 steps Generate critical incidents Develop performance dimensions Reallocate incidents Scale of incidents Develop final instrument More time consuming and expensive…..yet more accurate

If Performance Falls Short:

If Performance Falls Short Train Discipline Coach Out the Door

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