Accenture Performance Appraisal

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Performance Appraisal At ACCENTURE 1

Transcript of Accenture Performance Appraisal

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Performance Appraisal

At

ACCENTURE

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ACKNOWLEDGEMENT

I feel great pleasure to submit this project as the culmination of my efforts.

I gratefully acknowledge the guidance, help and valuable suggestions received from Prof.

Subhash Gupta. He has been a constant guiding force and source of illumination for me. I would

like to thanks him for valuable advice and guidance. I would also take the privilege to thank

RUPA KUMAR (HR PERSON), Accenture- branch Chennai.

Lastly, I sum up by thanking my friend VIBHORE MITTAL, SOFTWARE ENGINEER who

provided me with his constant support and information without which this endeavor would not

have been a success.

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CONTENTS

Sl. No Particulars Pg.No

1 Accenture 4

2 Performance Appraisal 7

3 Process 8

4 Prerequisites 10

5 challenges 11

6 purpose 11

7 methods 13

8 appraisal form 20

9 analysis of appraisal form 26

10 Benefits 30

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ACCENTURE

Mission: To help our clients become high-performance businesses and governments.

            

Vision: To become one of the world's leading companies, bringing innovations to improve the way the world works and lives.

COMPANY DESCRIPTION

Accenture is a global management consulting, technology services and outsourcing company, committed to delivering innovation

Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With more than 186,000 people serving clients in over 120 countries, the company generated net revenues of US$23.39 billion for the fiscal year ended Aug. 31, 2008.

Our "high performance business" strategy builds on our expertise in consulting, technology and outsourcing to help clients perform at the highest levels so they can create sustainable value for their customers and shareholders. Using our industry knowledge, service-offering expertise and technology capabilities, we identify new business and technology trends and develop solutions to help clients around the world:

Enter new markets. Increase revenues in existing markets.

Improve operational performance.

Deliver their products and services more effectively and efficiently.

We have extensive relationships with the world's leading companies and governments and work with organizations of all sizes—including 96 of the Fortune Global 100 and more than three quarters of the Fortune Global 500. Our commitment to client satisfaction strengthens and

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extends our relationships. For example, of our top 100 clients in fiscal year 2008, based on revenue, 99 have been clients for at least five years and 87 have been clients for at least 10 years.

Among the many strengths that distinguish Accenture in the marketplace are their:

Extensive industry expertise. Broad and evolving service offerings.

Expertise in business transformation outsourcing.

History of technology innovation and implementation, including our research and development capabilities, on which we spend approximately $300 million annually.

Commitment to the long-term development of our employees.

Proven and experienced management team.

Our Core Values have shaped the culture and defined the character of our company, guiding how we behave and make decisions:

Stewardship: Building a heritage for future generations, acting with an owner mentality, developing people everywhere we are, and meeting our commitments to all internal and external stakeholders.

Best People: Attracting and developing the best talent for our business, stretching our people and developing a "can do" attitude.

Client Value Creation: Improving our clients' business performance, creating long-term, win-win relationships and focusing on execution excellence.

One Global Network: Mobilizing the power of teaming to deliver consistently exceptional service to our clients anywhere in the world.

Respect for the Individual: Valuing diversity, ensuring an interesting and inclusive environment, and treating people as we would like to be treated ourselves.

Integrity: Inspiring trust by taking responsibility, acting ethically, and encouraging honest and open debate.

By enhancing our consulting and outsourcing expertise with alliances and other capabilities, we help move clients forward in every part of their businesses, from strategic planning to day-to-day operations. With more than 186,000 people in 52 countries, deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance.

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CORE VALUES OF ACCENTURE

Since its inception, Accenture has been governed by its core values. They shape the culture and define the character of our company. They guide how we behave and make decisions. 

"Through the years these simple, yet powerful values have continually guided our decision making as well as our interactions with our clients and each other." —William D. Green, Chairman & CEO, Accenture

StewardshipBuilding a heritage for future generations, acting with an owner mentality, developing people everywhere we are and meeting our commitments to all internal and external stakeholders.

Best PeopleAttracting and developing the best talent

for our business, stretching our people and developing a "can do" attitude.

Client Value CreationImproving our clients' business performance, creating long-term, win-win relationships and focusing on execution excellence.

One Global Network

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Mobilizing the power of teaming to deliver consistently exceptional service to our

clients anywhere in the world.

Respect for the Individual Valuing diversity, ensuring an interesting and inclusive environment and treating people as we would like to be treated ourselves.

IntegrityInspiring trust by taking responsibility, acting

ethically and encouraging honest and open debate.

PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

PROCESS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and

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objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees

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work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

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 the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

PREREQUISITES OF PERFORMANCE APPRAISAL

The essentials of an effective performance system are as follows:

Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.

Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information.

Evaluation technique – An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee.

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Communication – Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process.

Feedback – The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance.

Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

CHALLENGES OF PERFORMANCE APPRAISAL

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are: Determining the evaluation criteriaIdentification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

Create a rating instrument The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.

Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees

Resistance

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The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

 PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90%of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram below:

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The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80%

Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support, assistance and counseling)

PERFORMANCE APPRAISAL AS CAREER DEVELOPMENT

Performance appraisal is a part of career development. The latest mantra being followed by organizations across the world being – “get paid according to what you contribute” – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. Performance appraisal leads to the recognition of the work done by the employees, many a times by the means of rewards and appreciation etc. It plays the role of the link between the organization and the employees’ personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents and potential of

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the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses.

 

PERFORMANCE APPRAISAL APPROACHES

Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees.

This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees’ training needs, career development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization.

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The modern approach to Performance appraisal is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.

 

METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL

TRADITIONAL APPROACH

1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

CRITICAL INCIDENTS METHODSIn this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

FIELD REVIEWIn this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

CHECKLIST METHODThe rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

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GRAPHIC RATING SCALEIn this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

FORCED DISTRIBUTIONTo eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

MORDERN METHOD

ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.

Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments. Assessment centers simulate the employee’s on-the-job environment and facilitate the assessment of their on-the-job performance.

An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies and on-the-job behaviour and potential to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

An assessment centre for Performance appraisal of an employee typically includes:

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Social/Informal Events – An assessment centre has a group of participants and also a few assessors which gives a chance to the employees to socialize with a variety of people and also to share information and know more about the organization.

Information Sessions – information sessions are also a part of the assessment centres. They provide information to the employees about the organization, their roles and responsibilities, the activities and the procedures etc.

Assignments- assignments in assessment centres include various tests and exercises which are specially designed to assess the competencies and the potential of the employees. These include various interviews, psychometric tests, management games etc. all these assignments are focused at the target job.

The following are the common features of all assessment centres:

The final results is based on the pass/fail criteria

All the activities are carried out to fill the targeted job.

Each session lasts from 1 to 5 days.

The results are based on the assessment of the assessors with less emphasis on self-assessment

Immediate review or feedback is not provided to the employees.

An organization’s human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance

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or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

360 PERFORMANCE APPRAISAL

It is also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal2. Superior’s appraisal3. Subordinate’s appraisal4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance.

Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc.

Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to

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work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

MANAGEMENT BY OBJECTIVE

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Ducker in 1954. It can

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be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to

be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

SpecificMeasurableAchievableRealistic, andTime bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

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Here is the form of performance appraisal which is filled by all of the employees at Accenture. it is a general form for everyone no matter what is the designation of the employee. It is an online form.

vibhore.mittal

Reviewer:

Degree of Exposure:

Customer/Client:

Start Date:

Performance Period:

Value Creator

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Contribution Ratings

 

Performance Factors

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Strengths

General Feedback

 

There is a formal review against objectives each year (May/June). As part of this meeting, the individual’s performance appraisal (Contract for success) is updated and objectives for the following year are set. During these meetings, the individual also gives feedback to their manager.

Informal reviews should also be conducted during the year: after major projects/milestones or at the very least after 6 months (new comers will have reviews at 30 & 90 days)

Conducted on a regularly scheduled basis such as yearly performance reviews. Involves one-on-one communication between a manager and the team member being

assessed. Serves the purpose of pinpointing strengths and weaknesses and developing an action plan for

continuous improvement.

Utilizes techniques for identifying a problem and implementing an improvement

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In the appraisal form above-the employee will fill the form online. He will first create the object by clicking the button “create objective”. and the appraisal form will be displayed.

It has five sections-Value creator, People developer and Business operator, contribution rating, performance factor.

The first three are related to the project work and the later two are related to the relations with the team members, how the employee co-ordinate with the team members, their project manager, peers etc and his performance.

Under these three heads the targets and objectives which they are required to meet will already be their supervisor. after meeting those targets and fulfilling those objectives the employee will fill their self input regarding objectives and target. And then they will send the form.

This form will be send to four people-Supervisor (Madhan Mahalingam), career counselor (Augastine), the project manager (D.Krishnakumar) and the HR person(Rupa Kumar).

They will discuss the appraisal form among themselves and a feedback will be send back to the employee.

In this feedback supervisor gives his reviews under the reviewer comment section. also he will tell about the employee’s strengths and area of development in the section strengths and area for development.

And a general feedback is also given in last under the section of general feedback

If the employee is satisfied with the feedback then he can accept the form by clicking on accept and if he is not satisfied it the feedback then he can reject the form.

Then the meeting will be held between the employee and the above four people.

Objective setting

What is the purpose of objective setting? To ensure that individuals understand their role and responsibilities (and how it fits into the

wider WEF organization) Transparency of expectations between an individual and their manager

How should objectives be set? Objectives should be mutually agreed between an individual and his or her manager. Focus on quality and on results - not activity

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Ensure a balanced perspective – reflect all aspects of the job (e.g. # of participants at a summit, satisfaction of team members being managed, # of new relationships in x industry formed)

Reinforce desired behaviors & WEF culture Prioritize - limit number to key objectives Provide reasonable challenge to the individual

What are the most important guidelines for giving performance feedback?

Base feedback on fact, not on what seems to be the case through rumour or perception

Relate all feedback to specific items of behaviour

Focus the discussion on the feedback areas which will provide most value to the individual and which are most important; avoid feedback overload

Aim to give a mixture of positive feedback on things the individual has done well, as well as constructive feedback on areas for improvement; start and end with positive messages (called the ‘praise sandwich’ approach)

Facilitate the individual in reaching his own conclusions, rather than offering prescriptive statements.

It’s not uncommon for both managers and employees to believe that performance assessments should be used to justify salary increases. Actually, many HR experts urge separating the timing of appraisals from when salary reviews are conducted by as much as three months. This way, employees won’t think in terms of how their rating translates into dollars; they’ll be able, instead, to focus on the specific observations of their appraiser.

When an employee disagrees with something written on the performance appraisal

Listen to determine the source of the disagreement. Is it a matter of fact? (You wrote that the employee received a customer satisfaction score of seventy-nine, but the employee says that his score was eighty-three.) Or is it a matter of judgment? (You wrote that the employee's customer service skills were unsatisfactory, but she feels that her skills are terrific.) If it's an issue of fact, get the facts and make any corrections necessary. If it's a matter of judgment, ask the employee for additional evidence. Then determine whether that evidence is sufficient to cause you to revise your judgment. It rarely is.

Most of the time, the appraiser has a reasonably good understanding of the areas where disagreements are likely to pop up in the course of the appraisal discussion. Before beginning the

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appraisal discussion, ask yourself, "What am I going to say when George disagrees that his performance on the Lumumba project just barely met expectations?"

Start with your higher ratings and move toward the lower ones. Be prepared to give additional examples besides the ones you've included on the formal written appraisal. Refer back to the informal conversations you have had with the individual over the course of the year.

Use active listening as soon as a disagreement pops up. For example, phrases such as "Tell me more…" or "What else can you share with me about that?" or "Really?" can encourage people to talk more about their perceptions. Simply nodding without saying anything at all encourages people to expand on what they have said. It's not at all unlikely that the employee, allowed a sufficient chance to think aloud about what you have written, will end up saying, "Yeah, I guess I see what you mean."

Remember what your objective in the discussion is—and what it isn't. Your objective in a performance appraisal discussion is not to gain agreement. It is to gain understanding. If the employee agrees with you, that's great. But particularly if your appraisal is a tough-minded assessment of the fact the Charlie's contribution was only mediocre, it's unlikely that you'll ever get him to agree. What you want is for him to understand why you evaluated his performance the way you did, even if his personal opinion is different.

When an employee refuses to sign the performance appraisal document and refuses to provide his own comments

It's unusual for someone to refuse to sign the form and refuse to put any comments in the section earmarked for them.

Start by asking why, and explain the purpose for the signature: "I'm surprised, George, that you are refusing to sign the form and also refusing to indicate any reason in the space set aside for your comments. As I explained, the purpose of asking for your signature is not to indicate that you agree with what I have written, but simply to show that you have seen this document and that you and I have talked about your performance. We have just done that, and I'd like you to acknowledge it. Can you tell me why you don't want to sign the form?"

If George offers no meaningful reason and continues to refuse, it's appropriate to remind him that the decision not to sign and not to put down any comments, like all of the other decisions one makes in life, will have consequences. "Frankly, George, I'm disappointed in your decision. You know that your performance is not acceptable and your refusal to follow a standard company policy only makes things worse. It's difficult for me to justify your being a member of our team if you refuse to follow reasonable company expectations.

Dealing with employees like this one is frustrating. One manager wrote:

Shouldn't every employer have as a policy that an employee's failure to sign and accept his/her review is unacceptable and can be grounds for termination? The employee can write his/her own comments on the form and express disagreement, but at the end of the day, it seems to me they

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need to accept the manager's assessment, move on, and work on the areas that need improvement. If there isn't a willingness to do that, isn't it just a waste of time to continue the employment relationship? One could probably go through the motions over the next six to twelve months and eventually fire the person for poor performance, but why drag it out that long when it's apparent the person just doesn't get it?

A negative relationship between locus of control and self-appraisal is predicted

Individuals who believe that they are determining their own behavior are less likely to evaluate their behavior negatively since it would reflect badly on them. On the other hand, those who do not believe that they determine their own behavior are more likely to perceive their behavior as negative (since it was out of their control anyway and they do not perceive that it reflects on them). This explanation is related to the self-serving bias which predicts that individuals are more likely to take credit for an apparent success than they are for an apparent failure.

participants should be more likely to view behavior as a success if they also view behavior as typically under their control.

One positive point of this appraisal form is-

Job description and performance appraisal correlate as here the objectives and tasks are set and

written by the supervisor and then the appraisal form is transferred to employee. It helps in

Establishing and maintaining a direct relationship between the job description and

the performance-appraisal form helps keep them and their employees focused on the same set of

job expectations throughout the performance-appraisal process. 

BENEFITS AN USES FOR MANAGERS

Let’s start with how performance appraisals benefit managers. First, they will be able to make the best use of their’s employees’ abilities by becoming more aware of each person’s strengths and areas requiring improvement. Second, they can isolate a typical employee behavior and performance; that is, they can identify outstanding performers and provide them with additional incentives and more challenging work assignments. They can also spot marginal performers and give them greater guidance and direction. Third, performance appraisals help them become introspective and determine whether they are doing their job as a manager: They Ask themselves: Am I available for questions? Am I clear in my expectations? The answers to these and other questions will improve overall employer-employee relations. Finally, once employee

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skill levels are properly identified and they have determined whether they are functioning effectively as a manager, they can focus more fully on developing their own career goals.

BENEFITS AND USES FOR EMPLOYEES

During the review process, managers typically clarify areas of responsibilities. These benefits employees by ensuring a mutual understanding of the scope and nature of their job, negating the likelihood of hearing them say, “I didn’t know I was expected to do that!” Employees also learn how well they have been performing in relation to their areas of responsibility. This can lead to a discussion of helpful training opportunities, as well as a dialogue about future goals and career development. The performance-appraisal process additionally affords employees a chance to express openly their views and concerns about anything work-related.

BENEFITS AND USES FOR ORGANIZATION

Performance-appraisal systems can help protect organizations against discrimination allegations by providing an element of consistency; that is, ensuring that all similarly classified employees are evaluated based on the same criteria. In addition, performance appraisals reveal employee aspirations and career-development plans, thereby allowing organizations to determine whether there is sufficient alignment between their strategic goals and employee goals. Furthermore, data are furnished to help establish equitable and competitive salary-administration programs. Future training and development needs are also identified.

The most effective performance-appraisal programs are those that are beneficial to managers, employees, and the organization as a whole.

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