Performance Appraisal Action
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Transcript of Performance Appraisal Action
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PERFORMANCEAPPRAISAL(An Action System )
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What is Performance Appraisal?
Performance appraisal, is a method by which the job performance of anemployee is evaluated (generally in terms of quality, quantity, cost andtime).
Performance appraisals are an indispensable part of performancemeasurement.
To measure the performance of the employees and the organization tocheck the progress towards the desired goals and aims.
Self-appraisal & potential appraisal also form a part of the performanceappraisal processes.
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PERFORMANCE APPRAISAL
PromotionDemotionTransfer Training
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Objectives
Objectivesof
Performanceappraisal
ImprovePerformance
Organization's
Employees
Increase motivation &productivity
Enhance Transparency Establish Meritocracy Retain top talent Increase Commitment Improve collaboration Ensure accountability &
ownership Excellence and success
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Importance of PerformanceAppraisal
To review the performance of the emp over a givenperiod of time
To judge the gap b/w the actual & the desiredperformance
Provide information to assist in the HR decisionslike - promotions, transfers etc
Provide clarity of the expectations &responsibilities of the functions to be performed bythe emp
To judge the effectiveness of the other HRfunctions of the org such as - recruitment,selection, training & development
To diagnose the training and development needs ofthe future.
To reduce the grievances of employees.
Helps to strengthen the relationship &communication b/w superior subordinates & mgt
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Process of PerformanceAppraisal
Establishing performancestandards
Communicating the standards
Measuring the actualperformance
Comparing the actual withdesired performance
Discussing results
Decision making
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Performance Appraisal(SMART)
Specific
MeasurableAttainable
Relevant
Trackable
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Methods of PerformanceAppraisal
PA is broadly classified into 2 categories
1. Traditional Methods: Are relatively older methods ofperformance appraisal. These methods are based on studying thepersonal qualities of the employees. These may include knowledge,initiative, loyalty, leadership and judgment.
2. Modern Methods: Modern methods were devised to improveupon the traditional methods. Modern methods attempted to removethe shortcomings of the old methods such as subjectivity, bias etc.
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Methods of PerformanceAppraisal
RatingMethods
Checklists
GraphicRatingScale
ComparativeMethods
StraightRanking
PairedComparison
Grading
ForcedDistribution
ForcedChoice
NarrativeMethods
CriticalIncidents
Essay
FieldReview
ConfidentialReports
BehavioralMethods
MBO
BARS
HumanResource
Accounting
AssessmentCenters
360 Degree
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Rating Errors in PerformanceAppraisal
Halo Effect:Horn Effect:Recency biasContrast effectPersonal bias
Same as MeDifferent from meFirst impressionSpill over EffectStatus EffectStrict RatingLenient RatingStereotypingSelf fulfilling Prophecy
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Challenges of PerformanceAppraisal
Determining the evaluation criteria
Creating a rating instrument
Lack of competence
Errors in rating & evaluation
Resistance
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Reasons for PerformanceAppraisal Failure
Appraiser Lacks Information
Lack of Appraisal skills
Appraiser unserious about appraisals
Appraiser unprepared and uses unclear language
Employee Unreceptive to feedback
Appraisers personal biases and prejudices
Ineffective discussion of employee development
Insufficient rewards for performance
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Current Global Trends InPerformance Appraisal
Performance related pay is being incorporated in thestrategies used by the organizations .
Performance measuring, rating and review systems havebecome more detailed, structured and person specific thanbefore.
Trend towards a 360-degree and 720-degree feedbacksystem. The problems in the implementation of the performance
appraisal processes are being anticipated and efforts arebeing made to overcome them.
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VisionObjectives and
goals of theorganization
Value DriversStrategicperformancedimensions
Measures andEvaluation
Measures to ensurecontinuous improvementto encourage excellence
Action PlanDescription of
actions requiredto achieve thedesired results
Balanced ScorecardIdentification of the
performance criteriato manage and
achieve the vision
PerformanceAppraisal in theorganization of
future
Performance Appraisal in FutureOrganization
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CASE STUDYON COCA COLA
INTRODUCTION:
Coca-Cola's turnover in India has come after a period ofheavy investments
In 2003, Coca-Cola had 17 manufacturing units, 60distribution centers catering to 5,000 distributors and onemillion retail outlets, serviced via trucks and three-wheelers. Coca-Cola directly employed 10,000 people
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WHAT HAPPENED?
Coco colas competitor Pepsi had entered theIndian market and had already had a share of
about 25%
Coca-Cola decided to buy out a local soft drink
company, Parle, which had a 60% market share
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Where was the problem?
1. It focused on establishing the Coke brand quickly,positioning it as an international brand and notemphasizing local association. Neglect of Parle brandsled to their decline in market share
2. The operations of the small bottlers acquired fromParle system were inefficient and increased costs
3. Bottlers also had problems adjusting to Coca-Cola'swork culture
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What happened next??? Instability at the top also created problems for
Coca-Cola
Coca-Cola seemed to fritter away the jump-start itgot from the Parle acquisition
It received reports of gross violation ofdiscounting terms and credit policies and dubiouscash management practices
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As a result.
The findings were followed by a detailed performance appraisal, which ledto the resignation of 70 managers during the period, July-November 2000
After, adopting Performance Appraisal System following changes weremade in the organization:
1. The top management decided to provide necessary training to theemployees so that they can adapt to the new culture .
2. The company focussed on hiring new managers to compensate for loss ofmanpower due to resignation and making the recruitment and selectionprocess more effective .
3. The top management decided to make performance appraisal an integralpart of performance management.
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Conclusion
People differ in their abilities and their aptitudes. There isalways some difference between the quality and quantity ofsame work on the same job being done by two different
people. Therefore, performance management andperformance appraisal is necessary to understand eachemployees abilities, competencies and relative merit &worth for the organization so that the org can move in theright direction through excellence in performance andcommitment of employees.
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References http://www.naukrihub.com/
http://www.google.co.in/
http://www.citehr.com/
http://www.icmrindia.org/
http://www.princeton.edu/hr/manager/perfforms.htm
http://appraisals.naukrihub.com/performance-appraisal-approaches.html
http://appraisals.naukrihub.com/definition-concept.html
http://appraisals.naukrihub.com/modern-method.html
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THANK YOU