Unit 5 Performance Management

7/31/2019 Unit 5 Performance Management

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LOKINDER KUMAR TYAGI

ASSOCIATE PROFESSOR

BHARATI VIDYAPEETH INSTITUTE OF

MANAGEMENT & RESEARCH,

NEW DELHI.


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Performance Management:

Performance Appraisal Process,

Methods of Performance Appraisal,

Job Evaluation Methods,

Compensation, Components, Factors

affecting remuneration, incentive

and performance based payment,managing separation.


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Performance Appraisal is a method of

evaluating the behaviour of employees in

workplace including quantitative and

qualitative aspects of job performance. It is a systematic and objective way of

evaluating both work related behaviour and

potential of employees.

It is a process that involve determining andcommunicating to an employee how he or

she is performing the job and ideally

establishing a plan for improvement.


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Establish Performance Standards

Communicate the performance

standards

Measure Actual Performance

Compare actual performance with

standards

Discuss the appraisal

Taking corrective action, if

necessary.


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Performance Appraisal Methods (K.

Ashwasthapa) have been divided into two

categories i.e.

Future Oriented (To rate employees from theirpotential point of view to utilize them properly

for future performance goals)

Past Oriented (To rate the past performance of

employees)


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1. Rating Scales

2. Check list

3. Forced Choice Method

4. Forced Distribution Method

5. Critical Incidents Method

6. Behaviourally Anchored Rating Scales

7. Field Review Method

8. Confidential Report

9. Performance Tests & Observations

10. Essay Methods

11. Ranking Methods

12. Paired-Comparison Methods


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Checklist of statements on the traits of

employees and his/her job is prepared in two

column: YES and NO. i.e.

Is employee really interested in job? Yes No Does he/she possess knowledge about job? Y N

Does he/she cooperate with workers? Yes NO

Does he/she obey orders? YES NO

Does he/she complete in time? YES NOSupervisor should tick the Yes or NO column to

evaluate the performance of employee(s).


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In this Method Rater is forced to select

statements which are readymade i.e.

Learns fast .. Works hard

Work is reliable performance is good i.e. Absents often .. Others usually tardy

The advantage of this methods is absence of

personal bias in rating.

The disadvantage of this method is Statementmay not be properly framed they may not

be precisely descriptive of the ratees traits.


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Forced Distribution Methods operates under

an assumption that employee performance

level conforms (Obey) to a normal statically

distribution i.e. following performancedistribution is assumed 10 % excellent, 20%

good, 40% average, 30% below average.

Weakness of this methods lies in unrealistic

assumption. Destructive to employeesmorale

Strength: Eliminate the error of leniency.

Good in large number of employees.


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Critical Incidents Performance appraisal

Method reflects the performance of the

concerned employees in a given

situation/circumstances at work place. Suchincidents are recorded by the Management

when they occur and reactions of the

Employees are recorded for future reference

and improvement.


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In BARS, the Performance Behaviour

(attitude, initiative, Habits, Dealings) of

employees are evaluated or rated on scale

points to determined the effective andineffective.

1 Below Average

2 Average

3 Above Average 4. Good

5 Excellent


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The field review method is an appraisal by

someone outside the assessees own

department, usually from corporate office or

HR Department. Generally method is usedfor making promotional decision at

managerial level.


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Confidential Reports or ACRs are maintained

in Govt. Departments. A Typical ACR

generally have items: Attendance, Self-

expression (Written or oral), Ability to work

with others, Leadership, Initiative, Technical

ability (Job Knowledge), Originality &

Resourcefulness, Judgments, Integrity,

Responsibility, etc. These may be rated or

judged on 4 point grade scale i.e. excellent

good, fair and poor.


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Rater describe the employees within a

numlber of broad categories such as

i) Raters overall impression about

employee Ii) Promotability of the employee.

Iii) About job that employee is now able to

perform

Iv) Strengths and weakness of employees

V) Training & Development assistance

required by the employees.


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Employee is assessed based on a test of

knowledge or skills. The test may be of the

paper and pencil variety or an actual

demonstration of skills.

Employees performance is also evaluated by

observing him/her while working or behaving

at work place.


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Management by Objectives (Performance

Targets are decided by both Supervisor and

Workers and performance is evaluated from

time to time keeping in view of objectives)

Psychological Appraisal (Industrial

Psychologist are employed for conducting

appraisal. Appraisal is done through in-depth

Interviews, Psychological tests, discussionswith supervisors and a review of other

evaluations)


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360 Degree Feed Back: This technique is

understood as systematic collection of

performance data on an individual lor group,

derived from a number of stakeholders i.e.

immediate supervisors, team members,

customers, peers and self.

Unit 5 Performance Management

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