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&Performance ManagementAppraisal
,eam memberseorge MathewANISH SONIoseph Georgeyoti Jainagini C SEKHARowmya Ranjanyed AlitejASWINI
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CONTENTS
Introduction Performance Measures & Appraisal
System
Objectives of PerformanceManagement System & Appraisal
The Appraisal Process
The Appraisers
Performance Appraisal Methods
The Appraisal Interview
Pitfalls in Performance Appraisal
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INTRODUCTION
A formal definition of performance appraisal is:
It is the systematic evaluation of theindividual with respect to his or her
performance on the job and his or herpotential for development.
OR
Performance Appraisal (PA) refers to all thoseprocedure that are used to evaluate thepersonality, the performance, and thepotential of its group member.
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PA are of two types 1.)
Formal 2.) Informal.
PA is used for basically three purposes
Remedial, Maintenance, and Development.
PA systems provides management an
opportunity to recall as well as feedbackto employees.
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Formal performance appraisal
It occurs usually annually on formalizedbasis that involves appraise &appraiser in finding answer toquestions like:
What performance was set to achieveduring the period?
Has it been achieved & how will we know
that we have done it? What assistance can be expected to
improve performance?
What rewards & opportunities are likely
to follow from the performance
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Informal performance appraisal
Informal performance appraisal is acontinuous process of feeding backinformation to the subordinatesabout how well they are
doing their work in the organization
Conducted on day to day basis
Informal appraisal quickly encouragesdesirable performance & discouragesundesirable performance.
It is an integral part of the
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Key Elements
EmployeeEmployeeFeedbackFeedback
EmployeeEmployee&Records &Records
HR DecisionsHR Decisions
HumanHumanPerformancePerformance
Performancerformance &easures &easuresCriteriariteria
PerformancePerformanceAppraisalAppraisalInterviewInterview
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PerformanceMeasures
IndirectIndirect
ObjectiveObjective
Rater must evaluate substitutes( )for performance constructs
Verifiable by others Usually quantitative
SubjectiveSubjective Not verifiable by others Usually rater s personal opinions
DirectDirect Rater actually sees the
employee s performance
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-Jo b re la te dSystem evaluates critical behaviors
that constitute job success
Practical
Understood and relatively simplePerformance standards
Related to the desired results ofeach job
Performance measuresReports on critical behaviors
Appraisal Systems
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OBJECTIVES OF PERFORMANCEAPPRAISAL
Setting targets and goals asperformance standards.
To identify individuals with high
potentials Evaluating & enhancing employees
effectiveness
Identifying employees training &development needs
To Rewarding Performance
Improving Performance &
Communication
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B y m a kin g e ffe ctiv e u se o f P e rfo rm a n ce,a p p ra isa l sy ste m a n o rg a n iza tio n m a y
.seek to Im p ro ve p ro d u ctiv ity C re a te a p o sitive w o rk e n viro n m e n t
&S tim u la te re co g n ize re w a rda ch ie ve m e n ts
Provide objective measures of performance Furnish information for other HR sub
systems
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Relationship between job analysis and:performance appraisal
ob analysis PerformancePerformancetandards appraisal
Describes work& Personnel
RequirementOf a particular
job
Translate jobInto levels of
acceptableOr
unacceptableperformance
DescribestheJob relevant
strengthsand
weakness ofEach
individual
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Who are the Raters
A p p ra isee
Possible in organizations whereself appraisal is an important
component Help the employee to review and
control his own performance
Superior..
Immediate superior would rate theperformance of the subordinates
Subordinates He will rate the performance of
(superior students will evaluate)the faculty
Peers
Colleagues will rate each,others performance
particularly where team
work matters more
/Clients usersIn service e oriented organiza
Consultants
Outside consultants may beinvolved in ratingemployees
Top management
Who report directly to them
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Low High
High
Low
WorkHorses
Stars
Deadwood
Problemchildren
Performance
Potential
What to evaluate? (PhilipModel)
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Stars are the people with high potentialand high performance therefore they lead
the organizations.
Work Horses perform highly but normallyit is due to threat or pressure since their
potential is limited.
Problem Children are those people whohave immense potential but this is not
properly channelized into performance forbetter development.
Dead Woodis that kind of people whoneither have potential nor are able to
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Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose
teps in performance appraisal
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rocess of PA
ettingperformancestandardsakingcorrectivestandards
Discussingresults
omparingstandards
Measuringstandards
Communicatingstandards
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erformance Appraisal Methods Point allocation method Essay evaluation Critical incidents
Checklists Graphic rating scale
Ranking methods
Forced distribution Behaviorally anchored rating scale
360 degree performance appraisal
Balanced scorecard
Traditiona
l methods
Modernmethods
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Point allocation method
The appraiser has to allocate points todifferent members in his team
A specific number of point which isdistribute to the members are based ontheir performance during the appraisalperiod
Best performer gets the highest score andthe last one gets the least.
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Essay Evaluation
The appraiser prepares a documentdescribing the performance of theemployee
Questions or guidelines are provided to theappraiser, based on which he analyses anddescribes the employee performance
Appraiser can express all his views and clearit on the employees performance
The writing skills, or lack of it, of the appraiser
can make an inadequate performance seemto be ade uate.
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Critical Incident method
Workers reaction scale
A informed the supervisor immediately 5B Become anxious on loss of output 4C tried to repair the machine 3D Complained for poor maintenance 2E was happy to forced test 1
The appraiser makes a note of all the criticalincidents that reflect the performance of the
.employee during the appraisal period
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Checklist method
S im p le ch e ck list m e th o d W e ig h te d ch e ck listm e th od
Fo rce d ch o ice m e th o d :imple checklist methodIs employee regular /Y NIs employee respected by subordinate /Y NIs employee helpful /Y NDoes he follow instruction /Y NDoes he keep the equipment in order /Y N
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Weighted checklist method
w e ig h ts p e rfo rm a n cera tin g
( )scale 1 to 5R e g u la rity .0 5Lo y a lty .1 5
W illin g to h e lp .1 5
Q u a lity o f w o rk .1 5R e la tio n sh ip .2 0
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Forced choice method
C rite ria R a tin g
.1 R e g u la rity o n th e jo b Most Le a st A lw a y s re g u la r In fo rm in a d v a n ce fo r d e la y N e v e r re g u la r R em ain ab sen t N e ith e r re g u la r n o r irre g u la r
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Graphic Rating Scale
.xc Good Acceptable Fair Poor 5 4 3 2 _DependabilityInitiative
verall outputAttendanceAttitudeCooperation
otal score
The rater rates the employee on:factors like
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Ranking method
E m p lo y e e R a n k
A 2
B 1
C 3
D 5
E 4
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Forced Distribution method
%0 %0 %0 %0 %0poor Belowaverageaverage good Excellent
.ofemployees
orce distribution curve
Behaviorally anchored rating
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Behaviorally anchored rating{ }scale BARS
It concentrates on the behavioraltraits demonstrated by the employeeinstead of his actual performance.
.Step 1 Determine the relevant jobdimensions
.Step 2
Identify behavioral anchors
.Step 3 Determine the scale
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360 degree performance appraisal
Data/feedback/rating is collectedfrom all sections of employee
An employee is evaluated from all
the angles
Comprehensive.
Reduces subjectivity.
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Balanced scorecard
Channelizes the effort of theemployee.
HR score card.
Job assignment.
Online feedback is given.
COMP n BEN
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The Appraisal Interview
Self appraisal & self assessment.
Identification of training &development inputs.
Discusses with the supervisor. Future course of action.
Supervisor evaluates subordinates. Feedback to employee.
Training & development.
Draw an action plan.
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Challenges
The organizational culture
The maturity level of the individuals.
An apprehensive employee.
A wary appraiser.
A biased appraiser.
Inexperience.
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Dealing with challenges
Productive & constructivecontributor.
Dealing with inherent problems.
Setting specific measurable goals.
Training on process of PA interview.
Chance to reflect.
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.Pitfalls in performance appraisal
Halo effect: The appraiser allows asingle characteristics of the appraiseto dominate.
Leniency effect: Appraiser gives only+ve result
Stringency effect: Opposite of the above.
Regency effect: Occurs when the recentperformance of the appraiserdominates the appraisal.
Primacy effect: Beginning of thea raisal eriod dominates the
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..Pitfalls contd
Central tendency effect: Rating in themiddle of the scale.
Culture: Culture influences rater in a
particular way. Stereotyping: Potential error in
personality analysis.
Perceptual set: exception of theperformance level.
Fundamental attribution error:performance affected due to someexternal factors.
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Conclusion
Measures the qualitative &quantitative aspects of jobperformance.
To assess the past performance.
To identify training needs.
To set & agree on the future
objectives.
To facilitate the achievement of thesegoals.
Acts as an audit.
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Bibliography
vHuman resource management - Biswajeet Pattnayak
vHuman Resource Management -Gary Dessler
vEssentials of HRM & IndustrialRelations
-P.Subba Rao
vWIKIPEDIA
vGOOGLE
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Thanking you all...
Our special thanks to
Prof. PRADEEPfor his constant support & guidance.
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