Professional Documents
Culture Documents
Index
About Performance appraisal
Definition Meaning Objectives
Definitions
According to Newstrom, It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance.
Meaning
Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A Performance appraisal is a process of evaluating an
Aims at:
Personal development work satisfaction involvement in the organization.
mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness
Process
Setting performance standards
Communicating standards
Discussing results
Measuring standards
Comparing standards
Modern Methods
1. Assessment Center 2. Cost Accounting method 3. Behaviorally Anchored
Rating scales
4. 360 appraisal
Traditional methods
Paired comparison
This is a method of comparison
Decisiveness
0
Slow to take decisions
5
Take decisions after careful consideration
15
Take decisions in consultation with others whose views he values
20
Take decisions without consultation
The
of
checklists
rater
the
is
given
of
a
the The
of the employees.
Always regular Inform in advance for delay Never regular Remain absent
Critical incidents:
In 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.
Workers A B C D
Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance
scale 5 4 3 2
Confidential report:
It is mostly used in government organizations. A descriptive report prepared by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate. The impressions of the superior about the subordinate are merely recorded and kept confidential without revealing the facts.
Technical skills
Motivation
^
^
^
^
^
^
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.
Modern methods
Assessment centre :
This typically involves the use of
methods
events,
like
tests
social/informal
and exercises, given to a
judged
in
terms
The
of
cost
cost like
and
of their
assignments
being
competencies
assessment interpersonal capabilities,
.The
centres skills,
major
are
compensation,
costs,
recruitment
induction the
and
and total
BARS:
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 or sets of behavioral statements describing important job
360 Appraisal:
This is also known as 'multirater feedback', 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.
performance qualities as good or bad (for e.g.. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). In this method, an employees actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS.
Performance
Extremely good
Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor.
6 5 4 3
Poor
Extremely poor 1
These companies are using 360 Degree Performance Appraisal Method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)
Advantages
Provides a record of performance over a period of time. Provides an opportunity for a manager to meet & discuss performance. Provides the employee with feedback about their performance. Provides an opportunity for an employee to discuss issues and to clarify expectations . Motivates the employees by providing good rewards and compensation based on their performance.
Disadvantages
If not done appropriately, can be a negative experience.