Presentation on case study-06

Performance appraisal
Presented by:-
Sonali Raina
Sheetal Pandita
Meghna sharma
Shitanshu Sharma
Shankar Jha
 Case Overview
 AMBER pharmaceutical-manufacturing and
marketing company.
 Mr. Shah Vice-President marketing for the past
four years. (successful, ambitious overconfident
and Hardworking.)
 Set aggressive targets.
 Past five years scenario.
 60 MR and supervisors have left the company
due to dissatisfactory increment and promotion.
 On the whole great dissatisfaction and good
performers leaving the company.
 Problem Overview
 Mr. Shah is the Vice-president, Marketing and HR Department does
not exist at all.
 He is overconfident and he thinks he can hire fresher who are not
happy in their respective organizations.
 Non-bothered attitude of Mr. Shah.
 Problem of high employee-turnover.
 The strategy of hiring unhappy employees is disadvantageous as
their expectations will be higher in AMBER.
 Problem of communication gap between employees and head.
 There is no appraisal system in AMBER.
 No scheme of recognition of merit ,rewards, incentives and bonus.
 Problem of Herd-instinct- Star employees are leaving the
organizations, seeing the other employees are also leaving.
 Corrective actions
 Proper employee performance appraisal system.
 Development of individual for improved
performance on the job.
 Provide emotional security.
 Recognize results, accomplishments and
performance.
 Set objectives in line with job requirement.
 Mutual goal setting.
 Criteria for assessing performance.

 Quality: The degree to which an activity approaches

perfection.
 Quantity: The amount produced, expressed in monetary
terms.
 Timelessness: The degree to which an activity is done
timely.
 Cost-effectiveness: The degree to which the use of
resources is maximized for highest gains.
 Need for supervision: The degree to which the performer
can do work without supervision.
 Interpersonal impact: The degree to which a performer
promotes the feeling of self-esteem.
 Training: To improve skills and knowledge.
 MAIN PROBLEM
 HIGH ATTRITION RATE

CAUSE
 UNSATISFACTORY INCREMENTS AND
PROMOTIONS
 NEGLIGENCE OF VICE PRESIDENT
NEED TO ASSESS THE
PROBLEM
PROPER APPRAISAL
SYSTEM
The performance evaluation process.
Establish Performance standards

Communicate performance expectation to the employees.

Measure the actual performance.

Compare the actual performance with standards

Discuss the appraisal with the employees.

Initiate corrective actions if necessary.

 Basis of appraisal system
 Personal background.

 Nature of work

 Job performance and Personal qualification.

 Overall performance rating.

 Individual rating related to what is expected.
 Ranking among others at the same level doing similar
works.

 Recommended actions.
 Methods of appraisal system
 Traditional methods:
 Straight ranking method.
 Man-to-Man comparison method.
 Grading.
 Free-form essay method.

 Modern methods
 Assessment centre.
 Human asset accounting method.
 Behaviorally anchored rating method.
Training in the performance
appraisal.
Two level of training
 Assessee
 Why is performance appraisal important.
 How to respond to appraisal activity.
 Take the appraisal process as tool for self-
improvement.
 Assesor
 Avoid judgmental error.
 Avoid poor appraisal forms and
questionnaires.
 Training to motivate employee.
 Systematic conduct of employers.