Presented by:Nisha Goyal Rakesh Singh

Introduction

Purpose of Performance Appraisal

prerequisites for conducting performance Appraisal Basic Steps in a Performance Appraisal

Performance Appraisal and Competitive Advantage

Method of Appraisal Challenges of Performance Appraisal

Performance Appraisal in TCS

 Performance Appraisal is the systematic evaluation of

the individual with respect to his or her performance on the job and his or her potential for development. Strategic Performance Appraisal- employees evaluated by individual goals that are linked to overall organizational goals and objectives

 To effect promotions based on competence and

performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed.

 To let the employees know where they stand .

To improve communication.
Finally, performance appraisal can be used to

determine whether HR programmes such a selection, training, and transfers have been effective or not Broadly, performance appraisal serves four objectives developmental uses, administrative uses/decisions, organizational maintenance/objectives, and documentation purposes

 Documentation

Standards / Goals
Practical and simple format Evaluation technique

Communication
Feedback Personal Bias

 Calibration meetings- managers and supervisors

discuss performance ratings and come to a consensus on individual ratings Reinforces perceived importance of process Improves differentiation factor Workforce performance and learning goals identified, based on organizational objectives Day-to-Day feedback

 Manager as a coach instead of appraiser

Allows for future career planning and organizational

goal linkage Changing the employee perception of performance management Help employees set appropriate goals

 A manager performs the appraisal annually, based on

individual productivity stats The appraiser fills out a form which states the employees productivity and some subjective comments about behavior The appraisals main purpose is to determine raises and promotions

 An organizations core values include continuous

improvement of customer service. A goal is set during the PA process that involves reducing customer service complaints by 15% in the coming year. This is linked to organizational values and is measurable.
The manager establishes bi-monthly feedback

sessions, where employees and managers have a brief one-on-one conversation regarding current performance goals and standards related to the status of the organization at that specific point in time.

 Employees set their own goals

The core competencies are all tied into one of the five

pillars of excellence

Change in focus from past performance to forward-

focus and goal attainment Employees and managers now have an ongoing performance partnership Expectations adjusted and based on global corporate demands

 Conduct ongoing observations and measurements to

track performance Exchange ongoing feedback about performance Conduct a performance appraisal (sometimes called performance review) If performance meets desired performance standards, reward for performance

Improving Performance Strategy and Behavior Making correct decisions

Competitive Advantage

Values and Behavior Minimizing dissatisfaction and turnover

Ensuring Legal Compliance

Performance Appraisal Traditional Modern

Essay Appraisal Method Straight Ranking Method Paired Comparison Critical Incident Method Field Review Checklist Method Graphic Rating Scale Forced Distribution

Management By Objective 360 Degree Appraisal Assessment Center Behaviorally Anchored Rating Scale Human Resource Accounting

 Application of MBO in the field of performance

appraisal is a recent thinking. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

Four Steps in the MBO Process The first step is to establish the goals each subordinate is to attain. The second step involves setting the performance standard for the subordinates in a previously arranged time period. In the third step, the actual level of goal attainment is compared with the goals agreed upon. The final step involves establishing new goals and, possibly new strategies for goals not previously attained.

360 degree feedback

The combination of peer, subordinate, and self-review

 Sanctioned from the top

Involve employees / managers in developing appraisal

criteria / process
Train employees how to give feedback Inform employees of the process Pilot test in part of organization Reinforce goals of 360 appraisal

Revise process when necessary

 An assessment centre will have a standardized process

for evaluation of behavior using multiple inputs. Assessment centers serve three main human resources functions: Selection and promotion Diagnosis Development

Candidates participate in a series of exercises that simulate on- the job situations Trained assessors carefully observe and document the behaviors displayed by the participants. Each assessor observes each participant at least once Assessors individually write evaluation reports, documenting their observations of each participant's performance Assessors integrate the data through a consensus discussion process, led by the center administrator, who documents the ratings and decisions Each participant receives objective performance information from the administrator or one of the assessors

 Behaviorally Anchored Rating Scales (BARS) are

scales used to rate performance. BARS are normally presented vertically with scale points ranging from five to nine. Developing a BARS typically requires five steps: 1. Generate critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument

Indicate the appropriate level of performance on each factor: Quantity of work

Volume low & erratic Quality of work

Satisfactory steady volume

Volume above expectations

Results always accurate; model work Judgment

Results accurate and thorough

Results generally inaccurate and not thorough

Systematic, analytical, Good with complex problems

Practical judgment, solves problems, difficulty with assessing relative value of factors

Does not always show good judgment; problem analysis not always adequate

 In 720 degree appraisal, raters include-

Customers Suppliers Stakeholders Family This gives a pre and a post intervention results. The pre-intervention results set the baseline.

 Human Resource Accounting is a method to measure

the effectiveness of personnel management activities and the use of people in an organization. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees.

 Appraiser Discomfort

Lack of Objectivity
Hallo/Horn effect Leniency/Strictness

Central Tendency
Personal Bias Manipulating the evaluation

A poor performer is not always a poor performer for life, says S Padmanabhan, executive vice president, global human resources, Tata Consultancy Services (TCS). TCS conducts two appraisals: At the end of the year At the end of a project

 Appraisals are based on Balanced Scorecard, which

tracks the achievement of employees on the basis of targets at four levels financial customer internal learning and growth Based on their individual achievements, employees are rated on a scale of one to five

 To avoid that, TCS shuffles its employees between

projects every 18 months or so. Performance drops if motivation drops TCS's performance appraisal system is supported by an online system called the Human Resource Management System- an Oracle Developer 2000 based tool.