A SIMPLE STUDY ON PERFORMANCE APPRISAL SYSTEM

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What is Performance Appraisal

PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job.
 How the employee is performing  How the employee can develop  What the superior can do to make it happen  How the job is going
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WHY conduct a Performance Appraisal

Provide information about the performance ranks. Decision regarding salary revision, confirmation, promotion and demotions. Provide feedback about level of achievement and behaviour of the subordinate. Provide information which helps to counsel the employees. Provide information to diagnose the deficiency of the employees. Provide training and development needs of the employees.
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WHEN to conduct a Performance Appraisal

The performance review must occur atleast once in a year. Some companies review twice in a year. However, as a part of Performance Management, the performance review is a continuing, ongoing activity.
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OBJECTIVES of Performance Appraisal

Establish a more effective two way communication Set performance objectives Help improve current performance Assess past performance Provide feedback on performance Identify training & development needs Allocate rewards Identify staff with promotional possibilities Assist in career planning decisions
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WHO are involved in Performance Appraisal

The Appraisee The Appraiser HR Department

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Content of Performance Management

Regularity of the Attendance. Ability to work individually or in group. Leadership skills. Initiative, Technical skills. Ability to grasp new things. Area of interest. Attitude. Job Knowledge. Communication
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Judgmental Skills. Area of improvement. Past Achievement. Honesty and sincerity. Innovativeness Cost & Time consciousness

Traditional Methods of Performance Appraisal.

Graphic Rating Scales: This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).

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Table: Typical Graphic Rating Scale Employee Name................... Job title ................. Department ......................... Rate ............... Data ..................................
Quantity of work: Volume of work under normal working conditions Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Unsatisfactory (1) Fair (2) Satisfacto ry (3) Good (4) Out Standi ng (5)

Attitude: Exhibits enthusiasm and cooperativeness on the job

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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.

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Performance
Extremely good

Points
7

Behavior
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.

Good

Above average

Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time.

Average

Below average

Can expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers.

Poor Extremely poor

Can expect to take extended coffee breaks and roam around purposelessly.

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Paired Comparison Method

A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

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Forced distribution method

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

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Checklist Method
Another simple type of individual evaluation method is the checklist.
Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes/No Yes/No Yes/No Yes/No Yes/No

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Critical Incidence Method

Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job . July 20 Mr. Timmaji patiently attended to the major customers complaint. He is polite, prompt, enthusiastic in solving the customers problem. On the other hand the bad critical incident may appear as under: September 28 Mr. Timmaji stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store managers call thrice.
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Essay Method
This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior.

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Confidential Report
It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate.

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Modern Methods

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MBO
A process whereby the superior and subordinates of the organization jointly identify its common objectives, define each individuals major areas of responsibility. Establishment of Goals Setting the performance standard Actual level of job attainment is compared with the goals agreed upon. Establishing new goals and new strategies for goals not previously attained.

1. 2. 3. 4.

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PSYCHOLOGICAL APPRAISALS:
When psychologists are used for evaluations, they asses an individuals potential. The appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations.

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Assessment Centre
This not a technique of performance appraisal by itself. In fact, this is a system or organization where assessment of several individual is done by experts by using various techniques. These techniques used role playing, case studies etc.

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360 DEGREE FEEDBACK

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What is 360 DF?

360 Degree Feedback is a multi - rater feedback system where an individual is assessed by a number of assessors including his boss, direct reports, colleagues, internal customers and external customers

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What is 360 DF?

Feedback collected from Using a specially designed tool Anonymously

Boss Internal Customers

Peers

Self

External Customers

Team Members
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Common Problems Associated with Conducting the Appraisal

1. Halo/horn effect employees extreme competence in one area shines over all others. Conversely, employee does poorly in one area and this overshadows all areas. 2. Bias own prejudices {race, national origin, gender, appearance, etc.} influence the appraisal 3. Comparison Rating contrasting one employee with another PBS KUMAR

Common Problems Associated with Conducting the Appraisal 3. Central Tendency rate everyone as average 4. Recency Effect focusing on performance instead of entire year recent

5. Personal Prejudice If the rater dislikes one group or employees, he may rate them at the lower end. 6. Favoritism evaluating friends or those who dont make waves, etc. more favorably than others
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