Performance Appraisal & Job Evaluation

Performance Appraisal & Job Evaluation ppt
Performance Appraisal
Meaning
Objectives
Benefits
Methods
Job Evaluation
Meaning
Methods

1. PERFORMANCE APPRAISAL and job evaluation Presented By- Swayam Gupta 08 BBA 2013

2. Contents Performance Appraisa l Meaning Objectives Benefits Methods Job Evaluation Meaning Methods

3. Meaning and definition In simple terms, Performance Appraisal may be understood as the assessment of individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed. A formal definition of Performance Appraisal is : It is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development.

4. objectives To maintain records in order to determine compensation packages, wage structure, salaries etc. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development. To provide a feedback to employees regarding their performance and related status. To review and retain the promotional and other training programmes.

5. benefits It helps the supervisors to chalk out the promotion programmes for efficient employees. It helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. The subordinates can also understand and create a trust and confidence in superiors. It also helps in maintaining cordial and congenial labour management relationship. It develops the spirit of work and boosts the morale of employees.

6. methods Broadly all methods of appraisals can be divided into two different categories: Past Oriented Methods Future Oriented Methods

7. Past Oriented Methods Rating Scales:  Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived.    Checklist :  Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Forced Choice Method :  The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment.

8. PAST ORIENTED methods Field Review Method :  This is an appraisal done by someone outside employees’ own department usually from corporate or HR department. Performance Tests & Observations :  This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Comparative Evaluation Method :  These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method. Ranking Methods :  Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation. Paired Comparison Methods :  In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as N x (N-1) / 2

9. FUTURE ORIENTED METHODS Management By Objectives :  It means management by objectives and the performance is rated against the achievement of objectives stated by the management. Psychological Appraisals :  These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations.  360-Degree Feedback :  It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self.

10. Job evaluation A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

11. methods There are primarily three methods of job evaluation: Ranking Method, Classification Method, Factor comparison Method Point Method.

12. RANKING METHOD Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be arranged according to the relative difficulty in performing them.

13. Classification method(grading method) According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. 

14. Factor comparison method This method is widely used and is considered to be one of the reliable and systematic approach for job evaluation in mid and large size organisations. Under this method, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, working conditions etc. Pay will be assigned in this method by comparing the weights of factors required for each job.

15. Point method Jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades.

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