Performance Appraisal System introduction

Performance Appraisal System introduction

1. PRESENTATION
ON
PERFORMANCE APPRAISAL

2. PAisthemethodofevaluatingthe
behaviouroftheemployeesinthe
workplace,normallyincluding
bothquantitativeandqualitative
aspectofthejob.
Howtheemployeeisperforming
Howtheemployeecandevelop
Whatthesuperiorcandotomakeit
happen
Howthejobisgoing
What is Performance Appraisal

3. •Provideinformationabouttheperformanceranks.
Decisionregardingsalaryrevision,confirmation,
promotionanddemotions.
•Providefeedbackaboutlevelofachievementand
behaviourofthesubordinate.
•Provideinformationwhichhelpstocounselthe
employees.
•Provideinformationtodiagnosethedeficiencyof
theemployees.
•Providetraininganddevelopmentneedsofthe
employees.
WHY conduct a Performance
Appraisal

4. •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.
WHEN to conduct a Performance
Appraisal

5. •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
OBJECTIVES of Performance
Appraisal

6. •The Appraisee
•The Appraiser
•HR Department
WHO are involved in Performance
Appraisal

7. •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.
Content of Performance Management
•Judgmental Skills.
•Area of improvement.
•Past Achievement.
•Honesty and sincerity.
•Innovativeness
•Cost & Time consciousness
•Communication

8. 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).

9. Quantityofwork:Volumeofwork
under normal working
conditions
Unsatisfactory
(1)
Fair
(2)
Satisfacto
ry
(3)
Good
(4)
Out
Standi
ng
(5)
Quality of work:Neatness,
thoroughness andaccuracyof
workKnowledge ofjob
Aclearunderstanding ofthe
factorsconnectedwiththejob
Attitude:Exhibitsenthusiasm and
cooperativenessonthejob
Table: Typical Graphic Rating Scale
Employee Name...................Job title .................
Department .........................Rate ...............
Data ..................................

10. 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.

11. Performance Points Behavior
Extremelygood 7 Canexpecttraineetomakevaluablesuggestions for
increasedsalesandtohavepositiverelationshipswith
customersalloverthecountry.
Good 6 Canexpecttoinitiatecreativeideasforimprovedsales.
Aboveaverage 5 Canexpecttokeepintouchwiththecustomersthroughout
theyear.
Average 4 Canmanage,withdifficulty,todeliverthegoodsintime.
Belowaverage 3 Canexpecttounloadthetruckswhenaskedbythe
supervisor.
Poor 2 Canexpecttoinformonlyapartofthecustomers.
Extremelypoor 1 Canexpecttotakeextended coffeebreaksandroam
aroundpurposelessly.

12. 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.

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

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

15. 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. Paul 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. Paul stayed 45 minutes over on his
break during the busiest part of the day. He failed to
answer the store manager’s call thrice.

16. Essay Method
•This method asked managers /
supervisors to describe strengths and
weaknesses of an employee’s behavior.

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

18. Modern Methods

19. MBO
Aprocesswherebythesuperiorand
subordinatesoftheorganizationjointly
identifyitscommonobjectives,define
eachindividual’smajorareasof
responsibility.
1.EstablishmentofGoals
2.Settingtheperformancestandard
3.Actuallevelofjobattainmentis
comparedwiththegoalsagreedupon.
4.Establishingnewgoalsandnew
strategiesforgoalsnotpreviously
attained.

20. PSYCHOLOGICAL APPRAISALS:
Whenpsychologistsareusedforevaluations,they
assesanindividual’spotential.Theappraisalconsists
ofin-depthinterviews,psychologicaltests,
discussionswithsupervisorsandareviewofother
evaluations.

21. 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.

22. 360 DEGREE
FEEDBACK

23. What is 360 DF?
360DegreeFeedbackisamulti-rater
feedbacksystemwhereanindividualis
assessedbyanumberofassessorsincluding
hisboss,directreports,colleagues,internal
customersandexternalcustomers

24. Internal
Customers
“Boss”
Peers
External
Customers
Team
Members
Self
Feedback
collected from
Using a specially
designed tool
Anonymously
What is 360 DF?

25. 1.Halo/horneffect–employee’s
extremecompetenceinone
area“shines”overallothers.
Conversely,employeedoes
poorlyinoneareaandthis
overshadowsallareas.
2.Bias–ownprejudices{race,
nationalorigin,gender,
appearance,etc.}influencethe
appraisal
3.Comparison Rating –
contrastingoneemployeewith
another
Common Problems Associated with Conducting
the Appraisal

26. 3.CentralTendency–rateeveryoneasaverage
4.RecencyEffect–focusingonrecent
performanceinsteadofentireyear
5.PersonalPrejudice–Iftheraterdislikesone
grouporemployees,hemayratethematthe
lowerend.
6.Favoritism–evaluatingfriendsorthosewho
don’tmakewaves,etc.morefavorablythan
others
Common Problems Associated with Conducting the
Appraisal