how performence appraisal could be effective with reference to any organization in bangladesh?

7/31/2019 How Performence Appraisal Could be Effective With Reference to any organization in bangladesh?

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Presented To:Jasim Uddin (JDn)

Presented By:

Group-05

Submission date:8th March 2012

Research Topic:Critically DiscussHow Performence Appraisal Could

be Effective With Reference to any

organization in bangladesh.


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Performance Appraisal

2

Name #ID

Md. Imran Faruque Rashed 093 0873 030

Mohammad Muddassir Haque 091 0383 030

Mohammad Abdul karim. 092 0629 030

A.M. Nurul Huda 092 0285 030

Gazi Mitul Minhar 062 124 030


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3Table of Contents

Area Page

Introduction 4

Definition of PA 5

Characteristics of PA 6Meaning of PA 6

PA and Job analysis Relationship 6

Why PA is So Important? 7

Benefits of PA 9

Four Goals of PA 10

Objectives of PA 11

Process of PA 12

Who Will Appraise 14

Methods of PA 15

Traditional Methods 16-25Paired Comparison Graphic Rating Scale 16

Graphic Rating Scale 17

Forced Choice Description 19

Forced Distribution Method 20

Check Lists 21

Free Essay Method 22

Critical Incident 23

Group Appraisal 24

Field Review Method 25

Confidential Report 25

Rating Method 25

Modern Method 27-33

Assessment Centre 27

MBO 27

Human Asset Accounting 30

Behaviorally Anchored Rating Scale 31

360 Degree Feedback 33

Evaluator's Concern 35

Performance Appraisal In Reality 36

PE System for Unilliance Textile Ltd 37-46

Upper Level ofManagementEvaluation 38

Lower Level Management evaluation 46

Conclusion 48

Reference 49


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4INTRODUCTION:

Managing human resources in todays dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in

the organization has led to increase in trends in employee maintenance. Human Resource (or

personnel) management, in the sense of getting things done through people, is an essential part of

every managers responsibility, but many organizations find it advantageous to establish a

specialist division to provide an expert service dedicated to ensuring that the human resource

function is performed efficiently.

Once the employee has been selected, trained and motivated he is then apprised of his

performance. Performance appraisal is the steps where the management finds out how effective it

has been top communicated with the employee and rectify them.

Employee appraisal techniques are said to have been used for the first time in the First World

War when at the instance of Waller dill Scot the U.S army adopted man-to-man rating system for

evaluating military personnel. During the 1920-30 periods relational wage structures for hourly

paid workers were adopted in industrial units under this system the policy of giving grade wise

increments on the basis of merit were accepted. These early employee plans were called merit

rating program which continued up to the fifties however attention began to be devoted to the

performance appraisal of the technical professional and managerial personnel.

Performance Appraisal is the process of assessing the performance and progress of

an employee or a group of employees on a given job and his/their potential for future

development. It consists of all formal procedures used in the working organizations to evaluate

personalities, contributions and potentials of employees. Performance appraisal is the process of

obtaining, analyzing and recording information about the relative worth of an employee. The

focus of the performance appraisal is measuring and improving the actual performance of the

employee and also the future potential of the employee. Its aim is to measure what an employee

does.


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5DEFINATION:

It is formal, structured system of measuring, evaluating job related behaviors and outcomes to

discover reasons of performance and how to perform effectively in future so that employee,

organization and society all benefits.

The term performance appraisal has defined by various authors, of these the widely accepted

definitions are as follows:

EDWIN B.FLIPPO defines performance appraisal as A systematic, periodic and as faras humanlypossible an impartial rating of an employees excellence in matters pertaining

to his present job and his potentialities for a better job.

DALE S.BEACH defines performance appraisal, as It is a systematic evaluation of theindividual with respect to hisperformance on the job and his potential for development.

According to M.W.CUMMINGS performance appraisal or merit rating attempts torecognize and reward the personal abilities that an individual brings to the job, measured

by the extent to which his output or quality of his work exceed the minimum that even

reasonably be expected for his basic rate of pay.

NEWSTROM, Says- It is the process of evaluating the performance of employees,sharing that information with them and searching for ways to improve their

performance.

So Performance Appraisal is the process of assessing the performance and progress of

an employee or a group of employees on a given job and his/their potential for future

development. It consists of all formal procedures used in working organizations and potential

of employees. Performance appraisal is generally done in systematic ways which are as

follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.2. The supervisor analyses the factors behind work performances of employees.3. The employers are in position to guide the employees for a better performance.


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6CHARACTERISTICS:

Performance appraisal is a process It is the systematic examination of the strengths and weakness of an employee in terms of

his job.

It is scientific and objective study. It is an ongoing and continuous process wherein theevaluations are arranged periodically according to a definite plan

The main purpose of Performance Appraisal is to secure information necessary formaking objective and correct decision for an employee aligning with the organizational

goal.

MEANING OF PERFORMANCE APPRISAL:

Performance Appraisals is the assessment of individuals performance in a systematic

way. It is a developmental tool used for all round development of the employee and the

organization. The performance is 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 be confined to past as well as

potential performance also. The second definition is more focused on behaviors as a part of

assessment because behaviors do affect job results.

PERFORMANCE APPRISAL AND JOB ANALYSIS RELATIONSHIP:

Job analysis, Performance appraisal and performance management are closely linked up.

There are some basic components of Performance management.

COMPANIES

STRATEGIES

GOALS

JOB ANALYSIS JOB GOALS &

STANDARDS

PERFORMANCE

APPRISAL


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7

Performance appraisal can easily uplift one companys overall performance. It is not a process

that happens once a year or every six months, but one that happens once a year. It is a part of the

performance management system. Company by applying this system can judge how well an

individual employee is doing his job against a set of criteria.

WHY PERFORMANCE APPRISAL IS SO IMPROTENT:

Performance appraisal is an important tool to improve organizational performance. It provides a

benchmark to organization for effective recruitment and selection. It appraises individual

performance but through this improvement in performance has been made automatically.

Training program is also improvedby it because when an employees strength and weaknesses is

identified than selection of training methods become easier for organization. So, these factors

increase importance of appraisal system in organizational improvement:

Validation of Selection Criteria

To establish the validity of selection devices, they must be correlated with some measure of job

performance. Therefore, a major purpose of performance appraisal is to provide information for

validating employee selection techniques.

Training Requirements

A careful evaluation of employee performance can uncover weaknesses or deficiencies in

knowledge, skills and abilities that once identified can be corrected through additional training.

Redesigning of training programs for new workers and retraining current workers to correct

Job Analysis Performance

Standards

Performance

Appraisals

Describe the work and

personnel requirement of

a particular job.

Translate job

requirements into levels

of acceptable or

unacceptable

performance

Describe the job relevant

strengths and

weaknesses of each

individual.


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8shortcomings. Performance appraisal can also be used to assess the worth of a training program

by determining whether job performance improved after the training period.

Employee Improvement

Performance appraisal programs should provide feedback to employees about their job

competence and their progress within the organization. This kind of information is crucial to

maintaining employee morale. Appraisals can also suggest how employees might change certain

behaviors or attitudes to improve their work efficiency. Workers have a right to know what is

expected of themwhat they are doing well, and how they might improve.

Pay, Promotion and other personnel decisions

In organizations, rewards are in the form of salary increases, bonuses, promotions and transfers

to positions providing greater opportunity for advancement. To maintain employee initiative and

morale, these challenges in status cannot depend on a supervisors personal bias but must be

based on a systematic evaluation of employee worth. Performance appraisals provide the

foundation for these decisions and also help to identify those employees with the potential and

talent for contributing to the companys growth and expansion.

Motivation:

Performance appraisal serves as a motivation tool. Through evaluating performance ofemployees, a persons efficiency can be determined if the targets are achieved. This very well

motivates a person for better job and helps him to improve his performance in the future.

Communication:

For an organization, effective communication between employees and employers is very

important. Through performance appraisal, communication can be sought for in the following

ways:

Through performance appraisal, the employers can understand and accept skills ofsubordinates.

The subordinates can also understand and create a trust and confidence in superiors. It also helps in maintaining cordial and congenial labor management relationship. It develops the spirit of work and boosts the morale of employees.


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9The benefits of the appraisal are as follows:

Benefits for the individual:

Understanding more clearly how and where they fit in within the wider picture

Getting an insight into how their performance is perceived

Improving understanding of their strengths and weaknesses and developmental needs

Identifying ways in which they can improve performance

Providing an opportunity to discuss and clarify developmental and training needs

Benefits to the line manager/supervisor/team leader:

An opportunity to identify any potential difficulties or weaknesses

An improved understanding of the resources available

An opportunity to plan for and set objectives for the next period

An opportunity to motivate members of the team.

Benefits to the organization:

A structured means of identifying and assessing potential

Up-to-date information regarding the expectations and aspirations of employees

Information on which to base decisions about promotions and motivation

An opportunity to review succession planning

Information about training needs which can act as a basis for developing training plans.


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10FOUR GOALS OF PERFORMANCE APPRISAL:

General Goals Specific Goals

Developmental Use Individual needs

Performance feedback

Transfers and Placements

Strengths and Development needs

Administrative Decisions / Uses Salary

Promotion

Retention / Termination

Recognition

Lay offs

Poor Performers identification

Organizational Maintenance HR PlanningTraining Needs

Organizational Goal achievementsGoal Identification

HR Systems Evaluation

Reinforcement of organizational needs

Documentation Validation Research

For HR Decisions

Legal Requirements


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11OBJECCTIVE OF PARFORMENCE APPRISAL:

The main objectives of performance appraisal are:

1. To enable an organization to maintain inventory of the number and quality of allmanagers and to identify and meet their training needs and Aspiration.

2. To determine increments and to provide a reliable index for promotions and transfer togreater responsibility.

3. To maintain individual and group development by informing the employees of theirperformance standard.

4. To suggest ways of improving employees performance when he is not found to be up tothe mark.

5. To provide feedback to employees so that they can know now where they stand and canimprove their job performance.

6. To provide a valid database for personnel decisions concerning placements, pay,promotion, transfer, punishment, etc.

7. To diagnose the strengths and weaknesses of individuals so as to identify further trainingneeds.

8. To provide coaching, counseling, career planning and motivation to subordinates.


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12PROCESS OF PEFORMENCE APPRISAL:

Six certain stages while evaluating the performance of an individual mostly they consider certain

factors relating to the job and their behavior in the organization.

The following stages in the process of performance appraisal system:

STEP1: Setting Performance Standards:

The appraisal process begins with the setting up of criteria to be used for appraising the

performance of employees. The criteria are specified with the help of job analysis which reveals

the content of a job. This criteria should be clear, objective and in writing. It should be discussed

Setting

Performance

Standards

ommunicating standers

Measuring

Performance

PERFORMANC

E APPRISALComparing Standards

DiscussingResultsTaking corrective

Standards


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13with supervisors to ensure that all the relevant factors have been included. Where the output can

be measured the criteria is clean. If work performance cannot be measured, the personal

characteristics, which contribute to employee performance, must be determined. These

characteristics include work quality, honesty and reliability, cooperation, teamwork, job

knowledge, initiative, leadership, safety consciousness, attendance, learning ability, adaptability,

judgment, sense of responsibility, health and physical condition, etc., these standards should be

indicated on the appraisal form. Appraisal forms should be carefully designed.

STEP2: Communicating Standards:

The performance standards specified in the first step are communicated and explained to the

employees so that they come to know what is expected of them. The standards should be

conveyed to the evaluators. The reactions of the employees to the standards should be obtained.If necessary the standards may be revised or modified in the light of feedback obtained from the

employees and the evaluators.

STEP3: Measuring Performance:

Once the performance standards are specified and accepted, the next stage is the

measurement of actual performance. This requires choosing the right technique of measurement,

identifying the internal and external factors influencing performance and collecting information

on results achieved. Personal observations, written reports and face-to-face contacts are the

means of collecting data on performance. The performance of different employees should be so

measured that it is comparable. What is measured is more important than how it is measured.

STEP4: Comparing Standards:

Actual performance is compared with the predetermined performance standards. Such

comparison will reveal the deviations, which may be positive or negative. Positive deviations

occur when actual performance exceeds the standards. On the other hand, excess of standard

performance over the actual performance represents negative deviation.

STEP5: Discussing Result:

To ensure that the appraisal is transparent and free from bias or subjectivity, discuss with

the concerned employees. The employees may raise his\her objections in case the appraisal is far


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14from reality. Free exchange of such information reduces not only the scope for subjectivity errors

in the process of appraisal but also may strengthen the morale and self-esteem of the employees.

When the appraisal is discussed with the employees it is likely that the employees may take it

positively or negatively. Particularly, where the appraisal is negative, the employee is to be

handled with a lot of care so that he does not get disillusioned.

STEP6: Taking Corrective Standards:

Identify and initiate the corrective action where necessary suitable corrective action

may be identified and initiated immediately. At times, this may yield only temporary results.

Immediate corrective action is often described as putting out fire . Most often, this may not be

the solution. It is necessary to identify the source of deviation and try to adjust the difference

permanently. This calls for corrective action for permanent results. Though it may be difficult ortime- consuming to go to the source of deviation, it saves time and resources tomorrow when the

problem may get bigger.

WHO WILL APPRAISE?

The performance supervisor is the right person to evaluate the performance of the

employee. It is because the supervisor monitors the progress of the employee on a day- to day

basis.

PEERS

Peers are those who are more knowledgeable about the job or work. They will tell whether the

performance of the employee is satisfactory or not by observing his/her Year long

accomplishments or activities.

SUBORDINATES

The subordinates access the performance of the manager and this is not very common in our

country, at least.

MANAGER BY HIMSELF OR HERSELF

This is called self-appraisal. The manager is encouraged to access his own performance and

forward this report to the management for necessary action.


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15USERS OF SERVICES:

Most of the times, the customers of the services are the real judges of the performance the

department. The personnel in the service department can be assessed based on the customer

satisfaction surveys.

CONSULTANTS

More often, an outside consultant is engaged for appraising the performance of the employee

at different levels. This method is preferred to overcome the problem of bias or subjectivity in

the process of appraisal.

METHODS OF PERFORMANCE APPRAISAL:

Several methods and techniques of appraisal are available for measuring theperformance of an employee. There are differed for various reasons. They are broadly

categorized into two categories.

Traditional Methods. Modern Methods.


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16Traditional Methods:

Paired Comparison Graphic Rating Scale:Graphic rating scales are one of the most common methods of performance appraisal. Graphic

rating scales require an evaluator to indicate on a scale the degree to which an employee

demonstrates a particular trait, behavior, or performance result. Rating forms are composed of a

number of scales, each relating to a certain job or performance-related dimension, such as job

knowledge, responsibility, or quality of work. Each scale is a continuum of scale points, or

anchors, which range from high to low, from good to poor, from most to least effective, and so

forth. Scales typically have from five to seven points, though they can have more or less.

Graphic rating scales may or may not define their scale points.

Acceptable rating scales should have the following characteristics:

a) Performance Dimensions should be clearly defined.b) Scales should be behaviorally based so that a rater is able to support all ratings with

objective, observable evidence.

c) Abstract trait names such as "loyalty," "honesty," and "integrity" should be avoidedunless they can be defined in terms of observable behaviors.

d) 4. Points, or anchors, on each scaled dimension should be brief, unambiguous, andrelevant to the dimension being rated. For example, in rating a person's flow of words, it

is preferable to use anchors such as "fluent," "easy," "unimpeded," "hesitant," and

"labored," rather than "excellent," "very good," "average," "below average," and "poor."

Carefully constructed graphic rating scales have a number of advantages:

a) Standardization of content permitting comparison of employees.b) Ease of development use and relatively low development and usage cost.c) Reasonably high rater and rate acceptance.

A disadvantage of such rating scales is that they are susceptible to rating errors which result in

inaccurate appraisals. Possible rating errors include halo effect, central tendency, severity, and

leniency. The halo effect occurs when a rating on one dimension of an appraisal instrument

substantially influences the ratings on other dimensions for the same employee. As a result of the

halo effect, an employee is rated about the same across all performance dimensions. Central


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17tendency is a lack of variation or difference among ratings of different subordinates, wherein

most employees tend to be rated as average. Leniency refers to an evaluator's tendency to rate

most employees very highly across performance dimensions, whereas severity refers to the

tendency to rate most employees quite harshly.

Paired Comparison Graphic Rating Scale

Graphic Rating Scales:This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is

he outstanding, above average, average, or unsatisfactory) and on a variety of other factors that

vary with the job but usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication. The graphic scale has

come under frequent attack, but remains the most widely used rating method. In a classic

comparison between the "old-fashioned" graphic scale and the much more sophisticated forced-


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18choice technique, the former proved to be fully as valid as the best of the forced-choice forms,

and better than most of them. (4) For many purposes there is no need to use anything more

complicated than a graphic scale supplemented by a few essay questions. 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.

Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large

number of employees covered, no formal training required.

DisadvantagesRaters biases

Graphic Rating Scales


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19 Forced Choice Description Method:

This technique was developed to reduce bias and establish objective standards of

comparison between individuals, but it does not involve the intervention of a third party.

Although there are many variations of this method, the most common one asks ratters to choosefrom among groups of statements those which best fit the individual being rated and those which

least fit him. The statements are then weighted or scored, very much the way a

Psychological test is scored. People with high scores are, by definition, the better employees;

those with low scores are the poorer ones. Since the ratter does not know what the scoring

weights for each statement are, in theory at least, he cannot play favorites. He simply describes

his people, and someone in the personnel department applies the scoring weights to determine

who gets the best rating.

The rationale behind this technique is difficult to fault. It is the same rationale used in developing

selection test batteries. In practice, however, the forced-choice method tends to irritate ratters,

who feel they are not being trusted. They want to say openly how they rate someone and not be

second-guessed or tricked into making "honest" appraisals.

Forced Choice method


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20 Forced Distribution Method:

This is a ranking technique where raters are required to allocate a certain percentage of rates to

certain categories (e.g.: superior, above average, average) or percentiles (e.g.: top 10 percent,

bottom 20 percent etc). Both the number of categories and percentage of employees to be allottedto each category are a function of performance appraisal design and format. The workers of

outstanding merit may be placed at top 10 percent of the scale; the rest may be placed as 20 %

good, 40 % outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

a. This method tends to eliminate raters biasb. By forcing the distribution according to pre-determined percentages, the problem

of making use of different raters with different scales is avoided.

Limitations of Forced Distribution

The limitation of using this method in salary administration, however, is that it may lead low

morale, low productivity and high absenteeism. Employees who feel that they are productive, but

find themselves in lower grade (than expected) feel frustrated and exhibit over a period of time

reluctance to work.


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21 Checks lists:

A checklist represents, in its simplest form, a set of objectives or descriptive statements about the

employee and his behavior. If the rater believes strongly that the employee possesses a particular

listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation ofthe checklist method is the weighted list. Under this, the value of each question may be weighted

equally or certain questions may be weighted more heavily than others. The following are some

of the sample questions in 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

A rating score from the checklist helps the manager in evaluation of the performance of the

employee. The checklist method has a serious limitation. The rater may be biased in

distinguishing the positive and negative questions. He may assign biased weights to the

questions. Another limitation could be that this method is expensive and time consuming.

Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of

statements about the employee's characteristics, contributions and behaviors. In spite of theselimitations, the checklist method is most frequently used in the employee's performance

evaluation.

Advantages of Checklists

Most frequently used method in evaluation of the employees performance.

Limitations of Checklists

a) This method is very expensive and time consuming.b) Rater may be biased in distinguishing the positive and negative questions.c) It becomes difficult for the manager to assemble, analyze and weigh a number of

statements about the employees characteristics, contributions and behaviors.


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22 Free Essay Method:

The essay method involves an evaluator's written report appraising an employee's performance,

usually in terms of job behaviors and/or results. The subject of an essay appraisal is often

justification of pay, promotion, or termination decisions, but essays can be used fordevelopmental purposes as well.

Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization

is a major problem. The open-ended, unstructured nature of the essay appraisal makes it highly

susceptible to evaluator bias, which may in some cases be discriminatory. By not having to

report on all job-related behaviors or results, an evaluator may simply comment on those that

reflect favorably or unfavorably on an employee. This does not usually represent a true picture of

the employee or the job, and content validity of the method suffers in this method the rater writes

down the employee description in detail within a number of broad categories like, overall

impression of performance, promote ability of employee, existing capabilities and qualifications

of performing jobs, strengths and weaknesses and training needs of the employee. Advantage It

is extremely useful in filing information gaps about the employees that often occur in a better-

structured checklist. DisadvantagesIt its highly dependent upon the writing skills of rater and

most of them are not good writers. They may get confused success depends on the memory

power of raters.

Free Essay Method


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23 Critical Incidents Method:The approach is focused on certain critical behaviors of employee that makes all the

difference in the performance. Supervisors as and when they occur record such incidents.

Under this method, the manager prepares lists of statements of very effective and ineffectivebehavior of an employee. These critical incidents or events represent the outstanding or poor

behavior of employees or the job. The manager maintains logs of each employee, whereby he

periodically records critical incidents of the workers behavior. At the end of the rating period,

these recorded critical incidents are used in the evaluation of the workers performance.

Example of a good critical incident of a Customer Relations Officer is: March 12 - The

Officer patiently attended to a customers complaint. He was very polite and prompts in

attending the customers problem.

Advantages of Critical Incident techniques:

a) Evaluations are based on actual job behaviors.b) Ratings are supported by descriptions.c) This method provides an objective basis for conducting a thorough discussion of an

employees performance.

d) This method avoids recency bias (most recent incidents are too much emphasized)


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24Limitations of Critical Incident techniques:

a) Feedback may be too much and may appear to be punishmentb) Negative incidents may be more noticeable than positive incidents.c) The supervisors have a tendency to unload a series of complaints about the incidents

during an annual performance review sessions.

d) It results in very close supervision which may not be liked by an employee.e) The recording of incidents may be a chore for the manager concerned, who may be too

busy or may forget to do it.

Group Appraisal:Under this method employees are rated by a group, consisting of their superiors who have some

knowledge of their performance, the supervisor explains the group the nature of his subordinates

duties the group then discuss the standard of the performance of the job. The actual performance

of the employee is then matched or compared with the standard set.In this method, an employee

is appraised by a group of appraisers. This group consists of the immediate supervisor of the

employee, other supervisors who have close contact with the employee's work, manager or head

of the department and consultants. The head of the department or manager may be the Chairman

of the group and the immediate supervisor may act as the Coordinator for the group activities.

This group uses any one of multiple techniques discussed earlier. The immediate supervisor

enlightens other members about the job characteristics, demands, standards or performance, etc.

Then the group appraises the performance of the employee, compares the actual performance

with standards, finds out the deviations, discusses the reasons therefore, suggests ways for

improvement of performance, prepares an action plan, studies the need for change in the job

analysis and standards and recommends changes, if necessary.

Advantages:

a) This method eliminates personal biases to a large extent.b) This is through very simple and is devoid of any for its multiple judges.

Disadvantages:

It is very time consuming.


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25 Field Review Method:

This is an appraisal done by someone outside employees own department usually from

corporate or HR department. Where subjective performance measures are used, there is scope for

rater's biases influencing the evaluation process. To avoid this, some employees use the field

review method. In this method a trained, skilled representative of the HR department goes into

the field' and assists line supervisors with their ratings of their respective subordinates. The HR

specialist requests from the immediate supervisor specific information about the employees

performance. Based on this information, the expert prepares a report which is sent to the

supervisor for review, changes, approval and discussion with the employee who is being rated.

The ratings are done on standardized forms.

Advantages

a) Useful for managerial level promotions, when comparable information is neededb) This method eliminates ratersbiases to a large extent.

Disadvantage:

Outsider is generally not familiar with employees work environment, Observation of actual

behaviors not possible.

Field Rivew Method


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26 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. The report is not data based. The impressions of the superior

about the subordinate are merely recorded there. It does not offer any feedback to the appraise.

The appraise is not very sure about why his ratings have fallen despite his best efforts, why

others are rated high when compared to him, how to rectify his mistakes, if any; on what basis he

is going to be evaluated next year, etc. Since the report is generally not made public and hence

no feedback is available, the subjective analysis of the superior is likely to be hotly contested. In

recent years, due to pressure from courts and trade unions, the details of a negative confidential

report are given to the appraise.

Ranking Methods:Ranking methods compare one employee to another, resulting in an ordering of employees in

relation to one another. Rankings often result in overall assessments of employees, rather than in

specific judgments about a number of job components. Straight ranking requires an evaluator to

order a group of employees from best to worst overall or from most effective to least effective in

terms of a certain criterion. Alternative ranking makes the same demand, but the ranking process

must be done in a specified manner (for example, by first selecting the best employee in a group,

then the worst, then the second-best, then the second-worst, etc.).

Comparative evaluation systems such as ranking are rarely popular. No matter how close a group

of employees is in the level of their performance, and no matter how well they perform on the

job, some will rank high and some will end up at the bottom. Evaluators are often reluctant to

make such discriminations. Also, rankings are unable to compare employees across different

groups. For example, it is difficult to say whether the second-ranked employee in unit A is as

good as or better than the second-ranked employee in unit B. Despite the problems of ranking

methods, if an organization has a very limited number of promotions or dollars to allocate,

rankings can be very useful in differentiating among employees.


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27

Modern Methods:

Assessment Center:This method of appraising was first applied in German Army in 1930. Later business and

industrial houses started using this method. This is not a technique of performance appraisal by

itself. In fact it is a system or organization, where assessment of several individuals is done by

various experts using various techniques. In this approach individuals from various departments

are brought together to spend two or three days working on an individual or group assignment

similar to the ones they would be handling when promoted. Observers rank the performance of

each and every participant in order of merit. Since assessment centers are basically meant for

evaluating the potential of candidates to be considered for promotion, training or development,

they offer an excellent means for conducting evaluation processes in an objective way. All

assesses get an equal opportunity to show their talents and capabilities and secure promotion

based on merit. Since evaluators know the position requirements intimately and are trained to

perform the evaluation process in an objective manner, the performance ratings may find favor

with majority of the employees. A considerable amount of research evidence is available to

support the contention that people chosen by this method prove better than those chosen by other

methods. The center enables individuals working in low status departments to compete with

people from well-known departments and enlarge their promotion chances. Such opportunities,

when created on a regular basis, will go a long way in improving the morale of promising

candidates working in less important positions.

Management by Objectives:The use of management objectives was first widely advocated in the 1950s by the noted

management theorist Peter DRUCKER.MBO (management by objectives) methods of

performance appraisal are results-oriented. That is, they seek to measure employee performance

by examining the extent to which predetermined work objectives have been met. Usually the

objectives are established jointly by the supervisor and subordinate. Once an objective is agreed,


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28the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the

objective. Typically they do not rely on others to locate and specify their strengths and

weaknesses. They are expected to monitor their own development and progress.

The term MBO almost always refers to a comprehensive organization-wide goal setting and

appraisal program that consist of six main steps:

1. Set the organizations goals: Establish organization-wide plan for next year and set goals.

2. Set departmental goals: Here department heads and their superiors jointly set goals for their

departments.

3. Discuss and allocate department goals: Department heads discuss the department's goals with

all subordinates in the department (often at a department-wide meeting) and ask them to develop

their own individual goals; in other words, how can each employee contribute to the department's

attaining its goals?

4. Define expected results (set individual goals): Here, department heads and their subordinates

set short-term performance targets.

5. Performance review and measure the results: Department heads compare actual performance

for each employee with expected results.


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296. Provide feedback: Department heads hold periodic performance review meetings with

subordinates to discuss and evaluate progress in achieving expected results.

Advantages

The MBO approach overcomes some of the problems that arise as a result of assuming that the

employee traits needed for job success can be reliably identified and measured.

Instead of assuming traits, the MBO method concentrates on actual outcomes.

If the employee meets or exceeds the set objectives, then he or she has demonstrated an

acceptable level of job performance. Employees are judged according to real outcomes, and not

on their potential for success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed, whereas the

traits and attributes of employees (which may or may not contribute to performance) must be

guessed at or inferred.

The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and

varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many

constituent parts - as one might take apart an engine to study it. But put all the parts together and

the performence may be directly measured and observed. .

Disadvantages

MBO methods of performance appraisal can give employees a satisfying sense of autonomy and

achievement. But on the downside, they can lead to unrealistic expectations about what can and

cannot be reasonably accomplished.

Supervisors and subordinates must have very good "reality checking" skills to use MBO

appraisal methods. They will need these skills during the initial stage of objective setting, and for

the purposes of self-auditing and self-monitoring.


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30Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills

needed to do their own "reality checking". Nor are these skills easily conveyed by training.

Reality itself is an intensely personal experience, prone to all forms of perceptual bias.

One of the strengths of the MBO method is the clarity of purpose that flows from a set of well-

articulated objectives. But this can be a source of weakness also. It has become very apparent

that the modern organization must be flexible to survive. Objectives, by their very nature, tend to

impose certain rigidity.

Of course, the obvious answer is to make the objectives more fluid and yielding. But the penalty

for fluidity is loss of clarity. Variable objectives may cause employee confusion. It is also

possible that fluid objectives may be distorted to disguise or justify failures in performance.

Human Asset Accounting:Human Resource Accounting (HRA) measures the cost and contribution of human resources in

the organization. The cost includes the cost of recruitment, selection, induction, training, salaries

and other facilities, etc. Contribution is the money value of the service of the employees. This

service is measured by labor productivity. If the contribution is more than the cost, then the

employee performance is positive and vice-versa.HRA is a sophisticated way to measure (in

financial terms) the effectiveness of personnel management activities and the use of people in an

organization. It is the process of accounting for people as an organizational resource. It tries to

place a value on organizational human resources as assets and not as expenses. The HRA process

shows the investment the organization makes in its people and how the value of these people

changes over time. The acquisition cost of employees is compared to the replacement cost from

time to time. The value of employees is increased by investments made by the company to

improve the quality of its human resources such as training, development skills acquired by

employees over a period of time through experience, etc. When qualified, competent people

leave an organization; the value of human assets goes down. In this method, employee

performance is evaluated in terms of costs and contributions of employees. Human resource

costs include expenditure incurred by the company in hiring, training, compensating and

developing people. The contributions of human resources are the money value of labor

productivity. The cost of human resources may be taken as the standard. Employee performance


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31can be measured in terms of employee contribution to the organization. Employee performance

can be taken as positive when contribution is more than the cost and performance can be viewed

as negative if cost is more than contribution. Positive performance can be measured in terms of

percentage of excess of employee contribution over the cost of employee. Similarly negative

performance can be calculated in terms of percentage of deficit in employee contribution

compared to the cost of employee. These percentages can be ranked to Zero Level' as shown in

the Table below.

Rank Rating Percentage of surplus/Deficit of

contribution to cost of employee

1. Extremely good performance Over 200

2. Good performance 150200

3. Slightly good performance 100150

4. Neither poor nor good 0100

5. Slightly poor performance 0

6. Poor performance 0 to (- 50)

7. Extremely poor performance (-50) to (-100)

An Example ofHuman Asset Accounting

Behaviorally Anchored Rating scales:Behaviorally anchored rating scales (BARS) are rating scales whose scale points are defined by

statements of effective and ineffective behaviors. They are said to be behaviorally anchored in

that the scales represent a continuum of descriptive statements of behaviors ranging from least to

most effective. An evaluator must indicate which behavior on each scale best describes an

employee's performance.Also known as the behavioral expectations scale, this method represents

the latest innovation in performance appraisal. It is a combination of the rating scale and critical

incident techniques of employee performance evaluation. The critical incidents serve as anchor

statements on a scale and the rating form usually contains six to eight specifically defined

performance dimensions. The following chart represents an example of a sales trainee's

competence and a behaviorally anchored rating scale.


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32BARS differ from other rating scales in that scale points are specifically defined behaviors. Also,

BARS are constructed by the evaluators oganization will use them.

How to construct BARS? Developing BARS follows a general format which combines

techniques employed in the critical incident method and weighted checklist ratings scales.

Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job

holders and supervisors, describe specific examples of effective and ineffective behavior related

to job performance.

Step 2:Identify performance dimensions: The people assigned the task of developing the

instrument cluster the incidents into a small set of key performance dimensions. Generally

between five and ten dimensions account for most of the performance. Examples ofperformance dimensions include technical competence, relationships with customers, handling of

paper work and meeting day-to-day deadlines. While developing varying levels of performance

for each dimension (anchors), specific examples of behavior should be used, this could later be

scaled in terms of good, average or below average performance.

Step 3:Reclassification of incidents: Another group of participants who are knowledgeable

about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II)

previously. They are given the definition of job dimension and told to assign each criticalincident to the dimension that it best describes. At this stage, incidents for which there is not 75

per cent agreement are discarded as being too subjective.

Step 4:Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or

one-to-nine scale with respect of how well it represents performance on the appropriate

dimension. A rating of one represents ineffective performance; the top scale value indicates very

effective performance. The second group of participants usually assigns the scale values. Means

and standard deviations are then calculated for the scale values assigned to each incident.

Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained.

Step 5:Producing the final instrument: About six or seven incidents for each performance

dimensionall having met both the retranslating and standard deviation criteriawill be used as

behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for


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33each dimension) anchored (or measured) by the final incidents. Each incident is positioned on

the scale according to its mean value.

Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for increasedsales and to have positive relationships with customers all

over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughout the

year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roam aroundpurposelessly.

An Example of Behaviorally Anchored Rating Scale (BARS)

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. In fact anyone who has useful information on how an employee does a job may be

one of the appraisers. This technique is highly useful in terms of broader perspective, greater

self-development and multi-source feedback is useful. 360-degree appraisals are useful to

measure inter-personal skills, customer satisfaction and team building skills. However on the

negative side, receiving feedback from multiple sources can be intimidating, threatening etc.

Multiple raters may be less adept at providing balanced and objective feedback.360 feedback is

one of the more common business improvement techniques used in modern organizations,

especially for building stronger teams. This annual performance appraisal method depends uponhaving a manager/appraiser interviewing peers, colleagues, supervisors and managers of the

person being appraised for feedback relating to the employee.
http://product-ivity.com/business-improvement-techniqueshttp://product-ivity.com/business-improvement-techniques


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34An employee is assessed based on technical elements as well as their behavior & character

throughout the time period. This level of subjectivity means that a broader range of assessments

feed into evaluating each employees performance.

Example: This performance appraisal method is popular in consultancy houses and companies

where individuals work on several different projects. Employees who move from project to

project wont have set supervisors for long periods of time so more rounded & all-inclusive types

of performance appraisal methods are required.

Benefits of this technique:

Does away with the danger of one bad appraisal affecting an employees promotionopportunities.

Highly effective for organizations where employees are involved in several projects,responsibilities or roles. Staff performance appraisal comments can come from several

managers and supervisors of your employee.
http://product-ivity.com/staff-performance-appraisal-commentshttp://product-ivity.com/staff-performance-appraisal-comments


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35Managers commit mistakes while evaluating employees and their performance. Biases and

judgment errors of various kinds may spoil the performance appraisal process. Bias here refers to

inaccurate distortion of a measurement. These are:

1. First Impression (primacy effect): Raters form an overall impression about the rate onthe basis of some particular characteristics of the rate identified by them. The identified

qualities and features may not provide adequate base for appraisal.

2. Halo Effect: The individuals performance is completely appraised on the basis of aperceived positive quality, feature or trait. In other words this is the tendency to rate a

man uniformly high or low in other traits if he is extra-ordinarily high or low in one

particular trait. If a worker has few absences, his supervisor might give him a high rating

in all other areas of work.

3. Horn Effect:The individuals performance is completely appraised on the basis of anegative quality or feature perceived. This results in an overall lower rating than may be

warranted. He is not formally dressed up in the office. He may be casual at work too!

4. Excessive Stiffness or Lenience: Depending upon the raters own standards, values andphysical and mental makeup at the time of appraisal, rates may be rated very strictly or

leniently. Some of the managers are likely to take the line of least resistance and rate

people high, whereas others, by nature, believe in the tyranny of exact assessment,

considering more particularly the drawbacks of the individual and thus making the

assessment excessively severe. The leniency error can render a system ineffective. If

everyone is to be rated high, the system has not done anything to differentiate among the

employees.

5. Central Tendency: Appraisers rate all employees as average performers. That is, it is anattitude to rate people as neither high nor low and follow the middle path. For example, aprofessor, with a view to play it safe, might give a class grade near the equal to B,

regardless of the differences in individual performances.

6. Personal Biases: The way a supervisor feels about each of the individuals working underhim - whether he likes or dislikes them - as a tremendous effect on the rating of their


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36performances. Personal Bias can stem from various sources as a result of information

obtained from colleagues, considerations of faith and thinking, social and family

background and so on.

7. Spillover Effect: The present performance is evaluated much on the basis of pastperformance. The person who was a good performer in distant past is assured to be okay

at present also.

8. Recency Effect: Rating is influenced by the most recent behavior ignoring the commonlydemonstrated behaviors during the entire appraisal period.

Therefore while appraising performances; all the above biases should be avoided.

Performence appraisal In reality:UNILLIANCE Textile Limited

UNILLIANCE Textile is leading home fashion manufacturer based in Bangladesh. This is

vertically integrated throughout the manufacturing process with efficient infrastructure and

technological setup on 16 acres of land which is ran by different level of expertise on different

level of organization under the visionary and strategic leadership. The core vision or the mission

statement of the organization is,

Mission Statement: To be valued as one of the most progressive global companies inthe home fashion industry for its innovation, reliability, and responsibilities towards the

stake holders.

Values:Unilliance has some core values regarding their activities, employees and customers. In our

evaluation system we have implemented some strategies which can identify if the employees are

committed to these values or not. These values are,


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37 Innovations: Continues efforts to of research and development to bring innovations to the

product and solution.

Reliability: Constant improvement of infrastructure, technologies and business process togain reliability of the stake holders.

Responsibilities: Responsible and caring to the environment, society and economy alongwith responsible and ethical working attitudes with customers and other stakeholders.

Team Work: Working together as a team to developing partnership with customers andsuppliers to achieve long term objectives.

Progressive: At any level of the organization thinking progressively. Strategic:Strategic approach throughout the different level of the organization to be

competent and competitive to ensure profitability and sustainable growth of the business.

Performance Evaluation System for Unilliance Textile Limited:We have categorized two types of performance evaluation system for UnillianceTextile Limited.

One for the Upper level management which is a 360 degree evaluation done by the employee

himself, his/her colleagues and employees upper level supervisor and an adjective rating scale

base evaluation for the floor lever employees.


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38 Upper Level Management Evaluation:

For upper level we have divided the evaluation process into three different categories making it a

360 degree evaluation process. This evaluation process has been chosen to seek out every single

detail and by evaluating them choosing potential leaders inside the organization successfully.Every step of the process will be dependent on each other to minimize every possible error. The

three step process of upper level evaluation is,

Self-Evaluation Process Colleagues Evaluation Upper Level Supervisors Evaluation.

Self-Evaluation Process:Our self-evaluation process is targeted to know the employees of the organizations is meeting

with our core values which are innovations, reliability, responsibility, team work, progress and

strategy. It will be a two-step process: Weekly and Monthly. First step of the evaluation will be

based on selected employees weekly and Second phase will be based on those 4 weekly

evaluations and also concerning the core values of the organization which will notify employee

how committed he or she is to the organization.

Weekly Evaluation:The basic strategy we applied in weekly evaluation is we will provide a sheet of paper at the

beginning of every weak and suggest them to write down some objectives (related to his current

work and job position) employee is trying to achieve. The sheet will be provided to his

supervisor and he will write down the expected score he or she wants from the selected employee

(It is a part of the supervisors evaluation process). At the end of the weak the sheet will be again

provided to him and he will give score to his performance about the objectives he was able tofulfill in the given standards and will compare it with the standard his super visor is was

expecting from a week before and will giving reasons for his score. This process will give him or

her clear picture about his performance and capabilities. It can be used as a motivational tool

which will notify employee about his status and he or she will be forced from within to strive for

achieving the objectives with expected success.


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39Performance Appraisal Form

EMPLOYEE INFORMATION (SELF)

WEEK 1 DATE:

Name of the Employee:

Department: Current Designation: Date of Joining::

Appraiser ( Self): Sign:

List the objectives you set out to achieve in the past week with the measures or standards agreed -

against each comment on achievement or otherwise, with reasons where appropriate. Score theperformance against each objective (1-4 = poor, 5-7 = satisfactory, 8-9 = good, 10= excellent):

Objective Measures

(Employees Score)

standard score (For

Supervisor)

comment


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40Monthly Final Evaluation:

This evaluation will be based on the 4 weekly evaluations and some questions which will notify

employee and the organization that the employee is committed to the core values of the

organization or not. The total scores employee achieved for the last 4 weeks will be providedwith the monthly evaluation sheet. A set of question has been designed to find out the

satisfaction, commitment to the job, forecasting power, visions, creativity, and problem solving

ability etc. of employee. A sample is given below.

Performance Appraisal Form

EMPLOYEE INFORMATION (SELF)

Month 1 Monthly Evaluation Form Date:Name of the Employee:

Department: Current Designation Date of Joining:

Appraiser ( Self) Sign

State your understanding of your main duties and

responsibilities.

Has the past month been for you?

Satisfactory Dissatisfactory Neutral Otherwise.What do you consider to be your most important achievements of the past month?


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41\What Lacking does u think in the organization or in yourself have to be improved to

become better in your job?

In light of your current capabilities, your performance against past objectives, and your

future personal Growth and/or job aspirations, what activities and tasks would you like

to focus on during the next month? Again, also think of development and experiences

outside of job skills - related to personal aims, fulfillment, and passions.

Objective 1... Objective 2...

What strategic techniques you think will be effective to attain your objectives?

A... B...


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42 Colleagues Evaluation:

The basic reason for evaluating an employee by his colleagues is to find out how good he or she

is doing in the team and how he has been accepted by others in the job environment. Without the

judgment of other employees we can miss out a potential leader or could select a person whocould be unacceptable by others which will lead to unavoidable failure because team work will

not be there. To find out employees perception we will providean evaluation form to his/her

colleagues who work together and will try to find some key points about the employee. Also an

option of critical incident description will be available to find out how good or bad the employee

performs in a certain event. A sample of this evaluation strategy is given below,


EMPLOYEE INFORMATION (COLLEAGUES)

Month 1 Date:

Name of the Employee: Mr. XDepartment: FinanceCurrent Designation: Financial Manager

appraisers Department appraisers Current Designation:

Appraiser ( Colleagues Name) Sign

Score this employee based on his/her capability and knowledge in the following areas in terms of their

current (and if applicable, next) role requirements: Give 1 -for Highly Agree, 2-Agree, 3- Neutral,

4-Disagree, 5- Highly Disagree.

Criteria Highly Agree Neutral Disagree Highly

Employees performs good quality of work

He/she has strong ability to take initiative

He/she is dependable to others

He/she is flexible to work environment

He/she is a good team workerPunctual in his/her job

Has a managing capability

Can he or she bring out innovative ideas in any task

has an ability to work in pressure

Misunderstands group members

Is highly knowledgeable in his field


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43In a short summery explain any incident where this particular employee has performed very well or verry

poorly on your judgement (if any):

Upper Level Supervisors Evaluation:Supervisors evaluation will be based on the complete set of data from Self Evaluation Process

and Colleagues Evaluation Process. From each process supervisor will evaluate the employee

will find out how he or she is progressing.

First of all, Based on the data from weekly self-evaluations supervisor will identify how much

the employee is capable of overcoming his expectations by his gradual growth or gradual fall

from the standards. It will give the supervisor a clear picture of employees problem solving

ability, proficiency, creativity, integrity etc. which will be the key elements to seek out the

prospective leader.

Secondly, From the Monthly self-evaluation process supervisor will discover how committed the

person is to the core values of the organization also how innovative and visionary the person is.

Also, how much the job is satisfying him/her, lacking within her/him or in the organization, his

strategic analyzing capabilities and progressive attitude also come across from there.

In addition to that, colleagues evaluation will finally determine whether he/she is being a good

team player or not and will verify that the employee is actually meeting his/her objective

efficiently or not. In this section the scores given by the colleagues and any critical incident

explained by them will justify the other details and will make the supervisor more certain about

the nature of the employee.

After all those are evaluated by the supervisor based on the collected information and also

his/her personal supervision supervisor will evaluate the employee himself or herself.


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44

After analyzing all the data supervisor scores the employee in some specific categories. A

sample foe supervisors evaluation is given below.


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45


EMPLOYEE INFORMATION (SUPERVISOR)

Month 1 D a t e

Name of the Employee: Mr. XDepartment: FinanceCurrent Designation: Financial Manager

appraisers Department appraisers Current Designation:

Appraiser ( Supervisors Name) Sign

Section 1: Score the employees capability or knowledge in the following areas in terms of

Their current (and if applicable, next) role requirements. Score (1-4 = poor, 5-7 = satisfactory, 8-9

= good, 10 = excellent). If appropriate provideEvidence to support your assessment. The second

section can be used for other criteria or ifThe employees are working towards new role

requirements.

Criteria Poor Satisfactory Good ExcellentCommercial judgmentsTechnical knowledgeTime management

Planning, budgeting and forecastingReporting and administrationCommunication skillsDelegation skills

IT/equipment/machinery skillsCommitmentsCreativityProblem solving and decision makingTeam working and developing othersEnergy, determination and work rateSteadiness under pressure

Leadership and integrityAdaptability, flexibility and mobilityPersonal appearance and imageProgressivenessQuality of workCommitted to company valuesProper use of resources


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46

Lower Level Management Evaluation Process:For lower level employees such as supervisors and general workers we have constructed a simple

Adjective rating scale appraisal system because in this level more than anything productivity,

quality, skill, technical knowledge, time management are the most important facts. So in this

level the objectives of the evaluation,

* To identify most skilled workers and maintaining them to achieve higher productivity

* Identifying weak and unskilled workers and provide training to improve them

* Maintaining the discipline in production process by punishing the violators

In this level a huge number of employees are working. So evaluating each one of them from

different sources and processes is very difficult and complex and also not a good idea because of

the high cost and time it would take. So we have decided that for a group of worker their

corresponding supervisor will evaluate them. First there will be some standard established for

every worker and supervisor will check how much the employees are meeting those standards by

everyday activities. Every day he will collect data for each and every worker in his/her batch and

from those data at the end of every month he/she will fill up an evaluation form concerning each

and every employee. The upper management will supervise the supervisors activities everyday

and he/she will also evaluate him based on those activities. In summery the whole process is,

Section 2: Other criteria and new role requirements (If Any):


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47


WORKERS IN FORMTION (SUPERVISER)

MONTH 1 WORKERS NME: X DATE:

Score the following worker based on the data collected on

pastmonth . Score 1 for verry satisfactory,2-Satisfactory, 3 - Neutral,

4-Dissatisfactory, 5- Very Dissatisfactory

CriteriaVerry

Satifactiory

SatisfactoryNeutral Dissatisfa

-

ctory

Very

Dissatisfa-

ctory

Standard

Quality of the work( Skill, Accuracy,completeness etc)

1

Quantity of the work ( Volume

ProduceDaily)

2

Job Knowledge (Technical skill, designingability, selection of material etc.)

1

Time Management ( Attending on time,working speed)

2

Working in Pressure 1

Energy and Accuracy 2

Attendance 2

Innovative Ideas 3


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48

CONCLUSION:

The core objective of our project knewabout performance evaluation system with minimum

errors which can seek out the valuable potential leaders based on their performance. That is why

we chose a 360 degree performance evaluation system in which employee is constantly

evaluated not only by supervisor or colleagues but also by himself after a period of time. This

will help to evaluate his/her behavior in a great extent and the organization can become an

accomplishment as everyone will try to raise themselves. So, after all, performance appraisal

plays the significance part deciding the future of an organization where employees play the vital

role. Here, our organization mostly conducts the appraisal process based on 360 degree

feedback.it is clearly predictable that such appraisal method has some advantages and some

disadvantages. But the postive outcomes are our main focus for the broader concept. In the 360

degree feedback where we recive revies regarding an employee from almost every posible

sources it also leaves some limitations regarding evaluating anyone. Personal biasness or

favorism are regular phenomena in this case. Above all, the company deals with the appraisal

system with all available resources and based on the inner environment review the organization

can forecast that the employees jobsatisfaction level is at high. a trasparent appraisal process isnecessary for an organization and the company is dealing with it high priority.


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49 References:

Books: Thomas H. Stone, Understanding Personnel Management, Dryden Press. Human resource management by John M Ivancevich. T.V.RAO, Appraising and Developing Managerial performance, 1998,5 th Edition,

Excel Books, pp.71-90. K.ASWANTHAPPA, Human Resource and Personnel Management, 1992, 3 rd Edition,TATA McGraw-Hill, pp.199-240. Personnel Management Edwin B Flippo

Human Resources and Personnel ManagemenK. Ashwathappa Essentials of Human Resource management and Industrial RelationsP.Subba Rao Human Resource managementV.S.P.Rao

Links:

http://www.explorehr.org/articles/Performance_Appraisal/Performance_Appraisal_Methods.html

http://www.explorehr.org/articles/Performance_Appraisal/Performance_Appraisal_Methods.html http://product-ivity.com/types-of-performance-appraisal-methods/ http://www.managementstudyguide.com/performance-appraisal-tools.htm http://www.whatmakesagoodleader.com/Performance-Appraisal-Forms.html http://www.whatmakesagoodleader.com/Performance-Appraisal-Forms.html http://www.performance-appraisal.com/methods.htm http://www.performance-appraisal.com/benefits.htm http://www.strategic-human-resource.com/performance-appraisal-methods.html

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yUAg&redir_esc=y#v=onepage&q=forced%20choice%20description%20method%20per

formance%20appraisal&f=false
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