Performance Appraisal:Is a systematic evaluation by the supervisor or some qualified

person of an individual worker’s performance. Performance

appraisal is used for measuring the merit or performance of an

Employee and comparing it with that of others in the same

group, the purpose of performance appraisal is to determine

an employee’s worth to the organization.

IT RATES THE MAN AND NOT THE JOB!

DIFFERENCE BETWEEN

PERFORMANCE APPRAISAL

AND JOB EVALUATION1. Performance appraisal is concerned with comparative

merit of individual. While Job evaluation analysis the job not take into account the individual abilities of the job holder.

2. It considers the individual abilities while the Job Evaluation considers the requirement of the job in terms of job specification and job description.

3. The purpose of performance appraisal is to take the decisions regarding the pay, transfer, Promotion, etc. while the purpose of job evaluation is to determine the worth of the job.

4. Performance appraisal rates the man not the job but job evaluation determines the relative worth of the job.

5. Performance appraisal helps in making decision like transfer or promotion while job evaluation helps in making decisions regarding wage policy.

REQUISITE FOR EFFECTIVE AND SUCCESSFUL

PERFORMANCE APPRAISALDocumentation Effective- Continuous noting and documenting of the performance.

Practical and Simple Format- the P. A. should be simple, clear, fair and objective.

Communication Effective- the expected result should be communicated.

Feedback- should be developmental and not judgmental

Personal Bias- Interpersonal relationships can influence the evaluation.

RATING SCALE METHOD

-Is commonly used method for assessing the performance of the employees and a well-known traditional method of performance appraisal of employees.

1 2 3 4 5 6 7 8 9 10

EXTREMELY POOR

EXCELLENT

EX. : Attitude of employee towards his superiors, colleagues and customers:

ESSAY APPRAISAL METHOD:

-Also known as the “free form method” involves a description of the performance of an employee by his superiors. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidence to support the information.

While preparing the essay, the rater should consider the following:

Job knowledge and potential of the employee. employee’s understanding of the company’s programs, policies, objectives etc.The employee’s relationsThe employee’s general planning, organization, and controlling abilityThe attitude and perception of the employee, in general.

RANKING METHOD:

-Under the ranking method, the manager

compares an employee to other similar

employees,

rather than to a standard measurement. An

offshoot of ranking is the forced distribution

Method, which is similar to grading on a curve.

PAIRED COMPARISON:

-A better comparison method than the straight ranking method. This method compares eachemployee with all others in the group, one at a time. After all comparison on the basis of the overall comparisons, the employees are given the final ranking

CRITICAL INCIDENTS METHOD:

~Developed by Flanagan and Burns. The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represents the outstanding r poor behavior of the employee on the job. The manager maintains logs on each employee.

EX. July 20 – the sales clerk patiently attended to the customers complaint. He is polite, Prompt, enthusiastic in solving the customer’s problem.

On the other hand the bad critical incident may appear as under:

July 20 – the sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager’s call thrice. He is lazy, negligent and uninterested in work

CONFIDENTIAL REPORT SYSTEM:

-A well known performance appraisal system mostly used by the government organizations.In this method, subordinate is observed by his superiors regarding his performance in the joband on his duties. Thereafter, the superior write confidential report on his performance, mainlyOn his behavior in the organization and conduct.

Key factors assessed in Confidential Report writing:

Character and conduct of an employeeAbsenteeism of an employeeKnowledge of an employeeHis nature and quality of workPunctualityUnauthorized absenteeismBehavior of the employee towards colleagues, superiors and with publicAbility of supervisionHis/Her integrity and honestyComplaints against co-workers

CHECKLIST METHOD:

-The rater is given a check list of the description of the behavior of the employee on the job.

EX.Is the employee really interested in the task assigned? YES/NOIs he respected by his colleagues YES/NO

GRAPHIC RATING SCALE:

This is a very popular traditional method of performance appraisal. Under this method, coreTraits of employee pertaining to his job are carefully defined like Attitude, Knowledge of Work, Management Skills, Team Workers, Honesty, Regularity, Accountability, Interpersonal Relationships, Creativity, Discipline, etc. These traits are allotted with a numerical scale to tabulate the scores gained by appraisee in the performance assessment relating to his job by Appraiser.

Performance trait Excellent Good Average Fair Poor

Attitude 5 4 3 2 1

Knowledge of Work 5 4 3 2 1

Management Skills 5 4 3 2 1

Teamwork 5 4 3 2 1

Honesty 5 4 3 2 1

Regularity 5 4 3 2 1

Accountability 5 4 3 2 1

Example:

FORCED DISTRIBUTION:

-Is a method of performance to rank employee but in order of forced distribution.The system requires the managers to evaluate each employee, and rank them typically into oneof three categories (excellent, good, poor)

ASSESSMENT CENTRES:

An assessment center typically involves the use of methods like social events, tests and exercises, assignments being given to a group of employee to assess their competencies toTake higher responsibilities in the future.

The major competencies that are judged in assessment centers are interpersonal skills, Intellectual capability, planning, motivation, career orientation etc. assessment centers are also effective way to determine the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES:

-Or “BARS”, is a relatively new technique which combines the graphic rating scale and criticalincidents method. It consists of performance critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad. These statements are developed from critical incidents.

PERFORMANCE POINTS BEHAVIOR

Extremely good 7 Can expect trainee to make valuable suggestions for increased sales…

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 goods in time

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

Poor 2 Cab expect to inform only a part of the customers

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

EXAMPLE OF BARS

HUMAN RESOURCE ACCOUNTING METHOD:

Is a method to measure the effectiveness of personnel management activities and the use ofpeople in an organization. HRA is the process of assigning, budgeting, and reporting the costof human resources incurred in an organization, including wages and salaries and training expenses

MANAGEMENT BY OBJECTIVES:“ management by objectives is a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of the results expected of him, and use these measures as guide for operating the unit and assessing the contribution of each of its members.” –Dr. George S. Odiorne

Thus, MBO is a mutual goal-setting, measuring progress towards the goals, taking action toAssure goal attainment, feedback and participation.

ORGANIZATIONAL OBJECTIVES REVIEWED

EMPLOYEE OBJECTIVE SET

PROGRESS MONITORED

PERFORMANCE EVALUATED

ACHIEVERS REWARDED

The MBO Process!

ORGANIZATIONAL OBJECTIVES REVIEWED

EMPLOYEES OBJECTIVES SET

PROGRESS MONITORED

PERFORMANCE EVALUATED

ACHIEVERS REWARDED

CUSTOMERS FEEDBACK METHOD:

Used especially for sales staff who deal with sales activity in the organization. Under this method of appraisal, customers feedback is directly linked with employee performance. This method of assessment could be unbiased and reliable since customers who are outsiders may give correct judgment about employee performance than the insiders who are superiors.

1. The Halo Error

This happens when one person rates another person on

several different dimensions and gives a similar rating

for each dimensions.

2. The Leniency Error

managers tend to give relatively high ratings to

virtually

everyone under their supervision.

3. The Central Tendency Error:

SELF

MANAGER

PEERS

SUBORDINATES

OTHERS

Happens when managers lump everyone together around the average,

or middle category.

This gives an impression that there are no very good or very poor

performance.

4. Strictness Errors

The direct opposite of Leniency Errors, which is where a manager

tends to give everyone low rating

0%

5. Recency Errors

This occurs when a rater allows recent events to influence a

performance appraisal rating over earlier ones.

6. Personal Bias Error

Occurs when expectations and prejudices cause a rater to fail to

give the job holder complete respect.

Example is race or gender discrimination

www. About.com/Performance-appraisal

http: //live.surveyshack.com/The-5-Biggest-Performance-Apparaisal-Errors

http://managementation.com/difference-between-performance-appraisal-and-job-evaluation

http://www.managementstudyguide.com/prerequisite-for-performance-management-system.htm

http://www.whathumanresource.com/traditional-methods-of-performance-appraisal

http://www.whathumanresource.com/modern-methods-of-performance-appraisal