8/2/2019 pptprms-101028080102-phpapp02

1/18

PERFORMANCE APPRAISAL

MANAGEMENT SYSTEM

PRESENTED BY:DIVYA SHARMA

(MBA SOMG)

8/2/2019 pptprms-101028080102-phpapp02

2/18

TOPICS INCLUDED:

INTRODUCTION.

NEED OF PERFORMANCE APRRAISAL.

PERFORMANCE APRRAISAL Vs PERFORMANCE

MANAGEMENT.

MODEL.

PROCESS.

METHODS OF APRRAISALS.

DIFFERENCE BETWEEN TRADITIONAL APRRAISAL &MORDERN APRRAISAL.

LIMITATIONS.

8/2/2019 pptprms-101028080102-phpapp02

3/18

8/2/2019 pptprms-101028080102-phpapp02

4/18

NEED OF PERFORMANCE

APPRAISAL

Give feedback on performance toemployees.

Identify employee training needs.

Document criteria used to allocateorganizational rewards.

Form a basis for personnel decisions:salary increases, promotions, disciplinaryactions, etc.

http://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Documenthttp://en.wikipedia.org/wiki/Rewardhttp://en.wikipedia.org/wiki/Rewardhttp://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Promotion_(rank)http://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Promotion_(rank)http://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Disciplinehttp://en.wikipedia.org/wiki/Promotion_(rank)http://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Rewardhttp://en.wikipedia.org/wiki/Documenthttp://en.wikipedia.org/wiki/Training

8/2/2019 pptprms-101028080102-phpapp02

5/18

.

Provide the opportunity for organizational

diagnosis and development.

Facilitate communication betweenemployee and administraton

Validate selection techniques and humanresource policies to meet federal Equal

Employment Opportunity requirements

http://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunityhttp://en.wikipedia.org/wiki/Equal_Employment_Opportunity

8/2/2019 pptprms-101028080102-phpapp02

6/18

DIFFERENCE BETWEENPERFORMANCE APPRAISAL

Top down assessment.

Annual appraisal meeting.

Use of rating.

Monolithic system.

Focus on quantified objectives.

Often linked to pay.

Bureaucratic- complex paperwork.

Owed by the HR department.

PERFORMANCE MANAGEMENT

Joint process through dialogue.

Continuous review with one or moreformal reviews.

Rating less common.

Flexible process.

Focus on value and behaviors as wellas objectives.

Less likely to be direct link to pay.

Documentation kept to be minimum.

Owed by line managers.

8/2/2019 pptprms-101028080102-phpapp02

7/18

MODEL OF PERFORMANCE

APPRAISAL

8/2/2019 pptprms-101028080102-phpapp02

8/18

Process of performance appraisal

MEASURING ACTUAL

PERFORMANCE

COMPARINGWITH STANDARDS

SETTING PERFORMANCE

STANDARDS

8/2/2019 pptprms-101028080102-phpapp02

9/18

8/2/2019 pptprms-101028080102-phpapp02

10/18

Methods of performance appraisals

Essay appraisal :

Narrative description of the employee strength,weakness, past performance and suggestions forimprovement in raters own words.

Critical incident appraisal :

Key behavior of an employee like aggressive orimaginativeor relaxed" but does not tell anything about howwell the job has been done.

Checklist :

Evaluator uses a list ofbehavioral description", goes down the

list and give yes or no responses. he checks and ticks the items.

Graphic rating scale :

The assessor goes down the list of factors and notes thatpoint along the scale that best describe the employee.

8/2/2019 pptprms-101028080102-phpapp02

11/18

ContForced choice:

Among the mentioned statements the rater have to make choicewhich statement is most descriptive of the individual being evaluated.

Behaviorally anchored rating scale( BARS) :

These scales are descriptions of various degrees of behaviorrelating to an aspect of performance dimension.

Ranking method :

Under this method a man is compared with all the otheremployees without any specific factors.

8/2/2019 pptprms-101028080102-phpapp02

12/18

Cont

Confidential report:

It is a descriptive appraisal involves a lot of subjectivitybecause it based on impressions rather than on data.no feedbackis provided to the employee being appraised.

Group appraisal method:

A group of evaluators assesses the employee. Personal bias isminimized due to multiple evaluators, but it is consuming method.

Field review method:

Under this method ,the line manager do not themselves fillup the rating form .instead representatives from the personneldepartement come to the shop floor and interview the supervisorsto obtain information about their employees.

8/2/2019 pptprms-101028080102-phpapp02

13/18

ContAssessment centre method:

A group of employees is drawn from different work units.They work together on an assignment . The employees areevaluated both individually and collectively, under this method,job related characteristics are evaluated to determine employeepotential for promotion.

Human resource accounting method:

Competent and well trained employees are a valuable asset ofan organization. Performance is judged in terms of costs andfinancial gains.

Appraisal by objectives:

Employees are evaluated by how well they accomplish aspecific set of objectives that have been determined for their job.This method is also known as management by objectives(MBO).

8/2/2019 pptprms-101028080102-phpapp02

14/18

Difference between traditional and modernperformance appraisal methods

CATEGORIES TRDITIONALAPPRAISAL

SYSTEMATICMORDERNAPPRAISAL

Guiding values Individualistic, controloriented,documentory

Systematic,Developmental,

problem solving.

Leadership styles Directional,evaluative

Facilitative, coaching.

Frequencies Occasional. Frequent.

Formalities High Low

Reward Individualistic. Grouped,organizational.

8/2/2019 pptprms-101028080102-phpapp02

15/18

LIMITATIONS /PROBLEMS OF

PERFORMANCE APPRAISAL

Clarity of standards.

Problems of bias.

Excessive leniency or strictness.

Halo error.

Influence of a mans job.

8/2/2019 pptprms-101028080102-phpapp02

16/18

Cont

Recency error.

Similarity error.

Stereotyping.

Central tendency.

Discrimination.

8/2/2019 pptprms-101028080102-phpapp02

17/18

CONT..

Incompetence.

Negative approach.

Resistance.

Mere formality.

Varying standards.

Contrast error.

8/2/2019 pptprms-101028080102-phpapp02

18/18