Unit - 3

1. Unit - 3 Performance Appraisal

2. Contents Concept Objectives of Performance Appraisal Process Methods- Uses and Limitations

3. Definitions of Performance Appraisal Wendell French, �the formal, systematic assessment of how well employees are performing their jobs in relation to established standards, and the communication of that assessment to employees�

4. Concept of Performance Appraisal Performance Appraisal is a method which involves � Setting Work Standards Assessing Actual Performance Providing Feedback to the Employees

5. Contents Concept Objectives of Performance Appraisal Process Methods- Uses and Limitations

6. Objectives Feedback to Employee Compensation Decisions Reckoner for Promotion / Demotion /Transfer Inputs for Personal Development Reduce Subjectivity Clarity for the Employee Improves Supervision

7. Contents Concept Objectives of Performance Appraisal Process Methods- Uses and Limitations

8. Who will Appraise? Immediate Supervisor Employee�s Peers Self Appraisal Employee�s Subordinates Higher Level Manager Personal Department Specialist

9. When to Appraise? Periodic Appraisals Quarterly, Bi-annually, Yearly

10. What to Appraise? What do we want to evaluate? Extracted from the Job Analysis Mostly Organisational Goals which the employee was responsible for Can also have some Softer Aspects

11. Process of Performance Appraisal Job Analysis Understanding the deliverables Detailing the Job Description Establishing Standards of Performance Setting Performance Standards Benchmarks to Measure Performance Attainable by a Normal Employee Clear & Understandable

12. Process of Performance Appraisal Communicating Performance Standards Appraiser vs. Appraisee Both should be communicated the standards Communication should be written Measuring Actual Performance Objective Measures: Quantitative & Verifiable Subjective Measures: Personal Standards & Opinions

13. Process of Performance Appraisal Comparing Actual Performance vs. Standards Note deviations Could be both positive & negative Reasons for the deviation Analysis of Strengths & Weaknesses Initiating Corrective Action Positive: Discussion & Improvement Plan Negative: Scolding & Warning

14. Essentials of a Good Appraisal Reliability Job Related Standardisation Training to Appraisers Open Communication Employee Access to Results Clear Objectives

15. Contents Concept Objectives of Performance Appraisal Process Methods- Uses and Limitations

16. Performance Appraisal Methods Broadly of two types: Traditional Methods (TM) Modern Methods (MM)

17. TM: Unstructured Method Appraiser describes his impression Unstructured manner Highly subjective in nature Useful at lower levels

18. TM: Straight Ranking Method Ranking of all the employees Same unit, same work profile employees Ranking from best to poorest Highly subjective

19. TM: Paired Comparison Method Employees of a group are compared with one another, one at a time Number of comparisons = (N(N-1))/N Each employee is compared with the other

20. TM: Grading Method Certain categories / grades are determined in advance Grades are based on a variety of parameters Actual performance is compared with parameters to allot a grade

21. TM: Critical Incident Method Performance rated on the basis of certain events that occurred during the performance of the job Incidents represent the outstanding / poor behaviour of the employee Under this technique the behaviour of the employee in all significant incidents is recorded in a book and reviewed at the end

22. MM: Behaviorally Anchored Rating Scales (BARS) Rating scales are created using the following approach � Identify Critical Incidents Select Performance Dimensions Retranslate Incidents Assign Scale Values Rate the employee on the scale

23. MM: Management By Objectives (MBO) What � How approach? Substitutes good intentions with a process where everything is put in black & white Process Define Role Define KRAs Indicators of Effectiveness Set SMART objectives Monitor

24. MM: 360 Appraisal 3 levels of employees rate the performance Superior Peers Subordinates Holistic view Rules out the bias of any one person