Published on September 16, 2014
INTRDUCTION Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development.
Important of appraisal Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administraton Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements
DIFFERENCE BETWEEN PERFORMANCE 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 more formal reviews. Rating less common. Flexible process. Focus on value and behaviors as well as objectives. Less likely to be direct link to pay. Documentation kept to be minimum. Owed by line managers.
MODEL OF APPRAISAL
METHODS OF APPRASISAL Essay appraisal : Narrative description of the employee strength ,weakness, past performance and suggestions for improvement in rater’s own words. Critical incident appraisal : Key behavior of an employee like “aggressive” or “imaginative” or “relaxed" but does not tell anything about how well the job has been done. Checklist : Evaluator uses a list of “behavioral 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 that point along the scale that best describe the employee.
Forced choice: Among the mentioned statements the rater have to make choice which statement is most descriptive of the individual being evaluated. Behaviorally anchored rating scale ( BARS) : These scales are descriptions of various degrees of behavior relating to an aspect of performance dimension. Ranking method : Under this method a man is compared with all the other employees without any specific factors.
Assessment centre method: A group of employees is drawn from different work units. They work together on an assignment . The employees are evaluated both individually and collectively, under this method ,job related characteristics are evaluated to determine employee potential for promotion. Human resource accounting method: Competent and well trained employees are a valuable asset of an organization. Performance is judged in terms of costs and financial gains. Appraisal by objectives: Employees are evaluated by how well they accomplish a specific set of objectives that have been determined for their job. This method is also known as management by objectives(MBO).
Methods of appraisal
Difference between traditional and modern performance appraisal methods CATEGORIES Guiding values TRDITIONAL APPRAISAL Individualistic, control oriented,documentory SYSTEMATIC MORDERN APPRAISAL Systematic, Developmental, problem solving. Leadership styles Directional, evaluative Facilitative, coaching. Frequencies Occasional. Frequent. Formalities High Low Reward Individualistic. Grouped, organizational.
Why Appraisals Are Important Set goals Recognize performance Guide progress Identify problems Improve performance Discuss career advancement
Performance Appraisal : past-oriented methods Rating scale Confidential report Essay evaluation Critical incident method Checklists Forced choice method Behaviorally anchored rating scale Ranking
Appraisal System Areas like capability assessment, including capability gaps and training needs, placement of right people in the right places, career plan, employee motivation etc. are areas receiving scant or no attention. Most HR Managers go through the performance appraisal in a rather mechanical way and treat them as they treat the plethora of statements that are prepared by banks for submission to various authorities
ex: Presently HR Manager in banks, if there are any, are clearly not in the know-how of what all uses a performance appraisal, if done in a scientific way, can be put to.
A well designed performance appraisal should give employees answers to questions such as – What am I expected to do How well am I doing What are my strengths and weaknesses How can I do a better job and How can I contribute more towards the organisational goal.
What Performance Appraisal should deliver • Evaluate goals • Provide feedback to the appraisee • Develop valid data for pay and promotion decisions • Provide means of putting subordinates on notice about unsatisfactory performance.
• Enable coaching and developmental goals. • Develop contacts through discussions with subordinates. • Motivate subordinates through recognition and support. • Strengthen supervisor-subordinate relation. • Diagnose individual and organisational problems.
How Managers can apply the systems approach The system view looks at factors such as- Relation with the environment The efficiency with which the org. transforms inputs into outputs The clarity of internal communications. The level of conflict among the group The degree of job satisfaction
Groups’ and Teams’ Contributions to Organizational Effectiveness
Approaches to measuring organizational effectiveness External resource approach Internal systems approach Technical approach
External resource approach : A method managers use to evaluate how effectively an organization manages and controls Its external environment Suppliers Customers Competitors government
Internal systems approach: • A method that allows managers to evaluate how effectively an organization functions and operates • Structure • culture • Flexibility • Co-ordination • Motivation
Technical approach A method managers use to evaluate how efficiently an organization can convert some fixed amount of organizational resources into finished goods and services Technical effectiveness is measured in terms of productivity and efficiency (output: input) Process technology
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The MBA Program Elective in HRM – Group G: Performance Measurement and Reward Systems ICMR 10-Feb-2009 Page 2 of 3 STUDY PLAN Introduction