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The Performance Appraisal System.

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The Performance Appraisal System.

  1. 1. The Appraisal System. Concepts of Appraisal & Appraisal Methods Presenters: [Group 2] Roll Nos. ARKAPAL SIL 09 ARUN MOHTA 12 BINIT KUMAR DAS 14 ARPO MUKHERJEE 11 ADITYA SINGH BAIS 13 ANKUR ANAND 08
  2. 2. CONTENTS Definitions Meaning Objectives of Performance Appraisal Methods of Performance Appraisal 360 degree performance appraisal Issues in appraisal system Advantages Disadvantages Conclusion
  3. 3. Definitions According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
  4. 4. Meaning Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
  5. 5. Objectives of Performance Appraisal According to: Employee Organization Concrete and tangible Measuring the efficiency particulars about their work Maintaining organizational Assessment of control. performance Aims at: Mutual goals of the  Personal development employees & the organization.  Work satisfaction Growth & development  Involvement in the Increase harmony & enhance organization. effectiveness
  6. 6. Methods of Performance Appraisal Traditional Methods Modern Methods 1. Paired comparison 1. Assessment Center 2. Graphic Rating scales 2. Appraisal by Results or 3. Forced choice Description method Management by 4. Forced Distribution Method Objectives 5. Checks lists 3. Human Asset 6. Free essay method Accounting 7. Critical Incidents 4. Behaviorally Anchored 8. Group Appraisal Rating scales 9. Field Review Method 10.Confidential Report 11.Ranking
  7. 7. Paired Comparison Method • Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair. • It is useful where priorities are not clear • This method is not appropriate if a large number of employee are required to be evaluated.
  8. 8. Ranking employees by paired comparison Method For the Trait “Quality of For the Trait “Creativity” work” Person rated Person rated As compared to A B C As compared to A B C A - + + A + - + - + - + + + B + - + B -- ++ - - - + - C ++ -- + + C ++ -+ + -
  9. 9. Graphic or Linear Rating Scales • A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait. • It includes the employee characteristics and employee contribution
  10. 10. Graphic or Linear Rating Scales Attitude 0 5 10 15 20 No interest Careless: Interested in Enthusiasti Enthusiastic In work: In-different work: c about job opinions & consistent Instructions Accepts & advice complainer opinions & fellow- sought by advice of workers others others Decisiveness 0 5 10 15 20 Slow to Take Takes Take Take take decisions decisions decisions in decisions decisions after careful promptly consultation without consideration with others consultation whose views he values
  11. 11. Forced choice method Criteria Rating 1.Regularity on the job Most Least •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
  12. 12. Forced distribution method No. of 40% 20% employees 10% 20% 10% poor Below average good Excellent average Force distribution curve
  13. 13. Critical Incident method Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1
  14. 14. Specimen of Staff Assessment Form [Descriptive Essay Type] Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1. Appraisal must cover the period of the preceding 12 months 2. Consideration to every function & responsibility of the job 3. An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability 1. Promotion now 2. Within 2 years 3. Within 5 years 4. Unlikely to qualify for promotion Section III Career Development Section IV Notes on Interview with employee Section V Comments on & Endorsement by Reviewing Authority
  15. 15. Field review method Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
  16. 16. Management By Objectives The MBO concept, as was conceived by Drucker, reflected a management philosophy which values and utilizes employee’s contributions. Application of MBO in the field of performance appraisal is a very recent thinking.
  17. 17. MBO Process Set organizational goals Defining performance target Performance review Feedback
  18. 18. Behavioral Anchored Rating Scales Performance Points Behavior Extremely 7 Can expect trainee to make valuable suggestions good for increased sales 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 & roam around purposelessly.
  19. 19. 360 degree performance appraisal
  20. 20. 360 degree performance appraisal
  21. 21. Examples of 360 degree performance appraisal method These companies are using 360 Degree Performance Appraisal Method Wipro Maruti Udyog Infosys HCL Technologies Reliance Industries Wyeth Consumer Health (WCH)
  22. 22. Issues in appraisal system Formal and informal What methods? Whose performance? When to evaluate? Appraisal Who are the raters? Design What problems? What to evaluate? How to solve?
  23. 23. Advantages Provide a record of performance over a period of time. Can be motivational Provide an with the support of a opportunity for a good reward and manager to meet & compensation discuss performance Provide an opportunity for an Provide the employee employee to discuss with feedback about issues and to clarify their performance expectations
  24. 24. Disadvantages If not done appropriately, can be a negative experience. Very time consuming, especially for a manager Subject to rater errors & biases. If not done right can be a complete waste of time. Can be stressful for all involved
  25. 25. Conclusion  Because many of the more conventional performance appraisal methods have often proved unpopular with those being appraised and evaluators a like, 360 is gaining popularity with many managers and employees.  It offers a new way of addressing the performance issue.  When used with consideration and discipline, feedback recipients will feel that they're being treated fairly.  In addition, supervisors will feel the relief of no longer carrying the full burden of assessing subordinate performance.  The combined effect of these outcomes should result in increased motivation, which in turn improves performance.

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