Performance Appraisal

What is performance apprisal?

Traditional Methods Group Appraisal Man to man comparison method Checks lists Straight ranking method Critical Incidents Forced Distribution Method Free essay method Field Review Method Graphic Rating scales

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Modern Methods

Assessment Center

Behaviorally Anchored Rating scales

Human Asset Accounting

Management by Objectives

Grading
3600 Appraisal

 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.

 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 employees performance of a job in terms of its requirements.

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Method of performance appraisal

Traditional Methods
1. 2. 3. 4. 5. Straight ranking method Man to man comparison method Grading Graphic Rating scales Forced choice Description method 6. Forced Distribution Method 7. Checks lists 8. Free essay method 9. Critical Incidents 10. Group Appraisal 11. Field Review Method

Modern Methods 1. Assessment Center 2. Appraisal by Results or Management by Objectives 3. Human Asset Accounting 4. Behaviorally Anchored Rating scales

Straight ranking method

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. The ranking of a man in a work group is done against that of another
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Paired comparison technique

A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

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Man to man comparison method

By this method certain factors are selected for the design by the rater for each factor. A scale of man is also created for each selected factor. Each man to be rated is compared with the man in the scale, and certain scores for each factor are awarded to him. So, instead of comparing a whole man to a whole man personnel are compared to the key man in respect of one factor at a time. This method s used in job evaluation and is called the factor comparison method. In performance appraisal it is not of much use because the designing of scales is a complicated task.

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GRADING
The rater considers certain feature and marks them accordingly to a scale Features may be analytical ability cooperativeness, dependability, self-expression, job knowledge, judgement etc

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GRAPHIC RATING SCALE

In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the onthe-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

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FORCED DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

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CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

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ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as Free Form method involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
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CRITICAL INCIDENTS METHODS

In this method of performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur
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Group appraisal
In this method employee are rated by an appraisal group consisting of supervisors. They explains to the group the nature of his subordinates duties. The group then discuss the std of performance for that job.

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Field review
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias.

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MBO
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.
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Assessment center method

The purpose of this method was test candidates in social situations, using a number of assessors and a variety of procedures. The most important feature of the assessment center is job-related simulations

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Under this method, many evaluators join together to judge employee performance in several situations. Assessment are made to determine employee potential for the purpose of promotions, training and development etc

HUMAN RESOURCES ACCOUNTING

Human resources accounting deals with a cost and contribution of human resources to organizations. Cost of employees include man power planning, recruitment, selection, induction ,placement ,training and development ,wages etc.. Employees contribution is many value of employees services which can be measure by employee productivity or value added human resources.
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360 Degree Appraisal

In this method an employee can be appraised by supervisors ,peers ,subordinates ,employees themselves users of service and consultants. Performance appraisal by all these parties called as 360degree appraisal.

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BARS
This is new appraisal technique it provides better more equitable appraisal Behaviourlly anchored rating scale is 5 stepped
1. 2. 3. Generate critical incidents: person with knowledge of job to be appraised Develop performance dimensions: cluster the incidents into a smaller set Reallocate incidents: people who also know the job then reallocate the orginal Scale of incidents: performance on appropriate dimension Develop final instrument: behaviour anchors for the performance dimensions
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4. 5.

Thank you

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