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Performance Appraisal
The systematic, periodic and an
impartial rating of an employees excellence in the matters pertaining to::His present job His potential for a better job
desired performance. Exercising organizational control. Feedback to the employees regarding their past performance.
development.
To reduce the grievances of the employees.
::Appraisals Assist::
Employee Training Needs Assessment
Organizational Performance
Succession Planning TQM Change organizational Culture
Process
Establishing Standards
Providing feedback
Corrective Actions
documenting the performance Standards / Goals --should be clear, easy to understand, achievable, motivating, time bound and measurable Practical and simple format - The appraisal format should be simple, clear, fair and objective.
evaluation technique should be selected Communication Expected results should be communicated to the employees as well as the evaluators Feedback Should be developmental rather than judgmental Personal Bias --evaluators should be trained to carry out appraisals without personal bias
Payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance
76%
Deciding future goals and course of action 42% Promotions, demotions and transfers 49% Other purposes 6% (job analysis and providing
method for determining and justifying the salaries of the employees Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees
Traditional Approach
A past oriented approach
past performance
of the employees
Did not consider the
developmental
Modern approach
Performance appraisal processes are
structured.
Apart from the routine HR Functions, Modern approach to
performance appraisals includes a feedback process This improves the communication between superiorsubordinates
The modern approach to is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.
Balanced Scorecard
The balanced scorecard provides a list of
measures that balance the organizations internal and process measures with results, achievements and financial measures. The two basic features of the balanced scorecard are:
A balanced set of measures based on. the four perspectives of balanced scorecard Linking the measures to Employee Performance
These are the measures related to the organizations internal processes which help to achieve the customer satisfaction.
Infrastructure, The long term and short term goals and objectives, Organizational processes and procedures, Systems and the human resources. organization's ability to learn, Innovations and improvements Key competencies Value added and the revenue per employee.
ESSAY APPRAISAL METHOD STRAIGHT RANKING METHOD PAIRED COMPARISON CRITICAL INCIDENTS METHODS FIELD REVIEW CHECKLIST METHOD GRAPHIC RATING SCALE FORCED DISTRIBUTION
Modern Methods
Assessment Center Human Resource Accounting Behaviorally Anchored Rating Scales MBO 360 Degree Appraisals
Salary = De-motivated Employee Accurate Review + No Change in Salary = De-motivated Employee Accurate Review + Increased Salary = Highly Motivated Employee
Performance appraisal
. process encourages accountability, approvals and discourages the spirit of creativity and initiative by employees and also Demotivates them are conducted by managers who are often not trained to be appraisers. .This obstructs the genuine feedback, leading to incorrect and unreliable data regarding the performance of the employees Example:: BPOs, Government Organizations Etc
continuous accountability and check can cause emotional stress for the employees. Therefore, it is recommended to create such a work culture where
the employees are made responsible for their own performance and development the managers / superiors suggestions, inputs are encouraged and incorporated in the actions.
increases, rewards on some accomplishments, tem bonuses, profit and gain sharing Motivating peopleChallenging work, Reminding them about their personal goals Creating an organization with a culture that Encourages creativity, Fosters innovative efforts and productivity, Teamwork, Reformulating strategic plans and assumptions but can be effectively put into place without the need of performance appraisals
For middle level managers Performance of the departments or teams Co-ordination with other departments Optimal use of resources Costs Vs. revenues for a given period of time The communication with superiors and subordinates
For front line supervisors Quantity of actual output against the targets Quality of output against the targets Number of accidents in a given period Rate of employee absenteeism
turning towards career development Trend towards a 360-degree feedback system The problems in the performance appraisal processes are being anticipated and efforts are being made to overcome them. Rank and Yank Strategy or Up or Out Strategy Team Performance Appraisal
Points to be Remembered
What is the purpose of performance appraisals? How should the self appraisal be used? How should the ratings be given if there has been a
change of supervisor or manager during the period of the appraisal? How can input/feedback be collected for the appraisal process? What if the employee refuses to agree or/and accept the review? How do you deal with an average or a nonperformer?
:::Don't let employees come into the Performance Appraisal blindly or leave blindly, without a sense of direction or accomplishment!:::
:::Thankyou:::