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Performance Management (Traditional Methods)

The BEATNIKS
Renuka Wakale(13)
Nikhil Deshbhratar(16) Zahid Mirza(19) Mrunali Dafare(20) Digvijay Ghadge(63)

What is Performance Management?

Definition
Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcome to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee , organization and society all benefit.

Objectives of Performance Appraisal


Promotion Decision Compensation Decision Training and Development Programme Feedback

Personal Development

Performance Appraisal Process


Establish Performance Standards Taking Corrective Action Communicate the Standards

Discussing Appraisal Comparing Standards

Measure Actual Performance

Methods Of Performance Appraisals


Individual Evaluation Method Confidential Report Essay Evaluation Critical Incident Graphic Rating Scale Checklists Forced Choice Description Multiple-Person Evaluation Method Paired Comparison Ranking Forced Distribution Other Methods Field Review Group Appraisal

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Confidential Method
Prepared at the end of the year by employees immediate superior. Highlights strengths & weaknesses of subordinate. It is not made public so no feedback available.

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Essay Evaluation
Rater(superior) prepares essay about employee(subordinates). While preparing essay, rater should keep in mind, 1. Job knowledge & potential of employee. 2. Employees understanding of companys policies, programmes, objectives etc. 3. Employees relation with co-workers & superiors. 4. Employees general planning, organising & controlling. 5. Attitude & perception of employee.

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Critical Incidents
Critical Incidents - Poor or Outstanding? Manager prepares lists of statements of effective & ineffective behavior of employee. Manager maintains logs of critical incidents periodically & evaluate them at the end of rating period.

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Graphic or Linear Rating Scale


Printed form is used to evaluate the performance of an employee. Traits considered important are included

Graphic or Linear Rating Scales


Quality of Work Quantity of Work

FACTORS

Personal characteristics

Characteristics related to job performance

Graphic or Linear Rating Scales


Attitude
1 No interest In work: consistent complainer 2 Careless: In-different Instructions 3 Interested in work: Accepts opinions & advice of others 4 Enthusiastic about job & fellow-workers 5 Enthusiastic opinions & advice sought by others

Graphic Rating Scale with space For Comments

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Checklists
A set of objectives or descriptive statements about the employee & his behavior Recent variation in checklist method is weighted checklist

Illustration Is the employee really interested in the task assigned? Yes/No Is he respected in his colleagues? Yes/No Does he respect his superiors? Yes/No Does he follow instructions properly? Yes/No

Individual Evaluation Methods


Confidential Method Essay Evaluation Critical Incidents Graphic Rating Scale Checklist Forced Choice Description

Forced Choice Method


Was developed to eliminate bias & the preponderance of high rating that might occur

Illustrations
Least Most

Does not anticipate difficulties


Grasps explanations Does not waste time Very easy to talk to

Multiple person evaluation techniques


An employee is evaluated in comparison to another

Multiple Person evaluation Technique

Ranking

Paired Comparison

Forced Distribution

Ranking Method
Ranking of an employee in a work group is done against that of another employee The relative position of each employee is expressed in terms of rank Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Ranking employees by paired comparison Method


For the trait Quality of work For Trait the trait Creativity Creativity Employee Rated As Compared to A B C D + + + + + A B C D + -

Employee Rated As Compared to


A B C D + + + A B + C + D +

Here B ranks highest

Here A ranks Highest

Note: + means better than. means worse than. For each chart, add up the number of 1s in each column to get the highest-ranked employee.

Forced distribution method

No. of Employees

10% poor

20%

40%

20% good

10% Excellent

Below average average

Force Distribution Curve

Other Methods
Group Appraisal Field Review

Group Appraisal Method


Employee appraised by group of appraisers. Group consist of various members. Performance of the employee is analysed

Other Methods
Group Appraisal Field Review

Field Review Method


Trained skilled representative of HR department Request is made by HR specialist for information of employee performance Ratings are done on standardised form

Performance Dimensions Leadership Communication Interpersonal Skills Decision Making Technical Skills

Subordinates
^ ^ ^ ^ ^

Peers

Superiors

Customers
^

^ ^ ^ ^ ^ ^

Motivation

Problems with Performance Appraisal


Leniency Halo Error Central Tendency Stereotyping

Lack of rater preparedness

References
Human Resource Management by Aswathappa Human Resource Management by V S P Rao www.google.com

Questions???