Unit -6

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 federalEqual Employment Opportunity requirements

DIFFERENCE BETWEENPERFORMANCE 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 forimprovement in rater’s own words.

Critical incident appraisal :Key behavior of an employee like “aggressive” or

“imaginative” or “relaxed" but does not tell anything abouthow 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 andticks 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 whichstatement is most descriptive of the individual being evaluated.

Behaviorally anchored rating scale( BARS) :

These scales are descriptions of various degrees of behavior relating to anaspect 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 areevaluated both individually and collectively, under this method,job related characteristics are evaluated to determine employeepotential 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 andfinancial 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