Performance Appraisal &

Reward System

Prof.B.G.VarmaProf.B.G.Varma

Performance Appraisal & Reward System

Performance means the process of carrying out a work, demonstrating capabilities, to a specific standard, with perfection.Appraisal means an assessment of individual -measurable conspicuous contributions, both qualitatively & quantitatively, in fulfilling, a particular task.

PA helps to appreciate employees strength and to find out the Areas Needs Improvement that can be supported to facilitate them to improve their performance continuously.The effective Appraisal System is extremely important for a growing, expanding and diversifying Organization.

BGV

Every individual in the Organization has certain basic needs in relation to his work. These may be stated as:

“Agree with me, What is expected of me”

“Give me an opportunity to perform”“Develop me to do my job perfectly”

“Reward me according to my contributions”

It envisages in a formal way the Team Leader and Team Members Relationship. This Relationship itself symbolizes how the individuals experiences the working life and how he contributes to the Organizational Goals.

BGV

Every individual in the Organization has certain basic needs in relation to his work. These may be stated as:

“Agree with me, What is expected of me”

“Give me an opportunity to perform”“Develop me to do my job perfectly”

“Reward me according to my contributions”

It envisages in a formal way the Team Leader and Team Members Relationship. This Relationship itself symbolizes how the individuals experiences the working life and how he contributes to the Organizational Goals.

BGV

While appraising it is necessaryto look at

Business Objectives During the the Appraisal Period

Based on several experiences in various Organizations, this Appraisal System has been evolvedit attempts to focus on work and on reducing subjectivity as far as possible.It incorporates the stating of clearly defined objectives between the Team Leader and Team Members. It is based on actual Performance and actual behavior on the job.It focuses on individual potential and its development.

BGV

PERFORMANCE RATING

ORDINARY PERFORMANCEInadequate Performance

Partially achieved objectives with no effective utilization of resources.

Needs to be pushed.

SATISFACTORY PERFORMANCEAdequate Performance of allotted responsibilities and

achievement of expected standardsExhibits a fair amount of self-reliance

Can be depended on results with minimum supervision.

BGV

OUTSTANDING PERFORMANCE

Has exhibited through performance.Complete mastery of the present job.

Is a resource to the Organization beyond his present assignments particularly in the building of people and systems.A high level contributor to the Organizational results and displaying unique leadership qualities.

GOOD PERFORMANCE

Performance which is over and above allotted responsibilities and expected standards.Something extra in the form a higher output or effort, better quality, insight and improvement in SystemDependable without Supervision.

BGV

New approach to PANew approach to PA

The Appraisal Process has undergone a The Appraisal Process has undergone a change in terms of being very Formality change in terms of being very Formality Driven to very People Driven.Driven to very People Driven.

Companies are increasingly realizing Companies are increasingly realizing that an effective Appraisal System that an effective Appraisal System should contain two basic tenets. should contain two basic tenets.

-- Transparent Evaluation Transparent Evaluation -- Feed Back ConsiderationFeed Back Consideration

The most popular tool that has recently The most popular tool that has recently gained currency is gained currency is The 360 Degree The 360 Degree PerformancePerformance AppraisalAppraisal - The exercise in - The exercise in which total Feed Back is taken from which total Feed Back is taken from Superiors, Peers, Sub-ordinates, Customers Superiors, Peers, Sub-ordinates, Customers – internal & external etc.– internal & external etc.

The Transparency of the system allows The Transparency of the system allows employees a better understanding of an employees a better understanding of an organization and people in all levels and organization and people in all levels and what performance they are expecting from what performance they are expecting from each employee.each employee.

360 Degree Exercise also includes Personal 360 Degree Exercise also includes Personal Development Plan. The PDP system Development Plan. The PDP system discusses the strengths and areas of discusses the strengths and areas of improvement and tries to find out whether improvement and tries to find out whether the employee has adjusted to his role in the the employee has adjusted to his role in the Organization Culture. Employees are Organization Culture. Employees are encouraged to identify their own encouraged to identify their own Performance Problems. The team leader Performance Problems. The team leader explores to identify the individual inherent explores to identify the individual inherent talents with the help of total feed back.talents with the help of total feed back.

Business plans of companies are divided into Business plans of companies are divided into units/depts./individual goals. Each Dept Head units/depts./individual goals. Each Dept Head divides on goals for each employee which divides on goals for each employee which are known as KPI ( Key Performance are known as KPI ( Key Performance Indicators).Indicators).

Each employee has target that represents the Each employee has target that represents the qualitative and quantitative parameters of his qualitative and quantitative parameters of his job. The parameters on which ratings are job. The parameters on which ratings are done have also undergone a transformation. done have also undergone a transformation. Employees are rated on qualities of idea, Employees are rated on qualities of idea, ability to work, copability with people, ability to work, copability with people, environment and leadership capabilities.environment and leadership capabilities.

Mission, Vision and Values of an Mission, Vision and Values of an Organization and their people should Organization and their people should be clear in all aspects with be clear in all aspects with transparency and its periodical transparency and its periodical review is essential. Such reviews review is essential. Such reviews help to keep the employee’s morale help to keep the employee’s morale high to achieve Performance high to achieve Performance Perfection.Perfection.

Online AppraisalOnline Appraisal The new buzzword that is being heard in The new buzzword that is being heard in

some corporate is “The Online Appraisal”. some corporate is “The Online Appraisal”. In this system the individual on In this system the individual on assignment basis appraise himself, then assignment basis appraise himself, then first it goes to his immediate superior, first it goes to his immediate superior, then up the hierarchy. This ensures that then up the hierarchy. This ensures that appraiser too, carefully scrutinize their appraiser too, carefully scrutinize their own perceptions, motives and own perceptions, motives and assignments entrusted to the appraisee.assignments entrusted to the appraisee.

Performance AppraisalPerformance Appraisal

Model FormatModel Format

EMPLOYEE PERFORMANCE APPRAISALPERIOD_________________

UNIT : DEPT :NAME : AGE :QFLN : DESIG : PRE-EXP : D.O.J : MARITAL STATUS: LAST PROMOTION DATE:

FACTORS RATING REMARKS

WORK KNOWLEDGE(Skills & Competency)

APTITUDE(Interest in Work)

ATTITUDE(Proactive Approach)

INITIATIVE(Voluntary Action)

ALERTNESS(Quick to Grasp)

(RATING – Outstanding – OS/Good –G/Satisfactory – S/Ordinary –O)

GENERAL APPRAISAL

FACTORS RATING REMARKS

DEPENDABILITY(Reliability)

QUALITY OF WORK(Right First Time)

COMMUNICATIONS(Ability to express with clarity)

BEHAVIOUR(Acceptable conduct to get along with others)

REGULARITY(Attending duty with punctuality)

(RATING – Outstanding – OS/Good –G/Satisfactory – S/Ordinary –O)

GENERAL APPRAISAL

Specific Soft SkillsSpecific Soft Skills

(Convincing Communication, Cooperation & (Convincing Communication, Cooperation & Coordination, Win-Win Negotiation, Trust worthiness, Coordination, Win-Win Negotiation, Trust worthiness, Moral integrity, Initiative, Courage, Self-confidence and Moral integrity, Initiative, Courage, Self-confidence and Decisiveness; Originality, Resourcefulness) .Decisiveness; Originality, Resourcefulness) .

STRENGTHSSTRENGTHS

AREAS OF IMPROVEMENTAREAS OF IMPROVEMENT

Assessment Year Assessment Year PerformancePerformance

Sl. No JOB RESPONSIBILITIES (Key Resulted Areas)

ACHIEVEMENTS FAILURE/SHORTFALLS

123456

SPECIAL ACHIEVEMENTSSPECIAL ACHIEVEMENTS

a)Systems & Procedures

b)Creation_____________________________________

__________________________________________

a)Value Addition

___________________________________________________

b)Cost Reduction

__________________________________________________

c)Any Other

_____________________________________________________

V DEVELOPMENT

a).Training Programmes attended and how they have contributed on the job effectiveness.

_________________________________________________________

_________________________________________________________

b).Further Training Needs.

_________________________________________________________

_________________________________________________________

VI) Technical Skills

STRENGTHS

AREAS OF IMPROVEMENT

VII NEXT YEAR KEY PERFORMANCE AREAS

1._________________________________________________________

2._________________________________________________________

3__________________________________________________________

4._________________________________________________________

5._________________________________________________________

APRAISER SIGN APRAISEE SIGN

(To be filled in by UNIT HEAD)

VIII) EXPLAIN IN DETAIL THE APRAISEE POTENTIAL TO TAKE UP HIGHER RESPONSIBILITIES ____________________________________________________________________

____________________________________________________________________

_________________________________________________________

IX) LAST YEAR INCREMENT : _______________________

PRESENT RECOMMENDATION: ________________________

XI OVER ALL RATING : OUTSTANDING/GOOD/SATISFACTORY/ORDINARY

UNIT HEAD HEAD HRD V.P. M.D