PERFORMANCE APPRAISAL
MEANING OF PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. ?The supervisors measure the pay of employees and compare it with targets and plans. ?The supervisor analyses the factors behind work performances of employees. ?The employers are in position to guide the employees for a better performance.
DEFINITION OF PERFORMANCE APPRAISAL
• Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including the both quantative and qualitative of the job performance. • It is a systematic and objective way of evaluating both the work related behaviour and potential employees. • It is the process that involves determining and communicating to an employee how he or she is performing the job ideally establishing a plan of action.
PERFORMANCE APPRAISAL IS ALSO CALLED AS
• Performance Rating • Performance Evaluation • Employee Performance Review.
PROCESS OF PERFORMANCE APPRAISAL
• ESTABLISH PERFORMANCE STANDARD • COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES • MEASURE ACTUAL PERFORMANCE • COMPARE ACTUAL PERFORMANCE WITH STANDARDS • DICUSS THE APPRAISAL WITH EMPLOYEE
• INITIATE CORRECTIVE ACTION
Problems of Rating
Halo effect
Perceptual effect
Central Tendency
Status effect
Raters Error
Spillover effect
Primacy & Recency
Leniency & Severity
Rater effect
Traditional Methods of Performance Appraisal
Traditional Methods of Performance Appraisal
Paired comparison method Essay method Critical incident method Checklist method Field review method Straight ranking method
Modern Methods of Performance Appraisal
MBO – Management by Objective
• Goal setting and appraisal programme ADVANTAGES • Maximum utisilisation of human resource • Organizational change & development DISADVANTAGES • Time consuming. • Lack of trust • Setting unmeasurable objectives
360 degree Appraisal
• Collection of individual performance data
ADVANTAGES
• Reveals strength & weaknesses in management style. • Creates atmosphere of teamwork & improvement
DISADVANTAGES
• Deny the truth of negative feedback. • System can be used to humiliate people • Might turn unfair
Psychological Appraisal
• In-depth interview, psychological tests & discussions with supervisor.
ADVANTAGES
• Receives additional data of individual • Detailed feedback is received
DISADVANTAGES
• Costly & time consuming
Assessment Centres
• Used to evaluate supervisory potential who are being assessed by senior managers
ADVANTAGES • Accurate evaluation • Minimum biasness DISADVANTAGES • Unhealthy competition among assesses • Discourages poor performance • Costly & Time consuming.
Challenges of Performance Appraisal
CHALLENGES
An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful.
CHALLENGES FACED
Determining the evaluation criteria Lack of competence Errors in rating Resistance Create a rating system Appraiser bias Not linked to rewards
Appraising the Teams
Appraising the Teams
Identifying KRA Set Targets
Determine Intangible Parameters
Evaluate Performance
Communicate Results
Measure Performance & Indentify Outstanding Individuals
doc_832796638.pptx
MEANING OF PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. ?The supervisors measure the pay of employees and compare it with targets and plans. ?The supervisor analyses the factors behind work performances of employees. ?The employers are in position to guide the employees for a better performance.
DEFINITION OF PERFORMANCE APPRAISAL
• Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including the both quantative and qualitative of the job performance. • It is a systematic and objective way of evaluating both the work related behaviour and potential employees. • It is the process that involves determining and communicating to an employee how he or she is performing the job ideally establishing a plan of action.
PERFORMANCE APPRAISAL IS ALSO CALLED AS
• Performance Rating • Performance Evaluation • Employee Performance Review.
PROCESS OF PERFORMANCE APPRAISAL
• ESTABLISH PERFORMANCE STANDARD • COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES • MEASURE ACTUAL PERFORMANCE • COMPARE ACTUAL PERFORMANCE WITH STANDARDS • DICUSS THE APPRAISAL WITH EMPLOYEE
• INITIATE CORRECTIVE ACTION
Problems of Rating
Halo effect
Perceptual effect
Central Tendency
Status effect
Raters Error
Spillover effect
Primacy & Recency
Leniency & Severity
Rater effect
Traditional Methods of Performance Appraisal
Traditional Methods of Performance Appraisal
Paired comparison method Essay method Critical incident method Checklist method Field review method Straight ranking method
Modern Methods of Performance Appraisal
MBO – Management by Objective
• Goal setting and appraisal programme ADVANTAGES • Maximum utisilisation of human resource • Organizational change & development DISADVANTAGES • Time consuming. • Lack of trust • Setting unmeasurable objectives
360 degree Appraisal
• Collection of individual performance data
ADVANTAGES
• Reveals strength & weaknesses in management style. • Creates atmosphere of teamwork & improvement
DISADVANTAGES
• Deny the truth of negative feedback. • System can be used to humiliate people • Might turn unfair
Psychological Appraisal
• In-depth interview, psychological tests & discussions with supervisor.
ADVANTAGES
• Receives additional data of individual • Detailed feedback is received
DISADVANTAGES
• Costly & time consuming
Assessment Centres
• Used to evaluate supervisory potential who are being assessed by senior managers
ADVANTAGES • Accurate evaluation • Minimum biasness DISADVANTAGES • Unhealthy competition among assesses • Discourages poor performance • Costly & Time consuming.
Challenges of Performance Appraisal
CHALLENGES
An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful.
CHALLENGES FACED
Determining the evaluation criteria Lack of competence Errors in rating Resistance Create a rating system Appraiser bias Not linked to rewards
Appraising the Teams
Appraising the Teams
Identifying KRA Set Targets
Determine Intangible Parameters
Evaluate Performance
Communicate Results
Measure Performance & Indentify Outstanding Individuals
doc_832796638.pptx