|



 

 



Submitted By-
Prerna Gupta(06)
Era Saluja(38)
Khushboo Garg(41)
 þhat is performance appraisal?
4 Performance appraisal is a process by which
organizations evaluate employee performance based
on preset standards.
4 The main purpose of appraisals is to help managers
effectively staff companies and use human resources,
and, ultimately, to improve productivity.
4 It is to be conducted every year.
4 It talks about the present scenario and is done for the
existing job unlike potential appraisal.
ß There are also some organizations that have
performance appraisals that aim simultaneously at
different objectives such as data generation for
personnel decisions like rewards, promotions, job
rotation, transfers and creation of a new
organizational culture of openness, trust, mutuality
and generation of enabling capabilities and employee
development that use different components (KPAs,
self assessment, counseling, objective setting,
identification of training needs etc.)
ß Example of such an organization is State Bank Of
India and its associate banks.
 þhen conducted properly, appraisals achieve their
objective by-

(1) Showing employees how to improve their

performance.
(2) Setting goals for employees.
(3) Helping managers to assess subordinates'
effectiveness and take actions related to hiring,
promotions, demotions, training, compensation, job
design, transfers, and terminations.
:ew present appraisal formats are-
4 Global ratings-A one-dimensional rating that uses a
rater's overall estimate of performance without
distinguishing between critical job dimensions (poor,
fair, good, excellent).
4 Trait-based scales-A multidimensional (or graphic)
approach used to measure performance. Some
commonly used traits are-loyalty, dependability,
cooperation, initiative, and self-confidence.
4 Effectiveness-based systems-A system based on
"objective" results, representing the measurement of
an employee's contribution, not an employee's
activities or behaviors. MBO is a popular example of
this kind of performance appraisal format.
 Problems with present techniques of appraisal

4 The whole analysis is based on the judgment of the

superior and it is subjectiveã
4 üaters show resistance to criticizing subordinates, and
the judgmental aspect of evaluating human
performance is subject to both covert (subjective and
individual) and overt (prejudice and bias) errors.
4 üaters often aren't trained in employee counseling
and may be forced to conduct performance appraisals
with inadequate or erroneous information about ratee
performance.
4 Also, the critical effect on the ratee can sometimes be
devastating. Some studies have shown that employees
tend to remember only negative comments, which can
have a negative effect on job performance for up to
three months afterward. Appraisals are often taken as
personal criticism or a challenge to self-worth.
4 Another consideration is that federal legislation, court
decisions, and guidelines of several federal agencies
have recently targeted performance appraisal as a
validation procedure for employee selection
techniques and preventing discrimination in the
workplace. The courts have found organizations in
violation of civil rights laws in failing to validate
performance appraisal criteria and methods.
 Appraisal for future
(1) MBO approach
4 One of the most popular future-oriented
performance appraisal techniques is management by
objectives.
4 In MBO, managers and employees work together to
set goals. In fact, MBO is usually goal oriented, with
the intent of helping employees to achieve
continuous improvement through an ongoing
process of goal setting, feedback, and correction.
4 As a result of their input, employees are much more
likely to be motivated to accomplish the goals and to
be responsive to criticism that arises from subsequent
objective measurements of performance.
4 To be successful, MBO depends on specific and
measurable goals and a definite time frame.
4 Although it achieved fad status in the late 1970s and
into the 1980s, critics of MBO cite its propensity to
focus on objectively measured behaviors, such as
quantity of output, at the expense of subjective
criteria, such as quality of output. The result can be
employee frustration or lackluster performance.
(2) Assessment center evaluation
4 It is a more complex assessment method that is
usually applied to managerial or executive prospects.
4 It is a system of determining future potential based on
multiple evaluations and raters.
4 .Typically, a group meets at a training facility or
evaluation site. They are evaluated individually
through a battery of interviews, tests, and exercises.
4 In addition, they are evaluated within a group setting
during decision-making exercises, team projects, and
group discussions.
4 Psychologists and managers work together to
evaluate the employees' future management potential
and to identify strengths and weaknesses.
4 Assessment centers are susceptible to bias, have been
criticized as not being specifically job related, and are
extremely costly.
4 But on the other hand, they have also proven effective
and have achieved broad appeal in the corporate
world.
4 The major competencies that are judged in
assessment centers are interpersonal skills,
intellectual capability, planning and organizing
capabilities, motivation, career orientation etc.
j
 
   
4 It is a much less intricate method of determining
future potential.
4 It normally consist of interviews with the employee
and his supervisors and coworkers, as well as
different types of tests and evaluations of intellectual,
emotional, and work-related characteristics.
4 The psychologist puts his or her findings and
conclusions in a report that may or may not be shared
with the employee.
4 Psychological testing is slow and costly, and must be
administered extremely carefully because of the long-
term implications of the evaluation on the employee's
future.
4 Success is largely dependent on the skill of the
psychologist.
(4) Behaviorally anchored rating scales
4 It is a relatively new technique which combines the
graphic rating scale and critical incidents method.
4 It consists of predetermined critical areas of job
performance or sets of behavioral statements
describing important job performance qualities as
good or bad (for e.g. the qualities like inter personal
relationships, adaptability and reliability, job
knowledge etc). These statements are developed from
critical incidents.
4 Developing and practicing BAüS requires expert
knowledge.
4 In this method, an employee¶s actual job behavior is
judged against the desired behavior by recording and
comparing the behavior with BAüS.
4 The BAüS format deals with measurable behaviors,
not personality, provides raters and ratees with clear
statements of performance goals, and is based on a
specific, thorough job analysis.
4 Using BAüS, raters focus on specific ratee behaviors.
These behaviors are compared to specific examples
(job dimensions and anchors developed from the job
analysis) that provide concrete benchmarks for
making appraisal judgments.
j) Self appraisal
4 It entails employees making evaluations of their own
performance.
4 Although self-assessment techniques may also be
coordinated with past-oriented evaluations, they are
particularly useful in helping employees to set
personal goals and identify areas of behaviors that
need improvement.
4 The advantage of such appraisals, which may be
relatively informal, is that they provide an excellent
forum for input and feedback by superiors.
4 In addition, they allow supervisors to find out what
employees expect from themselves and from the
organization or department.
4 :urthermore, because the employee is much less
defensive about the criticism, self-improvement is
much more likely.
j
EABüAüS(Extension Agent Behaviors and üesults
Anchored üating System)
4 It was discovered that the existing performance
appraisal systems weren't sophisticated or tested and
some weren't even legal. EABüAüS overcame these
problems.
4 It's based on a thorough job analysis of Extension
agents' duties and responsibilities.
4 It focuses on measurable behaviors and results, not
personality.
4 It provides specific benchmarks for raters and ratees
alike.
4 In addition, it has undergone statistical testing that
meets legal requirements.
4 Analysis of the total ratings indicated that EABüAüS was
an internally consistent, highly reliable instrument which is
easy to use and straightforward.
4 EABüAüS represents the beginning of a new wave of
performance appraisal formats that must meet legal
mandates as well as serve a variety of organizational
purposes in identifying, measuring, and developing human
performance.

ß !

    
4 Program planning.
4 Program promotion and public relations.
4 Program implementation.
4 Program support.
4 Interpersonal and personal behaviors generally related to
job.
j
Human resource accounting method
4 Human resources are valuable assets for every
organization.
4 This method tries to find the relative worth of these
assets in the terms of money.
4 In this method the Performance appraisal of the
employees is judged in terms of cost and contribution
of the employees.
4 The cost of employees include all the expenses
incurred on them like their compensation, recruitment
and selection costs, induction and training costs etc
whereas their contribution includes the total value
added (in monetary terms).
4 The difference between the cost and the contribution
will be the performance of the employees.
4 Ideally, the contribution of the employees should be
greater than the cost incurred on them.
j
Hybrid approach
4 evaluators often combine various future- and past-
oriented techniques, forming hybrid approaches to
performance appraisal, according to Patricia King in
O

 O 
 

 
4 Using several different techniques enables managers
to measure both behavior and results and to set goals
for employees to improve their performance and to
increase their motivation.
4 :or example, an evaluator might use both the BAüSs
and MBO techniques to reap the benefits of both and
compensate for the drawbacks of each.