Performance appraisal is a formal assessment & rating of individual by their managers at usually at annual review meeting

Also termed as Performance review, Annual review & Annual appraisal.

To create and maintain a satisfactory performance level. To help superiors have a proper understanding of their subordinates. To guide the job changes with the help of continuous ranking. To facilitate fair and equitable compensation based on performance. To provide information for making decisions regarding lay-off, retrenchment, etc.

Establish Performance Standards

Communicate Performance Expectations To Employee Measure Actual Performance

Compare Actual Performance With Standard

THE EVALUATION PROCESS

Discuss Appraisal With Employee If Necessary, Initiate Corrective Action

Methods Of Performance Appraisal

Traditional Methods
Graphic Rating Scales Ranking Method Paired Comparison Method Forced Distribution Method Forced Choice Distribution Method Checklist Method Essay or Free Form Appraisal Confidential Report Critical Incident Method 360 Appraisals Human Resources Accounting Management by Objectives Psychological Appraisals

Modern Methods
Behaviorally Anchored Rating Scales Assessment Centre

This is the oldest and widest technology. Judgment of performance is recorded on the scale. The appraisers supplied with number of forms.

These contain number of objectives, behavior & trait based.

The supervisor rates each subordinate by circling or checking the score that best describes his/her performance for each trait. The assigned values for the traits are then totaled.

It is the simplest and oldest form of merit rating. It considers the employee and his performance as a whole and assigns him a suitable rank in the organization. It permits comparison of all employees in any single rating group regardless of the type of work.

It attempts to correct a raters tendency to give a consistently high or low rating to all employees. The use of this method calls for objective reporting or minimum subjective judgment. Several sets of pair phrases or adjectives relating to job proficiency are provided. Rater is asked to choose the phrase which is most & least descriptive of employees. E.g. :o Make a little effort and individual instruction. o Has a cool, even temperament.

For the trait of Quality Of Work

A As compare d to B A B C D E A B C D E F

+ + +

+ + -

+ + + +

+ + + -

+ + -

+ + -

The individual is rated & distributed along the scale and fixed %. The employee are assigned to the best and worst end of the scale and to the middle. In this, 5 point scale of job performance is used.
10% Poorest 20% Poorer Than Average 40% Average 20% Better Than Average 10% Best

Predetermined percentages are raters are placed in performance categories.

The rater does not evaluate employee performance.

He supplies the report and the final rating is done by the

personnel department.

E.gs
Is the employee really interested in job Yes/No. Is he respected by his subordinates Yes/No. Does he keep his temper Yes/No. Does he properly follow instructions Yes/No.

It attempts to measure the work performance in terms of certain events or episodes that occur in connection with appraisal. The event is known as critical incident method.

BARS Behaviorally Anchored Rating Scales.

o o o o o

Step I : Collect Critical Incidents Step II : Identify Performance Dimensions Step III : Reclassification of Incidents Step IV : Assigning scales values to incidents Step V : Producing the Final Instrument.

Develop A Final Instrument :- A subset of behaviors are used as behavior anchors for the performance dimension.

Appraiser : Thorough knowledge about the content/various contents to be

appraised, standard of contents And who observes the employee while performing a job.

Typical appraisers are : Supervisors Peers Subordinates Employees themselves Users of Service Consultants. Ponds, HLL, Grasim, Colgate Palmolive, etc. practice 360 performance appraisal.

Human Resource Accounting deals with cost of and contribution of human resources to the organization. Cost of employee includes cost of manpower, planning, recruitment, selection, induction, placement, training, development, wages and benefits, etc. Employee contribution is the money value of the employee service which can be measured by labour productivity or value added by Human Resource.

Setting of Objectives Developing Action Plan Establishing Check Points Reviews of performance.

 It

is a system where assessment of several individuals is done by various experts by using various techniques.

Appraiser

Appraises Name Position Trainer

Division / Department

Technical

Location

Mumbai

ASSESSMENT FACTORS Personality Professional Qualification (Related to position)

ASSESSMENT POINT

REMARKS

Conceptual Knowledge(out of 10)

a. Technical(only for Info sec- out of 5) b. Process(only for Info sec out of 5) Job Knowledge Human Skills Experience (Related to position) Communication Self Confidence Job Stability Maturity/Attitude TOTAL POINTS / 100

PERCENTAGE SCORE

Final Comments

RECOMMENDATION ( Please  ) Suitable Suitable Not Suitable On Hold on Hold

Signature of Appraiser(s)

Employee: _____________________________ Date: _____________________ Company: _____________________________ Position Title: __________________________ Review Period: _________________________ Office: ________________________________ Department: ___________________________ From/To: ______________________________ PART A How do rate your previous yrs performance

Excellent Good Average

What were your achievements during the last year? Describe any projects you have been responsible for which are not in your job description. What results have you achieved? PART B I. Specify ways that you feel you met or exceeded job requirements and any reasons why. II. Specify the ways that you feel you did not meet job requirements and any reasons why. III. In what specific areas would you like to improve your job performance? IV. What job-related goals would you like to accomplish in the next 6 (12) months? V. How do you see yourself in the company - 2 years from now? In what ways you expect the organization to support u? Employees Signature: ____________________Date: ______________________ Reviewers Signature: ____________________Date: ______________________ Reviewers Managers Signature: ____________Date: ______________________