PERFORMANCE APPRAISAL

3/20/2013

Petrformance Appraisal: Anandita Tyagi

INTRODUCTION
Performance appraisal is a systematic and objective way of evaluating both work related behaviour and potential of employees.

3/20/2013

Petrformance Appraisal: Anandita Tyagi

INTRODUCTION
Performance Appraisal
The process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating the information to employees.

Performance Appraisal is essential to understand &

improve the employees performance through HRD. Performance appraisal indicates the level of desired

performance level, level of actual performance & the

gap b/w the two
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Definitions
"performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job."

Flippo
"Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses."

Sir Wayne Cascio

3/20/2013

Petrformance Appraisal: Anandita Tyagi

Definitions
It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. Newstrom

"Performance Appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development. Dale Beach

3/20/2013

Petrformance Appraisal: Anandita Tyagi

Features of Performance Appraisal

It is a systematic process, essentially involving three steps: set work standards, assess employee's performance relative to these standards, and offer feedback to the employee so that he or she can eliminate deficiencies and improve performance The appraisal is carried out periodically according to a definite plan It is not a past oriented activity. The intention is not to put poor performers in a spot. Instead, it shows employees where things have gone wrong, how to set things in order and deliver superior performance using their potential fully The focus of appraisals is on employee growth and development. It forces managers to be coaches rather than judges.
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NEED FOR PA
Provide information about performance ranks. Provide feedback information about the achievement & behaviour of the subordinate, Provide information subordinate. which helps to level of the

counsel

Provide information to diagnose deficiency in the employee regarding skill, knowledge & needs.
To prevent grievances & in disciplinary activities.

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Objectives
To maintain records in order to determine compensation structure. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development. To provide a feedback to employees regarding their performance and related status. To review and retain the promotional and other training programmes. To use for career planning

3/20/2013

Petrformance Appraisal: Anandita Tyagi

Benefits of Performance Appraisal

For the appraisee
Better understanding of his role in the organization what is expected and what needs to be done to meet those expectations Clear understanding of his strengths and weaknesses to develop himself into a better performer in future Increased motivation, job satisfaction, and self-esteem Opportunity to discuss work problems and how they can be overcome Opportunity to discuss aspirations and any guidance, support or training needed to fulfil those aspirations Improved working relationships with supervisors
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Benefits of Performance Appraisal

For the Management Identification of performers and non-performers and their development towards better performance Opportunity to prepare employees for assuming higher responsibilities Opportunity to improve communication between the employees and management Identification of training and development needs Generation of ideas for improvements Better identification of potential and formulation of career plans
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Benefits of Performance Appraisal

For the Organization Improved performance throughout the organization Creation of a culture of continuous improvement and success Conveying the message that people are valued

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What is to be appraised?
The content to be appraised is determined on the basis of job analysis. Usually it comprises of: Behaviours, including observable physical actions, movements Objectives which measure job related results Traits which are measured in terms of personal characteristics

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Who will appraise?

Supervisors Peers Subordinates Users of services consultants Self appraisal

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When to appraise?
Conducted informally

Carried out systematically at regular intervals, sticking to a definite plan

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The Performance Appraisal Process

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The Performance Appraisal Process

Establish performance standards These are benchmarks against which performance is measured.

They should relate to the desired results of each job

They must be clear to both the appraiser and the appraisee. Good performance goals should speak about

What is the task to be accomplished?

What will it look like when it is accomplished? When must it be completed? What are the cost considerations? What are the likely payoffs to the employee?

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The Performance Appraisal Process

Communicate the standards The Appraiser should prepare job descriptions clearly Help the appraisee set own goals and targets Analyze results objectively Offer coaching and guidance The Appraisee should be clear about what he is doing and why he is doing

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The Performance Appraisal Process

Measure actual performance Use reliable and dependable performance measures These must be easy to use and report on critical behaviours that determine performance These would generally include: personal observation, statistical reports, oral reports and written reports These may be objective or subjective Objective measures are generally quantitative, and include quality of production, degree of training needed, accidents in a given period, absenteeism, length of service etc. Such measures are used for evaluating lower level jobs Subjective measures are based on opinions of those doing evaluation and are not verifiable by others; generally used for evaluating middle 3/20/2013 Petrformance Appraisal: Anandita Tyagi 18 level positions.

The Performance Appraisal Process

Compare actual performance with standards and discuss the appraisal Not an easy job Emotional factors to be taken into account Affects the self esteem of the appraisee Criteria likely to be questioned, if the appraisal turns out to be negative

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The Performance Appraisal Process

Take corrective action, if necessary Put out the fires Set things in order Arrive at new goals for achieving superior performance

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