LOKINDER KUMAR TYAGI ASSOCIATE PROFESSOR

BHARATI VIDYAPEETH INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI.

Performance

Management: Performance Appraisal Process, Methods of Performance Appraisal, Job Evaluation Methods, Compensation, Components, Factors affecting remuneration, incentive and performance based payment, managing separation.

 Performance

Appraisal is a method of evaluating the behaviour of employees in workplace including quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work related behaviour and potential of employees. It is a process that involve determining and communicating to an employee how he or she is performing the job and ideally establishing a plan for improvement.

Establish

Performance Standards Communicate the performance standards Measure Actual Performance Compare actual performance with standards Discuss the appraisal Taking corrective action, if necessary.

 Performance

Appraisal Methods (K. Ashwasthapa) have been divided into two categories i.e.

Future Oriented (To rate employees from their potential point of view to utilize them properly for future performance goals) Past Oriented (To rate the past performance of employees)

1.
2. 3. 4.

5.
6. 7. 8.

9.
10. 11. 12.

Rating Scales Check list Forced Choice Method Forced Distribution Method Critical Incidents Method Behaviourally Anchored Rating Scales Field Review Method Confidential Report Performance Tests & Observations Essay Methods Ranking Methods Paired-Comparison Methods

 Simplest

and Most popular technique. The typical rating scale system consists of several numerical scales each representing a job related performance criteria i.e.
Initiative 1, 2, 3, 4, 5 Attendance 1, 2, 3, 4, 5, Attitude 1, 2, 3, 4, 5, Cooperation 1, 2, 3, 4, 5, Dependability 1, 2, 3, 4, 5, Then computes the employees total numberical score. No. of points scored may be linked to salary increase.

 Checklist

of statements on the traits of employees and his/her job is prepared in two column: YES and NO. i.e.
Is employee really interested in job? Yes No Does he/she possess knowledge about job? Y N Does he/she cooperate with workers? Yes NO Does he/she obey orders? YES NO Does he/she complete in time? YES NO Supervisor should tick the Yes or NO column to evaluate the performance of employee(s).

 In

this Method Rater is forced to select statements which are readymade i.e.
Learns fast .. Works hard Work is reliable performance is good i.e. Absents often .. Others usually tardy

The advantage of this methods is absence of personal bias in rating. The disadvantage of this method is Statement may not be properly framed they may not be precisely descriptive of the ratees traits.

 Forced

Distribution Methods operates under an assumption that employee performance level conforms (Obey) to a normal statically distribution i.e. following performance distribution is assumed 10 % excellent, 20% good, 40% average, 30% below average. Weakness of this methods lies in unrealistic assumption. Destructive to employees morale Strength: Eliminate the error of leniency. Good in large number of employees.

 Critical

Incidents Performance appraisal Method reflects the performance of the concerned employees in a given situation/circumstances at work place. Such incidents are recorded by the Management when they occur and reactions of the Employees are recorded for future reference and improvement.

 In

BARS, the Performance Behaviour (attitude, initiative, Habits, Dealings) of employees are evaluated or rated on scale points to determined the effective and ineffective. 1 Below Average 2 Average 3 Above Average 4. Good 5 Excellent

 The

field review method is an appraisal by someone outside the assessees own department, usually from corporate office or HR Department. Generally method is used for making promotional decision at managerial level.

 Confidential

Reports or ACRs are maintained in Govt. Departments. A Typical ACR generally have items: Attendance, Selfexpression (Written or oral), Ability to work with others, Leadership, Initiative, Technical ability (Job Knowledge), Originality & Resourcefulness, Judgments, Integrity, Responsibility, etc. These may be rated or judged on 4 point grade scale i.e. excellent good, fair and poor.

 Rater

describe the employees within a numlber of broad categories such as i) Raters overall impression about employee Ii) Promotability of the employee. Iii) About job that employee is now able to perform Iv) Strengths and weakness of employees V) Training & Development assistance required by the employees.

 The

employees are ranked in order of their merit stating from the best to the worst. For example good performer is ranked A and next is ranked B in terms of their performance. Disadvantage it lacking answer to how and why concerned employees are ranked so. Advantage : It helps in taking decision for assigning responsible jobs to good performer.

 Employee

is assessed based on a test of knowledge or skills. The test may be of the paper and pencil variety or an actual demonstration of skills. Employees performance is also evaluated by observing him/her while working or behaving at work place.

 Management

by Objectives (Performance Targets are decided by both Supervisor and Workers and performance is evaluated from time to time keeping in view of objectives) Psychological Appraisal (Industrial Psychologist are employed for conducting appraisal. Appraisal is done through in-depth Interviews, Psychological tests, discussions with supervisors and a review of other evaluations)

 Assessment

Centres: (Mainly used for executive hiring but now also used for performance appraisal. The managers come together to have their participation in job related exercises evaluated by trained observers. Participants are requested to participate in in-basket exercise, work groups, computer simulations, role play and other such exercises.

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Degree Feed Back: This technique is understood as systematic collection of performance data on an individual lor group, derived from a number of stakeholders i.e. immediate supervisors, team members, customers, peers and self.