performance appraisal by sumedh007

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									PERFORMANCE

APPRAISAL

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ASHISH AGRAWAL (02) AMIT KUMAR (04) PRIYA BHALERAO (06) ATUL CHAUDHARI (14) GAUTAM CHOUBE (16)

INDEX
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INTRODUCTION HISTORY OBJECTIVES IMPORTANCE DEVELOPING PERFORMANCE APPRAISAL PERFORMANCE CRITERIA TYPES NEW TRENDS IN PERFORMANCE APPRAISAL EXAMPLES BENEFITS PITFALLS & CONSTRAINTS CONCLUSION BIBLIOGRAPHY

INTRODUCTION
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PERFORMANCE APPRAISAL REFERS TO ALL THOSE PROCEDURES THAT ARE USED TO EVALUATE THE PERSONALITY PERFORMANCE APPRAISAL COULD BE FORMAL OR INFORMAL IT IS A CONTINUOUS PROCESS

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DEFINITIONS
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EDWIN B FLIPPO: PERFORMANCE APPRAISAL IS A SYSTEMATIC, PERIODIC AND AN IMPARTIAL RATING OF AN EMPLOYEES EXCELLENCE IN MATTERS PERTAINING TO HIS PRESENT JOB AND HIS POTENTIALITIES FOR A BETTER JOB. BY AFFORD AND BEATTY: PERFORMANCE APPRAISAL IS THE EVALUATION OF THE MAN’S SERVICES ON HIS JOB BY THE COMPANY.

OBJECTIVES OF PERFORMANCE APPRAISAL
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THE IMPORTANT INCENTIVE TO ALL EMPLOYEES. IMPROVED SUPERVISION. A MEANS FOR EVALUATING THE EFFECTIVE DEVICES FOR SELECTION AND CLASSIFICATION. MAKING COMPENSATION PLANS. A BASIS FOR JOB CHANGE OR PROMOTION. A GUIDE FOR FORMULATING A SUITABLE TRAINING AND DEVELOPMENT PROGRAMME. SERVE AS FEEDBACK TO THE EMPLOYEE.

IMPORTANCE OF PERFORMANCE APPRAISAL
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PROPER ENFORCEMENT OF PERSONAL DECISIONS. WORKS AS CONTROL DEVICE. GUIDE TO EMPLOYEE DEVELOPMENT.

DEVELOPING PERFORMANCE APPRAISAL SYSTEM
A Performance Appraisal system can be developed through a programme comprising the following stages:  Determine overall approach to performance appraisal.  Set up a project team.  Define the role of HR department.  Define performance management process.  Plan implementation programme.

INTRODUCING AND OPERATING PERFORMANCE APPRAISAL SYSTEM
Main steps:
 Training everyone on performance appraisal.
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Monitoring and evaluating performance appraisal.

DISTINCTION BETWEEN PERFORMANCE AND POTENTIAL
PERFORMANCE: The resultant behavior of the subordinate on the task which can be observed or evaluated. POTENTIAL: Refers to an employees’ abilities to fit into future role.

PROCESS OF PERFORMANCE APPRAISAL
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Select performance factors and set the standards to be achieved. Set the performance review period. Measure actual performance. Compare performance with set standards and rate it with a suitable scale. Communicating the rating to the appraisee. Use the performance appraisal for the desired purpose.

PERFORMANCE CRITERIA
Criteria for performance appraisal should:
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Be related to success/failure in the job. Be amenable to objective judgement. Be easy for the appraisers to administer. Appear just and relevant to the employees. Strike a fair balance between sensitivity to the needs of the present job and applicability to the organization.

PERFORMANCE APPRAISAL VS MERIT RATING
MERIT RATING  Merit was based upon personality traits such as leadership, ability to get along with others, decisiveness, creativity, initiative and drive.  It demanded too much on the quality of personal relationship rather than employees’ performance.  Focus was on “WHAT HE IS”.

PERFORMANCE APPRAISAL VS MERIT RATING
PERFORMANCE APPRAISAL  Focus shifted to “HOW HE PERFORMS” in work oriented activities such as job knowledge, accuracy, clarity, analytical mind, ability to carry on operations to their logical ends.  PA is thus competence, contribution and commitment and not chance, chemistry and convenience.  e.g. MBO (MANAGEMENT BY OBJECTIVE)

TYPES
RATING SCALE METHOD : GRAPHIC RATING SCALE LISTS A NUMBER OF TRAITS & RANGE OF PERFORMANCE FOR EACH EMPLOYEE. THE EMPLOYEE IS THEN RATED BY IDENTIFYING THE SCORE THAT BEST DESCRIBES HIS/HER LEVEL OF PERFORMANCE FOR EACH TRAIT. ALTERNATION RANKING METHOD : RANKING EMPLOYEES FROM BEST TO WORST ON A PARTICULAR TRAIT.
GRAPHIC

TYPES
PAIRED COMPARISON METHOD : RANKING EMPLOYEES BY MAKING A CHART OF ALL POSSIBLE PAIRS OF THE EMPLOYEES FOR EACH TRAIT AND INDICATE WHICH IS THE BETTER EMPLOYEE OF THE PAIR.  FORCED DITRIBUTION METHOD : SIMILAR TO GRADING ON A CURVE; PERDETERMINED % OF RATEES ARE PLACED IN VARIOUS PERFORMANCE CATEGORIES.
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TYPES
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CRITICAL INCIDENT METHOD :
KEEPING RECORD OF UNCOMMONLY GOOD OR UNDESIRABLE EXAMPLES OF AN EMPLOYEE’S WORKRELATED BEHAVIOR & REVIEWING IT WITH THE EMPLOYEE AT PERDETERMINED TIMES.

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BEHAVIORALLY ANCHORED RATING SCALES :
AN APPRAISAL METHOD THAT AIMS AT COMBINING THE BENEFITS OF NARRATIVE CRITICAL INCIDENTS & QUANTIFIED RATING BY ANCHORING A QUANTIFIED SCALE WITH SPECIFIC NARRATIVE EXAMPLES OF GOOD & POOR PERFORMANCE.

TYPES
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MBO METHOD : IT INVOLVES SETTING SPECIFIC MEASURABLE GOALS WITH EACH EMPLOYEE & THEN PERIODICALLY REVIEWING THE PROGRESS MADE.
APPRAISAL PROGRAM CONSIST SIX MAIN STEPS

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SET ORGANISATION GOALS SET DEPARTMENTAL GOALS DISCUSS DEPARTMENTAL GOALS DEFINE EXPECTED RESULTS PERFORMANCE REVIEW PROVIDE FEEDBACK

360 Degree Appraisal System
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Def:-Systematic collection and feedback of performance data on an individual or group, derived from a number of the stakeholders in their performance. Data are gathered and feedback to the individual to promote understanding, acceptance and ultimately changed behaviour.

Boss

Peers

Team members

Feedback once from

Self

Customers

Staff

Stakeholders

USES OF 360 DEGREE FEEDBACK
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Self Development and individual counselling Part of Organized Training and Development Team Building Performance Management Strategic or Organizational Development Validation of Training and other Initiatives

New trends in performance appraisal systems
The performance appraisal systems existing in companies in India have brought forth many problems at all levels in the organizational structure.  It do not appear to be connected to rewards  Middle managers feel that they are underpaid  Factory workers are unhappy about their pay scales, increments , bonuses and allowances

For above mentioned problems customer satisfaction, organizational prosperity , and corporate raison must be ultimate arbiter In the emerging business environment for benchmarking employee performance and deciding on his reward . The above framework will attract the people, retain them, and motivate them to give there best.

Goals of new system
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Identifies meaningful performance distinctions among the Department’s

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Incorporates strategic plans and mission objectives with accountability for achieving such objectives into the performance plans of managers and supervisors Provides substantial financial rewards commensurate with top performance

Ex.-LARSEN AND TOURBO(L&T) LTD.
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Process of P.A. at L&T starts in April each year with each employee reviewing his past performance with respect to the objectives and targets. The assessment of employee with respect to 5 important criteria- innovativeness, initiative, interpersonal and team relationship, resourcefulness and communication skills. It takes about 3 months for self-review of an employee to final review by his superiors.

STRENGTHS
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Self assessment by the employee. Both the employee and superior decide the goals and objectives for the employees. Critical attributes are listed and areas of strengths and weaknesses are deliberated. Specific training and development plans are formulated. Prevention of bias.

WEAKNESSES
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The entire exercise is time consuming and tedious. No key performance areas for the employee. Very little emphasis on role playing.

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BENEFITS OF PERFORMANCE APPRAISAL
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FOR THE APPRAISEE:  BETTER UNDERSTANDING OF HIS ROLE IN THE ORGANIZATION.  CLEAR UNDERSTANDING OF HIS STRENGTHS AND WEAKNESSES FOR THE MANAGEMENT:  BETTER IDENTIFICATION OF POTENTIAL AND CAREER PLANS  OPPORTUNITY TO IMPROVE COMMUNICATION BETWEEN EMPLOYEES AND MANAGEMENT.

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FOR THE ORGANIZATION:  IMPROVED PERFORMANCE THROUGHOUT THE ORGANIZATION.  CREATION OF CULTURE OF CONTINUOUS IMPROVEMENT AND SUCCESS.

PITFALLS
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SHIFTING STANDARDS DIFFERENT RATER’S PATTERNS CENTRAL TENDENCY FIRST IMPRESSION LATEST BEHAVIOUR HALO EFFECT HORN EFFECT STEREOTYPING (RATER’S BIAS) SPILL-OVER EFFECT

CONSTRAINTS
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LACK OF PROPER SYSTEM LACK OF ACCOUNTABILITY LACK OF CLARITY ON ROLE, GOAL, JOB DEMANDS,ETC. PERSONAL BIAS AND SUBJECTIVITY HETEROGENEOUS INTEREST LOW MOTIVATION TARGET ACHIEVEMENT ORIENTED SYSTEM

CONCLUSION
A PERFORMANCE APPRAISAL IS:
One of those special human encounters where the manager gets no sleep the night before, and the employee gets no sleep the night after. —Thomas B. Wilson

BIBLIOGRAPHY
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HRM BY :-BISWAJEET PATTANAYAK (3rd) HRM BY :- GARY DESSLER , 7TH EDITION HRM BY :- GARY DESSLER , 9TH EDITION WWW. GOOGLE .COM WWW. PERFORMANCE APPRAISAL.COM


								
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