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P E R F O R M A N C E A P P RA I S A L
INDEX
Meaning
Definition
Objective
Process of performance appraisal
Method of performance appraisal
Issues in performance
Advantages of performance appraisal
Disadvantages
DEFINITION
According to Newstrom, It is the process of
evaluating the performance of employee, sharing
that information with them and searching for ways
to improve their performance.
MEANING
Performance appraisal is the step were the
management finds out how effective it has been
at hiring and placing employees.
A Performance appraisal is a process of
evaluating an employees performance of a job in
terms of its requirements.
P- Purpose
E- Empowerment
R- Relationship
F- Flexibility
O- Optimal Performance
R- Recognition & Rewards
M- Morale
OBJECTIVES
According to employee:
Concrete & tangible particular about their work.
Assessment of performance.
Aims at:
Personal development.
Work satisfaction.
Involvement in the organisation .
OBJECTIVES
According to organisation:
Measuring the efficiency.
Maintaining the organizational control.
Aims at:
Mutual goals of the employees & the
organization.
Growth & development.
Increase the harmony & enhance
effectiveness.
PROCESS
Setting
performance
standards
Taking
corrective
standards
Communicating
standards
Discussing
standards
Measuring
standards
Comparing
standards
METHODS
Traditional method
1. Paired comparison
2. Graphic rating scales
3. Forced choice description
method
4. Check list
5. Free essay method
6. Critical incident
7. Group appraisal
8. Field review method
9. Confidential report
10.Ranking
Modern method
1. Assessment center
2. Appraisal by results
or management by
objectives
3. Human asset
accounting
4. Behaviourly
anchored
5. Rating scales.
Wipro
Infosys
Reliance industries
Maruti udyog
HCL Technologies
ISSUES
Formal &
informal
What
methods?
When to
evaluate?
Whose
performance?
Appraisa
l design
What to
evaluate?
What
problems?
How to
solve?
ADVANTAGES
Provide a record of
performance over a
period of time
Can be motivational
with the support of
good reward &
compensation
Provide an
opportunity for an
employee to discuss
issues & clarify
expectation
Provide an
opportunity for a
manager to meet an
discuss performance
DISADVANTAGES
If not done appropriately,
can be negative experience
Very time consuming
especially for a manager
Subject to rater error &
biases
If not done right can be a
complete waste of time
Can be stressful for all
involved
CASE STUDY
He has been working in Britestar since last 5 years and has gained good amount of
respect and faith from his employees due to his appropriate and fair performance
appraisal techniques that facilitated the uses of performance appraisal. The mostly used
techniques by him are Checklist method, 360Feedback and Assessment centers. Because
of Mr. Shroffs good rapport and close relations in the recent months with his
subordinates Ram Kumar and P.K. Gupta, he has developed a new tendency to appraise
the performance of those employees known to Kumar and Gupta with leniency and
because he finds them similar to him (personality and knowledge wise). As a result of this
unfair and inappropriate appraisal of Mr.Shroff, he also evaluates the performance of the
employees taking into account their recent performances only. Hence, most of the
employees productivity has reduced and is inefficient, even some of the good employees
have become irresponsible towards their tasks along with different behavior showing no
interest to put in their best efforts to realize the goals and mission of the company. Some
employees are planning to resign as no proper feedbacks are provided when required and
no better prospects for Promotions are expected to see the light of the day.