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The TraditionalApproach
BY
ISHITA BEDI
JATIN PATIL
KANIKA GOYAL
KUASHAL MAHALE
D efi
n ition
Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the
personality
performance
potential of its group members
O bjectives
Opportunity to Regularly Discuss Results
Supervisor Identifies Strengths and Weaknesses
Fair and Equitable Format
Basis for Salary/Promotion Recommendations
Describes work
and personnel
requirement for a
particular job
Performance
Standards
Translate jobs
into levels of
acceptable and
unacceptable
performance
Performance
Appraisal
Describes the job
relevant
strengths and
weaknesses for
each individual
Large Organizations
All Organizations
Compensation
Performance improvement
80.2%
66.7%
74.9%
46.3%
53.3%
48.4%
Feedback
40.3%
40.6%
40.4%
Documentation
29.0%
32.2%
30.2%
Promotion
26.1%
22.8%
24.8%
Training
5.1%
9.4%
7.3%
Transfer
8.1%
6.1%
7.3%
Discharge
4.9%
6.7%
5.6%
Layoff
2.1%
2.8%
2.4%
Personnel research
1.8%
2.8%
2.2%
Manpower planning
0.7%
2.8%
1.5%
Strategy
and
behavior
Improving
performance
Making correct
decisions
Competitive advantage
Values and
behavior
Minimizing
dissatisfaction
and turnover
Ensuring legal
compliance
Principles of PM
Translation of Corporate goals
Transparency
Simple
Involvement of all directly involved entities
Full coverage
Continuous Feedback
Managing Performance
Superior Performance leads to Superior Rewards
Issue: How to objectively measure specific goals!
Appraisal Process
Objectives of
Performance
Appraisal
Design an
Appraisal
Programme
Feedback
Appraise
Performance
Performance
Interview
Archive Appraisal
Data
Use Appraisal data
for Appropriate
Purposes
Feedback
Many other
organizations fail to
consider one or more of
steps, so they have lesseffective appraisal
Establish Job
Expectations
When appraisal is
made by superiors,
peers and
subordinates, It is
called as 360 degree
method
First developed by GE
in 1992.
System followed by
Reliance, Crompton
greaves, Godrej
soaps, Wipro, Infosys
Problems of Ratings
Errors occur in raters observation, judgement and information
General problems are
Leniency or Severity
Central tendency Play safe
Halo error
Rater effect Favouritism, stereotyping and hostility
Primacy and recency effects
Perceptual set previously held beliefs
Spillover effect
High
Low
Potential
Problem
children
Stars
? Planned
Separation
Solid citizens
Low
High
Performance
Timing of evaluation
Once in quarter or half year or year
After probation period
According to survey conducted by Arthur Anderson, 70%
organizations conducts appraisal once a year
Frequent assessment is better than phased evaluation
CPA (Continuous performance appraisal) is being followed in
organizations now a days
Excellent
Good
Average
Fair
Poor
Attitude
Knowledge of Work
Managerial Skills
Team Work
ADVANTAGES
Simple , easy to understand and use.
Nearly every job cab be evaluated by this method.
It saves time and cost.
Rater does not need any training to use scale.
DISADVANTAGES
Raters biases are likely to influence evaluation.
Horn and halo effect.
Selected rating-scale traits may not be relevant to the jobs of all appraises.
CH ECKLIST
A checklist of statements on the traits of the employees
and his job is prepared in two columns-yes or no
Rater ticks off against each item
Actual assessment is done by HR department
AD VAN TAG ES
Limited training of rater
Standardization
Economy
Ease of administration
DISADVANTAGES
Use of personality criteria instead of performance criteria
Misinterpretation of items of checklists
Susceptible to raters bias especially halo effect
Disadvantages
FO R C ED D IS TR IB U TIO N M ETH O D
The distribution requires 10 or 20 percent of employees
in the top category, 70 or 80 percent in the middle, and
10 percent in the bottom.
The top-ranked employees are considered highpotential employees and low-ranked as low potential
employees.
Managers cannot rate employees freely they have to
meet forced distribution .
Advantages
They force reluctant managers to make difficult decisions and
identify the most and least talented members of the work group.
They create and sustain a high performance culture in which the
workforce continuously improves.
Disadvantages
They increase unhealthy cut-throat competitiveness.
They discourage collaboration and teamwork.
They harm morale.
C R ITIC A L IN C ID EN T M ETH O D
Critical incidents technique of evaluation is applied to
evaluate the performance of superiors .
Manager prepares lists of statements of very effective
and ineffective behavior of an employee
The manager periodically records critical incidents of
employees behavior
C R ITIC A L IN C ID EN T M ETH O D
Ex: A fire, sudden breakdown, accident
Workers
A
B
C
D
E
reaction
scale
5
4
2
ADVANTAGES
It reduces recency bias.
Does not force the respondents into any given framework.
Flexible method.
Inexpensive and provides rich information.
DISADVANTAGES
Negative incidents may be more noticeable than positive incidents.
It results in very close supervision which may not be liked by the employee.
The recording of incidents may be a chore for the manager concerned, who may
be too busy or forget to do it.
The supervisors have a tendency to unload a series of complaints about incidents
during an annual performance.
ESSAY M ETH O D
Rater is asked to express strong and weak points about
employee.
Rater considers employee job knowledge, relation with other
workers, planning, attitude, perception.
Highly subjective.
Rater may write a biased essay.
Difficult to find effective writers.
Busy writer may write essay hurriedly without assessing
properly performance of employee.
Collection of
critical
incidents of
effective
and
ineffective
behaviour
Classification
of effective
and
ineffective
behaviours
to
appropriate
performance
dimensions
Assignment
of
numerical
values to
each
behaviour
within each
dimension
Disadvanta
ges
Advantages
Disadvantages
Confi
d entialRecords
ACRs mostly maintained in government organisation
Highly secretive and confidential
An ACR has 14 Items :
Attendance
Self
expression
Technical
ability
Ability to
understand
new material
Judgement
Ability to
work with
others
leadership
Initiative
Ability to
reason
Originality
and
resourcefuln
ess
Areas of
work that
best suit the
person
Integrity
Responsibilit
y
Indebtedness
and memo
served
COST
BENEFITS
Comparative
Evaluation
Methods
Ranking
Method
Paired
Comparison
Method
Ranking M ethod
The evaluator rates the employee from highest to lowest on some
overall criteria
Employee Rank
A
4
Rank the positions, with one being the position of most worth, based on
the characteristics you consider most important to your company
Determine the characteristics you consider most important to your
company.
Write a short job description for each position to help you keep in mind
the primary duties of each position.
Make a list that includes each position you have at your company. Keep in
mind you are ranking positions, not employees. I
M ethod
Final
Rank
No of evaluation : N ( N-1)
----------2
Rank your positions. The position with the highest total is the top-ranked
position. In case of ties, the position that received the 1 in the head-tohead ranking should be ranked higher.
Add up the row
Draw a chart or create one using a spreadsheet software program. You will
need an equal number of rows and columns.
Fill in the headers for each column, starting with the space to the right of
the blank cell. In each cell, write or type a position in your company,
working from left to right.
Compare the first position, the one listed immediately below the blank
space, to each position to its right. Dont compare a position to itself; put
an X in that space
M ethod
Advantages
useful where priorities are not clear.
useful where you do not have objective data to base
this on.
It helps you to set priorities where there are conflicting
demands on your resources
This makes it easy to choose the most important
problem to solve, or select the solution that will give
you the greatest advantage.