Performance Appraisal

Lecture 3.1 & 3.2

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 AGENDUM
1. Attendance
2. Assessing the Video Viewing + Oral Test - MCQ – in the presentation) -
(Approximately 6-10 Questions). Attendance Order Link Internal Mark - 10
Minutes.
3. Review of Previous Class Topic – 3 Minutes
4. Today’s Class Topic (30 Minutes)
5. Mid-Class Assessment -1 : Approximately 5 MCQ Questions. (Repeat the Class if
Not Satisfied with Students Answers) – 5 Minutes
6. Today’s Class Topic (30 Minutes)
7. Mid-Class Assessment – 2 : Approximately 5 MCQ Questions. (Repeat the Class
if Not Satisfied with the students Answers) - 5 Minutes
8. Class Work – Applications - Problem Solving – 10 minuets
9. Homework – Assignment + Discussing the Solution for Assignment – 10 to 12
Minutes
10. Intro of “ Next Topic ” 5 Minutes

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Attendance

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Assessing the Video Viewing

1. Performance Appraisal as a __________ of

evaluating an employees performance.
2. Need for performance appraisal?
3. Who are the two main stakeholders in an
organisation?
a. CEO and top management
b. Employers and employees
c. Executives and owners
d. None of the above

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 4.How many components are there in
remuneration?
a. 4
b. 5
c. 6
d. 7
5. Which of the following option is a
component of remuneration?
a. Fringe Benefits
b. Commitment
c. External equity
d. Motivation

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Review of Previous Class Topic

• Training and Development.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Topic Outcome

1. Identify the activities involved in

performance management.
2. Discuss the purposes of
performance management systems.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 PERFORMANCE APPRAISAL( P.A)

Performance appraisal (P.A) is a method of evaluating

the behavior of employees in the work spot, normally
including both the quantitative and qualitative
aspects of performance. Performance appraisal is
measured in terms of result and not effort.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Definition

• Appraisal is a method of evaluating

the behavior of employees in the
workspot.

• Evaluating both work-related behavior

and potential of employees.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Question for Attendance

• What is mean by PA?

• What is the use of performance

appraisal?

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Features

• It is systematic process
• PA is to find out how well employee is
performing the job and tries to establish a
plan for further improvement.
• The appraisal is carried out periodically
• PA is not a past oriented activity
• PA is not a job evaluation
• PA is not limited to ‘calling the fouls’ – focus
on employee development
• PA may be formal or informal

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Objectives

• Compensation Decision – identify the

employees who are performing at or
above expected levels.
• Promotion decisions
• Training and development programmes
• Feedback
• Personal Development

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Try yourself

• Create a performance appraisal

form for different category of
employees.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Who will appraise?

The appraiser maybe any person who has

through knowledge about the job content,
contents to be appraised, stds of contents &
who observes the employee while performing
the job. The typical appraisers are :
 Supervisors
 Peers
 Subordinates
 Self appraisal
[ When all these appraisers appraise it is called 360o
P.A.]
General Electric, US in 1992 is the first company introduced 360
PA.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 PURPOSES OF PERFORMANCE
APPRAISAL
• To review the performance of the
employees.
• To judge the gap between the
actual and the desired
performance.
• To diagnose the training and
development needs of the future.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 • Provide information to assist in the
HR decisions like promotions,
transfers etc.
• Provide clarity of the expectations
and responsibilities of the functions
to be performed by the employees.
• To judge the effectiveness of the
other human resource functions.
• To reduce the grievances of the
employees.
• Helps to strengthen the relationship and
communication between superior –
subordinates and management –
employees.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Try yourself

• Create a performance Appraisal

form for Government organization.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 USE OF PERFORMANCE APPRAISAL
SYSTEM

Personnel
Decisions(
Identification
Raises, Merit e.g. Research
of training
Pay, Bonuses promotion, purposes
needs
transfer,
dismissal)

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Performance Appraisal Process
Establish performance standards
Name of the employee
Date 3rd December 2018
1 poor, 2 below average, 3 average, 4 good, 5 excellent

Absenteeism 1 2 3 4 5
Quality of Work 1 2 3 4 5
Quality of Work 1 2 3 4 5
Attitude toward the job 1 2 3 4 5
Personality related 1 2 3 4 5
factors
Interpersonal relations 1 2 3 4 5
17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page
 Questions for Attendance

• Who will do appraisal?

• What’s the degree of appraisal?

• How the performance appraisal is

measured?

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

  Communicate the standards
 Measure Actual Performance
 Compare actual performance
with standards and discuss the
appraisal
 Taking corrective actions
necessary

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 Methods of performance Appraisal

Performance Appraisal
Methods

Multiple Other
Individual
Evaluation Person -
Methods
Evaluation

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Individual
Evaluation Methods

Confidential Report

Essay
evaluation

Critical Incidents
Checklists
Graphic Rating Scale

Forced Choice method

Behavioral anchored rating scale

MBO
 Mid Assessment

1. Rearrange the steps in appraisal process.

A. Objectives of performance appraisal
B. Establish job expectations
C. Design in appraisal programme
D. Performance Management
E. Appraise performance
F. Performance interview
G. Archive appraisal data
H. Use appraisal data for appropriate purposes
a. DCHGFABE
b. HGFEDBCA
c. ABCFGHDE
d. ABCDEFGH

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 Mid Assessment
2.When appraisals are made by superiors,
peers, subordinates and clients then it is
called ____.
a. 360 degree feedback
b. 180 degree feedback
c. Self - appraisal
d. None of the above
3. ______ is an objective assessment of an
individual's performance against well-
defined benchmarks.
a. Performance Appraisal
b. HR Planning
c. Information for goal identification
d. None of the above

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 3. Raters can be immediate supervisors,
specialists from the HR department,
subordinates, peers, committees, clients
and self - appraisals or a combination of all.
A. True
B. False
4. Which of these is an issue while
designing an appraisal programme?
a. Quality
b. What methods of appraisal are to be
used
c. Quantity
d. Cost of effectiveness
17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page
Multi-person Other
Evaluation
Methods Methods

Group
Ranking
Appraisal

Paired
HRA
comparison

Forced Assessment
Distribution centre

Field review
 Individual evaluation Methods

Confidential report
• It is a descriptive report prepared at
the end of every year by the
immediate superior
• The report highlights the strengths
and weakness of the subordinate
• No feedback to the employee
 Questions for Attendance

• Describe individual evaluation

method.

• MBO.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Individual evaluation Methods

Confidential report
• It is a descriptive report prepared at
the end of every year by the
immediate superior
• The report highlights the strengths
and weakness of the subordinate
• No feedback to the employee
 Essay Evaluation
 It is a non quantitative technique
 Essay provides a good deal of information about
the employee.
 While preparing the essay on the employee, the
rater consider the following factors –
a. Job Knowledge and potential of the
employee
b. Employee’s understanding of the
company’s programmes, policies, objectives,
etc.,
c. The employee’s relations with co-workers
and superiors
d. the employee’s general planning,
organizing and controlling ability
e. Attitudes and perceptions of the employee
 Critical Incident
• The manager prepares list of
statements of every effective and
ineffective behavior of an employee.
• This critical incidents or events
represent the outstanding or poor
behavior of employee on the job
Ex: July 20 – the sales assistant stayed
45 mins over on his break during the
busiest part of the day. He failed to
answer the store manager’s call thrice.
 Check list Method

Is the employee really interested in the task assigned ? Yes/No

Is he respected by his colleagues (co – workers) ? Yes/No

Does he respect his superiors ? Yes/No

Does he follow instruction properly ? Yes/No

Does he makes mistakes frequently ? Yes/No

 Graphical rating scale
Employee Name: Mr. Rajan Job title: Office Assistant
Department: Administration Date: 3rd December 2018
Unsatisfac Fair Satisfactory Good Outstanding
tory
Quantity of work
•Volume of work
•Under normal
•Working conditions
Quality of work
•Neatness
•Accuracy of work
Knowledge of job
Attitude
•Exhibits enthusiasm and
cooperativeness on the
job
Dependability
Cooperation
 Behaviourally Anchored rating Scale
(BARS)
• It is a combination of rating scale and
critical incident technique.
• Step 1 – Collect critical incidents
• Step 2 – Identify performance dimension
– identify the key dimension eg.
Performance dimension for sales
executive in the field area are
presentation skill, handling the
customer, relationship with the
customer, etc.
• Step 3 – Reclassification of incident
• Step 4 – Assigning scale values to
the incidents
• Step V - Producing the final
instrument
• Finally BARS instrument consist of
a serious vertical scales anchored or
measured by the final incidents
• Step 3 – Reclassification of incident
• Step 4 – Assigning scale values to
the incidents
• Step V - Producing the final
instrument
• Finally BARS instrument consist of
a serious vertical scales anchored or
measured by the final incidents
 Forced choice items

Least Most

A Can be a leader A
B Wastes time on unproductive things B
C At all times cool and calm C
D Smart worker D
 Management by Objective

• MBO focuses attention on what must

be accomplished rather how it is to be
accomplished
• MBO requires the management , set
specific and measurable goals with
each employee
• Progress towards the goal
 Steps in goal setting and appraisal
programme
• Set the organizational goal
• Set departmental goal
• Discuss Departmental goal
• Define expected results
• Performance reviews
• Provide feedback
Multi – person Evaluation Method
• 1. Ranking Method
• Employees are ranked according to
their relative level of performance
• Evaluator are asked to rate
employees from highest to lowest
• Evaluator pick the top and bottom
performer first
• Second select the next highest and
next lowest and move towards the
average employee
 Paired Comparison Method

• Each worker is compared with all

other employees in the group
• Eg in a group 5 members are there,
Raman, Rajesh, sunitha, ragu, ravi.
• Raman is compared with rajesh,
sunitha, ragu, ravi. Likewise rajesh is
compared with raman, sunitha, ragu,
ravi
 Forced Distribution method
• The rater is asked to appraise the
employee according to a
predetermined distribution scale.
• Workers are placed between the two
extremes of “good” and “bad”
performance
• Ex. Workers of outstanding merit may
be placed at the top 10% of the scale.
The rest may be placed as 20% - good,
40% outstanding, 20% fair, and 10%
poor.
 Mid Assessment
1. Which company first developed
the 360 degree system of
appraisal?

a. Wipro in 1990
b. Godrej Soaps in 1991
c. General Electric, US in 1992
d. None of the above

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 Mid Assessment
2. The technique that have been used
to evaluate an employee in
comparison with other employees ___
(A) Ranking
(B) Forced choice
(C) Essay evaluation
(D) Critical incident technique

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 Mid Assessment
3. Paired comparison method can
be used by
(A) Superiors
(B) Peers
(C) Subordinates
(D) All of the above

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 Mid Assessment
4. College Professors are generally evaluated on
the following Work function(s) _________-
(A) Teaching
(B) Service
(C) Research
(D) All of the above
5. Which of the following is an alternate term used
for performance appraisal?
a. Quality and quantity of output
b. Job knowledge
c. Employee assessment
d. None of the above

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 Mid Assessment
• 5. What is the output of the following problem ?
#include<stdio.h>
struct {
int x;
int y;
union { A. 10 10
int id_no;
char *name;
B. 101 101
}b; C. 10 101
}s,*st; D. None of these
int main()
{
st = &s;
st->x=10;
st->b.id_no = 101;
printf("%d %d\n",s.x,s.b.id_no);
return 0;
}
17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page
Feedback

• Coaches provide feedback to their team

just as managers provide feedback to their
employees.
• Feedback is important so that individuals
know what they are doing well and what
areas they may need to work on.
 Problem to be solved

• Create a performance Appraisal

form for Government organization.

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page

 Solutions outline

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 Next topic for Lect. 3.2

• Job evaluation and merit rating

17BBA43A-HUMAN RESOURCES MANAGEMENT| Even Semester 2019-20 | Lecture 3.1| Page