COMPARITIVE STUDY OF PERFORMANCE APPRAISAL OF PUBLIC AND PRIVATE SECTOR COMPANIES IN INDIA

Performance Appraisal :
Its a process by which a managers or consultant

examines and evaluates an employee's work behavior by comparing it with preset standards, documents the results of the comparison, and uses the results to provide feedback to the employee to show where improvements are needed and why.

Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.

Why Appraisals Are Important

Recognize accomplishments Guide progress Improve performance

Why Important (cont.)

Review performance Set goals Identify problems Discuss career advancement

Purpose of Performance Appraisal

Development Uses
Identification of individual needs Performance feedback Determining transfer and job assignment Identifying of individuals strengths and development needs

Administrative Uses/Decisions
Salary Promotion Retention or termination Recognition of individual performance Lay-offs Identification of poor performers

Cont..

Purpose of Performance Appraisal

Organizational Maintenance/ Objectives

HR Planning Determining organizational training needs Evaluation of organizational goal achievement Information for goal identification Evaluation of HR system Reinforcement of organizational development needs

Documentation

Documentation for HR decisions Helping to meet legal requirements

Process of PA
Taking corrective standards

Setting performance standards

Communicating standards

Discussing results Comparing standards

Measuring standards

How PA contribute to firms competitive advantages

Improving performance Values and behavior
Competitive advantage Minimizing dissatisfaction And turnover Ensuring legal competence Making correct decision

Performance Appraisal Methods

Individual Evaluation Methods Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scale MBO

Performance Appraisal Methods

Group Appraisal

Ranking Paired comparison Forced distribution

Problems in performance appraisal

1.

Errors In rating Halo effects Stereotyping Central tendency Constant error Personal bias

Problems in performance appraisal (Contd)

2.
3. 4. 5. 6.

Incompetence Negative approach Multiple objectives Resistance Lack of knowledge

OBJECTIVE OF STUDY
To study the methods of Performance appraisal in Public and Private Companies in India ( NTPC and L&T). To identify the difference between public and private sector, on grading employees on the basis of objectives & transparent productivity parameters of performance appraisal . To identify the link between rewards & performance to increase the motivation level of employees. To study the impact of the methods of performance appraisal on employees motivation and satisfaction.

RESEARCH METHOD
Research Design: Exploratory cum Descriptive Target Population: Public and Private Sector Companies in India Sampling Frame : NTPC and L&T Power Sampling : Convenient Sampling Sampling Unit: Employees

Thank You