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    BBA HR Performance Appraisal

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    BBA HR Performance Appraisal

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    6 views27 pages

    BBA HR Performance Appraisal

    Uploaded by

    livefortech12

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 27

    HRM

    BBA-304
    PerfoRmance APPRAISAL

    DR. AMIT KUMAR


    SRIVASTAVA
    (Associate Professor)
    CONCEPT OF PERFORMANCE
    APPRAISAL

    • Performance Appraisal is the periodic


    assessment of an employee’s job performance
    as measured by the competency expectations
    set out by the organization (Watts, A.).
    CONTD..

    • Performance Appraisal includes both evaluation of -

    Core Competencies required by the organization


    & also the Competencies Specific to the
    Employee’s Job.
    • These two competencies makes a manager to
    evaluate the Potential of an employee along with
    his performance (Agarwal & Thakur, 2013).
    CONTD..

    • K. Ramchandran of Philips India says –


    “People are like icebergs. What we see above
    the surface (performance) is only a small part.
    A large part of the attributes need to perform
    excellently in a future job, which I call
    potential, is not immediately visible. It is
    hidden below surface.”
    CONTD..

    These attributes may be in the form of –


    • Analytical power,
    • Creative imagination,
    • Sense of reality,
    • Ability to see future,
    • Ability to work in varied environment,
    • Risk-taking,
    • Problem-solving and
    • Decision making skills and so on.
    METHODS OF PERFORMANCE
    APPRAISAL
    Traditional Methods –
    • Rating Scales Method,
    • Essay Appraisal Method,
    • Ranking Method,
    • Paired Comparison Method,
    • Critical incidents method,
    • Confidential Report System,
    • Checklist Method,
    • Graphic Rating Scale,
    • Forced Distribution Method,
    • Forced Choice Method.
    CONTD..
    Modern Methods –
    • Assessment Centres,
    • Behaviorally Anchored Rating Scales,
    • Human Resource Accounting Method,
    • Management by Objectives,
    • 360 Degree Performance Appraisal,
    • 720 Degree Performance Appraisal.
    TRADITIONAL METHODS
    1. Rating Scales Method
    • Performance, dedication, honesty, attitude,
    performance, regularity, accountability and
    sincerity etc. of the employees, are rated with
    scale from 1 to 10 representing very less to out
    standing performance.
    1 1
    CONTD..
    2. Essay Appraisal Method –
    • This method is also known as “Free Form method”.
    It is a non-quantitative and open- ended technique
    and provides a good deal of information about the
    employee and also reveals more about the evaluator .
    3. Ranking Method –
    • In this method manager compares an employee to
    other similar employees, rather than to a standard
    measurement.
    • Employees are ranked from the best to the poorest on
    the basis of overall performance.
    CONTD..
    4.Paired Comparison Method –
    • It’s a better technique of comparison than the straight
    ranking method, this method compares each employee
    with all others in the group, one at a time.
    • After all the comparisons on the basis of the overall
    comparisons, the employees are given the final
    rankings.
    CONTD.. (Khanna & Sharma, 2014)
    CONTD..
    5. Critical Incidents Method –
    • Flanagan (1954) defined the critical incident technique.
    • Here manager prepares lists of statements of very
    effective and ineffective behavior of employee.
    • These behaviours are called critical incidents represent
    the outstanding or poor behaviour of employees on the
    job.
    • He maintains logs on each employee, whereby he
    periodically records critical incidents of the workers
    behavior.
    • At the end of the rating period, these recorded critical
    incidents are used in the evaluation of the workers’
    performance.
    CONTD..
    6. Confidential Report –
    • Confidential report system is mostly being used by the
    Government organizations for promotion & transfer of employees.
    • Superior writes confidential report after observing the following in
    an employee like: knowledge and quality of work, his Character
    and conduct, absenteeism, punctuality, leave without permission,
    integrity and honesty.
    7. Checklist Method –
    • A checklist represents, in its simplest form, a set of objectives or
    descriptive statements about the employee and his behaviour.
    • The checklist contains a list of statements on the basis of which the
    rater describes the job performance of the employees like his
    regularity, discipline, behaviour and errors.
    CONTD..
    8. Graphic Rating Scale –
    • Under this approach, the employees are evaluated on the
    basis of various job performance criterions like attitude,
    knowledge of work, managerial skills, team work,
    honesty, regularity, accountability, interpersonal
    relationships, creativity and discipline etc.
    • Each criterion is categorically divided into poor, fairly
    poor, fairly good, good and excellent. Also, these
    criterions carry certain score weight.
    CONTD..
    Factors Excellent Good Average Fair Poor

    Discipline 5 4 3 2 1

    Team Work 5 4 3 2 1

    Honesty 5 4 3 2 1
    CONTD..
    9. Forced Distribution Method –
    • Forced ranking is a method of performance appraisal
    to rank employee but in order of forced distribution.
    For example – the distribution requested with 10 or
    20 percent in the top category, 70 or 80 percent in the
    middle, and 10 percent in the bottom.
    • The top-ranked employees are considered “high-
    potential” employees in contrast, those ranked at the
    bottom may be given a probationary period to
    improve their performance.
    CONTD..
    CONTD..
    10. Forced Choice Method –
    • It is called forced choice because appraiser is forced to do
    the rating readymade statements. Examples –
    a. Organised worker – Unorganized worker.
    b. Hold negative attitude –Remain positive every time.
    c. Patient in crucial situation –Impatient in crucial
    situation.
    • Rater does not know the weights. After giving his
    response on the statements rater forward it to the HR
    department for further action. HR department apply the
    weights, compute and calculate the score for making
    decisions.
    Modern Methods of Performance Appraisal

    1. Assessment Centre –
    • An assessment centre is a central location where the managers
    may come together to participate in job-related exercises, who
    are then evaluated by the trained observers.
    • Centre determines the training and development needs of the
    employees and measures the potential of the employees for the
    different positions in the organisation.
    • An assessment center typically involves the use of methods
    like social/informal events, tests and exercises, assignments
    being given to a group of employees to assess their
    competencies to take higher responsibilities in the future.
    Behaviorally Anchored Rating Scales
    (BARS)

    • BARS has now become a commonly used methodology


    by companies to compare the performance of its
    employees against specific or predefined set of behaviour
    traits which are linked to specific numeric value or rating
    from a scale of 1-5.
    • It is generally used in evaluation of new employees and
    trainees.
    CONTD..
    Human Resource Accounting Method

    • Humans Resource Accounting The concept of human


    resource accounting was first developed by Sir William
    Petty in 1691.
    • The main theory underlying the HRA is: Human
    resources are a valuable asset of any organization. This
    asset can be valued in terms of money. When competent
    and well-trained employees leave an organization, the
    human asset is decreased and vice versa.
    • So, in this method the Performance appraisal of the
    employees is judged in terms of cost and contribution of
    the employees.
    Management by Objectives

    • MBO is defined as “parameters of strategically planning


    which means that harmonizing manager’ aims with the
    employees in order to reach the objectives introduced by
    organization”.
    • It is a process that motivates employees to realize
    organizing objectives. Also, it enables to enhance
    performance, productivity, and manager results through
    its employees.
    360 Degree Performance Appraisal
    Multi Rater Feedback
    360 degree appraisal has four integral components:
    • Self appraisal,
    • Superior’s, appraisal,
    • Subordinate’s appraisal and
    • Peer appraisal. Superior

    Peer & Self

    Subordinate
    720 Degree Performance Appraisal

    • According to Sundaravadivel & Silambarasi


    (2018) here 360 degree appraisal method is
    practiced twice.
    • When 360 degree appraisal is done, then the
    performance of the employee is evaluated and
    having a good feedback mechanism, the boss sits
    down with the employee again a second time and
    gives him feedback and tips on achieving the set
    targets.
    • It helps in better analysis and improved feedback
    from different dimensions.
    CONTD..
    THANK YOU

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