APPRAISALS

Vineet Srivastava-J039
Rahul Mehta-J041
Shahnawaaz Batliwala-J051
Siddharth Thapar-J040
-Saad Khan-J042

PERFORMANCE APPRAISALS
Performance appraisals is an objective assessment of an individuals performance
against well defined benchmarks.
Factors measured:

Job Knowledge

Leadership Abilities

Output

Dependability

Co-operation

Supervision

OBJECTIVES

To effect promotions based on competence and performance.

To assess the training and development needs of employees.

Performance appraisals can be used to determine whether HR programmes such

as selection, training, transfers, etc. have been effective or not.

To let employees know where they stand insofar.

Facilitating layoffs or Downsizing decisions.

Competitive advantage

APPRAISAL PROCESS

OBJECTIVES
ESTABLISH JOB
EXPECTATIONS
DESIGNING
APPRAISE PERFORMANCE
PERFORMANCE INTERVIEW
PERFORMANCE
MANAGEMENT

ARCHIVE APPRAISAL DATA

USE DATA FOR
APPROPRIATE PURPOSES

FEEDBACK

OBJECTIVES OF APPRAISAL

PREAPPRAISAL

DURING
APPRAISAL
EST. OF KPI

POST
APPRAISAL
2 WAY COMM.

SETTING PERF. GOALS

NOTES TAKING

FACT AND FEAS. ANALYSIS

AGREE TO DISAGREE

PA INTERVIEW

SUPPORT MECHANISM

MONITORING

ESTABLISH JOB EXPECTATIONS

This includes informing the employee what is expected of him or her on the
job. This is done in order to create strong basis for job appraisals.
DESIGNING

FORMAL VS
INFORMAL

WHOSE
PERFORMANCE?

METHODS?

RATERS?

APPRAISAL
DESIGN
WHEN TO
EVALUATE?

PROBLEMS?
WHAT TO
EVALUATE?

SOLUTION?

Performance Appraisal : Past-oriented

methods
Rating

scale

Checklists
Forced

choice method

Forced

distribution method

Critical

incident method

Behaviorally
Field

review method

Confidential
Essay
Cost

anchored rating scale

report

evaluation

accounting method

Comparative
Ranking

evaluation approaches

Rating scale

The rating scale consist of several numerical

scales,

each

representing

job

related

performance criterion such as dependability,

initiative, output, attendance, attitude and cooperation.

Example:

Employee name_________ Dept_______

Raters name ___________ Date________
______________________________________________________________________________
Exc.

Good

Acceptable

Fair

Poor

______________________5_______4________3__________2______1___________________

Dependability

Initiative

Overall output

Attendance

Attitude

Cooperation
___________________________________________________________________________
Total score

Checklist

Checklist contains a list of statements on the basis of

which the rater describes the on job performance of
the employees

Example:

Is employee regular

Is employee respected by subordinate

Is employee helpful

Y/N

Does he follow instruction

Y/N

Does he keep the equipment in order

Y/N

Y/N
Y/N

Forced Choice Method

In the forced choice method the rater is forced to select

statements which are readymade

The rater is asked to indicate which of the phrases is the

most and least descriptive of a particular worker

Forced Distribution method

Example:

No.
of
employe
es
10% 20%

40%

20%

poor Below average good

average
Force distribution curve

10%
Excellent

Critical Incident Technique

Manager prepares lists of statements of very effective

and ineffective behavior of an employee

These critical incidents represent the outstanding or poor

behavior of the employees

The manager periodically records critical incidents of

employees behavior

Behaviorally Anchored Rating Scale

BARS represent a range of descriptive statements of behavior

varying from the least to the most effective

In this a rater is expected to indicate which behavior on each

scale best describes an employees performance

Example:
Performance

Points

Behavior

Extremely good

Can expect trainee to make valuable suggestions for increased

sales and to have positive relationships with customers all over
the country.

Good

Can expect to initiate creative ideas for improved sales.

Above average

Can expect to keep in touch with the customers throughout the

year.

Average

Can manage, with difficulty, to deliver the goods in time.

Below average

Can expect to unload the trucks when asked by the supervisor.

Poor

Can expect to inform only a part of the customers.

Extremely poor

Can expect to take extended coffee breaks and roam around

purposelessly.

Field Review Method

The appraiser goes to the field and obtains the information

about work performance of the employee by way of questioning
the said individual, his peer group, and his superiors

Confidential Report

Descriptive report

Prepared by the employees immediate supervisor

The report highlights the strengths and weaknesses of

employees

Prepared in Government organizations

Does not offer any feedback to the employee

Essay Evaluation Method

The rater is asked to express the strong as well as weak points

of employees behavior

The rater considers the employees :

Job knowledge and potential

Understanding of companys programs, policies, objectives

etc

Relation with co-workers and supervisors

Planning, organizing and controlling ability

Attitude and perception

Cost Accounting Method

It evaluates performance from the monetary

returns the employee yields to his or her company.

A relationship is established between the cost

included in keeping the employee and the benefit
the firm derives from him or her.

Performance of the employee is then evaluated

based on this relationship.

Comparative Evaluation
Approaches

It is a collection of different methods that compare one

workers performance with that of his/her co-workers.

Ranking method

The evaluator rates the employee from highest to lowest on some overall
criteria. In this how and why are not questioned nor answered
Employee

Rank

Future Oriented Appraisals

Management by objectives

Jobs with little or no flexibility, such as assembly-line

work, are not compatible with MBO.

Psychological Appraisals

The Psychological appraisals normally consists of

in-depth interviews, psychological tests, discussions with supervisors and a review of

other evaluations.

The psychologist then writes an evaluation of the employees intellectual, emotional,

motivational and other related characteristics that suggest individual potential and may
predict future performance

 Assessment Centre:
Mainly used for executive hiring.
It is a central location where managers may
come together to have their participation in
job-related exercises evaluated by trained
observers.

360-Degree Feedback:
The 360 degree technique is
understood as systematic collection of
performance data on an individual or
group, derived from a number of
stakeholders.

It helps provide a broader perspective about an employees

performance. Also it provides multi-source feedback which is
highly useful.

APPRAISAL PROCESS

OBJECTIVES
ESTABLISH JOB
EXPECTATIONS
DESIGNING
APPRAISE PERFORMANCE
PERFORMANCE INTERVIEW
PERFORMANCE
MANAGEMENT

ARCHIVE APPRAISAL DATA

USE DATA FOR
APPROPRIATE PURPOSES

FEEDBACK

Tata Motors is Indias One of the most successful automobile company.

It currently Employees 59,759 (2012) personnel , who are constantly
evaluated and appraised .

Half yearly appraisal system, was started a year ago. This activity was
started keeping in mind the dynamic behavior of the industry. With a
half yearly appraisal system, the employee gets feedback twice a year,
which gives him/her a chance to re-look at his/her approach of working.

A comprehensive system of quarterly appraisals where an employee

selects his/her own goals or Key Result Area (KRAs) every quarter and
him/her self assesses his/her own performance against these parameters.

They used to have annual appraisals earlier, but then they felt that
the incentives are not enough to motivation the sales department,
which generates major revenues or the organization.

Designation hikes are given annually. These are proportional to

effort of the individual, team and the department. Designation
changes are given keeping in mind the immense responsibility one
has to shoulder in a high rank.

Monetary increments are primarily incentives that are given either in

cash or kind for example they give them travel package within India
or outside

Case touches 4 aspects

Identification of the technique of performance appraisal

followed in Tata Motors .

Employee attitude towards the present appraisal system.

Review of the current appraisal system in order to

a. Enhance productivity
b. Attain global standards

To provide suggestions & recommendations from the

study conducted.

Years of service

12%

4%
30%

54%

below 2yrs
2-5yrs
5-10yrs
10yrs and above

Awareness of technique of Performance Appraisal

No; 28%

Yes; 72%

No

Yes

Employees opinion as to the present appraisal system

2%

24%

30%

Fully satisfied
satisfied
cant say

44%

Dissatisfied

Employee perception as to the frequency of appraisal

6% 2%

Once during the

service period
Continuous
Never
92%

Cant Say

If continuous appraisal what should be

the gap between two appraisal period

20%

Quaterly

36%
Half-Yearly

44%

Yearly

Feedback to Employees

Motivated

Indifferent

Demotivated

+ Feedback

76

24

- Feedback

24

20

56

Neutral

48

42

10

Who should do the appraisal?

16%

24%
8%

48%

4%

Superior
Peer
Subordinate
Self appraisal
Consultant
All of the Above
Superior+Peer

Options

No. of Responses

Superior

12

Peer

Subordinate

Self Appraisal

Consultant

All of the above

24

Superior + Peer

Does appraisal help in polishing skills and performance area?

Options

No. of Responses

Yes

37

No

Somewhat

16%
Yes
10%
Somewhat

No

74%

Does personal bias creeps-in while appraising an employee

18%
Yes
No

82%

Options

No. of Responses

Yes

41

No

If given a chance, would employees like to review the current appraisal technique

24%

32%

Yes
No
Cant Say

Options

No. of Responses

Yes

16

No

22

Cant Say

12

44%

Appropriate method of conducting the performance appraisal

Options

No. of Responses

Ranking Method

Paired Comparison 0

12%

6%
20%

58%
4%

Ranking method
paired comparison
critical Incidents
MBO
Assessment Centre
360 degree

Critical Incidents

MBO

10

Assessment
Centre

360 degree

29

Does performance appraisal leads to identification of hidden potential

Options

No. of Responses

Yes

48

No

4%
Yes
No
96%

Findings

Must be initiated by Top Management.

Appraisal should not lead to duplication of data

There should not be common appraisal for all jobs.

Neutral panel should do the appraisal.

Quantifiable data required.

Appraisal should be continuous.

Transparent process.

Lack of Truth about Organization culture is conveyed through

90 degree of appraisal system and it should be overcome.

Superiors response tend to be bias, which make employees

unsatisfied. Thus, a better system can be installed.

Ideally in the present day scenario, appraisal should be done, taking

the views of all the concerned parties who have some bearing on the
employee. But, since a change in the system is required, it cannot
be a drastic one. It ought to be gradual and a change in the mindset
of both the employees and the head is required.

SUGGESTIONS AND CONCLUSION

Performance appraisals in Tata Motors is satisfactory for its effective

management and evaluation of staff.

Appraisals here are helping individuals to develop, improve organizational

performance, and feed into business planning.

90degrees appraisal system or review is being followed in Tata Motors i.e

feedback that comes from members of an employee's immediate work circle
most often, 360-degree feedback will include direct feedback from an
employee's subordinates, peers, and supervisor(s), as well as a self-evaluation.

It can also include, in some cases, feedback from external sources, such as
customers and suppliers or other interested stakeholders. The appraisal process
is continuous here and encourages employee productivity with positive
feedbacks.

General
Electric

Business Groups

Forced Ranking/Rank&Yank

Management by Objective and Rating Scale Method

Done once in a year and reviewed quarterly

3 Participants:

Employee

Manager

Senior Manager

Evaluation Measurement
System (EMS)

EMS verticals:

Leadership

Teamwork

Quality

Cost

Set Goals in April

Employee has to select all verticals

Evaluation Measurement
System (EMS)

Choice of objectives and challenges are given and

employee has to choose

Employee may set his/her objective

Quarterly Meeting (June/September/December)

Goal/Objective Report submitted on 31st Dec

Employee rates himself (1,2,3,4,5)

Evaluation Measurement
System (EMS)

EMS forwarded to Manager

Manager can comment on Strength, Weakness,

Productivity and Goals

Manager forwards EMS to Snr. Manager for approval

Snr. Manager release EMS form on portal

Employee is rated on all 4 verticals and a calculated

overall rating is released

Feedback and Comments session

Salary incremented in April

10-80-10
Observation

Result

10% are Top Performers,

exceeding expectation:

Receive highest
compensation increases;
in line for advancements

80% are Backbone,

meeting expectations

Receive moderate
compensation increases

10% are not meeting

expectations

Receive little or no
compensation; coached for
improvement; subject to
termination

Limitations:

THANK YOU