Submitted by: Anil Saini 072 Gaurav Mahajan 085 Mitali Awasthi 093 Ritika Bahl 108 Nithya

Kalyani 111

Meaning


It is a systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development.

Objectives Of Performance Appraisal.

Uses.  Administrative Uses.  Organisational/ Maintainence Organisational/ Uses.  Documentation Purposes.
 Developmental

Errors in rating and evaluation

Many errors based on the personal bias , like halo effect (i.e. one trait influencing the evaluator s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.

1. Halo Error: Under this type of error, one marked characteristic or latest achievement or failure of the appraisee (either favorable or unfavorable) may be allowed to dominate the appraisal for the entire year. 2. Logical Error: This is a dangerous pitfall for the inexperienced appraiser. He is very often inclined to arrive at similar assessments in respect of qualities that seem logically related.

3. Constant Error: When two appraisers rate an appraisee their ratings may be different. One may show consistent leniency by giving him high scores, the other may consistently rate him by giving low scores. 4. Central Tendency: It is also called as Average Ratings . Here, the appraiser tends to avoid giving frank views to the question asked or the appraiser is in doubt or he has inadequate information or he simply wants to play safe and don t displease anyone.

5. Mirror-Image Error or Projection Error: MirrorThis error arises when an appraiser expects his own qualities, skills, and values in an appraisee. The appraiser may falsely believe that if the appraisee is good he has to be like him (appraiser) because the appraiser considers himself as the standard. 6. Spillover Error: This error occurs in the past performance appraisal ratings to unjustifiably influence current ratings.

PROCESS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARD

COMMUNICATING THE STANDARD

MEASURE THE ACTUAL PERFORMANCE

COMPARING WITH STANDARD

DISCUSSING RESULTS (PROVIDING FEEDBACK)

DECISION MAKING- TAKING CORRECTIVE ACTIONS

Design Appraisal Programme



Formal vs. Informal The first step in designing the appraisal programme is to decide the appraisal should be formal or informal. Formal Appraisals usually occur at specified time periodsperiods-once or twice the year. Informal appraisals can take place whenever supervisor feels the need for communication.

Designing an appraisal program poses several questions, which need answers. They are:
1. Whose performance is to be assessed???? 2. Who are the appraisers???? 3. What should be evaluated???? 4. When to appraise???? 5. What problems are encountered???? 6. How to solve the problems???? 7. What methods of appraisal are to be used????

Essay appraisal:
The appraiser is asked to write an essay on the employee s strengths, weaknesses and potentials. This technique is more valid and formal than complicated methods of appraisal. The biggest drawback in this method is that it is difficult to combine and compare the essays as it may touch upon various aspects of one s performance and qualifications. Another drawback is the variability of length and content in the essays.

Ranking methods

This method is useful when it becomes necessary to compare people who work for different supervisors, when there are several individual ratings an when appraisal forms are not particularly useful. This method is also employed to compare people in different units of an organization.

Paired comparison method A B C D E Final Rank A + + 3 B + + + 2 C D E + + + + 1

+ 4 5 No of Positive evaluation Total no. of evaluation * 100 = employee superior evaluation

Forced choice rating:

This technique is unbiased in comparison to other techniques. This also does not involve the intervention of a third party in appraisal. In this method, the raters are asked to choose from among groups of statements those that best fit the individual employee who is rated and those that least fit him/her. The statements are then weighed and scored the same way psychological tests are scored. This technique is limited to lower and middle management levels in companies as the levels of jobs are similar to make standard common forms with this group. group.

Forced Distribution method

No. of employees 10% 20% 40% 20% 10% Excellent

poor Below average good average Force distribution curve

Graphic rating scale:

This method is both consistent and reliable. A person s quality and quantity of work is assessed in a graphic scale. A variety of factors are taken into consideration including his/her personal traits like cooperation and reliability. Although the graphic scale is widely used, it is under frequent controversy. But the graphic scale is more economical to develop and it is not complicated. Therefore it is easily acceptable by raters.

Critical incident appraisal:

This technique is appreciated by many employees and employers because it is natural and gives a supervisor actual factual incidents to discuss with the employee. In this method, supervisors are asked to keep a record on each employee and to record actual incidents of positive and negative behavior. The discussion between the supervisor and his subordinate deals with actual behavior and not on traits..

MODERN APPROACHAPPROACHThe modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees training needs, career development paths, rewards and bonuses and their promotions to the next levels. Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization.

Assessment centers:
In assessment centers, the assessment for future performance or potential of the employee is assessed in contrast to the past performance. Individuals from different departments are brought together and they spend two to three working days on group assignments similar to ones they will be handling if they were promoted. The pooled judgement of the observers leads to order of merit ranking on the participants.

Management Objecti es jecti

MBO is a r cess f agreeing n bjecti es it in an organi ati n so t at rgani ation management and employees agree to t e objecti es and nderstand at t ey are in t e organi ation.

SOME OF THE IMPORTANT FEATURES AND ADVANTAGES OF MBO ARE: MOTIVATION

BETTER
COMMUNICATION AND COORDINATION

CLARITY OF GOAL

360 degree appraisal

360360-degree feedback, also known as "multi"multirater feedback," "multisource feedback is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in the center of the circle. Feedback is provided by subordinates, peers, and supervisors

360 degree appraisal has four integral components: 1. Self appraisal 2. Superior s appraisal 3. Subordinate s appraisal 4. Peer appraisal.

Behavioral observation scale

A behavior observation scale (BOS) is an appraisal method that measures behavior against levels of performance and also measures the frequency with which the behaviors occur. The rationale is simple. Good behavior will produce good performance, performance, bad behavior will be a distortion. This method is distortion. applicable for productionproductionemployees performance, too.

Use of Appraisal Data:

  

  

Remuneration administration. Validation of selection programmes. Employee training and development Programmes. Promotion, transfer and lay off decision. Grievance and Discipline Programmes. HR planning.

BARRIERS TO EFFECTIVE APPRAISAL

  

Faulty assumptions Psychological blocks Technical pitfalls -Criterion problem -Distortions

OVERCOMING BARRIERS TO APPRAISALS

The reliability of rating system can be obtained by comparing the rating of two individuals for the same person. The appraisal system can be designed to help in minimizing undesirable effects. The ratings should be reviewed with the ratee. ratee. To make appraisal system effective, it should be backed by effective feedback system.

PERFORMANCE APPRAISAL USED BY NOKIA



Nokia holds a strategy review process every six months - a year being too long in the mobile phone business. The review is followed by a discussion with individuals about what they need to be doing and the support they need to do it. According ot them, "If a person is clear on what to do, you don't need to tell them. They're naturally empowered. What's important is the quality of the discussion."

WHY DID IT BEGAN

`

HCL realized that in service industry the value gets created not in the back office but in face to face interaction between the customer and employees. employees. Hence it is important to empower employees so that they deliver more value to the customers. When an employee is delighted, he will delight the customer. customer. This gave birth to a path breaking philosophy called : 'Employee First, Customer Second , termed by Fortune as "The most modern management idea.

EFC

Employee First councils work on goals that are of common interest to all employees and also help maintain a balance between work and life. The councils allow employees to unleash their creative talent. Last year over 1,500 events were conducted by EFC councils.

Women First Council

The purpose of this council is to focus on women development and to create an inclusive, supporting and caring environment. A women exclusive website was launched which has information of all women related policies, safety and security measures, workwork-life balance techniques.

Open 360 degree feedback

HCL s annual survey of 20,000 people across the company rates 1,500 managers on 20 aspects of their performance. There is nothing unusual in running such a process. But what is unusual is that the results of the survey are aggregated and published online for every employee to look at This is a simple change in practice, but one with profound consequences. For the manager, there is nowhere to hide if he or she gets negative feedback. Most managers take the feedback very seriously and make changes; a few choose to move on 360-degree feedback is not linked to the annual appraisal or to the compensation package. It is open for everyone to see, and that is enough to encourage changes in behavior.

CASE STUDY
Xerox ltd.

OLD APPRAISAL SYSTEM

 

 

The appraisal occurred once a year. It required employees to document their accomplishments. The manager would assess these accomplishments in writing and assign numerical ratings. The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory) to 5 (exceptional). The ratings were on a forced distribution, controlled at the 3 level or below. Merit increases were tied to the summary rating level. Merit increase information and performance appraisals occurred in one session.

CONSEQUENCES
 

This system resulted in inequitable ratings This system was cited by employees as a major source of dissatisfaction.

NEW APPRAISAL SYSTEM

 

 

The absence of a numerical rating system. The presence of a half-year feedback halfsession. The provision for development planning. Prohibition in the appraisal guidelines of

STAGES OF NEW SYSTEM



I- The first stage occurs at the beginning of

the year when the manager meets with each employee.

II- The second stage is a mid-year, mandatory IImidfeedback and discussion session between the manager and the employee.

IIIIII- The third stage in the appraisal process is

the formal performance review, which takes place at year s end.

RESULTS OF NEW SYSTEM



 

81 percent better understood work group objectives 84 percent considered the new appraisal fair 72 percent said they understood how their merit raise was determined 70 percent met their personal and work objectives 77 percent considered the system a step in the right direction

CONCLUSION

It can be clearly seen that the new system is a vast improvement over the previous one.

QUESTIONS


What type of performance appraisal is central to new system at Xerox? Which, if any, of the criteria for a successful appraisal does this new system have? Given the empahasis on employee development, what implications does this have for hiring and promotions? How do you think, management feels about the new performance appraisal system? Why? Are there any potential negative aspects of the new performance appraisal system?

THANK YOU!!!