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It is the process of : Planning performance, Appraising/Evaluating performance, Giving its feedback, and Counseling an employee to improve his performance.
1.Performance Planning
It
is the process of determining what and how a job is to be done in such a manner that both the employee and his superior understand what is expected from the employee and how success is defined and measured.
In consultation with the superior, the employee formulates his job objectives keeping in view the organizational/unit objectives.
During Performance Planning session, each objective and its contribution to organizational objectives is discussed and it is also determined how the accomplishment of each objective will be measured.
In the light of the stated objectives, any developmental activities that will be required by the employee are worked out.
Once performance plan is established, it is the responsibility of the employee to carry out the objectives and responsibilities specified in the plan.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 3
Performance Appraisal is the method of evaluating the behavior of employees in the work spot , normally including both quantitative and qualitative aspects of job performance. It is the activity used to determine the extent to which an employee performs work effectively. The other names of Performance Appraisal include Performance Evaluation, Performance Review, Personnel Rating, Merit Rating, Employee Appraisal, and Employee Evaluation.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 4
Objectives of Performance Appraisal Appraisal of employees serves several useful Purposes such as:
Compensation
decisions. Promotion decisions. Training and development programs. Feedback. Personal development.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 5
Format/Process of Appraisal
Performance appraisal must provide accurate and reliable data. In order to provide these a systematic process must be followed which is as follows: 1. Establish performance standards for each position and criteria for evaluation. 2. Establish performance evaluation policies on when to rate, how often to rate, and who should rate. 3. Have raters gather data on employees performance. 4. Have raters (and employees in some systems) evaluate employees performance. 5. Discuss the evaluation with the employees. 6. Make decisions and file evaluation. Step 1 of this process is completed when an organization conducts a job analysis. 6 Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai
c) Sensitivity: Any criterion must be able to reflect the difference between high and low performers. That is, high and low performers must receive criterion scores that accurately represent the difference in their performance. d) Practicality: The criterion must be measurable, and data collection cannot be inefficient or too disruptive.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 8
Operating Manager (Immediate Supervisor) Committee of Several Supervisors Employees Peers (Co-Workers) Employees Subordinates Self Appraisal. Consultants. Combination of Approaches (360 Degree Feedback).
1. Feedback from all; can be overwhelming. 2. Rater can hide in a group of rates and provide harsh evaluations. 3. Conflicting ratings can be confusing and frustrating. 4. Linking findings to rewards can prove to be unfair. 5. Requires a plan and welltrained raters which is not typically found in organizations.
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Performance appraisals are intended to evaluate the performance and potential of employees. Still these may not be valid indicator of what these are intended to assess because of a variety of limitations on their uses. The problems that affect the validity and dependability of the Performance appraisal systems are called Performance Appraisal Errors. These are as follows: Judgment Error Poor Appraisal Forms Lack of Rater Preparedness Ineffective Organizational Policies and Practices
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 16
First Impression( Primacy Effect) Latest Behavior (Recency Effect) Halo Effect Horn Effect Stereotyping Central Tendency Leniency Strictness Spillover Effect Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai
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Potential Appraisal
1. 2. 3. 4.
In the modern era of HRM, appraisal system lays greater emphasis on the development of employees rather than on their evaluation. This is better fulfilled by the Potential Appraisal which involves assessing the capability of an employee which he possesses but that is not being utilized fully. It is to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher responsibilities. Potential appraisals are required to: Inform employees about their future prospects. Help the organization chalk out a suitable succession plan. Update training efforts from time to time. Advise employees about what they must do to improve their career prospects.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 20
HIGH
3.PROBLEM CHILDREN 1. ?
POTENTIAL
PLANNED SEPARATION
LOW
LOW PERFORMANCE
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai
HIGH
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1. 2. 3. 4.
It is a potential-cum-performance based model. Philips uses a five-point scale to measure the potential of an employee and put him into one of the above quadrants. The potential appraisal criteria include the following: Conceptual Effectiveness (including vision, business orientation, entrepreneurial orientation, and sense of reality etc.) Interpersonal Effectiveness (including network directedness, negotiating power, personal influence, and verbal behavior etc.) Operational Effectiveness (including result orientation, individual effectiveness, risk-taking, and control etc.) Achievement Motivation (including drive, professional ambition, innovativeness, and stability etc.) Once the potential of an employee is measured along these dimensions on a five-point scale, Philips lays down a fast-track career growth plan for the star performers (five to ten year plan)
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 24
3.Appraisal Feedback
1. 2. 3. 4.
Appraisal Feedback must be provided to employees to enhance their Self-Perception. Self-Perception is the process of understanding oneself: Where he stands in terms of his efficiency. What his strengths and weaknesses are. To what extent, he is able to use his capabilities. How he can improve himself further.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 25
4.Performance Counseling
It is an interactive process between the employee and his counselor to anticipate the likely problems in job performance, defining proactive actions to overcome those problems, and implementing those actions on a continuous basis. Steps in Performance Counseling: Rapport between employee and counselor.
Exploring information about performance. To define future goals. Drawing action plans.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 26
Organizational culture for performance improvement. Continuous desire for learning. Continuous dialogue. Focus on work-related behavior.
Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai 27