HUMAN RESOURCE

MANAGEMENT
UNIT-2

Performance Appraisal is the systematic

evaluation of the performance of employees and
to understand the abilities of a person for further
growth and development.

The process by which a manager 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.

Purpose of performance
appraisal
Strength and weakness

training and development need

PROCESS OF PERFORMANCE
APPRAISAL:
Establish the performance standard

METHODS OF
PERFORMANCE APPRAISAL

Traditional Methods rating of individuals

personality traits

Modern Methods- evaluation of work results.

Traditional Methods

Ranking Method:
One employee is compared with all other employee
for placing them in simple rank.
Limitations:
Difficult when large number of employees are
rated
Difficult when having various behaivoural traits.

Paired Comparison:
Each employee is compared with others on the basis
of one-on-one, usually it has only one trait.
Limitations:
Not suitable when Large number of employees
are compared.

Grading Method:
Certain categories of worth are established in advance
and carefully defined.
3 categories:
Outstanding
Satisfactory
Unsatisfactory.
Limitations:
Rater may rate most of the employees on the higher
side of their performance.

Forced Distribution Method:

The method assumes that employees performance
level confirms to a normal statistical distribution.
It is suitable for rating a large number of employees.

Forced-choice Method:
It contains a series of groups of
statements and rater rates how effectively.
Check-List Method:
In this method, series of statements
i.e. questions with yesor no

Essay Method:
The rater writes a narrative description on an
employees strengths, weakness, past performance,
potential and suggestions for improvement.

Field Review Method:

The review process is usually conducted by
personnel officer in the HR department.
Confidential Report:
Appraising employees mainly in the
Government Departments. Evaluation is made by
immediate supervisor for giving transfer and
promotion.

Modern methods for

performance appraisal

Modern methods for performance

appraisal
There

are five modern methods are

there...viz,
MBO (management by objectives)
BARS (behaviourly anchord rating scales)
Assessment centres
360-Degree appraisal
Cost accounting method

MBO

MBO-management by objectives.
according to drucker, the mbo is described as a
process where by the superior and sub-ordinate
managers of an organization jointly identify its
common goals, define each individuals major
areas of an responsibility in terms of results
expected of him and use these measures as
guides for operating the unit and assessing the
contributions of each of its members.

MBO
An MBO programme consist of 4 major
steps;
Goal setting
Performance standards
Comparision and
Periodic review.

MBO
Limitations of MBO:
Setting unmeasurable objective
Time-consuming
Tug of war
Lack of trust

BARS
BARSS-behaviourally anchord rating method
BARS are descriptionof vatious degrees of
behaviour with regards to a specific
performance dimension.

it combines the benefits or narratives,critical

incidents and quantified rating by anchoring a
quantified scale with specific behavoural
examples of food or poor performance.

BARS
Developing the BARS it involves 5 steps
Generating critical incidents
Developing performance dimension
Re-allocating incidents
Scalling incidents
Developing final BARS instrumens

Assessment centres
In the bussiness field, assessment centres
are mainly used for evaluating executive or
supervisiory potential.
By definition, an assessment centres is a
central location where managers come to
gether to participate in well designed
simulated excercises. They are assssessde
by senior managers suplemented by the
psychologist and the HR specialistfor 2-3
years

360-degree appraisal
This method was first developed and
formallu used by General Electrical
Company of USA in 1992.
Now in india like reliance industries, wipro
corporation,infosys etc.

360-degree appraisal
Under 360-degree appraisal, performance
information such as employees skills,
abilities and behaviours is called of an
employee.
In 360 degree appraisal system,an
employee is assessed by his supervisor,
peers, and customers with whom he
interacts employee by completing survey
questionnaires designed for his purpose.

Cost accounting method

This method evaluates an employees

perrformance fron the monetary benefits
the employee yield to his/her organization.
This is ascertained by establishinf a
relationship between the cost involved
inretaining the employee and the benefits
an organization derives from them.

Cost accounting method

Under this method they considering some
factors;
Overhead cost incurred
Human relationship with otherss
Unitwise average value of product
Accidents, damege, errors,spoilage caused
through unusual wear and tear.

Meaning
Training is the act of increasing the
knowledge and skill of an employee for
doing a particular job
It is concerned with increasing general
knowledge and understanding of the
employees total environment
Training, education and development are
closely related

Training and education

Specific, narrow and

job-related
Applied and practical
Short duration
Quick and apparent
results

Training

Scope is broad and

general
Pure and theoretical
Long duration
Not so quick and
apparent
Education

Training and development

Training
Meant for
operatives
Develop some
specific skills
One-shot affair
Initiative comes
from management
To meet present
need

Development
Meant for executives
Develop total
personality of the
individual
Continuous process
Comes from the
individual himself
Future needs

training
Training is the process of teaching the new
and present employees. the basic skills
they need to effectively perform their
jobs.
Alternatively speaking, training is the act
of increasing the knowledge and skills of
an employee for doing the job.

Importance of training
Better

performance: Improves employees

ability, skills, in turn, employees performance
both in quantity & quality. Better or increased
employee performance directly leads to
increased operational productivity &
organizational profits.
Improved quality: Uniformity in work

performance helps to improve the

quality of work or service. Better
informed or say ,trained workers are less
likely to make operational mistakes.

Less supervision: A trained worker is

self reliant. He knows his work and way
to perform it well. The supervisor can
devote his time on more urgent works.
Less learning period: A well planned &
systematically organized training
programme reduces the time & cost
involved in training.
High morale: It is not only improves the
ability & skills of employees, but also
changes employee attitude toward
positive.

Personal growth: It improves

employees ability, knowledge & skills
and prevents employees obsolescence.
This makes employees growth oriented.
Favourable organization climate : The
advantages combinedly lead to an
improved & favourable organizational
climate characterised by better
industrial relations & disciplines ,
reduced resistence to change reduced
absenteeism & turnover of employees &
improved stability of organisation.

METHODS OF OPERATIVE
TRAINING
On-the-job Training
Off-the-job Training

On-the-Job Training
Methods
Job Rotation
Coaching
Job Instruction
Committee Assignments
Apprenticeship
Mentoring
Internship

OFF THE JOB TRAINING

It occurs away from the work place.
where stress, frustration of the work are
eliminated.

Few examples are

Vestibule training
Role playing
Lecture methods
Conference
Programmed instruction
Case studies
Management games

Vestibule training
actual work condition, electrical works,
actual work performance.
Role playing
human interaction ,realistic behavior in
imaginary situation. Action doing and
practice act as manager, foreman,
supervisor,
Lecture methods
traditional and direct method, lecture
motivates and create interest.

Conference
trainee delivers a lectures, trainee clarifies his
doubts , big organization use this methods.

Programmed instructions
subject mater to be learned is presented
in a serious of sequential unit,
Case studies
analyze an event and suggest solutions.
Management games
games like best manger, ad act, etc

Career planning process

Analysing employee needs and aspirations
Analysing career opportunities
Identifying congruence and incongruence
Action plans and periodic reviews

feedback
Individual needs personal
individual
counseling development
career path

Organisational personal planning formal

training
needs