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The Appraisal System.
Concepts of Appraisal & Appraisal Methods




                        Presenters: [Group   2]   Roll Nos.

                        ARKAPAL SIL               09
                        ARUN MOHTA                12
                        BINIT KUMAR DAS           14
                        ARPO MUKHERJEE            11
                        ADITYA SINGH BAIS         13
                        ANKUR ANAND               08
CONTENTS

Definitions
Meaning

Objectives of Performance Appraisal

Methods of Performance Appraisal

360 degree performance appraisal

Issues in appraisal system

Advantages
Disadvantages

Conclusion
Definitions
According to Newstrom, “It is the process of evaluating
the   performance   of    employees,    sharing    that
information with them and searching for ways to
improve their performance’’.
Meaning
    Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees .

      A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in terms
of its requirements.
Objectives of Performance Appraisal

                       According to:
        Employee                          Organization

Concrete and tangible
                                    Measuring the efficiency
particulars about their work
                                    Maintaining organizational
Assessment of
                                    control.
performance
                         Aims at:
                               Mutual goals of the
 Personal development         employees & the organization.
 Work satisfaction            Growth & development
 Involvement in the
                               Increase harmony & enhance
organization.
                               effectiveness
Methods of Performance Appraisal
    Traditional Methods              Modern Methods
 1. Paired comparison
                                 1. Assessment Center
 2. Graphic Rating scales
                                 2. Appraisal by Results or
 3. Forced choice Description
    method                          Management by
 4. Forced Distribution Method      Objectives
 5. Checks lists                 3. Human Asset
 6. Free essay method               Accounting
 7. Critical Incidents           4. Behaviorally Anchored
 8. Group Appraisal                 Rating scales
 9. Field Review Method
 10.Confidential Report
 11.Ranking
Paired Comparison Method

• Ranking employees by making a chart of all
  possible pairs of the employees for each trait
  and indicating which is the better Employee of
  the pair.
• It is useful where priorities are not clear
• This method is not appropriate if a large
  number of employee are required to be
  evaluated.
Ranking employees by paired comparison Method

   For the Trait “Quality of             For the Trait “Creativity”
            work”


                 Person rated                      Person rated
As compared to   A     B        C       As compared to A       B       C

                                             A             -       +   +
    A            +          -       +                          -
                 +     -        +                     +                +

                                             B             +       -   +
    B             --   ++           -
                                    -                 -        +       -

    C            ++    --       +
                                +           C         ++       -+      +
                                                                       -
Graphic or Linear Rating Scales

• A scale that lists a number of traits and a
  range of performance for each. The employee
  is then rated by identifying the score that best
  describes his or her performance for each
  trait.
• It includes the employee characteristics and
  employee contribution
Graphic or Linear Rating Scales
 Attitude
    0              5              10               15             20

No interest   Careless:       Interested in   Enthusiasti    Enthusiastic
In work:      In-different    work:           c about job    opinions &
consistent    Instructions    Accepts         &              advice
complainer                    opinions &      fellow-        sought by
                              advice of       workers        others
                              others
Decisiveness
   0               5               10              15             20

Slow to       Take            Takes           Take           Take
take          decisions       decisions       decisions in   decisions
decisions     after careful   promptly        consultation   without
              consideration                   with others    consultation
                                              whose views
                                              he values
Forced choice method

Criteria                                Rating


1.Regularity on the job          Most            Least

•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
Forced distribution method




No.
of                          40%      20%
employees    10% 20%                          10%
            poor    Below average good        Excellent
                    average

                   Force distribution curve
Critical Incident method


Ex: A fire, sudden breakdown, accident

Workers                         Reaction           scale

A            Informed the supervisor immediately    5
B            Become anxious on loss of output       4
C            Tried to repair the machine            3
D            Complained for poor maintenance        2
E            Was happy to forced test               1
Specimen of Staff Assessment Form [Descriptive Essay Type]

                                 Staff Appraisal
Name . . . . . . .                              Job Title . . . . . . .
Department . . . . . . . . . . . . Date of Review . . . . . . .
Age . . . . . .. . Years in present job
Section I                      Appraisal Of Performance
Note to Appraiser
1. Appraisal must cover the period of the preceding 12 months
2. Consideration to every function & responsibility of the job
3. An objective factual assessment of an employee’s improvement or
   deterioration

Section II                   Promotability & Potential
Promotability
1. Promotion now
2. Within 2 years
3. Within 5 years
4. Unlikely to qualify for promotion
Section III             Career Development
Section IV                 Notes on Interview with employee

Section V                 Comments on & Endorsement by Reviewing Authority
Field review method

Performance            subordinate   peers superior   customer
Dimension

Leadership                 ^                              ^

Communication              ^          ^

Interpersonal skills       ^          ^

Decision making                       ^        ^         ^

Technical skills                      ^        ^         ^

Motivation                            ^        ^         ^
Management By Objectives

The MBO concept, as was conceived by Drucker, reflected
a management philosophy which values and utilizes
employee’s contributions. Application of MBO in the field
of performance appraisal is a very recent thinking.
MBO Process

Set organizational goals
Defining performance target
Performance review
Feedback
The Performance Appraisal System.
Behavioral Anchored Rating Scales
 Performance    Points                       Behavior
Extremely       7        Can expect trainee to make valuable suggestions
good                     for increased sales and to have positive
                         relationships with customers all over the
                         country.
Good            6        Can expect to initiate creative ideas for improved
                         sales.
Above average   5        Can expect to keep in touch with the customers
                         throughout the year.
Average         4        Can manage, with difficulty, to deliver the goods
                         in time.
Below average   3        Can expect to unload the trucks when asked by
                         the supervisor.
Poor            2        Can expect to inform only a part of the
                         customers.
Extremely poor 1         Can expect to take extended coffee breaks &
                         roam around purposelessly.
360 degree performance appraisal
360 degree performance appraisal
Examples of 360 degree performance appraisal
                   method

These companies are using 360 Degree
Performance Appraisal Method


Wipro                    Maruti Udyog
Infosys                  HCL Technologies
Reliance Industries      Wyeth Consumer
                          Health (WCH)
Issues in appraisal system
                    Formal and informal

  What methods?
                                      Whose performance?


When to evaluate?      Appraisal
                                       Who are the raters?
                        Design


                                      What problems?
  What to evaluate?

                      How to solve?
Advantages

                Provide a record of
                performance over a
                period of time.


Can be motivational              Provide an
with the support of a            opportunity for a
good reward and                  manager to meet &
compensation                     discuss performance


   Provide an
   opportunity for an          Provide the employee
   employee to discuss         with feedback about
   issues and to clarify       their performance
   expectations
Disadvantages
                      If not done appropriately, can
                      be a negative experience.

Very time
consuming, especially for a
manager
                       Subject to rater errors &
                       biases.

If not done right can be a
complete waste of time.

                       Can be stressful for all
                       involved
Conclusion
 Because many of the more conventional performance
  appraisal methods have often proved unpopular with those
  being appraised and evaluators a like, 360 is gaining popularity
  with many managers and employees.
 It offers a new way of addressing the performance issue.
 When used with consideration and discipline, feedback
  recipients will feel that they're being treated fairly.
 In addition, supervisors will feel the relief of no longer carrying
  the full burden of assessing subordinate performance.
 The combined effect of these outcomes should result in
  increased motivation, which in turn improves performance.
The Performance Appraisal System.

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The Performance Appraisal System.

  • 1. The Appraisal System. Concepts of Appraisal & Appraisal Methods Presenters: [Group 2] Roll Nos. ARKAPAL SIL 09 ARUN MOHTA 12 BINIT KUMAR DAS 14 ARPO MUKHERJEE 11 ADITYA SINGH BAIS 13 ANKUR ANAND 08
  • 2. CONTENTS Definitions Meaning Objectives of Performance Appraisal Methods of Performance Appraisal 360 degree performance appraisal Issues in appraisal system Advantages Disadvantages Conclusion
  • 3. Definitions According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
  • 4. Meaning Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
  • 5. Objectives of Performance Appraisal According to: Employee Organization Concrete and tangible Measuring the efficiency particulars about their work Maintaining organizational Assessment of control. performance Aims at: Mutual goals of the  Personal development employees & the organization.  Work satisfaction Growth & development  Involvement in the Increase harmony & enhance organization. effectiveness
  • 6. Methods of Performance Appraisal Traditional Methods Modern Methods 1. Paired comparison 1. Assessment Center 2. Graphic Rating scales 2. Appraisal by Results or 3. Forced choice Description method Management by 4. Forced Distribution Method Objectives 5. Checks lists 3. Human Asset 6. Free essay method Accounting 7. Critical Incidents 4. Behaviorally Anchored 8. Group Appraisal Rating scales 9. Field Review Method 10.Confidential Report 11.Ranking
  • 7. Paired Comparison Method • Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair. • It is useful where priorities are not clear • This method is not appropriate if a large number of employee are required to be evaluated.
  • 8. Ranking employees by paired comparison Method For the Trait “Quality of For the Trait “Creativity” work” Person rated Person rated As compared to A B C As compared to A B C A - + + A + - + - + - + + + B + - + B -- ++ - - - + - C ++ -- + + C ++ -+ + -
  • 9. Graphic or Linear Rating Scales • A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait. • It includes the employee characteristics and employee contribution
  • 10. Graphic or Linear Rating Scales Attitude 0 5 10 15 20 No interest Careless: Interested in Enthusiasti Enthusiastic In work: In-different work: c about job opinions & consistent Instructions Accepts & advice complainer opinions & fellow- sought by advice of workers others others Decisiveness 0 5 10 15 20 Slow to Take Takes Take Take take decisions decisions decisions in decisions decisions after careful promptly consultation without consideration with others consultation whose views he values
  • 11. Forced choice method Criteria Rating 1.Regularity on the job Most Least •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular
  • 12. Forced distribution method No. of 40% 20% employees 10% 20% 10% poor Below average good Excellent average Force distribution curve
  • 13. Critical Incident method Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1
  • 14. Specimen of Staff Assessment Form [Descriptive Essay Type] Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1. Appraisal must cover the period of the preceding 12 months 2. Consideration to every function & responsibility of the job 3. An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability 1. Promotion now 2. Within 2 years 3. Within 5 years 4. Unlikely to qualify for promotion Section III Career Development Section IV Notes on Interview with employee Section V Comments on & Endorsement by Reviewing Authority
  • 15. Field review method Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^
  • 16. Management By Objectives The MBO concept, as was conceived by Drucker, reflected a management philosophy which values and utilizes employee’s contributions. Application of MBO in the field of performance appraisal is a very recent thinking.
  • 17. MBO Process Set organizational goals Defining performance target Performance review Feedback
  • 19. Behavioral Anchored Rating Scales Performance Points Behavior Extremely 7 Can expect trainee to make valuable suggestions good for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks & roam around purposelessly.
  • 22. Examples of 360 degree performance appraisal method These companies are using 360 Degree Performance Appraisal Method Wipro Maruti Udyog Infosys HCL Technologies Reliance Industries Wyeth Consumer Health (WCH)
  • 23. Issues in appraisal system Formal and informal What methods? Whose performance? When to evaluate? Appraisal Who are the raters? Design What problems? What to evaluate? How to solve?
  • 24. Advantages Provide a record of performance over a period of time. Can be motivational Provide an with the support of a opportunity for a good reward and manager to meet & compensation discuss performance Provide an opportunity for an Provide the employee employee to discuss with feedback about issues and to clarify their performance expectations
  • 25. Disadvantages If not done appropriately, can be a negative experience. Very time consuming, especially for a manager Subject to rater errors & biases. If not done right can be a complete waste of time. Can be stressful for all involved
  • 26. Conclusion  Because many of the more conventional performance appraisal methods have often proved unpopular with those being appraised and evaluators a like, 360 is gaining popularity with many managers and employees.  It offers a new way of addressing the performance issue.  When used with consideration and discipline, feedback recipients will feel that they're being treated fairly.  In addition, supervisors will feel the relief of no longer carrying the full burden of assessing subordinate performance.  The combined effect of these outcomes should result in increased motivation, which in turn improves performance.