performaance appraisal

8/9/2019 Performaance Appraisal

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PT.JNIBM

VIKRAM UNIVERSITY, UJJAIN

PERFORMANCE APPRAISAL

Guided By: - Prepared By:-

Dr. Ravindra Jain Nitin Shringi

Neetish Choubey


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PERFORMANCE APPRAISAL

Performance appraisal is an objective assessment of an individualsperformance against well defined benchmarks.According to Garry Desseler, A process that consolidates goal setting,performance appraisal and development into single, common system, theaim of which is to ensure that the employees performance is supporting thecompanys strategic aims.

Performance appraisal is a continuous function and not merely an issue offormal reports at particular points in time. It is an ongoing responsibility of thesupervisor to determine how effectively his subordinates are performing differenttasks allotted to them in their positions to identify and correct their weak pointsand to recommend them on the basis of their potentialities for promotion to

higher positions in the organization.

FEATURES OF PERFORMANCE APPRAISAL

1) Setting SMART Goals for Employees:

Goal setting provides leaders, managers and employees with web-based tools to set

SMART goals and track progress on frequent intervals.

2) Evaluate Employee Performance:

Employee Appraisal ensures objective and accurate evaluation of your

employees performance and helps you find the strengths and weakness of the employee.

3) Coach and Train Employees to improve their performance:

To continually improve performance of your organization you need to continuouslytraining employees to update their skills and competencies. Training Management allows

you manage employee training effectively.

4) Define competitive employee compensation plans:

Employee compensation plan helps you to remain competitive in your business and

attract and retain talented employee.

5) Promote right employees to critical positions:Organizations success by placing right employee in right positions


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OBJECTIVE OF PERFORMANCE APPRAISALObjectives of Performance appraisal:

1) To review the performance of the employees over a given period of time.

2) To judge the gap between the actual and the desired performance.

3) To help the management in exercising organizational control.

4) Helps to strengthen the relationship and communication between superior

subordinates and management employees.

5) To provide feedback to the employees regarding their past performance.

6) Provide information to assist in the other personal decisions in the organization.

7) Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.

8) To judge the effectiveness of the other human resource functions of the organization

such as recruitment, selection, training and development.

9) To reduce the grievances of the employees

METHODS OF PERFORMANCE APPRAISAL

Once the employees has been selected, trained and motivated, he is then apprised for

his performance. Performance appraisal is the step where the management finds out

how effective it has been hiring and placing employees. If any problem is identified,

steps are taken to communicate with the employees and to remedy them. So so aperformance appraisal is a process of evaluating an employees performance of a job

in terms of its requirement

Several methods and techniques of appraisal are available for measurement of the

performance of the employee. The methods and scales differ for obvious reason.

First they differ in sources of traits and qualities to be apprised. The quality maydiffer because of difference in job requirements.

Second they differ because of different kinds of workers who are being rated .third

the variation may be caused by the degree of precision attempted in an evaluation.Finally they differ because of the method used to obtain weighting for various traits.


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The performance appraisal method is divided into three categories these areTrait-based method

Behavioral method

Comparative method

Result oriented method

The part concerned with me is the comparative methods

There are so many methods which are include in comparative method but the most

important and most popular areStraight ranking method

Grading method

Graphing rating method

Forced choice description method

Check list method

Free from easy method

Straight ranking methodIt is the oldest and simplest method of performance appraisal, by which the man and

his performance are considered as an entity by the rater. No attempted is to made tofractionalize the rate; the whole man compared with the whole man; that is the

ranking of a man in a work group is done against that of another. The relative position

of each man is tasted in terms of his numerical rank.

Limitation- this is the simplest method of separating the most efficient from the leastefficient and relatively easy to develop and use. But the greatest limitation of his

method is the

In practice it is very difficult to compare a single individual with human

beings having various behavior traits

The method only tell us how a man stands in relation to the others in the

group but does not indicate how much better or worse he is than another

It is difficult task when large number of person are rated


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It does not eliminate snap judgment.

Grading method-Under this system, the rater consider certain feature and marks them accordingly to

the scale, train categories of worth are first established and carefully defined. The

selected feature may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, leadership, etc they may be

A-out standing B-very good C-average D-fair E-poorThese are used in the selection of candidates by the public service commission

Limitation- in this method we cant get the actual performance of the employee. for

example if consider that those employee who got 50 to 60 point is in average then thewho got 50 point may be de motivated and who got 51 point may be happy with that

appraisal .

Graphic Rating MethodThis is the most commonly used method of performance appraisal. Under it a printed

form one for each person to be rated. The factors which are including in this methodare employee characteristics and employee contribution. In employee characteristicsare included are leadership, attitude, enthusiasm, locality creative ability, analytical

ability, co-ordination. In the employee contribution are include the quantity and

quality of work, the responsibility assumed, specific goal achieved, regularity ofattendance. These traits then evaluated on continuous scale where in the rather place a

mark somewhere along a continuum

Limitation-

However this method also not free from limitation1) The rating is generally subjective often the rating cluster on the high

side when this method is used

2) Another severe limitation is that it assume that each characteristics is

equally important for all jobs

Forced choice description methodit attempts to correct a rater tendency to give consistently high or low rating to all the

employees under this method the rating elements are several sets of pair phrases or

adjective relating to job proficiency and personal qualification the following

statement are illustrative of the type of statement that are usedOrganize the work well

Lacks the ability to make people feel at ease

Has a cool even temperament

Is punctual and careful

Is a hard worker and co-operative

Limitation-


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Trained technicians are required prepare sets of series for each

occupational group

Most of the raters become irritated with the test because they are not

being trusted

The result of evaluation dont prove useful for training purposes because

the rater is ignorant of how he is evaluating the individual

Checklist methodUnder this method the rater does not evaluate employee performance; he supplies

report about it and the final rating is done by personnel department. A series of

question are presented concerning an employee to his behavior. The rater then checksto indicate if the answer to a question about an employee is positive or negative. The

value of each question may be weighed equally or certain question may be weighed

more heavily then others.

Example-Is the employee really interested in job? Yes/no

Is he regular on his job? Yes/no

Is he equipment maintain in order? Yes/no

Does he ever make mistake? Yes/no

Does he follow instruction properly? Yes/no

Limitation-This method suffers from bias on the part of the rater because he can

distinguish positive or negative question

Process can be expensive and time consuming

Separate checklist must be developed

Free essay methodUnder this method the supervisor makes a free form, open ended appraisal of anemployee in his own words and put down its impression about the employee. He

takes note of these factors

Relation with fellow supervisor

General organization and planning ability


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Job knowledge and potential

Employee characteristics and attitude

Production, quality, and cost control

Physical condition and

Development needs

Limitation-It contains a subjective evaluation of the reported behavior of an

individual may effect such employment decision as promotion, lay-off. Etc.

Some appraisal may not write a descriptive report

The appraisal may be loaded with flowery language about the quality of

rate then the actual evaluation

HOW IT IS CONDUCTED.

(1.) Develop questionnaire: A questionnaire used for 360 Performance

Appraisal typically contains items that are rated on a 5 point scale. These items

may be developed to measure different dimensions of job performance (e.g.,

communication, teamwork, leadership, initiative, judgment). Questionnaires

also typically include one or more open-ended questions to solicit written

feedback. Questionnaires typically include from 50 to 100 items. When estimating the

amount of time to complete the questionnaire they should estimate about 1 minute per

questionnaire item. If using a printed questionnaire form, they should consider using

forms that can be scanned into a computer.

(2.) Ensure confidentiality of participants Steps must be taken to ensure the

confidentiality of the feedback results. For example, feedback ratings from several

subordinates may be combined (averaged) to mask the identity of an individual

subordinate. The confidentiality helps ensure that the results are genuine.


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(3.) Provide training/orientation often the feedback process involves use of one

or more questionnaires, confidential information, and involvement from many

different areas of an organization. Therefore, training and orientation to the

feedback process is needed to facilitate a smooth feedback process. During this

training/orientation, employees should be informed of what 360 Performance

Appraisal is and why it is being implemented at the organization. They may

want to provide samples of the questionnaire items and/or feedback results.

(4.) Administer the feedback questionnaire Distribute questionnaire forms (if

using printed copies) with instructions. May want to prepare answers to common

questions if other employees will be assisting in the administration. If

possible, post the questions and answers to their web site for easy access.

It is important to monitor the progress through the system in order to contact

employees who need to complete forms.

(5.) Analyze the data Basic data analysis would include averages of ratings.More complicated analyses may include item-analysis and/or factor-analysis.

Types of analyses include: Performance Dimension Summary; Summary-

Performance vs. Expected; Individual Item Ratings; Item Ratings-Performance

vs. Expected (formed); Highest- or Lowest-Rated Items (shows individual's

strengths and weaknesses); Group & Organizational Ranking, and

Recommendations for Development.

They may want to analyze the data by organizational division or department to assess

group and organizational strengths and weaknesses. This can be used to support or

promote training and organizational development.

(6.) Develop and Distribute Results Feedback results should be shared with the

employee. It should not be mandatory that the employee share the results with their

supervisor. However, they may want to make this an optional part of the performance

review of the employee.

Most results for an employee will include a comparison of their ratings to the

ratings of their supervisor and average of the ratings from others (peers,

customers...). The comparisons may be in the form of numbers or simple bar

charts.


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They may want to provide individual review sessions or group workshops

conducted by a facilitator to help individuals review and understand the results

and develop appropriate goals and objectives.

PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITED

In DABUR India Limited they have the system of performance appraisal of their

employees. The main objective of this performance appraisal system is to evaluate the

performance, promote their employees and to arrange for their various training

programmers if they require for enhancing their skills in their respective areas and in

contribution enhancement. Employees are evaluated by how well they accomplish a

specific set of objectives that have been determined to be critical in the successful

completion of their job. This approach is frequently referred to as .management by

objectives. Management by objectives is a process that converts organizational objectives


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into individual objectives. It can be thought of as consisting of four steps: goal setting,

action planning, self- control, and periodic reviews.

In goal setting, the organization's overall objectives are used as guidelines from which

departmental and individual objectives are set.

In action planning, the means are determined for achieving the ends established in goal

setting. That is, realistic plans are developed to attain the objectives.

Self-control refers to the systematic monitoring and measuring of performance.

Finally, with periodic progress reviews, corrective action is initiated when behaviors

deviates from the standards established in the goal-setting phase.

DABUR uses very constructive performance appraisal process while evaluating its

employees. Its evaluation is based on quantitative wise and objective wise. Company set

goals to its employee by properly reporting with its employees and then evaluating them

up to what extent it has been achieved and if there is failure in reaching the target what

are the causes or reasons behind it. Every evaluator has his or her own value system

which acts as a standard against which appraisals are made. Relative to the true or actual

performance an individual exhibits some evaluator ~ mark high and others low. The

former is referred to as positive leniency error and the latter as negative leniency error.

When evaluators are positively lenient in their appraisal, an individual's performance

becomes over- stated; that is, rated higher than it actually should. Similarly, a negative


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leniency error understates performance, giving the individual a lower appraisal. As such

there is no scope of error as far as the DABUR Company is concerned, but sometimes

over estimation of target brings about a description in the evaluating criteria. Thus,

though chances are less, positive leniency errors have been stated to be committed.

Outcome of Performance Appraisal

As far as DABUR Company is concerned, there are four outcomes possible:

A. Outstanding -If the performance evaluated by the management turns out to be

outstanding. If the employee performs in such a way as to collect 3 consecutiveoutstanding performances into his/her credit) he / she get promoted.

B. Excellent -If the performance evaluated by the management turns out to be excellent.If the employee performs in such a way as to collect 3 consecutive excellent

performances into his/her credit, he/she gets promoted.

C. Good -If the performance evaluated by the management turns out to be good. The

management sends the employee to the training programmed to improve his/.her skill to

perform form.

D. Below average -If the performance evaluated by the management turns out to be

below average. And, if the employee collects 3 below average to his/her credit, then

he/she dismissed

Duration of Appraisal System

The time constraints enables the employee to show or project his/her capabilities in term

of performance as per the duration allowed. In DABUR India Limited, the performance

appraisal system is carried out annually.

Feedback


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The company provides the annual feedback to its employees and thus, in term bring out

the highlights of the self assessment programmed. This enables the better communication

between the management and employees ad thus, helps in promoting the business future.

Response

There are mixed responses from the feedback by the employees. It has helped some of the

employees in motivating themselves while those who felt bad were thoroughly

communicated and all the confusion and failure part were discussed with employees.

Suggestions

In the organization, performance appraisal is done on an annual basis which

should be done Quarterly to make it more effective

Greater clarity has to be has to there in terms of job responsibility. This is

possible when the appraisal is done on the basis of the description.

Monetary difference between two grades should not be large, it should be

motivating in nature.

Performance appraisal system should be made more transparent and rationale.

To make sure to review performance time to time


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Assistance should be provided to improve poor performance. Make a realisticplan appropriate to the behavior and set a time frame for improvement

performaance appraisal

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