Performance Appraisal

Submitted by:-

Shantanu roy

RBS BANGALORE

CONCEPT

• Evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee

DEFINITION

• “performance appraisal is a formal assessment and rating of individuals by their managers at-usually-an annual review meeting”

- Michael Armstrong

OBJECTIVES

– Setting performance standards– Evaluating employee performance– Identifying training and developmental needs– Rewarding performance– Improving performance

Setting performance

standardsTaking correctivestandards

Discussingresults

Comparing standards

Measuringstandards

Communicatingstandards

PROCESS OF PERFORMANCE APPRAISAL

THE APPRAISAL PROCESS

– Determining performance standards– Measuring performance of the employees– Providing regular feedback to employees– Communicating results to employees– Rewarding and developing employees

METHODS USED IN PERFORMANCE APPRAISAL PROCESS

• Management by objectives

• 360- DEGREE FEED-BACK

• Graphic Rating Method

• Behaviorally Anchored Rating Scales (BARS)

MANAGEMENT BY OBJECTIVES

• Clear and well defined goals• Goals set with the active participation of the

employees• Used for managers and professionals• In alignment with organizational goals

360- DEGREE FEED-BACK

–The employees performance is evaluated by his supervisor, his peers, his internal/external customers, his internal/external suppliers and his subordinates

GRAPHIC RATING METHOD

– Includes numerical ranges and written description– Rating quality and quantity of work

– Disadvantages are…• Choice of employee behavior categories• Interpretation of description

Graphic Rating Scale•

• Employee name_________ Deptt_______• Rater’s name ___________ Date________• ------------------------------------------------------------------------• Exc. GoodAcceptable Fair Poor• 5 4 3 2 1 _ • Dependability• Initiative• Overall output• Attendance• Attitude• Cooperation• Total score Continuous Rating Scale

Behaviorally Anchored Rating Scales (BARS)

– Concentrate on behavioral traits

demonstrated by the employees instead of actual performance

BARS( behaviorally Anchored rating scale)

• Step 1. Identify critical incidents• • Step 2. Select performance dimension• • Step 3. Retranslate the incidents• • Step 4. Assign scales to incidents• • Step 5. Develop final instrument

Pitfalls in performance appraisal

Halo effect: Appraising based on single characteristic.

Horn Effect : The raters bias is in the other direction, where one negative quality of the employee is being rated harshly.

Leniency effect : Depending on rater’s own mental make-up at the time of appraisal , raters may be rated very leniently.

Stringency effect : Depending on rater’s own mental make-up at

the time of appraisal, raters may be rated very strictly Recency effect : The rater gives greater weightage to recent

occurrences than earlier performance.

Primacy effect ( First Impressions ) : The appraiser’s first impression of a candidate may colour his evaluation of all subdequent behavior.

Central tendency effect : An Alternative to the leniency effect. Which occurs when appraisers rate all employees as average performers.

Stereotyping : It is a mental picture that an individual holds about a person because of that person’s sex, age, religion, caste etc.,

USES OF PERFORMANCE APPRAISAL

– Training and development needs– Improving organizational effectiveness – Compensation management– Transfer and promotions– Identifying competency and skills

THANKSTOALL