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    A process that unites goal setting,

    performance appraisal, and

    development into a single, commonsystem whose aim is to ensure that the

    employees performance is supporting

    the companys strategic aims.

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    Performance Appraisal is a process ofevaluating an employees performancein terms of its requirements.

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    Performance appraisal, is considered to be one part or

    phase of performance management system. It can also be

    defined as a difference between an event and a year roundactivity. Performance Management ensures continuous

    improvement in employees capacity and that he possesses

    the required training and skills to achieve his targets along

    with feed back.

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    Broader Than

    Performance AppraisalBegins with a look at goals &

    strategies of the organization

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    Researchers found that companiesthat used performance managementprograms had greater profits, bettercash flow, stronger stock marketperformance, greater stock value andhigher sales per employee (orproductivity) than companies thatdidnt.

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    A leading edge organization seeks to create an efficient and effective

    performance management system to:

    Translate agency vision into clear measurable outcomes that

    define success, and that are shared throughout the agency and

    with customers and stakeholders; Provide a tool for assessing, managing, and improving the overall

    health and success of business systems;

    Continue to shift from prescriptive, audit- and compliance-based

    oversight to ongoing, forward-looking strategic partnership

    involving agency headquarters and field components; Include measures of quality, cost, speed, customer service, and

    employee alignment, motivation, and skills to provide an in-depth,

    predictive performance management system; and

    Replace existing assessment models with a consistent approach

    to performance management

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    Employee performance management includes:

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    Provide information about the performance ranks basing on whichdecisions regarding salary fixation, confirmation, promotion,transfer and demotion.

    Provide feedback information about the level of achievement andbehavior of subordinate. This information helps to review the

    performance of the subordinate, rectifying performancedeficiencies and to set new standards of work, if necessary.

    Superior uses them as a base for coaching and counseling theindividual. Provide information which helps to counsel thesubordinate.

    Provide information to diagnose deficiency in employee regardingskill, knowledge, determine training and development needs andto prescribe the means for employee growth provides informationfor correcting placement.

    To prevent grievances and in disciplinary activities.

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    To create and maintain a satisfactory level of performance.

    To contribute to the employee growth and development throughtraining, self and management development programs.

    To help the superiors to have a proper understanding about theirsubordinates.'

    To guide to job changes with the help of continuous ranking. To provide fair and equitable compensation based on

    performance.

    To facilitate for testing and validating selection tests, interviewtechniques through comparing their scores with performanceappraisal ranks

    To provide information for making decisions regarding lay off,retrenchment etc.

    To ensure organizational effectiveness through correctingemployee for standard and improved performance, and suggestingthe change in employee behavior.

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    At the first stage, performance standards are established based on

    job description and job specification.

    The second stage is to inform these standards to all employees

    including appraisers.

    The third stage is following the instructions given for appraisalmeasurement of employee performance by the appraisers through

    observations, interview, records and reports.

    The fourth stage is finding out the influence of various internal and

    external factors on actual performance of the employee and

    others.

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    The fifth stage is comparing the actual performance with the

    standards and finding out the deviations.

    The sixth stage is communicating the annual performance of the

    employee and other employees doing the same job and discuss

    with him about the reason for positive or negative deviations. The seventh stage is suggesting necessary changes in standards,

    job analysis, and internal and external environment.

    The eighth stage is follow-up of performance appraisal report.

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    Supervisor

    Peers

    Subordinates

    Self Appraisal

    Customers

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    Graphic rating scale.

    Ranking method.

    Forced distribution method.

    Critical incident method. Essay method.

    BARSbehaviorally anchored rating scale.

    MBOmanagement by objectives.

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    Graphic or Trait Rating Scales

    Ratings are based on traits or characteristics of the

    job incumbent

    Examples: Dependability, Honesty, TeamPlayer, Job Knowledge, etc.

    Ratings are usually on a Liker-type scale (1-5)

    Usually the least helpful or accurate

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    Forced Distribution Method

    Just like a bell curve in academia

    Categories are just like in Trait Scales

    Difficult for supervisors to use and VERY difficult tojustify to employees

    Standards for ratings have to be crystal clear in order

    to work properly

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    Behaviorally Anchored Rating Scales (BARS)

    Provides concrete examples for the desirable,

    acceptable, and unacceptable behaviors

    Very easy to use for supervisors, and valid toemployees

    Legally defensible

    Expensive and time-consuming to develop

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    Management By Objectives (MBO)

    Based on achievement of goals/objectives

    Feedback is given frequently over the goal-

    setting period

    Adjustments are made to the goals and time

    tables as feedback is given

    Rewards are typically given for meeting goals Problem: setting low, unchallenging goals

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    360r Feedback

    Method uses multiple raters (e.g., supervisor, peers,

    subordinates, customers) to gather feedback on those

    aspects of performance well-known to the rater All information is compiled into one feedback report

    that is presented to the employee

    A self-improvement plan is developed to overcome

    weaknesses and capitalize on strengths

    Usually used for development; generally not used for

    salary increases because of political reasons

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    INTERVIEW

    An interview in which the supervisor andsubordinate review the appraisal and make

    plans to remedy deficiencies and reinforcestrengths.

    There are four types of appraisal interviews.

    1. Satisfactory Promotable

    2. Satisfactory Not promotable3. Unsatisfactory Correctable

    4. Unsatisfactory - Uncorrectable

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    Halo Effect:Appraising based on single characteristic.

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

    Leniency Effect : Depending on raters own mental make-up atthe time of appraisal , raters may be rated very leniently.

    Stringency Effect : Depending on raters own mental make-up atthe time of appraisal, raters may be rated very strictly

    Regency Effect : The rater gives greater weight age to recentoccurrences than earlier performance.

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    1. Environmental constraints.2. Organizational leadership3. Interdependence of sub-systems4. Organizational structure

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    To improve the performance of the employees of the organizationone should have to follow these recommendations:

    The first step should be that every department and employee ofevery department should clearly know about the goals and missionof the company.

    It is suggested that individual employees may be informed about

    his /her performance rating. A report on the assessment may begiven to the individual concerned to know about his strength andweakness. This will give an opportunity to the employee toimprove up on his strength and overcome his weakness for furtherdevelopment.

    Strong commitment from top management is required.

    Each employee knows about the rules and regulations of thecompany.

    There should be some standards made for comparing the presentperformance of each employee against that performance. Theperformance standard should be different from level to level.

    The reporting officer should contact with his/her subordinate workerafter every week so that if he/she have any problem, it can betackled out or through this if the worker is not working well thesupervisor can guide him/her for improving the performance

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    The incentives given to the employees should be basis on the

    right decision. Appraisal form could be provided so that everyone can know

    about his/her performance.

    The employees hired for the job should have the abilities whichare required by the organization.

    The reporting officer should have keep the performance data ofeach subordinate.

    The reporting officer should give monthly feedback to thesubordinates regarding their performances and thereby givingsuggestions to improve.

    Guideline should be given to every employee in this regard.

    Follow the rule of right people on the right job is necessary forthe performance.

    The performance appraisal system in the organization isconducted once in a year and this is used mostly foradministrative purpose like promotions, salary increases etc., itis suggested that performance appraisal could be done at morefrequent intervals, so that it will provide feedback on acontinuous basis.

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    Developing an effective performance appraisalsystem requires strong commitment from topmanagement: if the system does not provide

    the linkage between employee performanceand organizational goals, it is bound to be lessthan completely effective. An effective systemof performance appraisal is a major componentof an organization that allows every employee

    to feel that his/her contribution has contributedto the success of the organization and a desireto add to that success.

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    Thank You