HRM functions

1. Performance Appraisal Submitted by:- Shantanuroy RBS BANGALORE

2. CONCEPT Evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee

3. DEFINITION “performance appraisal is a formal assessment and rating of individuals by their managers at-usually-an annual review meeting” - Michael Armstrong

4. OBJECTIVES Setting performance standards Evaluating employee performance Identifying training and developmental needs Rewarding performance Improving performance

5. Setting performance standards Taking corrective standards Communicating standards Discussing results Measuring standards Comparing standards PROCESS OF PERFORMANCE APPRAISAL

6. THE APPRAISAL PROCESS Determining performance standards Measuring performance of the employees Providing regular feedback to employees Communicating results to employees Rewarding and developing employees

7. METHODS USED IN PERFORMANCE APPRAISAL PROCESS Management by objectives 360- DEGREE FEED-BACK Graphic Rating Method Behaviorally Anchored Rating Scales (BARS)

8. 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

9. 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

10. 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

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

12. Behaviorally Anchored Rating Scales (BARS) Concentrate on behavioral traits demonstrated by the employees instead of actual performance

13. 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

14. 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 Recencyeffect : The rater gives greater weightage to recent occurrences than earlier performance.

15. 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.,

16. USES OF PERFORMANCE APPRAISAL Training and development needs Improving organizational effectiveness Compensation management Transfer and promotions Identifying competency and skills

17. THANKS TO ALL