performance appraisal action

8/11/2019 Performance Appraisal Action

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PERFORMANCEAPPRAISAL(An Action System )


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What is Performance Appraisal?

Performance appraisal, is a method by which the job performance of anemployee is evaluated (generally in terms of quality, quantity, cost andtime).

Performance appraisals are an indispensable part of performancemeasurement.

To measure the performance of the employees and the organization tocheck the progress towards the desired goals and aims.

Self-appraisal & potential appraisal also form a part of the performanceappraisal processes.


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PERFORMANCE APPRAISAL

PromotionDemotionTransfer Training


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Objectives

Objectivesof

Performanceappraisal

ImprovePerformance

Organization's

Employees

Increase motivation &productivity

Enhance Transparency Establish Meritocracy Retain top talent Increase Commitment Improve collaboration Ensure accountability &

ownership Excellence and success


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Importance of PerformanceAppraisal

To review the performance of the emp over a givenperiod of time

To judge the gap b/w the actual & the desiredperformance

Provide information to assist in the HR decisionslike - promotions, transfers etc

Provide clarity of the expectations &responsibilities of the functions to be performed bythe emp

To judge the effectiveness of the other HRfunctions of the org such as - recruitment,selection, training & development

To diagnose the training and development needs ofthe future.

To reduce the grievances of employees.

Helps to strengthen the relationship &communication b/w superior subordinates & mgt


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Process of PerformanceAppraisal

Establishing performancestandards

Communicating the standards

Measuring the actualperformance

Comparing the actual withdesired performance

Discussing results

Decision making


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Performance Appraisal(SMART)

Specific

MeasurableAttainable

Relevant

Trackable


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Methods of PerformanceAppraisal

PA is broadly classified into 2 categories

1. Traditional Methods: Are relatively older methods ofperformance appraisal. These methods are based on studying thepersonal qualities of the employees. These may include knowledge,initiative, loyalty, leadership and judgment.

2. Modern Methods: Modern methods were devised to improveupon the traditional methods. Modern methods attempted to removethe shortcomings of the old methods such as subjectivity, bias etc.


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Methods of PerformanceAppraisal

RatingMethods

Checklists

GraphicRatingScale

ComparativeMethods

StraightRanking

PairedComparison

Grading

ForcedDistribution

ForcedChoice

NarrativeMethods

CriticalIncidents

Essay

FieldReview

ConfidentialReports

BehavioralMethods

MBO

BARS

HumanResource

Accounting

AssessmentCenters

360 Degree


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Rating Errors in PerformanceAppraisal

Halo Effect:Horn Effect:Recency biasContrast effectPersonal bias

Same as MeDifferent from meFirst impressionSpill over EffectStatus EffectStrict RatingLenient RatingStereotypingSelf fulfilling Prophecy


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Challenges of PerformanceAppraisal

Determining the evaluation criteria

Creating a rating instrument

Lack of competence

Errors in rating & evaluation

Resistance


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Reasons for PerformanceAppraisal Failure

Appraiser Lacks Information

Lack of Appraisal skills

Appraiser unserious about appraisals

Appraiser unprepared and uses unclear language

Employee Unreceptive to feedback

Appraisers personal biases and prejudices

Ineffective discussion of employee development

Insufficient rewards for performance


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Current Global Trends InPerformance Appraisal

Performance related pay is being incorporated in thestrategies used by the organizations .

Performance measuring, rating and review systems havebecome more detailed, structured and person specific thanbefore.

Trend towards a 360-degree and 720-degree feedbacksystem. The problems in the implementation of the performance

appraisal processes are being anticipated and efforts arebeing made to overcome them.


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VisionObjectives and

goals of theorganization

Value DriversStrategicperformancedimensions

Measures andEvaluation

Measures to ensurecontinuous improvementto encourage excellence

Action PlanDescription of

actions requiredto achieve thedesired results

Balanced ScorecardIdentification of the

performance criteriato manage and

achieve the vision

PerformanceAppraisal in theorganization of

future

Performance Appraisal in FutureOrganization


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CASE STUDYON COCA COLA

INTRODUCTION:

Coca-Cola's turnover in India has come after a period ofheavy investments

In 2003, Coca-Cola had 17 manufacturing units, 60distribution centers catering to 5,000 distributors and onemillion retail outlets, serviced via trucks and three-wheelers. Coca-Cola directly employed 10,000 people


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WHAT HAPPENED?

Coco colas competitor Pepsi had entered theIndian market and had already had a share of

about 25%

Coca-Cola decided to buy out a local soft drink

company, Parle, which had a 60% market share


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Where was the problem?

1. It focused on establishing the Coke brand quickly,positioning it as an international brand and notemphasizing local association. Neglect of Parle brandsled to their decline in market share

2. The operations of the small bottlers acquired fromParle system were inefficient and increased costs

3. Bottlers also had problems adjusting to Coca-Cola'swork culture


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What happened next??? Instability at the top also created problems for

Coca-Cola

Coca-Cola seemed to fritter away the jump-start itgot from the Parle acquisition

It received reports of gross violation ofdiscounting terms and credit policies and dubiouscash management practices


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As a result.

The findings were followed by a detailed performance appraisal, which ledto the resignation of 70 managers during the period, July-November 2000

After, adopting Performance Appraisal System following changes weremade in the organization:

1. The top management decided to provide necessary training to theemployees so that they can adapt to the new culture .

2. The company focussed on hiring new managers to compensate for loss ofmanpower due to resignation and making the recruitment and selectionprocess more effective .

3. The top management decided to make performance appraisal an integralpart of performance management.


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Conclusion

People differ in their abilities and their aptitudes. There isalways some difference between the quality and quantity ofsame work on the same job being done by two different

people. Therefore, performance management andperformance appraisal is necessary to understand eachemployees abilities, competencies and relative merit &worth for the organization so that the org can move in theright direction through excellence in performance andcommitment of employees.


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References http://www.naukrihub.com/

http://www.google.co.in/

http://www.citehr.com/

http://www.icmrindia.org/

http://www.princeton.edu/hr/manager/perfforms.htm

http://appraisals.naukrihub.com/performance-appraisal-approaches.html

http://appraisals.naukrihub.com/definition-concept.html

http://appraisals.naukrihub.com/modern-method.html


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THANK YOU

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