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DNV INTERNATIONAL EDUCATION ACADEMY

Human Resource Management


Performance Appraisal and Job Evaluation
Submitted to:- Miss. Abha Kalaiya

Submitted by:- Mahesh Gorsia, Lalit Moryani, Vishal Pandya, Rohit Kumbhar, Yuraj Jadeja, Dharmandra Jogchand, Shweta Khanna, Japleen Kour

23-Sep-11

In this we have covered unit: 4-Performance Appraisal and Job Evaluation, Which can be very helpful to you in the preparation of examination.

Performance Appraisal Meaning:- Performance Appraisal means the systematic evaluation of the performance of an employee by an expert or his immediate superior. Definition:- Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Importance:- Now a days, the management uses performance appraisal as a tool. The scope of performance appraisal is not limited to pay fixation and is enlarge to include many decisions: 1. Performance Appraisal helps the management to take decision about the salary increase of an employee. 2. The continue evaluation of an employee helps in improving the quality of an employee in job performance. 3. The performance appraisal brings out the facilities available to an employee, when the management is prepared to provide adequate facilities for effective performance. 4. It minimizes the communication gap between the employer and employee. 5. Promotion is given to an employee on the basis of performance appraisal. 6. The training needs of an employee can be identified through Performance appraisal. 7. The decision for discharging an employee from the job is also taken on the basis of Performance appraisal. 8. Performance appraisal is used to transfer a person who is misfit for a job to the right placement. 9. The grievances of an employee are eliminated through Performance appraisal. 10. The job satisfactions of an employee increase the moral. This job satisfaction is achieves through Performance appraisal. 11. It helps to improve the employer and employee relationship. Method of performance appraisal:360 degree feedback: 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

Management by objective:Is to establish the goals each subordinate is to attain. In some organisations, superior and subordinates work together to establish goals. In other, superior establish goals for subordinate. These goals can then by used to evaluate employee performance.

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Setting the performance standard for the subordinate in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done.

The actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons, for the goals that were not met and for the goals that were exceeded. This step helps determine possible training needs.

Involves establishing new goals and, possibly, new strategies for goals not previously attained. subordinate and superior involvement in goal-setting may change.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees. The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

Assessment center: An assessment center is a central location where managers may come together to have their participation in job-related exercises evaluated by trained observers. Mostly used for executive hiring, assessment centers are now being used for evaluating executive or supervisory potential.

Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments. Assessment centers simulate the employees on the job environment and facilitate the assessment of their on the job-performance. An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies and on the job behavior and potential to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

An assessment centre for Performance appraisal of an employee typically includes: Social/Informal Events An assessment centre has a group of participants and also a few assessors

which gives a chance to the employees to socialize with a variety of people and also to share information and know more about the organization. Information Sessions information sessions are also a part of the assessment centres. They provide information to the employees about the organization, their roles and responsibilities, the activities and the procedures etc. Assignments- assignments in assessment centres include various tests and exercises which are specially designed to assess the competencies and the potential of the employees. These include various interviews, psychometric tests, management games etc. all these assignments are focused at the target job. The following are the common features of all assessment centres: The final results is based on the pass/fail criteria All the activities are carried out to fill the targeted job. Each session lasts from 1 to 5 days. The results are based on the assessment of the assessors with less emphasis oneself-assessment

An organizations human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. Job evaluation Meaning:- Job evaluation seeks to determine the relative worth of each job so that salary differential can be establish. In jog evaluation only jobs are rated unlike in performance appraisal where only job holders are rated. Explanation:- Job evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization. Jobs are evaluated on the basis of their content and are placed in the order of their importance. In this way, a job hierarchy is established in the organization, the purpose being fixation of satisfactory wage differential among various jobs. Importance:1. It instils a useful discipline in formulating a job structure. 2. The contents, requirements of jobs and limits of discretion in respect of jobs can be formally ascertained to the satisfaction of all employees. (e.g. management, incumbents and other employees/stakeholders). 3. The process and results of job evaluation provide useful aids in: Recruitment and selection. Establishment of training needs. Training of individual employees. Performance appraisals.

Career planning and development. Human capital planning. Organisational development. Job structuring. Collective bargaining, etc. 4. Job evaluation provides: For re-structuring of jobs and job relationships where anomalies in these may occur. A comparison of internal rates of remuneration within the market. An objective basis for collective bargaining in determining rates of pay and benefits. A basis for the development and maintenance of a certified remuneration scale within an organisation.

5. It is totally compatible with the concept of paying the rate for the job. 6. It will indicate whether a wage gap or any other anomalies exist. Different between performance appraisal and job evaluation. Employee is rated on the basis of his or her performance. The job is rated, keeping in view such factors as responsibility, qualification, experience and working condition required for performance of the job. A job is rated before the employee is appointed to occupy it. The purpose is to establish satisfactory wage differentials. It is not compulsory. Many organizations carry on without it. Where it is followed, it is mainly for lower level jobs. Job evaluation committee (comprising international and external experts) is constituted for the purpose of evaluation.

Evaluation takes place after the employee has been hired and placed on a job. The purpose is to effect promotions, offer reward, awards, punishments, assess training needs, resort to lay-offs and transfers Compulsory. It is done regularly for all jobs.

Appraisal is done by employees themselves, peers, superiors, group of people, or combinations of these.

Guidance :- Miss. Abha Kalaiya. books:- -Human Resource Management, by K Aswathappa. Sixth edition, Chapter no-10. Appraising and Managing Performance. -Principles of management, by T. Ramasamy. Eighth Revised Edition, Chapter no-6. Performance Appraisal. Site visited:- http://appraisals.naukrihub.com/ http://www.google.co.in/

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