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in

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PRESENTED BY :
NAYAN PATEL SACHIN PATEL CHARMIN PATEL RISHIT JHAVERI SANDIP MANGUKIYA

(120110105018) (120110105029) (120110105016) (120110105012) (120110105061)

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DEFINITION:

It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance.

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INTRODUCTION:

Performance appraisal goes by various names such as performance rating , progress rating, merit rating , merit evaluation etc. Performance appraisal is the systematic evaluation of the individuals with respect to his or her performance on the job and his or her potential for development.

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BASIC STEPS IN A PERFORMANCE

APPRAISAL:

Conduct ongoing observation and measurements to track performance Exchange ongoing feedback about performance Conduct a performance appraisal If performance meets desired performance standards , reward for performance

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EXAMPLE :

Performance appraisal at Cloud International Organization.

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cloud conducts two appraisals :

1. At the end of the year 2. At the end of a projects

Appraisals are based on Balanced Scorecard, which tracks the achievements of employees on the basis of targets at four levels-

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1. Financial 2.Customer 3.Internal 4.Learning and Growth

The financial perspective quantifies the employees contribution in terms of revenue growth, cost reduction , improved asset utilization and so on. The customer perspective looks at the differentiating value proposition offered by the employee. The internal perspective refers to the employees contribution in creating and sustaining value. The learning and growth refers to the development of employee.

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APPRAISING AT CLOUD INTERNATIONAL:

Based on their individual achievements, employees are rated on a scale of one to five
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(five = superstar).If employees get a low rating (less than two) in two consecutive appraisals , the warning flags go up. if the poor performer continues getting low scores then the exit option may be considered

Over the years cloud has found the pattern that leads to the maximum decline in performance-boredom. If employees work for more than two years on the same project , typically either their performance dips or they leave the organization. To avoid that, shuffles its employees between projects every 18 months or so. Believes Performance drops if motivation drops

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Six steps to successful in performance appraisal:

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Preparation

Assessment

Reviewing Document

Appropriate setting

Deliver it clearly

Encouragement

PREPARATION :

The key to success in any endeavor is preparation. In this case, preparation means sitting down and creating objectives for the performance period. We've got to ensure that people know what's expected of them if we ever expect them to achieve it.

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ASSESSMENT :

A critical manager responsibility is assessing and giving timely feedback to your staff on their performance. There are many benefits to doing this. Feedback on performance that is given as soon as possible has proven to be the most effective.

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REVIEWING DOCUMENTS :

Before you actually do sit down with the employee, review all your documentation from the year. Take a look again at the objectives that you and the employee agreed to and documented at the beginning of the year.

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APPROPRIATE SETTING :

Make sure that you have an appropriate setting in which to deliver the appraisal. The most commonly used location, a manager's office, is often the worst place.

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DELIVER

IT CLEARLY

Deliver the appraisal in simple language. Don't use code or jargon, and don't mince words. Don't dance around the issue at hand even if the appraisal is not as positive as the employee might have hoped

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ENCOURAGEMENT :

At the conclusion of the performance appraisal meeting, which also marks the end of one performance appraisal cycle and the beginning of the next, your job is to encourage.

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CONCLUSION:

Performance Appraisal has a beneficial effect on both the persons doing the appraisal and being appraised.
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The Appraisal brings prominently to the attention of supervisors or executives the importance of knowing their subordinates as human resource.

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