Presentation by Hitesh Bhoir

Minal Jadhav Sandeep Kalkeri Sushma Muniraj

Roll no. 06
24 28 38

methods & Legal Perspective of performance Appraisal

Index
About Performance appraisal
Definition Meaning Objectives

Process of Performance Appraisal Methods / Techniques of Performance Appraisal

Traditional Modern

Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

Definitions
According to Newstrom, It is the process of evaluating

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

Meaning
Performance appraisal is the step where the management finds out how effective it has been at

hiring and placing employees .

A Performance appraisal is a process of

evaluating an employees performance of a job in terms of its requirements.

Purpose

Empowerment

Relationship

Flexibility Optimal Performance

Recognition and Rewards Morale

Objectives of Performance Appraisal

According to:
Employee concrete and tangible particulars about their work assessment of performance Organization measuring the efficiency maintaining organizational control.

Aims at:
Personal development work satisfaction involvement in the organization.

mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness

Process
Setting performance standards

Taking corrective standards

Communicating standards

Discussing results

Measuring standards

Comparing standards

Methods of Performance Appraisal

Traditional Methods
1. Paired comparison 2. Graphic Rating scales 3. Forced choice Description method 4. Forced Distribution Method 5. Checks lists 6. 7. 8. 9. Free essay method Critical Incidents Group Appraisal Field Review Method

Modern Methods
1. Assessment Center 2. Appraisal by Results or Management by Objectives

3. Human Asset
Accounting 4. Behaviorally Anchored Rating scales

10.Confidential Report 11.Ranking

Ranking employees by paired comparison Method

For the Trait Quality of work Person rated
As compared to A B C

For the Trait Creativity

Person rated
As compared to A A + B + C + +

+ +

+ +

++
--

+ +

+ -

+ -

Graphic or Linear Rating Scales

Attitude
0 5 10 15 20

No interest In work: consistent complainer

Careless: In-different Instructions

Interested in work: Accepts opinions & advice of others

10
Takes decisions promptly

Enthusiasti c about job & fellowworkers

Enthusiastic opinions & advice sought by others

Decisiveness
0
Slow to take decisions

5
Take decisions after careful consideration

15
Take decisions in consultation with others whose views he values

20
Take decisions without consultation

Forced choice method

Criteria 1.Regularity on the job Most Rating Least

Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular

Forced distribution method

No. of employees

10% 20%
poor

40%

20%

10%
Excellent

Below average good average Force distribution curve

Specimen of Staff Assessment Form [Descriptive Essay Type]

Staff Appraisal
Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1. Appraisal must cover the period of the preceding 12 months 2. Consideration to every function & responsibility of the job 3. An objective factual assessment of an employees improvement or deterioration Section II Promotability & Potential Promotability 1. Promotion now 2. Within 2 years 3. Within 5 years 4. Unlikely to qualify for promotion Section III Career Development Section IV Section V Notes on Interview with employee Comments on & Endorsement by Reviewing Authority

Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers A B C D

Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance

scale 5 4 3 2

Was happy to forced test

Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making subordinate ^ ^ ^ ^ ^ ^ ^ ^ peers superior customer ^

Technical skills
Motivation

^
^

^
^

^
^

Group appraisal method

MBO Process
Set organizational goals Defining performance target Performance review feedback

Performance Extremely good

Behavioral Anchored Rating Scales

Points Behavior 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.

Good Above average Average Below average Poor

6 5 4 3 2

Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers. Can expect to take extended coffee breaks & roam around purposelessly.

Extremely poor 1

360 degree performance appraisal

Examples of 360 degree performance appraisal method

These companies are using 360 Degree Performance Appraisal Method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH)

LEGAL AND ETHICAL PERSPECTIVES IN PERFORMANCE APPRAISAL Legal Perspectives in Performance Appraisal: It is important for a manager to realize that performance appraisal becomes a legal issue whenever it is used as the basis for an employment decision, including promotions, pay raises, selection for training programs, etc. Many laws exist to enforce the requirement that the evaluation of work behavior be based on objective, job-related criteria so that an individuals employment situation is not unjustly affected because of the managers stereotypes or biases.

Systems Model of Performance Appraisal showing the importance of legal consideration

Systems Model of Performance Appraisal

A Systems Perspective of Performance Appraisal

Identify Goals

Legal Consideration

Develop or Select Performance Appraisal Instrument

Train Mgrs to Reduce Rating Errors

Record Work Behaviors

Evaluate Employees

Conduct Interview

Evaluation of Performance Appraisal System

some of the Legal Aspects of the Performance Appraisal System

Performance appraisals should not be used in a merely punitive or retaliatory fashion. Appraisals should not be used to discriminate against employees on the basis of race, religion, age, gender, disability, marital status, pregnancy, or sexual preference. Performance appraisal results should be fair, accurate and supported by evidence and examples. An employee should have the opportunity to comment on their appraisal result, to express their agreement or otherwise, and to appeal the result or at least request a review by up line supervisors.

some of the Legal Aspects of the Performance Appraisal System

Appraisals should be balanced, recording information on both the good and the bad aspects of an employee's performance (as far as possible). Appraisals results should not be used as the sole basis for promotion, remuneration or termination decisions. A broad range of information should be considered, in which the employee's appraisal results may be significant but not necessarily conclusive. Employees who receive a poor performance appraisal result should be given a reasonable chance to improve. Timely feedback should be provided, especially to marginal or poor performers.

some of the Legal Aspects of the Performance Appraisal System

Records should be retained. If an appraisal result is poor (or in any way likely to be controversial or provocative), an objective third party should be hired for their views on whether the appraisal result seems fair and reasonable. Appraisals should avoid inflammatory and emotive language. The criticisms should relate to actual job. Managers and supervisors required to conduct staff appraisals should be trained in appraisal principles and techniques. Appraisal results should be treated as private and confidential information.

Ethical Perspective in Performance Appraisal System

Ethics should be the cornerstone of performance evaluation, and the overall objective of high ethical performance reviews should be to provide an honest assessment of the performance and mutually develop a plan to improve the ratees effectiveness. Many managers talk about ethics but do not recognize or act upon ethical issues in their day-to-day managerial responsibilities. So managers must realize that ethics is the process of deciding and acting.

Performance Coaching Process 1. Failure to prepare for the Interview 2. Failure to establish good Rapport 3. Failure to listen 4. Failure to withhold judgment until all the evidence is presented 5. Failure to remain objective.

Preparing for the Interview

A good performance appraisal starts long before you actually conduct the interview.
1. At the beginning of the appraisal period, establish the precise goals and standards you expect the employee to meet Communicate these standards in detail to the employee. Monitor the employee's performance throughout the period

2. 3.

4.
5.

Conduct a formal appraisal at the end of the period

Provide a clear, honest assessment of the employee's future in the company.

Setting Goals
Commit goals and standards to writing before the appraisal interview and you leave less room for future misunderstanding.
1. A summary of the department's goals 2. Specific goals and standards you expect the employee to meet 3. An appraisal report, marking the results of the completed appraisal. 4. A progress report, a quick historical reference sheet to be checked before the next appraisal interview.

Contd
The job description will tell you only what the employee should do 1. Examine the employee's present ability 2. Examine the performance of co-workers 3. Look at the employee's past performance 4. Look at the lob description 5. Determine the job's responsibilities

How To Avoid The 5 Common Mistakes That Could Be Fatal To A Positive, Productive Relationship With Your Staff

Mistake #1: Waiting For The Performance Appraisal To Give Feedback

Mistake #2: Overemphasizing Recent Performances Mistake #3: Being Too Positive Or Negative Mistake #4: Being Critical Without Being Constructive Mistake #5: Talking Not Listening

FAQs About Performance Appraisal Program

Q. What is the purpose of performance appraisals?

Q. How should the self appraisal be used?

Q. Is there any comprehensive formula to calculate the overall rating? Q. How should the ratings be given if there has been a change of supervisor or manager during the period of the appraisal? Q. How can input/feedback be collected for the appraisal process? Q. What if the employee refuses to agree or/and accept the review? Q. How do you deal with an average or a non-performer? Q. Should the review be confidential?

MANAGING WITHOUT PERFORMANCE APPRAISALS

According to Tom Coens and Mary Jenkins, (the authors of "Abolishing Performance Appraisals") while eighty percent of U.S. businesses use performance appraisals, ninety percent of them are dissatisfied with the process. Various researches have proved that performance appraisal is an effective means of neither motivating people nor improving their future performance. Performance appraisal is generally seen as a judgment of the management rather than feedback.

Contd
The "appraisals and review meetings", continuous accountability and check can cause emotional stress for the employees. Therefore, it is recommended to create such a work culture where
the employees are made responsible for their own performance and development the managers / superiors suggestions, inputs are encouraged and incorporated in the actions. 1. 2. Changing the pay pattern. Motivating people.

Appraisal as Employee Motivation Mechanism