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CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL

Contd..

TRADITIONAL METHODS

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

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6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

MODERN METHODS

ASSESSMENT CENTRES -

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 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.

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.

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BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

CRK

crk.mbahr@yahoo.com

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL

Contd...

360 DEGREE PERFORMANCE APPRAISAL

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.

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360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms.

Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.

360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.

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Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

Companies typically use a 360 feedback system in one of two ways:

1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective

When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.

2. 360 Feedback as a Performance Appraisal Tool to measure employee performance

Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors and competencies more than on basic skills, job requirements, and performance objectives. These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used.

360 Feedback Survey Measures..

- The behaviors and competencies

- 360 assessments provide feedback on how others perceive an employee

- 360 feedback addresses skills such as listening, planning, and goal-setting

- A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness

CRK

From India, Vijayawada
sara970@rediffmail.com
14

Dear Sir, Thanks a lot for your valuable & great contribution. Also i would like to know generally which method of performance appraisal is used the most in companies.
From India, Mumbai
CRK.MBAHR@yahoo.com
44

Dear Kavita, The concept of Performance appraisal will be posted in depth in following posts, where you may get your required information.... Keep in touch with this thread... Thankyou.... CRK
From India, Vijayawada
CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL

Contd...

COMPETENCY MODELS FOR 360 FEEDBACK SURVEYS

The first thing to decide is whether you want to work from an existing competency model or develop your own. Resist the temptation to re-invent the wheel. Many companies spend a great deal of time and effort creating a "unique" competency model for their 360 degree feedback program which ends up looking quite similar to our existing competency model.

If you will use 360 feedback surveys on a limited basis in your organization, consider using an existing competency model, perhaps with some minor adjustments to the evaluation form as needed.

For a company-wide 360 degree feedback program, you may want to spend some time developing a more unique competency model that incorporates your organization's leadership model and core values as well as the behaviors and performance standards that are expected of all employees.

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Establishing the Core of your 360 Competency Model

Some aspects of your competency model will be the same for all employees, regardless of function or level within the organization. Call this your "core". The core of your 360 survey will include the following:

Items related to company values, mission, and vision

Competencies and expectations that apply to all employees, from the CEO down to the individual contributor.

Many competencies or behavioral categories will apply to employees at all levels, but the specific behaviors in each area will often differ. For example, "Interpersonal Skills" are important for everybody, but the expectations and requirements related to "Interpersonal Skills" will be quite different at different levels in the organization.

Other competencies will only be relevant at certain levels. For example, "Building Talent" is an important area for mid-level management and above, but not at all relevant to non-managers.

Beyond the Core

It is less important to distinguish between functional area, especially for mid-level management and above. Focus on identifying 3 or 4 distinct vertical levels within your organization. For example:

1. Senior Leaders

2. Mid-upper Managers

3. Lower-level / First-line Managers

4. Individual Contributors (Non-managers)

For each of the 3-4 levels, the competency model will start with the "core", but also include the specific behaviors needed to succeed at each level.

Remember - don't reinvent the wheel. As you develop your competency models, reference our standard competency model as it will help you fill in the gaps as you create your own. The top-level categories will be based on statistical analyses and field experience. They are:

- Knowledge/Strategic

- Character

- Interpersonal

- Innovation/Change

- Building Talent

- Leadership/Motivation

- Execution

Different Competencies for People at Different Levels

If you are developing a 360 survey that will be used by people at different levels within your organization, the mix of categories and items will vary quite a lot across the various levels. It might help to think about the different levels in terms of the requirements for success in the following three areas:

Vision, Strategy, Inspiration

- Upper levels should include a lot of detail in this area.

- Middle levels should include some items in this area, but not too many. This is an opportunity to help people see what they will need to succeed at the next level, and also an opportunity for you to identify high potentials for promotions. Some degree of inspiring and motivating is relevant for anybody in a management role.

- Lower levels, especially individual contributors, should not include items in this area.

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Teambuilding and Relationship Building

Upper levels should include a lot in this area, but some of the things that are included for mid-level might be excluded here. You do not have to be as thorough with regard to basic skills. Instead, focus more on support and relationship building at a higher conceptual level, and creating strategic alliances with other parts of the organization.

Middle levels should include a lot of detail in this area with regard to people-skills, team management, and fostering team effectiveness.

Lower levels should include a reasonable amount here, but look for areas that don't include things that are only relevant for higher levels. Include things related to working with others, cooperating, listening, and supporting team efforts.

Task Management and Execution

Upper levels should include items that are more focused on achieving results - they would not have reached the upper level if they had not been successful at the basic skills when they were at a lower level.

Middle levels should include quite a lot here, but some of the most basic items could be excluded.

Lower levels should include a lot in this area, focusing on the basic, fundamental skills of task management and job performance.

When you are finished, you will have 3-4 competency models along with a list of survey categories and items for each one. By following these steps, you will have a vertically integrated approach that uses a common core across all levels, but that also maps out a progression from the bottom of the organization to the top.

Here is an example of how a specific category might apply across all levels of the organization, but vary in its nature, depending on level:

Teamwork

Upper Levels

Encourages cooperation and collaboration between business units

Establishes partnerships at all levels to achieve results

Middle Levels

Resolves conflicts among team members

Sets clear, achievable goals for all team members to follow

Lower Levels

Works effectively to achieve team goals

Cooperates effectively with team members

CRK

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL

Contd...

ARGUMENTS AGAINST 360 DEGREE APPRAISAL SYSTEM

Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals. The main arguments are:

360 performance rating system is not a validated or corroborated technique for Performance appraisal.

With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.

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It is often time consuming and difficult to analyze the information gathered.

The results can be manipulated by the employees towards their desired ratings with the help of the raters.

The 360 degree appraisal mechanism can have a adversely effect the motivation and the performance of the employees.

360 degree feedback – as a process requires commitment of top management and the HR, resources(time, financial resources etc), planned implementation and follow up.

360 degree feedback can be adversely affected by the customers perception of the organisation and their incomplete knowledge about the process and the clarity of the process.

Often, the process suffers because of the lack of knowledge on the part of the participants or the raters.

CRK

From India, Vijayawada
CRK.MBAHR@yahoo.com
44

PERFORMANCE APPRAISAL Contd... Find some collected important sheets attached, which might be useful... CRK
From India, Vijayawada
Attached Files (Download Requires Membership)
File Type: pdf Appraisal form.pdf (61.8 KB, 185 views)
File Type: pdf appraisalformtemplate.pdf (84.3 KB, 175 views)
File Type: pdf Exit Interview Questionnaire.pdf (76.6 KB, 131 views)
File Type: pdf Performance Appraisal Form for Manager.pdf (145.5 KB, 159 views)
File Type: pdf Performance Appraisal Form for Staff.pdf (147.7 KB, 154 views)

bhavu31085
1

My name is Bhavika I am MHRD graduate.I am searching for HR job In Surat If anyone know any job vacancy in hr in Surat let me know.I have 3.5 Year Exp experience in HR.Please help me.
Bhavika
9898321096

From India, Surat
vilasnavale65@gmail.com
Excellent..
I am Prof. Navale, just started taking Lectures in I.R & Lab. welfare. can anyone help me out to get the ppt's as a teaching tool for betterment.
pls do the favour. Thanks for posting such a detailed write up. In near future I will also try to post some articles relared to my subject.

From India, Mumbai
CRK.MBAHR@yahoo.com
44

Dear Bhavika,
Please don't make your posts in irrelevant threads.... Your request / post / expectations for positive responses may go waste as your post can't reach the relevant groups...
There are many threads and sections for job seekers in citehr... Do post your requirements there, to get your chances of response increase...
Hope you understand... and take it positive...:)
All the very best for your job hunt....
CRK

From India, Vijayawada
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