Professional Documents
Culture Documents
Project On Performance Appraisal 330
Project On Performance Appraisal 330
1
SCOPE OF THE PROJECT
This project report covers the definition and meaning of Performance Appraisal. It
elucidates the benefits and drawbacks of the traditional methods as well as recent
advances in the field of performance appraisal.
The project throws light on the concern areas for different people involved in the
appraisal process and attempts to find out ways to overcome those problems.
Appraisees and appraising managers have both been given guidelines in evaluation
process and subsequently the review meeting. It emphasizes how this approach will
help the appraisees by giving them an opportunity to assess and correct areas that
their supervisors feel may have overlooked. Such incidences do happen due to
personal likes and dislikes of superiors. The system can help management to take
informed decisions on pay-hikes and career enhancement for their employees.
Few formats of the performance appraisal forms have been included in the project to
show the way different companies are evaluating the performance of their
employees.
2
EXECUTIVE SUMMARY
Performance Appraisal is a crucial activity for organizations that are looking for growth and
profit maximization in this ever-increasing competitive environment. This project report is a
review based on theory as well as research and experience.
The research report starts with the background and explains it’s importance in the
Performance Management System and also it’s changed scenario in Chapter 1.
Performance appraisal system has gone through a sea change over a period of time. In the
beginning the process was non-transparent and the employee was kept in dark about his
performance. No systematic exercise was done and the entire process was arbitrary. These
earlier performance appraisal methods are discussed in Chapter 9.
The current processes of performance appraisal involve self-appraisal by the employee too.
Thus the system has gone through the phase of non-transparency to transparency. In
the transparent system of appraisals appraisee is taken into confidence and the whole
process is interactive. Review process with employees is designed in such a way that
employees become aware of what is expected from them, receive timely feedback and
recognition for their achievements. Some of these relatively transparent methods are
Appraisal Discussion-Dialogue Method of Appraisal, Competency Based Appraisal System,
Potential Appraisal, Performance and Development Planning. While new frontiers to
performance appraisal include Management by Objectives, 360º Feedback and Balanced
Scorecard. These methods are explained in depth in Chapters 10 and 11 respectively. In
this technology driven era appraisals too can be done electronically. eAppraisal system
with its salient features, benefits and process has been covered in Chapter 12.
Finally, the report is rounded up by presenting a case study on one of the top Indian
pharmaceutical companies as Chapter 13 and concluded in Chapter 14.
The report is made useful for readers by incorporating Suggestions and Recommendations
for all concerned on how to make a grand success of appraisal system followed by their
organizations.
Few blank formats of different appraisal methods and processes have been included as
Annexures (Annexure I to IX) in the report to show how today’s successful organizations
are trying to assess and evaluate their employee performance.
In conclusion, this project report will enable one to understand the concept of
Performance Appraisal; it’s evolution from non-transparent to a transparent system.
The report will also help to understand benefits and drawbacks of past and present
appraisal systems. Most importantly, the report will assist the reader in implementing
appraisal system as effective management tool for realizing organization’s as well as
individual’s goals and objectives.
3
RESEARCH METHODOLOGY
The study of the topic “Performance Appraisal” has been done through various
sources.
The primary source includes the personal experience, which has been added in this
project as the `Sample of Current Practice-Case Study’ in Chapter 13.
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Chapter 1
I. Background:
1. The concept of Performance Appraisal dates back to the First World War
and was then called “Merit Rating Programme”. Over a period of time, this
concept has been through an ocean of change. The areas of evaluation
have also changed.
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4. The parameters of performance are a combination of technical expertise
and behavioural attributes. The latter scores a high degree of relevance
with regard to potential appraisal.
The head of the key represents the uniqueness of the employee. No two
employees are alike.
The ring represents the management’s requirement -the job content.
The shaft represents the communication between the employee and the
company, the transmission of the task and the response from the
performer.
IV. Change:
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strengths as well as opportunities for improvement and skills
development.
What set’s the foundation of Performance Appraisal? The same has been
covered in the following Chapter 2.
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Chapter 2
Performance Appraisal assesses how well people have been doing their jobs and
what they must do to be better in their jobs. It deals with the content of the job and
what they are expected to achieve in each aspect of their work. Following are the
foundations in Performance Appraisal process:
I. Job Profile:
Job description concentrates more on the definition of tasks the jobholder has
to accomplish. It includes details of reporting relationship and normally covers
the overall purpose of the job. It indicates how an individual’s job will
contribute to the achievement of objectives of a team or a department and,
ultimately the mission of the organization.
II. Objectives:
An objective describes something, which has to be accomplished. Objectives
define what organizations, functions, departments, teams and individuals are
expected to achieve.
III. Competencies:
Competencies refer to the behavioral dimensions of a role. It is the behavior
required of people to carry out their work satisfactorily. Competencies are
what people bring to a job in the form of different types and levels of behavior.
They govern the process aspects of job performance.
IV. Values:
Increasingly, organizations are setting out the core values that they think
should govern the behavior of all their employees. Value statements may be
prepared which define core values in areas such as care for customers,
concern for people, competitiveness, excellence, growth, innovation.
What are the essential steps that set the foundation for an effective
Performance Appraisal? These steps have been covered in Chapter 3.
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Chapter 3
The process of getting to know the people who work for the organization involves
three essential steps viz. training, evaluation and review.
I. Training:
Successful training is the implementation of a system in which everyone in
the workplace is geared towards improvement. It involves a hands on
approach in which the employee is encouraged to evaluate himself or herself
under the guidance of the appraiser.
How it works?
First, the appraiser includes the employee in the appraisal process. When an
employee knows that his or her opinion of other workers is taken into account,
he or she also realizes that everyone else’s opinion matters just as much. This
not only empowers the employee and improves relations in the workplace, but
it encourages higher productivity as well. This interactive approach is made
complete with the leadership of the appraiser. Carefully administering praise
coupled with constructive criticism keeps the workforce on its toes.
II. Evaluation:
The best methods for employee evaluation are based on results and
behavior. While conducting performance appraisal based on employees’
characteristic traits is quite common, the results are often subjective and
unsatisfactory. A results-based approach to performance appraisal is by far the
cleanest, most objective method of tackling the complex task of evaluation. It
uses a rating system to measure productivity within a given timescale. If an
employee makes a certain number of sales in a certain week, he or she can
be rated by sheer worth as well as ranked against other employees. The study
of behavior is closely tied to productivity. The pace of work, willingness to put
in overtime and ability to work with others all contribute to overall productivity.
III. Review:
The review process should, again, employ the techniques of interactivity.
Before sitting down together, the appraiser should give the employee a chance
to review himself or herself. This not only empowers the employee, but also
saves a lot of time and possible contention during the actual discussion.
Initially the appraiser should walk the employee through the process. The
successful supervisor starts out with an overview of why the review session is
needed. Then the supervisor takes the employee down a point-by-point list of
every aspect of the job. In each case, the employee should be given a chance
to describe his or her achievements and shortcomings. The supervisor should
always supplement this with added insight. While praising and applying
criticism, the supervisor maintains authority throughout the review and indeed,
the entire appraisal process.
How this entire interaction and review process is beneficial to the organization as a
whole and what are the objectives of performance appraisal? These have been
jotted down in the succeeding Chapter 4.
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Chapter 4
I. Objectives:
Data relating to Performance Appraisal of employees are recorded, stored and
used for several purposes like:
Let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for
the purpose of their development.
Assessment of skills within an organization.
Set targets for future performance.
Effect promotions based on competence and performance.
Strengthen relationship between superior and subordinate.
Assess the training and development needs of employees.
Identify the strengths and weaknesses of employees.
Decide upon a pay raise (increments).
Improve communication as it not only provides a system for dialogue
between the superior and the subordinate, but also improves
understanding of personal goals and concerns. This can also have the
effect of increasing the trust between the appraiser and appraisee.
Determine whether human resource programs such, as selection, training
and transfers have been effective or not.
II. Benefits:
The following are the benefits of a successful appraisal system:
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♦ Communication to people that they are valued.
2. For the appraiser:
♦ Opportunity to develop an overview of individual jobs.
♦ Opportunity to identify strengths and weaknesses of appraisees.
♦ Increased job satisfaction.
♦ Opportunity to link team and individual objectives with department &
organizational objectives.
♦ Opportunity to clarify expectations that the manager has from teams
and individuals.
♦ Opportunity to re-prioritize targets
♦ Means of forming a more productive relationship with staff based on
mutual trust and understanding.
♦ Due to all above Increased sense of personal value
In line with the objectives of Performance Appraisal, to reap it’s benefits, this system
has to be effective failing which it may mar the very purpose of performance
appraisal.
How to make the appraisal process effective is what has been covered in the
subsequent Chapter.
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Chapter 5
When it comes to performance appraisal, managers and employees agree about one
thing: They hate going through them. Employees, managers and HR experts agree
that fear, guilt, responsibility and resentment are the real reasons why most
employees dread the appraisal process. Besides some think that it is a ritual that is
mandatory to follow.
I. Good appraisals start with information from multiple sources, and they
evaluate employees at all levels from top to bottom.
II. This system requires both the appraisee and appraiser to jointly assess the
employee’s ability to complete the duties and achieve the goals set forth in the
previous appraisal.
III. HR professionals should consider the following steps and make the appraisal
process simple yet effective:
The performance Appraisal form should reflect the strategic objectives of
the company. Many organizations use a form that contains several
sections.
The results and impact section should address accomplishments related
to job responsibilities, goals and projects. It is a review of past
performance.
A skills and abilities section should discuss the ways those results were
accomplished. By listing the core competencies for each job classification
– and for the entire organization – this section can address the kinds of
behavior that are critical for success.
IV. Appraisal results, either directly or indirectly, determine reward outcomes. The
better performing employees may get the majority of available merit pay
increases, bonuses and promotions, while the poorer performers may require
some form of counseling or in extreme cases no increases in pay. The
assignment and justification of rewards and penalties through performance
appraisal is a very uncertain and controversial matter and conveys both
satisfaction as well as dissatisfaction with an employee’s job performance.
Whatever is the case, organizations should foster a feeling that performance
appraisals are positive opportunities that provide for overall development of
the employee, in order to get the best out of the people and the process.
Hence performance appraisals should be positive experiences and it
should never be used to handle matters of discipline.
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Performance review needs goals to be set first. Identification of Key Result
Areas i.e. Goal Setting has been explained in the Chapter 6.
13
Chapter 6
Setting of Key Result Areas i.e. goals is one of the various parameters of
performance evaluation. These are also known as the Targets or Performance
Indicators (PI). Target setting is the first step in the appraisal process, based on
which the employee is appraised.
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SMART Performance
Criteria Checklist
Goals
Achievable
A realistic expectation, given ∙ Are resources, authority level, and requisite
time and resources skills in place?
∙ Does it require a stretch of effort?
Realistic
There is a clear tie to goals ∙ Will it matter when it is done?
of the department, division ∙ Does the objective support relevant goals?
etc. ∙ Does it deal with a key aspect of the job?
Time Bound
There is a time limit or ∙ When are the goals to be completed?
deadline by which the ∙ Is there a timetable for milestones or
objective must be achieved checkpoints?
and there may be a time
frame to track phases of
completion in an action plan.
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3. The Minimum or Standard goal:
The minimum or standard goal is the cut-off point for signaling the existence
of or potential for a performance problem. Like short-term goals, minimum
standards are set for a limited period but for longer duration – perhaps one
to two years. Minimums/standards are negotiated like short-term goals and
must conform to the following criteria:
∙ They must be less than or equal to current average/typical performance;
and
∙ They cannot be worse than the worst performance for any previous
period.
2. Joint Accountability:
Management must recognize that most results are achieved through the
corporate efforts of two or more people. Therefore, the management style
must encourage maximum individual contribution in co-operation with
others.
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Decision on pay hike, promotion and development is outcome of target
achievement and the same has been detailed in following
Chapter 7.
17
Chapter 7
The outcome of the appraisal is either in the form of reward by way of increase in
pay, additional bonus or incentive and/or promotion, or by way of not effecting any
increase in pay, denying promotion etc. This gives emergence to the concept of
Performance Related Pay (PRP).
4. Flexibility:
PRP arrangements should allow for some flexibility in the criteria for
reward and the method of payment.
5. Teamwork:
Poor PRP schemes can produce a lot of single-minded individuals. The
importance of teamwork should be recognized in structuring the scheme
and in defining critical success factors and performance indicators.
Individuals should be aware that achieving their targets at the expense of
others is not considered competent performance.
6. Avoiding Short-termism:
To avoid the danger of PRP focusing attention on short-term results at the
expense of more important longer-term objectives, long-term as well as
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short-term goals should be set wherever appropriate and short-term
objectives should be discussed in their overall context.
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7. Involvement in the design process:
The design of PRP schemes is usually an iterative process- trying and
testing ideas on measures and structure with those who will eventually be
involved in the scheme. It is also a valuable learning process, which can
throw up fundamental strategic and business issues. Those due to
participate in the scheme should have an input into agreeing critical
success factors and performance indicators both for themselves and the
organization.
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e. Design scheme
What criteria should be used for determining PRP awards? It
can be an appropriate mix of:
Input criteria related to the skills and knowledge brought to
bear on fulfilling role responsibilities
Process criteria related to the behavioral competencies used
successfully in achieving results
Output performance indicators related to the achievement of
objectives and meeting performance requirements as set out
in statements of principal accountabilities or main tasks
Outcome contribution indicators which measure how outputs
contribute to the achievement of team, departmental and
organizational objectives and how the behavior of individuals
support corporate values
To what extent will it be possible to define the criteria in the key
jobs for which PRP will operate?
Are performance measures available for these criteria, which
will enable fair and consistent assessment to be made?
What form of rating system should be used?
How are we going to ensure that ratings are fair and consistent?
What are our policies be on the size of payments in relation to
performance, contribution, skill and competence?
What should our policies to be on the rate of progression and
any limits to progression within pay ranges?
Does the organization want to make provision for performance-
related lump sum bonuses for special achievement or sustained
high-level performance at the top of a range?
Should PRP reviews be separated in time from performance
reviews conducted as part of the Performance Management
process?
What rating, pay increase and budget guidelines are going to be
issued to managers implementing PRP in their departments?
Should performance matrices be used? If so, how should they
be constructed?
How PRP will be monitored and its effectiveness be evaluated?
How the cost of PRP would be controlled?
What is the program for developing and introducing PRP?
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g. Implement
How the process should be started? Even after due care some
unforeseeable problem will arise. It is often advisable to start
with a pilot scheme, probably at management level so that they
understand the principles, benefits and problem before applying
PRP to the people for whom they are responsible.
How to monitor the introductory stages? It is essential to keep
closely in touch with how things are going so that problems can
be anticipated or dealt with swiftly when they arise.
h. Evaluate
Have clear objectives been established for the scheme the
progress towards which can be measured and evaluated?
How to carry out a continuing monitoring and evaluation
process?
Who is responsible for evaluation and taking any corrective
action that may be required?
What points should be covered?
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11. Performance Related Pay (PRP) – a judgment?
Does Performance Related Pay work? Most experience in the United
States is that greater use of performance pay results in improved
organizational performance as measured by return on capital employed,
particularly when applied to managerial pay. In the United Kingdom, the
few studies have been largely negative or inconclusive.
Finally, all research has confirmed that employees regard positively the
concept of PRP but deny quite strongly that it acts as a motivator for them
in practice, and are mostly critical of the resulting procedural and
distributive justice. It can be concluded that employees may work harder,
in a more focused way and get better results through a PRP system which
is under printed by a robust performance management scheme but
employees may do this through a mixture of necessity and fear, rather
than a genuine desire to do so.
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THE COUNSELING PROCESS
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Of the three approaches discussed above, the problem solving approach is the
best approach. The below comparison justifies how:
The Tell and Sell The Tell and The Problem Solving Approach
Approach Listen Approach
Requires Requires skills on Encourages appraisee to review his
considerable skill to
the part of own performance and identify
get people to accept
appraiser in problem areas thus motivating
criticism listening appraisee
Is more of a one- Better than the Appraiser does not impose his
way communication `tell and sell decision but discusses problems
process, indicating
approach’ since it with appraisee
authoritarianism involves
appraisee
Such approach may Appraiser does This also requires skills but is the
not motivate the not play a very most effective method of counseling
appraisee or even active role where both appraiser and appraisee
may turn counter- enjoy confidence of each other and
productive work together in the direction of
finding out solutions.
IV. Counseling is an art and requires skills, which are difficult to acquire in the
normal course of work. It is, therefore, suggested that appraisers should be
provided with special training by experts in counseling skills.
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V. Follow-up of completed appraisal:
Post appraisal is very crucial for helping employee and the immediate superior
i.e. appraiser playing the role of a Facilitator and Developer.
Enough time (say one week) should be given for the appraisee as well as
appraiser to prepare for Post-Appraisal discussion.
This discussion should be devoted uninterrupted and sufficient time, say an
hour or so.
Appraisee should be put at ease and allowed to first speak on his
performance.
The appraiser should listen attentively without interruption with patience.
Appraiser should be supportive and objective on performance evaluation of
the employee.
Appraiser should discuss the training and development needs with the
appraisee.
Finally, the meeting should conclude wherein the appraisee leaves with a
feeling of empowerment.
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Chapter 8
Before understanding the process of appraisal, the following terms are revised:
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3. What should be evaluated?
One of the steps in designing an appraisal program is to determine the
evaluation criteria. It is obvious that the criteria should be related to the job.
The criteria for assessing performance can be:
a. Quality & Quantity
b. Timeliness
c. Cost Effectiveness
d. Need for supervision
e. Interpersonal impact
f. Innovation & Creativity
g. Problem Analysis
h. Customer orientation
i. Market Orientation
j. Entrepreneurial Drive
k. Negotiation skills etc.
This is not an exhaustive list, but several other parameters too can be added
depending on job requirements and organizational needs.
4. When to appraise/rate?
The most frequent rating schedules are semi-annual and annual. New
employees are rated more frequently than older ones. Some practices call for
ratings:
∙ Annually as per company practice
∙ After first 6 months of employment
∙ Upon promotion or within 3 months after promotion
∙ When the job occupied has been reevaluated upward
∙ Upon special request, as when the employee’s salary is below the
average pay
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ii. Hostility from the appraisee:
Hostility from the people at the receiving end arises because they
feel Performance Appraisal is simply another method in the hands of
the managers to exercise their command and control prerogatives.
They feel that the data collected will be utilized as evidence against
them. In some cases appraisees even have a feeling that the
outcome of the performance evaluation is predetermined by the
management or their superiors and the process is completed only as
a formality, due to which appraisees lack interest in the entire
appraisal process.
b. Halo Error:
Under this type of error, one marked characteristic or latest achievement
or failure of the appraisee (either favourable or unfavourable) may be
allowed to dominate the appraisal for the entire year.
c. Logical Error:
This is a dangerous pitfall for the inexperienced appraiser. He is very
often inclined to arrive at similar assessments in respect of qualities that
seem logically related.
d. Constant Error:
When two appraisers rate an appraisee their ratings may be different.
One may show consistent leniency by giving him high scores, the other my
consistently rate him by giving low scores.
e. Central Tendency:
It is also called as “Average Ratings”. Here, the appraiser tends to avoid
giving frank views to the question asked or the appraiser is in doubt or he
has inadequate information or he simply wants to play safe and don’t
displease anyone.
f. Mirror-Image Error or Projection Error:
This error arises when an appraiser expects his own qualities, skills, and
values in an appraisee. The appraiser may falsely believe that if the
appraisee is good he has to be like him (appraiser) because the appraiser
considers himself as the standard.
g. Contrast Error:
This error occurs in the sequencing of ratings. If superior performers are
rated first, average performers are rated down, if poorer performers come
first, the average performers will be rated more highly.
h. Biases of position, Sex, Race, Religion & Nationality:
There is a tendency to rate the occupant at a higher position more
favorably than the person in a lower position. Similarly rating can be
biased based on sex, religion and nationality too.
i. Lack of Skill in conducting Appraisal discussion:
Conducting Performance Appraisal discussions require certain skills and
training.
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6. How to solve the appraiser’s problems?
The best way to overcome the problem is to give training to the appraiser.
Training can help improve the appraisal system to the extent that distortion
occurring due to appraiser errors such as halo, leniency, central tendency and
bias are minimized.
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Chapter 9
1. Ranking
In this, the superior ranks his/her subordinates in order of their merit, from best
to worst.
- It is done in a competitive group.
- It is done by placing the appraisee on numerical scales i.e. 1 st, 2nd, 3rd etc.
in the total group.
- Ranking of an appraisee on his job performance/traits against that of
another member.
2. Person-to-Person/Paired Comparison
Under this method the appraiser compares each employee with every other
employee, one at a time.
- Certain key performance areas/traits are developed. E.g.: Leadership,
Creativity, Initiative etc.
- A scale for each factor is designed.
- A scale of people is also created for each factor.
- Each Appraisee is compared to every other person on the scale.
- Certain scores for each factor are awarded to the appraisee.
3. Grading
- Certain categories of traits/performance criteria, which are worth of
appraising, are established. E.g. cooperativeness, self-expression,
dependability, job knowledge etc.
- The actual performance (Key performance area) of an employee is then
compared to the predetermined grade definitions.
- Appraisee is allotted with the grade, which describes his performance in
the best possible manner.
- Any grade that is selected should be well defined.
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4. Graphic Scales
- A printed form, one for each person to be rated is used.
- The factors included in the form are Employee characteristics such as
leadership, cooperativeness, enthusiasm, loyalty etc. or Employee
contribution which includes quantity and quality of work, specific goals
achieved, regularity of attendance, responsibility assumed etc.
- The traits can be evaluated on continuous scale – the appraiser places a
mark along a continuum (range).
- The best method to use is the “multiple” type of scale wherein one has to
“tick off” the box, which suits the description of an appraisee’s
performance.
- Certain types of graphs are prepared based on these derived ratings.
5. Checklist
- A series of questions are presented concerning an appraisee’s behavior.
- The appraiser has to reply to the questions in either negative or positive
tone- (Yes/No).
- The value of each question may be weighted i.e. one can have
predetermined scale and scoring to those questions.
6. Essay
- A blank form is given to the appraiser.
- The form contains main heading such as employees’ characteristics,
attitudes, job knowledge, potential etc.
- The appraiser is asked to put in words his impressions about the
employee.
- It contains factual and concrete knowledge.
- It gives specific information about the employee.
7. Confidential Reporting
- It is the most traditional way of appraising employee’s performance. The
basic assumption here is that since the superior is in direct contact he
knows his subordinates better than any other and hence his appraisal
would be more appropriate.
- The superior writes a paragraph or so about his subordinate’s strengths,
weaknesses, intelligence, attitude to work, attendance, conduct and
character, work efficiency, etc.
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- This method helps in identifying the key areas where the employees are weak
or strong.
- It emphasizes rating on objective evidence and helps in counseling.
The above methods are non-transparent in nature, as the appraisee or the employee
is not involved in the process of his appraisal. The rating is done entirely by his
superiors.
The other methods wherein employee is appraised not only by his superiors
but also by the appraisee himself, and in some cases with involvement of third
parties are newer methods and detailed in Chapters 10 and 11.
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Chapter 10
As time has progressed, there have been advancements in the appraisal system. As
against the earlier traditional methods, the newer methods include self-appraisal by
the appraisee. After having discussed the appraisal with the appraisee, the appraiser
forwards his recommendation to the management for further decision on reward
giving.
2. The appraisal discussion provides the means through which the five key
elements of Performance Appraisal can be achieved. These are:
a. Measurement: It assesses results against agreed targets and
standards.
b. Feedback: It gives the appraisee information on how he or she has
been doing.
c. Positive reinforcement: It emphasizes what has been done so that it
will be done even better in the future. A constructive criticism is done
i.e. points that help in improving performance are given.
d. Exchange of views: It ensures that the discussion involves a full, free
and frank exchange of views about what has been achieved, what
needs to be done to achieve more, what appraisees think about their
work, the way they are guided and managed and their aspirations.
e. Agreement: Both parties jointly arrive at an understanding about what
has to be done in order to improve performance and overcome any
work problems raised during the discussion.
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c. Continue by explaining that the aim is to come to an agreement on
what has been achieved since the last meeting and what is to be
achieved in the future.
d. This should be followed by a brief exchange in which each party
itemizes the key points they want to discuss – setting the agenda.
e. The discussion can then begin, probably with an invitation from the
appraiser to the appraisee to talk generally about the progress he or
she has been making during the year with reference to notes made
prior to the meeting or a completed preparation form.
4. General Guidelines
There are a number of general guidelines on how the appraisal discussion
may be conducted. Each of them should be applied according to the
circumstances in which the discussion is taking place and the personalities
of those involved – there is no one right way to conduct an appraisal
discussion.
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A typical appraisal discussion contains a mix of open, probing and closed
questions. While the conversation should be kept going with open
questions, one needs to identify the real issues with probing questions and
get the facts with closed questions. Leading questions should be avoided.
6. Listen carefully
An appraisal discussion is a dialogue. Both parties are communicating
information and ideas to one another to achieve the purpose of the
meeting.
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II. COMPETENCY BASED APPRAISAL SYSTEM
What is Competency?
Competency is an underlying characteristic of an individual, which is casually
related to effective or superior performance.
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3. Advantages of competence based Appraisal System
∙ High-performance organizations need high levels of competence and
hence employees should be appraised according to their level of
competence and the contribution they therefore make to the success of
the business.
∙ Performance-linked appraisals help companies in performance
enhancement of employees. Hence competence is important.
∙ Competences add value and predict success and hence attributes that
lead to successful performance should be appraised.
∙ It can provide for the alignment of rewards with core values.
∙ It can support a culture devoted to learning, growth and continuous
development.
∙ It can deliver messages to people about the behaviour expected of
them in such aspects of work as team membership, flexibility,
continuous improvement, customer relations.
∙ It can focus attention on the competences required in knowledge-based
organizations which are selling services or solutions, not products, and
are therefore people rather than task or product oriented.
∙ Competences are geared to sustained performance and are better
predictors of future performance than what people happen to have
done in the past.
∙ It is recognized that it is necessary to assess and reward what people
bring to a role in the shape of their knowledge, skills, attributes and
competences as well as the results they achieve.
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III. POTENTIAL APPRAISAL
1. Features:
The use of situational exercise (such as in-basket exercise, business
game, a role-playing incident and leaderless group discussion);
Evaluators are drawn from experienced managers with proven ability at
different levels of management;
They evaluate all employees, both individually and collectively.
A summary report is prepared by the members, and a feedback on a
face-to-face basis is administered to all the candidates who ask for it.
2. Purpose:
a. It is used to:
Measure potential for first level supervision, sales and upper
management positions; and also for higher levels of management
for development purposes.
Determine individual training and development needs of
employees.
Select freshers for entry-level positions.
Provide more accurate human resource planning information.
Assist in implementing affirmative action goals.
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3. Problems:
The ratings are generally influenced by the participant’s interpersonal
skills; judges tend to evaluate the quality of the individual’s social skills
rather than quality of the decisions themselves. Further, the organizing
and decision-making abilities are measured by in-basket exercises,
verbal ability and personal traits.
Solid performers in day-to-day operations suddenly choke in simulated
environment.
Unreasonably high cost of assessing an individual in a particular job
level.
There are potential bad effects on those not selected to participate in
the exercise.
Usually immediate supervisors nominate participants. Employees who
are curious, independent, aggressive and intelligent may never be
selected because such traits, though important at higher levels, are not
accepted by lower level supervisors.
Poorly rated appraisee may react in negative ways and might get
demoralized.
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IV. PERFORMANCE AND DEVELOPMENT PLANNING
2. PDP Process:
The PDP process has been explained with the help of a chart as
Annexure I. A sample format of PDP form is attached as Annexure II and
the PDP form overview is explained in brief as Annexure II (a). All these
Annexures have been included at the end of the report.
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As part of a relatively transparent method of appraisal, a sample form designed and
used by a reputed pharmaceutical company for appraising it’s employees at junior
management level is shown as Annexure III at the end of this report.
The latest trend of appraising the performance of an employee involves two or more
of any of the above detailed techniques including traditional methods.
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Chapter 11
In recent years the system of performance appraisal is becoming more and more
transparent wherein the employee, who is being appraised, is involved in the
process. The objectives or targets are set with mutual understanding between the
appraisee and his immediate superior. The feedback regarding his performance is
given to the appraisee with areas of improvement by disclosing his strengths and
weakness and the opportunities available. I will take you into details of these new
frontiers to Performance Appraisal viz:
I. MANAGEMENT BY OBJECTIVES
1. Management by Objectives is basically a process whereby the superior
and the subordinate managers of an enterprise jointly identify its common
goals, define each individual’s major areas of responsibility in terms of the
results expected of him and use these measures as guides for operating
the unit and assessing the contribution of each of its members.
Management by Objectives is primarily to change the behaviour and
attitude towards getting an activity or assignment completed in a manner
that it is beneficial for the organization. Management by objectives is a
result-oriented process, wherein emphasis is on results and goals rather
than a prescribed method. A number of companies have had significant
success in broadening individual responsibility and involvement in work
planning at the lowest organizational levels.
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3. Management by Objectives is a five-sutra process having following basic
steps:
i. Set Organizational Goals:
This envisages that organizational goals and business strategies are
expressed clearly, concisely and accurately. They are periodically
reviewed. They should be challenging enough to motivate the
employee. Clear and attainable goals help channel energies towards
desired behaviour and let the employee know the basis on which he
will be rewarded. At this time, any appropriate changes in the
organization structure should be made: changes in titles, duties,
relationships, authority, responsibility, span of control and so forth.
v. Feedback:
The employees who receive frequent feedback about their performance
are highly motivated than those who do not. However, one has to
ensure that the feedback is relevant and specific. This helps the
employee and the manager understand where they stand.
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The five-sutra process of management by objectives ensures that the
manager and the employee define and establish goals and objectives for
an employee to be achieved within a prescribed period of time. The
employee is to be supervised and evaluated, periodically. To this extent, a
frequent feedback and superior-employee interaction model must be
evolved.
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i. Helps the individual manager to develop personal leadership,
especially the skills of listening, planning, counseling, motivating
and evaluating. This approach to managing instills a personal
commitment to respond positively the organization’s major concerns as
well as to the development of human assets. Such a manager has a far
greater chance to move ahead within the management hierarchy.
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II. 360 FEEDBACK
With the movement in the eighties to find new strengths and productivity
through employee empowerment came the idea of performance appraisals from
subordinates, their superiors, their peers and themselves – “360º feedback.”
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4. Benefits to Key Stakeholders
The 360º Feedback process offers extensive and diverse benefits to key
stakeholders in the organization – and the organization too:
a. Customers: The process gives customers a chance to strengthen the
customer-supplier relationship. The 360º Feedback captures the
relevant and motivating information from internal and external
customers while giving them a voice in the assessment process.
b. Employees: By participating in a process that has tremendous impact
on their careers, employees may help select what evaluation criteria
will be used to judge their performance and who will provide feedback.
Participation plays a critical role for employees as they determine the
fairness of the process.
c. Team members: The only option for identifying team and individual
members’ effectiveness is 360º Feedback. Failing feedback from
multiple sources, team members lack the information necessary for
effective individual development and teamwork. With no team
evaluation, accountability may evaporate, and performance may falter
(weaken).
d. Supervisors: This process expands supervisors’ insight regarding the
performance of each direct report by providing them more
comprehensive and detailed performance information than they usually
have access to. Also, the process typically reduces by half, or more,
the supervisor’s time spent on evaluating individual employees.
e. Leaders and Managers: The process provides leaders and managers
an opportunity to tap information from the organization that may
otherwise not be shared with them for fear of reprisal.
f. Organizations: Organizations can gain access to credible,
quantitative information to understand organizational strengths and
weaknesses, leadership gaps, and training needs more fully. This
information is much more useful than relying on intuitive judgment or
responding to those who are making the most noise.
5. Why are Organizations adopting these systems?
Structure and cultural factors and employee’s relations have motivated
organizations to begin experimenting with 360º Feedback systems. For
example, as organizations remove layers of management, flatten their
structure, and begin using self-directed teams, the only practical option for
performance feedback is from multiple sources. As organizations change
their culture to align with their vision and values, 360º Feedback becomes an
ideal choice to communicate the new competencies required by the new
values.
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6. Structure changes
Organizational structures have changed substantially since the mid-1980s.
The 360º Feedback process offers support for these structural changes,
such as growth in supervisor’s span of control, the increased use of
technical or knowledge workers, and introduction of matrix and project
management organization design, and the move to working in teams.
a. Increased span of control: A typical manager used to supervise
three to nine employees. Today production and service companies
have moved from traditional span of control to one supervisor for as
many as seventy or more direct reports. Classic supervisors with a
large number of reporting relationships lack the opportunity to observe
many individual performance actions.
b. Knowledge workers: A supervisor may not have enough technical or
expert knowledge to provide credible performance feedback on
employees in positions requiring highly specialized knowledge, like MIS
managers or scientists. Many organizations have adopted a multi-
source system to provide accurate assessments by coworkers with
similar expertise.
c. Matrix and Project Management: Many organizations have adopted
360º Feedback systems because their employees work in matrix or
project management situations, with employees often reporting to more
than one supervisor during a project.
Matrix organization structures occur as a result of the need to deploy
human assets at high velocity. People move quickly from project to
project and may only occasionally interact directly with their supervisor.
Project management designs require information from multiple sources
because no one person has sufficient information to provide a complete
performance picture of the individual.
d. Team: When the organizational structure has moved from classic
supervisory designs to work teams, with leadership dispersed
throughout the team, team members offer highly credible performance
feedback.
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c. Customer Services: The improved communication through 360º
Feedback can translate to better customer service.
d. Quality Focus: The 360º Feedback systems provide the best
measures for competencies. This logical application for individual
performance measurement meshes with the organization’s quality
philosophy.
e. Reengineering: Reengineering or the reinvention of work processes
often requires new methods to obtain accurate performance measures.
Reengineering actions focus on redesigning the way employees work
in order to improve individual, team, and organizational productivity.
Since 360º Feedback systems improve the quality of information, these
systems logically support the reengineering effort at organizations.
f. Competency-Based Reward: Information from multiple sources offers
the best method for measuring competencies. Traditional, single-
source measures are deficient at assessing competencies because
supervisors seldom have sufficient opportunity to observe each
employee’s full range of work behaviours.
g. Team-Based Rewards: 360º Feedback systems are the most
appropriate ways to evaluate individual performance and contribution.
Team assessment provides these organizations with a credible
information source for recognition and rewards.
h. End of Entitlements: Multi-source performance measures more
clearly distinguish among levels of performance than do single-source
measures. Multi-source assessments are substantially better at
distinguishing high, medium, and low performers, enabling appropriate
recognition and rewards and an end to automatic entitlements.
8. Employee Relations
No other information has more impact on an employee’s career than
information on his or her performance. Hence, the accuracy, fairness and
usefulness of performance measures are critical factors to employees.
a. Career Development: The 360º Feedback process yields specific and
quantitative information for each employee to use in making intelligent
career decisions.
b. Fair Reward Decisions: Managers and employees want pay and
promotion decisions to be fair. Research across large sets of
employee groups indicates that users perceive 360º Feedback to be
fairer than single-rate processes.
c. Accurate Performance Measures: Assessment by multiple coworkers
is more reliable and objective than information gained from a single
person because they have the best opportunity to observe work
behaviours.
d. Valid Performance Measures: Assessment information when provided
by the individual’s work associates; the employee tends to perceive the
results as having for more credibility as against a single-source
assessment.
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e. Non-performance: Supervisors must document, justify and confront
non-performance. 360º Feedback systems helps in identifying non-
performers or poor-performers as co-workers and team members are
rarely reluctant to identify them if they are not sufficiently contributing to
the team’s efforts and try to push them if they need help.
f. Diversity Management: Multi-source performance measures
moderate adverse discrimination against older employees, presumably
recognizing the great experience level; are generally neutral to women
as against single-source assessment which are often biased.
g. Legal Protection: Multi-source assessments offer stronger legal
protection, resembling the jury system because the model combines
multiple perspectives.
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While this approach has its merits, its major deficiency is that a few
individuals are changed, the overwhelming mass of management is
not, and the systems and processes that encourage old behaviors are
still in place.
b. The second approach is to bring such a program "in-house", where
many managers receive 360º feedback. In this approach, the feedback
can be more systematic for two reasons: i) surveys are handed out to
all subordinates and peers rather than those who have been
"volunteered" by the person receiving feedback. This tends to reduce
"sampling bias" of just giving it to those who might give just good
feedback; and ii) the implementation of this process can be from the
top of the organization down the bottom. This has the advantage of
allowing upper management to be an example of willingly receiving
such feedback and encourage them to be both models of behavior and
coaches to those underneath them.
c. The third approach involves all of the second approach, and also deals
with "systems issues." Where 360º feedback alone can only deal with
problems caused by individual behavior, it by itself does nothing for the
systemic causes of problems, such as organizational structure,
inappropriate and distorted measurement systems, company-wide lack
of skills, or performance appraisal and pay problems. 360º Feedback
can serve both as a catalyst to help management realize the systemic
causes of organizational problems, and can be part of the solution, so
that management style becomes in harmony with other organizational
changes senior management is trying to make.
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d. Is this voluntary or mandatory? Will some employees be offered the
"opportunity" to receive this feedback, will everyone receive it, or will
just management receive the feedback?
e. What methods and measurements will be used? Will employees
just fill out numerical surveys, or will this information be supplemented
with observations and interviews? Will the report be just a graph, a
summary of high need for change survey items, or will there be a
written report with recommendations? To what extent will this report be
personalized and handcrafted Vs being automated?
f. To what extent will the data be collected anonymously and/or
confidentially? While the intent may be to keep the survey data
anonymous, if written comments or interview data are also included,
the data may have to be altered to avoid making obvious conclusions
about who communicated what. In addition, management must answer
questions about personal, confidential data that might be accidentally
revealed during interviews.
g. To what extent will the data be collected anonymously and/or
confidentially? While the intent may be to keep the survey data
anonymous, if written comments or interview data are also included,
the data may have to be altered to avoid making obvious conclusions
about who communicated what. In addition, management must answer
questions about personal, confidential data that might be accidentally
revealed during interviews.
h. What will be done with alleged violations of laws, ethics or
policies? Though this may not be the intent of 360º feedback, on
occasion information is gathered that suggests violations of legal,
ethical and company codes of conduct.
i. What information will be public? At first blush, you might think that
all data will be private, but does that mean that one's own supervisor
can't see the data and the report? Will group and company averages
be made public without them being broken down into individual scores?
j. What consequences will there be? Will they receive additional
coaching and counseling, training, or be terminated or re-assigned?
Will the 360º feedback be the sole determiner of this decision?
k. What logistics and support will be necessary to make this
successful? To what extent will the data be collected electronically (via
the Web or intranet) or on paper? What administrative and technical
support will be necessary?
l. What systems changes will accompany this organizational change? As
stated before providing feedback on management style in and of itself can
only be part of organizational change and can rarely stand on its own. As a
result, one must ask how and when will 360º degree feedback be
incorporated into training, selection and pay decisions?
12. The flow diagram attached as Annexure V explains the 360° feedback
process and Annexure VI is a blank sample of 360° feedback form (for the
Head of Support Unit of an University).
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III. Balanced Scorecard
a. Financial Perspective
The financial perspective provides a view of how the senior
executives, the board of directors and the shareholders see the
company. Typical metrics in this perspective might be earning per
share, revenue growth and profit maximization. In the BSC, financial
measures play a dual role: they define the financial performance
expected from the strategy and they serve as the ultimate targets
for the objectives and measures of all the other scorecard
perspectives. The financial measures are chosen based on the
business life cycle and also the strategic theme chosen for the financial
perspective. In addition to increasing returns, most organizations are
concerned with the risk of these returns. Therefore, when it is
strategically important, these organizations will want to incorporate
explicit risk management objectives into their financial perspective.
b. Customer Perspective
The customer perspective provides a view of how the customers see
the company. Kaplan and Norton contend that, " to put the balanced
scorecard to work, companies should articulate goals for time, quality,
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and performance and service and then translate these goals into
specific measures." Overall, this is a measure of how the company
provides value to the customer. Changes made to a business
process output that lowers the customer’s cost or allows the customer
to achieve his or her objective, have value for the customer. For
example, it’s not enough to simply bring down the cost of an item. The
delivery time and manner in which the customer is dealt during times of
sales and support are important as well. It is a measure of that value
that should be captured by the metrics (e.g. market share, customer
satisfaction, customer loyalty, customer acquisition) representing this
perspective.
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perspective looks at how effectively the organization can redesign
and implement new business process, introduce and exploit new
technology and adapt to changing conditions in general. Thus the
measures in this perspective are truly the enablers of the other three
perspectives. These measures are like the roots of a tree that will
ultimately lead through the trunk of internal process to the
branches of customer results and finally to the leaves of financial
returns. Metrics of this perspective can be adaptability, employee
satisfaction, and willingness to share and gain knowledge.
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4. The steps of implementation are:
First the multiple perspectives are to be identified, which can be, as: Financial
Measure, Customer Measure, Internal Process and People (Learning & Growth).
After this the main task is to identify the Key Performance Indicators (KPI) in each
of these multiple perspective.
a. Identifying Key Action Areas
b. Implementation of Key Action Areas
c. Monitoring Key Action Areas
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b. The time factor involved in designing a Balanced Scorecard can be
considerable since it involves a lot of people in the organization. Their
commitment is important not only in building the Balanced Scorecard but
especially in implementing and using it. Although a Balanced Scorecard may
be well designed, lack of participation and commitment on the part of staff will
make the scorecard useless.
c. Finally, there is always a chance that too many measures will be selected.
This is a problem because it is very difficult to track a large number of
measures. Furthermore, some of the measures selected may be objective,
such as employee turnover rates, and other measures may be subjective
measures, such as employee morale or quality time spent with customers.
The subjective measures, by definition, involve somebody’s judgment and,
therefore, are more prone to error. Consequently, there is a question whether
subjective measures should be used and if so how can they be made more
reliable.
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Chapter 12
I. Features:
intranet-based
Ease of use
Sophisticated workflow
Centralized repository
User customizable performance appraisal forms
Automated email notification and reminder notice
Comprehensive status and action view for HR manager
Competency-based text answers and/or range scale
Self-rating capabilities
Continuous performance journal entries throughout the year
Import employee data from the HRIS system of the organization
Scoring and weighting capabilities
II. Benefits:
Appraisals are processed more quickly and efficiently.
Appraisal data is received by concerned superior/manager in virtual real-time
when the appraisal is uploaded into eAppraisal system.
It can be attached to the e-Target Setting wherein it imports data of e-Target
Setting and the weightage and scoring is done based on the e-Targets
decided mutually by the appraisee and his manager.
Appraisals cannot be misplaced or lost, as is possible with hardcopies.
Appraisals can be stored electronically and available online.
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How?
The appraisee and his manager decide on the individual targets with are in
line with organizational targets.
With periodic reviews the targets can even be modified. The targets can be
decided keeping in mind the 4 perspectives of Balanced Scorecard viz
financial, customer, internal business processes, and innovation & learning.
The programming of eAppraisal can be customized accordingly.
The weightage and scores can be divided not only on these perspectives but
also on the personal strengths and weaknesses of an individual as well as
the training and developmental needs.
To assess the strengths and weakness of an individual 360º Feedback
system can be used and accordingly the training and developmental needs
can be identified.
IV. Process:
The eAppraisal process chart is attached as Annexure VIII. The process has been
detailed below:
The appraisee creates an eAppraisal and fills up Key Performance Areas (KPAs) &
achievements with their weightages. In short he does self-appraisal. The system
aggregates the rating as per the formula and calculates total score as well as
overall rating.
Appraisee submits the eAppraisal request to his reporting manager (Main Appraiser).
Appraisee can also intimate other appraisers, if any, through the system before
submitting his request to the Reporting Manager. The reporting manager receives
an email with the document-link of submitted request.
Reporting Manager enters his rating and can change the weights of each KPA
achieved by the employee and the system recalculates the totals and overall rating.
However, the ratings/weights entered by appraisee cannot be changed. Appraiser
has to also complete the section on Overall Assessment, Strengths & Training
Needs.
After completing the evaluation, Appraiser submits the eAppraisal to the reviewer,
who is reporting head of reporting manager. System will intimate the request by an
email to reviewer to the document link.
If necessary, appraiser has option to return the appraisal back to the appraisee and
request for suitable modifications and re-submission.
Other appraisers, if any, enter their aggregate rating and comments in appraisal
summary & review section.
Reviewer sees the scores & comments entered by the appraisee, the Appraiser and
other appraisers. Reviewer enters his overall rating & comments on the same.
Then the reviewer forwards the same to the Human Resource (HR) department.
Reviewer has an option to send it back to appraiser if necessary.
HR accesses to various summary views to help them analyze the appraisers. They
also identify activities behind schedule and intervene as necessary to expedite. The
data is then presented to the Management Committee.
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The HR person enters the final overall rating and comments.
At the above stage final discussions between main appraiser and appraisee take
place and the appraisee confirms this by adding the date of discussions and his
own comments.
Thus this process is fully transparent as appraisee can view the rating and
comments entered at different levels.
After having gone through the various methods and techniques of appraisal,
the current practice being followed in a renowned organization is shared in the
next Chapter 13.
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Chapter 13
I. Profile of Organization:
Company ABC is 40 years old company started in 1968. It is one of the top 6
pharmaceutical companies in India having turnover of more than 1700 crores
annually. The company has communicated its vision and goals to its
employees across the organization at all levels and is in the process of
adopting best practices in every sphere of its business.
3. During 1990s, the process changed for better as the employees were
asked to give their key result areas and target achievement. Appraiser
used to discuss with the appraisee his performance and started giving
feedback with his strengths and weaknesses and also the areas of
improvement. Based on their discussion, training needs used to be
identified. However, the involvement of the appraisee was only till this
stage. The results were still not disclosed to him and kept confidential.
Through the letter of reward i.e. pay hike, incentive or promotion;
employee was able to know the results of his performance appraisal. In
case of poor performance, letter of `no increment’ was given to the
employees. The company had it’s budget allotted for this purpose the
employees rewards had to fitted in this budget. Hence there were different
ratings based on their grades viz Superior, Good, Average and Poor.
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Achieved, Mostly Achieved, Partly Achieved and Not Achieved. For each
KRA i.e. key result area, the appraisee was appraised. The appraisal
consists of 100 marks of which 85 marks are based on professional
competence and 15 marks on behavioural traits or soft skills.
3. The rating of each KRA is multiplied by the weightage given to it and the
total is arrived at by adding up the product for each KRA. Similarly
weightage is given to each behavioural trait specified for the appraisee
and the rating scored by him is multiplied by the weightage. The product
for each trait is then summed up. Then the total of professional
competence and the total scored on behavioural traits are added up.
Based on the aggregate total the employee is awarded a relevant rating
and based on his grade the reward in the form of pay hike and/or
promotion.
4. The total aggregate marks that an employee can get are 600 because the
total weightage is 100 and the highest rating is 6. By multiplying
weightage by highest rating i.e. 6, the total comes to 600. The rating
structure is as under:
Rating Range
1 551-600
2 451-500
3 351-450
4 251-350
5 151-250
6 Less than 151
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(MA/PA/NA) (FA) (E/OS)
6. The increment and incentive structure is decided based on the grade and
rating for all the employees and a separate promotion policy (based on
yearly appraisal) is formulated which goes hand-in-hand with the
increment/incentive policy.
HIGH LH MH HH
MEDIUM LM MM HM
Potential
LOW LL ML HL
LOW MEDIUM HIGH
Performance
The above grid clearly explains that LL rated person has low performance
with low potential, HM rated person shows high performance but medium
potential, while HH rated person is high performer with high potential.
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rationalize the overall rating system and maintain the budgeted figure for
this purpose.
9. The entire appraisal process right from target setting till the final rating is
done electronically.
Thus this company has moved from the traditional confidential reporting
to a totally transparent system by way of eAppraisal.
IV. These changes in the appraisal system have benefited all concerned right
from appraisee to the organization as a whole in the following ways:
2. Reduced Time:
Reduced the time necessary for managers to prepare and conduct annual
reviews.
4. Tracking:
The bottlenecks in the process are tracked and can be expedited.
5. Manage KPAs:
Made it easier to manage, track and evaluate KPA’s throughout the year.
7. Centralized Administration:
Data and processes are centrally administered and driven by HR.
Managers are able to review the appraisals in an efficient manner.
8. Flexibility:
This system is flexible enough to be customized, as and when need
arises.
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Chapter 14
CONCLUSION
The automated systems call for higher investment in terms of money though
reduced time and increased overall effectiveness.
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SUGGESTIONS/RECOMMENDATIONS
I. For Appraisees:
Following are five keys to help employees to overcome a bad appraisal:
1. Employees should complete a draft of the Performance Appraisal Form or
Narrative Form. They will be surprised at how much they have
accomplished.
2. They should go into the review assuming there will be some negatives,
and think of the meeting as a way to learn what specific issues they have
to work on to get to that next step. It’s the boss’ job to let the employees
know about areas where they can improve, so the employee should try not
to be offended. The employees’ goal is to convince the supervisor, in a
positive manner, that they are willing to make that commitment.
3. Before going into a review, employees should carry a page with two
columns, the first headed “Specific Areas of Strength” and the second,
“Specific Areas of Improvement”. It’s very important that they hear both
the good and the bad comments, because they will never improve, to their
boss’ satisfaction, if they deny, in their anger, that there are any areas
needing improvement.
4. Employees should ask for clarification and specific examples if they hear
generalizations or don’t understand what the problem is. But they should
try hard not to be too argumentative.
5. Employees should find out how their boss might solve these issues, and
ask for another review in 30 days to address these specific issues, to see
if headway is being made.
Thus, the employees should create an image of a thoughtful employee who is
willing to change and able to modify behavior.
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6. Provide ongoing feedback on performance on day-to-day basis. If an
employee is given ongoing feedback, then the annual appraisal should
contain no surprises.
7. Schedule the appraisal meeting several days in advance.
8. Put the employee at ease at the beginning of the appraisal meeting.
9. Allow the employee to engage in self-evaluation.
10. Emphasize work behaviours rather than personal traits.
11. As soon as a performance is declined or affected, openly discuss with the
employee to try to determine the cause of affecting the performance.
12. Provide positive feedback as well as negative feedback.
13. Keep a regular record of lack-a-side attitude.
14. While appraising, he should make it clear to the employee that it is only his
personal opinion of the facts as seen by him;
15. Use specific examples to illustrate employee’s accomplishments.
16. He should pass the appraisal information on only to those concerned with
the process.
17. To initiate the performance appraisal discussion with the concerned
subordinate by objectively assessing performance vis-à-vis targets set.
18. Ask probing questions to seek clarification of misunderstandings or views
that differ. This gives the employee an opportunity to discuss items of
interest or concern.
19. Close the performance review meeting:
Summarize the key issues that were discussed and seek agreement
and/or clarification.
Give positive feedback to the employee for his/her active participation
in the review meeting.
Reinforce one’s commitment and the employee’s commitment to future
plans, as discussed.
Explain the next step in the performance process.
End the meeting in a positive, friendly manner.
20. Identify potential talent
21. To discuss subordinate’s appraisal with the Reviewer & finalize ratings.
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5. To review the potential talent identified by appraiser.
6. Should not compare the employee’s appraisal with somebody else’s
without knowing the basis on which it was made.
7. To ensure timely submission of all targets and appraisals of the entire
team (department) to Human Resource department.
8. To ensure that all Appraisees have been given constructive feedback by
respective Appraisers.
V. Human resources:
The human resources department has to:
1. Facilitate performance management system process across the company.
2. Conduct workshop for higher clarity & bearing on performance
management system (PMS).
3. Make use of PMS to create talent pipeline for future.
4. Propose & work closely with management committee on compensation
strategy & implementation linked to market & performance.
5. Ensure end-to-end visibility in completion of this exercise and timely
release of reward letters.
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BIBLIOGRAPHY
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