Unit 4 Human Resource Management

Dr.Ram Singh
UGC NET JRF, PhD
Performance Appraisal
Objectives
Methods
Job Evaluation
Job analysis : Job description and Job specification.
Welfare Activities
Housing facilities
Canteen,
Fringe benefits
Health and safety to workers
Voluntary welfare schemes
Social Security measures
Wages and Salary determination
 
PERFORMANCE APPRAISAL
is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his
present job and his potential for a better job.“
-Fillipo  
OBJECTIVES OF Performance appraisal
To review the performance of the employees over a given period
of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between
superior – subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as
to identify the training and development needs of the future.
.
 
Provide clarity of the expectations and responsibilities
of the functions to be performed by the employees.
To judge the effectiveness of the other human resource
functions of the organization such as recruitment,
selection, training and development.
To reduce the grievances of the employees
To provide feedback to the employees regarding their
past performance.
Provide information to assist in the other personal
decisions in the organization
Reflect on what is required of the employee to do their job
well (including behaviour and results)
set goals that will benefit the individual and the business
share feedback on great work as well as areas for
improvement
identify opportunities to develop performance through
ongoing education, training and learning
formally review performance after a specific period
reward a job well done
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Methods of Performance Appraisal

 Traditional Methods
 ESSAY METHOD
 In the essay method the rater must describe the employee
within a number of broad category such as:
 The rater’s overall performance
 The promotablitiy of the employee
 The jobs that the employee is now able or qualified to perform.
 Ranking method
 In this the superior ranks his or her subordinates in the order
of their merit sarting from the best to the worst.
 All that the HR department knows is that A is better than B,
then there is no question of how and why.
Paired Comparison Method
In this method the appraiser compares each
employee with every other employee one at a time.
For example there are five employees name A B C
D and E the performance of A is first compared
with the performance of B and a decision is made
about whose performnce is better. Then A is
compared with C,D, and E in that order. The same
procedure is repeated with other employee
The number of comparison can be may be
calculated by using following formulae
N(N-1)/2
CRITICAL INCIDENT METHOD
• The approach focuses on certain critical behaviors of an employee that
makes all the difference between effective and non effective
performance of a job. • Such incidents are recorded by the superirs as
and when they occur.
• Checklist Method
• In this method the rater doesn‟t evaluate employee perfromance he
supplies reports about it and the final rating is done by the personal
deaprtment.
• A series of question are presented concerning an employee to his
behaviour.
• To value of each question may be weighed equally or certain questions
may be weighed equally or more heavily than other.
• Forced Choice Method
• In this the rater is given a series of statements about an
employee. These statements are arranged in block of
two or more and the rter indicates which statement is
most or least descriptive of the employee.
• Typical statements are –
Learns fast-------------------works hard
– Work is reliable----------------performance is good
– Often absent-------------------regular.
• Rating scales
• This is the simplest and most popular technique for
appraising employee
• It consist of several numerical scales each representing
job related criterion such as dependability, initiative
output attendance, attitude etc.
• Each scale ranges from excellent to poor
• The rater check the employee performance on each
criterion.
 • Rating scales
• This is the simplest and most popular technique for
appraising employee
• It consist of several numerical scales each representing
job related criterion such as dependability, initiative
output attendance, attitude etc.
• Each scale ranges from excellent to poor
• The rater check the employee performance on each
criterion.
 • MODERN METHODS
360 DEGREE PERFORMANCE APPRAISALS
• 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 appraisal has four integral components: – 1.
Self appraisal – 2. Superior‟s appraisal
– 3. Subordinate‟s appraisal – 4. Peer appraisal.
360 degree 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.
 • Management by Objectives
• The concept of „Management by Objectives‟ (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the employees and
the superiors come together to identify common goals, the employees set their
goals to be achieved, the standards to be taken as the criteria for measurement
of their performance and contribution and deciding the course of action to be
followed.
• The essence of MBO is participative goal setting, choosing course of actions
and decision making. An important part of the MBO is the measurement and
the comparison of the employee‟s actual performance with the standards set.
Ideally, when employees themselves have been involved with the goal setting
and the choosing the course of action to be followed by them, they are more
likely to fulfill their responsibilities This is the simplest and most popular
technique for appraising employee
• It consist of several numerical scales each representing job related criterion
such as dependability, initiative output attendance, attitude etc.
• Each scale ranges from excellent to poor
• The rater check the employee performance on each
criterion.
UNIQUE FEATURES AND ADVANTAGES OF MBO
• Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that
are: • Specific • Measurable • Achievable • Realistic, and • Time bound.
• The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.
• The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.
• Motivation – Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job satisfaction and
commitment.
• Better communication and Coordination – Frequent reviews and interactions
between superiors and subordinates helps to maintain harmonious relationships
within the enterprise and also solve many problems faced during the period.
• Assessment Center
• This is the simplest and most popular technique for appraising employee
• It is mainly used for executive hiring, assessment centers are now being
used for evaluating executive or supervisory potential.
• An assessment centre is a central location where manages may come
together to have their participation in job related exercises evaluated by
trained observers
• The principle idea is to evaluate managers over a period of time say one
to three days by observing and later evaluating their behavior across a
series of selected exercises or work samples.(Role playing, computer
simulation, in basket method etc.) .
Behavioural anchored rating scale
• These are the rating scales whose scales points are
determined by statements of effective and ineffective
behavior.
• The scale represent a range of descriptive statements of
behavior varying from the least to the most effective.
• Rater must describe the behavior that describe the
employee performance in a best way.
Human resource Accounting Method
• HR is a valuable asset for the organization
• This asset can be valued in terms of money
• When competent and well trained employees leave an
organization the human assest is decreased and vice versa.
• It deals with the cost of and contribution of human resource to
the organization.
• Difference between cost and contribution reflect the
performance of employee.
• Assessment Center
• This is the simplest and most popular technique for appraising employee
• It is mainly used for executive hiring, assessment centers are now being
used for evaluating executive or supervisory potential.
• An assessment centre is a central location where manages may come
together to have their participation in job related exercises evaluated by
trained observers
• The principle idea is to evaluate managers over a period of time say one
to three days by observing and later evaluating their behavior across a
series of selected exercises or work samples.(Role playing, computer
simulation, in basket method etc.) .
• Assessment Center
• This is the simplest and most popular technique for appraising employee
• It is mainly used for executive hiring, assessment centers are now being
used for evaluating executive or supervisory potential.
• An assessment centre is a central location where manages may come
together to have their participation in job related exercises evaluated by
trained observers
• The principle idea is to evaluate managers over a period of time say one
to three days by observing and later evaluating their behavior across a
series of selected exercises or work samples.(Role playing, computer
simulation, in basket method etc.) .