 “performance appraisal is a systematic appraisal of the employees’ personality traits and performance on the job and is designed his contribution and relative worth to the firm” Shubin

 Performance appraisal.  A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made.  Performance appraisal should be based on job analysis, job description, and job specifications.

 Purposes of performance appraisal.  The four functions describe two general purposes of good performance appraisal. Evaluation. Feedback and development.

 Evaluative decisions.  Concerned with issues regarding: Promotions Transfers. Terminations. Salary increases.  When these issues are decided on the basis of performance, a performance appraisal system is needed.

 Goal:  Improve the effectiveness & efficiency of the organization by: Aligning the employee’s work behaviors & results with the organization’s goals Improving the employee’s work behaviors & results  On-going, integrative process

 Employee Development Tool  Set goals Involve employee Measurable Challenging but realistic, difficult but achievable Empower employee to achieve goals  Provide feedback to reinforce and sustain performance  Provide help and advice to improve performance

 1. it is a systematic process  2. Evaluating Process  3. Periodic Process  4. Future-Oriented  5. Employee Development

1.Performance Improvement in Organization 2.Career planning & Development 3.Job Design Errors 4.External Challenges 5.Feed back to Human Resource 6.Training & Development Needs 7.Placement Decision

 1. Organizational Leadership  2. Organizational Structure  3. Environmental Constrains  4. Interdependence of Subsystem

 Traditional Modern 1. Ranking method 1. Management by Objective 2. Paired comparison 2. Behaviorally Anchored rating scale 3.Grading 3. Assessment centres 4.Forced Distribution method degree 5.Forced choice method 5. Cost accounting method 6.Check list method 7.Graphic scale method 8.Essay method

1. Ranking: (1 to 10) (best to worst) 2. Paired comparison: each employee is compared with other employees 3. Grading: there can be three categories established for employees: (outstanding, satisfactory and unsatisfactory)

 4. Check-list method (questioner, yes or no)  5. Essay Method ( analysis of SWOT)  6. Forced- choice method: it contain a series of groups of statement and rater how effectively a statement describes each individual being evaluated. 7. Critical incidents methods: (effectively & ineffectively) i) first frame a list of noteworthy on-the-job behavior of specific incidents is prepared. ii) group of experts then assigns weightage to these incidents iii) finally check-list indicating incidents that describe workers as good or bad

 1. MBO (Management By Objective) Peter Drucker propounded a new concept, Viz MBO, in  Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.  Biggest problem with MBO’s is when they are vague or unclear 1.Set the organization’s goals. 2.Set departmental goals. 3.Discuss departmental goals. 4.Define expected results (set individual goals). 5.Performance reviews. 6.Provide feedback.

Four main steps; 1. Goal setting (the superior and subordinate jointly established the goals) 2. Performance standard (the standard are set for the employee as per the previously arranged time period) 3. Comparison ( compared with the goals agreed upon, evaluator to find out the reasons for variation between actual & standard performance) 4. periodic review: ( corrective measures, if performance deviates from the standards)

 360 degree  First developed by General Electric Company in  It travel to all companies (wipro, reliance, infosys,..) Under this.. Performance information such as employee’s 1. skill 2. ability 3. behaviors, is collect “ all around” an employee.

 360-degree feedback, also known as multi-rater feedback, multi source feedback, or multi source assessment, is feedback that comes from members of an employee's immediate work circle.  Most often, 360-degree feedback will include direct feedback from an employee's subordinates, peers, and supervisor(s), as well as a self-evaluation.  It can also include, in some cases, feedback from external sources, such as customers and suppliers or other interested stakeholders.

 Employee’s performance from the monetary benefits the employee yield to organization  Establishing relationship between the cost involved in retaining the employee 1. quality of product produced or service rendered 2. overhead cost incurred 3. Accidents, damage, errors, wastage through unusual 4. cost of time supervisor spent in appraising the employee

 Move from one job to another job  It can be classified into two i) Internal mobility - Transfer, Promotion, Demotion. ii) External mobility- Retirement, Resignation, Termination.

 1. Changes in organization structure, technology.  2. Fluctuation in volume of work.  3. Changes in knowledge, skills, attitude, values of employees.  4. Changes in demand of trade unions.  5. Problems of Inter personal  6. Changing in govt rule

 Process through which managers assure that actual activities confirm to the planned activities.

 Controlling is determining what is being accomplished that is,evaluating the performance and if necessary applying corrected measures so that performance takes place according to plans – George R.Terry

Setting objectives Establishing standards Measuring performance Appraisel of performance Correcting deviations

1.Setting objectives -clear, specified and understood without ambiguity, meaningful. 2.Establishing standards -yard sticks of performance and specify what should be accomplished. -May be quantitative or qualitative. -Flexible, accurate, revised periodically, should be consent with overall organizational objectives. 3.Measuring performance -monitor and measure the actual performance. -monitoring and measurement by means of collecting the data that represents the actual performance of the activity.

4.Comparison of actual performance and standards -2 steps a) finding the extent of deviations. b)Identifying the causes of deviations. 5.Correcting the deviations decisions must be taken as to what corrective actions are needed to remedy the situation

 1.To achieve the objectives.  2.Effecient use of resources.  3.Facilitates decision making.  4.Improves employee morale.  5.Helps in achieving better coordination.  6.Helps in better planning.

 1.Feed back.  2.Objective.  3.Suitability.  4.Prompt reporting.  5.Forward looking.  6.Pointing out deviations.  7.Flexible.  8.Economy.  9.Intelligible.  10.Suggest remedial action.  11.Motivation

 Dissatisfaction :Anything that disturbs an employee, whether or not the unrest is expressed in words.  Complaint : A spoken or written dissatisfaction brought to the attention of the supervisor or the Shop Steward ( In – Charge ).  Grievance : A complaint that has been formally presented to a Management Representative or to a Union Official

 1. A grievance is a formal dispute between an employee & management on the conditions of employment.  2.Grievances are complaints that have been formally registered in accordance with the grievance procedure.  3. A grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of the management.

 1.Discontent or Dissatisfaction.  2. Dissatisfaction must arise out of employment & not due to personal reasons.  3. The discontentment can arise out of real or imaginary reasons.  4. The discontent may be voiced or unvoiced but it must expression in some form.  5. Broadly speaking a grievance is noticeable & traceable to real or perceived non-fulfillment of one’s expectations.

 1. ECONOMIC.  2. WORK ENVIRONMENT.  3. SUPERVISION.  4. WORK GROUP.  5. MISCELLANEOUS.

 1. Work Environment : Light, space,heat.  2. Use of equipment : Tools / Poor Maint.  3. Supervisory Practices.  4. Personality clashes.  5. Managers’ Behavior.  6. Refused requests.  Problems wits pay / allowances.  7. Perceived inequalities in treatment : Pay,appeals against performance related awards.  8. Organizational Change.

 1. On Production : Low quality of production, Low productivity, Increase in wastage, Increase in cost of production  2. On Employees : Increased absenteeism, Reduction in level of commitment, Increase in accidents, Reduced level of employee morale.  3. On Managers : Strained superior – subordinate relations, Need for increased supervision/control & follow up Increase in unrest,thereby machinery to maintain industrial peace.

 1. It encourages employees to raise concerns without fear of reprisal.  2. It provides a fair & speedy means of dealing of grievances.  3. It prevents minor disagreements developing into more serious disputes.  4. It saves employer’s time & money as solutions are found for workplace problems.  5. It helps build in organisational climate based on openness and trust.

 To enable employee to air his/her grievance.  2. To clarify the nature of grievance.  3. To investigate the reasons of dissatisfaction.  4. To obtain where possible a speedy resolution to the porblem.  5. To take appropriate actions & ensure that the promises are kept.  6. To inform the employee his /her right to voice the grievance & take it to next stage of the procedure.

 1. On Production : Low quality of production, Low productivity, Increase in wastage, Increase in cost of production  2. On Employees : Increased absenteeism, Reduction in level of commitment, Increase in accidents, Reduced level of employee morale.  3. On Managers : Strained superior – subordinate relations, Need for increased supervision/control & follow up Increase in unrest,thereby machinery to maintain industrial peace.

 1. It encourages employees to raise concerns without fear of reprisal.  2. It provides a fair & speedy means of dealing of grievances.  3. It prevents minor disagreements developing into more serious disputes.  4. It saves employer’s time & money as solutions are found for workplace problems.  5. It helps build in organisational climate based on openness and trust.