HELLO STUDENT: November 2017

Performance Appraisal
History & origin of Performance Appraisal
Objectives of Performance Appraisal
Benefits of Performance Appraisal
Performance Appraisal Process
Performance Appraisal Rating Factors

Traditional methods of Performance Appraisal
Modern Methods of Performance Appraisal
360 Degrees Performance Appraisal

How to get best performance appraisal from your boss?
Performance Appraisal at Pepsi-Cola International
Potential Appraisal
Performance Counseling

The performance appraisal is the process of assessing employee performance by way of comparing present performance with already established standards which have been already communicated to employees, subsequently providing feedback to employees about their performance level for the purpose of improving their performance as needed by the organisation.

As said above the very purpose of performance uprising is to know performance of employee, subsequently to decide whether training is needed to particular employee or to give promotion with additional pay hike. performance appraisal is the tool for determining whether employee is to be promoted, demoted or sacked ( remove ) in case of very poor performance and no scope for improvement.

Every corporate sector uses performance appraisal as a tool for knowing about the employee and take decisions about particular employee. for the purpose of performance appraisal of employees there are different methods under the category of traditional methods and modern methods which are discussed in following chapters.

What is Performance?
What does the term performance actually mean? Employees are performing well when they are productive. Productivity implies both concern for effectiveness and efficiency, effectiveness refers to goal accomplishment. However it does not speak of the costs incurred in reaching the goal. That is where efficiency comes in. Efficiency evaluates the ratio of inputs consumed to outputs achieved. The greater the output for a given input, the greater the efficiency. It is not desirable to have objective measures of productivity such as hard data on effectiveness, number of units produced, or percent of crimes solved etc and hard data on efficiency (average cost per unit or ratio of sales volume to number of calls made etc.).

In addition to productivity as measured in terms of effectiveness and efficiency, performance also includes personnel data such as measures of accidents, turnover, absences, and tardiness. That is a good employee is one who not only performs well in terms of productivity but also minimizes problems for the organisation by being to work on time, by not missing days, and by minimizing the number of work-related accidents.

What is Appraisal?

Appraisals are judgments of the characteristics, traits and performance of others. On the basis of these judgments we assess the worth or value of others and identify what is good or bad. In industry performance appraisal is a systematic evaluation of employees by supervisors. Employees also wish to know their position in the organization. Appraisals are essential for making many administrative decisions: selection, training, promotion, transfer, wage and salary administration etc. Besides they aid in personnel research.

Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an employee in performing his task. Performance appraisal helps to identify those who are performing their assigned tasks well and those who are not and the reasons for such performance.

Definitions:

Performance appraisal has been defined by different scholars in various ways. Some of the important definitions are as follows:

Dale S. Beach, "Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development".

Randall S. Schuler, "Performance appraisal is a formal, structured system of measuring and evaluating an employees job, related behaviour and outcomes to discover how and why the employee is presently perfuming on the job and how the employee can perform more effectively in the future so that the employee, organisation, and society all benefit."

Heyel, "It is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally."

Dale Yoder, ''Performance appraisal includes all formal procedures used to evaluated personalities and contributions and potentials of group members in a working organisation. It is a continuous process to secure information necessary for making correct and objective decisions on employees."

Performance appraisal from employee point of view - "A performance appraisal is meant to help employees realise their strengths and shortcomings and receive a compensation accordingly."

Facts [+]

A recent survey of more than 2,000 full-time employees by Adecco Staffing of North America found that less than half of workers say managers take performance reviews seriously, and even fewer say they receive constructive feedback.

Tech Mahindra in its annual performance appraisal process layoff bottom performers every year and this year too. company, however, did not specify the number of employees that could be asked to leave. However, industry sources suggest that the number would run into hundreds. At the end of December 2016, the company had over 1.17 lakh employees. In an another incident the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

The development comes at a time when Indian IT firms are facing challenges in the business environment and stricter work permit regime in countries like the US, Singapore, Australia and New Zealand

How often should appraisals take place?
Performance appraisal in any organisation will be done at a specific period, like annually or half yearly or quarterly or maybe regularly. It all depends upon the nature or size of the organisation, and sometimes necessity of the managers decide the period of performance appraisal of their employees. Most of organisations are insisting employee appraisal should be a continuous process and should not be limited to a formal review once a year. The frequency of formal appraisals will depend on the nature of the organization and on the objectives of the system. For example, in a high technology organisation objectives may be changing quickly so that formal appraisals may need to be carried out more than once a year. In an environment which is less subject to change, annual appraisals may be sufficient. Most employees receive a formal appraisal annually, although more frequent appraisals are often needed for new employees, for longer serving staff who have moved to new posts or for those who are below acceptable performance standards.

Adobe Systems, U.S based software company has abolished annual performance appraisal system of its employees. Instead company management has introduced regular feedback method for reviewing regular performance of its employees rather than waiting till year ending for performance review. Company managers feel regular feedback will improve the performance of employees as they come to know their regular performance, further managers are considering these regular feedback in the matter of salary hikes and promotions.

Mid-year appraisals good for staff motivation

Appraisals may no longer exist as once-a-year phenomena. A growing number of companies are opting for mid-year - and even quarterly - reviews. The main argument in favour of this trend is that it may not be wise for a company to wait as long as one year to assess employee performances.

Whether it is to reward employees for something they did two quarters back or bringing them back on the path of growth, in case they have strayed, companies have realized the earlier they do so, the better. Organizations like Deutsche Bank and Akzo Nobel India have been following mid-term performance reviews for a few years now, while the list of other companies following this model appears to be growing. Nivea India is among those which have recently adopted the practice.

According to Makarand Khatavkar, MD and head, HR (Dt. 2012) at Deutsche Bank, the bank is trying to make its mid-term reviews more robust. The move is aimed at making managers and employees more accountable. Bank is currently conducting a communication and education exercise to train and convey to all our employees about the new performance system.At Deutsche Bank, performance standards are being made more objective so that they are easy to understand and implement.

During annual appraisals, mostly recent accomplishments and disappointments may get noticed as these are fresh in the memory while the events which date back a few quarters could go unnoticed. At global paints and coatings major, Akzo Nobel India, appraisals are a continuous process. "The HR team conducts workshops with managers before the mid-year and year-end cycle based on the performance and development dialogue process. The mid-year review is not about ratings but is geared at reviewing and providing guidance to the employees. The year-end process, on the other hand, focuses more on self assessment and involves feedback by both primary and secondary reviewer," said Sangeeta Pandey, director, HR (Dt. 2012), Akzo Nobel India.

HCL Technologies is looking at a unique experiment this year - whether appraisals could be based on feedback from peers and subordinates and if the same practice could be extended to rewards and recognitions as well. The company is looking at piloting this experiment with a small group. The company, however, didn't elaborate on details as the process is in early stages.

Facts [+]

A Brazilian firm, Semco,( best known for its radical form of industrial democracy and corporate re-engineering.) has 3,000 employees, a turnover of over $200 million and has been growing at 20-30% every year. Semco does have managers but employees have more freedom than elsewhere. They can choose their hours of work, decide their salaries and pick their bosses. Managers are anonymously evaluated every six months by their subordinates. Semco has practised this philosophy for 25 years now.

60% employees say performance appraisals are a waste of time, 70% say no idea how they are evaluated: Survey

March, 2017
Organisations need to make staff appraisals more transparent and useful as most employees are neither fully conversant with the process nor do they see them as a worthy task to perform.

Majority of the employees find performance reviews in their organisations opaque, cumbersome and a waste of time, reveals a TimesJobs survey, 'The Performance Review Puzzle', of more than 1,200 employees in various kinds of organisations.

Sixty per cent employees said the performance review was a waste of time.

Most employees are not even fully aware of the process of evaluation. Seventy per cent said they did not know how they were evaluated. Not surprisingly, 85 per cent were not aware of the end-to-end process of performance review.

Ninety per cent found performance review forms complex and cumbersome.

Outcome of appraisals never left 35 per cent satisfied while 25 per cent had been rarely satisfied. Only 10 per cent said they were always satisfied. Thirty per cent were sometimes satisfied.

A huge 95 per cent said they were not trained by the human resource department to fill in the review form.

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.

As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing process of obtaining, researching, analyzing and recording information about the worth of an employee.

Objectives of Performance Appraisal

The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards.

Providing Feedback. Providing feedback is the most common justiﬁcation for an organization to have a performance appraisal system. Through its performance appraisal process the individual learns exactly how well he/she did during the previous twelve months and can then use that information to improve his/her performance in the future. In this regard, performance appraisal serves another important purpose by making sure that the boss’s expectations are clearly communicated.
Facilitating Promotion Decisions. Almost everyone in an organization wants to get ahead. How should the company decide who gets the brass rings? Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are ﬁlled by the most capable individuals.
Rightsizing or Downsizing Decisions. If promotions are what everybody wants, layoffs are what everybody wishes to avoid. But when economic realities force an organization to downsize, performance appraisal helps make sure that the most talented individuals are retained and to identify poor performers who effects the productivity of the organisation. (India's largest software services provider TCS axed 1,000 jobs in the country due to non-performance by its employees. Jan 15, 2015, PTI)

INDIA: Technology firm cognizant uses annual performance appraisal system to assess its employees for the purpose of retaining talent and for Compensation management. During its annual performance appraisal of the employees, the firm has asked its employees identified as underperformers to leave the organisation. Sources said there were more than 500 'underperformers' in the list, this could not be verified.

Ericsson lays off 22 executives in India,

Feb, 2012.
The Indian arm of the world's largest telecoms gearmaker, Ericsson, is trimming and redeploying staff as it faces lukewarm operator spends in a fiercely competitive market.

17 Apr, 2013. ET.
Nearly 22 executives across categories have been fired on performance grounds and another 100 are likely to be transferred to sister organisations like Ericsson India Global Services, Ericsson Supply Site Jaipur, R&D centres and the regional technical centres (RTCs) to boost efficiencies, a top company executive aware of the development .

Encouraging Performance Improvement. How can anyone improve if he doesn’t know how he’s doing right now? A good performance appraisal points out areas where individuals need to improve their performance.
Motivating Superior Performance. This is another classic reason for having a performance appraisal system. Performance appraisal helps motivate people to deliver superior performance in several ways. First, the appraisal process helps them learn just what it is that the organization considers to be ‘‘superior.’’ Second, since most people want to be seen as superior performers, a performance appraisal process provides them with a means to demonstrate that they actually are. Finally, performance appraisal encourages employees to avoid being stigmatized as inferior performers (or, often worse, as merely ‘‘average’’).
Setting and Measuring Goals. Goal setting has consistently been demonstrated as a management process that generates superior performance. The performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals.
Counseling Poor Performers. Not everyone meets the organization’s standards. Performance appraisal forces managers to confront those whose performance is not meeting the company’s expectations.
Determining Compensation Changes. This is another classic use of performance appraisal. Almost every organization believes in pay for performance. But how can pay decisions be made if there is no measure of performance? Performance appraisal provides the mechanism to make sure that those who do better work receive more pay.
Encouraging Coaching and Mentoring. Managers are expected to be good coaches to their team members and mentors to their proteges. Performance appraisal identiﬁes the areas where coaching is necessary and encourages managers to take an active coaching role.
Supporting Manpower Planning. Well-managed organizations regularly assess their bench strength to make sure that they have the talent in their ranks that they will need for the future. Companies need to determine who and where their most talented members are. They need to identify the departments that are rich with talent and the ones that are suffering a talent drought. Performance appraisal gives companies the tool they need to make sure they have the intellectual horsepower required for the future.
Determining Individual Training and Development Needs. If the performance appraisal procedure includes a requirement that individual development plans be determined and discussed, individuals can then make good decisions about the skills and competencies they need to acquire to make a greater contribution to the company. As a result, they increase their chances of promotion and lower their odds of layoff.
Determining Organizational Training and Development Needs. Would the organization be better off sending all of its managers and professionals through a customer service training program or one on effective decision making? By reviewing the data from performance appraisals, training and development professionals can make good decisions about where the organization should concentrate company-wide training efforts.
Validating Hiring Decisions. Is the company hiring stars, or is it ﬁlling itself with trolls? Only when the performance of newly hired individuals is assessed can the company learn whether it is hiring the right people.
Providing Legal Defensibility for Personnel Decisions. Almost any personnel decision—termination, denial of a promotion, transfer to another department—can be subjected to legal scrutiny. If one of these is challenged, the company must be able to demonstrate that the decision it made was not based on the individual’s race or handicap or any other protected aspect. A solid record of performance appraisals greatly facilitates legal defensibility when a complaint about discrimination is made.
Improving Overall Organizational Performance. This is the most important reason for an organization to have a performance appraisal system. A performance appraisal procedure allows the organization to communicate performance expectations to every member of the team and assess exactly how well each person is doing. When everyone is clear on the expectations and knows exactly how he is performing against them, this will result in an overall improvement in organizational success.
Training Needed
These appraisals also identify the necessary training and development the employee needs to close the gap between current performance and desired performance.

Addional objectives 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.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
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.

60% employees say performance appraisals are a waste of time, 70% say no idea how they are evaluated: Survey

Mar 17, 2017

Organisations need to make staff appraisals more transparent and useful as most employees are neither fully conversant with the process nor do they see them as a worthy task to perform.

Majority of the employees find performance reviews in their organisations opaque, cumbersome and a waste of time, reveals a TimesJobs survey, 'The Performance Review Puzzle', of more than 1,200 employees in various kinds of organisations.

Sixty per cent employees said the performance review was a waste of time.

Most employees are not even fully aware of the process of evaluation. Seventy per cent said they did not know how they were evaluated. Not surprisingly, 85 per cent were not aware of the end-to-end process of performance review.

Ninety per cent found performance review forms complex and cumbersome.

Outcome of appraisals never left 35 per cent satisfied while 25 per cent had been rarely satisfied. Only 10 per cent said they were always satisfied. Thirty per cent were sometimes satisfied.

A huge 95 per cent said they were not trained by the human resource department to fill in the review form.

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed.

Almost universally, where performance appraisal is conducted properly, both supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced.

For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. Said one employee of a large organization after his first formal performance appraisal, "In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing."

The value of this intense and purposeful interaction between a supervisors and subordinate should not be underestimated.

Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment and belonging.

The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start.

Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs.

During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious - even to those who habitually reject the idea of training for them!

Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analysed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization.

Recruitment and Induction
Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.

But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct such evaluations of performance, many still recoil from the idea. To them, the explicit process of judgement can be dehumanizing and demoralizing and a source of anxiety and distress to employees.

It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

Establishing performance standards
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

Communicating the
standards
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the employees. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

Measuring the actual performance
The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

Comparing actual performance with desired performance
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
Discussing results [Feedback]
The result of the appraisal is communicated and discussed with the employees on one-

-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. Performance appraisal feedback by managers should be in such way helpful to correct mistakes done by the employees and help them to motivate for better performance but not to demotivate. Performance feedback task should be handled very carefully as it may leads to emotional outburst if it is not handing properly. Sometimes employees should be prepared before giving them feedback as it may be received positively or negatively depending upon the nature and attitude of employees.
A research conducted by TJinsite, underlined that in an effective organisation, assignments and projects are monitored continually. According to 46% of surveyed organisations, ongoing monitoring - periodic reviews and managerial feedback - provides the opportunity to check how well employees are meeting pre-determined standards and to make changes in unrealistic or problematic standards. 5 ways to give negative feedback to employees

Feedback at work is important for an individual's development. However, some people are over-sensitive to negative feedback, which makes it crucial for managers and leaders to understand how to convey it. ET's Rica Bhattacharyya talks to some experts.

1) Combine negative & positive
The ideal way of giving feedback to someone who's extremely emotional is to go for the sandwich method. Sandwich the negative feedback between two layers of positive feedback.

This helps in softening the impact of the negative feedback. By starting and ending in positive words, you ensure that the negative feedback has the right impact.

2) Be objective
It is important that you ensure that the person receiving the feedback knows that the feedback is not personal vendetta. Such kind of fundamental attribution error the employee may have ,linking the negative feedback to the person giving it. So, if you ask someone reporting to you the reason for being late, she/he might interpret that you are a control freak. Sadly, nearly all the time, the attribution strains the relationship between the two parties.

3) Don't use harsh words
Rather than telling someone outright that they are bad at something, it is better when you word it in a less harsh manner, and also provide suggestions and solutions to help them get better at what they are currently bad at.Sometimes, the most hurtful sentences are perceived in a way which makes it seem threatening and derogatory. The key is to make the employee feel safe. Only when s/he feels safe, they will be in a state of mind to understand and appreciate what you are saying.

4) Importance of feedback
One should begin by highlighting the importance of feedback — both positive as well as negative — in a professional's life.You could then follow that up with an example of how constructive feedback has helped you or someone you know, or the said employee knows, positively and made that person a better professional. While doing this, always make sure that your tone is calm and soft and like that of a mentor, rather than a rude, condescending or angry one.

5) Give feedback in private for sensitive people
With emotional people, it is also important that you always give feedback in private. Emotions are a result of a person's sensitivity, and negative or constructive feedback is usually a very sensitive topic with highly emotional people. Giving feedback to such people in front of a room full of people can have an adverse impact.
Decision-making The purpose of conducting employee performance appraisal is for making decisions about employees without any bias by the HR manager. Decision-making by HR managers about employees rewarding, promotions, demotions, transfers and sometimes suspensions/dismissal of employees are depended upon the employee performance appraisal. The decision taken by HR manager should match exactly with performance appraisal results of employees to avoid grievance or disturbances in between them, as they affects overall performance of the organisation.

Five ways to deal with a poor appraisal

Bad appraisals, like bad hair days (one of those days when nothing seems to be going right), happen to the best of us. Quitting is not a solution. Rather, take a good look at your performance and concentrate on the course ahead.

Look Within: The first step in dealing with a bad appraisal is to keep an honest mindset and introspect about your performance. "First ask yourself the question: 'What is wrong with me?'. Once you attack that, other things usually fall into place," says Dabur India HR head A Sudhakar.

Talk to the Boss: Speak to the boss about the performance review. "There is a good chance your boss may not have remembered critical activities and initiatives you have undertaken," says Meenakshi Roy, senior vice president, human resource, Reliance Broadcast Network.

Take it in your Stride: There is a good chance that your boss' critical evaluation is spot on. "Try never to take these critiques personally and quit. That may be your biggest mistake. Consider consulting another senior colleague or a mentor," says Roy.

Plan Ahead: "Be actively involved in setting your targets for the year ahead based on your strengths," says S Roy, a midlevel manager in an IT firm . Also, periodically review your performance with your boss. That way, there will be fewer unpleasant surprises.

Move on Gracefully: At times, reasons not connected with your performance affect the appraisal you deserve. "You can bring up the issue with your bosses. But if nothing comes of it, it's time to move on," says Sudhakar. But don't make an ugly exit. "You never know when it can come back to haunt you," he adds.

5 ways to discard tag as poor performer

Nobody wants to be seen as a poor performer. There always a reason why you're being perceived that way and it is your job to find out the reason.

1) Find the Root Cause
The first step towards shedding the tag is to dig deep and find out where the poor performance stems from. Is it lack of skill to do the job or is it lack of motivation to perform? Once you know and accept why you're underperforming, it becomes relatively easy to take corrective action.

2) Seek feedback
Seek constant 360-degree feedback to understand your shortcomings and work on them. Analysing feedback in a positive manner will help you grow professionally and personally. Take criticism constructively and learn from past mistakes.

3) Take Initiative & Deliver
If it is lack of ability or skill, you must take the initiative to train yourself on the particular skill you lack. Have an honest conversation with your manager and let her/him know that you need training to improve your skills, if that is what you're lacking. When an employee is proactive, managers are more than happy to help. Once you've been trained, apply your learnings to the task at hand. Delivering consistently helps you come out of the shadow of being a poor performer.

4) Work with High Performers
While working in teams or on group projects, seek to work with highperforming team members, or those whose work has been responded to positively in the past. This will help you learn from their experiences, as well as showcase your work in a positive light.

5) Take Small Steps
The label of a poor performer comes when you haven't been delivering over a period of time. It is not easy to get rid of it. However, the quickest way of doing so is to perform well at smaller tasks that are more short term in nature. A number of such small wins will help you be known as a good performer. When you become consistent, it leads to a change in how people see you.

Performance Appraisal Rating Factors

The following are samples of rating factors and example standards taken from a variety of sources. Some may overlap, and some may need to be expanded to include more descriptive and/or numerical measures. Please feel free to combine or modify them to fit your needs by cutting and pasting.

GENERAL

Adaptability
Efficiency with which employee works under stress and responds to change.
- Receptive to change/new ideas
- Shows poise and/or courtesy in tough situations
- Demonstrates ability to modify behavioral style and approach to goal
Assertiveness/Motivation
Degree to which the employee pursues goals with commitment and takes pride in accomplishment.
- Takes initiative eagerly
- Demonstrates orientation to achieve results
- Behavior reflects a desire to excel on the job
- Works steadily and actively
- Demonstrates self-confidence and positive attitude towards self and others
Attendance
The extent to which the employee can be depended upon to be available for work and to fulfill position responsibilities.
- Reports to work on time
- Communicates schedule changes promptly to supervisor
- Maintains regular attendance
Communication
The extent to which the employee effectively listens, conveys and receives ideas, information and direction.
- Seeks to clarify and confirm the accuracy of their understanding of unfamiliar or vague terms and instructions
- Makes oral and written communication clear and easy to understand
- Assesses and takes steps to improve ability to communicate (written and verbal) so ideas and consultations are conveyed with precision and efficiency
Creativity
Extent to which employee generates workable and innovative ideas, concepts and techniques.
- Attempts to simplify and/or improve procedures and techniques
- Initiates new and creative ideas or procedures to enhance the department or organization
- Looks for new solutions to old problems
Customer Focus
The degree to which the employee takes the initiative to meet internal and external customer needs in a timely and courteous manner.
- Examines customer requests to properly identify and resolve customer concerns
- Supports customer service efforts through program design, implementation, recovery and follow-up
Customer Service
- Serves customers in a manner that increases their confidence and knowledge to resolve their own problems
- Acknowledges shortcomings when appropriate
- Reaffirms commitment to professional service
- asking probing questions that elicit the facts and help the customer through some of the decision-making process
- Responds to customer requests on contact date or within 24 hours
Dependability/Initiative
The extent to which an employee effectively and enthusiastically accomplishes assignments with minimal supervision.
- Independently contributes ideas and projects
- Adapts to change
- Follows-through on work assignments
- Demonstrates eagerness and positivism
- Shares ideas and suggestions
- Takes on new responsibilities
- Willing to assist co-workers
Job Knowledge
The demonstration of technical, administrative, managerial, supervisory, or other specialized knowledge required to perform the job. Consider the degree of job knowledge relative to length of time in the current position.
- Able to answer difficult questions
- Effectively learns new skills
- Maintains up-to-date job related information
Judgment
Ability to analyze problems or procedures, evaluate alternatives, and select best course of action.
- Uses of logic and common sense in decision making
- Makes appropriate and consistent decisions
- Obtains and evaluates pertinent information to determine source of and alternative solutions to problems
Initiative
The degree to which the employee independently performs and accomplishes assignments.
- Requires minimal supervision
- Sees and acts upon opportunities
- Independently contributes ideas and projects
- Promptly undertakes problems and devises solutions
- Acts independently within established guidelines
Interpersonal Relations
The degree to which the employee shows understanding and sensitivity to needs and problems of others.
- Actions are intended to calm, diffuse, and be helpful
- Interacts positively with a variety of people in different situations
- Accepts and acknowledges suggestions from others
- Works cooperatively and effectively with others to achieve unit goals
Management Skills
Extent to which employee demonstrates effective management abilities and overall results.
- Effectively sets goals and establishes priorities
- Improves work methods
- Achieves expected results
- Plans and administers budgeted funds
- Implements cost-saving procedures, expense control, etc.
Planning & Organizing
The extent to which the employee plans, organizes and implements tasks or programs.
- Demonstrates effective use of time and facilities subject to their control
- Meets deadlines
- Maintains a clear grasp of daily tasks
- Prioritizes duties in a manner consistent with organizational objectives
- Effectively manages tasks or program assignments including follow-through and delegation
Problem Solving & Decision Making
Degree to which employee demonstrates ability to clearly isolate, define and seek solutions to problem areas.
- Effectively identifies & evaluates alternative solutions
- Makes decisions consistent with skills and experience
- Recognizes decisions that have to be deferred until all pertinent facts are gathered and analyzed
- Flexible in modifying decisions
Productivity
Degree to which the employee produces the expected quality and quantity of assignments.
- Attains conclusive measurable results
- Maintains control and work pace
- Completes assignments on time and to specifications
Quality of Work
The ability to set high standards for own personal performance; strive for quality work; put forth extra effort to ensure quality work.
- Develops and implements new solutions, procedures and concepts
- Demonstrates accuracy, thoroughness, and reliability
- Shows organization and completeness
- Pays attention to detail
- Consistently delivers what is required when required
Quantity of Work
The volume of work produced by the employee, along with his or her speed, accuracy and consistency of output.
- Accomplishes assigned work in an organized, timely manner
- Alerts appropriate team member if deadlines need to be re-negotiated to accomplish work with higher priority
Resourcefulness
Consider the degree to which employee is a source of supply and support to the department, customers, and/or the organization as a whole.
- Masters difficult situations in a timely and effective manner
- Answers questions and deals with problems effectively and thoroughly
Responsibility
The degree to which the employee demonstrates dependability in work performance.
- Completes work in a timely, capable and reliable manner
- Adheres to instructions
- Maintains regular attendance
Safety
Degree to which employee adheres to safety and health regulations.
- Maintains and observes safety and health standards
- Notifies others when violating safety and health regulations
Stress Tolerance
Degree to which employee's performance demonstrates stability under time and/or interpersonal pressure and opposition.
- Demonstrates composure and good judgment in stressful situations
- Maintains appropriate response and outcomes during encounters and/or periods of high levels of pressure
Time Management
The ability to adhere to one's responsibilities in a timely manner.
- Meets deadlines
- Manages multiple tasks with accuracy and efficiency
Work Habits
The manner in which an employee conducts his or herself in the working environment.
- Displays professionalism
- Demonstrates effective time management skills
- Shows positive attitude
- Maintains regular attendance
- Meets productivity standards

TEAM BASED FACTORS

Consensus Building
The extent to which the employee builds and maintains work relationships and contacts needed to effectively address problems and opportunities associated with their position.
- Actively resolves workplace conflicts
- Willingly undertakes assigned projects
- Supports organizational goals and endeavors
Teamwork
The degree to which the employee works well in a team setting.
- Interacts and exchanges idea
- Observes the abilities and ideas of fellow team members
- Works fairly and attempts to share an equal work-load with others
Working with Others/Cooperation
Extent to which employee works cooperatively with customers, co-workers and the public.
- Gains confidence and trust of others
- Recognizes strengths and limitations of self and others
- Exhibits appropriate sensitivity to others' feelings
- Focuses on performance rather than personality in relating to others

Facts [+]

Morning Star is a tomato processing company based in California, with revenues of $700 million and over 400 employees. These unremarkable facts would not qualify for a cover story in Harvard Business Review by management guru Gary Hamel (December 2011). What makes the company remarkable is that it has no bosses, titles or promotions.

A key element in Morning Star's model is what is called the Colleague Letter of Understanding (CLOU). Every employee negotiates his CLOU with all those affected by his work. This letter sets out what each employee is to accomplish in a given year. Similarly, the company's 23 business units negotiate CLOUs with each other.

Staffing decisions are made entirely by colleagues working together. There are no promotions: people take on greater responsibilities after persuading their colleagues they can deliver. Disputes are settled via discussion, mediation or decisions taken by groups of six people. Performance is measured through feedback from colleagues on one's CLOU. Compensation is decided through elected compensation committees.

SUPERVISORY FACTORS

Cost Effectiveness
Extent to which employee seeks best use of materials, equipment, and staff to maximize efficiency and effectiveness.
- Uses effective materials to enhance department and/or job performance
- Establishes budget and/or functions within the budget
Delegation & Supervisory Skills
The extent to which the employee shows the ability to effectively authorize work and supervise subordinates.
- Clearly defines responsibilities and authority limits of subordinates
- Makes effective assignments to subordinates based upon demonstrated skills and knowledge
- Motivates employees to think and work independently
- Recognizes individual capabilities and assigns work accordingly
- Counsels employees in both positive and negative circumstances
- Appraises performance and individual contributions
Development of Subordinates
Consider the employee's ability to effectively evaluate skills, knowledge, aptitudes, interests and developmental needs bearing on individual and group work performance.
- Develops and implements or assures appropriate training or development plans and programs
- Provides appropriate support for employee to reach his/her potential and goals
Leadership
Consider the employee's ability to direct the operations, activity and performance of others.
- Gives direction without conflict
- Creates environment that guides employees to accomplish unit and individual goals
Performance Appraisals
- Provides informal performance feedback on a regular basis
- Acknowledges good performance and discusses performance problems
- Prepares precise written annual evaluations
Staff Development
Degree to which employee provides opportunities to challenge subordinate's capabilities and develops the knowledge and skills necessary for career development.
- Identifies training programs to improve subordinate's performance
- Defines and communicates standards of performance and assists employees in achieving these standards
- Encourages and supports staff participation in job related activities
Supervising Staff Relations
Consider the extent to which the employee effectively oversees and facilitates staff.
- Shows fairness and impartiality in interactions
- Demonstrates interest in employee welfare
- Elicits staff input where feasible
- Responds to staff suggestions and complaints in a serious, sensitive, and timely manner
- Facilitates staff adaptability
- Anticipates staff problems and takes preventive measures
- Resolves disputes among employees
- Handles corrective discipline and employee grievances

1.Rating Scales Method

Rating Scales Method is commonly used method for assessing the performance of the employees and well-known traditional method of performance appraisal of employees. Many corporations and companies example in the country India, telecommunications company likely airtel and US IT companies like Dell Corporation are using this method for evaluating the employees and subsequently take decisions on concerned employee.

Depending upon the job of employee under this method of appraisal traits like attitude, performance, regularity, accountability and sincerity etc,are rated with scale from 1 to 10. 1 indicates negative feedback and 10 indicates positive feedback as shown below.

Attitude of employee towards his superiors, colleagues and customers

Extremely Excellent

poor

Regularity in the job

Extremely outstanding

poor

Under this method of performance appraisal, employee may be assessed by his superiors, colleagues, subordinates or sometimes by his customers which all depends on nature of the company or job which is added where the employee. Appraiser is a person who appraises employee will give rating for every trait given by marking or choosing number basing on his observation and satisfaction. ultimately all numbers chosen or marked will be added to determine highest score gained by employee. Employee who scored more points will be treated as top performer following descending scored employees will be treated as low performer and the least scored employee will be treated as non-performers.

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

Under this method, the rater is asked to express the strong as well as weak points of the employee’s behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors:

Job knowledge and potential of the employee;
Employee’s understanding of the company’s programmes, policies, objectives, etc.;
The employee’s relations with co-workers and superiors;
The employee’s general planning, organizing and controlling ability;
The attitudes and perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitations:

It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will be evaluated more favorably then other employees.
Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays.
The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point of the firm, because the time of the evaluator (supervisor) is costly.

3. RANKING METHOD
How do we use the ranking method? Under the ranking method, the manager com-pares an employee to other similar employees, rather than to a standard measurement. An offshoot of ranking is the forced distribution method, which is similar to grading on a curve. Predetermined percentages of employees are placed in various performance categories, for example, excellent,above average, average, below average, and poor,. The employees ranked in the top group usually get the rewards (raise, bonus, promotion), those not at the top tend to have the reward withheld, and those at the bottom sometimes get punished. In Self-Assessment and Skill Builder 8-1, you are asked to rank the performance of your peers.

Why and when do we use the ranking method? Managers have to make evaluative decisions, such as who is the employee of the month, who gets a raise or promotion, and who gets laid off. So when we have to make evaluative decisions, we generally have to use ranking. However, our ranking can, and when possible should, be based on other methods and forms. Ranking can also be used for developmental purposes by letting employees know where they stand in comparison to their peers—they can be motivated to improve performance. For example, when one of the authors passes back exams, he places the grade distribution on the board. It does not in any way affect the current grades—but it lets students know where they stand, and he does it to motivate improvement.

4. PAIRED COMPARISON

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

5. CRITICAL INCIDENTS METHODS

This technique of performance appraisal was developed by Flanagan and Burns.
The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers’ performance. An example of a good critical incident of a sales assistant is the following:

July 20 – The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers’ problem.

On the other hand the bad critical incident may appear as under:

July 20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager’s call thrice. He is lazy, negligent, stubborn and uninterested in work.

This method provides an objective basis for conducting a thorough discussion of an employee’s performance. This method avoids recency bias (most recent incidents get too much emphasis). This method suffers however from the following limitations:

Negative incidents may be more noticeable than positive incidents.
The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session.
It results in very close supervision which may not be liked by the employee.
The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it.

6. CONFIDENTIAL REPORT SYSTEM

Confidential report system is well known method of performance appraisal system mostly being used by the the Government organisations. In this method of appraising system, subordinate is observed by his superiors regarding his performance in the job and on his duties done. Thereafter Superior writes confidential report on his performance, mainly on his behaviour in the organisation and conduct and remarks if any. confidential reports will be kept confidential and will not be revealed to anyone and finally confidential reports will be forwarded to the top management officials for taking decision against person on whom confidential report has made. Confidential reports are the main criteria for promoting or transferring of any employee mainly in the government sector. All governmental organisations example judiciary, police Department and other government departments in the India are using confidential reports method as a tool to know about the employee and to take any decision connecting to him.

Procedure of confidential report system

The superiors who appraises their subordinates performance, behaviour and other key issues will be kept in the form of writing on paper, which is called as confidential report. Confidential report should not be sent openly on a paper, it must be kept in a sealed cover to send it to decision-making authorities. Only authorised persons are allowed to open the sealed covers which consists of confidential reports. Confidential reports shall not be handed over in loose sheets to the subordinates.

Key factors assessed in Confidential Report writing

Character and conduct of an employee
Absenteeism of an employee
Knowledge of an employee
His nature and quality of work
Punctuality of employee
Unauthorised absenteeism or leave without permission
Behaviour of an employee with colleagues, superiors and with public
Ability of supervision and controlling
His/her integrity and honesty
If any complaints against employee

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

Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist.

Is the employee really interested in the task assigned? Yes/No

Is he respected by his colleagues (co-workers) Yes/No

Does he give respect to his superiors? Yes/No

Does he follow instructions properly? Yes/No

Does he make mistakes frequently? Yes/No

8. GRAPHIC RATING SCALE

Example of Graphic Rating Scales Method

Performance Trait	Excellent	Good	Average	Fair	Poor
Attitude	5	4	3	2	1
Knowledge of Work	5	4	3	2	1
Managerial Skills	5	4	3	2	1
Team Work	5	4	3	2	1
Honesty	5	4	3	2	1
Regularity	5	4	3	2	1
Accountability	5	4	3	2	1
Interpersonal relationships	5	4	3	2	1
Creativity	5	4	3	2	1
Discipline	5	4	3	2	1

This is the very popular, traditional method of performance appraisal. Under this method, core traits of employee pertaining to his job are carefully defined like Attitude, Knowledge of Work, Managerial Skills, Team Work, Honesty, Regularity, Accountability, Interpersonal relationships, Creativity and Discipline etc. Theses traits are allotted with with numerical scale to tabulate the scores gained by appraisee (employee) in performance assessment relating to his job by appraiser (employer) and sum-up to determine the best performer. Appraiser ticks rating of particular trait depending upon his endeavor in his job. Score vary form employee to employee depending up on his performance levels and endeavor in his job.

This method is popular because it is simple and does not require any writing ability. The method is easy to understand and use. Comparison among pairs is possible. This is necessary for decision on salary increases, promotion, etc.

Companies like DELL, Maruthi Suzuki India Ltd and airtel are using this graphic rating scale method to appraise performance of their employees in there jobs and to take decisions regarding the matters concerned to employees

9. FORCED DISTRIBUTION

The system is 17 to 18 years old, and most big organisations started waking up to this form of performance appraisal in the late '90s. The bell curve is nothing but a graphical representation of the fact that everybody's performance is not the same. Some employees will be outstanding, some average, and others at the bottom.
Irrespective of whether or not the bell curve is the most appropriate representation of performance or human behaviour, some believe that it is the most viable option, especially in services-driven sectors, which have large workforces.

The system requires the managers to evaluate each individual, and rank them typically into one of three categories (excellent, good, poor). The system is thought to be relatively widely-used, but remains somewhat controversial due to the competition it creates, and also the reality that not all employees will fit neatly into one of the categories and might end up in a category that does not reflect their true performance. One of the first companies to use this system was General Electric, in the 1980s.

--------Businessdictionary.com

In India, big Indian employers including Infosys, Wipro, ICICI Bank and Aditya Birla Group evaluate lakhs of employees on the basis of this system.

Back home, big Indian employers including InfosysBSE -0.47 %, WiproBSE 0.63 %, ICICI BankBSE 0.33 % and Aditya Birla Group evaluate lakhs of employees on the basis of this system.

Read more at:
http://economictimes.indiatimes.com/articleshow/36119596.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

The top-ranked employees are considered “high-potential” employees and are often targeted for a more rapid career and leadership development programs.

In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.

Facts: many companies have been discarding this age-old appraisal system since it has got few drawbacks like lack of transparency understanding the process of assessment of employee, some people believe that this method treats employees as machines and some feel that this system doesn't fit to present trend of management. Companies which have dropped this method of addressing system are Microsoft, Google and Adobe.

ASSESSMENT CENTRES

An assessment centre is a place to evaluate an individual potentiality and performance, so as to position he/she in the core functional areas. normally, organisations outsource assessment centres instead of making them by their own.

[This method of performance appraisal is being opted by the RBI (Reserve Bank of India) for assessment of its officers]

An assessment center typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees.

Nearly 30% companies seek assessment center services while moving an employee from executive position to managerial position. 20% companies said they use the center's services when seeking a position on senior management level.

As per the TJinsite, the premium research website promoted by TimesJobs.com survey, more than 80% of the surveyed employers predict an increased use of assessment centres in near future because of their expertise and unbiased in assessing an individual fit and biggest limitation comes from the lack of skilled assessors to perform the assessment task effectively.

Facts [+]

AssessPeople Ltd. is a workforce assessment company, based at Chennai, India, and having wings at all metros across country. They are a pioneer in India to use internet as a platform to design, administer, and provide the results to organizations.

What they do?

Pioneer in workforce assessment services since 1999
Assessment services for

High School Students to Senior Managers
Individual and team assessments

Assessment of aptitudes, abilities, skills, behaviours, competencies, knowledge, morale, attitude and work values
Multilingual Assessments
Biometrics, Photo, Phone2web
End2End Assessments
Organisation-wide Surveys

BEHAVIORALLY ANCHORED RATING SCALES

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

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

A behaviorally anchored rating scale is an employee appraisal system where raters distinguish between successful and unsuccessful job performance by collecting and listing critical job factors. These critical behaviors are categorized and appointed a numerical value which is used as the basis for rating performance.

An Example of Behaviorally Anchored Rating Scale (BARS)

Performance	Points	Behavior
Extremely good	7	Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over te country.
Good	6	Can expect to initiate creative ideas for improved sales.
Above average	5	Can expect to keep in touch with the customers throughout the year.
Average	4	Can manage, with difficulty, to deliver the goods in time.
Below average	3	Can expect to unload the trucks when asked by the supervisor.
Poor	2	Can expect to inform only a part of the customers.
Extremely poor	1	Can expect to take extended coffee breaks and roam around purposelessly.

HUMAN RESOURCE ACCOUNTING METHOD

Human Resource Accounting is a method to measure the effectiveness of personnel management activities and the use of people in an organization.HRA is the process of Assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses.

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

MANAGEMENT BY OBJECTIVES

The definition of MBO, as expressed by its foremost proponent, Dr. George S. Odiorne,

“Management by objectives is a process whereby the superior and subordinate managers of an organisation 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.”

Much of the initial impetus for MBO was provided by Peter Drucker (1954) and by Douglas McGregor (1960). Drucker first described management by objectives in 1954 in the Practice of Management. Drucker pointed the importance of managers having clear objectives that support the purposes of those in higher positions in the organisation. McGregor argues that by establishing performance goals for employees after reaching agreement with superiors, the problems of appraisal of performance are minimised. MBO in essence involves the setting out
clearly defined goals of an employee in agreement with his superior. Carroll and Tosi (1973), in an extensive account of MBO, note its following characteristics:

The establishment of organisational goals.
The setting of individual objectives in relation to organisational goals.
A periodic review of performance as it relates to organisational goals. Effective goal-setting and planning by top management.
Organisational commitment.
Mutual goal-setting.
Frequent individual performance reviews.
Some freedom in developing means of achieving objectives.

MBO is, thus, a method of mutual goal-setting, measuring progress towards the goals, taking action to assure goal attainment, feedback, and participation. It is a resultoriented philosophy, enabling an employee to measure progress toward a goal which the employee often has helped to set. In the goal-setting phase of MBO, a superior and subordinate discuss job performance problems and a goal is agreed upon. Along with mutual goal-setting, a major component of MBO is the performance review session between the superior and subordinate, which takes place regularly to evaluate progress towards specified goals.

The key features of management by objectives are as under:

Superior and subordinate get together and jointly agree upon .the list the principal duties and areas of responsibility of .the individual’s job.
The subordinate sets his own short-term performance goals or .targets in cooperation with his superior.
They agree upon criteria for measuring and evaluating .performance.
From time to time, as decided upon, the superior and .subordinate get together to evaluate progress towards the .agreed-upon goals. At those meetings, new or modified goals .are set for the ensuing period.
The superior plays a supportive role. He tries, on a day-to-.day basis, to help the subordinate achieve the agreed upon .goals. He counsels and coaches.
In the appraisal process, the superior plays less of the .role of a judge and more of the role of one who helps the .subordinate attain the organisation goals or targets.

The MBO process

MBO as a mutual goal setting exercise is most appropriate for technical, professional, supervisory, and executive personnel. In these positions, there is generally enough latitude and room for discretion to make it possible for the person to participate in setting his work goals, tackle new projects, and discover new ways to solve problems. This method is generally not applied for lower categories of workers because their jobs are usually too restricted in scope. There is little discretionary opportunity for them to shape their jobs.

MBO may be viewed as a system of management rather than an appraisal method. A successful installation of MBO requires written mission statements that are prepared at the highest levels of top management. Mission statements provide the coherence in which top-down and bottom-up goal setting appear sensible and compatible. MBO can be applied successfully to an organisation that has sufficient autonomy, personnel, budget allocation, and policy integrity. Managers are expected to perform so that goals are attained by the organisation. Too often MBO is installed top-down in a dictatorial manner with a little or no accompanying training. If properly implemented, it serves as a powerful and useful tool for the success of managerial performance.

MBO is a tool that is inextricably connected with team building so that the work commitment of team members can be increased and their desire to excel in performance can be inspired. It is important to have effective team work among a group of managers or a group of subordinates. The group of employees or subordinates must be looked upon as a team that needs to be brought together. Goals should be set by manager-subordinate pairs, and also by teams. The basic superior subordinate relationship in an organisation is in no way undermined in this concept of team goal setting. Lines of responsibility, authority, and accountability remain clear.

Customer feedback method

This method is truly one of the modern methods of performance appraisal system. Customer feedback method is used, especially for sales staff who deal with sales activity in the organisation. Under this method of appraisal system, customer feedback is directly linked with employee performance. This method of assessment could be unbiased and reliable since customers who are outsiders may give correct judgement about employee performance than the insiders who are superiors.

Companies like Cognizant and Wipro software solutions are using customer feedback method to assess the performance of their sales staff in order to hike salaries.

Some industry experts say placing a higher weightage on customer feedback may fail to motivate employees because customer feedback may vary from customer to customer. Depending on the current state of mind, psychology and perception of the customers may give different feedback for same degree of sales service.

The 360 degrees Performance Appraisal method was first used in the 1940s. Analogous to the multiple points on a compass, the 360 method provides each employee the opportunity to receive performance feedback from his or her supervisor, peers, staff members, co-workers and customers.

360-degree feedback or multi-source feedback is an appraisal or performance assessment tool that incorporates feedback from all who observe and are affected by the performance of a candidate.

FOR WHICH CATEGORY OF EMPLOYEES IS THIS TOOL USED?

Usually, this tool is used for employees at middle and senior level. The complexity of their roles enables the organisation to generate sufficient data from all stakeholders for a meaningful assessment.

WHICH ORGANISATIONS USE THIS TO ASSESS EMPLOYEE PERFORMANCE?

Most organisations that focus on employee development use the 360-degree tool to assess performance and potential of staff and enable the employees to map their career path based on the feedback. Organisations take 360-degree feedback about an employee before taking a major decision about the professional's career.

The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree review."

360 degree 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. this method is being used in the (MARUTHI SUZUKI Motors and HCL)

WHO ARE THE STAKEHOLDERS IN DOING 360-DEGREE ASSESSMENT?

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee.360 degree appraisal has four integral components:

Self appraisal
Superior’s appraisal
Subordinate’s appraisal
Peer appraisal.

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

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

Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have h

igh employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree 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.

Advantages of 360 degree appraisal

Offer a more comprehensive view towards the performance of employees.
Improve credibility of performance appraisal.
Such colleague’s feedback will help strengthen self-development.
Increases responsibilities of employees to their customers.
The mix of ideas can give a more accurate assessment.
Opinions gathered from lots of staff are sure to be more persuasive.
Not only manager should make assessments on its staff performance but other colleagues should do, too.
People who undervalue themselves are often motivated by feedback from others.
If more staff takes part in the process of performance appraisal, the organizational culture of the company will become more honest.

Disadvantages of 360 degree appraisal

Taking a lot of time, and being complex in administration
Extension of exchange feedback can cause troubles and tensions to several staff.
There is requirement for training and important effort in order to achieve efficient working.
It will be very hard to figure out the results.
Feedback can be useless if it is not carefully and smoothly dealt.
Can impose an environment of suspicion if the information is not openly and honestly managed.

Who should conduct 360 degree performance appraisal?

Subordinates.
Peers.
Managers (i.e. superior).
Team members.
Customers.
Suppliers/ vendors.
Anyone who comes into contact with the employee and can provide valuable insights and information.

Facts [+]

Google, world's giant software corporation emphasises a 360-degree appraisal where employees are assessed by peers, bosses and subordinates.

How to use 360 feedback to your advantage

Few modern management practices show as much promise and as few results as 360 feedback. Companies often look to 360s to improve a leader's behaviours, provide insight during leadership development courses and help build more effective teams.

They believe that 360 feedback will either change their managers' behaviours or at least increase those managers' motivation to change.

Unfortunately, those expectations are unrealistic and not supported by science. In fact, given what the academic research on feedback tells us, we should be surprised that today's 360 processes work at all! Let's start by addressing some erroneous assumptions we have about feedback:

Feedback does not directly lead to change: Many organisations believe handing a manager a 360 report will cause them to improve their behaviours with no additional action required. Research says, when feedback is focused on our behaviours, rather than our skills, our willingness to change drops dramatically.

Gaps between self perceptions and others' perceptions do not motivate change: It's a commonly held belief that if we see a gap between how we perceive ourselves and how others perceive us we will be motivated to close that gap.

In reality, research is clear that when we are confronted with that perception gap we diligently try to excuse it or explain it away. We aren't resisting feedback - we're experiencing "cognitive dissonance." Our minds work very hard to ensure that our carefully developed, largely positive self-image is preserved.

More information does not create better results: Typical 360 reports have 50+ pages filled with charts, graphs, norms, icons and comments. It's nearly impossible for a manager to tell (without hours of help from a coach or HR leader) which items are most important to focus on and how to improve those behaviours.

Afeedback experience that leaves us confused or angry creates a huge barrier to taking action.

MAKE IT EASY TO USE
Making 360s work means making it as easy as possible for the manager to take action on the results. Here are three steps that will help guarantee that managers will follow the advice in the 360: Don't rate - guide: The typical 360 rates managers as being good or bad at various behaviours. This doesn't help anyone change. Instead, use a scale that tells a manager to "Do More" or "Do Less" on that particular behaviour.

Focus only on the top three behaviours: Busy managers don't have time to search through confusing 360 reports to identify their priorities for change. The first page of their 360 report should list the vital few actions for them to improve.

Tell the manager exactly how to change:A well-designed 360 report should include specific "start, stop or continue" suggestions from their raters that describe exactly how the manager should change those vital few behaviours.

Don't include norms or self-ratings: We do not like to be compared to other people, especially when the comparison isn't favourable. Self-ratings and external norms only increase our resistance to change if we score below our expectations but don't motivate us further if we score above our expectations.

DRIVE ACCOUNTABILITY
The "old school" of human resource management used to insist that 360s were purely for development and that they should never be used to evaluate managers or help make organisational decisions. If we believe that how managers behave is important, then ignoring the best data we have about a manager's behaviours seems ridiculous. Properly gathered 360 data should be considered as one of many data points when making decisions about new roles, promotions or development.

When managers know their behaviors have consequences, they'll be much more likely to take action to change them. Getting 360 feedback doesn't have to be painful or unhelpful. By focusing on the core science and presenting information in a practical and easy-to-understand way, 360s can help managers to make important behaviour changes quickly and easily.

HELLO STUDENT

Monday 13 November 2017

Describe In Detail What Is Performance Appraisal And Process And Method?

An Example of Behaviorally Anchored Rating Scale (BARS)

Monday 13 November 2017

Describe In Detail What Is Performance Appraisal And Process And Method?

History & origin of Performance Appraisal

An Example of Behaviorally Anchored Rating Scale (BARS)