Performance Appraisal Unit 7 Confidential Performance evaluation Performance

Performance Appraisal Unit 7 Confidential

Performance evaluation • Performance evaluation is the personnel activity by means of which the enterprise determines the extent to which the employee is performing the job effectively. • Formal performance evaluation is a system set up by the enterprise to regularly and systematically evaluate employee performance. Confidential

Types of Appraisal Methods • • The three categories used are Individual Evaluation Methods; Multiple Person Evaluation Methods Other Methods Confidential

Individual evaluation Methods • • Graphic rating scale Forced choice Essay evaluation Management by objectives Critical incident technique Checklists and weighted checklists Behaviourally anchored rating scales Confidential

Multiple-person Evaluation Methods • Ranking • Paired comparison • Forced distribution Confidential

360 Degree Appraisal • Feedback sources consists of supervisors, peers, subordinates, customers, and one's self. • It is not necessary, or always appropriate, to include all of the feedback sources in a particular appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will differ with each source. Confidential

MBO: Management by Objectives • MBO is a very common industry practice used to review employees at the workplace. • These objectives are popularly called by the following names: 1. KRA-key result areas 2. KPA -key performance areas 3. Targets 4. Commitments Confidential

SMART framework • • • Specific Measurable Achievable Results oriented Time bound Confidential

Benefits of Performance Appraisal • Recognition satisfies human need for esteem by others and for self-esteem. • Awards may be given in the form of articles, banquets honouring certain individuals, certificates and plaques, too, may be given, or the employee's name may be entered on the Honours Board. Confidential

Incentive Scheme • According to Burack and Smith"an incentive scheme is a plan or programmes to motivate individual or group performance. An incentive programme is most frequently built on monetary rewards (incentive Ray or a monetary bonus), but may also include a variety of non-monetary rewards or prizes. " Confidential

Incentive Scheme • An incentive plan has the following important features: • An incentive plan may consist of both 'monetary' and 'non- monetary' elements. • The timing, accuracy and frequency of incentive are the very basis of a successful incentive plans. • It should be properly communicated to the employees to encourage individual performance, provide feedback and encourage redirection. Confidential

Promotion • A promotion may be defined as an upward advancement of an employee in an organization to • another job, which commands better pay/wages, • better status/prestige, and higher opportunities/ challenges, • responsibility, and authority, • better working environment, hours of work and facilities, and • a higher rank. Confidential