Performance Appraisal Sahara group
Content
PROJECT REPORT ON
PERFORMANCE APPRAISAL AT SAHARA GROUP
UNDER THE GUIDANCE OF: Mr. Subrata Chowdhury S!"or Co!#u$ta!t %P"t!y &ow# &u#"!## I!#"'ht(
SU&MITTED &): Nha Shar*a
ROLL NO. +,--++-,/ S01"a$"2at"o!: PGPM3HR
INSTITUTE OF MANAGEMENT TECHNOLOG) %CENTRE FOR DISTANCE LEARNING( GHA4IA&AD
E5ECUTI6E SUMMAR) Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every ever y manager’s responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. “eop “e ople le are are ou ourr most most va valu luab able le asset asset!! is a clic clich" h",, #hic #hich h no memb member er of an any y se seni nior or management team #ould disagree #ith. $et, the reality for many organizations are that their people remain under valued, under trained and under utilized. erformance %ppraisal is the process of assessing the performance and progress of an employee or a group of employees on a given &ob and his ' their potential for future development. t consists of all formal procedures used in the #oring organizations to evaluate personalities, contributions and potentials of employees. erformance %ppraisal is a crucial activity for organizations that are looing for gro#th and profit maximization maximizat ion in this ever*increasing ever* increasing competitive environment. +his pro&ect report is a revie# based on theory as #ell as research and experience. +hee essen +h essenti tial al co comp mpon onent entss of an ef effec fecti tive ve pe perf rfor orma manc ncee ap appr prais aisal al syst system em co consi nsist st of understanding it’s oundations and the essential steps that lay the foundation. t is also necessary to recognize the -b&ectives and enefits of this system. or benefit realization it is necessary to dentify /ey Result %reas (/R%s) i.e. 0oal 1etting and monitor resulting erfo erform rman ance ce so that that a mean meanin ingf gful ul relat relatio ions nshi hip p be bet# t#ee een n pe perfo rform rman ance ce,, re#ar re#ard d an and d development of re2uired sills, through counseling 3 if re2uired, can be established. inally lot of brainstorming is re2uired to be done to devise a sound appraisal system by evaluating available availa ble techni2ues techni2ues and implementat implementation ion processes. processes. -ne must remember that performance %ppraisal is an inexact, human process and it is 2uite a challenge to actually implement it successfully. erformance appraisal system has gone through through a sea change ov over er a period of time. n the beginning the process #as non*transparent and the employee #as ept in dar about his performance. 4o systematic exercise #as done and the entire process #as arbitrary. +hese earlier performance appraisal methods are discussed.
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+he current processes of performance appraisal involve self*appraisal by the employee too. Thu# th #y#t* ha# 'o! throu'h th 0ha# o7 !o!3tra!#0ar!1y to tra!#0ar!1y. n
the transparent system of appraisals appraisee is taen into confidence and the #hole process is interactive. Revie# process #ith employees is designed in such a #ay that employees become a#are of #hat is expected from them, receive timely feedbac and recogni reco gnitio tion n for their their achiev achieveme ements nts.. 1ome 1ome of these these relati relatively vely transpa transparen rentt method methodss are %pprai %pp raisal sal 5iscus 5iscussion sion*5i *5ialo alogue gue 6ethod 6ethod of %pprais %ppraisal, al, 7ompet 7ompetency ency ased ased %pprai %ppraisal sal 1ystem, otential %ppraisal, erformance and 5evelopment lanning. 8hile ne# frontiers to performance appraisal include 6anagement by -b&ectives, 9:;< eedbac and alanced 1cor 1corec ecard ard.. n th this is techn technol olog ogy y dr driv iven en era ap appr prai aisal salss to too o ca can n be do done ne el elec ectro troni nical cally ly. eA00ra"#a$ system #ith its salient features, benefits and process has been covered. e# blan formats of different appraisal methods and processes have been included as A!!8ur in the report to sho# ho# today’s successful organizations are trying to assess
and evaluate their employee performance. have taen a sample sample size of =;; to conduct conduct the survey. t has been found that employees employees are a#are about the various methods adopted for appraising the performance. >mployees are not fully satisfied #ith the feedbac and #ith the performance appraisal is being done.+ don e.+hey hey #ant #ant more more transp transparen arency. cy. rom rom the data data it is clear clear that that positi positive ve feedbac feedbac encourages encou rages the employees employees to perform perform better #hile negative feedbac demoralizes demoralizes them. t should be noted that the appraisal form for each &ob position should be different as each &ob has different no#ledge and sill re2uirements. +here should not be a common appraisal form for every &ob position form position in the organiza organizatio tion. n. +he &ob and role expect expected ed from the employees should be decided #ell in advance and that too #ith the consensus #ith them. +ran +ransp spare arenc ncy y in into to th thee syste system m shou should ld be en ensu sure red d th thro roug ugh h th thee di discu scussi ssion on ab abou outt th thee employee’s performance #ith the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
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TA&LE OF CONTENTS CHAPTER3-
CHAPTER39
INTRODUCTION
7oncept of performance appraisal?
7hange?
oundations of performance appraisal
@ob profile
-b&ectives?
>ffective appraisal process
+ype of goals?
5esigning an appraisal process
RE6IE O OF F LITERATURE
6ethods of appraisal
7ompetency based appraisal system
9:;A feedbac
+he steps of implementation are
CHAPTER3
RESEARCH METHODOLOG)
CHAPTER3;
DATA ANAL)SIS
CHAPTER3/
CONCLUSION A AN ND S SU UGGESTION
CHAPTER3<
ANNE5URE
CHAPTER3=
Buestionnaire
&I&LIOGRAPH)
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CHAPTER3INTRODUCTION
SAHARA GROUP 1ahara ndia ari#ar is a ma&or entity on the corporate scene having diversified business in inte tere rests sts th that at in incl clud udee ina inanc nce, e, n nfr frast astru ruct ctur uree C Hous Housin ing, g, 6edia 6edia C >nte >ntert rtai ainm nment ent,, 7ommodity 1ales #ith 1ervices and Retail 7hain, 7onsumer roducts, 6anufacturing and nformation +echnology. Buality is our essence and #e, at 1ahara ndia ari#ar, have al#ays stressed on the Bualitative aspect. 7onse2uently in this run for 2uality, 2uantity has al#ays pursued us. 8e loo for#ard to reaching the zenith and reaffirm our commitment to the process of sound nation*building.
7ore 7ommitments >motion?
>motion is in erformance of gen enu uine duties to#ards the loved ones
primarily in their benefit, from their point of vie#. >6-+-4 is +H> />$ that generates the re2uired energy and enthusiasm for desired 2uality performance.
5i 5isc scip ipli line ne??
+he +he enth enthus usia iast stic ic obedi obedien ence ce of la#s la#s and order orders, s, #hich #hich are given given by the
rightful authority.
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5uty?
+he ent enthusiastic obe obedience of la la#s and and ord orders, #hi #hich are are giv given by ou our
7-417>47>.
4o 5iscrimination?
4ever should #e discriminate in any of our actions, reactions,
attitudes, attitu des, decisions, conclusions, conclusions, in any of our expressions expressions #hile caring for the six healths healths of othe otherr hu huma man n be bein ings gs,, na name mely ly ph phys ysica ical, l, mate materia rial, l, ment mental, al, emot emotio iona nal, l, soci social al an and d professional healths.
0ivee Resp 0iv Respect ect?? +o defini definitely tely mae others others feel impor importan tantt and respect respected ed by giving giving sincere sincere regard to othersD feelings, reasonable #ishes C thoughts #ith an open and receptive mind and #armth.
1elf*Respect?
+o dev develop a sense of res respect for for oneself in oth othersD mind, i.e. to
generate genuine C #arm feelings for oneself among others on a continuous basis.
+ruth?
6eans total transparency in action, reaction, attitude and all other
expressions and the conviction to follo# the right course.
7oll 7o llect ectiv ivee 6ater 6ateria ialis lism? m?
6ean 6eanss to to pro progr gres esss and and pro prosp sper er to toge geth ther er fo forr col colle lect ctive ive shari sharing ng
and caring and not individually or for a select group.
Reli Re ligi gion on??
+her +heree is a relig religio ion n highe higherr than than rel relig igio ion n itsel itselff * it is is 4%+ 4%+-4 -4%E %E+ +$. $. 8e 8e
may practice our religion in the confines of our homes, but outside, #e should be ndians
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an and d on only ly ndi ndian ans. s. 4ati 4ation onal ality ity is th thus us ab abov ovee re reli ligi gion on bu butt HF6% HF6%4/ 4/4 45 5 is ab abov ovee 4ationality.
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PHILOSOPH) SAHARA INDIA PARIAR>S PHILOSOPH) 3 ?Collective ?Collective Materialism? Materialism?
n any human relationship, it becomes imperative to tae into consideration the materialistic aspect of life * #e do so but by giving it second priority. +he first priority is given to emotional aspect and #ith perfect blending of materialism #ith emotionalism, results in continuous collective gro#th for collective sharing and caring, that gives an impetus to our philosophy * GCOLLECTIVE GCOLLECTIVE MATERIALISM G. G. &HARTI)ATA
+here is a religion higher than religion itself * it is the 45%4 4%+-4%E+$. +he s#irl of the +ricolour never fails to move a 1ahara 8orer. or #e believe, it is the great feeling that transcends all castes, creed and sects. harat arva is 7elebrated on every :th of @anuary and =Ith of %ugust #ith a spirit and gaiety rarely seen.t comes from our heart.
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"Saharasri" Subrata Roy Sahara Managing Worker & Chairman Sahara India ari!ar n business profit earnings and overall gro#th of business get the highest priority and are certainly creditable, but ultimate credibility of business enterprise, particularly of larger ones is in the utilisation of profit, be it for best possible upliftment of its #orforce and for espousing espou sing 1ocial, 4ational 4ational 5evelo 5evelopment pment causes or for rendering rendering services services to manind as a #hole. ulfilling the Bualitative aspect of utilisation of profit, the #orldDs largest family J1ah J1ahar araa ndi ndiaa ari ari#a #arD rD is pr prou oud d to ha have ve reach reached ed to today day ne ne# # ho hori rizo zons ns of gr gro# o#th th an and d development. -n the basis of our philosophy of 7ollective 6aterialism #e have al#ays given importance to the fact that profit earning is the Buantitative aspect #hereas the proper utilisation of profit is the Bualitative aspect. ronically, #e only recognise and get recognised by the Buantitative aspect. , therefore earnestly appeal to one and all in olitics, 6edia, usiness etc. that every action, reaction, selection, appreciation or criticism should be oriented strictly to#ards the
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Bualitative aspect. appeal to anybody and everybody to accord top priority to Bualitative aspect in anything and everything for peaceful, prosperous and progressive co*existence of manind any#here and every#here. +oday, feel proud of the fact that am the 0uardian of the 8orldDs largest family. erhaps, am the #orldDs only person #hose family is so vast, so disciplined, so dedicated and so committed. 1uch a vast family as 1ahara ndia ari#ar has a grand and infinite future and am sure that #e #ill sustain our duty, consciousness, discipline and dutifulness #ith a sense of dedication, as #e have al#ays done in the past, so that together #e could build an ndia full of energy and radiance. Our Ch"7 Guard"a!># C$a###
-ur 7hief 0uardianDs classes for teaching of lifeDs philosophy, the psychological aspect, that is the emotional aspect of life, in other #ords the realities of life are generally =; hour sessions and he must have addressed thousands of such classes. He strongly believes that the chief of any organisation should primarily be a teacher, a guide and a guardian. Sha!t"@ Suh : Sa!tu#ht"
+hrough this boo it is absolutely convincing that the most dominating need of every human is strong security feeling of life, health, material, respect and love and then more material, more respect and more love. K hours * 9:I days all your actions, reactions, planning and all expressions revolve around the above needs and continuous achievement ac hievement of all these depends on you, and you need not depend on others. Maa!3Sa**a!@ At*a#a**a!
>motions are of t#o inds * love and respect. Eove is an inferior emotion #hich has been given by 0od to fulfill your reasonable, unreasonable needs. ut in human society since #e have the thining po#er, respect for others and sense of self*respect are the most superior emotions.
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?Sahara#r"? 3 Subrata Roy Sahara Th Ma! A!d H"# 6"#"o!
He has taled taled about about proble problems ms and proposed proposed the solution solutionss on I social social issues issues namely namely opulation, >ducation, olitical (>lection) system, 6edia C Religion, besides interacting on various aspects of life and professional life. %ccording to him if these five issues are taen care of properly, our beloved country shall be the best in the #orld.
HAT
% commitment of 1ahara ndia ari#ar to the genuine needs and rights of anybody C everybody * e it to a depositor, ne#spaper reader, consumer .... all business associates and 1ahara ndia amily 6embers.
NEED
ndia needs effective consumer protection and protection of #orersD genuine rights. +here are various agencies, promising protection C action. ut no external body can provide &ustice unless the company becomes DBF%E+$ 7-417-F1D 8+H 1+R7+E$ 4517R64%+-4 -E7$ %45 @F1+7> 7-417-F14>11 as its very dominating nature.
MOTTO
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8e not only believe but practice 4- 517R64%+-4, @F1+7> C H0H BF%E+$ * means enthusiastic, productive performance of duty G/%R+%L$%D to#ards the consumerD, #orersD genuine satisfaction.
AIM
+o prov provid idee &ust &ustic icee * be it a matt matter er of the the tini tinies estt impe imperf rfec ecti tion on or in in&u &ust stic icee in ou ourr 7-66+6>4+ * products or services. direct or indirect, short term or long term.
HERE
/indly rush your grievances'suggestions or any 2ueries releated to 1ahara ndia ari#ar to the nearest 1ahara establishment and'or to?
>SAHARA INDIA PARIAR BARTA6)A COUNCIL>
1ahara 1haher, 0omti 4agar, Eucno#*:;=; 8ebsite? ###.sahara.in e*mail? artavyacouncilMsahara.co.in artavyacouncilMh2c.sahara.co.in ax 4o. ? NO=*I*9;=POI +oll ree 4o. ? =P;;*=P;*I;I -1+%0> %45 -+H>R 0>4F4> >Q>41>1 8EE > R>6FR1>5 $ +H> 7-6%4$
Response 8ill 4ever e 5elayed %nd @ustice 8ill 4ever e 5enied
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1ahara ndia ha#an, Eucno#
% night vie# of 1ahara 1haher, Eucno# in all its grandeur
1ahara ndia +o#er, Eucno#
1ahara ndia 7entre, Eucno#
hopal onal -ffice, 1ahara ndia /un&
@aipur onal -ffice, 1ahara ndia 7hambers
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/olata 7orporate -ffice, 1ahara ndia 1adan
atna onal -ffice, 1ahara ndia Lihar
erspective of 1ahara 1tar, 6umbai
5elhi 7orporate -ffice, 1ahara ndia 7omplex
Laranasi onal -ffice, 1ahara ndia /ashi 4ietan
0orahpur onal -ffice, 1ahara ndia 4ietan
Hyderabad onal -ffice, 1ahara 6anzil
Eounge at 7hairman’s -ffice, 1ahara 1haher, Eucno#
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GRATITUDE
8e are indebted to those nation*builders, nation * lovers, guides, visionaries, eminent personalities, artistes, industrialists (#hose photographs are exhibited here) and express our profound respect and gratitude, #ho have inspired us #ith their encouraging thoughts in our assemblies and meetings. 8e have al#ays been encouraged by their proper, valuable and thoughtful revie#s. 8e convey our best #ishes from the innermost core of our hearts to these reno#ned personalities for their continuous contribution to#ards the overall progress of our motherland and human society.
1hri 1ubrata Roy 1ahara, our 7hief 0uardian ... ...#ith 4obel Eaureate Eate 6other +eresa
... #ith His Holiness, +he 5alai Eama
... #ith 1hanaracharya, adriaashram eeth
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... #ith 1pritual 0uru 1hri 1hri ravishanar
... #ith ormer 1hahi mam of @ama 6as&id, 5elhi, Eate %bdullah uhari
... #ith Reno#ned $ogacharya, 1#ami Ram 5ev
... #ith Her >xcellency, resident of ndia, 6rs. ratibha atil
...#ith 5r. 6anmohan 1ingh, Honourable rime 6inister of ndia
... #ith His Royal Highness, rince of 8ales, rince 7harls at london and later in 4e# 5elhi
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INTRODUCTION TO THE TOPIC
erformance erfor mance %ppraisal is the process process of assessing the performance performance and progress progress of an employee or a group of employees on a given &ob and his ' their potential for futu future re de deve velo lopm pment ent.. t co cons nsis ists ts of all fo form rmal al pr proc oced edur ures es us used ed in th thee #or #orin ing g organizations to evaluate personalities, contributions and potentials of employees.
Co!10t o7 Pr7or*a!1 A00ra"#a$:
+he concept of erformance %ppraisal can be explained #ith the analogy illustrated belo#?
→
+hee he +h head ad of th thee e ey y re repr prese esent ntss th thee un uni2 i2ue uene ness ss of th thee empl employ oyee. ee.
4o t#o
employees are alie. →
+he ring represents the management’s re2uirement *the &ob content.
→
+hee shaft +h shaft repres represen ents ts th thee co comm mmun unic icati ation on be bet# t#ee een n th thee empl employ oyee ee an and d th thee company, the transmission of the tas and the response from the performer.
Cha!': Performance appraisal process has gone through the phase of non-transparency non-transparency to transparency. transparency.
n this transparency phase, a performance appraisal can be defined as a structured formal interaction bet#een a subordinate and supervisor, that usually taes the form
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of a periodic intervie# (annual or bi*annual), in #hich the #or performance of the subordinate is examined and discussed, #ith a vie# to identifying #eanesses and strengths as #ell as opportunities for improvement and sills development.
FOUNDATIONS OF PERFORMANCE APPRAISAL
erformance %ppraisal assesses ho# #ell people have been doing their &obs and #hat they must do to be better in their &obs. t deals #ith the content of the &ob and #hat they are expecte exp ected d to achieve achieve in each each aspect aspect of their #or. #or.
ollo# ollo#ing ing are the foundati foundations ons in
erformance %ppraisal process?
.
Job Pro7" Pro 7"$ $ :
@ob description concentrates more on the definition of tass the &obholder has to accomplish. accomp lish. t includes includes details of reporting reporting relationship relationship and normally normally covers covers the overall purpose of the &ob. t indicates ho# an individual’s individual’s &ob #ill contribute contribute to the achievement of ob&ectives of a team or a department and, ultimately the mission of the organization.
II.
Ob1t"#:
%n ob&ective describes something, #hich has to be accomplished. -b&ectives define #hat organizations, functions, departments, teams and individuals are expected to achieve.
+here are t#o types of ob&ectives? i
Work or or O#er O#era ation tiona$ a$ Ob Ob%et %eti' i'es es(( t refers to the results to be achieved or the contribution to be made to the accomplishment of team, departmental and corporate ob&ectives.
ii ii
)e'e )e'e$o $o# #ment menta a$ ob ob%et %eti' i'es es(( t is concerned #ith #hat individual should do and learn to improve their performance and'or their no#ledge, sills and competencies (training and personal development plans).
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.
Co*0t! Co* 0t!1"# 1"#::
7ompet 7om petenci encies es refer to the behavior behavioral al dimensio dimensions ns of a role.
t is the beh behavi avior or
re2uired re2uir ed of people to carry out out their #or satisfactori satisfactorily. ly. 7ompetencie 7ompetenciess are #hat people bring to a &ob in the form of different types and levels of behavior. +hey govern the process aspects of &ob performance.
L.
6a$u 6a $u# # :
ncreasingly, organizations are setting out the core values that they thin should govern the behavior of all their employees. Lalue statements may be prepared #hich de defi fine ne co core re va valu lues es in areas areas such such as care care fo forr cu custo stome mers, rs, co conc ncer ern n fo forr pe peop ople le,, competitiveness, excellence, gro#th, innovation.
THREE ESSENTIAL STEPS FOR EFFECTI6E PERFORMANCE APPRAISAL
+he process of getting to no# the people #ho #or for the organization involves three essential steps viz. tra"!"!'@ a$uat"o! a!d r"w. I.
Tra"!"!':
1uccess 1uc cessful ful tra"!"!' is the implementation of a system in #hich everyone in the #orplace is geared to#ards improvement. t involves a hands on approach in #hich th thee empl employ oyee ee is en enco cour urag aged ed to ev eval alua uate te hi hims msel elff or he herse rself lf un unde derr th thee is made made complete #ith the leadership of the appraiser. 7arefully administering praise coupled #ith constructive criticism eeps the #orforce on its toes. II.
Ea$uat"o!:
+he best methods for employee a$uat"o! are based on results and behavior. 8hile conducting condu cting performance performance appraisal appraisal based on employees’ employees’ characteristic characteristic traits is 2uite co comm mmon on,, th thee re resu sult ltss ar aree of ofte ten n su sub& b&ect ectiv ivee an and d un unsat satisf isfac acto tory ry.. % re resu sult lts*b s*base ased d approach to performance appraisal is by far the cleanest, most ob&ective method of tacling the complex tas of evaluation. t uses a rating system to measure productivity #ithin a given timescale.
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III.
R"w:
+he r"w process process should should,, again, again, employ employ the techni techni2ue 2uess of interac interactivi tivity ty.. efore efore sittin do#n together, together, the appraiser should give the employ employee ee a chance to revie# himself himself or herself. +his not only empo#ers the employee, but also saves a lot of time and possible contention during the actual discussion. nitially the appraiser should #al the employee through the process. +he successful supervisor starts out #ith an overvie# of #hy the revie# session is needed. +hen the supervisor taes the employee do#n a point* by*point list of every aspect of the &ob. n each case, the employee should be given a chance to describe his or her achievements and shortcomings. +he supervisor should al#ays supplement this #ith added insight.
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O&JECTI6ES OF PERFORMANCE APPRAISAL
+he ob&ectives and benefits of erformance %ppraisal system can be summarized as under?
Ob1t"#: 5ata relating to erformance erformance %ppraisal %ppraisal of employees employees are recorded, recorded, stored and used
for several purposes lie? •
Eet the employees no# #here they stand in so far as their performance is concerned and to assist them #ith constructive criticism and guidance for the purpose of their development.
•
%ssessment of sills #ithin an organization.
•
1et targets for future performance.
•
>ffect promotions based on competence and performance.
•
1trengthen relationship bet#een superior and subordinate.
•
%ssess the training and development needs of employees.
•
dentify the strengths and #eanesses of employees.
•
5ecide upon a pay raise (increments).
•
mprove communication as it not only provides a system for dialogue bet#een the superior and the subordinate, but also improves understanding of personal goals and concerns. +his can also have the effect of increasing the trust bet#een the appraiser and appraisee.
•
5etermine #hether human resource programs such, as selection, training and transfers have been effective or not.
EFFECTI6E APPRAISAL PROCESS
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8hen it comes to performance performance appraisal, appraisal, managers managers and employees employees agree about one thing? thing? +hey hate going through them. >mployees, managers and HR experts agree that fear, guilt, responsibility and resentment are the real reasons #hy most employees dread the appraisal process. esides some thin that it is a ritual that is mandatory to follo#.
%n effective revie# process helps organizations in three areas?
.
=.
evalua evaluatio tion n an and d impro improvin ving g person personnel nel selec selectio tion n and trainin training g system systemsS sS
.
prev preven enti ting ng #ron #rongf gful ul term termin inati ation onSS an and d
9.
incr increa easi sing ng re real al empl employ oyee ee div diver ersi sity ty
0ood 0ood apprai appraisa sals ls start start #i #ith th infor informa matio tion n from from mult multip iple le sources sources,, and they evalu evaluate ate employees at all levels from top to bottom.
. .
+his +his sy syst stem em re re2 2uire uiress bo both th the the appr apprai aise seee an and d ap appr prai aise serr to &o &oin intl tly y as asse sess ss th thee employee’s ability to complete the duties and achieve the goals set forth in the previous appraisal.
.
HR profe professio ssional nalss should should consi consider der the the follo#i follo#ing ng steps steps and and mae mae the appra appraisal isal proc process ess simple yet effective? •
+he performance %ppraisal form should reflect the strategic ob&ectives of the company. 6any organizations use use a form that that contains several sections.
•
+he results and impact section should address accomplishments related to &ob responsibilities, goals and pro&ects. t is a revie# of past performance.
•
% s sil ills ls an and d ab abil ilit itie iess secti section on sh shou ould ld di discu scuss ss th thee #ays #ays th thos osee re resu sult ltss #e #ere re accomplished. y listing the the core competencies for each &ob classification 3 and for the entire organization 3 this section can address the inds of behavior that are critical for success.
L.. L
%ppr %pprais aisal al result results, s, either either direc directly tly or indirec indirectly tly,, de dete term rmin inee re re#a #ard rd outco outcome mes. s. +he +he better performing employees may get the ma&ority of available merit pay increases, increas es, bonuses and promotions, #hile the poorer performers may re2uire some form of counseling or in extreme cases no increases in pay. +he assignment and &ustification of re#ards and penalties through performance appraisal is a very uncertain and
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controversial matter and conveys both satisfaction as #ell as dissatisfaction #ith an employee’s &ob performance. 8hatever is the case, organizations should foster a feeling that performance appraisals are positive opportunities that provide for overall development of the employee, in order to get the best out of the people and the process. Hence 0r7or*a!1 a00ra"#a$# #hou$d b 0o#"t" 80r"!1# a!d "t #hou$d !r b u#d to ha!d$ *attr# o7 d"#1"0$"! .
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IDENTIFICATION IDENTIFICATI ON OF BE) RESULT AREAS %BRAS( GOAL SETTING
1etting of /ey Result %reas i.e. goals is one of the various parameters of performance evaluation. evalu ation. +hese +hese are also no#n as the +argets or erformance erformance ndicators ndicators (). +arget +arget setting is the first step in the appraisal process, based on #hich the employee is appraised. I.
Th Th Pur Pur0o 0o# # or or Ob Ob1t 1t" " o7 o7 Ta Tar' r't t St Stt" t"!' !' ∙
>nsure that each individual is #oring to#ards clearly stated ob&ectives that tie into the division goals.
∙
∙
rovides a sound basis to improve performance. >ncourages open communication concerning expected results and progress to#ards results.
∙
Help He lpss th thee indi indivi vidu dual al n no# o# “Ho# “Ho# he he's 'she he is do doin ing! g! co comp mpare ared d to #hat #hat hi his' s'he herr manager expects.
∙
>ncourages comparison on individual ob&ectives to identify overlapping or omitted ob&ectives.
∙
Helps in salary revie#, and self*development.
+he recent trend from a focus on traits or behavior to a results*oriented approach has seen the emergence emergence of ob&ectives ob&ectives setting as a ey issue. Ho#ever, Ho#ever, managers managers should attemptt to agree ob&ectives attemp ob&ectives #ith their staff rather than setting them themselves themselves for the forthcoming period during appraisal discussion. +hese ob&ectives or targets should comply #ith the mnemonic SMART i.e. S pecific, Measurable, Achievable, R ealistic ealistic and Time*bound. II.
Ty0 o7 Goa$#:
-ne may have to set multiple goals combining goals at different levels viz. the long* term goal, the short*tem goal and the minimum or standard goal.
Page 25
-.
Th $o!' $o!'3t 3tr* 'oa 'oa$: $:
9.
Th #hor hort3tr tr* 'oa$ 'oa$::
. .
Th Th M"! M"!"*u "*u* * or or Sta Sta!d !dar ard d 'oa 'oa$: $:
+he minimum or standard goal is the cut*off point for signaling the existence of or potential for a performance problem. Eie short*term goals, minimum standards are set for a limited period but for longer duration 3 perhaps one to t#o years. 6inimums'standards are negotiated lie short*term goals and must conform to the follo#ing criteria? ∙
∙
III. III.
+hey must be less than or e2ual to current average'typical performanceS and +hey cannot be #orse than the #orst performance for any previous period.
SMAR SMART T 1r" 1r"t tr" r"a a 7or 7or 0r 0r7o 7or* r*a! a!1 1 'o 'oa$ a$##
SMAR SM ART T
Pr7 Pr7or or*a *a!1 !1
Goa$#
Cr"tr"a Ch1$"#t
S01"7"1
1tates in clear terms #hat outcome, behaviour
result is
to
∙
or
5oes it specify * mprov mproved ed level level of 2uality 2uality,, 2uantity 2uantity,, time or use
be
of resources.
achieved.
* % ne#'inn ne#'innovati ovative ve result, result, faster time line, or * %n impro improved ved behav behavior ioral al outcom outcomeT eT ∙
5oes it have a clearly stated singular resultT
Ma#urab$
ncludes measurable results
∙
or a descr criiption of the desired outcome.
A1h"ab$
8ill ill
you no# from from in info form rmat atio ion n,
dat ataa
observation #hen it is achievedT ∙
5oes it specify*8hatT Ho# muchT Ho# #ellT
or
Page 26
% realistic expectation, given
∙
time and resources
%re resourc resources, es, author authority ity level, level, and re2uis re2uisite ite sills in placeT
∙
5oes it re2uire a stretch of effortT
Ra$"#t"1
+here is a clear tie to goals of the department, division etc.
∙
∙
∙
8ill it matter #hen it is doneT 5oes the ob&ective support relevant goalsT 5oes it deal #ith a ey aspect of the &obT
T"* &ou!d
+here is a time limit or deadline
by
#hich
the
ob ob&e &ecti ctive ve must must be ac achi hiev eved ed
∙
∙
8hen are the goals to be completedT s
there
a
timetable
for
milestones
or
checpointsT
and there may be a time frame to trac phases of completion in an action plan.
DESIGNING AN APPRAISAL PROCESS
5esigning an appraisal program poses several 2uestions, #hich n need eed ans#ers. +hey are? =.
8hos 8hosee perf perfor orma manc ncee iiss to be as asse sess ssed edTT
.
8ho ar are th the ap appraisersT
9.
8hat sh should b bee ev evaluate atedT
K.
8hen to ap appraiseT
I.
8hat hat p pro rob blem lems are are en enco cou unter ntered edTT
:.
Ho# to to sol solve th the pro prob blemsT
U.
8hat 8hat metho ethods ds of ap appr prai aisa sall are are to be used usedTT
-.
ho# ho# 0r 0r7o 7or* r*a! a!1 1 #ho #hou$ u$d d b a## a### ## #d d
+he ans#er ans#er is obvious obvious 3 employees. employees. 8hen #e say employee employees, s, it is individual individual or teamsT 1pecifically 1pecifically,, the appraisee may be defined as the individual, individual, #or gr group, oup, division or organization.
9.
ho ar th a00ra"#r#
Page 27
%ppr %p prai aiser serss ca can n be imme immedi diate ate supe superi rior ors, s, speci special alist istss from from th thee hu huma man n re reso sour urce ce department, subordinates, peers, committees, clients, self*appraisals or a combination thereof.
.
hat #hou$d b a$uatd
-ne of the steps in designing an appraisal program is to determine the evaluation criteria. criteri a. t is obvious obvious that that the criteria criteria should should be related to the &ob. &ob. +he criteria criteria for assessing performance can be? a.
Buality C Buantity
b.
+imeliness
c.
7ost >ffectiveness
d.
4eed for su sup pervision
e.
nterperso son nal imp impac actt
f.
nnovation C 7re reaativity
g.
roblem %nalysis
h.
7usto stomer or orien enttation
i.
6aret -r -rientation
&.
>ntrepreneurial 5rive
.
4egotiation s sills etc etc.
+his +h is is no nott an ex exha haus usti tive ve list list,, bu butt sever several al ot othe herr pa para rame meter terss to too o ca can n be ad adde ded d depending on &ob re2uirements and organizational needs.
;. h! to a00ra"#rat
+he most fre2uent rating schedules schedules are semi*annual and annual. 4e# employees employees are rated more fre2uently than older ones. 1ome practices call for ratings? ∙
∙
∙
%nnually as per company practice %fter first : months of employment Fpon promotion or #ithin 9 months after promotion
Page 28
∙
∙
8hen the &ob occupied has been reevaluated up#ard Fpon special re2uest, as #hen the employee’s salary is belo# the average pay
/. hat ar th 0rob$*# r$atd to Pr7or*a!1 A00ra"#a$
%n ideal erformance %ppraisal is done #hen the evaluation is free from biases and idiosy idi osyncra ncrasie siess of the evaluator evaluator..
+here +here are many many factors factors of appraisal appraisal that lead to
failure of the system?
a.
N'at N'at" " att"tu att"tud d towar toward# d# Pr7o Pr7or*a r*a!1 !1 A00r A00ra"# a"#a$: a$:
+here is a large population of managers #ho are hostile or indifferent to the erformance %ppraisal processes and'or do it badly if they do it at all.
appraiser : i. Hostility from the appraiser +he appraiser reacts indifferently to the appraising system because he
believes that it is a #aste of time. ti me. %t times they feel that the scheme has nothing to do #ith their o#n needs and it exists to feed the personnel database. ii. Hostility from the appraisee: appraisee: Hostility from the people at the receiving end arises because they feel erfor er forman mance ce %pprai %ppraisal sal is simply simply anothe anotherr method method in the hands hands of the managers to exercise their command and control prerogatives. +hey feel that the data collected collected #ill be utilized utilized as evidence against against them. n some cases appraisees appraisees even have a feeling that the outcome of the performan performance ce evaluation is predetermined by the management or their superiors and the process is completed only as a formality, due to #hich appraisees lac interest in the entire appraisal process. b.
Halo Error :
Fnder this type of error, one mared characteristic or latest achievement or failure of the appraisee (either favourable or unfavourable) may be allo#ed to dominate the appraisal for the entire year.
Logical Error:
Page 29
+his is a dangerous dangerous pitfall pitfall for the inexperie inexperienced nced appraiser. appraiser. He is very often often incli incline ned d to ar arri rive ve at sim simil ilar ar as asses sessm smen ents ts in re resp spect ect of 2u 2ual alit itie iess th that at seem seem logically related. d
Constant Error:
8hen t#o appraisers rate an appraisee their ratings may may be different. -ne may sho# consistent leniency by giving him high scores, the other my consistently rate him by giving lo# scores. e
Central Tendency:
t is also called as “%verage Ratings!. Ratings!. Here, the appraiser appraiser tends to avoid giving fran fra n vie# vie#ss to the the 2u 2uest estio ion n ased ased or th thee ap appr prai aiser ser is in do doub ubtt or he ha hass inade2uate information or he simply #ants to play safe and don’t displease anyone. *
Mirror-Image Error Error or Pro Proection ection Error:
+his error arises #hen an appraiser expects his o#n 2ualities, sills, and values in an appraisee. appraisee. +he appraiser appraiser may falsely falsely believe that that if the appraisee is good good he has to be lie him (appraiser) because because the appraiser appraiser considers himself himself as the standard.
g
Contrast Error:
+his error occurs in the se2uencing of ratings. f superior performers are rated first, average performers are rated do#n, if poorer performers come first, the average performers #ill be rated more highly. h
!iases of position" position" #e$" %ace" %eligion %eligion & 'ationality:
+here is a tendency to rate the occupant at a higher position more favorably than the person in a lo#er position. 1imilarly rating can be biased based on sex, religion and nationality too. i.
Lac( Lac( of #(il #(illl in in con condu duct ctin ing g )pp )ppra rais isal al disc discus ussi sion on::
7onduc 7on ductin ting g erfor erforman mance ce %pprai %ppraisal sal discus discussio sions ns re2uir re2uiree certai certain n sills sills and training.
Page 30
:. How to #o$ th a00ra"#r# 0rob$*# +he best #ay to overcome overcome the problem problem is to give training training to the appraiser. +raining +raining can help improve the appraisal system to the extent that distortion occurring due to appraiser errors such as halo, leniency, central tendency and bias are minimized.
a.
Fa1t Fa1tor or## ttha hatt h$ h$0 0 to to "*0 "*0ro ro a11u a11ura ra1y 1y:: •
+he appraiser has observed and is familiar #ith behaviors to be appraised.
•
+he appraiser has documented behaviors calling for improvement.
•
+he appraiser has a checlist to obtain the revie# on &ob*related information.
•
+he appraiser is a#are of personal biases and is #illing to tae action to minimize their effects.
•
Rating scores by appraisers of one group or organization are summarized and compared #ith those by other appraisers.
•
+he appraiser focuses attention on performance related behaviors over #hich he has better control than on other aspects of evaluation.
•
b.
Higher levels of management are held accountable for revie#ing all ratings.
Fa1t Fa1tor or## ttha hatt *ay *ay $ow $owrr a11 a11ur ura1 a1y: y: •
+he appraiser rates only #hen administrative actions are contemplated.
•
+he ap appr prai aise serr
is unab unable le to ex exp pre ress ss
her erse self lf'h 'him imse self lf
ho hone nest stly ly an and d
unambiguously.
.
•
%ppraisal systems, processes and instruments fail to support the appraiser
•
+he appraiser is una#are of causes of rating errors.
•
+he appraiser has to rate employees on factors that are poorly defined.
T1h T1h!" !"u u# #* *th thod od## o7 o7 a00 a00ra ra"# "#a$ a$ to b u#d u#d
Page 31
+here are different types of systems for measuring the excellence of an employee. >ach type has its o#n advantages and disadvantages. +he earlier developed methods, methods, still being used, are +raditional 6ethods that are non*transparent in nature. 8hile other oth er ne#er method methodss are transpa transparen rentt in nature. nature. >ach >ach of the method method has it’s it’s o#n format of appraisal form. Th ar"ou# t1h!"u# a!d 0ro1### ha b! 80$a"!d "! th 7orth1o*"!' 1ha0tr.
Page 32
CHAPTER39 RE6IE OF LITERATURE METHODS OF APPRAISAL
+R%5+-4%E 6>+H-51 - %R%1%E erformance %ppraisal is an exercise of observation and &udgment, a feedbac process, and an orga organi nizat zatio iona nall inter interve vent ntio ion. n. t is a meas measur urem emen entt pr proc ocess ess as #ell #ell as an in inte tens nsely ely emotional emoti onal process. process. %bove all, it is an inexact, inexact, human process. process. 8hile it is fairly easy to prescribe ho# the process should #or, descriptions of ho# it actually #ors in practice are rather discouraging.
1ome of the traditional methods of appraisal are explained belo#?
-.
Ra!"!'
n this, the superior rans his'her subordinates in order of their merit, from best to #orst. *
t is is do done in in a competiti itive gro grou up.
*
t is is do done ne by by plac placin ing g the the appr apprai aise seee on num numer eric ical al sca scale less i.e. i.e. =st, nd, 9 rd etc. in the total group.
*
Ran Ranin ing g of an appra apprais isee ee on his &ob &ob perfo perform rman ance ce't 'tra rait itss ag agai ains nstt th that at of ano anoth ther er member.
9.
Pr# Pr#o! o!3t 3to3 o3P Pr# r#o! o!P Pa" a"r rd d Co*0 Co*0ar ar"# "#o! o!
Fnder this method the appraiser compares each employee #ith every other employee, one at a time. *
7ertai 7ertain n ey ey perform performance ance areas'tr areas'trait aitss are are deve develop loped. ed. >.g.? >.g.? Eeader Eeadershi ship, p, 7reat 7reativi ivity ty,, nitiative etc.
*
% scal scalee fo forr each each fa fact cto or is is desi design gned ed..
*
% sca scale le of peop people le is also also cr crea eate ted d for for each each fa fact ctor or..
*
>ach >ach %ppr %pprai aisee see is com compa pare red d to ev ever ery y oth other er per perso son n on on tthe he sc scale ale..
Page 33
*
.
7ert 7ertai ain n sco scores res fo forr each each fa fact ctor or are a#ar a#arde ded d to to the the ap appr prai aisee see..
Grad"!'
*
7ert 7ertai ain n catego categorie riess of trai traits ts'p 'per erfo form rman ance ce crite criteria ria,, #hi #hich ch are #ort #orth h of apprai appraisi sing ng,, are establi establishe shed. d. >.g. >.g. cooper cooperati ativen veness, ess, self*ex self*expre pressio ssion, n, depend dependabi ability lity,, &ob no#ledge etc.
*
+he actu ctual perfo forrmance (/ey performa rmance area) of an employ oyeee is then compared to the predetermined grade definitions.
;.
Co!7"d!t"a$ R R0ort"!'
*
t is is the the mos mostt trad tradit itio iona nall #ay #ay of of appr apprai aisin sing g empl employ oyee’ ee’ss perf perfor orma manc nce. e. +he +he basi basicc assumption here is that since the superior is in direct contact he no#s his subordina subord inates tes better better than than any other and hence his appraisal appraisal #ould #ould be more more appropriate.
*
+he su supe peri rior or #rit #rites es a par arag agra rap ph or so ab abo out hi hiss su sub bor ordi din nat ate’ e’ss stre stren ngt gth hs, #eanesses, intelligence, attitude to #or, attendance, conduct and character, #or efficiency, etc.
/.Gra0h"1 S1a$#
*
% pri print nted ed fo form rm,, one one fo forr eac each h per perso son n to to be be rrat ated ed is us used ed..
*
+he factors factors includ included ed in the form form are are >mp >mploy loyee ee charac characteri teristic sticss such such as lead leadersh ership, ip, cooper coo perati ativen veness, ess, enthus enthusiasm iasm,, loyalty loyalty etc. or >mplo >mploye yeee contri contribut bution ion #hich #hich includes 2uantity and 2uality of #or, specific goals achieved, regularity of attendance, responsibility assumed etc.
*
+he +he trait traitss can be eval evalua uate ted d on co cont ntin inuo uous us scal scalee 3 th thee appra apprais iser er plac places es a mar mar along a continuum (range).
*
+he +he best best met metho hod d to use use is is the the “mul “multi tipl ple! e! type type of of scal scalee #here #herein in one one has has to to “tic “tic off! the box, #hich suits the description of an appraisee’s performance.
*
7ert 7ertai ain n type typess of grap graphs hs are are pre prepa pare red d based based on the these se deri derive ved d rati rating ngs. s.
Page 34
<..Cr"t"1a$ I!1"d!t Mthod
* nitia nitially lly a set of note#orth note#orthy y (good or or bad) on*the*&o on*the*&ob b behaviours behaviours is prepared prepared.. +his is usually in the form of incidents. * +hese inci incidents dents are given to a group of of experts #ho assign assign scale values dep dependin ending g upon the degree of desirability for the &ob. * +his chec checlist list is used by superiors superiors for evalu evaluating ating the employ employees. ees. * +hi +hiss method method helps helps in identify identifying ing the ey areas #here the employe employees es are #ea or strong. * t emphasi emphasizes zes rating on ob&ective ob&ective evidence and helps helps in counseling. counseling.
=..For1d Cho"1 T1h!"u
*
n forc forced ed choi choice ce syst system em the the appra apprais iser er is forc forced ed to to choo choose se one one from from amo among ng a group of K statements that best fits the individual being rated and one #hich least fits him.
*
>ach >ach st stat atem emen entt is is giv given en a v val alue ue or a sco score re..
*
+he +he evalu evaluat ator or does does not not no# no# the the score score valu valuee of state stateme ment ntsS sS henc hencee he canno cannott sho# any favor to#ards the appraisee.
*
+he +he metho method d of arran arrangi ging ng the the trait traitss invol involve vess a lo long ng pro proce cess ss from from gett gettin ing g the description of “good! or “bad! employees to establishing their validity and reliability.
..&ha"oura$$y ..&ha"oura $$y A!1hord Rat"!' S1a$# %&ARS(
*
eha ehavi viou oura rally lly %nch %nchor ored ed Ratin Rating g 1cal 1cales es (%R1 (%R1)) are an anch chor ored ed #ith #ith descri descript ptiv ivee alternative behaviors.
*
or every every give given n categ category ory of beha behavio viorr or perfor performan mance, ce, stat stateme ements nts are are orde ordered red in an ascending or descending order of excellence.
*
%l %lth thou ough gh these these scales scales repres represen entt &o &ob* b*re rele leva vant nt dimen dimensio sions ns of pe perf rfor orma manc nce, e, they still pose problems in determining #hich actually, observed behaviours match #ith specifically anchored performance scales.
*
5espite 5espite this this diffic difficult ulty, y, %R1 %R1 are a signif significan icantt impro improvem vement ent,, since since they they re2u re2uire ire less inference on the appraiser’s part as against traditional rating approaches.
Page 35
+he above methods are non*transparent in nature, as the appraisee or the employee is not involved in the process of his appraisal. +he rating is done entirely by his superiors.
RELATI6EL) TRANSPARENT METHODS OF APPRAISAL
%s time has progressed, progressed, there have been advancements in the appraisal system. %s against the earlier traditional traditional methods, methods, the ne#er methods methods include include self*appraisal self*appraisal by the appraisee. %fte %f terr ha havi ving ng discu discusse ssed d the the ap appr prai aisal sal #i #ith th th thee ap appr prai aisee see,, th thee ap appr prai aiser ser fo for# r#ar ards ds hi hiss recommendation to the management for further decision on re#ard giving.
So* o7 th r$at"$y tra!#0ar!t *thod# ha b! dta"$d b$ow:
I.
A00ra A00ra"#a "#a$$ D"#1u D"#1u##" ##"o! o! D"a$ D"a$o'u o'u Mt Mthod hod o7 A00ra" A00ra"#a$ #a$
=.
%n appr apprai aise serr and and appr apprai aise seee get get toge togeth ther er to en enga gage ge in a di dial alog ogue ue about about the the appraisee’s performance and development. t is lie a meeting in #hich vie#s are exchanged so that an agreed conclusion can be reached. +he formal appraisal meeting meetin g is referred as discussion discussion because there is a free*flo#in free*flo#ing g affair in #hich both parties are fully involved.
.
+he app appra rais isal al dis iscu cuss ssio ion n provi rovid des the the mea ean ns th thro rou ugh #hic #hich h th thee 7" ey elements of erformance %ppraisal %ppraisal can be achieved. +hese are? a. Measurement ? t assesses results against agreed targets and standards. b. *eed+ac( ? t gives the appraisee information on ho# he or she has been doing. c. Positive reinforcement : t emphasizes #hat has been done so that it #ill be done even better better in the future. % constructive constructive criticism criticism is done i.e. points points that help in improving performance are given. vie,s: t ensures that the discussion involves a full, free and d. E$change of vie,s: fran exchange of vie#s about #hat has been achieved, #hat needs to be
Page 36
done to achieve more, #hat appraisees thin about their #or, the #ay they are guided and managed and their aspirations. e. )greement : oth parties parties &ointly &ointly arrive at an understand understanding ing about about #hat has to be do done ne in or orde derr to impr improv ovee pe perfo rform rmanc ancee an and d ov overc ercom omee an any y #or #or problems raised during the discussion.
.
O0 O0!" !"!' !' th D"# D"#1u 1u###"o #"o!
5uring the discussion the appraiser should build up good trust level #ith the appraisee and should tae follo#ing steps to open a discussion?
a. He should should start by by reminding reminding the the appraisee appraisee of the purpose purpose of of the discussion discussion,, stressing that this is not to d#ell unduly on the past but to loo to the future. b. +he appraisee should be made a#are of the time set aside for the discussion to demonstrate that he is not going to rush through it.
c. 7ontinue 7ontinue by explain explaining ing that the the aim is to come come to an agreement agreement on #hat #hat has been achieved since the last meeting and #hat is to be achieved in the future. d. +his +his should should be follo# follo#ed ed by a brief brief exchang exchangee in #hich #hich each party party itemizes itemizes the ey points they #ant to discuss 3 setting the agenda. e. +he +he disc discus ussi sion on can can then then begi begin, n, pr prob obab ably ly #ith #ith an in invi vita tati tion on from from th thee appraiser to the appraisee to tal generally about the progress he or she has been maing during the year #ith reference to notes made prior to the meeting or a completed preparation form.
;.
G!ra$ Gu"d$"!#
+here are a number of general guidelines on ho# the appraisal discussion may be conducted. >ach of them should be applied according to the circumstances in #hich the discussion is taing place and the personalities of those involved 3 there is no one right #ay to conduct an appraisal discussion.
Page 37
a. Eet the the appra appraise iseee do most most of the the talin taling. g. b. >ncourage self*appraisal c. /eep /eep the the #hole #hole perio period d under under revie# revie# d. 4o surprises surprises i.e. i.e. discuss discuss issues issues at the the time time they tae tae place. place. e. Recognize Recognize achievement achievementss and and reinfo reinforce rce strengths strengths f. 7r 7rit itic icize ize co cons nstru truct ctiv ively ely g. %dopt %dopt a &oint problem*sol problem*solving ving approach approach h. %sing %sing the right right 2uestio 2uestions ns
/.
Thr Thr ar ar 7our 7our ba#" ba#"11 tty0 y0# # o7 u# u#t" t"o! o!#: #:
a. pen uestions? -pen 2uestions help to create an atmosphere of calm and friendly in2uiry. t can be expressed 2uite informally, and can be put in a Jtell me’ form. >.g.? Ho# do do you thin things have been goingT goingT b. Pro+ing uestions? robing robing 2uestions 2uestions as for specific information information on #hat has happened and #hy it has happened. +hey examine closely the steps that ne need ed to be tae taen n to pu putt th thin ings gs ri righ ght, t, do be bett tter er in th thee fu futu ture re an and d av avoi oid d repeating a mistae. c. Closed uestions? 8hen there is a need to obtain or confirm specific factual data, a closed 2uestion, #hich severely restricts the reply to supplying the information, is ased. >.g. Ho# many times has this happenedT d. Leading uestions? Eeading 2uestions are those #hich supply their o#n Jright’ ans#er, e.g. 5o you agree that VV.T
<.
L"#t! 1ar7u$$y
%n ap appr prai aisal sal discu discussi ssion on is a dial dialog ogue ue.. oth oth pa part rtie iess ar aree co comm mmun unica icati ting ng information and ideas to one another to achieve the purpose of the meeting.
Page 38
0ood 0oo d lis listen teners ers concentr concentrate ate on the speaer. speaer. +hey +hey respond respond 2uicly 2uicly to points points made by the speaer, as 2uestions fre2uently to elucidate meaning, give the speaer an opportunity to rephrase or underline a point, comment on the points made by the speaer #ithout interrupting the flo# of conversation. II II..
COMP COMPET ETEN ENC) C) &ASE &ASED D APPR APPRAI AISA SAL L S)ST S)STEM EM
hat "# Co*0t!1y
7ompetency is an underlying characteristic of an individual, #hich is casually related to effective or superior performance.
Co*0t!1 ba#d a00ra"#a$# 1a! b d7"!d a# a *thod o7 a00ra"#"!' 0o0$ who$$y or 0art$y by r7r!1 to th $$ o7 1o*0t!1 thy d*o!#trat "! 1arry"!' out th"r ro$#.
-ne of the problems surrounding the concept of competence or competency is that the term is used to refer to the ability to perform a &ob or tas competently and also to ho# people ought to behave in order to carry out a role #ith competence. ∙
7ompetence should be used to refer to areas of #or in #hich the person is competent.
∙
7ompetency should be used to refer to the dimensions of behaviour lying behind competent performance.
=. Co*0t!1 ba#d a00ra"#a$ *u#t d0!d o! #o* *thod o7 *a#ur"!' 1o*0t!1. +o do this, this, it is useful to distinguish distinguish bet#een the input, process and
output aspects of performance and ho# competence can be measured under each heading.
a.
%s an inp input ut,, comp compete etenc ncee can be be measu measured red by by the the capaci capacity ty #ith #ithin in peo peopl plee to do their #or #ell. 7apacity refers to #hat people bring to their #or in the form of no#ledge, sills and personal attributes.
Page 39
b.
%s a process, competence can be measured in terms of the behaviour re2uired of people in order to effectively convert inputs into outputs.
c.
%s an out outpu put, t, comp compete etenc ncee is meas measur ured ed by the the out outco come mess of the the beha behavi viou ourr of people in maing the best use of their no#ledge, sills sills and attributes.
Page 40
. A00ra"#a$# 1a! b r$atd to 1o*0t!1 "! two way#? •
as a people-+ased process #hich lins assessment to the level of competence attained by individualsS or
•
as a o+-+ased process #hich uses competence headings #holly or partly to evaluate &obs or roles.
oth levels of competence and levels of performance in achieving ob&ectives, should be taen into, on the reasonable grounds that they should be assessed not only for ho# people perform (competence inputs) but also for #hat they achieve (outputs).
. POTENTIAL APPRAISAL
)ssessment Center Center Method
Fnder this method, many evaluators i.e. appraisers &oin together to &udge employee performance in several situations by using variety of criteria +he most important feat featur uree of this this meth method od is &o &ob* b*rel relat ated ed simul simulati ation ons. s. +hes +hesee simul simulati ation onss in invo volv lvee characteristic charac teristicss that managers feel are important important for the &ob success. +he evaluators evaluators observe and evaluate participants as they perform activities commonly found in these higher*level &obs. t involves a paper*and*pencil test, intervie#s and exercises.
-.
Fatur#: •
+he use of situational situational exercise exercise (such as in*baset in*baset exercise, business game, a role*playing incident and leaderless group discussion)S
•
>valua >va luator torss are dra#n dra#n from from experie experience nced d manage managers rs #ith #ith proven proven ability ability at different levels of managementS
•
+hey evaluate all employees, both individually and collectively.
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•
% summary report is prepared by the members, and a feedbac on a face*to* face basis is administered to all the candidates #ho as for it.
9.
Pur0o#:
a. t is is used to? •
6eas 6e asur uree pote potent ntia iall fo forr fi firs rstt le leve vell su supe perv rvis isio ion, n, sa sale less an and d up uppe perr management positionsS and also for higher levels of management for development purposes.
•
5etermine individual training and development needs of employees.
•
1elect freshers for entry*level positions.
•
rovide more accurate human resource planning information.
•
%ssist in implementing affirmative action goals.
b. t generally measures interpersonal sills and other aspects such as? organi org anizin zing g and planni planningS ngS interp interperso ersonal nal compet competenc encee (getti (getting ng along along #ith #ith others), 2uality of thining, resistance to stress, orientation (motivation) to #or, dependence on others and creativity. +he ability to organize, organize, plan and mae decisions, as in*baset simulations and scores obtained on paper and pencil, psychological tests, are important to the overall assessment score.
+he duration of %ssessment 7enter rogram varies depending on the level of appraisee. or example, centers designed for selection of first line supervisors, sales personnel, and management trainees generally last for a day or lessS #hile those used for higher*level managers may run for t#o or three days or longer if used for developmental and not for selection purposes.
.
Prob$*#: •
+he ratings are generally influenced by the participant’s interpersonal sillsS &udges tend to evaluate the 2uality of the individual’s social sills rather than
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2uality 2uali ty of the decisions themselves. themselves. urther, urther, the organizing organizing and decision* decision* maing ma ing abilit abilities ies are measure measured d by in*bas in*baset et exerci exercises, ses, verbal verbal ability ability and personal traits. •
1olid 1ol id perfor performer merss in day*to* day*to*day day operati operation onss sudden suddenly ly choe choe in simula simulated ted environment.
•
Fnreasonably high cost of assessing an individual in a particular &ob level.
•
+here are potential bad effects on those not selected to participate in the exercise.
•
Fsually immediat immediatee supervisors supervisors nominate nominate participants. participants. >mployee >mployeess #ho are curiou cur ious, s, indepe independe ndent, nt, aggress aggressive ive and intell intellige igent nt may never never be selected selected because such traits, though important at higher levels, are not accepted by lo#er level supervisors.
•
oor o orly ly rate rated d appr apprai aise seee may re reac actt in ne nega gati tive ve #ay #ays an and d migh mightt ge gett demoralized.
+o mae %ssessment 7enter rogram successful, strong emphasis must be placed on clear statement of goals, obtaining commitment of top management, &ob analysis, appraiser training, program audit and evaluation.
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NE FRONTIERS TO PERFORMANCE APPRAISAL
n recent years the system of performance appraisal is becoming more and more transparent #herein #herei n the employee, employee, #ho is being appraised, appraised, is involved involved in the process. +he ob&ectives ob&ectives or targets are set #ith mutual understanding bet#een the appraisee and his immediate superior. superi or. +he feedbac feedbac regarding regarding his performance performance is given to the appraisee appraisee #ith areas of improvement impro vement by disclosing disclosing his strengths strengths and #eaness and the opportunit opportunities ies available. available. #ill tae you into details of these ne# frontiers to erformance %ppraisal viz?
I. II. III.
Ma!a Ma!a' '* *!t !t by Ob Ob1t 1t" "# # %M&O %M&O(( &a$a!1d S1or1ard <+K F Fdba1
I.MANAGEMENT &) O&JECTI6ES
6anagem 6an agement ent by -b&ecti -b&ectives ves is basica basically lly a process process #hereby #hereby the superio superiorr and the subordinat subor dinatee managers managers of an enterprise &ointly identify its common goals, define each individual indiv idual’s ’s ma&or areas of responsibility responsibility in terms of the results expected of him and use these measures as guides guides for operating operating the unit and assessing assessing the contributio contribution n of each of its members. 6anagement by -b&ectives is primarily to change the behaviour and attitude to#ards getting an activity or assignment completed in a manner that it is beneficial for the organization.
6anagement by ob&ectives is a result*oriented
process, #herein emphasis is on results and goals rather than a prescribed presc ribed method. % nu numb mber er of co comp mpan anies ies ha have ve ha had d si sign gnif ifica icant nt succ success ess in br broa oade deni ning ng in indi divi vidu dual al responsibility and involvement in #or planning at the lo#est organizational levels.
6anagement by -b&ectives is a five*sutra process having follo#ing basic steps? i #et rgani/ational rgani/ational 0oals: +his en +his envi visag sages es th that at or orga gani nizat zatio iona nall go goal alss an and d bu busi sine ness ss strat strateg egie iess ar aree expressed clearly, concisely concisely and accurately. +hey are periodically revie#ed.
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+hey should should be challenging challenging enough enough to motivate motivate the employee. employee. 7lear and attainable goals help channel energies to#ards desired behaviour and let the employee no# the basis on #hich he #ill be re#arded. %t this time, any appropriate changes in the organization structure should be made? changes in titles, duties, relationships, authority, responsibility, span of control and so forth.
ii 1oint 0oal #etting: +hiss step establi +hi establishe shess short*t short*term erm goals, goals, #hich #hich are perfor performan mance ce orient oriented, ed, bet#een the management and the employee.
+he responsibilities are
clarified to the employees through organizational charts and &ob description. +he goals decided by the employee need to complement the goals of the manage man agemen ment. t.
+hey +hey also need to be flexible flexible to accommod accommodate ate ne# ideas
#ithout #itho ut losing individual individual responsibili responsibilities. ties. 6oreover 6oreover they should be easily 2uantifiable.
iii Performance %evie,s: %evie,s: +his step suggests fre2uent performance revie#s bet#een the manager and the employees. 5uring the initial stages the meetings be held once a month and later could be 2uarterly. or maximum benefit these meetings should be scheduled for more than once a year.
i' #et chec( posts: posts: >stablishme >stabl ishment nt of ma&or chec posts posts to measure measure progress. +his is merely to chec that the employee surges to#ards his premeditated (planned) goal #ithout any disruptions. +hese chec levels should be higher in the initial stages and then gradually gradually reduce. +his demands that the the manager should be on constant alert and exercise sound &udgment.
' *eed+ac(: +he employees #ho receive fre2uent feedbac about their performance are highly highl y motivated motivated than those those #ho do not. Ho#ev Ho#ever, er, one has to ensure ensure that
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the feedbac feedbac is releva relevant nt and specific. specific. +his +his helps helps the employe employeee and the manager understand #here they stand.
+he five*sutra process of management by ob&ectives ensures that the manager and the employee define and establish goals and ob&ectives for an employee to be achieved #ithin a prescribed period of time. +he employee is to be supervised and evaluated, evaluated, periodically. +o this extent, extent, a fre2uent feedbac and superior*employee interaction model must be evolved.
&!7"t# o7 M&O Pro'ra*
a. Helps and increases employee motivation because it relates overall goals to the individual’s goalsS and help to increase an employee’s understanding of #here the organization is and #here it is heading. b. Managers are more li(ely to compete ,ithin themselves than ,ith other managers. +his ind ind of evaluation evaluation can reduce reduce internal internal conflicts that that often
arise #hen managers compete #ith each other to obtain scarce resources. c. %esults in a 2means-ends3 chain . 6anagement 6anagement at succeedi succeeding ng lo#er lo#er levels in the organization establishes targets, #hich are integrated #ith those at the nextt higher nex higher level. level.
+hus, +hus, it can help ensure ensure that every everyone’ one’ss activi activity ty is
ultimately aimed to#ard organization’s goals. d. %educes role conflict and am+iguity Role conflict conflict exists exists #hen a person person is faced #ith conflicting demands from t#o or more supervisorsS and role ambiguity ambig uity exists #hen a person is uncertain uncertain as to ho# he #ill be evaluated, evaluated, or #hat he has to achieve. achieve. 1ince 66- aims at providing providing clear targets targets and their order or priority, it reduces both these situations. e. Provides more o+ective appraisal criteria. +he targets targets that emerge emerge from the W process provide a sound set of criteria for evaluating the manager’s performance.
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f. *orces and aids in planning . y fo forcing rcing top managem management ent to establi establish sh a strat strateg egy y an and d go goals als fo forr the the en enti tire re or orga gani niza zatio tion, n, an and d by re re2u 2uiri iring ng ot othe herr managers to set their targets and plan ho# to reach them. g. Identifies pro+lems +etter and early. re2uent performance revie# sessions mae this possible. h. Identifies performance deficiencies.
t enab enable less th thee manag managem emen entt an and d
employ emp loyees ees to set indivi individua dualize lized d self*im self*impro provem vement ent goals goals and thus thus proves proves effective in training and development of people. i. Helps the individual manager to develop personal leadership" especially the s(ills of listening" planning" counseling" motivating and evaluating .
+his +h is approa approach ch to managin managing g instil instills ls a person personal al commit commitmen mentt to respond respond positively the organization’s ma&or concerns as #ell as to the development of human assets. 1uch a manager has a far greater chance to move ahead #ithin the management hierarchy.
II.<+ FEED&ACB
+he 9:;< eedbac process is called multi*source assessment, taps the collective #isdom of those #ho #or most closely #ith the employee, superiors, colleagues (peers) (pe ers),, direct direct reports reports and possibl possibly y intern internal al and often often extern external al custom customers. ers.
+he +he
collect col lective ive intell intellige igence nce these these people people provid providee on critica criticall compet competenc encies ies or specif specific ic behaviours and sills gives the employee a clear understanding of personal strengths s trengths and areas ripe for development. development. >mployees >mployees also vie# this performance performance information information from multiple perspectives perspectives as fair, accurate, credible, an and d motivating. >mployees are often more strongly motivated to change their #or behaviours to attain the esteem of their co#orers than to #in the respect of their supervisor alone.
!enefits to 4ey #ta(eholders #ta(eholders
Page 47
+hee 9:; +h 9:;< e eed edba bac c pr proc oces esss of offe fers rs exte extens nsiv ivee an and d di dive vers rsee be bene nefi fits ts to e ey y staeholders in the organization 3 and the organization too? a.
+he pr proc ocess ess give givess cu cust stom omers ers a ch chan ance ce to stren strengt gthe hen n th thee Cu#to*r#: +he customer*supp custom er*supplier lier relationship. relationship. +he 9:;< eedbac eedbac captures the relevant relevant and motivating information from internal and external customers #hile giving them a voice in the assessment process.
b.
E*0$oy#: y participating in a process that has tremendous impact on
their careers, employees may help select #hat evaluation criteria #ill be used used to &udg &udgee thei theirr perf perfor orm mance ance an and d #ho #ho #ill #ill pr prov ovid idee fe feed edba bac c.. artic ar ticipat ipation ion plays plays a critical critical role role for employ employees ees as they they determ determine ine the fairness of the process. c.
option for identi identify fying ing team and indivi individua duall Ta* **br#: +he only option members’ effectiveness is 9:;< eedbac. eedbac. ailing feedbac from multiple multiple sour source ces, s, team team memb member erss lac lac th thee in info form rmati ation on ne nece cessa ssary ry fo forr effect effectiv ivee indi indivi vidu dual al de deve velo lopm pmen entt an and d team# team#or or. .
8ith 8ith no team team ev eval alua uati tion on,,
accountability may evaporate, and performance may falter (#eaen). d.
process expands expands supervisors’ supervisors’ insigh insightt regarding regarding the the Su0r"#or#: +his process performance of each direct report by providing them more comprehensive and detailed performance information than they usually have access to. %lso, the process typically reduces by half, or more, the supervisor’s time spent on evaluating individual employees.
e.
Ladr# a!d Ma!a'r#: +he process provides leaders and managers an
opportunity to tap information from the organization that may other#ise not be shared #ith them for fear of reprisal. f.
-rganizations ns can gain access access to credible, credible, 2uantitat 2uantitative ive Or'a!"2at"o!#: -rganizatio inform inf ormati ation on to underst understand and organi organizat zation ional al strengt strengths hs and #eane #eanesses sses,, leadership leader ship gaps, and training training needs mor moree fully. +his informatio information n is much more useful than relying on intuitive &udgment or responding to those #ho are maing the most noise.
Page 48
5iagram sho,ing the (ey sta(eholders in a 6789 *eed+ac( Process
+he flo# diagram attached as A!!8ur explains the 9:;X feedbac process
Page 49
&a$a!1d S1or1ard
=.
ala alanc nced ed 1cor 1corec ecard ard (17 (17)) is a set of meas measur ures es deriv derived ed from from an organ organiz izat atio ion’ n’ss vision and strategy. t is a concept concept that helps helps translate translate strategy strategy into into action. action. t re2uires an organization to balance its goals across multiple perspectives to reduce the chance that one goal #ill dominate others to the detriment of the organizatio organ ization. n. t leads to a realistic realistic compromise compromise that addresses short*term short*term goals and longer*term staying po#er.
.
17 17 lin linss perf perfor orma manc ncee meas measur ures es by lo loo oin ing g at a bu busi sine ness ssDs Ds strat strateg egic ic visio vision n from fro m fo four ur diffe differe rent nt pe persp rspec ecti tive ves? s? fi fina nanc ncia ial, l, cu custo stome mer, r, in inter terna nall bu busi sine ness ss processes, and innovation C learning. le arning. +hese four perspectives of the 1corecard provide a balance bet#een desired outcomes and drivers for f or those outcomes and bet#een ob&ective and sub&ective performance measures. 17 is prescriptive about a balanced range of measures and about ho# one perspective perspective defines the drivers for the next.
a. F"!a F"!a!1 !1"a "a$$ Pr# Pr#0 01t 1t" " Th 7"!a!1"a$ 0r#01t" 0ro"d# a "w o7 how th #!"or 81ut"#@ th board o7 d"r1tor# a!d th #harho$dr# # th 1o*0a!y. +ypical
metrics in this perspective might be earning per share, revenue gro#th and profit maximization. n the 17, 7"!a!1"a$ *a#ur# play a dual role? they d7"! th 7"!a!1"a$ 0r7or*a!1 801td 7ro* th #trat'y a!d thy #r a# th u$t"*at tar't# 7or th ob1t"# a!d *a#ur# o7 a$$ th othr #1or1ard 0r#01t" 0r#01t"# #. +he financial measures are chosen based on
the business life cycle and also the strategic theme chosen for the financial perspective. n addition to increasing returns, most organizations are concerned #ith the ris of these returns. +herefore, #hen it is strategically impo im porta rtant nt,, thes thesee or orga gani nizat zatio ions ns #ill #ill #ant #ant to in inco corp rpor orat atee ex expl plici icitt ris ris management ob&ectives into their financial perspective.
50
%s a co conc nclu lusi sion on,, ev even entu tuall ally y all all ob ob&ec &ecti tive vess an and d measu measures res in th thee ot othe herr scorecard perspectives should be lined to achieving one or more ob&ectives in the financial perspective.
b. Cu#t Cu#to* o*r r Pr# Pr#0 01t 1t" "
+he customer perspective provides a vie# of ho# the customers see the company. /aplan and 4orton contend that, G to put the balanced scorecard to #or, companies companies should articulate goals for time, 2uality, 2uality, and performance performance and service and then translate these goals into specific measures.G -verall, th"# "# a *a#ur o7 how th 1o*0a!y 0ro"d# a$u to th 1u#to*r .
7hanges made to a business process output that lo#ers the customer’s cost or allo#s the customer to achieve his or her ob&ective, have value for the customer. custom er. or example, it’s not enough to simply bring do#n the cost of an item. +he delivery time and manner in #hich the customer is dealt during times of sales and support are important as #ell. t is a measure of that value th that at sh shou ould ld be ca capt ptur ured ed by th thee metr metric icss (e (e.g .g.. mar maret et shar share, e, cu custo stome merr satisfac sati sfactio tion, n, custom customer er loyalty loyalty,, custom customer er ac2uis ac2uisiti ition) on) represe representi nting ng this this perspective.
n this perspective, managers must first determine core measures that #ill describ des cribee the success successful ful outcom outcomes es of a #ell*f #ell*form ormula ulated ted and implem implement ented ed strat strateg egy. y.
+hey +hey have to also also identi identify fy #hat are th thee at attri tribu bute tess th that at the
customers value and choose the value proposition that they #ant to deliver to the targeted targeted customers. +oday, +oday, many companies companies have a corporate corporate mission mission that focuses on the customer.
1. I!tr! I!tr!a$ a$ &u#"! &u#"!## ## Pro1 Pro1## ## Pr#0 Pr#01t 1t" "
+he intern internal al busine business ss process process perspe perspecti ctive ve provid provides es a vie# vie# of #hat #hat the company must excel at to be competitive. /aplan and 4orton recommend that, Gcompanies Gcompanies also attempt to identify identify and measure their companyDs companyDs core competencies, the critical technologies needed to ensure continued maret leadership.G
51
n this perspective, the managers must identify the internal processes that are crucial to their organization and develop the best possible measures #ith #hich to trac the the organization’ organization’ss progress. +hese processes processes should should help them deliver superior value to their customers and achieve financial targets. Th &a$a!1d S1or1ard 'o byo!d th #"*0$ a####*!t o7 8"#t"!' 0ro1## 0ro1 ###@ #@ a!d u#ua$$y u#ua$$y "d!t"7" "d!t"7"## !w 0ro1## 0ro1#### that th or'a!"2a or'a!"2at"o! t"o! #hou$d "*0$*!t "! ordr to b #u11##7u$ . y incorporating innovation
processes measures, the alanced 1corecard provides managers #ith a set of tools that does not only reflect the short term, but also gives insight about the longer*term.
d. I!!oat" I!!oat"o! o! a!d Lar!"!' Lar!"!' Pr#01t Pr#01t" "
/aplan and 4orton underscore the importance of innovation and learning in their statement that, Ga companyDs ability to innovate, improve, and learn ties directly direct ly to the companyDs companyDs value.G value.G 8hile the financial perspective perspective deals #ith th thee pro ro&e &ect cted ed value alue of th thee co com mpa pany ny,, th th "!!o "!!oa at" t"o! o! a!d a!d $ $ar ar!" !"!' !' 0r#01t" #t# *a#ur# that h$0 th 1o*0a!y 1o*0t "! a 1ha!'"!' bu#"!## !"ro!*!t. +his is of principal interest to the 7>- and the
architects of the long*range business plan. +heir focus for this innovation is in the the fo form rmati ation on of ne ne# # or the the impr improv ovem emen entt of ex exis isti ting ng pr prod oduc ucts ts an and d processes. Th"# 0r#01t" $oo# at how 771t"$y th or'a!"2at"o! 1a! rd#"'! a!d "*0$*!t !w bu#"!## 0ro1##@ "!trodu1 a!d 80$o"t !w t1h!o$o'y a!d ada0t to 1ha!'"!' 1o!d"t"o!# "! '!ra$ . +hus the
meas me asur ures es in th this is pe persp rspec ecti tive ve ar aree trul truly y th thee en enab abler lerss of th thee ot othe herr th three ree perspectives.
Th# Th # *a# *a#ur ur# # ar ar $" $" th th ro root ot## o7 a tr tr th that at w" w"$$ $$
u$t"*at$y $ad throu'h th tru! o7 "!tr!a$ 0ro1## to th bra!1h# o7 1u#to*r r#u$t# a!d 7"!a$$y to th $a# o7 7"!a!1"a$ rtur!#. 6etrics of
this perspective can be adaptability, employee satisfaction, and #illingness to share and gain no#ledge.
"th th 7"!a!1"a$@ 1u#to*r a!d "!tr!a$ 0r#01t"#@ *a!a'r# ar ab$
52
to "d!t"7y th 'a0# btw! 8"#t"!' or'a!"2at"o!a$ r#our1# a!d th o!# r ru" u"r rd d to b #u11## #u11##7u$ 7u$..
Th o!$y o!$y way to 1$o# 1$o# tho# 'a0# 'a0# "# 7or th
or'a!"2at"o! to ud"1"a$$y "!#t "! *0$oy# a!d "!7or*at"o! t1h!o$o'y a!d to d#"'! d#"'! th *o#t a00ro0r" a00ro0r"at at or'a!"2at"o or'a!"2at"o!a$ !a$ #tru1tur #tru1tur that 1ou$d #u00or #u0 0ortt th"r th"r #tr #trat at'y. 'y. S1or1ard.
Th '"! '"! b$ow b$ow d"a'ra* d"a'ra* #how# th &a$a!1 &a$a!1d d
53
Th #t0# o7 "*0$*!tat"o! ar:
Id! Id!t" t"7y 7y"! "!' ' a!d a!d d7" d7"!" !"!' !' By By Pr7 Pr7or or*a *a!1 !1 I!d" I!d"1a 1ato tor# r# 7r 7ro* o* th th *u$t *u$t"0 "0$ $ 0r#01t"#:
irst the multiple perspectives perspectives are to be iden identified, tified, #hich can be, as? inancial 6easure, 7ustomer 6easure, nternal rocess and eople (Eearning C 0ro#th). %fter this the main tas is to identify the /ey erformance erformance ndicators (/) in each of these multiple multiple perspective. a.
den denti tify fyin ing g /ey /ey %cti %ction on %rea %reass
b.
mplementation of /ey %ction %reas
c.
6oni 6onito tori ring ng /ey /ey %ct %ctio ion n %re %reas as
;. Th ada!t ada!ta'# a'# o7 o7 th &a$a! &a$a!1d 1d S1or1 S1or1ard: ard:
a.
i irs rst, t, the meas measur ures es in inco corp rpor orat ated ed in th thee ala alanc nced ed 1corec 1corecar ard d ar aree gr grou ound nded ed in th thee organization’s strategic ob&ectives ob&ectives and competitive demands. +herefore, this set of critical indicators helps the organization focus its efforts on the strategic vision.
b.
+he four perspectives of the alanced 1corecard enable organizations to trac fina financ ncia iall re resul sults ts #hil #hilee si simu mult ltan aneo eous usly ly monit monitor orin ing g pr prog ogres resss in bu buil ildi ding ng th thee capabilities and ac2uiring the intangible assets they need for future gro#th. +he alance alan ce 1corecard 1corecard then becomes becomes the cornerstone cornerstone of the organization’s organization’s current and future success. %lso, by balancing external and internal measures, there is no trade* off among ey success factors.
c.
inally inally,, manag managers ers can use the alanc alanced ed 1cor 1corecar ecard d to? to? Y
clarify clarify and gain gain conse consensu nsuss about about the strateg strategyS yS
Y
commun communicat icatee the strat strategy egy thro through ughout out the the organ organizat ization ionSS
54
Y
ali align gn depa departm rtment ental al and and perso personal nal goal goalss to the the strate strategy gySS
Y
lin lin strateg strategic ic ob&ecti ob&ectives ves to long* long*term term targ targets ets and annua annuall budget budgetsS sS
Y
iden identi tify fy and and align align strat strateg egic ic init initiat iativ ivesS esS
Y
perfor perform m perio periodic dic and systema systematic tic strat strategi egicc revie revie#sS #sS
Y
obtain obtain feed feedbac bac to learn learn about about and and impro improve ve strat strategy egy..
ELECTRONIC APPRAISAL S)STEM %APPRAISAL( A00ra"#a$ is a recently introduced method of performance appraisal that eliminates paper
#or. e%ppraisal e%ppraisal simplifies simplifies and enhances enhances the employee performance performance appraisal appraisal process. process. t has features that mae it’s use easy and helps both HR administrators and line managers produce better results more 2uicly. t provides an organization #ith a po#erful tool to help develop devel op organization organization’s ’s critical talent all year round. round. t is easier to conduct e%pp e%ppraisals raisals by automating the time*consuming process of administrating employee performance revie#s. t is flexible and can be customized to suit an organization’s needs. +he comprehensive #orfl #or flo# o# maes maes it easy for human human resourc resourcee profess profession ionals als to manage manage the process process by approving appraisal forms, monitoring the status and sending automatic email notifications to managers. e%ppraisal templates and robust content options, help appraisees to create appraisals 2uicly and professionally. I.
Fatur#: •
intranet*based
•
>ase of use
•
1ophisticated #orflo#
•
7entralized repository
•
Fser customizable performance appraisal forms
•
%utomated email notification and reminder notice
•
7omprehensive status and action vie# for HR manager
55
•
7ompetency*based text ans#ers and'or range scale
•
1elf*rating capabilities
•
7ontinuous performance &ournal entries throughout the year
•
mport employee data from the HR1 system of the organization
•
II.
1coring and #eighting capabilities
&!7"t#: •
%ppraisals are processed more 2uicly and efficiently.
•
%ppraisal data is received by concerned superior'manager in virtual real*time #hen the appraisal is uploaded into e%ppraisal system.
•
t can be attached to the e*+arget 1etting #herein it imports data of e*+arget 1etting and the #eightage and scoring is done based on the e*+argets e*+argets decided mutually by the appraisee and his manager.
•
%ppraisals %ppra isals cannot be misplaced misplaced or lost, as is possible possible #ith hardcopies. hardcopies. %ppraisals %ppraisals can be stored electronically and available online.
56
CHAPTER3 RESEARCH METHODOLOG)
Ob1t"# o7 th #tudy To 1arry out th #tudy o7 Sahara Grou0@ I 7ra*d th 7o$$ow"!' ob1t"#
=. +o identify the techni2ue of erformance %ppraisal follo#ed in 1ahara 0roup. . +o assess employee attitude to#ards the present appraisal system in 1ahara 0roup. 9. +o provide suggestions C recommendations from the study conducted at 1ahara 0roup.
6aret Research 5esign
?
5escriptive type
5ata 1ources
?
rimary C 1econdary 1ource
Research %pproach
?
1urvey method
Resea earrch nst nstrrument
?
Buestionnaire and interv rviie#s
+ypes of Buestions
?
-pen
1ample 1ize
?
=;; samples
1tatistical tools used
?
6ean, median
ended,
5ichotomous
closed
ended,
67Bs,
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DATA COLLECTION:
5ata #ources: %"(
%""(
S1o!dary Data
*
through n nternet
*
&ournals
Pr"*ary Data
* through Buestionnaire
* 7ontact 6ethod
* ersonal nteraction
DATA PRESENTATION AND ANAL)SIS:
=.
ar graphs
.
ie 5iagrams
9.
5oughnuts
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CHAPTER3; DATA ANAL)SIS E*0$oy# O0"!"o! a# to th Pur0o# o7 Pr7or*a!1 A00ra"#a$
16% 16%
15% 16%
20% 20% 15%
18% 18%
C om ompensation Decision
P romotion Decision
Train rainin ingg & De Devv elop elopme ment nt Prog Progra rams ms
Fee Fee! !ac" ac"
Personal Dev eellopment
#rgani$ational ro tt''
Pr7or*a!1 #ta!dard# yard#t"1#
16%
Yes No 84%
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Awar!## o7 t1h!"u o7 Pr7or*a!1 A00ra"#a$ b"!' 7o$$owd at Sahara Grou0 a*o!' E*0$oy#
28%
Yes No (2%
Nu*br o7 E*0$oy# b"!' a00ra"#d dur"!' th"r #r"1 0r"od
)2%
Yes No 68%
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E*0$oy# o0"!"o! a# to th 0r#!t a00ra"#a$ #y#t*
2%
)0%
24%
44%
F*ll+ sa sattis,ie
- aattis,ie
Can Can.t sa sa+
Dissa ssatis,ie
E*0$oy 0r10t"o! a# to th 7ru!1y o7 a00ra"#a$
0%
6%
2% #nce *ring t'e -ervice perio Contin*o*s Never Can.t -a+ /2%
61
I7 1o!t"!uou# a00ra"#a$ a00ra"#a$ what #hou$d b th 'a0 'a0 btw! two a00ra"#a$ a00ra"#a$ 0r"od
20% )6%
*arterl+ al, Yearl+ Yearl+
44%
How Pr7or*a!1 A00ra"#a$ a771t# th 0rodu1t""ty o7 th *0$oy#
40 35 30 25 Productivity 20 15 10 5 0
38 28
21 Motivated
12
12 10 5 0
+ ve Feedback
- ve Feedback Feedback
24
ho #hou$d do th a00ra"#a$
Neutral
Indifferent e!otivate d
62
1#"
24" $u%erior 0"
Peer $ubordiante
8" 4" 48"
$elf &%%rai'al (on'ultant' &ll of t)e above $u%erior + Peer
.
Do# a00ra"#a$ h$0 "! 0o$"#h"!' #"$$# a!d 0r7or*a!1 0r7or*a!1 ara
1#" 10"
Yes No Somewhat
*4"
f the process of appraisal does not lead to the improvement of the sills and proficiency of the emplo employee yees, s, the very very purpo purpose se of apprai appraisal sal becom becomes es illogi illogical cal.. n the survey conducted it #as observed that nearly UK Z of the respondents agree that erformance %ppraisal does leads to polishing the sills of the employees. 4early =; Z of the respondents vie# that it does not serve this purpose and around =: Z #ere not able to respond as to #hether it serve any such purposes or not. Do# 0r#o!a$ b"a# 1r0#3"! wh"$ a00ra"#"!' a! *0$oy
63
18" Yes No
82"
n the process of appraising, both the parties are human being, that is, the one #ho is being apprised and the other #ho is appraising. +hus, there bound to be sub&ectivity involved, be it an ob&ective #ay of appraising. +hus, #hen #hen ased from among the sample size of I; respondents, respondents, as huge as P Z respon resp onden dentt said that person personal al bias bias do creep creep in #hile #hile apprai appraisin sing g an indivi individua dual. l. Hence, it is inevitable to say that personal liings do not come in the process of appraisal. t is the extent to #hich the appraiser manages it so that it does not become very partial and bias.
I7 '"! '"! a 1ha!1 1ha!1@@ wou$d wou$d *0$oy *0$oy ## $" $" to r"w r"w th th 1urr 1urr!t !t a00ra a00ra"#a "#a$$ t1h!"u
24"
Yes No
4"
Can't Say *2"
A00ro0r"at *thod o7 1o!du1t"!' th 0r7or*a!1 a00ra"#a$
64
4"
#"
12"
0"
,ankin- Met)od 20"
Paired (o!%ari'on (ritical Incident M./ &''e''!ent (entre
58"
3#0 e-ree
Do# 0r7or*a!1 a00ra"#a$ $ad# to "d!t"7"1at"o! o7 h"dd! 0ot!t"a$
4"
Yes No
+#"
65
CHAPTER3/ CONCLUSION AND SUGGESTION CONCLUSION •
+he appraisal process calls for investment of time and energy by respective people, and hence involves cost as #hole. +he costs are incurred on preparing and designing the apprai appraisals sals,, conduc conductin ting g revie# revie#s, s, copyi copying ng ' printi printing ng ' fillin filling g ' distri distribut buting ing the appraisal forms, communicating the appraisal process, training the appraisers as #ell as ap appr prais aisees ees in th thee pr proc ocess ess,, ha hand ndli ling ng po post st ap appr prai aisal sal gr grie ieva vanc nces es et etc. c. Henc Hencee management needs to decide ho# much time and money they #ant to allocate for this purpose and should critically evaluate the entire process.
•
roper appraisal forms should be maintained.t should be noted that the appraisal form for each &ob position should be different as each &ob has different no#ledge and sill re2uirements. +here should not be a common appraisal form for every &ob position in the organization. urther, the appraisal form should not lead to duplication dupl ication of any information. information. nstead, detailed appraisal of the employee’s employee’s #or must be done 3 #hich must incorporates both the #or related as #ell as the other personal attributes that are important for #or performance
•
>mployees feel that there is an element of bias in the appraisal process .1uch factors demotivates them. % neutral panel of people should do the appraisal and to avoid sub&ectivi sub&ect ivity ty to a mared mared extent extent,, ob ob&ect &ective ive method methodss should should be employ employed ed having having 2uantifiable data.
•
+her +h eree is a lo lott of ga gap p be bet# t#een een t# t#o o ap appr prai aisal sal pr prog ogra rams ms.+ .+he he time time pe perio riod d fo forr co cond nduc ucti ting ng th thee ap appr prai aisal sal shou should ld be revise revised, d, so th that at th thee ex exerc ercise ise be beco come mess a continuous phenomenon.
•
+here is lac of transparency in the organization about the performance appraisal procedure. +ransparency into the system should be ensured through the discussion about the employee’s performance #ith the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
66
•
%s soon as a performance is declined or affected, openly discuss #ith the employee to try to determine the cause of affecting the performance.%llo# self*evaluation.
5epending on the si/e and nature of +usiness" management should introduce a suita+le apprai app raisal sal system. system. The manageme management nt should should try to have have a +alanc +alanced ed +lend +lend of severa severall systems incorporating the +enefits ,hile avoiding the comple$ities of each method. m ethod.
SUGGESTIONS -. +he traditional traditional methods seem to be arbitrary in nature and should should be avoided avoided in todayDs todayDs
scenari scen ario o #here #here employ employees ees are more more empo#e empo#ered red and their their suggest suggestion ionss are sought sought in management decisions. Hence the transparent systems should be given preference over the non*transparent ones.
9. +he automated systems call for higher investment in terms of money though reduced
time and increased overall effectiveness.
. +he management should communicate the importance and benefits of this process to all
the employees and to avoid the negative emotional feelings, #orrying depression, stress, and anguish on part of those giving as #ell as receiving appraisals.
;. +ra +ransp nsparen arency cy into into the sy system stem should should be ensure ensured d throug through h the discus discussio sion n about about the
employee’s performance #ith the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
/. +he &ob and role expected from the employees should be decided #ell in advance and
that too #ith the consensus #ith them.
<. 6ae 6ae the employ employee ee a#are a#are of perfor performan mance ce standa standards rds,, ob&ect ob&ective ives, s, expecta expectatio tions ns and
specific areas of accountability. =. Revie# actual #or performance in relation to the performance plan, ob&ectives and
outcomes.
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P. %llo# the employee to engage in self*evaluation
LIMITATIONS %-(PAUCIT) OF TIME
+hee bu +h busy sy sched schedul ulee of the the co cont ntact act pe perso rsons ns faile failed d to pr prov ovid idee en enou ough gh time time to me fo forr discussion.
%9(CONFIDENTIALIT)
+he company #ithheld a lot of information that they termed as confidential, so #as not able do analyze the data.
%(PRO&LEMS %(PRO&LEM S IN COLLECTING DATA
%s #as not able to get enough data from 4%6%R, so collected the data from the various reports published by 1ahara 0roup
%;(LACB OF SECONDAR) DATA
t had been a problem collecting secondary data on divisions lie HR and ublic relations as there #ere no release in any publications or #as there a mention of it on company #ebsite e.g. performance appraisal, improved performance.
(I) %lthough %lthough all attempts attempts #ere made to mae this an ob&ecti ob&ective ve study, biases on the part of respondents might have resulted in some sub&ectivity. (:)+hough, no effort #as spared to mae the study most accurate and useful, the “sample 1ize! selected for the same may not be the true representative of the 7ompany, resulting in biased results. (U)+his being the maiden experience of the researcher of conducting study such as this, the
68
possibility of better results, using deeper statistical techni2ues in analyzing and interpreting data may not be ruled out.
CHAPTER3< ANNE5URE =. 8hat in your opinion erformance %ppraisal leads to(ran these, giving : pts.to the max. and = pt. to the min.)?
a). 7ompensation 5ecision b). romotion 5ecision c). +raining and 5evelopment rogrammes d). eed bac
e). ersonal 5evelopment
f). -rganizational 0ro#th . 1hould there be any performance standards ' yardstics before starting appraising an individualT $es 4o 9. %re y you ou a#are of the system of erformance %ppraisal being follo#ed follo#ed in your organizationT
$es
4o
K. Have y you ou ever been appraised appraised during your service periodT $es 4o I. Ho# do you find the the present appraisal systemT a) ully 1atisfied b) 1atisfied c) 7an’t 1ay
d) 5issatisfied
:. 1hould the appraisal process be? a) -nce during the service period
b) 7ontinuous
c) 4ever
d) 7an’t 1ay
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U. 8hat in your opinion should be the time period of conducting continuous appraisalT a) Buart Buarter erly ly
b) Half Half $ear $early ly
c) $early
%ny specific reasonVVVVVVVVVVVVVVVVVVVV.. VVVVVVVVVVVVVVVVVVVV..
P. Rate the follo#ing capability re2uirements for different levels of &obs in the appraisal system being follo#ed at 1ahara 0roup. 6ry Good
Good
Sat"#7a1tory
U!#at"#7a1tory
T1h!"1a$ No! 3 T1h!"1a$ D1"#"o! Ma"!'
&ha"oura$
O. 8ho in your opinion should appraise the employeeT a) 1upe 1uperi rior or
b) e eer er
c) 1ubordinates
d) 1elf %ppraisal
e) 7onsultant
f) %ll of the above
=;. 5oes the appraisal system helps in polishing the sills or performance areaT a) $es b) 4o c) 1ome#hat ==. 5o you thin personal bias creeps in #hile appraising an individualT a) $es
b) 4o
=. f given a chance or an opportunity #ould you lie that the current appraisal procedure should be revie#edT
a) $es
b) 4o
c) 7an’t 1ay =9. 8hat according to you should be the appropriate method for conducting performance appraisalT
70
a) Rating the the employe employeee on number number of traits along along #ith #ith the range range of performa performance nce for each by the supervisor. b) or every trait, each subordinate is paired #ith and compared to every other subordinate. c) Revie#ing Revie#ing employees employees on the the basis basis of of identified identified specific specific examples examples of of good good or poor performance. d) 1etting 1etting specific specific measurable measurable goals goals #ith each each employee employee and periodically periodically revie#ing the progress made. e) Revie#ing performance through case studies, presentations, role playing, etc. for future performance. f) Receiving Receiving feedbac feedbac from people people #hose #hose vie#s vie#s are considered considered helpful helpful and relevant including the appraisee himself.
=K. 5oes erformance %ppraisal leads to identification of hidden potential of the employeesT
a) $es
b) 4o
71
MANAGEMENT MANAGEME NT &) O&JECTI6ES APPRAISAL FORM
-b&ective =? 1tandard for acceptable performance? Results?
1pecial factors and other comments?
-b&ective =? 1tandard for acceptable performance? Results?
1pecial factors and other comments?
-b&ective =? 1tandard for acceptable performance? Results?
1pecial factors and other comments?
-b&ective =? 1tandard for acceptable performance? Results?
1pecial factors and other comments?
72
<+ d'r a00ra"#a$ Pro1##
73
e%ppraisal (using alanced 1corecard method) for managerial level A00ra"#a$ For* !a* o7 th r"wr, you have logged in as R"wr.
I!"t"atd I!"t"atd &y \name of appraisee] on \date] \time] ending #ith 67 (name of HR person)
4ame
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Re2uest 4o. ? 4o. ? [[[[[[[[[[[
Statu# : Ratd by R"wr
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74
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A00ra"#a$ Su**ary a!d R"w R"w Id!t"ty
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\email 5 of appraisee] appraisee] \email 5 of appraiser] appraiser] \email 5 of revie#er] revie#er] \email 5 of HR person] person]
R1o**!dd &y A00ra"#r
R1o**!dd &y R"wr
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Ora$$ Rat"!' S1or Rat"!'
Dat
\date] \time] \date] \time] \date] \time]
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FEED&ACB FORM Fdba1 For*
+$ease gi'e us your #ere#tions #ere#tions o* ,name o* o* the a##raisee- in the areas o* om#eteny and res#ons res# onsibi ibi$it $ityy $isted $isted be$o! be$o! $ae $ae an . in the a##ro# a##ro#ria riate te s/uare s/uare on the tab$e0 tab$e0 !here !here 1 indiates india tes that you think that this is an area o* #artiu$ar #artiu$ar strength strength and e2e$$ene3 4 indiates that you #erei'e this #erson to be *untioning *untioning !e$$ in this area3 5 indiates tha thatt you #erei'e this to be a de'e$o#ment area *or him6her7 Na* o7 th A00ra"#:
D#"'!at"o!:
D0art*!t:
Dat o7 Jo"!"!'
Fdba1 r#0o!d!t !a*:
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7ompetency ' %rea of responsibility = 6anages attention Manages attention through a om#e$$ing 'ision that brings others to a #$ae they ha'e not been be*ore Creates a sense o* #ur#ose3 de*ines rea$ity in the $arger onte2t3 insti$$s shared 'a$ues and be$ie*s Estab$ishes standards and om#e$$ing as#irations that he$# the )e#artment ahie'e its ne2t stage o* de'e$o#ment Ats as ata$yst0 ins#iring and enab$ing others to at 6anages trust Ins#ires trust and on*idene through onsisteny0 re$iabi$ity and integrity3 de$i'ers on #romises3 ro$e mode$s the 8ni'ersity 6 )e#artment 'a$ues 9 6anages self 9no!s and understands understands his6her o!n strengths0 ski$$s0 and !eaknesses and manages these e**eti'e$y Res#onds onstruti'e$y to ritiism and #ersona$ *eedbak Takes res#onsibi$ity *or his6her o!n de'e$o#ment and ations Is se$* moti'ated0 #ersistent0 and resi$ient Reognises the im#at o* his6her o!n beha'iour beha'iour on others Is ab$e to #er*orm onsistent$y in a range o* situations under #ressure0 and to a##ro#riate$y ada#t beha'iour
9 5evelopment area
%rea of competence
= %rea of excellence
; Fnable to comment
77
Retains *ous in the *ae o* di**iu$t situations Regu$ar$y re'ie!s and im#ro'es the e**eti'eness o* his6her o!n $eadershi# K osters unity and collaboration Creates a $imate o* ommunity3 bui$ds mora$e3 sets a #ositi'e tone3 reso$'es disagreements3 *osters o$$aboration and o!nershi#3 reogni:es indi'idua$ and team ontributions3 *ai$itates team!ork 7ompetency ' %rea of responsibility I >xercises po#er effectively Takes o!nershi# and and aountabi$ity3 aountabi$ity3 em#o!ers others to at3 shares authority3 nurtures the ski$$s o* grou# members )e$egates res#onsib$y and ho$ds indi'idua$s aountab$e : >stablishes an environment conducive to learning Cham#ions ontinuous $earning at a$$ $e'e$s in the )e#artment Enourages a##ro#riate $e'e$s o* risk;taking and and inno'ation Mode$s the need *or $earning by ontinuous se$*;de'e$o#ment #ro'ides onsistent *eedbak to members o* the team on both suesses and *ai$ures )ea$s !ith team *ai$ure or error onstruti'e$y and de'e$o#menta$$y U 1olves problems Antii#ates #otentia$ #rob$ems3 identi*ies key issues and e2#$ores o#tions and #ers#eti'es in order to generate so$utions3 de'e$o#s and enourages inno'ati'e and reati'e a##roahes to #rob$ems3 ab$e to ana$yse and break do!n #rob$ems and identi*y issues and im#$iations P 6anages resources E**eti'e$y manages resoures in a <doing more !ith $ess= en'ironment3 inno'ati'e and
9 5evelopment area
%rea of competence
= %rea of excellence
age = of
; Fnable to comment
78
reati'e in de'e$o#ment and use o* resoures3 e2erises sound and res#onsib$e *isa$ management3 ab$e to identi*y and #rioriti:e areas o* s#end or resoure a$$oation3 ab$e to take hard deisions about resoure a$$oation and *o$$o! these through res#onsib$y3 ati'e$y seeks out o##ortunities to ma2imise resoures
79
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