0d0c8perf.+appraisal.2
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8/7/2019 0d0c8perf.+appraisal.2
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Amity School of Business
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Critical Incident Technique
Example:
July 20 - Sales clerk patiently attended to the
customers complaint. He is polite, prompt,
enthusiastic in solving the customers problem
July 20 - The sales assistant stayed 45 minutes
beyond his break during the busiest part of the day.
He failed to answer store managers call thrice. He
is lazy, negligent, stubborn and uninterested in work
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Critical Incident Technique
Limitation of this technique are:
Negative incidents may be more noticeable than positive
incidents.
Supervisors have a tendency to unload a series of complaints
about incidents.
Results in very close supervision which may not be liked by the
employee. The recording of incidents may be a chore for the manager
concerned who may be too busy or forget to do it.
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Ex:A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test 1
CRITICAL INCIDENT METHOD
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Behaviorally Anchored Rating Scale(BARS) Process
1) Generate critical incidents (examples of good and poor job
performance)
2) Place Critical Incidents Into performance dimensions (e.g.,
Responsibility, Initiative, Safety)
3) Retranslation Step (do step # 2 again with a separate group of job
experts. Discard incidents where disagreement exists as to whichdimension in which they belong)
4) Calculate the mean and standard deviation of each critical incident
(discard those with a large standard deviation)
5) Place critical incidents on a vertical scale
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Should have following Features
Areas of performance has to evaluated
Scales are anchored by description of
actual job performance All dimensions of performance to be
evaluated are based on observable
behaviors
Raters more likely committed to final
product
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BARS (Pros and Cons) Process involves various employees (increasesthe likelihood of usage)
Job specificity (different BARS need to be
developed for each position)
Not any better at reducing common rating scale
errors (e.g., leniency, halo)
Time consuming
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FIELD REVIEW ( fig. 10.9)In this method, a senior member of the HRdepartment or a training officer discusses
and interviews the supervisors to evaluateand rate their respective subordinates. Amajor drawback of this method is that it isa very time consuming method. But thismethod helps to reduce the superiorspersonal bias.
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Confidential Report
Descriptive report
Prepared at the end of the year
Prepared by the employees immediate supervisor
The report highlights the strengths and
weaknesses of employees
Prepared in Government organizations
Does not offer any feedback to the employee
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Essay Evaluation
The rater is asked to express the strong as well as
weak points of employees behavior
The rater considers the employees : Job knowledge and potential
Understanding of companys programs, policies,
objectives etc
Relation with co-workers and supervisors
Planning, organizing and controlling ability
Attitude and perception
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Essay Evaluation
This method has the following limitations:
Highly subjective Supervisor may write biased essay
Difficult to find effective writers
A busy appraiser may write the essay hurriedly
without assessing properly the actual performance ofthe worker
If the appraiser takes a long time it becomes
uneconomical from the view point of the firm
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Performance Points Behavior
Extremely
good
7 Can expect trainee to make valuable suggestions
for increased sales and to have positive
relationships with customers all over the
country.
Good 6 Can expect to initiate creative ideas for improved
sales.Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods
in time.
Below average 3 Can expect to unload the trucks when asked bythe supervisor.
Poor 2 Can expect to inform only a part of the
customers.
Extremely poor 1 Can expect to take extended coffee breaks &
roam around purposelessly.
BEHAVIORAL ANCHORED RATING SCALES
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Ranking and comparative methods STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques ofperformance appraisal. In this method, the appraiser
ranks the employees from the best to the poorest on thebasis of their overall performance. It is quite useful for acomparative evaluation.
PAIRED COMPARISONA better technique of comparison than the straightranking method, this method compares each employeewith all others in the group, one at a time. After all thecomparisons on the basis of the overall comparisons, theemployees are given the final rankings.
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As compared to A B
C
A + -
+
B - +
-
C + -
+
For the Trait Quality of
work
A - +
+
B + -
+
C + +
As compared to A
B C
For the Trait Creativity
+
+
++
+
+
+
+ +-
-
-
--
- -
- -
Person rated Person rated
RANKING EMPLOYEES BY PAIRED COMPARISON METHOD
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FUTURE-ORIENTED METHODS Given by Peter F. Drucker in 1954.
Reflects a management philosophy which values and utilisesemployee contributions.
Steps in MBO:1. Establish the goals each subordinate is to attain( sometimes
collectively set by superiors and subordinates)
2. Setting the performance standards for the subordinates inspecified time period.
3. Actual level of goal attainment is compared with the goals agreed
upon. ( causes are explored to assess the training needs)4. Establishing new goals specifically with the subordinates who
easily attained previously set goals. New strategies are alsoexplored. Then, the whole step is repeated.
MBOMBO ( exhibit 10.5)( exhibit 10.5)
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Management by Objectives (MBO)
MBO emphasizes collectively set goals that are
tangible, verifiable, and measurable
Focuses attention on goals rather than on methods
Concentrates on Key Result Areas (KRA)
Systematic and rational technique that allows
management to attain maximum results from
available resources by focusing on achievable
goals
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Key Elements Of MBO
Arranging organizational goals in a means-ends
chain
Engaging in joint goal setting
This process has the following steps:
Identify KRAs
Define expected results
Assign specific responsibilities to employeesDefine authority and responsibility relationship
Conducting periodic progress review
Conducting annual performance review
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Psychological appraisal
Large organisations employ full-time
industrial psychologists. They assess an
individuals future potential.
Consists of:
In-depth interviews,
Psychological tests,
Discussions with supervisors,
Review of other evaluations.
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The psychologist then writes an evaluation of theemployees intellectual, emotional, motivationaland other related characteristics that suggest
individual potential and may predict futureperformance.
The evaluation may be a specific job opening forwhich the person is being considered, or it maybe a global assessment of his or her futurepotential.
Placement and development decisions may bemade to shape the persons career.
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Assessment centres (Exhibit 10.6)
First developed in US and UK in 1943.
It is a central location where managers may cometogether to have their participation in job-related
exercises evaluated by trained observers. The principal idea is to evaluate managers over a period
of time(1-3 days), by observing their behaviour across aseries of select exercises or work samples.
Assesses are requested to participate in in-basket
exercises, work groups( without leaders), computersimulations, role playing, etc. which require the sameattributes for successful performance, as in the actual
job.
Self-appraisal and peer evaluation are also noted forfinal rating.
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The characteristics normally assessed are:
1. assertiveness,
2. Persuasive ability,
3. Communication skills,4. Planning and organisational ability,
5. Self-confidence,
6. Stress management,
7. Energy levels,8. Emotional stability,
9. Creativity,etc.
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SUPERIOR
CUSTOMERS
SUBORDINATES
PEERS
SELF
TEAMTEAM
3600
Appraisal
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PRE-REQUISITES FOR 3600
APPRAISAL Top management support
Some prior experimentation and positive
experiences
Clear organizational philosophy and policy
- Purpose, phases, components,
implementation plan, etc.
Design team that designs and monitors it Communication plan.
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BENEFITS OF 3600 SYSTEMS More objective
Suits flat structures, multiple reporting,
matrix structures and modern organizations
Enables better planning of performance
Provides opportunity to improve quality of
inputs and services to internal customers
Points out supervisory biases
Provides scope to get new ideas
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BENEFITS OF 3600 SYSTEMS (contd.)
More authentic data for decisions
Developmental tool Team building tool
More involving and participative
Suits new organizational cultures