TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

HUMAN RESOURCE MANAGEMENT

PERFORMANCE MANAGEMENT

By : Sakshi Goel( Management )

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

DEFINITIONPerformance management is the process of planning performance , appraising performance, giving its feedback and counseling of an employee to improve his performance. Thus, performance management involves different activities – planning performance , that is what an employee is expected to achieve with a set of given resources and within a time frame , appraisal of whether the given result has been received or not, and then giving feedback to the employer concerned about where he lacks, its reason and counseling him how he can improve his performance.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Features Of Performance Management

• Performance measure is based on the critical success factors derived directly from the corporate and business strategy.

• It is a continuous process of monitoring and feedback rather than one-off annual event.

• It involves effective use of technology in conveying desired competencies and in monitoring , collecting and giving feedback

• It emphasizes on comprehensive training of managers not just their own development

• It is a dynamic system that is suitable for changing workplace realities.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

PERFORMANCE PLANNING Its is first step to performance management.

It is the process of determining what and how a jb is to be done in such a manner that both the employee and his superior understand what is expected from employee and how success is defined and measured.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

PERFORMANCE APPRAISALIt is the process of evaluating the performance and

qualifications of the employees in terms of the requirement of the job for which he is employed., for the purposes o administration including placements, selection for promotion, providing financial rewards and other actions which require differential treatments among the members of a group as distinguished from actions affecting all members equally.

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Performance appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development.Appraisal is the evaluation of worth, quality or merit. In the organization context, performance appraisal is a systematic evaluation of personnel by superiors or others familiar with their performance.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Objectives Of Performance Appraisal

• Salary increase• Promotion• Training and development• Feedback• Pressure on employees

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Process Of Performance Appraisal

• Defining objectives of appraisal• Defining appraisal norms• Designing appraisal programme• Implementing appraisal programme• Appraisal feedback• Post appraisal actions

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Methods Of Performance Appraisal

Traditional Methods

• Ranking method• Paired comparison• Grading• Forced distribution

method• Forced choice method• Checklist method• Graphic scale methods• Essay methods• Field review method• Self appraisal

Modern Methods

• Appraisal by result or by objectives

• BARS( Behaviorally Anchored Rating Scales)

• Assessment centers• 360-degree appraisal

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

POTENTIAL APPRAISAL

In the modern era of HRM, appraisal system lays greater emphasis on the development of the employees rather than on their evaluation. This is better fulfilled by the potential appraisal which involves assessing the capabilities of an employee which he possesses but that is not being utilized fully.

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A fundamental premise behind potential appraisal is that every individual has certain hidden qualities varying proportion and when these qualities are not properly tapped and utilized, these remain dominant.It is concerned with unfolding these hidden attributes. These attributes may be in the form of analytical power , creative imagination, sense of reality, ability to see future, ability to work in varied environment , risk propensity, decision making skills and so on.

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Performance Appraisal Vs. Potential Appraisal

Performance Appraisal

• A performance appraisal system judges the performance of an employee over a given period of time. It is an indication of how he has performed in the PAST, but may necessarily not be an indication of his performance in the future. Depending on his past performance, a person is rewarded suitable with an appropriate cash incentive or bonus.

Potential Appraisal

• A potential appraisal system is done to judge the capability of the person for a future role, meaning you are trying to assess a person to see whether he has the necessary skills, aptitude, attitude and competency for an increased level of responsibility and accountability or a leadership role. It can be enhanced with giving him specific T & D, or assigning him a mentor. You are trying to judge his FUTURE performance based on the potential appraisal.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Barriers To Effective Performance Appraisal

• Faulty Assumptions• Psychological Blocks• Technical Pitfalls

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Overcoming Barriers

• Adoption of contemporary appraisal system

• Objectivity in appraisal and feedback

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