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Performance appraisal practice is considered as an important management tool to manage the Human capital; in this document you find the Importance of Performance appraisal, and the plan to implement it through the best types to choose from, and also Interaction with the Industry and their feedback, through questionnaire and performance appraisal forms.

Performance appraisal practice is considered as an important management tool to manage the Human capital; in this document you find the Importance of Performance appraisal, and the plan to implement it through the best types to choose from, and also Interaction with the Industry and their feedback, through questionnaire and performance appraisal forms.

Submitted to:Prof. Libby Simon. (LLB, PGDPM, MHRM)

Group no – 7: Raktim Khakhlari (42), Prasenjit Bordoloi (38), R.Vikram choudhry (40), Ranjan Shankar Shetty (43), Manas Tiwari (30)

PERFORMANCE APPRAISAL PRACTICES IN INDIA

Acknowledgement

First we would extend our honest thank to our faculty Prof. Libby Simon (LLB, PGDPM, MHRM) for giving us the opportunity to conduct this project by providing us the excellent 3 (Three) “T‘s “(i.e., TEAM, TOPIC and TIME.)

A special thanks to a friend Mr. Rizwan Sheik (Ops Manager, Accenture) who is most responsible for allowing one of us to have a practical overview of the topic in the industry and interact with his staff, Mr Chetan Reddy and Mr Girish Ramchandran for expressing their views and thoughts.

We also thank one and all who have helped in making key decisions and discussion which allowed us to complete this project in time successfully.

Last but not least our families for extending their support.

While the project was taking its form, we realised how true the below quote is

“Coming together is a beginning.Keeping together is progress. Working together is

success.”: Henry Ford

This project is not the endeavour of individual only, but is the result of valuable time, effort and co-operation of one and all of us. So, we would like to acknowledge each other for a great teamwork, Thank You.

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: Members of Group 7

Table of Contents

Introduction............................................................................................................................................4

Basic Purpose of Performance Appraisal............................................................................................5

Employee Viewpoint.......................................................................................................................5

Organisational viewpoint................................................................................................................5

Benefits of Performance Appraisal.....................................................................................................6

REVIEW OF LITERATURE.........................................................................................................................7

PLANNING...............................................................................................................................................9

DEVELOPING EMPLOYEE PERFORMANCE APPRAISAL PLANS (EPAP)..................................................9

Principles of developing a performance appraisal plan................................................................10

Determine Major Job Duties.........................................................................................................10

Define Performance Standards for Each Duty..............................................................................11

Document Job Performance.........................................................................................................13

Evaluate Job Performance............................................................................................................13

Hold performance Discussions......................................................................................................15

Types of Performance appraisal Practises in India............................................................................17

Traditional Methods of Performance Appraisal............................................................................17

Modern Methods of Performance Appraisal................................................................................18

Primary data from the Organisations................................................................................................21

Performance Assessment & Development System (PADS)...........................................................22

APPRAISAL & DEVELOPMENT FORM FOR N, M & L Grades NESTLE INDIA LTD.,...........................26

PERFORMANCE APPRAISAL FORM FOR SWIFT COVER INSURANCE PROCESS...................................29

GRADING FORM FOR SWIFT COVER INSURANCE PROCESS..............................................................30

Interaction with the Industry, based upon the above performance appraisal forms.......................31

QUESTIONNAIRE ON PERFORMANCE APPRISAL (Performa).........................................................32

Discussion.............................................................................................................................................34

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Conclusion............................................................................................................................................36

References............................................................................................................................................38

IntroductionThe employee performance appraisal helps to identify, evaluate, and develop

an individual's performance. It is a motivation tool that encourages employees to have high performance levels.

Validations of hiring practices - are the right people in the right positions? Provision of an objective measuring tool on which compensation decisions, and

promotions can be based Identification of training needs - individually, departmentally and organizationally Identification of employees who have the potential for advancement or who might be

better suited in other areas of the organization

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.

The Modern Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development, so that the performance of the company increased.

Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance or the lack thereof, has a profound effect on both the financial and program components of any organization.

The first list is the vital foundation to the process of performance appraisal. Time spent developing and discussing what employees do well is never wasted. In the rush of everyday activities, supervisors often focus on what an employee is doing wrong. How often

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do we take time to stop and give carefully thought out compliments? Not infrequently, employees will visibly smile when honestly complimented by their supervisor.

Employees who feel that they are performing well in at least one area of responsibility, and feel validated by their supervisors, are more likely to want to improve their performance in other areas, too.

Basic Purpose of Performance Appraisal

Effective performance appraisal systems contain two basic systems operating in conjunction: an evaluation system and a feedback system. The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The main aim of the feedback system is to inform the employee about the quality of his or her performance. (However, the information flow is not exclusively one way. The appraisers also receive feedback from the employee about job problems, etc.) One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employee and the organization.

Employee ViewpointFrom the employee viewpoint, the purpose of performance appraisal is four-fold:

Figure 1 : Employee Viewpoint

Organisational viewpoint

From the organization's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability. For decades it has been known to researchers that one of the chief causes of organizational failure is "non-alignment of responsibility and accountability." Non-alignment occurs where employees are given responsibilities and duties, but are not held accountable for the way in which those responsibilities and duties are performed. What typically happens is that several individuals or work units appear to have overlapping roles. The overlap allows - indeed

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actively encourages - each individual or business unit to "pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is accountable for anything. In this event, the principle of accountability breaks down completely. Organizational failure is the only possible outcome. In cases where the non-alignment is not so severe, the organization may continue to function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned organization may run, but it will be sluggish, costly and unreliable. One of the principal aims of performance appraisal is to make people accountable. The objective is to align responsibility and accountability at every organizational level.

Benefits of Performance Appraisal

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. Said one employee of a large organization after his first formal performance appraisal, "In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing." The value of this intense and purposeful interaction between a supervisors and subordinate should not be underestimated.

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Figure 2 : Process of Performance Appraisal

REVIEW OF LITERATURE

Policy Capturing as an Approach to Understanding and Improving performance Appraisal: A Review of the Literature

In this paper reviews the research dealing with the use of policy capturing as a technique to understand and improve the performance appraisal process. Major methodological problems are emphasized, along with directions for future research. A number of practical implications and applications are discussed.

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Charles J. Hobson & Frederick W. Gibson (1983)

A Review and Analysis of Performance Appraisal Processes. A Review of the Literature. Professionalism in Schools Series.

This report consists of a review of the literature on performance appraisal with special attention to the literature on certificated personnel in public education systems in the United States and Canada. The literature review shows that there are two predominant approaches to conducting performance appraisals and two main uses. Approaches focus on the "process" and "outputs" of professional work. Uses are "formative" and "summative." In "formative" uses, appraisal information is used for recognition, guidance, coaching, development, or problem correction. In "summative" uses, appraisal information is used for administrative decisions on personnel.

Ondrack D. A.

Oliver C. (1986)

The role of interpersonal affective regard in supervisory performance ratings: A literature review and proposed causal model

This literature review reveals that supervisors' positive affective regard for subordinates is associated frequently with higher performance appraisal ratings, and with other findings such as greater halo, reduced accuracy, a better interpersonal relationship, and a disinclination to punish poor performance. Moreover, most investigators have simply assumed that the effects of liking constitute sources of bias in Performance Appraisals, and the causal nature of the observed relationships needed to be clarified. Suggestions are made for integrating the model with a developmental approach, and implications are drawn for employment test validation and the investigation of test bias.

LEFKOWITZ J. (1992)

Rafter training for performance appraisal: a quantitative review

Performance appraisal literature has focused on rafter training as a means of improving performance ratings. The present study provides integration and a quantitative review of the rather training literature. A general framework for the evaluation of rafter training is presented in terms of four rating training strategies and four dependent measures.

WOEHR D. J. (1992)

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Participation in the Performance Appraisal Process and Employee Reactions: A Meta-Analytic Review of Field Investigations

The relationship between participation in the performance appraisal process and various Employee reactions was explored through the meta-analysis of 27 studies containing 32 Individual samples. The overall relationships (p) between participation and employee reactions, corrected for unreliability, were 61. Over-all, appraisal participation was most strongly related to satisfaction, and value-expressive participation had a stronger relationship with most of the reaction criteria than did instrumental participation. The results are discussed within the framework of organizational justice

Brian D. CawleyLisa M. Keeping and Paul E. Levy (1998)

The Social Context of Performance Appraisal: A Review and Framework for the Future

Performance appraisal research over the last 10 years has begun to examine the effects of the social context on the appraisal process. This review articles suggests that as a field we have become much more cognizant of the importance of the social context within which the performance appraisal process operates. First, research has broadened the traditional conceptualization of performance appraisal effectiveness to include and emphasize rate reactions. Second, the influence that the feedback environment or feedback culture has on performance appraisal outcomes is an especially recent focus that seems to have both theoretical and applied implications. Finally, there appears to be a reasonably large set of distal variables such as technology, HR strategies, and economic conditions that are potentially important for understanding the appraisal process

Paul E. Levy (2004)

PLANNINGIn an effective organization, work is planned in advance. This includes setting

performance expectations and goals for individuals in order to channel efforts toward achieving organizational objectives. Involving employees in the planning process is essential to their understanding of the goals of the organization, what needs to be done, why it needs to be done, and expectations for accomplishing goals.

Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and

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encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance Management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee.

DEVELOPING EMPLOYEE PERFORMANCE APPRAISAL PLANS (EPAP)

The regulatory requirements for planning an employee’s performance include establishing the elements and standards in their EPAP (EPAP). An EPAP outlines the specific elements and standards that the employee is expected to accomplish during the rating cycle. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. In addition, EPAPs should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required.

Figure 3 : DEVELOPING EMPLOYEE PERFORMANCE APPRAISAL PLANS (EPAP)

Principles of developing a performance appraisal plan Development of a performance appraisal plan should be consistent with the following

principles:

1. Performance management is considered a process, not an event. It follows good management practice in which continual coaching, feedback and communication are integral to success. 2. The Performance Management Plan is primarily a communication tool to

ensure mutual understanding of work responsibilities, priorities and performance expectations.

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3. Elements for discussion and evaluation should be job specific – not generalized personality traits. The major duties and responsibilities of the specific job should be defined and communicated as the first step in the process.

4. Performance standards for each major duty/ responsibility should be defined and communicated.

5. Employee involvement is encouraged in identifying major duties and defining performance standards.

6. Professional development should be an important component of the plan.7. The formal evaluation period should be long enough to allow for full

performance and to establish a history such that evaluations are fair and meaningful. One year is a common evaluation period.

8. Documentation of performance will occur as often as needed to record the continuum of dialogue between supervisor and employee.

9. If formal ratings are included, they should reflect the incumbent's actual performance in relation to the performance standard for that major duty.

10. The supervisor should be evaluated on the successful administration of the plan and ongoing performance management responsibilities.

11. Training for supervisors and employees is encouraged and should be provided by the employer.

12. The Performance Management Plan should be consistent with laws which address non-discrimination.

Determine Major Job DutiesSetting clear expectations about the content and quality of the job is an essential first

step. Determining Major Job duties are those duties that are essential to the job. These duties are fundamental and critical to the job, describing what the job is really established to perform and if they are not performed, would severely impact the nature of the job. Major Job duties are distinct from marginal or secondary functions which are peripheral to the core duties. The following self explanatory questions may help you identify major job duties for specific jobs

Some things to consider in determining major job duties:

What are the primary duties of the job? What duties are essential / critical to the job? What duties are sufficiently important to the overall success that performance

below standard would result in unacceptable overall performance? What percentage of time is spent on the duty?

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If the duty is performed inadequately, what is the impact on the department? What is the consequence of error?

Are there legislative or regulatory reasons that require strict adherence and high standards of performance?

Define Performance Standards for Each Duty There may be set of common standards and behaviours that are expected from

everyone. For example, all supervisors may be expected to perform similarly around several functions, or everyone in the unit will be held to the same standards around teamwork, customer service, etc. In cases like this, you might want to make a list of the common standards that apply and attach to each individual's performance appraisal plan.

Here are some of the Examples for the Performance Standards for Each Duty:

1. Leadership:

Communicates a vision of the future and moves self and others toward it through shared goal setting.

Influences others to accomplish / achieve desired goals. Guides others through change. Adapts style to the situation and the person. Obtains commitment and cooperation from others. Maintains open communication. Fosters an environment that encourages innovation, risk taking, ownership,

learning and growth in others. Utilizes skills and abilities of others effectively. Delegates responsibilities appropriately. Provides an environment of motivation. Manages performance of staff.

2. Team Orientation:

Works effectively with others. Actively contributes to the achievement of group and organizational goals. Accepts shared responsibility and ownership of projects. Maintains open communication among team members. Utilizes strengths of individuals within group to the benefit of the team.

3. Customer Service:

Projects a customer orientation – is customer focused.

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Assumes ownership and responsibility for the needs of the customer. Makes effective decisions, balancing organizational needs and customer

needs.

4. Problem Solving / Decision Making:

Analyzes and solves problems within realistic time frames. Makes timely and effective decision on the basis of available information. Involves the appropriate people in defining and resolving a problem. Supports decision with facts and rationale.

5. Interpersonal Communication:

Listens actively to others. Asks appropriate questions for clarification. Gives and receives feedback. Is aware of own and other's communication style and makes adjustments as

necessary. Encourages and is receptive to suggestions and solutions from others. Recognizes and manages conflict effectively.

6. Performance Management:

Makes appropriate hires; trains and coaches toward full performance. Identifies and encourages two-way communication regarding responsibilities,

expectations, goals and performance. Provides ongoing, balanced feedback on performance. Distinguishes between good and poor performance and acts accordingly.

Document Job PerformanceIt is important to document performance over the entire year. Good documentation

procedures help to reduce the possibility of many rating errors (contained in next section, Evaluate Job Performance). Be sure to make notes of good as well as unsatisfactory performance. Good documentation is important in justifying evaluations and resultant administrative decisions.

Effective documentation is:

Accurate

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Specific Consistent A record of a discussion – never done in isolation Factual, not inferential

Performance documentation may focus on:

1. Actions of the employee: "Roshan left confidential documents on top of the duplicating machine even after he had been warned not to."

2. Results of job performance: "Roshan saved the department over Rs. 5,000/- by developing new procedures to deal with photo-copying."

Documentation should be in written form and shared with the employee.

Evaluate Job Performance

When you start evaluating employee performance, you can pick out the weak from the strong. It will help your company to become more productive and have happy employees. Your employees will see your general interest in them and their needs. The performance evaluation process should be equitable, accurate and timely. Showing awards and recognition help average performers become strong performers. The overall goal of having a performance evaluation is to become a successful company with benefits for everyone!

Many companies take the time to do a six month or yearly evaluation on their employees. This is a great idea to assess employee performance, set goals, and determine compensation. Employers who do a routine evaluation of employee performance reap tremendous benefits. It sets certain standards for the company and the employees:

Expectations for employees and company. Regular feedback obtained from both. Reward good work; and discuss shortfalls in performance. Open communication to discuss employee performance and keeps the needs of

the workforce in check.

When you are evaluating employee performance, it is a great time to address problems and find solutions for them. Having documentation of issues that have arisen with employees will help keep your company out of legal battles if that employee leaves the company on bad terms. Having that written proof before the employee leaves, goes a long way in court.

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Starting the employee evaluation process to address their performance requires a few plans you need to have in place. You need to have some performance standards and goals set up so you can evaluate each employee's performance against it.

Performance Standards.

The performance standards are expressions of the performance threshold(s), requirement(s), or expectation(s) that must be met for each element at a particular level of performance. They must be focused on results and include credible measures such as:

1. QUALITY:

Quality addresses how well the employee or work unit is expected to perform the work and/or the accuracy or effectiveness of the final product. It refers to accuracy, appearance, usefulness, or effectiveness. Measures can include error rates (such as the number or percentage of errors allowable per unit of work) and customer satisfaction rates (determined through a customer survey/feedback).

2. QUANTITY:Quantity addresses how much work the employee or work unit is expected to

produce. Measures are expressed as a number of products or services expected, or as a general result to achieve.

3. TIMELINESS:Timeliness addresses how quickly, when, or by what date the employee or

work unit is expected to produce the work.

4. COST-EFFECTIVENESS:Cost-effectiveness addresses cost control. These should address cost-

effectiveness on specific resource levels (money, personnel, or time) that can generally be documented and measured. Cost-effectiveness measures may include such aspects of performance as maintaining or reducing unit costs, reducing the time it takes to produce or provide a product or service, or reducing waste.

Hold performance DiscussionsThe Performance Review Discussion is one of the most important things that you as a

supervisor will do. This is a time to continue that all important feedback about duties, expectations and performance. This is a time to have a more formalized discussion about the employee's performance and it should reflect the day to day coaching that has transpired throughout the year. It should be undertaken with great care and preparation, and the way you handle, it can have significant impact on the morale and future performance of your staff members. Formal performance discussions should be held at least once a year. Coaching should occur on a frequent basis. Informal performance discussions are also valuable and should be held at intervals throughout the year.

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Prepare for the discussion

1. Establish date, time and suitable private location.2. Notify employee, well in advance, of the date, time, location and what to

prepare.3. Provide the employee with questions to help prepare for the discussion.4. Review responsibilities and expectations. Compare actual performance to

the performance standards. Questions to be asked you.

Conduct the discussion

1. Set the stage. 2. Establish importance by holding in a private setting with no interruptions. 3. Provide a relaxed format. 4. Have all material at hand. 5. Establish rapport immediately 6. Clearly explain the purpose and format of the discussion. 7. Start on a positive note. Set the tone as one of communication and

feedback, not one of judgment and critical evaluation. 8. Discuss responsibilities and standards, clarify expectations and compare

actual performance to performance standards. Use documentation to discuss specific instances of performance.

9. Be sure to give credit for achievement and work done well. Give specific examples and mention resulting benefit to the organization.

10. Focus on important job dimensions. Don't deal with minor infractions of little significance. Discuss them at the time they occur and then forget them, unless you see a trend developing.

11. Apply effective communication skills. 12. Encourage the employee to talk. Ask open-ended questions. Ask for the

employee's assessment, comments and suggestions. 13. Use your listening skills and don't interrupt. Check for understanding. 14. Avoid emotionally loaded expressions, such as, "You always..." and "You

never ..." 15. Focus on performance, not personality. Describe employee behaviours,

not personality traits or attitudes. Constructive feedback focuses on specific action, never on the individual. Discuss positive as well as unsatisfactory performance. Provide specific examples and explain why these behaviours are problematic or how they benefit the organization.

16. Minimize your role as a judge. Work for a collaborative environment. 17. Never compare one employee with another. 18. Check for presence of barrier or constraints to performance.

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19. Work for understanding, rather than complete agreement. Be supportive. Ask what you can do to be of greater help. Emphasis should be on improvement and learning for the future rather than criticism of the past.

20. There should be no surprises. Poor performance should have been addressed when it happened. If performance has not improved, discuss it again and develop an action plan. The Performance Review Discussion is not the place to mention it for the first time. If poor performance is significant, a Performance Improvement Plan should be considered.

21. Avoid common rating errors in forming your opinion of performance. 22. Receive feedback in a constructive manner. 23. Listen carefully and seek to understand what is being said. Don't interrupt. 24. Ask questions – get more information. Ask for examples. 25. Liberally use the phrase, "Tell me more." 26. Try not to get defensive. Behaviours that hinder one from effectively

receiving feedback are: 27. Justifying 28. Building a case 29. Denial 30. Don't take it personally. Be open-minded—there may be a better way. 31. Admit mistakes. Don't try to fix blame on someone or something else. 32. Thank the employee. 33. Review the major job duties and performance standards to determine if

changes need to be made for next year. Make any necessary changes. 34. End the Performance Review Discussion on a positive note.

Types of Performance appraisal Practises in India

The various methods and techniques used for Performance appraisal in India can be categorized as the following traditional (i.e., IT revolution) and modern methods (Current Scenario):

Traditional Methods of Performance Appraisal1. Essay appraisal method

This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an

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evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. Straight ranking method

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. Paired comparison

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

4. Critical incidents methods

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. Field review

In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. Checklist method

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

7. Graphic rating scale

In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. Forced distribution

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To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

Modern Methods of Performance Appraisal1. Assessment centres

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

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

2. Behavioural anchored rating scales

Behaviourally Anchored Rating Scales (BARS) are scales used to report performance. 'BARS are normally presented vertically with scale points ranging from five to nine. It is an appraisal method that aims to combine the benefits of narratives, critical incident incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good or poor performance.

BARS Behaviourally Anchored Rating scales is a method that combines elements of the traditional rating scales and critical incidents methods. In order to construct BARS seven steps are followed as mentioned below.

1. Examples of effective and ineffective behaviour related to job are collected from people with knowledge of job.

2. These behaviours are converted in to performance dimensions.3. A group of participants will be asked to reclassify the incidents. At this stage the

incidents for which there is not 75% agreement are discarded as being too subjective.4. Then the above mentioned incidents are rated from one to nine on a scale.5. Finally about six to seven incidents for each performance dimensions- all meeting

retranslation and standard deviation criteria will be used as BARS.

This is by far the best method used for a performance appraisal method. This is the official Performance Appraisal method of Midas.

3. Human resource accounting method

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

4. 360-Degree-Performance-Appraisals

Management by Objectives was first outlined by Peter Drucker in 1954 in his book 'The practice of Management'. According to Drucker managers should avoid 'the activity trap', getting so involved in their day to day activities that they forget their main purpose or objective. One of the concepts of MBO was that instead of just a few top-managers, all managers of a firm should participate in the strategic planning process, in order to improve the implement ability of the plan. Another concept of MBO was that managers should implement a range of performance systems, designed to help the organization stay on the right track. Clearly, Management by Objectives can thus be seen as a predecessor of Value Based Management!

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

360 degree appraisal has four integral components:

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

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.

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Figure 4 : 360 degree Performance Appraisal

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behaviour and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

MBO principles are:

Cascading of organizational goals and objectives, Specific objectives for each member, Participative decision making, Explicit time period, and Performance evaluation and feedback.

Management by Objectives also introduced the SMART method for checking the validity of the Objectives, which should be 'SMART':

Specific Measurable

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Achievable Realistic, and Time-related.

Primary data from the Organisations

1. Performance Assessment & Development System (PADS) of software engineer from Magna Infotech.

A complete software development services, IT solutions Provider. Company provides software solutions services and web solutions to its clients and is headquartered in Bangalore, with more than 1800 employees.

2. Appraisal and development form of a Marketing Executive from Nestle India Ltd.,

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards, and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. With approximately 12500 employees in India.

3. Performance appraisal form of Customer Service associate for swift cover insurance process through Accenture (BPO)

Accenture India, the wholly-owned subsidiary of the $16.65-billion global management consulting and outsourcing firm Accenture with more than 35,000 employees working in India which is more than its US headcount of 30,000 employees.

Performance Assessment & Development System (PADS)Magna Infotech.

Part-I: Personal Data

Period of Assessment From: To:

Name: Emp Code: DOJ:

Designation: Department: Recruitment Division

Education: Total Experience (Yrs):

Experience (work-specific):

Leave Availed:

Transfer Data

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http://www.nestle.in/nestlestory.aspx


Transfer Date

From Date To Date From Designation

To Designation

Education / Development Programmes attended since Joining

Programme / Workshop Title Period Conducted by

Part-II: Self-Assessment & Assessment by Appraiser & Reviewer

Section-A: Rating on Performance

Please use rating model A, B+, B, & C for assessing performance as indicated on page 3.

(A: Outstanding. B+: Above Expectations. B: Meets Expectations. C: Needs Improvement)

List Key Result Areas / Objectives / Tasks

Rating

Self Appraiser

Reviewer

Analysis on the requisite from the client and work on new strategies for improved recruitment process

Develops innovative sourcing strategies and develops strong database out of portal.

Uses contacts to gain candidate referrals Confidently approaches candidates and sells the job offer Identifies companies that hire similar jobs/ people Develops suitable advertising formats and posts jobs on

online and portals Validates and Builds a strong rapport with the candidates

and ensures their availability for the job offers Ensures effective co-ordination during the interviews and

ensures that candidates have a positive experience. Regularly follows up with the selected candidates and

get them on boarded successfully Maintains all interview and selection documents Provides weekly status reports to the manager Uploading the profiles in Radar and building the internal

database. Regularly updating the status of the candidates in the

Radar.

NOTE: Use additional sheets if required.

Section-B: Rating on Skills:

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For detailed explanation on each skill, please refer Annexure-1.

#Skills

Rating (A, B+, B & C)

Self Appraiser

Reviewer

1 Job Knowledge

2 Administrative Capability

3 Initiative & Creativity

4 Communication Skills

5 Discipline

6 Team Play

7 Customer Focus

8 Leadership Skills

9 Work Process Improvement

10 Strategic Leadership

In preparation of your upcoming performance assessment, please answer the following questions.

1. What do you see as your major achievements (a) since your joining (b) from the last appraisal?

2. Which do you feel are the areas that you need to improve upon / develop?

3. Where did you experience difficulties / constraints which affected your performance?

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4. How do you see yourself in the next one year?

Date: Signature of the Appraise

Part – III: Notes on Employee

Section-A: Significant Achievement / Setback Record

Please indicate major factors (positive and negative) reflective of Appraiser’s performance and also highlight strengths and areas of improvement. Support your views with facts.

Appraiser

Reviewer

Section – B: Overall Rating by Appraiser / Reviewer

Section-C: Employee Feedback

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Please indicate overall Rating : A B+ B C

5. In case there is a scope for planning your work in advance, please indicate broadly 3 - 5 major tasks that you propose to carry out for the coming six months.


Rating Model

Outstanding (A)

Possess exceptionally high level of achievement-orientation.

Aims and achieves beyond objectives and targets. Innovative. Possess excellent planning and

prioritizing skills. Possess great team-playing and problem-solving

skills.Above Expectations (B+)

High achievement of results. Adherence to systems and processes. Good in planning and executing work in hand. Good team player.

Meets Expectations (B)

Performance and results are generally up to the standard and meets most of the objectives but not all.

Needs guidance and help from time to time. Adheres to systems and processes.

Needs Improvement (C)

Performance short of objectives/targets. Priorities not well planned/carried out. Requires constant support and reminders. Self-initiative, planning and action orientation calls

for considerable improvement.

APPRAISAL & DEVELOPMENT FORM FOR N, M & L Grades NESTLE INDIA LTD.,

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Has the employee been given feedback? Yes No

Please record exact views as expressed by the employee in brief.

IDENTIFICATION


Name: CHETAN REDDY NALLA Date of Birth: 13.12.1983

Date of Entry: 05.11.2007 Current Position Since: 5.11.2007 Organisation Unit: NESTLE NUTRITIONAppraiser’s Name: P.K.PRAKASH Period under review: JAN-JUNE-2009 Appraiser’s

Function: Area Manager Nutrition

Performance appraisal is important to ensure that people understand what is expected from them and how their contribution fits with the overall objectives of the business. It is also helpful to establish personal development options. It is a continuous process between Reviewing Manager and Review defining and agreeing on business and personal objectives, measuring achievement through WHAT – demonstrated results and HOW – demonstrated behaviours. It covers the following:

Review the Achievement of Objectives (Part I)

Review the Leadership Competencies of the job holder (Part II).

Finalise the Overall assessment basis discussions on Part I & Part II

Discuss and agree on Development needs and Action plans (Part III)

List the specific objectives or tasks set for the job holder Indicate to what degree they have been achieved

S.No Specific Objectives/Tasks Plan Achievement

1 Coverage of Contacts2762

1396

2

A)NAN 1 2008 Rx Base per month -44

66 47

B)New Town roll out Plan for NAN By June 2009

2 1

3

NN Activities ( only Speaker Based Programmes)

4 1

A) UBM Related 2 0

B) Weaning / HMP Related 0 0

C) Immunity/Other Nutrition aspect Related

2 1

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PART I: OBJECTIVES & RESULTS


4

NN Activities ( only Scientific Film Screening)

30 15

A) UBM Related 10 7

B) Weaning / HMP Related 5 0

C) Immunity/Other Nutrition aspect Related

15 8

5A) NNI Total Registrations

2008-7025 0

B) Regular Users 2008-60% 60 60%

6Total No. of Institutions on

Nestle Supply 2008-1317 20

7Medical Delegate Management

System100%

100 % Regular Usage, Updation, Sync & Reporting. Need to make

more Paramed and Chain Pharmacy MDC’s and update call materials

regularly.

7Coaching Score Avg. for the

year: 2008 - 3236 38

8Nutrition & Product

Knowledge_2008- 7585 94

9Compliance to WHO Code, IMS

Act & Nestle InstructionsCompliant Compliant

Discussions and Feedback on:

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Long Term Development Objectives Action Plan (What, by When)

Strengths:

Communication

Initiative

Convince others

Innovation

Areas of Improvement: (please be very specific)

Prioritization of work

Result focus

Analytical Skills

Presentation Skills


Proposed Action Plan :

Coaching / development action by Line Manager: Analytical guidance regarding market intelligence.

Self development by individual: 1) Plan NNIS in HQ and RD markets in the next Month.

2) Taking Aid of internet to develop MS Office working Skills.

External training requirement: Training workshop on MS Office.

Additional Comments : (here you can also capture interests, concerns etc)

Signature of Job Holder ______________ Signature of Appraiser _____________________

DATE: 25.07.2009 DATE:

PERFORMANCE APPRAISAL FORM FOR SWIFT COVER INSURANCE PROCESS

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GRADING FORM FOR SWIFT COVER INSURANCE PROCESS

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Interaction with the Industry, based upon the above performance appraisal forms

1. Performance Assessment & Development System (PADS) of software engineer from Magna Infotech.

“The implement of PADS form for developing and motivating Human resource is an essential tool for our organisation, Now a day’s Human resource is considered as Capital so with the effectiveness of PADS the employer and employee are given similar grounds to evaluate and develop strong relationship and ensure a good rapport for the future of Human resource in the organisation.”

Mohan Kumar (Assistant Human resource Administrator) Magna Infotech.

2. Appraisal and development form of a Marketing Executive from Nestle India Ltd.,

The successful people at Nestlé India tend to share some common characteristics and strengths. They tend to be people who demonstrate optimism. They are ready for change; are ambitious, but not at the expense of others. They are willing to lead, and are self-motivated, perceptive and creative. They always think in context, and are team-player, eager to learn, communicate, network, and motivate others. They are able to deal with stress; have patience and perseverance and have credibility.

Chetan Reddy (Human Resource Executive, Nestle India Bangalore)

3. Performance appraisal form of Customer Service associate for swift cover insurance process through Accenture (BPO)

“I learn new things every day as I try to understand the requirements of the industry. The most exciting thing is the encouragement I receive to take up new assignments, which helps me grow professionally and personally. This is because Accenture encourages cross-functional movements to help one gain diverse domain expertise across the various lines of business. The Internal Job Programme provides employees the support needed to achieve their career advancement through a transparent and predictable selection process, robust feedback and more choice in terms of opportunities.”

Girish Ramchandran (Data Validation Associate, Accenture Delivery Centre for BPO Services)

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QUESTIONNAIRE ON PERFORMANCE APPRISAL (Performa)Greetings,

We the students of IFIM BUSINESS SCHOOL are conducting a study to find out how the employees feel about the way their organisations do their performance appraisal and the satisfaction to them through feedback.

The filling up of this questionnaire will last approximately 10 minutes, and the information provided in this questionnaire is kept as confidential.

We'd like to emphasise we are not selling anything, this is purely research and you will not receive any follow-ups from this research.Name : Designation : email address :

Instructions:1. Please tick the appropriate one. Do not Tick more than one option.2. Response options:

1. Strongly Disagree2. Disagree3. Agree4. Strongly Agree

Start:1. What is your total Work Experience?

a) 0 to 6 months b) 6 Months to 1 year C) 1 to 2.5 years d) >2.5 years

2. Which Industry are you in?

a) Software industry b) BPO c) Manufacturing d) Agro Sector

3. How long have you been working in the current role or designation?

a) <1 year b) >1year but <2years c) >2years

4. How do you rate your company’s format on performance appraisal Method?

a) 1 b) 2 c) 3 d) 4

5. How often your performance appraisal is done?

a) Monthly b) Quarterly c) Half yearly d) Yearly

6. Type of appraisal done in your company.

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a) Self Appraisal b) Supervisor appraisal c) Subordinate appraisald)Peer Appraisal

7. How happy are you with the overall feedback of your performance on a scale of 4?

a) 1 b) 2 c) 3 d) 4

8. Are you happy with the way your performance appraisal is conducted? a) 1 b) 2 c) 3 d) 4

9. Does your company treat your Performance appraisal as confidential?

a) 1 b) 2 c) 3 d) 4

10. Does your feedback start on a positive note?

a) 1 b) 2 c) 3 d) 4

11. Are you been compared to your peers about your performance?

a) 1 b) 2 c) 3 d) 4

12. Do you take the Feedback on a positive note?

a) 1 b) 2 c) 3 d) 4

13. Does the feedback help to analyse your Strengths and Weakness?

a) 1 b) 2 c) 3 d) 4

14. Do you get enough training to overcome your weaknesses and have Additional skills?

a) 1 b) 2 c) 3 d) 4

15. Do you agree Performance appraisal is attached to your pay and Promotion?

a) 1 b) 2 c) 3 d) 4

We appreciate your patience and the time you have allocated for filling the questionnaire, as you have given some valuable information about the behaviour of your organisations to their employees and this adds as a catalyst to the study we are conducting.Thank you,

Warm Regards,Students of IFIM B SCHOOL Batch 2009 -11 (PGDM – IB)

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DiscussionThe Discussion is based on the questionnaire being filled by 27 people from different

organisations and from different designations, before preparing the questionnaire we thought about the objective on the outcome of the practice of Personal appraisal in India by the view point of the Employee, as they are the Human capital of the organisations.

The Objectives of the Questionnaire are:

1. The questionnaire is designed to find out the people from different industry how they rate their company’s performance appraisal method.

2. It focuses on the experience of the people.3. How they feel about their performance.4. How welcoming they are for the feedback on their performance.5. Does it help in their future role, for the current performance?6. How efficient the employee thinks the practise of performance appraisal in their

current role is.

The result of the questionnaire is in the table below:

Question NO

Option1 2 3 4

1 18.52 29.63 40.74 11.112 11.11 55.56 18.52 14.813 37.04 44.44 18.52 0.004 0.00 7.41 66.67 25.935 77.78 11.11 3.70 7.416 55.56 44.44 0.00 0.007 7.41 11.11 66.67 14.818 11.11 7.41 55.56 25.939 3.70 25.93 37.04 33.33

10 7.41 48.15 37.04 7.4111 0.00 14.81 25.93 59.2612 0.00 14.81 44.44 40.7413 0.00 11.11 44.44 44.4414 7.41 14.81 55.56 22.2215 0.00 0.00 44.44 55.56

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To describe the above results from the questionnaire in a total of 27 applicants, there was 100% participation. 40.74% of the applicant had a total work experience between 1 year to 2.5 years and the total people having work experience above 1 year and more were 50.85% which is higher above the rest options, the majority of the applicants were from BPO industry background with 55.56%, the applicants working in the same role in the organisation were more than 1 year to 2 years, almost 66.67 % of applicants were happy to rate that their company uses the best method of performance appraisal with almost 60% of the applicants appraisal are done every month and usually the performance appraisal is done even at the end of the year and from the software industry the performance appraisal were done on an yearly basis, the method of appraisal been practised in their current industry is self appraisal system with 55.56% and Supervisor appraisal with 44.44%, and the shocking news is that Subordinate appraisal is not been practised but according to the interaction from the industry the above managerial level of employees and the managerial level of employees performance appraisal is done based on the Subordinate appraisal method as this would be done through the interaction with their subordinates through feedback on the behaviour of the manager or team leader and their approach towards them. Peer Appraisal is not in practise that is because of the peers being friends they always rate the peer more that the work exposure. 66.67% of the applicants have agreed that their supervisor gives good feedback and only 14.81% strongly agree that they are happy about the overall feedback of performance appraisal, but 55.56% of the employees are happy with the appraisal being conducted. In the area of companies being confidential about the performance appraisal a staggering of 37.04% agree that their performance is not been kept confidential, and 33.33% strongly agree that their performance is not kept confidential, Most of the times the supervisor who is doing the appraisal do not start on a positive not and there are 48.15% of applicants who disagree, and the finding for this is that the supervisor have expectations on the targets being achieved very consistently, 59.26% of applicants strongly agree that their supervisors compare with their peers performance and they don’t like this situation they face, 44.44% do take the performance appraisal discussion on a positive note to achieve their future goals and 0% take the discussion negatively, 44.44% of the applicants agree and strongly agree that the discussion and feedback help them analyse the strength and weakness in them and help them plan for future achievements, 55.56% agree that they get required training to work on their weakness and the companies invest on their training activities so that the employee is given enough opportunity to work on their weakness and come out and perform, 55.56% of the applicant strongly agree that their performance is a key factor for their increase of their compensation and for future growth in the organisation i.e., promotion and 44.44% just agree, and none of them disagree about the fact that the performance appraisal is a key factor for their growth.

The Objectives being achieved from the study conducted are:

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1. The applicants were happy with the performance appraisal methods used in their organisation.

2. The experienced employees are higher so this gives a fair idea about the behaviour of experienced employees.

3. Majority of employees feel that they achieve the targets set.4. The employees agree that their appraisal is taken in a positive note will help them

for their future roles and performance.

Conclusion

Employees should participate with their supervisors in the creation of their own performance goals and development plans. Mutual agreement is a key to success. A plan wherein the employee feels some degree of ownership is more likely to be accepted than one that is imposed. This does not mean that employees do not desire guidance from their supervisor; indeed they very much do.

Where performance appraisal fails to work, lack of support from the top levels of management is often cited as a major contributing reason. It is crucial that top management believe in the value of appraisal and express their visible commitment to it. Top managers are powerful role models for other managers and employees.

Those attempting to introduce performance appraisal, or even to reform an existing system, must be acutely aware of the importance of political issues and symbolism in the success of such projects. There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect badly upon them also, since they are usually the employee's supervisor. Many appraisers have a vested interest in making their subordinates "look good" on paper. Indeed, surveys have shown that not only do many managers admit to a little fudging, they actually defend it as a tactic necessary for effective management.

Employees generally require more feedback, and more frequently, than can be provided in an annual appraisal. While it may not be necessary to conduct full appraisal sessions more than once or twice a year, performance management should be viewed as an ongoing process. Frequent mini-appraisals and feedback sessions will help ensure that employees receive the ongoing guidance, support and encouragement they need. Many supervisors complain they don't have the time to provide this sort of ongoing feedback. This is hardly likely. What supervisors really mean when they say this is that the supervision and development of subordinates is not as high a priority as certain other tasks.

In this case, the organization may need to review the priorities and values that it has instilled in its supervisory ranks. After all, supervisors who haven't got time to monitor and facilitate the performance of their subordinates are like chefs who haven't got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense.

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If appraisal is viewed as an isolated event, it is only natural that supervisors will come to view their responsibilities in the same way. Just as worrying, employees may come to see their own effort and commitment levels as something that needs a bit of a polish up in the month or two preceding appraisals.

Appraisal should be carried out in an objective manner, scrupulously, following the criteria laid down for the purpose. When appraisal take a subjective route, several problems crop up, instantaneously, such as ratting errors poor forms, lack of rater preparedness, ineffective organisational policies and practices.

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References

Performance appraisal by Joyce Margulies Indiana University http://www.indiana.edu/~uhrs/.htm http://appraisals.naukrihub.com/ http://hr.rpi.edu/update.com http://www.performance-appraisal.com www.syrianjobs.com : performance standards Google scholar www.googlescholar.com Business knowledge source on job evaluation by Steve .M Jex. Handbook of Applied Behaviour Analysis, John Austin & James E. Carr. Management of Human Resources, Gary Dessler. Blau, Gary E. Human Resource Accounting, 1st ed. Scarsdale, Peter Drucker, "Management Tasks, Responsibilities, Practices”. http://managementhelp.org/plan_dec/mbo/mbo.htm 'The practice of Management'. By Peter Drucker. http://performance-appraisals.org/experts/perffeedback.htm Mohan Kumar (Assistant Human resource Administrator) Magna Infotech Chetan Reddy (Human Resource Executive, Nestle India Bangalore) Girish Ramchandran (Data Validation Associate, Accenture Delivery Centre for BPO

Services)

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http://performance-appraisals.org/experts/perffeedback.htm

http://managementhelp.org/plan_dec/mbo/mbo.htm

http://www.googlescholar.com/

http://www.syrianjobs.com/

http://www.performance-appraisal.com/

http://hr.rpi.edu/update.


http://www.indiana.edu/~uhrs/.htm

Performence Apprisal

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Transcript of Performence Apprisal