COMPILED BY:

PRAGATI JAIN
SHRIRAM COLLEGE OF
COMMERCE

INTRODUCTION
Managing human resources in todays dynamic environment is
becoming more and more complex as well as important.
Recognition of people as a valuable resource in the
organization has led to increasing trends in employee
maintenance, job security, etc
My research project deals with Performance Appraisal as
carried out at reliance.

RATIONALE

Performance Appraisal is the important aspect in the organization

to evaluate the employees performance. It helps in
understanding the work culture, involvement, and satisfaction. It
helps the organization in deciding employees promotion, transfer,
incentives, pay increase.

INTRODUCTION TO
HRM
Theprocess of hiring anddeveloping employeesso that they
become more valuable to theorganisation.
Itincludes conductingjob
analysis,planningpersonnelneeds,recruitingtheright people
for the job, orienting andtraining,managingwages
andsalaries,providingbenefitsandincentives, evaluating
performance, resolvingdisputes, and communicating with all
employees at all levels.Examplesof corequalitiesof HR
management are extensiveknowledgeof theindustry,
leadership, andeffectivenegotiationskills. Formerlycalled
personnel management.

People are our most valuable asset is a clich, which no

member of any senior management team would disagree
with. Yet, the reality for many organizations are that their
people remain under valued, under trained and under
utilized.
The market place for talented, skilled people is competitive
and expensive. Taking on new staff can be disruptive to
existing employees. Also, it takes time to develop cultural
awareness, product / process / organization knowledge and
experience for new staff members.

WHAT IS PERFORMANCE
APPRAISAL?

Performance Appraisal is defined as the process of

assessing the performance and progress of an
employee or a group of employees on a given job
and his / their potential for future development.
Performance appraisals are a part ofcareer
developmentand consist of regular reviews of
employee performance withinorganizations.

ERFORMANCE APPRAISAL
TECHNIQUES USED BY
RELIANCE

360 DEGREE FEEDBACK EVALUATION

A common approach to assessing performance is to use a
numerical or scalar rating system whereby managers are
asked to score an individual against a number of
objectives/attributes. Employees are also allowed the
opportunity to assess the person(manager) at the same time.
This is known as 360 appraisal. The biggest risk with 360
degree feedback is confidentiality. The information is very
sensitive and in the wrong hands, could impact careers .
FACT: Used by 90 percent fortune 500 companies.
Also used by hp and IBM.

RATING SCALES
A widely used appraisal method that rates employees according
to defined factors. The scale includes several categories,
normally five to seven in number, defined by adjectives such as
outstanding, meets expectations or needs improvement. One
reason for the popularity of the ratings scale method is its
simplicity, which permit quick evaluation of many employees.
The factors chosen for evaluation are typically of two types job
related and personal characteristics. The rater(evaluator)
completes the form by indicating the degree of each factor that
is most descriptive of the employee and his or her performance.
Evaluators total and then average the points in each part . Then
they multiply this average by a factor representing the weight
given each section. The final score for the employees is the
total of each sections points.

CRITICAL INCIDENTS
A performance appraisal technique that requires a written
record of highly favourable and highly unfavourable work
behaviour. When such an action a critical incident affects the
department significantly, either positively or negatively, the
manager writes it down. With this method, the appraisal is more
likely to cover the entire evaluation period and not focus on the
last few weeks or months.

ESSAY METHOD
A performance appraisal method in which the rater writes a brief
narrative describing an employees performance. Ratings of this
type depend heavily on the evaluators ability. Supervisors with
excellent writing skills, if so inclined, can make a marginal worker
sound like a top performer. However, some managers believe that
the essay method is not only the most simple but also an
acceptable approach to employee evaluation.

WORK STANDARDS
A performance appraisal method that compares each
employees performance to a predetermined standard or
expected level of output. Several methods are available to
determine work standards, including time study and work
sampling. An obvious advantage of using standards as appraisal
criteria is objective, they should understand clearly how the
standards were set. Management must also explain the
rationale for any changes to the standards.

RANKING
A performance appraisal method in which the rater simply
places employees from a group in rank order of overall
performance. A difficulty occurs when individuals have
performed at a comparable rate(as perceived by the evaluator).
Paired comparison is a variation of the ranking method in which
performance of each employee is compared with every other
employee in the group. Overall performance, is often the basis
for the comparison. The employee who receives the greatest
number of favourable comparisons receives the highest
ranking.

FORCED DISTRIBUTION
A performance appraisal method which requires the rater to
assign individuals a group to a limited number of categories
similar to a normal frequency distribution.
Because of slowing economy and an increased focus on pay for
performance, many firms have insulted some rankings or gotten
tougher with their existing systems. Proponents of forced
distribution believe they facilitate budgeting and guard against
weak managers who are too timid to get rid of the poor
performers. They think that forced rankings require managers to
be honest with workers about how they are doing.

RESULT BASED SYSTEM

A performance appraisal method in which the manager and the
subordinate jointly agree on objectives of the next appraisal
period. Since organisations exist to achieve goals, a result-based
system has obvious value. A distinct advantage of this approach
is that it provides a measure of achievements against
predetermined objectives.

BEHAVIOURALLY ANCHORED RATING

SCALES
A performance appraisal method that combines elements of the
traditional rating scale and critical incident method. BARS
differs from rating scales because, instead of using adjective at
each scale point, it uses behavioural anchors related to the
criterion being measured. The approach facilitates discussions
of the rating because it addresses specific behaviours; thus
overcoming weakness in other evaluation methods.

Thank you!