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Unit 4 Human Resource Management

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Unit 4 Human Resource Management

Uploaded by

shreyamk17
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Unit 4 HUMAN RESOURCE MANAGEMENT

Performance Assessment:
Performance assessment is the process of evaluating an individual or a group's performance against
predefined criteria or objectives. It aims to measure how well someone has performed their duties or
achieved their goals within a specific timeframe. Performance assessment can encompass various aspects
such as skills, behaviors, achievements, and contributions to the organization. It serves as a basis for
providing feedback, identifying strengths and weaknesses, and making decisions regarding rewards,
promotions, or development opportunities.

Approach to Performance Appraisal:


Approaches to performance appraisal refer to the methods or strategies used to evaluate employee
performance. Some common approaches include:
1. Traditional Methods: These include methods like ranking, rating scales, and paired comparison. Ranking
involves ordering employees from best to worst, rating scales use numerical or descriptive scales to evaluate
performance, and paired comparison compares each employee with every other employee.
2. 360-Degree Feedback: This approach gathers feedback from multiple sources including peers, supervisors,
subordinates, and customers to provide a comprehensive view of an employee's performance.
3. Management by Objectives (MBO): MBO involves setting specific, measurable objectives for employees
and then evaluating their performance based on the achievement of these objectives.
4. Behaviorally Anchored Rating Scales (BARS): BARS combine the benefits of qualitative and quantitative
data by using specific behavioral examples to rate performance.
5. Critical Incident Method: This method focuses on identifying critical incidents of behavior that are
indicative of good or poor performance.
6. Self-Assessment and Peer Assessment: These approaches involve employees evaluating their own
performance or providing feedback to their peers respectively.
The choice of approach depends on factors such as organizational culture, the nature of the job, and the
desired level of objectivity.

Stages in Performance Evaluation:


The stages in performance evaluation typically include:
1. Goal Setting: This stage involves establishing clear, achievable goals and performance expectations for
employees. Goals should be aligned with organizational objectives and SMART (Specific, Measurable,
Achievable, Relevant, Time-bound).
2. Ongoing Feedback: Regular feedback should be provided throughout the evaluation period to keep
employees informed about their progress and areas for improvement.
3. Data Collection: Gathering relevant data and information to assess employee performance. This may
include quantitative metrics, qualitative feedback, and self-assessments.
4. Evaluation: Assessing employee performance based on the established criteria, comparing actual
performance against set goals, and identifying areas of strength and areas needing improvement.
5. Discussion and Feedback: Meeting with employees to discuss the evaluation results, providing feedback on
their performance, and setting goals for future improvement.
6. Reward and Recognition: Recognizing and rewarding employees for their achievements and contributions,
which may include salary increases, bonuses, promotions, or other forms of recognition.

Performance Evaluation Systems:


Performance evaluation systems are frameworks or structures used to conduct performance assessments
within an organization. These systems typically include:
1. Criteria and Standards: Clear criteria and performance standards against which employees are evaluated.
2. Documentation: Processes for documenting employee performance, including performance reviews,
feedback, and goal-setting documents.
3. Training and Development: Provision of training and development opportunities based on performance
evaluation results to help employees improve their skills and competencies.
4. Fairness and Objectivity: Ensuring that the evaluation process is fair, transparent, and free from bias or
discrimination.
5. Integration with HR Processes: Integration of performance evaluation with other HR processes such as
compensation, promotion, and succession planning.
6. Continuous Improvement: Regular review and refinement of the performance evaluation system to ensure
its effectiveness and relevance to organizational goals.
By implementing a robust performance evaluation system, organizations can effectively assess and manage
employee performance to drive individual and organizational success.

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