Performance appraisal

Meaning & definition

“Performance appraisal is a systematic evaluation of individual with respect to his/her

performance on the job and his/her potential for development.”

Need for performance appraisal

• Identify developmental needs.• To plan training based on feedback • To recognize potential/promising employee.

Components of performance appraisal

• Who of appraisal Immediate supervisors Other supervisor Peers or colleagues Self Subordinates Personnel manager External consultant

• What of appraisal

Human beings time frame

Personal traits

Achieved results

Specifics

Current performance

• When of appraisal

Formal

Annually

Semi annually

Quarterly

Informal

Weekly

Daily

Continuously

• Why of appraisal Maintain workforce

Determine organizational training needs.

Determine personal development opportunities.

Basis for promotion, transfers etc..

Basis for pay increase & in recruitment, selection.

Feedback & communication mechanism.

• Where of appraisal

on the job

Bosses office

Subordinate’s place of work

Everywhere

of the job

Consultants office

Social or recreational settings

Everywhere

Benefits of performance appraisal

• Human resource planning• Motivation & Satisfaction• Training & Development• Recruitment & Induction• Employee Evaluation• Legal Compliance

Performance Appraisal

in Novartis

Introduction to Novartis

• “Novartis want to discover, develop & successfully market innovative products to cure diseases, to ease suffering & to enhance the quality of life. Novartis want to provide a shareholder return that reflects outstanding performance & to adequately reward those who invest ideas & work in the company”

• Novartis was created in 1996 from the merger the Swiss companies, Ciba –Geigy & Sandoz.

• Novartis is a world–leader in the research & development of products to protect & improve health & well-being.

Personnel programs have focused on

individual & organizational development & growth.• Workshop on high performance organization

• HR toolkit

• Novartis call excellence

• Role excellence

Marketing power house has objective of ensuring state-of-the-art marketing execution.

HR initiatives such as assessment & development centers & concepts such as pay for performance & other reward & recognition system have endangered a culture of continuously seeking excellence.

HR Mission of Novartis

• We are committed to building sustainable competitive advantage for Novartis through the quality, the capability & ultimately the performance of our people.

• We aspire to be a world class HR function recognized for its business focus & its support to Novartis Management & associates

Talent Management • “Leaders of today’s corporations must cope with a unique

set of challenges. Technological, social, and economic forces compel leaders to address new issues such as globalization, strategic alliances & around the clock economies. Our leaders need to continually learn now skills in order to stay ahead of the competition.”

• Novartis is an organization where people are engaged, developed, stretched & well rewarded for performance. It attracts and hires the best people.

• They recognize the importance of having talented

leaders at all levels of the organization to succeed in the challenging world of business.

• Consequently they commit to providing practical processes and programs which ensure the identification, development & inspiration of the current & future leaders.

• They are committed to give all the associates the opportunity to grow and realize their full potential.

• They believe that through this commitment which offers challenging &rewarding career opportunities they enhance their attractiveness as an employer of choice.

Performance Management

• Novartis primary objective is to sustain performance culture

• key success factor will be the ability to move coherently in the same direction by developing & fully utilizing the significant diversity of everyone’s skill &potential

• It combines annual objective setting &performance review based on both results & value & behavior

Performance Appraisal in Novartis

Novartis has made a conscious effort towards creating & fostering a strong performance driven culture in the organization. There are three modules followed:

1) Position – roles & responsibilities

Position description is a result of discussion between employee & his superior regarding his expected role & perceived role & at end arriving at an expected role & responsibilities of the position.

Persons involved are-• Employees • Superior • Division head• Peers & colleagues

Why is it done?• A systematic presentation of roles & responsibilities of the position • To understand why the position is existing• Helps in individual objective setting, performance review & effectiveness mapping

What is it used for?• Competency mapping• Recruitment & transfer• Position evaluation

2) Performance – objective setting review

This module ensures that the corporate objectives are laid down & individual objectives are simultaneously are laid down in line with corporate goals. All this is done in the form of dialogue between superior & the employee.

Persons involved are -

• Employee

• Superior

Why is it done?

• To fix objective & give weightage to it.

• To review objectives

• To determine the performance related pay & increment

• To ensure that the objectives are also as may be applicable for consumer, employee, finance & processes.

• To give overall performance rating.

What is it used for?• Determination of performance pay• Overall performance pay• Increment

3) Effectiveness – mapping & action plan

This module aims at enhancing the effectiveness of the individual as per his/her specific position by mapping the behavioral competencies & functional/ technical knowledge required by the position.

Persons involved are -• Employee• Superior

Why is it done?

• To identify, map & check whether the employees possess it or not.

• To identify other issues such as, his/her role , his/her team personal reasons etc,

• To identify the competency & knowledge gaps & rectify them through an action plan.

• To get the individuals aspiration & future career interest.

What is it used for?• Enhancement of individual ‘s effectiveness.

• Recruitment

New Performance Appraisal form-03

The performance appraisal form –03 is the form used by the Novartis for the purpose of performance appraisal. The basic function of performance appraisal is the review of the annual performance. The form is dividend into 4 major parts-

1)PART 01:- the main objective here is to know the appraise, his details, the appraiser & the arbitrator.

2) PART 02:- specifies about the objectives which are to be decided by the employees & should be communicated to the manager & also the line manager.

The objective decided upon should be :-• Measurable • Achievable• Limited in number The objectives are mentioned along with evaluation

criteria, measurement & standard. Each objective is ranked on the level of percentage calculated on the basis of priority.

The objectives are discussed with the appraise by reporting manager & the indirect manager & agreed upon. The ratings are :-

1= partially met expectations 2= fully met expectations 3= exceeded expectations

3)PART-O3

• This is one of the most important section of the form. This section specifies about the organizational capabilities & related behaviors of the appraise. It specifies some shared values & behaviors which support the capabilities. The various specifications mentioned below:-

.. external focus

..innovation

..people

..performance

This section helps in analyzing whether the appraisee’s capabilities & competencies glue the organization’s values

4) PART-04

• The final section belongs entirely to the appraiser.the reporting manager rates the appraisee on the overall performance.firstly the appraisee is rated for his objectives on the matrix which has rating on both sides.

• Next, overall rating is given on organizational capabilities & related behaviors further, the performance summary is mentioned by the appraisee. Key strengths, developmental areas are mentioned.

• This form is signed by the appraisee , appraiser & next level manager as a sign of completion of process of appraisal

• The completed & duly signed performance appraisal form is returned to Human Resource Department.

Recommendations

• Novartis has perfect appraisal system except a couple of points-

In order to effectively &efficiently utilize the potential of their employees, it is important to identify the strength as well as the areas of development.

Besides this the company has the best appraisal procedures & fantastic rewarding system.

Conclusion

• With rewards being directly linked to achievement of objectives, goal setting, performance appraisal assumes utmost importance.

• There should be adequate training to the evaluator that will go long way in answering the quality of performance appraisal.

• Performance appraisal is very important tool used to influence employees.

Thank you