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Performance Appraisal

The document provides information on performance appraisals at Novartis, including: 1) Novartis uses a systematic performance appraisal process involving objective setting between employees and managers, reviewing performance against objectives, and identifying competency gaps to create development plans. 2) Their appraisal form collects information on objectives, organizational capabilities, performance ratings, and developmental areas to improve effectiveness. 3) The process aims to sustain a performance culture by aligning individual objectives with corporate goals and developing employee skills through competency mapping and action planning.

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86% found this document useful (7 votes)
3K views29 pages

Performance Appraisal

The document provides information on performance appraisals at Novartis, including: 1) Novartis uses a systematic performance appraisal process involving objective setting between employees and managers, reviewing performance against objectives, and identifying competency gaps to create development plans. 2) Their appraisal form collects information on objectives, organizational capabilities, performance ratings, and developmental areas to improve effectiveness. 3) The process aims to sustain a performance culture by aligning individual objectives with corporate goals and developing employee skills through competency mapping and action planning.

Uploaded by

api-3832224
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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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:
3) 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

5) 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

5) 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

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