Performance Appraisal Notes & Concept Main features Applications of results of appraisal Potential benefits/advantages Potential complications Who conducts them Human resource management & performance management When are they conducted Methods of collecting data Objective production The happy-productive worker hypothesis Personnel Judgmental evaluation Organizational citizenship behavior Performance appraisal interviews Employee reactions Appraisal and legal implications Cross-cultural implications

Definition of Performance Appraisal A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods.A PA is typically conducted annually. The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. PA helps the subordinate answer two key questions; first, "What are your expectations of me?" second, "How am I doing to meet your expectations?" Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest possible performance.“How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary” organizations.

Applications of Performance Appraisal are as follows - Performance Improvement Promotions Terminations (also transfers) Test Validation Better Focus in Employees Helps know Organizational Expectations better Understanding of Training Needs for Employees It is used for motivation of employees Employee Reward Schemes (eg - Star Employee of The Month) To manage quality of workforce in mission critical organizations. To inform employees of any changes in their Reporting Mechanism, Job Profiles, Job Description etc. Understanding of Employee Expectations from the organization to provide better HR solutions. Gives rise to healthy competition in employees of the same department. Helps management gauge quality and reliability of training given to an employee. Enhances social worth of a person - as he/she gets a promotion Used a s tool by Human Resource managers to better coordinate amongst various departments.

Advantages of Performance Appraisal Facilitation of communication: Communication in organizations is considered an essential function of worker motivation.It has been proposed that feedback from PAs aid in minimizing employees’ perceptions of uncertainty.Fundamentally, feedback and management-employee communication can serve as a guide in job performance. Enhancement of employee focus through promoting trust: Behaviors, thoughts, and/or issues may distract employees from their work, and trust issues may be among these distracting factors.Such factors that consume psychological energy can lower job performance and cause workers to lose sight of organizational goals.Properly constructed and utilized PAs have the ability to lower distracting factors and encourage trust within the organization. Goal setting and desired performance reinforcement: Organizations find it efficient to match individual worker’s goals and performance with organizational goals.PAs provide room for discussion in the collaboration of these individual and organizational goals.Collaboration can also be advantageous by resulting in employee acceptance and satisfaction of appraisal results. Performance improvement: Well constructed PAs can be valuable tools for communication with employees as pertaining to how their job performance stands with organizational expectations.“At the organizational level, numerous studies have reported positive relationships between human resource management (HRM) practices" and performance improvement at both the individual and organizational levels. Determination of training needs: “Employee training and development are crucial components in helping an organization achieve strategic initiatives”.It has been argued that for PAs to truly be effective, post- appraisal opportunities for training and development in problem areas, as determined by the appraisal, must be offered.PAs can especially be instrumental for identifying training needs of new employees. Finally, PAs can help in the establishment and supervision of employees’ career goals.

Also referred to as contextual behavior, prosocial behavior, and extra-role behavior, organizational citizenship behavior (OCB) consists of employee behavior that contributes to the welfare of the organization but is beyond the scope of the employee’s job duties. These extra-role behaviors may help or hinder the attainment of organizational goals. Research supports five dimensions of OCB: altruism, conscientiousness, courtesy, sportsmanship, and civic virtue.Researchers have found that the OCB dimensions of altruism and civic virtue can have just as much of an impact on manager’s subjective evaluations of employees’ performances as employees’ objective productivity levels.The degree to which OCB can influence judgments of job performance is relatively high. Controversy exists as to whether OCB should be formally considered as a part of performance appraisal. Organizational Citizenship Behavior