PERFORMANCE APPRAISAL

Performance is a systematic evaluation of the individual with respect to his performance on the job and his potential for development. It is concerned with determining the differences of performance among the employees working in the organization. Appraisal is done by the individual’s immediate superior in the organization which is further reviewed by his superior.

PERFORMANCE APPRAISAL Performance Appraisal determines who shall receive merit increases, counsel employees on their performance, determines training needs,determines promotability, identifies those who should be transferred. It is a continuous process.

WHY IS EMPLOYEE PERFORMANCE APPRAISAL IMPORTANT ?  Most organizations have some kind of formal employee performance appraisal system.  It is a ritual in some settings.  Supervisors are required to fill out forms and meet with their subordinates at least once a year.  In some organizations,appraisals may follow projects lasting a month or more.

WHY IS EMPLOYEE PERFORMANCE APPRAISAL IMPORTANT ? 1)To validate selection methods: to what extent is the organization choosing the right kind of people for jobs ? 2)To identify candidates for promotion : who is ready now for advancement ? How soon will others be ready ? 3)To validate appraisal methods : to what extent is the organization using appropriate yardsticks to evaluate performance? 4)To provide evaluative feedback on individual performance: how well have individuals been carrying out duties assigned to them? 5)To determine the training needs : what specific learning experiences will help the individuals improve their future job performances? Prepare for promotions? 6)To allocate rewards : considering individual contributions,what rewards should be given to them?

Advantages : Unified appraisal procedures: The Performance Appraisal system is an unified system, thus avoiding the errors of self-interest and discrimination. A tool of employee development : Performance Appraisal is the mirror through which employees can see their strengths and weaknesses, their accomplishments and their deeds. The merit rating of the weak employees or the weakness provide the basis for an individual development programme Important personnel decision :It provides information which is useful in making and enforcing important personnel decisions.

Advantages : Improvement in Human Behaviour :Performance standards are determined of each individual according to the job requirements, personal traits and qualification. Then his actual performance is measured and compared with performance standards. Performance Appraisal as an evidence: The performance appraisals of employees are stored and maintained in the personal records and their skill inventory cards. Arbitrator officer will accept these in the course of grievances handling procedures as authentic records. A tool in the hand of the supervisors: It gives supervisors a more effective tool for rating their personnel as it enhances proper control on subordinates. Improved quality of supervision: Sometimes, the information given by performance evaluation tells that the decrease in efficiency is due to poor supervision.

Advantages : Maintenance of Industrial Relations: Timely, systematically, upto date, honestly and sincerely done performance appraisal creates mutual understanding,trust and confidence among the superior-subordinate relationship.

Performance Appraisal Process The following steps are taken in appraising performance of employees. All performance standards are established. The standards must be very clear and objectives should be easily understood and measured. The performance standards are discussed with the supervisors so as to involve them in standard setting. The next step is to communication of performance standards to the employees. Until and unless the employees are informed,about what is expected of them, it is difficult to guess what is to be done, how much is to be done. Then the actual measurement of the performance of employees. The performance measurement criteria should be developed, how to measure,what to measure. – Four sources of information are frequently used to measure actual performance personal observation, statistical reports,oral reports and written reports.

Performance Appraisal Process After the measurement of actual performance is over, it is to be compared with predetermined standards. The employee should be appraised and judged of his potential growth and advancement After the comparison between performance standards and the actual performance has been over, the deviations are to be noted. These deviations should be discussed with the employees. The final step deals with the rewards versus punishment approach.

Traditional Methods for Evaluation 1)Straight Ranking Method: 2)Paired Comparison Method: 3)Factor Comparison Method: 4)Grading Method: 5)Graphic or Point Method: 6)Free Essay Method:

1)Straight Ranking Method: This method is the simplest and oldest method of merit rating in which the ratee and his performance are judged and evaluated as a single entity. The task of ranking is difficult when a large number of persons are to be rated and it does not indicate the degree or differences between the first man and the second man. 2)Paired Comparison Method: In this method, each employee in a job family is compared with every other employee to determine who is a better worker. 3)Factor Comparison Method: This method is known as man to man comparison method. By this method, certain factors are selected for the purpose of analysis such as leadership, dependability and initiative and a scale is designed by the rater for each factor.

4)Grading Method: The rater considers certain features and allots them the marks according to the scale. The selected features may be analytical ability, cooperativeness, dependability, self expressions, job knowledge, judgment, leadership and organizing ability. The actual performance of an employee then is compared with these grade definitions and he is allotted the grade which best describes his performance. A - Outstanding B - Very Good C - Good or Average D - Fair E - Poor

5)Graphic or Point Method: This appraisal is done by the rater on printed forms used one for each. The scales are marked on the factors of personality. These factors are of two types - Characteristics such as initiative and dependability - Contributions such as quality and quantity of work. 6)Free Essay Method: This is also a traditional method in which rater appraises the ratees in an open-ended manner and uses a free-form in his own words and puts down his impressions about the employee. He takes a note of these factors: - Job knowledge and potentials - Employee’s characteristics and attitude - General organization and planning ability - Understanding of company’s policies and procedures and its applications.

Modern Methods for Appraisal  Management by Objective (MBO)  Assessment Center Method (ACM)  Behavioral Anchored Ratings (BARS)  360 Degree Appraisal Method  Balance Scorecard.