study of performance appraisal

8/7/2019 study of performance appraisal

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INTRODUCTION OF

PERFORMANCE

APPRAISAL


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Overview of Performance Appraisal

Performance appraisals are a systematic way of evaluating the standard of an employees

performance.

Steps for developing a systematic performance appraisal

.1. Identify key performance criteria

Developmentofkeyperformancecriteriashould be basedonacomprehensive job description

andundertakeninconsultationwithemployees.

2. Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal measures should be

tailoredtothespecific job orjob family (i.e.,groupsofsimilar jobs). Anevaluationoffactors

in the workenvironment whichhelporhinderperformance isalsorecommended. Thisensures

thatrealisticexpectationsaresetforemployeesperformance,and isalso likely to increase the

perceivedfairnessandacceptabilityofperformanceappraisals.

3. Collect performance information from different sources

Traditionally,ithas beenthesoleresponsibilityofmanagers / supervisorstoassessperformance.

However,otherorganisationalmembers (e.g.,clients,coworkers,subordinates)can beavaluable

sourceof informationas theyare likely tohaveexposure todifferentaspectsofanemployees

performance. Collecting information from multiple sources can increase the accuracy of

performanceevaluation (i.e.,reduce bias),andincreaseemployeesperceptionsoffairness.

4. Conduct an appraisal interview

Thetwocentralpurposesoftheappraisalinterview areto:

1. Reflectonpastperformancesto identifymajorachievements,areasforfurther improvement,

and barriers / facilitatorstoeffectiveperformance.2. Identifygoalsandstrategiesforfuture workpractice.

Theappraisalinterview should beaconstructive,two-wayexchange betweenthesupervisorand

employee, withpreparationfortheinterview done by bothparties beforehand.


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5. Evaluate the appraisal process

The performance appraisal process should undergo regular review and improvement. For

example, focus groupsor surveys could be conducted togauge employees perceptions of the

appraisalprocess. A successfulperformance appraisalprocess should demonstrateachange in

both the ratingsof employees performance and aspects of the work environment that impact

upon workperformance.

Best Practice In Performance Appraisal

Inessence, bestpracticeinperformanceappraisalsinvolves:

Integratingperformanceappraisalintoaformalgoalsettingsystem

Basingappraisalsonaccurateandcurrent job descriptions

Offeringadequatesupportandassistancetoemployeestoimprovetheirperformance(e.g.,professionaldevelopmentopportunities).

Ensuring that appraisers have adequate knowledge and direct experience of the

employeesperformance

Conductingappraisalsonaregularbasis.

Meaning and Definition of Performance Appraisal

Performanceappraisalisaformalsystemthatevaluatesthequalityofaemployeesperformance. An

appraisalshouldnot beviewedasanendinitself, butratherasanimportantprocess withina broader

performancemanagementsystemthatlinks:

Organizational objectives

Day-to-day performance

Professional development

Rewards and incentives

Insimpleterms,appraisalmay beunderstoodastheassessmentofanindividualsperformanceina

systematic way,theperformance beingmeasuredagainstsuchfactorsas job knowledge,quality,and

quantityofoutput,initiative,leadershipabilities,supervision,dependability,co-operation, judgment,

versatility, health, and the like. Assessment should not be confined to past performance alone.

Potentialsoftheemployeeforfutureperformancemustalso beassessed.


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A formal definition of performance appraisal is:

Itisthesystematicevaluationoftheindividual withrespecttohisorherperformanceonthe job

andhisorherpotentialfordevelopment.

A more comprehensive definition is:

Performance appraisal is a formal, structured system of measuring and evaluating an

employees job related behaviors and outcomes to discover how and why the employee is

presently performing on the job and how the employee can perform more effectively in the

futuresothattheemployee,organization,andsocietyall benefit.

Performanceappraisalistheprocessofobtaining,analyzingandrecognitioninformationabout

therelative worthofanemployee.

Performanceappraisalisalso knownasperformancemanagement,performance evaluationand

performancereview.

Traditional Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can be

tracedto Taylor'spioneering Timeand Motionstudies.Butthisisnotveryhelpful,forthesame

may be said about almost everything in the field of modern human resources management.

Duringthe First World War,appraisalsconcept wasadopted by US army which wasintheform

ofmeritrating. It wasman-to-manratingsystem forevaluationofmilitarypersonnel. Fromthe

army thisconceptentered the business fieldand wasrestricted tohourly-paid workers. During

1920s,relational wagestructures forhourly-paid workers wereadopted in industrialunitsand

each worker was used to be rated in comparison to other for determining wages rates.This

system wascalledmeritrating.

Theprocess wasfirmlylinkedtomaterialoutcomes. Ifanemployee'sperformance wasfoundto

belessthanideal,acutinpay wouldfollow.Ontheotherhand,iftheirperformance was better

than thesupervisorexpected,apayrise was inorder. Littleconsideration, ifany, wasgiven to

thedevelopmentalpossibilitiesofappraisal. Ifwasfeltthatacutinpay,orarise,shouldprovide

the only required impetus for an employee to either improve or continue to perform well.

Sometimesthis basicsystemsucceededingettingtheresultsthat wereintended; butmoreoften

thannot,itfailed.


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Forexample,earlymotivationalresearchers wereawarethatdifferentpeople withroughlyequal

workabilities could bepaid the same amountofmoney andyethave quitedifferent levelsof

motivationandperformance.

Theseobservations wereconfirmedinempiricalstudies.Payrates wereimportant,yes; butthey

werenottheonlyelementthathadanimpactonemployeeperformance. It wasfoundthatother

issues,suchasmoraleandself-esteem,couldalsohaveamajorinfluence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the

1950s in the United States, the potential usefulness of appraisal as tool for motivation and

development was gradually recognized. The generalmodel of performance appraisal, as it is

knowntoday, beganfromthattime.

Modern Performance Appraisal

Performanceappraisalmay bedefinedasastructuredformal interaction betweenasubordinate

and supervisor,thatusually takes the formofaperiodic interview (annualorsemi-annual), in

which the work performance of the subordinate is examined and discussed, with a view to

identifying weaknesses and strengths as well as opportunities for improvement and skills

development.

Inmanyorganizations- butnotall -appraisal resultsareused, eitherdirectlyor indirectly, to

help determine reward outcomes. That is, the appraisal results are used to identify the better

performing employees who shouldget themajorityof availablemeritpay increases, bonuses,

andpromotion.

Bythesametoken,appraisalresultsareusedtoidentifythepoorerperformers whomayrequire

some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.(Organizations need to be aware of laws in their country thatmight restrict their capacity to

dismiss employees or decrease pay.)

Whetherthisisanappropriateuseofperformanceappraisal-theassignmentand justificationof

rewardsandpenalties-isaveryuncertainandcontentiousmatter.


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OBJECTIVES &

PROCESS OF

PERFORMANCE

APPRAISAL


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A Framework of Performance Appraisal

1. Developclearjob description.

2. Selectanappropriatepeople withanappropriateselectionprocess.

3. Provideeffectiveorientation,educationandtraining.

4. Provideongoingcoachingandfeedback.

5. Conductquarterlyperformancedevelopmentdiscussion.

6. Designeffectivecompensationsystem.

7. Providepromotionandcareerdevelopmentopportunities.

Objective of Performance Appraisal

Salary Increase

Performanceappraisalplaysaroleinmakingdecisionaboutsalaryincrease. Normallysalary

increaseofanemployeedependsupononhow heisperforminghis job. Thereiscontinuous

evaluationofhisperformanceeitherformallyorinformally. Thismaydisclosehow wellan

employee is performing and how much he should be compensated by way of salary

increases.

Promotion

Performanceappraisalplayssignificantrole wherepromotionis basedonmeritandseniority.

Performanceappraisaldiscloseshow anemployeeis workinginhispresent job and whatare

his strong and weak points. In the light of these, it can be decided whether he can be

promotedtothenexthigherposition.

Training and Development

Performance appraisal tries to identify the strengths and weakness of an employee onhis

present job. Thisinformationcan beusedfordevisingtraininganddevelopmentprogrammes

appropriateforovercomingweaknessesofemployees.


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Feedback

Performance appraisal provides feedback to employees abouttheir performance. A person

works betterwhenhe knowshow heis working. This worksintwo ways,firstly,theperson

gets feedback about his performance. Secondly, when the person gets feedback about his

performance,hecanrelatehis worktotheorganizationalobjectives.

Pressure on Employees

Performance appraisal puts a sort ofpressure on employees for better performance. If the

employeesareconsciousthattheyare beingappraised inrespectofcertainfactorsandtheir

futurelargelydependsonsuchappraisal.

Communication

1. Toprovidefeedbacktoemployeessothattheycometo know wheretheystandand

canimprovetheirjob performance.

2. To clearly establish goals i.e. what is expected of the employee in terms of

performanceandfuture workassignments.

3. Toprovidecoaching,counseling,careerplanningandmotivationtoemployees.

4. Todeveloppositivesuperiorsubordinaterelationsandtherebyreducegrievance.

Career development objectives

1. Toassessthestrongand weakpointsinthe workingoftheemployeesandfindingremedies

forweakpointsthroughtraining.

2. Todeterminecareerpotential.

3. Toplancareergoals.

Others1) Identifying systemic factors that are barriers to, or facilitators of, effective

performance.

2) Toconfirmtheservicesofprobationaryemployees upontheircompletingthe

Probationaryperiodsatisfactorily.

3)

Toimprovecommunication.Performanceappraisalprovidesaformatfordialogue betweenthesuperiorandthesubordinate,andimproves

understandingofpersonalgoalsandconcerns. Thiscanalsohavetheeffectof

increasingthetrust betweentheraterandtheratee.

4) TodeterminewhetherHRprogrammessuchasselection,training,andtransfer

have beeneffectiveornot.


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How to Conduct a Performance Appraisal Process

The following five-step approach to conducting a systematic performance appraisal is

recommended:

1. Identify key performance criteria2. Develop appraisal measures3. Collect performance information from different sources4. Conduct an appraisal interview5. Evaluate the appraisal process.

STEP 1:IDENTIFY KEY PERFORMANCE CRITERIA

Perhapsone of themostchallengingaspectsof settingupaperformance appraisal isdeciding

what to assess. In essence, four key dimensions of performance should be considered in a

performanceappraisal.

KEY DIMENSIONS OF PERFORMANCE

Toensurethattheperformancecriteriaarerelevantto workpracticeandacceptabletoappraisers

andemployees:

i) Base the performance criteria on an up-to-date job description

ii) Develop criteria in consultation with appraisers and employees.

i) Base the performance criteria on an up-to-date job description:

Clearandexplicit links betweenperformanceappraisalanda job description will ensure

therelevanceoftheappraisal. Ifadetailed job descriptionisnotavailableorisout-of-date,

Competencies Knowledge,skills,andabilitiesrelevanttoperformance

Behaviours Specificactionsconductedand / ortasksperformed

Results / outcomes Outputs, quantifiable results, measurable outcomes and

achievements,objectivesattained

Organisational

citizenship behaviours

Actionsthatareoverandaboveusual job responsibilities


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it is strongly recommended that an accurate job description be developed prior to

conductingaperformanceappraisal.

ii) Develop criteria in consultation with appraisers and employee:

Linking performance appraisals with job descriptions can help to focus the appraisal

process on the key competencies, behaviours and outcomes associated with a particular

roleorposition. Itcanalso beusefultoconsult withemployeesto:

Ensurethat keyaspectsofarole / positionarerepresentedinthe job description,

forexample:

Conductassessments

Planinterventions

Managecases

Liaise withandrefertootherproviders

Keepup-to-dateservicerecordsandcasenotes

Writereports

Developaclearunderstandingoftherelativeimportanceofvariouscompetencies,

Behavioursandoutcomes

Identifyhow these keycompetencies, behavioursandoutcomescan befairlyand

accuratelyassessed.

Employeesaremorelikelytoacceptand besatisfied withtheappraisalsystemiftheyparticipatein the development of appraisal criteria and measures, and in the process of conducting

appraisals.

Strategies for facilitating employees participation include:

Engagementinformalmeetingsorinformaldiscussionswithsupervisorstoseek

inputand / orfeedbackonappraisalmeasuresandcriteria

Representationongroups / committeesinvolvedinthedesignandimplementation

ofperformanceappraisals

Inclusionofselfappraisalsintheappraisalprocess

Providingopportunitiesforemployeestocontributetotheperformanceappraisal

ofcoworkersandmanagers / supervisors.


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STEP 2:DEVELOP APPRAISAL MEASURES

Onceclearandspecificperformancecriteriahave beendeveloped,thenextstepistodecidehow

toassessemployeesperformance. Itisrecommendedthatastructuredandsystematicapproach

is taken to assessing performance. Problems that arise when an unstructured blank sheet

approachisusedinclude:

Increasedchanceofappraisererrors (i.e.,reducedaccuracy)

Knowledge,skillsandabilitiesmostcriticalto job performancemay be

overlooked(i.e.,feedbackmayhavelimitedimpactonperformanceeffectiveness)

Reducedconsistency betweenappraisers (i.e.,evaluationsmayreflectdifferences

betweenappraisersratherthanactualdifferencesinaemployeesperformance)

Perceptionsofsubjectivity inevaluations, whichmayinturn,reduce

employeessatisfaction with,andacceptanceofappraisals.

Therearethreeimportantconsiderationsinthedesignofappraisalmeasures:

i) Genericversusindividuallytailoredmeasures

ii) Objectiveversussubjectiveassessments

iii) Assessingtheimpactofthe workenvironmentonperformance.

i) Generic versus individually tailored measures

Many workplacesuseagenericratingformforallemployees irrespectiveoftheirroleor

position withintheorganisation. Althoughthisapproachcansavetimeandminimisecost,

the accuracyand relevanceofappraisalsmay be significantlydiminished. The one size

fits all approachof genericmeasuresmayoverlook importantperformance criteria that

arerelevanttoparticularjobs,andmayalsoincludecriteriathatareirrelevanttoothers.

Where time and other resources permit, it is more

appropriatetoconstructappraisalformatstailoredtospecific jobsorfamiliesofjobs. If

the development of job-specific (i.e., individually tailored)appraisal formats is beyond

theresourcecapacityoftheorganisation,analternative would betodeveloptwogroups

ofcriteria:


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1) Core competencies that have applicability to the performance appraisal of all

employeeswithintheorganisation

1) Additional competencies applicable only to some jobs and included in the

performanceappraisalifrelevant.

ii) Objective versus subjective assessments

A basic distinction between different types ofappraisalmeasures concerns the use of

objectiveorsubjectivecriteria.

Objective assessments of work performance

Objectivemeasuresofjob performanceinvolvecountsofvarious work-related

behaviours. Somecommonobjective job performancemeasuresinclude

Absenteeism (numberofdaysabsent)

Accidents (numberofaccidents)

Incidentsat work (numberofincidents / assaults / altercations)

Lateness (dayslate)

Meetingdeadlines.

Objectivemeasurescan berelativelyquickandeasytoobtain (givengoodorganisational

record-keeping). However,itcan beunwisetoplacetoomuchemphasisonthesetypesofobjective measures. An exclusive focus on results / outcomes may mask factors that

impactonemployeesperformancethatare beyondtheircontrol (e.g.,client workload).

Subjective assessments of work performance

Subjectivemeasuresrelyonthe judgmentofanappraiser(self,coworkers,orsupervisor).

Subjectiveassessmentsarecommonlyusedinperformanceappraisalsandofteninvolvethe

use ofratingscales. Subjectiveassessmentsaremorelikelytoprovideaccurateperformance

appraisals when:

The behavioursandoutcomes beingassessedarestatedinclearbehaviouralterms


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Theemployeeunderstandsthemeasures (e.g.,ratingscales) beingusedtoevaluatetheir

performance,andagreethatthemeasuresarefairandaccurate (i.e.,measures whatit is

supposedto)

Measurementisas briefaspossible whilstaddressingessential behavioursandoutcomes

(frustration withlongandunwieldyquestionnairesmayintroduceerrorinresponses).

iii) Assessing the impact ofthe work environment on performance

Thegoalofaperformanceappraisal istosupportand improveemployeesperformance

andeffectiveness. Therefore,itmakessenseforanappraisaltoincludeanassessmentof

factors in the work environment that help or hinder a employees capacity to perform

effectively. Explicit assessment of environmental factors is also likely to increase the

perceivedfairnessandacceptabilityofperformanceappraisals.

For example, an employees capacity to provide effective treatment interventions is

influenced byfactorssuchas:

Accesstoprivate,soundproofed,adequatelysizedroomsforcounselling

Availabilityofvalidated,user-friendlyassessmenttools

Availabilityofreliableandapproachablemanagement / administration.

STEP 3:COLLECT PERFORMANCE INFORMATION FROM DIFFERENT

SOU

RCES

Once the appraisal measures are developed, the next step involves collection of accurate

performance information. A common trap is to begin noting observations of employees just

before conducting appraisals. This is likely to give an inaccurate picture of a employees

performance. Ideally,employeesperformanceshould beobservedinasystematic wayovertime

(e.g.,inadiary). Thismethodensurestheaccuracyofinformationabouttheirperformances.

Many employees in the organisation operate with a

relativelyhighdegreeofautonomy. Thiscombined withtheheavy workloadofmostmanagers /

supervisors,may limitopportunitiestoconductregularobservationofemployeesperformance.

In addition, perceptions of ongoingmonitoringmay foster a sense of surveillance which can

damagestaffmorale. A moresuitableapproachmay beto keepcriticalincidentreportsthatnote

specific examples of both excellent and unsatisfactory performances. Supervisors can also


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encourageemployees to keep trackof theirownperformance records suchas emailsor letters

thatcommendthemontheirachievements.

Traditionally,ithas beenthesoleresponsibilityofmanagers / supervisorstoassessperformance.

However, other organisationalmembers can be a valuable source of information as they are

likely to have exposure to different aspects of a employees performance. This approach is

known as 360-degree feedback. For instance, coworkers can provide valuable information on

teamworkskills,andsubordinatescanprovideusefulinformationonleadershipstyle.

There are many advantages to obtaining feedback on performance from sources other than

supervisorsormanagers. Key benefitsinclude:

Accuracy and reduced bias (incorrect information from one source can be

correctedfromanother)

Increased likelihood that employees will perceive the performance appraisal

system to be a fair and accurate reflection of their performance (compared to

relyingonsupervisorratingsalone).

If timeandresourcesare limited, it isrecommended thatsupervisorappraisals beconducted in

conjunction withself-assessment. Includingself-assessmentsaspartof theappraisalprocess is

likelytoenhanceemployeescommitmentto,andsatisfaction with,theappraisalprocess. Italso

provides employees with an opportunity to identify barriers and facilitators to effective

performanceintheirworkenvironment.

Fivedifferentsourcesofperformanceappraisalinformationareconsideredhere:

i) Manager/ supervisorappraisals

ii) Selfappraisals

iii) Coworkerappraisals

iv) Subordinateappraisals

v) Clientappraisals.

i) Manager / supervisor appraisals:Managers / supervisorsplayacentralrole in the appraisalprocess,andshouldalways be

included as one of themain appraisers. In essence,managers and supervisors have two

rolesinperformanceappraisal:


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1. Judge:assessingperformance

2. Coach:providingconstructivefeedbackandidentifyingareasforimprovement.

Performing both roles simultaneously can be difficult. Employees may be reluctant to

admit areas for improvement ifperformance assessment is linked with desiredoutcomes

such as pay, promotion or opportunities to work in desired areas. One solution is to

separatethe judgeandcoachroles byconductingseparateappraisalmeetings.

ii) Self-appraisals:

The process of evaluating ones own performance can help to increase employees

commitment to the appraisal process, perceptions of appraisal fairness, and satisfaction

with the appraisal process. Self-appraisal can also be useful for identifying areas for

development. Not surprisingly, self-appraisals are usually biased towards leniency.

Strategiestoincreasetheaccuracyofselfappraisalsinclude:

a) Using clear definitions of performance criteria linked to specific, observable

behaviours

b) Informing employees that their ratings will be checked and compared to other

sourcesofappraisal (i.e.,foraccuracy)

d) Ensuringemployeesreceiveregularfeedbackontheirperformance.

It is recommended thatself appraisalsareused forprofessionaldevelopmentpurposes,

ratherthanformakingadministrativedecisions (i.e.,payincreases,promotion).

iii) Coworker appraisals:

Coworkers can providevaluable feedbackonperformance,particularly where teamwork

occurs. Coworkersareoftenawareofdifferentaspectsofaemployeesperformance thatmanagers /supervisorsmay not have the opportunity to observe. In addition, as there is

usuallymorethanonecoworkerwhoratesa workersperformance,theirevaluationstend

to be more reliable. Coworker evaluations, however, may be biased towards those

individualsmost welllikedinanorganisation (i.e.,friendship bias). Furthermore,coworker

appraisalsmay have a negative impact on teamwork and cooperation if employees are


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competing withoneanotherfororganizational incentivesandrewards. Itisrecommended

thatcoworkerappraisalsareusedforprofessionaldevelopmentratherthanadministrative

decisions.

iv) Subordinate appraisals:

Subordinates are a valuable source of information regarding particular aspects of a

supervisor or leadersperformance such as communication, team building ordelegation.

Subordinates canprovide feedback tohelpmanagers / supervisorsdevelop their skills in

theseareas. The focusshould beonaspectsofmanagerialperformance thatsubordinates

are able to comment upon. This source of appraisalmay only be appropriate in larger

organisations wheretherearesufficientsubordinatestoallow anonymity.

v) Client appraisals:

Clientsmay also offer a different perspectiveona employeesperformance,particularly

forjobsthatrequireahighdegreeofinteraction withpeople. Forexample,clientappraisals

can beavaluablesourceof feedbackregarding thequalityofserviceprovision (e.g., the

qualityofinteraction,degreeofempathy,levelofsupport,degreeofprofessionalism).

Organisationsoftenhaveperformancecontractsthatspecifygoals

and deliverables for client outcomes. Whilst it is important that organisational goals and

deliverablesarereflected in theappraisalcriteria for individualsand teams, it isrecommended

thatparticularcare betakenifincorporatingclientoutcomes.

Relyingonclientoutcomesasan indicatorofperformancecanhaveundesirableeffectsdue to

the complex and sensitive nature of work. A range of factorsmay influence client outcomes,

manyofwhichareoutside thecontrolofan individualemployee. It israre forasuccessful (or

otherwise)outcome to be thesoleresultofonepersonsefforts. Thismakesclientoutcomesa

poor reflection of the quality of treatment provided by the employee. For example, good

employeeperformance willnotalways bringaboutclientimprovements,andclientrelapsesmaynot bedueto pooremployeeperformance.

In addition to considering client outcomes, itmay also be beneficial to focus on employees

skillsandabilitiesinprovidingservicesperse (i.e.,independentofclientoutcomes).


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Strategies to support appraisers and enhance appraisal accuracy

Rating another persons performance is not an easy task, particularly with complex jobs or

performance criteria. Strategies to support appraisers and increase the likelihood of accurate

assessmentsinclude:

Providingpractical training inrating techniques, which includesopportunities to

practiceappraisingperformanceandprovidingfeedback

Limiting the assessment to performance criteria that an appraiser has observed

/experiencedinregardtotheemployee

Providing structured assessment tools with clear explanations regarding the

criteriato beassessed,andperformancestandard.

STEP 4:CONDUCT AN APPRAISAL INTERVIEW

Thenextstep inaperformanceappraisal is toconduct theappraisal interview. Thetwocentral

purposesoftheappraisalinterview areto:

Reflect on past performance to identifymajor achievements, areas that require

furtherdevelopment,and barriers / facilitatorstoeffectiveperformance

Identifygoalsandstrategiesforfuture workpractice.

Asdiscussed below,supervisorsandmanagers canusea rangeofstrategies to ensure that the

appraisalinterview ispositive,constructiveandofgreatest benefitforemployeeseffectiveness.

Before the interview

Help employees to become familiar and comfortable with talking about their

performance by engaging inregular, informalcommunicationon workprogress,

potentialobstaclesandissues,possiblesolutionsandassistance

Encourage employees to prepare employees should be encouraged to review

theirownperformance beforetheinterview

Doyourownpreparation planahead. Draftalistoftheissuesthatyou wantto

address with the employee (i.e., strengths and weaknesses of performance,

strategies to improve performance). Give specific examples of the employees

performancesthatyou wanttohighlight. Duringtheinterview


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Encourageemployeeparticipation start by invitingtheemployeetosharetheir

viewsabouttheirperformance

Begin withpositivefeedbacktoputtheemployeeatease

Makeitatwo-waydiscussion

Set goals mutually ensure employees participate in determining specific,

challenging butattainablegoalsforfuture workperformance

Ensure that there is a clear agreement on performance objectives and the

evaluationcriteriaforthenextyear

Keep written records of the appraisal interview on which both parties have

signedoff.

After the interview

Coach employees regularly provide frequent feedback to help employees

improvetheirperformance

Assess progress towards goals frequently periodic reviewing of progress

towards goals helps keep behaviour on track and enhances commitment to

effectiveperformance.

Relate rewards to performance by linking appraisal results to employment

decisionssuchaspromotionsandsalaries,employeesaremore likely toprepare

for,participatein,and besatisfied withtheappraisalsystem.

STEP 5:EVALUATE THE APPRAISAL PROCESS

As with any organisational system, the performance appraisal process should undergo regular

review andimprovement. Forexample,theprocessofperformanceappraisalcould beevaluated

by conducting focus groups or surveys with employees to gauge their satisfaction with the

appraisalprocess (andsuggestionsforimprovements). Itmayalso beusefultomonitorthetypes

of issues raised by supervisors and employees over time. A successful performance appraisalprocessshoulddemonstrateachangein boththeratingsofemployeesperformance (i.e.,ideally

performanceratingsshouldimprove,oratleastremainatasatisfactorilystablelevelovertime)

and the work environment (i.e., evidence that significant barriers to work practice are being

addressed bytheorganisation).


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METHODS OF

PERFORMANCE

APPRAISAL


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Methods of Performance Appraisal

A) Past-oriented methods

1)

Rating

Scales

:

Theratingscalemethodoffersahighdegreeofstructureforappraisals.Eachemployeetraitor

characteristic isratedona bipolarscale thatusuallyhasseveralpointsranging from poor to

excellent (orsomesimilararrangement).

Thetraitsassessedonthesescales includeemployeeattributes

such as cooperation, communications ability, initiative,punctuality and technical (workskills)

competence. The nature and scope of the traits selected for inclusion is limited only by the

imagination of the scales designer, or by the organizations need to know. The onemajorprovisioninselectingtraitsisthattheyshould beinsome wayrelevanttotheappraisees job.

Advantages

Thegreatestadvantageofratingscales isthattheyarestructuredandstandardised. Thisallows

ratings to be easily compared and contrasted- even for entire workforces. Each employee is

subjected to the same basic appraisal process and rating criteria, with the same range of

responses. This encourages equality in treatment for all appraisees and imposes standard

measuresofperformanceacrossallpartsoftheorganization.

Rating scale methods are easy to use and understand. The

conceptoftheratingscalemakesobvioussense; bothappraisersandappraiseeshaveanintuitive

appreciation for the simple and efficient logic of the bipolar scale. The result is widespread

acceptanceandpopularityforthisapproach.

DisadvantagesTrait Relevance

Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is

inevitable that witha standardised and fixedsystemof appraisal that certain traits willhave a

greaterrelevanceinsome jobsthaninothers.


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Forexample,thetrait initiativemightnot beveryimportantina job thatistightlydefinedand

rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an

employeelacksinitiative. Rather,itmayreflectthatfactthatanemployeehasfew opportunities

to use and display that particular trait. The relevance of rating scales is therefore said to be

context-sensitive. Job and workplacecircumstancesmust betakenintoaccount.

Systemic Disadvantage

Rating scales, and the traits they purport tomeasure, generally attempt to encapsulate all the

relevant indicatorsof employeeperformance. There isanassumption thatall the trueand best

indicatorsofperformanceareincluded,andallfalseandirrelevantindicatorsareexcluded.

This is an assumption very difficult to prove in practice. It is possible that an employees

performance may depend on factors that have not been included in the selected traits. Such

employeesmayendup withratingsthatdonottrulyorfairlyreflecttheireffortorvaluetothe

organization.Employeesinthisclassaresystemicallydisadvantaged bytheratingscalemethod.

Perceptual Errors

Thisincludesvarious well-knownproblemsofselectiveperception (suchasthehornsandhalos

effect)as wellasproblemsofperceivedmeaning.Selectiveperceptionisthehumantendencyto

makeprivateandhighlysubjectiveassessmentsofwhataperson is really like,andthenseek

evidencetosupportthatview (whileignoringordownplayingevidencethatmightcontradictit).

This isacommonandnormalpsychologicalphenomenon. Allhuman beingsareaffected by it.

Inotherwords, weseeinothers what we wanttoseeinthem.

An example is the supervisor who believes that an employee is

inherentlygood (halo effect)and so ignores evidence thatmightsuggestotherwise. Insteadof

correctingtheslackeningemployee,thesupervisorcoversforthemandmayevenofferexcuses

fortheirdecliningperformance.

Ontheotherhand,asupervisormayhaveformedtheimpressionthatanemployeeis bad (horns

effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and

alwaysreadytocriticizeandunderminethem.


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Thehornsandhaloeffectisrarelyseeninitsextremeandobviousforms.Butinitsmoresubtle

manifestations, itcan beasignificant threat to theeffectivenessandcredibilityofperformance

appraisal.

Perceived Meaning

Problemsofperceivedmeaningoccurwhenappraisersdonotsharethesameopinionaboutthe

meaningoftheselectedtraitsandthelanguageusedontheratingscales.

Forexample,tooneappraiser,anemployeemaydemonstratethetraitof initiative byreporting

workproblemstoasupervisor. Toanotherappraiser,thismightsuggestanexcessivedependence

onsupervisoryassistance-andthusalackofinitiative.As well,thelanguageandtermsusedto

constructascale-suchas Performanceexceedsexpectations orBelow averageskill-may

meandifferentthingstodifferentappraisers.

Rating Errors

The problem here is not somuch errors in perception as errors in appraiser judgement and

motive. Unlikeperceptualerrors, these errorsmay be (at times)deliberate. Themost common

ratingerroriscentraltendency.

Busyappraisers,orthose waryofconfrontationsandrepercussions,may betemptedtodoleout

toomanypassive,middle-of-the-road ratings (e.g., satisfactoryor adequate), regardlessof

theactualperformanceofasubordinate. Thus thespreadofratings tends toclumpexcessively

aroundthemiddleofthescale.

This problem is worsened in organizations where the appraisal process does not enjoy strong

managementsupport,orwheretheappraisersdonotfeelconfident withthetaskofappraisal.

2) Check-list Method:Underthismethod,checklistofStatementsofTraitsofemployeeintheformofYesorNo based

questionsisprepared. Here,therateronlydoesthereportingorcheckingand HRdepartmentdoes

theactualevaluation. Theraterconcernedhastotickappropriateanswersrelevanttotheappraisees.

When the check-list is completed, it is sent to HR department for further processing. Various

questions in thecheck listmayhaveeither equal weightageormore weightagemay begiven to


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those questions which aremore important. The HR department then calculates the total scores

whichshow theappraisalresultofanemployee.

Advantages economy,easeofadministration,limitedtrainingrequired,standardization.

Disadvantages Raters biases,useof improperweights by HR Dept,doesnotallow raterto

giverelativeratings.

3. Force Choice Method:

A series of statements arranged in the blocks of two ormore are given and the rater

indicates which statement is true or false. Therater is forced to make a choice. HR

departmentdoesactualassessment.

Advantages Absenceofpersonal biases becauseofforcedchoice.

Disadvantages Statementsmaynot becorrectlyframed.

4. Force Distribution Method:One of the problems faced in large organizations is relative assessment tendencies of raters.

Somearetoolenientandotherstoosevere. Thismethodovercomesthatproblem. Itforcesevery

one todoa comparative ratingofall the employeesonapredetermineddistributionpatternof

good to bad. Say 10% employees in ExcellentGrade, 20% inGoodGrade, 40% in Average

Grade, 20% in Below AverageGrade and 10% in Unsatisfiedgrade. The realproblemof this

methodoccurs inorganizations wherethere isatendencytopackcertain keydepartments with

all good employees and some other departments with discards and laggards. Relatively good

employees of key departments get poor rating and relatively poor employees of laggards

departmentsgetgoodrating.

5. Critical Incident Method:

Inthismethod,onlycriticalincidentsand behaviorassociated withtheseincidentsaretakenfor

evaluation. This method involves three steps. A test of noteworthy on the job behavior is

prepared. A group of experts then assigns scale values to them depending on the degree of

desirabilityforthe job. Finally,achecklistofincidents whichdefinegoodand bademployeesis

prepared.


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Advantages---Thismethodisveryusefulfordiscoveringpotentialofemployees whocan be

usefulincriticalsituation.

Disadvantages --- a) Negativeincidentsare,generally,morenoticeablethanpositiveones.

b) Therecordingofincidentsisacoretothesuperiorandmay beputoff and

easilyforgotten.

c)Overlyclosesupervisionmayresult.

6. Essay Method:

In the essaymethod approach, the appraiser prepares a written statement about the employee

being appraised. The statement usually concentrates on describing specific strengths and

weaknesses in job performance. It also suggests courses of action to remedy the identified

problem areas. The statement may be written and edited by the appraiser alone, or it be

composedincollaboration withtheappraisee.

Advantages

Theessaymethodisfarlessstructuredandconfiningthantheratingscalemethod. Itpermitsthe

appraiser to examine almost any relevant issue or attribute of performance. This contrasts

sharply with methods where the appraisal criteria are rigidly defined.

Appraisers may place whatever degree of emphasis on issues or attributes that they feel

appropriate. Thustheprocessisopen-endedandveryflexible. Theappraiserisnotlockedintoan

appraisal system the limits expressionorassumes that employee traits can beneatly dissected

andscaled.

y Disadvantages

Essaymethods are time-consuminganddifficult toadminister. Appraisersoften find the essaytechnique more demanding than methods such as rating scales.

The techniquesgreatestadvantage- freedomof expression - isalso itsgreatesthandicap. The

varying writing skills of appraisers can upset and distort the whole process. The process is

subjectiveand,inconsequence,itisdifficulttocompareandcontrasttheresultsofindividualsor

todraw any broadconclusionsaboutorganizationalneeds.


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7) Grading:

In thismethod, certain categoriesof abilitiesofperformancearedefined well inadvance and

personareputinparticularcategorydependingontheirtraitsandcharacteristics. Suchcategoriesmay bedefinitionallikeoutstanding,good,average,poor,verypoorormay beintermsofletter

like A,B, C, D etc with A indicatingthe bestand D indicatingthe worst. Thismethod,however,

suffersfromone basiclimitationthattheratermayratemostoftheemployeesathighergrades.

8) Performance Tests & Observations:

This is based on the test of knowledge or skills. The tests may be written or an actual

presentationofskills. Testsmust bereliableandvalidatedto beuseful.

Advantage Tests onlymeasure potential and not attitude. Actual performance ismore a

functionofattitudeofpersonthanpotential.

Disadvantages Sometimescostsoftestdevelopmentoradministrationarehigh.

9) Confidential Reports:

Thoughpopularwithgovernmentdepartments,itsapplicationinindustryisnotruledout. Here

the report isgiven in the formofAnnual Confidentiality Report (ACR). Thesystem ishighlysecretive and confidential. Feedback to theassessee isgivenonly in caseofanadverse entry.

Disadvantage is that it is highly prone to biases and recency effect and ratings can be

manipulated becausetheevaluationsarelinkedtofuturerewardslikepromotions,goodpostings,

etc.

10) Comparative Evaluation Method (Ranking & Paired Comparisons):

These are collection of different methods that compare performance with that of other co-

workers. Theusualtechniquesusedmay berankingmethodsandpairedcomparisonmethod.

y Ranking Method:

Superiorrankshis workerbasedonmerit,from best to worst. Howeverhow best

and why bestarenotelaboratedinthismethod. Itiseasytoadminister.


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y Paired Comparison Method:

In thismethod each employee is paired with every other employee inthe same

cadreandthencomparativeratingdoneinpairssoformed.

The number of comparisonsmay be calculated with the help of a formula N x (N-1) / 2. The

methodistootediousforlargedepartmentsandoftensuchexactdetailsarenotavailable withrater.

B) Future-Oriented Methods

1) MBO (management by objective) :

The use of management objectives was first widely advocated in the 1950s by the noted

managementtheoristPeterDrucker. MBO (management byobjectives)methodsofperformance

appraisalareresults-oriented. Thatis,theyseektomeasureemployeeperformance byexamining

the extent to which predetermined work objectives have beenmet. Usually the objectives are

established jointly bythesupervisorandsubordinate.

Once an objective is agreed, the employee is usually

expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically

they do not rely on others to locate and specify their strengths and weaknesses. They are

expectedtomonitortheirowndevelopmentandprogress.

Advantages

The MBOapproachovercomessomeoftheproblemsthatariseasaresultofassumingthatthe

employee traits needed for job success can be reliably identified and measured. Instead of

assuming traits, the MBOmethod concentratesonactual outcomes. If the employeemeets or

exceeds the set objectives, then he or she has demonstrated an acceptable level of job

performance. Employeesare judged according to realoutcomes,and noton theirpotential for

success,oronsomeonessubjectiveopinionoftheirabilities.

Theguidingprincipleof the MBOapproach is thatdirectresultscan beobserved, whereas the

traits and attributes of employees (whichmayormay not contribute to performance)must be

guessedator inferred. The MBOmethodrecognizesthefactthat it isdifficulttoneatlydissect

allthecomplexandvariedelementsthatgotomakeupemployeeperformance. MBOadvocates


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claimthattheperformanceofemployeescannot be brokenupintosomanyconstituentparts-as

onemighttakeapartanenginetostudyit.Butputallthepartstogetherandtheperformancemay

bedirectlyobservedandmeasured.

Disadvantages

MBOmethodsofperformanceappraisalcangiveemployeesasatisfyingsenseofautonomyand

achievement.Butonthedownside,theycanleadtounrealisticexpectationsabout whatcanand

cannot bereasonablyaccomplished. Supervisorsandsubordinatesmusthaveverygood reality

checking skills touse MBO appraisalmethods. They will need these skillsduring the initial

stage of objective setting, and for the purposes of self-auditing and self-monitoring.

Unfortunately,researchstudieshaveshownrepeatedlythathuman beingstendtolacktheskills

neededtodotheirown realitychecking. Noraretheseskillseasilyconveyed bytraining.

Reality itself isan intenselypersonal experience,proneto

allformsofperceptual bias.Oneof the strengthsof the MBOmethod is theclarityofpurpose

thatflowsfromasetofwell-articulatedobjectives.Butthiscan beasourceofweaknessalso. It

has becomeveryapparentthatthemodernorganizationmust beflexibletosurvive.Objectives,

bytheirverynature,tendtoimposeacertainrigidity.Ofcourse,theobviousansweristomake

the objectivesmore fluid and yielding. But the penalty for fluidity is lossof clarity. Variable

objectives may cause employee confusion. It is also possible that fluid objectives may be

distortedtodisguiseorjustifyfailuresinperformance.

2) Assessment Center Method:This technique wasfirstdeveloped in USA and UK in 1943. Anassessmentcentre isacentral

location wheremanagersmaycome together tohave theirparticipation in job relatedexercises

evaluated bytrainedobservers. Itismorefocusedonobservationofbehavioursacrossaseriesof

select exercises or work samples. Assesses are requested to participate in in-basket exercises,

workgroups,computersimulations,roleplayingandothersimilaractivities whichrequiresame

attributesforsuccessfulperformanceinactual job.

Advantages Well-conducted assessment centre can achieve better forecasts of future

performanceandprogressthanothermethodsofappraisals. Alsoreliability,contentvalidityand

predictiveabilityaresaid to behigh in Assessment Centres. The testsalsomake sure that the


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wrongpeoplearenothiredorpromoted. Finally, itclearlydefinesthecriteriaforselectionand

promotion.

Disadvantages Concentrates on future performance potential. No assessment of past

performance. Costs of employees travelling and lodging, psychologists. Ratings strongly

influenced byassesseesinter-personalskills. Solidperformersmayfeelsuffocatedinsimulated

situations.

3) 360o Appraisal:It is a technique in which performance data/feedback/rating is collected from all sections of

people employee interacts in the courseofhis job like immediatesupervisors, teammembers,

customers,peers, subordinates and selfwithdifferent weightage to each groupof raters. This

techniquehas beenfoundto beextremelyusefulandeffective. Itisespeciallyusefultomeasure

inter-personalskills,customersatisfactionandteam buildingskills.

One of the biggest advantages of this system is that assesssees cannot afford to neglect any

constituencyandhas to show all-roundperformance. However,on thenegativeside,receiving

feedbackfrommultiplesourcescan beintimidating,threatening,expensiveandtimeconsuming.

4) Psychological Appraisals:Theseappraisalsaremoredirected toassessemployeespotentialforfutureperformancerather

than the past one. It is done in the form of in-depth interviews, psychological tests, and

discussion with supervisorsand review ofother evaluations. It ismore focusedon employees

emotional, intellectual, and motivational and other personal characteristics affecting his

performance.

Thisapproach isslow andcostlyandmay beuseful forbrightyoungmembers whomayhave

considerable potential. However qualityof these appraisals largely depends upon the skillsof

psychologistswhoperformtheevaluation.


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RESEARCH

METHODOLOGY & DATA

ANALYSIS


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Research Methodology

Methodologymeansasimplesetofmethodsorprocedures,theyrelatetoaparticulardiscipline

orfieldofinquiry.

Thereare mainlythreetypesofresearchmethodology:-

a) Exploratory ResearchorFormulative Research

b) Descriptive Research

c) Casual Research

Exploratory Research

Theobjectiveofexploratoryresearch is togatherpreliminary information that willhelpdefine

problems and suggest hypotheses. Exploratory research provides insights into andcomprehensionofanissueorsituation. Itshoulddraw definitiveconclusionsonly withextreme

caution.Exploratory research isa typeofresearch conducted becauseaproblem hasnot been

clearlydefined. Exploratory research helps determine the best researchdesign,data collection

methodandselectionofsubjects.

Exploratory research is used when problems are in a

preliminarystage.Exploratory researchisused whenthetopicorissueisnew and whendatais

difficult to collect.Exploratory research is flexibleand canaddress researchquestionsofall

types (what, why,how).Exploratory researchisoftenusedtogenerateformalhypotheses.

Descriptive Research

The objective of descriptive research is to describe things, such as themarket potential for a

product or the demographics and attitudes of consumers who buy the product. Descriptive

research, also known as statistical research, describes data and characteristics about the

populationorphenomenon beingstudied. Descriptiveresearchanswersthequestionswho,what,

where,whenandhow...

Although the datadescription is factual,accurateand systematic, the research cannotdescribe

what caused a situation. Thus, Descriptive research cannot be used to create a causal

relationship, whereonevariableaffectsanother.


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Inshortdescriptive researchdeals witheverythingthatcan becountedandstudied.Butthere

are always restrictions to that. Your researchmust have an impact to the lives of the people

aroundyou. Forexample,finding themostfrequentdisease thataffects thechildrenofa town.

Thereaderof theresearch will know what todo toprevent thatdisease thus,morepeople will

liveahealthylife.

Descriptive research generally goes before explanatory research. Descriptive research

generally precedes explanatory research. For example, over time chemists have described the

elements through the periodic table. The periodic tables description of the elements allows

peopletothinkabouttheelementsinhelpfulways. Itallowsforexplanationandprediction when

elementsarecombined.

Casual Research

Causal Researchexplorestheeffectofonethingonanotherandmorespecifically,theeffectof

onevariableonanother.

Theresearchisusedtomeasure whatimpactaspecificchange willhaveonexistingnormsand

allowsmarketresearcherstopredicthypotheticalscenariosupon whichacompanycan base its

businessplan.

For example, if a clothing company currently sells blue denim jeans, causal research can

measuretheimpactofthecompanychangingtheproductdesigntothecolourwhite.

Following theresearch,company bosses will beable todecide whetherchanging thecolourof

the jeansto white would beprofitable.

Tosummarise,causalresearch isa wayofseeinghow actionsnow willaffecta business inthe

future.

Causal Research 'Theobjectiveofcausal Research istotesthypothesesaboutcause-and-effect

relationship.


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Data Anal i

1. Are you satisfiedt e performance appraisal systemof yourorgani ation ?

a) Strongly agree 35

b) Agree 8

c) Disagree 5

d) Neit eragree nordisagree 2

50

Fig: percentages ofrespondentperson

70%

16%

10%

4%

1

a

b

c

d


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2. Are you provide adequatetraining anddevelopment programmein yourorgani ation ?

a) Strongly agree 37b) Agree 8

c) Disagree 3


50

Fig: percentages ofrespondent person

74%

16%

6%4%

2

a

b

c

d


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3. Are you satisfiedin t e promotion policy of yourorgani ation ?


c) Disagree 5


50


60%20%

10%

10%

3

a

b

c

d


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4. Are you satisfiedt e working condition of yourorgani ation ?


c) Disagree 4


50


64%

16%

8%

12%

4

a

b

c

d


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5. Are performance appraisal systemis helpfulto theemployee productivity ?


b) Agree 5

c) Disagree 4

d) Neitheragree nordisagree 2

50


78%

10%

8%

4%

5

a

b

c

d


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6. Are performance appraisal systemis a key of organi ational productivity ?


b) Agree 5

c) Disagree 3


50


80%

10%

6%4%

6

a

b

d


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7. Are performance appraisal systemimprovedjob satisfaction and betteremployee

retention ?


b) Agree 6

c) Disagree 5


50


74%

12%

10%

4%

7

a

b

d


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8. Are performance appraisal systemis a good competency mapping ?


c) Disagree 3


50


60%

30%

6%4%

8

a

b

c

d


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FINDINGS & SUGGESTION


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Findings and Suggestion of Performance Appraisal

Performanceappraisalisplaygreatroleforthegrowthanddevelopmentoftheorganization. In

recentlyyearperformanceappraisalismostimportanttotheeveryorganizationforthepurposeofproductivityandpromotionpolicy.

Some specific findings:

Performanceappraisalisveryhelpfultoevaluatetheemployeesperformance.

Good job performanceemployeesincreasetheproductivity.

Highlysatisfyemployeesperformvery well.

Motivatedemployeesalsoperformvery well.

Performanceappraisaldevelopthepromotionpolicy,transferpolicyordemotionpolicy.

Performance appraisal tomaintain the good relationship between topmanagement and

subordinate.

Every organization, irrespective of its size, has an appraisal system for its employees.

This implies the performance appraisal has become an indispensable activity in any

organization.

Mostofthecompanieshaveseparateappraisalsystemforeachlevelofemployees. These

appraisalsystemsdifferonthefactorson whichapersonisratedandthenatureofduties

handled byhim.

Even whenasameappraisalsystemexistsindifferentorganisations,theprobabilityofits

successisnotthesame.

Thiscan beattributedtothefollowingfactors:implementationproblems,organizational

climate,andcommitmentfromtopmanagement.

Inmostofthecompaniesitisseenthattheemployeesarenotsatisfied withthe waythey

are appraised or they havent been appraised properly. For thismatter, almost all the

companieshaveinterview anddiscussion.

Thefrequencyofappraisalinallorganisationsisyearly. Whereappraisalis basedon Key

Result Areas,amid-termreview isalsoundertaken.

Thisdataisthencompiledandthefinalappraisalisconductedattheendoftheyear.


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Inmostofthecasesthe immediatesupervisors istheappraiser butsome timesit isalso

the HRdepartmentorthe HOD.

All organizations have goal setting as part of appraisal. The performance is evaluated

againstthesetargets.

Onanaverage 85% of the employees inanorganizationaremotivated byperformance

appraisal.

Mostofthecompaniesusethedatathatismaintainedforeveryemployeetocomparethe

performanceoveraperiodoftime.

Some companies also use this data for making decision regarding job rotation,

successionplanning. Veryfew companiesmakeuseofthisdataforretrenchmentasproof

ofpoorperformance.

A gooddealofrespondents felt thatappraisal is likely to bemoresuccessful when it is

linked with financial and semi-financial incentives like promotion, bonus, increments.

This increases the commitment from the parties concerned the appraisal and the

appraisee.

Inmost of the organizations training is provided for the appraisal system one to two

weeks beforetheappraisalandalso whennew orrevisedPerformanceappraisalsystemis

introduced.

Performance appraisal is surly a good indicator (about 80%) for the training and

developmentalneedoftheemployees.

Nomonitoringisdonetofindoutanyloopholesintheperformanceappraisalsystemand

ifitexists,itisoninformal basis (feedbackeveryyear).

Awareness sessions about the performance appraisal (objectives and importance) are

conductedinafew organization.

It is normally done for new employees. Almost all the

companiesaresatisfied withthecurrentperformanceappraisalsystemanddonotrequire

anychanges.

360odegreefeedbacksystemisnotverypopularinthe Indiancompanies.

Mostofthecompanieshaveaseparateappraisalsystemforthenew employees, whoare

onprobation.


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Some specific suggestion :

Developclearjob description.

Toselectappropriateselectionprocess.

Toprovideeffectivenessorientationprogram,educationandtraining.

Toprovideon-goingcoachingandfeedback.

Conductquarterlyperformancedevelopmentdiscussion.

Toprovidepromotionandcareerdevelopmentopportunities.

Todeveloptheskills, knowledgeandabilitythroughthetrainingprocess.

Toprovidethe job rotationand job enhancementtotheemployees.

Tomotivatedtheemployees, whichisveryhelpfultoincreasetheorganizationalproductivity.

Performanceappraisalshouldnot beperceived justasaregularactivity butits

importanceshould berecognizedandcommunicateddownthelinetoalltheemployees.

Thereshould beareview ofjob analysis, job designand workenvironment basedonthe

performanceappraisal.

Itshould bringmoreclaritytothegoalandvisionoftheorganisation.

Itshouldprovidemoreempowermenttotheemployees.

New methodsofappraisalshould beadoptedsothat bothappraiserandtheappraiseetake

interestintheappraisalprocess.

Theemployees whohaveexcellentperformanceshould beusedasamentor forother

employees which wouldmotivateotherstoperform better.

Employeesshould begivenfeedbackregardingtheirappraisal. This willhelpthemto

improveontheirweakareas.

Financialandnon-financialincentivesshould belinkedtotheannualappraisalsystemso

thatemployees would bemotivatedtoperform better.

New mechanismsshould beevolvedtoeducethetimefactorinvolvedintheprocedureof

appraisal. Introducingonline-appraisalcandothis.

Thefrequencyoftrainingprogramfortheappraisershould beincreasedandthese

sessionsshould bemadeinteractive.


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Theawarenesssessionsfortheemployees/appraiseesshould bemademoreinteractive

andtheviewsandopinionoftheappraiseesregardingappraisalshould begivendue

consideration.

Assistanceshould besoughtfromspecialistsforframingaproperappraisalsystemthat

suitstheorganisationclimate. Constantmonitoringoftheappraisalsystemshould be

donethroughdiscussions,suggestions,interactions.

Combiningthedifferentmethodsofappraisalcanminimizetheelementofbiasnessinan

appraisal. Likethe Ratingmethodcombined withassessmentcentermethod wouldgive

anevidenceofpoor/unfavorableoroutstanding behaviouroftheappraisee,ifany.

Useofmodernappraisaltechniqueslike 360oappraisal,assessmentcenters whichare

moreeffective.

Moretransparencyshould be broughtaboutintheappraisalsystem.

Theappraisalsystemshouldcoverallemployeesintheorganisation both whitecollar

and blue-collarjobs.

Recognizingthegoodperformersi.e.,appraisees whohaveaccomplishedthetargetsfor

theyearcanhelpingettingmorecommitmentfromtheemployees.

Informationregardingtheperformanceoftheemployeesshould be keptinproper

manner.

Someoftheperformanceappraisalsshould beconducted bythetopmanagementsothat

theycanunderstandtheemployeesandtheirneeds, behaviourbetterandtofindoutthe

loopholes.

Performanceappraisalshould beeffectivelylinktotheperformancemanagementsystem

oftheorganisation.


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CONCLUSION OF

PERFORMANCEAPPRAISAL


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ESSENTIALS FOR A SUCCESSFUL PERFORMANCE APPRAISAL SYSTEM

Basingappraisalsonaccurateandcurrent job descriptions

Ensuring that appraisershaveadequate knowledge and direct experience of the

employeesperformance

Providing ratingsviaaggregatedanonymous feedback whenmultiplesourcesof

informationareused

Incorporatingperformanceappraisalsintoaformalgoalsettingsystem

Offering adequate support and assistance to employees such as professional

developmentopportunitiesinordertoimprovetheirperformance

Conductingappraisalsona regular basis (at least two times a year) rather than

annually.

Ifresourceconstraintsdonotpermitfrequentformalappraisals,considerconducting

oneformalappraisalannually, withareview ofprogressinthemid-yearandongoing

review inregularsupervisionmeetings

USING PERFORMANCE APPRAISAL TO ADDRESSWORKFORCE

1. DEVELOPMENT CHALLENGES

Regularperformanceappraisalsprovideausefulopportunitytoconducta check-upon

various workforce development issues thatmay impact on employees effectiveness and well

being.

2. Performance appraisals can be used to:

Recognise,rewardandsupporteffectiveperformance

Developandrewardeffectiveteamwork

Identifyandmanageissueslikelytoimpactonretention

Monitorandsupportemployees well being.


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Recognise, reward and support effective performance

Ensuring employees receive adequate rewards and

recognition isa key workforcedevelopment issuefor theperformance.Performanceappraisals

provideagoodopportunitytoformallyrecogniseemployeesachievementsandcontributionsto

theorganisation,andtoensureaclearlinkismaintained betweenperformanceandrewards. The

appraisal interview canalso beusedasavehicle todemonstratesupervisoryandorganisational

support for employees by discussing barriers and supports to effective performance, and

strategiestoaddressproblemsordifficulties.

Develop and reward effective teamwork

The appraisal interview is also a useful vehicle for

recognising and rewarding employees contributions to various teams in the organisation,

especially ifappraisal information isgainedfrom teammembers. Anappraisaloftheteamasa

wholecanalso beausefulstrategy torecogniseandreward teamperformance,and to identify

strategiestoimproveteamfunctioning.

Identify and manage issues likely to impact on retention

Open and constructive performance appraisals

can beusefulto identify issuesthatare likelytoimpactonemployees willingnesstostay with

the organisation in the longer-term. Key factors associated with retention include salary and

remuneration, professional development opportunities, and work-related demands and stress.

The appraisal interview provides a good opportunity for a check-up regarding employees

satisfaction with their working conditions and environment, and a discussion of strategies to

addressanyproblemsorissues.

Moni

tor and suppor

temployees well being

Performanceappraisalinterviewsareagoodopportunityto

discussemployeeshealthand well beinginthe workplace,particularlyinregardtofactorsthat

contributetofeelingsofstressandexperiencesthatpromotesatisfaction withtheirwork.


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[48]

Bibliography

Human Resource AndPersonnel Management - K. Aswathappa

Human Resource Management -P. Subba Rao

Human Resource Management - S.K.Bhattacharya

WEBLIOGRAPHY

www.google.com

www.jspl.com

www.performanceappraisal.com

www.humanresource.com


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Questionnaire for Performance Appraisal

1. Areyousatisfiedtheperformanceappraisalsystemofyourorganization?

a)

Stronglyagreeb) Agree

c) Disagree

d) Neitheragreenordisagree

2. Areyou provideadequatetraininganddevelopmentprogrammesofyourorganization?

a) Stronglyagree

b) Agree

c) Disagree


3. Areyousatisfiedinthepromotionpolicyofyourorganization?

a) Stronglyagree

b) Agree

c) Disagree


4. Areyousatisfiedthe workingconditionofyourorganization?

a) Stronglyagree

b) Agree

c) Disagree


5. Are performanceappraisalsystemhelpfultotheemployeeproductivity?

a) Stronglyagree

b) Agree

c) Disagree


6. Areperformanceappraisalsystemisa keyoforganizationalproductivity?

a) Stronglyagree

b) Agree

c) Disagree



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7. Are performance appraisal system improved job satisfaction and better employee

retention?

a) Stronglyagree

b) Agree

c) Disagree


8. Areperformanceappraisalsystemisagoodcompetencymappingtechnique?

a) Stronglyagree

b) Agree

c) Disagree


Other Question :-

1) According to you what is performance appraisal system? A regularactivityconductedperiodicallytorateanemployee.

Anactivitytoidentifythedevelopmentalneedoftheemployee.

Anactivityto keepacheckontheperformanceofemployees.

A systemtohelpemployeesidentifyhisownstrengthsand weakness with respect

tohis job.

An instrument to control employees behaviour through rewards, punishment andthreats.

A meanstoimprovecommunication betweenthesuperiorandsubordinate.

2) What is the objective ofthe performance appraisal system in your organisation? Tomakedecisionsregardingsalaryincrease.

Toidentifythetraininganddevelopmentalneedsoftheemployees

Tomakedecisionsregardingtransfersorpromotions.

Tofacilitatecommunication betweenthesuperiorand hissubordinates.

3) Do you have a separate Appraisal system for each class of employees? If yes, what isth

e classification?

Executives

Clerical jobs

Secretarial jobs. Supervisorystaff

New employees


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4). How is Appraisal done?

Formal Informal

Combinationofthese

5). Who appraises?

Immediate Supervisors

Rating Committee

Peers

Subordinates

HR Department

HOD

6). Which method do you follow in these?

Ratingmethod Interview ordiscussion Forcechoicedescription MBO Checklistmethod

Humanassetaccounting Critical Incidents Method

360 degreeappraisal ConfidentialMethod

Psychological Appraisals

7. ) On what basis do you appraise an employee? Traits

Results

Job behaviour

A combinationofthese.

8.) Is Performance Appraisal a motivating factor for employees? Forallemployees.

Forsomeemployees.

Forveryfew employees.

Fornoneoftheemployees.

9.) How do you use the Performance Appraisal data that is maintained for everyemployee?

Tocomparehisperformanceoveraperiodoftime.

Duringretrenchment (asaproofperformance)

Thereisnouseofthedatamaintainedafteracertainperiodoftime.


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10.) Do you have a separate committee to review the Performance Appraisal results? Yes

No

11.) Do you think the system of Performance Appraisal has been successful in yourorganization and is able to achieve the required objectives in your organization?

Yes

No

study of performance appraisal

Documents