Wednesday 17 February 2016

MEANING, DEFINITION AND CONCEPT OF PERFORMANCE APPRAISAL



MEANING, DEFINITION AND CONCEPT OF PERFORMANCE APPRAISAL 

BY

SMART LEARNING WAY 

              
CONTENTS 

  • INTRODUCTION TO PERFORMANCE APPRAISAL.
  • MEANING 0F PERFORMANCE APPRAISAL.
  • DEFINITION OF PERFORMANCE APPRAISAL.
  • CONCEPT OF PERFORMANCE APPRAISAL.
  • OBJECTIVES OF PERFORMANCE APPRAISAL.
  • ADVANTAGES OF PERFORMANCE APPRAISAL.
  • LIMITATION OF PERFORMANCE APPRAISAL.
  • METHODS OF PERFORMANCE APPRAISAL.
  • CASE STUDY OF PERFORMANCE APPRAISAL.
  • CONCLUSION.
  • BIBLIOGRAPHY.


INTRODUCTION TO PERFORMANCE APPRAISAL

      Performance appraisal is widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisal is an indispensable part of performance measurement.
  
    By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees.
 
Performance appraisal is composed of two words:
  1.  Performance.
  2. Appraisal.
     
     Performance indicates how the management of an enterprise has been accomplishing the goals which they had set for the enterprise. Performance is the measure of the degree to which an organization fulfills its purpose and its purpose is to achieve its objectives.  

     Appraisal refers to a critical review with a view to improving performance. It includes the act  to examine, to measure, to interpret and to draw conclusions.


MEANING 0F PERFORMANCE APPRAISAL

             People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people.

    Performance appraisals of employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.
 
        Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

     The latest mantra being followed by organizations across the world being- “ get paid according to what you contribute”- the focus of the organizations is turning to performance management and specifically to individual performance. 

       Performance appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows:


  • The supervisors measure the pay of   employees  and compare it with targets and plans.
  • The supervisors analyses the factors behind work performances of employees.
  • The employers are in position to guide the employees for a better performance. 

DEFINITION OF PERFORMANCE APPRAISAL

1)      Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

2)      Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time & planning for his future.

3)      According to FLIPPO, a prominent personality in the field of human resources , “performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job.”

4)      Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained or fired.

5)      Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

6)      Performance appraisal is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

7)      According to NEWSTORM “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performances.” 

8)      According to DOUGLASS “performance appraisal is a method of acquiring and processing the information needed to improve an individual employees performance and accomplishment.”

9)      Appraisals are a shared assessment of performance, where performance is appraised jointly and goals are agreed together. The individuals goals need to be aligned with those of the team or organization.

10)   Performance appraisal is the procuring, analyzing and documenting of facts and information about an employees net worth to the organization. It aims at measuring and constantly improving the employees present performance and tapping on the future potential.

11)   The process by which a manager or consultant:

·         Examines and evaluates an employees work behavior by comparing it with preset standards .

·         Documents the results of the comparison.

·         Uses the results to provide feedback to the employee to show where improvements are needed and why.          
                   
12)   Performance appraisals should be based on trust and mutual respect. An appraisal works best when manager and employee know each other and there is mutual respect between the two. Such conditions need to be built over time with the manager taking the lead.

13)   Appraisal are a part of the performance management cycle. Appraisal are an important part of performance management, but an appraisal in itself is not performance management. Performance management is a broader process of which an appraisal is only one stage.

E.g: In the performance management cycle, the review and planning elements typically form an appraisal. However, the development and performance stages are part of the broader performance management process. 

14)   Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee to the organization.

15)   Performance appraisal is an analysis of an employees recent successes and failures, personal strengths and weakness, and suitability for promotion or further training. It is also the judgment of an employees performance in a job based on considerations other than productivity.

CONCEPT OF PERFORMANCE APPRAISAL

Performance  appraisal system in any organization depends substantially on five factors- 

o        Concept.
o        Criteria 
o        Culture.
o        Context
o        Contingency. 

CONCEPT:

The performance dimensions are several. They include duties, responsibilities , behavior and traits. For each of the relevant dimensions and sub- dimension thereof standard will have to be fixed based on past performance, industrial engineering principles or any other base. Relatives  weight ages have to be assigned to each of these in turn.

Performance appraisal involves at least two persons/ parties: the appraised ( who does the appraisal and the appraise, whose performance is being appraised). The appraise should know the following aspects of performance appraisal: what, why, how, when and by where? In the context of performance appraisal, the appraise expects the following from the appraiser.

Proper appreciation of the mutuality and reciprocity in the roles is vital for clarity about the concept of the performance. This has indeed been highlighted in the recent,  for example memorandum of understanding which is a framework instrument  to analyze the performance of chief executives of public sector organizations in India.

“who” of the appraisal?

   The appraisal can be accomplished by one or more individual  involving a combination of the immediate supervisor, other managers acquainted with the assesses work, a higher level manager, a personnel manager, the assesses peers, the assesses himself and  the assesses subordinates.

“what” of  the appraisal?

   The “what” of the performance appraisal consist in appraising non- supervisory employee for their current performance, and managers for future potential. It also includes evaluation of human traits.

“Why” the appraisal?

         “Why” an appraisal is concerned with:
           a) Creating  and maintaining  a                                               satisfactory level of performance of                        employee in their present jobs.
           b) Highlighting employee needs  and                                 opportunities for personal growth and                   development.
           c) Aiding in decision- making for                                        promotions, transfers, lay-offs, and                                        discharge.
           d) Promotion understanding between                               the supervisor and subordinates.

“where” the appraisal?

    The “where” indicates the location where an employee may be evaluated. It is usually done at the place of work or office of the supervisor.
   Informal appraisals may take place anywhere  and everywhere , both on the job in work situation and off the job. 

“ when” the  appraisal?

   The “ when” answers the query about the frequency of appraisal has been suggested informal counseling should occur continuously. The managers should discuss an employee’s work as soon as possible after he has judged it.

“how” the appraisal?

   under “ how” the company must decide what different methods are available  and which of  these may be used for performance  appraisal. On the basis of the comparative advantage and disadvantage  it is decided which methods would suit the purpose best.

o        The main characteristics  of performance appraisal are as follow :
1)      Performance appraisal is a process consisting of a series of steps.
2)      It is systematic examination of an employee’s strengths and weakness in terms of the job.
3)      Performance appraisal is a scientific  or objective study. Formal  procedures  re used in this study. The same approach is adopted for all jobholders so that the results are comparable.
4)      It is an ongoing or continuous process wherein the evaluation are arranged periodically according to a definite plan.
5)      Performance appraisal is to secure information necessary  for making objective and correct decisions for employees.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal can be done with the  Following objectives in mind: 

  • To maintain records in order to determine compensation packages, wage structure, salary raises, etc.
  • To identify the strength and weakness of employees to place right men on right job.
  • To maintain and assess the potential present in a person for further growth and development.
  • To provide a feedback to employees regarding their performance and related status.
  • It serves as a basis for influencing working habits of the employees.
  • To review and retain the promotional and other training  programmes.
  • To enable an organization to maintain an inventory of the number and quality of all managers  and to identify and meet their training needs and aspirations.
  • To determine increments rewards, and provide a reliable index for promotions and transfers to positions of greater responsibility.
  • To maintain individual and group development by informing the employee of his performance standard.
  • To suggest ways of improving the employees performance when he is not found to be up to the mark during the review period.
  • To identify training and development needs and to evaluate effectiveness of training and development programmes.
  • To plan career development, human resources planning based on potentialities.
  •   To assess its capacity and ability to repay short-term and long-term loans.
  •   To estimate and examine the possibilities of its future growth.
  •   To estimate the administrative efficiency of    its management.
  •   To assess its earning capacity.

ADVANTAGES OF PERFORMANCE APPRAISAL

   The advantages of performance appraisal are as follows:
o        Promotion
o        Compensation
o        Employees development
o        Selection validation
o        Communication
o        Motivation

LIMITATION OF PERFORMANCE APPRAISAL

o         Lack of clarity.
o         Appraisal errors.
o         Unequal performance standards.
o         Very time consuming especially for a  manager with many employees.
o         If not done right can be a complete waste of time.

METHODS OF PERFORMANCE APPRAISAL

            Traditional Methods                                          
  1. Paired comparison
  2. Graphic Rating scales
  3.  Forced choice Description method
  4. Forced Distribution Method
  5. Checks lists
  6. Free essay method
  7. Critical Incidents
  8. Group Appraisal
  9. Field Review Method
  10. Confidential Report
  

Modern Methods
  1. Assessment Center
  2. Appraisal by Results or Management by Objectives
  3. Human Asset Accounting
  4. Behaviorally Anchored Rating scales
CASE STUDY OF PERFORMANCE APPRAISAL

  CARTER CLEANING COMPANY:

o        After spending several weeks on the job, Jennifer was surprised to discover that her father had not formally evaluated any employee’s performance for all the years that he had owned the business. 

      Jack’s position was that he had “ a hundred higher-priority things to attend”, such as boosting sales and lowering costs, and in any case, many contended Jack, manual workers such as  those doing the pressing and the cleaning did periodically get positive feedback in terms of praise from Jack, if things did not look right during one of his swings through the stores. 

o        Similarly, Jack was never shy about telling his managers about store problems so that they, too, got some feedback on where they stood.

o        This informal feedback notwithstanding, Jennifer believes that a more formal appraisal approach is needed. She believes that there are criteria such as quality, quantity, attendance , and punctuality that should be evaluated periodically even if a worker is paid on piece rate. 

o        Further more, she feels quite strongly that the managers need to have a list of quality standards for matters such as store cleanliness, efficiency, safety, and adherence to budget on which they know they are to be formally evaluated.

CONCLUSION

          Performance appraisal  is systematic way of judging the relative  importance of an employee in performing his/her task. It is undertaken for variety of purposes such as to consider employee  for salary increase, promotion transfer and transmission of services, to determine training and development needs of the employee and it establish basis for research reference relating to employee matter.

          An organization goals can be achieved only when people put in their best effort. How to ascertain whether an employee has shown his or her best performance on a given  job? The answer performance appraisal. Employee assessment is one of the  to a detailed discussion of the nature and process of conducting performance appraisal.

BIBILIOGRAPHY

o        HUMAN RESOURCE MANAGEMENT
     BY- H JOHN BERNARDIN
    PUBLISHER- MC-GRAW HILL PUBLISHER CO. LTD.

o        HUMAN RESOURCE MANAGEMENT
      BY- MIRZA. S. SAIYADAIN
   PUBLISHER- MC-GRAW HILL PUBLISHER CO. LTD.

o        HUMAN RESOURCE MANAGEMENT
     BY- DR.TRIPATHI.
    PUBLISHER- HIMALAYA PUBLISHING HOUSE.

o        HUMAN RESOURCE MANAGEMENT
     BY- DR. C.B GUPTA
    PUBLISHER- SULTAN CHAND & SONS NEW DELHI.

o        HUMAN RESOURCE MANAGEMENT & PERSONNEL MANAGEMENT IN INDIAN ENTERPRISES
     BY- K. S DWIVEDI
    PUBLISHER- GALGOTIA PUBLISHING CO. NEW DELHI.

o        PERSONNEL MANAGEMENT TEXT & CASES
     BY- DR. C.B MAMORIA,
            S.V GANKAR,
            DR. UDAI PAREKH.

    PUBLISHER- HIMALAYA PUBLISHING HOUSE.
o        HUMAN RESOURCE MANAGEMENT
     BY- LUIS. R. GOMEZ,
            DAVID. B. BALPIN,
            ROBERT. L. CARDY.
    PUBLISHER- PRENTICE HALL OF INDIA PVT. LTD.

o        HUMAN RESOURCE MANAGEMENT & PERSONNEL MANAGEMENT
     BY- K. ASWATHAPPA
    PUBLISHER- MC-GRAW HILL PUBLISHER CO. LTD.

OBJECTIVES & PROCEDURE OF INDUCTION - HUMAN RESOURCE MANAGEMENT THEORY




“OBJECTIVES & PROCEDURE OF INDUCTION”
 BY
SMART LEARNING WAY


CONTENTS

Introduction of induction
What is induction..?
Definition of induction
Objective of induction
Advantages of induction
Procedure of induction
Example of induction procedure
Summery
Bibliography

INTRODUCTION OF INDUCTION

                          Induction  is  designed  to  provide  a  new  employee  with  the  information  he  or  she  needs  to  function  comfortably  and  effectively  in  the  organization.  It  is  a  planned  introduction  of  new  hires  to  their  jobs,  their  peers  and  the  company.

                        Typically  induction  conveys  three  types  of  information  - General  information  the  daily  work  routine;A  review  of  the  firm’s  history,  founding  fathers,  objectives,  operations  and  product  or  services,  as  well  as  how  the  employee’s  job  contributes  to  the  organization's  needs.
A  detailed  presentation,  perhaps,  in  a  brochure,  of  the  organizational   policies,  work  rules  and  employee  benefit.           
                        Induction is a technique by which a new employee is rehabilitated into the changed surrounding and introduced to the practices, policies, and purpose of the organization. In other word, it is a welcoming process – the idea is to welcome a newcomer, make him feel at home and generate in him a feeling that his own job, however small, is meaningful and has a significance as a part of the total organization. 

WHAT IS INDUCTION? 

Induction is process meant to help the new employee to settle down quickly into the job by becoming familiar with the people, the surroundings, the job, the firm and the industry.
Induction is the process of acquainting the new employees with the existing culture and practices of the new organization.
Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and stars work.

DEFINITION OF INDUCTION

                       “Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work”
A process of demonstration in which a general truth is gathered from an examination of particular cases, one of which is known to be true, the examination being so conducted that each case is made to depend on the preceding one; -- called also successive induction.

 “The process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work.”
                                                                                                                      -Michael Armstrong

A  formal  definition  of  induction  is  “…planned  introduction  of  employees  to  their  jobs,  their  co-workers  and  the  organization.”

OBJECTIVE OF INDUCTION

 When  a  new  entrant  joins  an  organization,  he/she  is  an  utter  stranger  to  the  co-workers,  work  place  and  work  environment. As  such,  he/she  may  feel  insecure,  shy  and  nervous.  The  first  few  days  may  be  all  anxious  and  disturbing  once  for the  new  entrant.  Comes  from  rural  area,  he/she  find  himself/herself  completely  at  sea  in  an  industrial  town  and  city.  Then,  induction  helps  reduce  such  anxities  and  dispels  doubts  and  nervousness  from  the  mind  of  the  new  entrant. He  may  have  anxiety  caused  by  not  following  the  usual  practices  prevalent  in  the  organisation,  or  the  haphazard  procedures,  and  lack  of  information.  
                    
 He  may  have  anxiety  caused  by  not  following  the  usual  practices  prevalent  in  the  organization,  or  the  haphazard  procedures,  and  lack  of  information.
                     
 These  may  develop  discouragement,  disillusionment  or  defensive  behavior.  Induction  leads  to  reduction  of  such  anxieties;  dispels  the  irrational  fears  of  present  employees  and  hold  colleagues  responsible  for  assisting  the  new-comer  so  that  he  way  feel  confident.
                         
There  is  another  reason  for  effective  induction.  It  help  minimize  what  might  be  called  the  reality  shock  some  new  employees  undergo.  This  reality  shock  is  caused  by  the  incompatibility  between  what  the  employees  expect  in  their  new  jobs  and  the  realities  they  are  confronted  with.  The  comer  may  expect:

1. opportunities  for  advancement.
2. social  status  and  prestige – the  feeling  of  doing  something  important  and  the  recognition  of  this  by  others.
3. responsibility
4.opportunities  to  use  special  aptitude  and educational  background.
5.challenge  and  adventure
6. opportunities  to  be  creative  and  original,  and
7. lucrative  salary.
                                  
But  when  these  expectation  are  often  fulfilled  and,  therefore,  result  in  frustrating  experiences  for  new  employees,  experiences  of  which  include  jobs  with  low  initial  challenge,  inadequate  feed  back  and  inadequate  performance  appraisals.
                            
This  result  is  “reality  shock.”  orientation  can  help  overcome  this  problem  by  providing  for  more  realistic  expectations  on  the  part  of  new  employees  and  more  understanding  on  the  part  of  the  supervisors.
                          
 Finally,  the  purpose  of  induction  is  to  introduce  the  new  employee  and  the  organization  to  each  other,  to  help  them  become  acquainted,  and  to  help  them  accommodate  each  other.
                       
 The  new  comer  is  explained  what  is  expected  to  him  and  for  this,  he  is  explained  the  rules,  regulations,  policies  and  procedures  that  directly  affect  him.  He  is  made  aware  of  how  his  job  fits  into  the  overall  operation  of  the  organization,  his  own  duties  and  responsibilities,  and  to  whom  be  should  look  for  when  he  has  any  problem.

OBJECTIVE OF INDUCTION
·          
      Putting the new employee at his ease.
·         Creating interest in his job the company.
·         Providing basic in information about working arrangements.
·         Information him about training facilities.
·         Creating the feeling of social security.
·      Indicating the standards of performance and behavior expected of him. Making the employee feel that job, however small, is meaningful, that he is not a cog in the vast wheel.
·         To intimate them about the mission, aims and objectives of the company.
·         Provides information.
·         To general information about terms and conditions of employee.
·         To stimulate interest.
·         To give a clear understanding of their roles and responsibility.
·          Minimizes reality stock.
·   To helps the new comer to over come his shyness and nervousness in meeting new people in a new environment.
·         To give new comer necessary information such as location of a café, rest period etc.
·         To build new employee confidence in the organization.
·         To helps reducing labor turnover and absenteeism.
·         It reduces confusion and develops healthy relations in the organization.
·         To develop among the new comer a sense of belonging and loyalty to the organization.
·         To ensure that the new comer do not from false impression and negative attitude towards the organization.


ADVANTAGES OF INDUCTION

·         Induction helps to build up a two-way channel of communication between management and workers.
·         Proper induction facilitates informal relations and team work among the employees.
·         Induction helps to develop good relations.
·         A formal induction programme proves that the company is taking interest in getting him off good staff
·         Reduces employee dissatisfaction and grievances.
·         Develops a sense of belongingness and commitment.
·         Newcomer adjusts himself to the work quickly, and it sever the time of the supervisor.
·         First impression matter a good deal and result in less turnover.                   

INDUCTION PROCEDURE

 An organization has no obligation to make integration of the individual into the organization as smooth and anxiety-free as possible. What ever that is achieved through a formal or informal placement orientation programme depends on the size of the organization and the complexity of the individual’s new environment.
Many organizations develops formal induction programmes .   

These might include a tour of the offices or plant, a talk about the history of the organization, and short discussion with a         
Representatives of the personnel department who will describe the organization’s benefit plans.
Other organizations may utilize an informal induction programme which might include being assigned to another senior employee who will not only introduce the new worker to other workers but show him other things too.

There is no model induction procedure. Each industry develops its own procedures as per its needs.

The procedure should basically follow these steps:- 

First, the new person needs time and a place to report to work.

Second,  it is very important that the supervisor or the immediate boss meet and welcome the employee to the organization.

Third, administrative work should be completed. Such item as vacations, probationary period, medical absence, suggestion system should be covered.      
              
Fourth, the departmental induction can be conducted. This should include a get acquainted talk, , introduction to the department, explanation of the function of the department, and the job instruction and to whom he should look for help when has any problem.

Fifth, verbal explanations are supplemented by a wide variety of printed material, employee hand book, flyers, employee manuals, house-journals, picture stories, cartoons, pamphlets, etc. along with short guided tour around the plant.

The  following  steps  may  be  identified  as  the  stages  of  induction  process  from  the  earlier  discussion.

A  New  Employee  Orientation  Schedule

New  Employee     :  Mr.  Niraj  Mittal,  M.B.A.
                                 (Human  Resource  Mgmt)
                                  Bangalore  University,  1999.

Job  Title               :  Human  Resource – Executive

Department           :  Human  Resource Development

Reporting  Date     :  1st  June  1999.  8.00  AM 
                               :  Report  to  Ms.  Roopa.
                                HRD.  Chief

8.00  AM  to  9.00  AM  :  Ms.  Roopa  will:  Distribute
                                           brochures  describing  the
                                           organization's  history,
                                           Products  and  Philosophy
                                           Review  the  organization's
                                           overall  structure,  authority
                                           structure  within  the  HRD
                                          department.  Review  HRD 
                                          policies  and  practices.

9.30 to  10.30 AM  :  Mr.  Rao  will  discuss  company
                                   benefits,  new  employee  is  to
                                   fill  out  health,  tax  and  other 
                                   relevant  forms.

10.30  to11.30 AM :  Tour  to  main  building  and
                                  auxiliary  facilities  with 
                                  Ms.  Roopa.

11.30  to 12.30 PM  :  Lunch  with  HR  manager  and
                                   and  with  Ms.  Roopa.

12.30  to  3.00  PM  :  Mr.  Swaraj  will:
                                  
                                   
                                   : Provide  a  detailed  tour 
                                  of  the  production.  Marketing
                                  Department.
                                   Detailed  discussion  with 
                                  Chief  Executive-HRM  about 
                                  daily  job  routine  and 
                                  department  policies  and  rules

3.00 to 5.00 PM     :  New  employee  on  his  own  to
                                 familiarize  himself  with  his 
                                 job.

SUMMARY

Induction  is  the  planned  introduction  of  new  employee  to  their  jobs,  their  co-workers  and  the  organisation.  The  main  purpose  of  induction  is  to  relieve  the  new  employee  from  possible  anxiety  and  make  him  or  her  feel  at  home  on  the  job.

Induction  may  be  done  informally  or  formally.  Informal  induction  is  brief.  The  employee  is  expected  to  familiarise  with  the  new  environment  by  himself/herself  while  working  on  the  alloted  job.

Formal  induction  is  lengthy  and  may  last  even  a  few  months.  Formal  induction  is  shared  by  the  HR  representative  and  the  line  manager.  The  latter  briefs  the  new  employee  about  specific  job  duties  while  all  the  other  details  are  provided  by  the  HR  representative.  Some  companies  even  conduct  anxiety-reduction  seminars.

Preparing  for  the  induction  of  the  new  employee,  determining  the  information  the  new  employee  should  know,  and  presenting  the  information  effectively  are  the  requisites  of  an  ideal  orientation  programme.

BIBLIOGRAPHY

      1.)   Essential of human resource management and industrial relations.
           DR. P. subba rao
          Himalaya publishing house

      2.) Personnel Management
           C.B. Mamoria
          Himalaya publishing house

     3.) Personnel management (text & cases)
               C.B. Memoria
              S. V. Gankar
        Himalaya publishing house.

    4.)Human resource management (text & cases)
       S. S. khannna
       S. chand & company

    5.)Human resource management
         K. ashwatthapa
         TATA mc-hill public limited.