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.

No comments:

Post a Comment