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:
- Performance.
- 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
- Paired comparison
- Graphic Rating scales
- Forced choice Description method
- Forced Distribution Method
- Checks lists
- Free essay method
- Critical Incidents
- Group Appraisal
- Field Review Method
- Confidential Report
Modern Methods
- Assessment Center
- Appraisal by Results or Management by Objectives
- Human Asset Accounting
- 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.
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o
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o
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o
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o
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o
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o
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