MEANING AND PROCESS OF PERFORMANCE APPRAISAL

 

• PERFORMANCE APPRAISAL
• DR SHASHI AGGARWAL
• IMPORTANT QUESTIONS

1.       DIFFERENTIATE BETWEEN PERFORMANCE APPRAISAL AND POTENTIAL  APPRAISAL. EXPLAIN THE TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

2.       WHAT ARE THE DIFFERENT METHODS OF PERFORMANCE APPRAISAL

3.       EXPLAIN THE PROCESS OF PERFORMANCE APPRAISAL

 

•    MEANING OF PERFORMANCE APPRAISAL

1.       A PERFORMANCE APPRAISAL IS A PROCESS OF EVALUATING THE EMPLOYEE’S PERFORMANCE OF JOB IN TERMS OF ITS REQUIREMENTS.

2.       MERIT RATING IS ALSO TERMED AS PERFORMANCE APPRAISAL OR EMPLOYEE APPRAISAL

3.       PERFORMANCE APPRAISAL IS THE PROCESS OF MEASURING QUANTITATIVELY AND QUALITATIVELY AN EMPLOYEE’S PAST OR PRESENT PERFORMANCE AGAINST THE BACKGROUND OF HIS EXPECTED ROLE PERFORMANCE,THE BACKGROUND OF HIS  WORK ENVIRONMENT AND ABOUT FUTURE POTENTIAL FOR AN ORGANIZATION. DONE BY IMMEDIATE SUPERIOR.

•    ACCORDING T CUMINGS,” THE OVERALL OBJECTIVE OF PERFORMANCE APPRAISAL IS TO IMPROVE THE EFFICIENCY OF AN ENTERPRISE BY ATTEMPTING TO MOBILIZE THE BEST POSSIBLE EFFORTS FROM INDIVIDUALS EMPLOYED IN IT. SUCH APPRAISALS ACHIEVES FOUR OBJECTIVES INCLUDING THE SALARY REVIEW,THE DEVELOPMENT AND TRAINING OF INDIVIDUALS,PLANNING JOB ROTATION AND ASSISTANCE PROMOTIONS.

•    DEFINITION

DALE YODDER,” PERFORMANCE APPRAISAL INCLUDES ALL FORMAL PROCEDURE USED TO EVALUATE PERSONALITIES AND CONTRIBUTIONS AND POTENTIALS OF GROUP MEMBERS IN WORKING ORGANIZATION. IT IS CONTINUOUS PROCESS TO SECURE INFORMATION NECESSARY FOR MAKING CORRECT AND OBJECTIVE DECISION MAKING.

EDWARD FLIPPO .” PERFORMANCE APPRAISAL IS THE SYSTEMATIC, PERIODIC AND AN IMPARTIAL RATING OF AN EMPLOYEE’S EXCELLENCE IN MATTERS PERTAINING TO HIS PRESENT JOB AND HIS POTENTIAL FOR BETTER JOB

•    PERFORMANCE APPRAISAL

1.       PERFORMANCE APPRAISAL IS BROADER TERM THAN MERIT RATING

2.       MERIT RATING  THE FOCUS IS ON JUDGING THE CALIBER OF  AN EMPLOYEE SO AS TO DECIDE SALARY,INCREMENT ETC

3.       PERFORMANCE APPRAISAL FOCUSES ON PERFORMANCE AND FUTURE POTENTIAL OF THE EMPLOYEE

4.       MERIT RATING MEASURES  WHAT THE PERSON IS ( TRAITS) AND PERFORMANCE APPRAISAL MEASURE WHAT THE PERSON DOES

•    FEATURES

1.       SYSTEMATIC PROCESS CONSISTING OF NUMBER OF STEPS TO FOLLOWED FOR EVALUATING AN EMPLOYEE'S STRENGTH AND WEAKNESSES

2.       SYSTEMATIC OBJECTIVE DESCRIPTION OF AN EMPLOYEE’S STRENGTH AND WEAKNESS IN TERMS OF THE JOB

3.       ONGOING AND CONTINUOUS PROCESS

4.       SEEKS TO SECURE INFORMATION NECESSARY FOR MAKING CORRECT  DECISIONS

5.       MAY BE INFORMAL/FORMAL

•    OBJECTIVES

•    WORK RELATED OBJECTIVES :

a)       TO ASSESS THE WORK OF EMPLOYEE IN RELATION TO JOB REQUIREMENTS

b)       TO IMPROVE EFFICIENCY

c)        TO HELP MANAGEMENT IN FIXING EMPLOYEE ACCORDING TO THEIR CAPACITY,INTEREST ,APTITUDE AND QUALIFICATION

d)       TO CARRY OUT JOB EVALUATION

 

•    CAREER RELATED OBJECTIVE

a)       TO ASSESS THE STRONG AND WEAK POINTS

b)       TO DETERMINE THE CAREER POTENTIAL

c)        TO PLAN PROMOTIONS,TRANSFER,LAYOFFS ETC OF THE EMPLOYEES

d)       TO PLAN CAREER GOALS

 

•    COMMUNICATION

a)       TO PROVIDE FEEDBACK TO EMPLOYEES

b)       TO CLEARLY ESTABLISH GOALS

c)        TO PROVIDE COACHING,COUNSELLING,CAREER PLANNING AND MOTIVATION TO EMPLOYEES

d)       TO DEVELOP POSITIVE SUPERIOR AND SUBORDINATE RELATIONS

 

 

 

•    ORGANIZATIONAL OBJECTIVES

1.       TO SERVE AS BASIS FOR PROMOTION OR DEMOTION

2.       TO SERVE AS BASIS FOR WAGE AND SALARY ADMINISTRATION

3.       BASIS FOR TRAINING AND DEVELOPMENT

4.       BASIS FOR TRANSFER OR TERMINATION

•    WHAT SHOULD BE RATED

1.       QUALITY

2.       QUANTITY

3.       TIMELINESS

4.       COST EFFECTIVENESS

5.       NEED FOR SUPERVISION

6.       INTERPERSONAL IMPACT

7.       TRAINING

•    BENEFITS

1.       HELPS THE PLACEMENT OF THE EMPLOYEES ON THE JOB FOR WHICH THEY ARE BEST SUITES

2.       SYSTEMATICALLY AND PERIODICALLY EVALUATION OF THE EMPLOYEE

3.       RESULTS OF THE PERFORMANCE APPRAISAL MAY BE USED FOR BY THE SUPERVISORS IN CONSTRUCTIVELY GUIDING THE EMPLOYEES IN EFFICIENT PERFORMANCE OF THEIR JOBS

4.       OBJECTIVE BASIS FOR DISCUSSING SALARY INCREASE AND SPECIAL INCREMENTS

5.       CAN BE USED FOR TRANSFER AND PROMOTIONS

6.       CAN BE USED TO ANALYSE THE TRAINING NEEDS AND DEVELOPMENT

7.       FACILITATES HUMAN RESOURCE PLANNING,CAREER PLANNING AND SUCCESSION PLANNING

8.       DEVELOP CONFIDENCE EMPLOYEES

•    LIMITATION

1. HALO ERROR : TENDENCY TO EVALUATE A PERSON ON THE BASIS OF ONE TRAIT OF CHARACTERISTICS. THE APPRAISER JUDGES THE PERSON ON THE STRENGTH OF SPECIFIC TRAIT AND DOES NOT BASE HIS INFERENCE ON HIS OVERALL PERFORMANCE. AN INDIVIDUAL MAY BE CONSISTENTLY RATED HIGH,AVERAGE OR LOW DEPENDING ON VARIOUS TRAITS DEPENDING UPON THE RATER’S OVERALL JUDGEMENT OF THE PERSON.
2. CENTRAL TENDENCY : WHEN THE RATER IS NOT SURE ABOUT THE PERFORMANCE OF PERSON,MAY NOT WELL CONVERSANT WITH HIS WORK OR MAY HAVE LESS TIME AT HIS DISPOSAL, RATE THEM AVERAGE
3. LIMITATION
4. SIMILARITY ERROR : ARISES FROM THE MENTAL MAKE UP OF AN EVALUATOR. THE EVALUATOR USES HIS OWN TRAITS AS A BASIS FOR ASSESSING THE EMPLOYEES
5. MISCELLANEOUS BIAS : ON THE BASIS OF GENDER,RACE,RELIGION,POSITION
6. FAULTY ASSUMPTIONS :

1.       SUPERIOR WILL MAKE IMPARTIAL

2.       APPRAISAL SYSTEM ONCE IMPLEMENTED PROPERLY WILL BE UTILIZED IN EVERY PROJECT

3.       SUPERIOR SOMETIMES FEEL THAT THEIR PERSONAL JUDGMENT OF THE SUBORDINATE IS BETTER THAN THAT OF APPRAISAL SYSTEM

4.       EMPLOYEES WANT TO KNOW ABOUT THEIR APPRAISAL

§ PSYCHOLOGICAL BLOCKS :

1.       WILL DEPEND UPON THE SKILLS OF THE USERS

2.       WILL DEPEND UPON THE PSYCHOLOGICAL CHARACTERISTICS OF MANAGERS

3.       MANY PSYCHOLOGICAL BLOCKS

4.       MANAGER CONSIDER APPRAISAL EXTRA BURDEN

5.       DISLIKE TO COMMUNICATE UNFAVORABLE REPORT

6.       THEY TRY TO TREAT SUBORDINATES FAILURE AS THEIR OWN

•    THE EVALUATION PROCESS

•    PROCESS

1. ESTABLISHING STANDARDS :
1. RATING AGAINST STANDARDS
2. STANDARD MAY BE IN QUANTITY AND QUALITY OF PRODUCTION IN CASE OF WORKER,PERSONALITY TRAITS LIKE LEADERSHIP,INITIATIVES,IMAGINATION

2.       COMMUNICATING STANDARDS TO EMPLOYEES

3.       MEASURING ACTUAL PERFORMANCE

4.       COMPARING

5.       DISCUSSING REPORTS WITH EMPLOYEES : PERIODIC DISCUSSION

6.       TAKING CORRECTIVE INFORMATION

 

•    METHODS

1.       TRADITIONAL METHODS

2.       MODERN METHODS

•    TRADITIONAL METHODS

1.       STRAIGHT RANKING METHOD

2.       MAN TO MAN COMPARISON METHOD

3.       GRADING

4.       GRAPHIC RATING SCALES

5.       FORCED CHOICE DESCRIPTION METHODS

6.       FORCED DISTRIBUTION METHODS

7.       CHECK LISTS

8.       FREE FROM ESSAY METHODS

9.       CRITICAL INCIDENTS METHOD

 

•    MODERN METHODS

1.       ASSESSMENT CENTER

2.       MGMT BY OBJECTIVES

3.       HUMAN RESOURCE ACCOUNTING

4.       BEHAVIORALLY ANCHORED RATING SCALES