- PERFORMANCEAPPRAISAL
- GREIVANCE
- DISCIPLINE
- RECURITMENT
- SELECTION
- CAREER PLANNING AND DEVELOPMENT
- EMPLOYEE TRAINING
- COLLECTIVE BARGAINING
- INDUSTRIAL CONFLICTS
- PROMOTION, TRANSFER, DEMOTION
- PARTICIPATIVE MANAGEMENT
PERFORMANCE APPRAISAL
MEANING OF PERFORMANCE APPRAISAL
performance appraisal may be understood as the assessment of individual’s performance in a systematic way, the performance being measured against factors such as job knowledge, quality and quantity output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the like. Assessment should be confined to past performance alone. Potentials of the employee for future performance must also be assessed.
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspect of job performance. Performances here refer to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of result and not efforts.
A formal definition of performance appraisal is “it is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.”
FEATURES OF PERFORMANCE APPRAISAL
Performance appraisal is the systematic description of an employee’s job relevant strengths and weaknesses.
The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement.
Appraisals are arranged periodically according to a definite plan.
Performance appraisal is not job evaluation. It refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and there for, what range of pay should be assigned to the job.
Performance appraisal is a continuous process in every large scale organization.
PROCESS OF PERFORMANCE APPRAISAL
Performance appraisal is planned, developed and implemented through a series of steps:
1) Establish Performance Standards.
Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. In order to be useful, standards should relate to the desired results of each job. Appraisals must have a clear- cut criteria. Performance standards must be both to the appraiser and the appraise. The performance standards of goals must be developed after a thorough analysis of the job. Goals must be written down. They must be measurable within certain time and cost considerations.
2)Communicate the Standards.
Performance appraisal involves attract two parties; the appraiser who does the appraisal and the appraise whose performance is being evaluated. Both are expected to do certain things. The appraiser should prepare job descriptions clearly, help appraise set his goals and targets; analysis results objectively; offer coaching and guidance to appraise whenever required and reward good results. The appraiser should be very clear about what he is doing and why he is doing. For this purpose, the performance standards must be communicated to appraise and their reactions are noted initially. These standards must be revised or modified as and when required.
3) Measure Actual Performance.
After the performance standards are set and accepted, the next step is to measure actual performance. This requires the use of dependable performance measures, the ratings used to evaluate performance. Performance measures in order to be helpful must be easy to use, reliable and report on the critical behaviors that determine performance. Generally, managers regarding how to measure actual performance use four common sources of information: personal observation, statistical reports, oral reports and written reports.
4) Compare Actual Performance with Standards and Discuss the Appraisal.
Actual performance may be better than expected and sometimes it may even go off the track. The assessment of another person's contribution and ability is not an easy task. It has serious emotional overtones as it affects the self-esteem of the appraise. Any appraisal asked on subjective criteria is likely to be questioned by the appraisers and leave him quite dejected and unhappy when the appraisal turns out to be negative.
5) Taking Corrective Action, if Necessary.
Corrective action is of two types: The one, which puts out the fires immediately and the other one, which strikes at he root of the problems permanently. Immediate action sets things right and get things back or track, whereas the basic corrective action gets to the source of deviations and seems to adjust the difference permanently. Basic corrective step seek to find out how and why performance deviate.
METHODS OF PERFORMANCE APPRAISAL:
Methods of Performance Appraisal
A) Traditional Methods B) Modern Methods
Confidential report 1. Human resource accounting
Ranking2. management by objective
Graphical rating scale 3. Assessment centre
Checklists4. BARS( Behaviorally
Forced distribution anchored rating scale )
Critical incidents
Essay evaluation
Group appraisals
Traditional methods:
Confidential report method
It is mostly used in government organizations. It is a descriptive report generally prepared at the end of the year, by the employee’s immediate superior. The report highlights the strengths, weaknesses, major mistakes, merits, good work done etc. of the subordinate. The impression of the superior about the superior is merely recorded here. It does not offer any feedback to appraise. It is a narrative method of performance appraisal since the report is not made public and hence no freedom is available, the subjective analysis of the superior is likely to be hotly contested.
Ranking method
This is relatively easy method of performance evaluation. In it, the ranking of an employee in a work group is against that of another employee. The relative position of each employee is tested in terms of his or her numerical rank, for example, when there are five employees (A,B,C,D,E) to be [d1]compared, then A’s performance is compared with that of B’s and decision is arrived at as to whose is the better or worst. Next, B is also compares with all others. Since A is already compared with B, this time B is to be compared with only C, D, and E In this evaluation is asked to rate the employees from highest to lowest on some overall criterion. It is easier to rank the best and the worst employee, it is very difficult to rank the average employees.
Graphical rating scale
It is the oldest and the most commonly used method of performance in this, a printed form is used to evaluate the performance of an employee. Four to twelve factors are selected, depending upon the category to which the employee belongs. Some of these factors are quantity of out put, quality of out put, initiative, integrity, dependability etc. these factors and their degrees are marked on a graph paper provided in the form. The rater has merely to check on the scale where he thinks the employee belongs.
Checklists and weighted checklists
The checklist is a simple rating technique in which the supervisor is given a list of statement or world and ask to check statement representing the characteristic and performance of each employee a checklist represents a set of objective statement about the employee and his behavior. A more recent variation of the checklist is weighted list. Under this the value of each question may be weighted more heavily than others.
The following are sample questions in the checklist:
- Is the employee is really interested in the task assigned? Yes/ No
- Is he respected of his colleagues? Yes/ No
- Does he follow instructions properly? Yes/ No
- Does he give respect to his superiors? Yes/ No
- Does he make mistakes frequently? Yes/ No
A rating score from the checklist helps the manager in evaluation of the performance of the employee.
Forced distribution method
It was developed to eliminate the bias and the preponderance of high ratings that might occur in some organizations. Its primary purpose is the correct tendency of the rates to give consistently high and low ratings to all employees. This method makes those of several sets of pair phases, two of which are positive and two of them are negative and the rates is asked to indicate which of the four phrase is the most or least descriptive of a particular employee. Actually the statement items are grounded in such a way that the rater cannot which statement applies to the most effective employee. The favorable qualities earn a plus credit and the unfavorable ones earn the severest. In this the overall objectivity is increased in the employee’s performance because the rater does not know how high or low he is evaluating the individual, as he has no access to the storing key.
Critical incident method
The manager prepares test of statements of every effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding poor behavior of the employees. The manager prepares records of the critical incidents of the worker’s behavior. At the end of the rating period, the recorded critical incidents are used in the evaluation of the workers’ performance.
Essay Appraisal
Under this method the rater is asked to express the strong as well as the weak points of the employee’s behavior. This technique is normally used with a combination of the graphical rating scale because the rater an elaborately present the scale by sustaining an explanation for his rating. In it, the rater considers the following factors:
Job knowledge and potential of the employee.
Employees understanding about the company’s programmes, policies, objective, etc.
The employees general planning, organizing and controlling ability.
The employee’s relation with the co-workers and superiors.
The attitude and perceptions of the worker, in general.
Group appraisal
In this method an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, other supervisors who have close contact with employee’s work, manager or head of department or consultant. The head of department or manager may be the chairman of the group and the supervisor may act as the coordinate for the group activities. The immediate supervisor enlighten other members about the job characteristics, demand, standards or performance etc. then the group appraise the performance of the employee, compares the performance with the standards, finds out the deviation, discusses the reasons, therefore suggests ways for improvement of performance, prepares an action plan, studies the need for change in the job analysis and standards and recommends changes, if necessary. This method eliminates “personal bias” to a large extent, as performance is evaluated by multiple rates. However, it is very time consuming process.
B) Modern Methods:
Human resource accounting
HRA is a sophisticated way to measure in financial terms the effectiveness of the personal manager activities and the use of people in an organization. It is process of accounting people as an organization resource. It tries to place a value on the organizational human resources as assets and not as expenses. This method shows the investment the organization makes in the people and how the value of these people change over a time. The acquisition of employee is compared with the replacement cost from time to time. In brief, in this method the employees’ performance is evaluated in terms of costs and contributions of employees.
Management by objectives
It is the modern method of evaluating the performance of personnel. Managers have become increasingly aware that the traditional performance evaluation systems are characterized by facing goals. The concept of MBO is actually the outcome the pioneering work of Drucker, Mcgreger and Odioine in management science. MBO can be described as the process whereby the superior and subordinate manager of an organization jointly identify its common goals, each individual’s areas of operations, responsibility in terms of results expected of him and use these measures as a guide for operating the unit and assessing the contributions of each of its members. MBO thus represents more than an evaluation process.
The MBO can be described in four steps:
The first step is to establish the goals each subordinate is to attain. The goals typically refer to the desired outcome to be achieved. The goals can be then used to evaluate the employee performance
The second step involves setting of the performance standard fro the subordinates in a previously arranged time period.
In the third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluator explores the reasons or the goals that were not met and the goals that were exceeded. This step helps to determine the training needs. It also alerts the superior of the conditions that may affect but over which the subordinate has no control.
The final step involves establishing new goals and, possibly, new strategies for goals that previously not attained. At this point, subordinate and superior involvement in the goal setting may change. Subordinates who successively reach the established goals may be allowed to participate more in the goal setting process the next time. The process is repeated.
Assessment center
In this approach individuals from various departments are brought together to spend two or three days working on an individual or a group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order to merit since assessment centers are basically meant for evaluating the potential of candidates to be considered for promotion, training on development, they offer an excellent means for conducting evaluation process in an objective way. All assesses get an equal opportunity to show their talents and capabilities based on merit.
Behaviorally anchored rating scale
This method is also known as behavioral expectation scale. This method represent he latest innovation in the performance appraisal. It is the combination of the rating scale and critical incident techniques of employee performance evaluation. The critical incidents serve as the anchor statement on a scale and the rating form usually contains six to eight specifically defined performance dimensions.
360° PERFORMANCE APPRAISAL
The appraisal may be any person who has thorough knowledge about the job contents, contents to be appraised, standards of contents and who observes the employee's by performing a job. The appraisal should be capable of determining what is more important and what is relatively less important. He should prepare reports and made judgments without bias. Typical appraisals are supervisors, peers. Subordinates, employees themselves, user of service and consultants. Performance Appraisal by all these parties is called 360° Performance Appraisal.
Supervisors
Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or manager. General practice is that immediate superior appraises the performance, which in turn is reviewed by the departmental head/ managers. This is because superiors are responsible free managing their subordinates and they have the opportunity to observe, direct and control the subordinate continuously. Moreover, they are accountable for the successful performance of their subordinates. Sometimes other supervisors, who have close contact with employee work also appraise with a view to provide additional information.
Peers
Peer appraisal may be reliable of the workgroup is stable over a reasonably long period of time and performs tasks that require interaction.
Subordinates
In developed countries, the concept of change superiors rated by subordinates in being used in most organizations. Such a method can be useful provided the relationships between superiors and subordinates art cordial. Subordinate's ratings in such cases can be quite useful in identifying competent superiors.
Self-Appraisal
If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. Also, since employee development means self-development, employees who appraise their own performance may become highly motivated.
Users of Services/Customers
The customers on users of services can, better judge employee performance in service organizations relating to behaviors, promptness, speed in doing the job and accuracy. Example, students better judge a teacher’s performance.
Consultants
Sometimes consultants may be engaged for appraisal when employees or employers do not trust the supervisory appraisal and management does not trust the self-appraisal and the appraisal done by subordinates. In such situation, the consultants are trained and they observe the employee at work for sufficiently long periods for the purpose of appraisal.
When to appraise?
Informal appraisals are conducted whenever the supervisor or personnel manager feel it necessary. However, systematic appraisals are conducted on a regular basis; say for example, every six month or annually.
PURPOSES OF PERFORMANCE APPRAISAL
To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development thought training, self and management development programmes.
To help the superior to have a proper understanding about their subordinates.
To guide the job changes with help to continuous ranking.
To facilitate fair and equitable compensation based on performance.
To provide information for making decision regarding lay off, retrenchment etc.
REQUIREMENTS OF A GOOD APPRAISAL SYSTEM:
It must be easily understandable:
If the system is too much complex or to time consuming, it may be anchored to the ground by its own dead weight of complicated forms which nobody but the experts understand.
It musty has support of all line people who administer it:
If the line people think that there role is not very important then they will not consider the system seriously. Similarly, if the people find that the system is too theoretical, too ambitious, or that has been foisted on them by the ivory-tower staff consultants who have no comprehension of the demand then they will recent it.