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Performance Appraisal

The document discusses performance appraisal, which is defined as a systematic process of assessing an employee's performance and progress on a given job. It describes the process, importance, objectives, advantages, uses, and who conducts performance appraisals.

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25 views

Performance Appraisal

The document discusses performance appraisal, which is defined as a systematic process of assessing an employee's performance and progress on a given job. It describes the process, importance, objectives, advantages, uses, and who conducts performance appraisals.

Uploaded by

shambhavisandilya1203
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PERFORMANCE APPRAISAL

DEFINITION:
A performance appraisal is a systematic process of assessing the
performance and progress of an employee on a given job and his
potential for future development.
(if u want to add more content @ aditi)
Performance appraisal is an analysis of an employee’s recent successes
and failures, personal strengths and weakness, and his/her suitability for
promotion or further training.
It is also the judgement of an employee’s performance in a job based on
considerations other than productivity alone.
Performance appraisal is done periodically, but on a continuous basis. It
is a part of a larger performance management system and includes both
managerial and non-managerial employees in its scope.
(So,as the definition says it is a systematic process lets discuss the
process of performance appraisal first.)
PROCESS:
1. Establish performance standards
2. Communicate performance standards
3. Measure employee performance
4. Compare performance with set standards
5. Discuss appraisals with employees
6. Implement appraisal and review
IMPORTANCE:
 Most significant tool for an organization
 Highly useful for making decisions. ( decision of promotion &
retention of an employee)
 Definite aid to management in promoting fairness
1. Assessment of Employee Performance:
Performance appraisal helps supervisors to assess the work performance
of their subordinates. The strength, weaknesses and potentialities of
employees, level of performance are disclosed through performance
appraisal.
2. Improvement of Performance:
The performance of employees are continuously scanned and reviewed.
This creates a psychological pressure on employees to perform well, as
well as motivates the employees. Performance appraisal helps to
improve the performance of the employees.
3. Designing Training and Development Programme:
Performance appraisal helps in designing training and development
programme for the employees. Training and development programme
are designed considering the existing skill, knowledge, capability and
performance of the employees as disclosed by performance appraisal.
This enables to improve the performance of the work force. Performance
appraisal also helps to assess the effectiveness of training and
development programme by analysing employee performance before
and after training.
4. Determination of Pay:
Often the pay structure of employees is linked to performance of
employees and their productivity. Bonus and increment of salary is
determined on the basis of performance of employees.
5. Decision Regarding Promotion and Transfer:
Performance appraisal helps in decision making regarding promotion
and transfer. Performance appraisal on a continuous basis helps to
evaluate the improvement of employee performance, their skill,
knowledge, capability so that they can be allotted a new job.

WHY SHOULD WE APPRAISE PERFORMANCE:


 Central role in performance management process(need of
development, coaching and training of an employee)
 Promotion & retention decision of employees
 For correcting deficiencies(improving the employees performance
through various actions)
 Facilitates career planning(strength and weakness)
 Identify employee training & development needs
OBJECTIVES:
1. To provide employees feedback on their performance.
2. Identify employee training needs.
3. Document criteria used to allocate organizational rewards
4. A bais for decisions relating to salary increases, promotions,
disciplinary actions, bonuses, etc.
5. Provide the opportunity for organizational diagnosis and
development.
6. Facilitate communication between employee and employer.
7. To motivate employees through recognition and support.
8. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
9. To identify the strengths and weaknesses of employees to place
right men on right job.
10. To maintain and assess the potential in a person for growth
and development.
11. To provide a feedback to employees regarding their
performance and related status.
12. It serves as a basis for influencing working habits of the
employees.
13. To review and retain the promotional and other training
programmes.
ADVANTAGES:
Promotion: Performance Appraisal helps the supervisors to chalk out
the promotion programmes for efficient employees. In this regards,
inefficient workers can be dismissed or demoted in case.
Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible through
performance appraisal. Performance Appraisal tries to give worth to a
performance. Compensation packages which includes bonus, high salary
rates, extra benefits, allowances and pre-requisites are dependent on
performance appraisal. The criteria should be merit rather than seniority.
Employees Development: The systematic procedure of performance
appraisal helps the supervisors to frame training policies and
programmes. It helps to analyse strengths and weaknesses of employees
so that new jobs can be designed for efficient employees. It also helps in
framing future development programmes.
Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and
weaknesses of selection procedure. Future changes in selection methods
can be made in this regard.
Communication: For an organization, effective communication
between employees and employers is very important. Through
performance appraisal, communication can be sought for in the
following ways:
Through performance appraisal, the employers can understand and
accept skills of subordinates.
The subordinates can also understand and create a trust and confidence
in superiors.
It also helps in maintaining cordial and congenial labour management
relationship.
It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be
determined if the targets are achieved. This very well motivates a person
for better job and helps him to improve his performance in the future.

USES OF PERFORMANCE APPRAISAL:


ADMINISTRATIVE ACTION:
 Dismissal from work
 Disciplinary action(against employee)
 Compensation adjustment
 Promotion/demotion
 Transfers (can be negative or positive acc. to his/her performance)
DEVELOPMENT ACTION:
 Career progression
 Training opportunities
 Coaching
 Mentoring
 Identify strengths and weaknesses

WHO CONDUCT PERFORMANCE APPRAISAL:


 Supervisors rating their employees
 Employees rating their supervisors
 Team member rating each other
 Employees rating themselves
 Outside sources rating the employees working in an organization

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