Performance Appraisal

PERFORMANCE APPRAISAL

Performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his potential for future development. It consists of all formal procedures used in working organization to evaluate personalities, contributions, and potentials of employees

Since organisation exist to achieve goals, the degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal.

PURPOSE

There are basically three purposes

If necessary, initiate the corrective action

1. Setting Performance Standards:-

-Criteria are specified with the help of job analysis. It should be clear, objective and in writing and should be discussed with supervisors.

-It performance cannot be measured, and then personal characteristics that contribute to employee performance must be determined. They include work quality, honesty, reliability, cooperation, team work, job knowledge, initiative, leadership, attendance, safety conscious, learning ability, sense of responsibiltyetc.

-These are to be indicated or appraisal forms.

-Who is to do the appraisal and how frequently appraisal is to be done should also be decided.

2. Communicating the standards:-

-Standards must be communicated to the employees so that they should know what is expected from them.

-Standards should also be conveyed to the evaluators.

-Standards should be revised and modified in the light of feedback obtained from employees and evaluators.

3. Measuring

It addresses areas that must be focused when selecting people for organization. These are:

1. Competence. How competent are employees in their work? Do they need additional training?

Performance evaluations by managers can help determine what talent is available. To what extent do HRM policies attract, keep and develop employees with skills and knowledge needed now and in the future?

2. Commitment. How committed are employees to their work and organization? Surveys can be conducted through interviews and questionnaires to find answers to this question.

3. Congruence. Is there agreement, between the basic philosophy and goals of the organization and its employees? Is there trust and common purpose between

Managesand employees? Incongruence can be detected in the frequency of strikes,conflicts between managers and subordinates, and grievances. A low level of congruence results in low levels of trust.

4. Cost effectiveness. Are HRM policies cost-effective in terms of wages? benefits, turnovers,absenteeism, strikes, and similar factors

Performance Appraisal System In