INTRODUCTION & OBJECTIVES
Performance appraisal is an objective assessment of an individual’s performance againstwell defined benchmarks.According to Garry Desseler, “A process that consolidates goal setting, performanceappraisal and development into single, common system, the aim of which is to ensure thatthe employee’s performance is supporting the company’s strategic aims.”
WHY PERFORMANCE MANAGEMENT?
The increasing use of Performance management reflects several things. It reflects, first,the popularity of the Total Quality Management (TQM) concepts advocated several yearsago by management experts like W. Edwards Deming. Basically, Deming argued that anemployee’s performance is more a function of things like training, communication, tools,and supervision than of his or her own motivation.Performance Management emphasis on the integrated nature of goal setting, appraisal,and development reflects this assumption. Second, it reflects the fact that a vast array of studies that traditional performance appraisal are often not just useless butcounterproductive. Third, Performance management as a process also explicitlyrecognizes that in today’s globally competitive industrial environment, every employee’sefforts must focus like a laser on helping the company to achieve its strategic goals. Inthat regard adopting an integrated; performance management approach to guiding,developing, and appraising employees also aids the employer’s continuous improvementefforts.
refers to a management philosophy that requiresemployers to continuously set and relentlessly meet ever-higher quality, cost, delivery,and availability goals.
OBJECTIVE OF PERFORMANCE APPRAISAL
Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are:1