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Performance Appraisal Appraisals Home » Performance Appraisal

Performance Appraisal Appraisals Home » Performance Appraisal

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Published by: swatipgdm on Mar 11, 2010
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Performance AppraisalAppraisals Home » Performance AppraisalPerformance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management
s interest in the progressof the employees.Objectives Of Performance appraisal:To review the performance of the employees over a given period of time.To judge the gap between the actual and the desired performance.To help the management in exercising organizational control.Helps to strengthen the relationship and communication between superior– subordinates and management – employees.To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.To provide feedback to the employees regarding their past performance.Provide information to assist in the other personal decisions in the organization.Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.To judge the effectiveness of the other human resource functions of theorganization such as recruitment, selection, training and development.To reduce the grievances of the employees.Basic Purposes / AIM of PA :
Effective performance appraisal systems contain two basic systems operating in conjunction: an evaluation system and a feedback system.The main aim of the evaluation system is to identify the performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable.The main aim of the feedback system is to inform the employee about the qualityof his or her performance. (However, the information flow is not exclusively oneway. The appraisers also receives feedback from the employee about job problems, etc.)One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employee and the organization.Employee ViewpointFrom the employee viewpoint, the purpose of performance appraisal is four-fold:(1) Tell me what you want me to do(2) Tell me how well I have done it(3) Help me improve my performance(4) Reward me for doing well.Organizational ViewpointFrom the organization
s viewpoint, one of the most important reasons for havinga system of performance appraisal is to establish and uphold the principle of accountability.For decades it has been known to researchers that one of the chief causes of organizational failure is "non-alignment of responsibility and accountability." Non-alignment occurs where employees are given responsibilities and duties, but arenot held accountable for the way in which those responsibilities and duties areperformed. What typically happens is that several individuals or work units appear to have overlapping roles.The overlap allows - indeed actively encourages - each individual or business unit to "pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is accountable for anything. In this event, the principle of accountability breaks down completely. Organizational failure is the only possible outcome.In cases where the non-alignment is not so severe, the organization may continueto function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned organization may run, but it will be sluggish, costly and unreliable. One of the principal aims of performance appraisal is to make people accountable. The objective is to align responsibility and accountability at every organizational level.
Techniques/Methods Of Performance Appraisal :The various methods and techniques used for Performance appraisal can be categorized as the following traditional and modern methods: 1. Critical incident methodThe critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughoutthe performance period2. Weighted checklistThis method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs3. Paired comparison analysisPaired comparison analysis is a good way of weighing up the relative importanceof options.A range of plausible options is listed. Each option is compared against each ofthe other options. The results are tallied and the option with the highest scoreis the preferred option.4. Graphic rating scalesThe Rating Scale is a form on which the manager simply checks off the employee’slevel of performance.This is the oldest and most widely method used for performance appraisal.5. Essay EvaluationThis method asked managers / supervisors to describe strengths and weaknesses ofan employee’s behavior. Essay evaluation is a non-quantitative techniqueThis method usually use with the graphic rating scale method.6. Behaviorally anchored rating scalesThis method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.It is a combination of the rating scale and critical incident techniques of employee performance evaluation.7. Performance ranking methodRanking is a performance appraisal method that is used to evaluate employee performance from best to worst.Manager will compare an employee to another employee, rather than comparing eachone to a standard measurement.8. Management By Objectives (MBO)MBO is a process in which managers / employees set objectives for the employee,periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it isto be accomplished (methods)9. 360 degree performance appraisal360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.10.Forced ranking (forced distribution)Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.11. Behavioral Observation ScalesBehavioral Observation Scales is frequency rating of critical incidents that worker has performed.

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