Performance Appraisal is a crucial activity for organizations that are looking for growth andprofit maximization in this ever-increasing competitive environment. This project report is areview based on theory as well as research and experience.The research report starts with the background and explains it’s importance in thePerformance Management System and also it’s changed scenario in
.The essential components of an effective performance appraisal system consist of understanding it’s Foundations and the essential steps that lay the foundation. It is alsonecessary to recognize the Objectives and Benefits of this system. For benefit realization itis necessary to Identify Key Result Areas (KRAs) i.e. Goal Setting and monitor resultingPerformance so that a meaningful relationship between performance, reward anddevelopment of required skills, through counseling – if required, can be established. Finallylot of brainstorming is required to be done to devise a sound appraisal system by evaluatingavailable techniques and implementation processes. One must remember that performanceAppraisal is an inexact, human process and it is quite a challenge to actually implement itsuccessfully. All these aspects form subject matter for
Chapters 2 through 8.
Performance appraisal system has gone through a sea change over a period of time. In thebeginning the process was non-transparent and the employee was kept in dark about hisperformance. No systematic exercise was done and the entire process was arbitrary. Theseearlier performance appraisal methods are discussed in
The current processes of performance appraisal involve self-appraisal by the employee too.
Thus the system has gone through the phase of non-transparency to transparency.
Inthe transparent system of appraisals appraisee is taken into confidence and the wholeprocess is interactive. Review process with employees is designed in such a way thatemployees become aware of what is expected from them, receive timely feedback andrecognition for their achievements. Some of these relatively transparent methods areAppraisal Discussion-Dialogue Method of Appraisal, Competency Based Appraisal System,Potential Appraisal, Performance and Development Planning. While new frontiers toperformance appraisal include Management by Objectives, 360º Feedback and BalancedScorecard. These methods are explained in depth in
Chapters 10 and 11 respectively.
Inthis technology driven era appraisals too can be done electronically
systemwith its salient features, benefits and process has been covered in
Finally, the report is rounded up by presenting a case study on one of the top Indianpharmaceutical companies
Chapter 13 and concluded in Chapter 14.
The report is made useful for readers by incorporating Suggestions and Recommendationsfor all concerned on how to make a grand success of appraisal system followed by their organizations.Few blank formats of different appraisal methods and processes have been included as
Annexures (Annexure I to IX)
in the report to show how today’s successful organizationsare trying to assess and evaluate their employee performance.
In conclusion, this project report will enable one to understand the concept of Performance Appraisal; it’s evolution from non-transparent to a transparent system.The report will also help to understand benefits and drawbacks of past and presentappraisal systems. Most importantly, the report will assist the reader in implementingappraisal system as effective management tool for realizing organization’s as well asindividual’s goals and objectives.