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Performance Appraisal

Performance Appraisal

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Published by: amn_thkr on Apr 28, 2011
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12/30/2011

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PERFORMANCE APPRAISALINTRODUCTION & OBJECTIVES
Performance appraisal is an objective assessment of an individual’s performanceagainstwell 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, thepopularity of the Total Quality Management (TQM) concepts advocated several years ago bymanagement experts like W. Edwards Deming. Basically, Deming argued that an employee’sperformance is more a function of things like training, communication, tools, and supervisionthan of his or her own motivation.Performance Management emphasis on the integrated nature of goal setting, appraisal, anddevelopment reflects this assumption. Second, it reflects the fact that a vast array of studiesthat traditional performance appraisal are often not just useless but counterproductive. Third,Performance management as a process also explicitly recognizes that in today’s globallycompetitive industrial environment, every employee’s efforts must focus like a laser onhelping the company to achieve its strategic goals. In that regard adopting an integrated;performance management approach to guiding, developing, and appraising employees alsoaids the employer’s continuous improvement efforts.
Continuous improvement
refers to a
 
management philosophy that requires employers to continuously set and relentlessly meetever-higher quality, cost, delivery, and availability goals.
OBJECTIVE OF PERFORMANCE APPRAISAL 
Data relating to performance assessment of employees are recorded, stored, andused forseveral purposes. The main purposes of employee assessment are:1. To effect promotion based on competence andperformance.2. To confirm the services of probationary employees upon their completing theprobationary period satisfactorily.3. To assess the training and development needs of employees.4. To decide upon a pay rise where (as in the unorganized sector) regular payscaleshave not been fixed.
5. To let the employees know where they stand insofar as their performance is concerned andto assist them with constructive criticism and guidance for the purpose of their development.6. To improve communication. Performance appraisal provides a format for dialogue betweenthe superior and the subordinate, and improves understanding of personal goals andconcerns. This can also have the effect of increasing the trust between the rater and theratee.
7. Finally, Performance appraisal can be used to determine whether HR programssuch as selection, training, and transfers have been effective or not.
Broadly, performance appraisal serves four objectives-(1) Developmental uses,(2) Administrative uses/decisions,(3) Organizational maintenance/ objectives, and(4) Documentation purposes.
 
TYPES OF PERFORMANCE APPRAISAL SYSTEM:Graphic Rating Scale Method
 
The Graphic Rating Scale is the simplest and still most popular technique for appraisingperformance. A Graphic Rating Scale lists traits (such as quality and reasonability) and arange of performance values (from unsatisfactory to outstanding) for each trait. Thesupervisor rates each subordinate by circling or checking the source that best describes hisor her performance for each trait. The assigned values for the traits are then totaled.
Alternation Ranking Method
Ranking employees for the best to worst on a trait ortraits is another option. Since, it is usually easier to distinguish between theworst and best employees, and Alternation
Ranking Method is most popular. First,list all subordinate to be rated, a then close out the names of any not known well enough torank. Then, on a form the employees who is highest on the characteristics being measuredand also the one who is the lowest. Then choose the next highest and the next lowest,alternating between highest and lowest until all employees have been ranked.
Paired Comparison Method
The Paired Comparison Method helps make the Ranking Method precise. For every trait(quantity of work, quality of work, and so on), you pair and compare every subordinate withevery other subordinate.Suppose you have five employees to rate. In the Paired Comparison Method, you make achart, of all possible pairs of employees for each trait. Then, for each trait, indicate (with a+or a-) who is the best employee of the pair. Next, add up the no. of +s for each employee.

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